AT&T pays out $8.2 million settlement over school E-Rate program

"Settlement" and "needy schools" aren't two things that most companies would like to see in a press release, but that's exactly what AT&T is dealing with at the moment after it has paid out $8.2 million to settle a dispute involving the E-Rate program, which uses funds collected from phone customers to pay for hardware and connectivity service fees for schools and libraries. According to the Department of Justice, AT&T (or, more specifically, AT&T Technical Services Corp.) allegedly not only engaged in non-competitive bidding practices for E-Rate contracts, but claimed and received E-rate funds for goods and services that weren't eligible for the program, and over-billed the E-Rate program for some of the services it provided. This resolution is also apparently specifically a result of a federal investigation into fraud and anti-competitive conduct in the E-Rate program in Indiana which, it seems, is still ongoing.

[RupanIII Posted Feb 16th 2009 5:10PM]

Yes, ATT has to give up all of the money they made in the last second, wow, horrible, put them on the respirator, their done.

[(Unverified) Posted Feb 16th 2009 4:40PM]

Nice one, AT&T.

[(Unverified) Posted Feb 16th 2009 4:46PM]

I don't know all of the facts surrounding this issue, but it really does make AT&T look bad. I wonder if these collections from customers were voluntary... or were they one of the many "fees" that get stuck on phone bills.

[(Unverified) Posted Feb 16th 2009 4:55PM]

@ suicycle

It's built in to the bill. It's another wonderful "FEE" that everyone gets to pay to help children get better technology. Or, so they say :)

[(Unverified) Posted Feb 16th 2009 6:00PM]

Just to note, they aren't in trouble for collecting the fee from customers, they are in trouble for billing the government program too much for services rendered.

[(Unverified) Posted Feb 16th 2009 6:15PM]

remember, AT&T's symbol is the globe....should give a hint at their intentions.

[Brando Posted Feb 16th 2009 4:49PM]

So that's why my service sucks...

[Murkurie Posted Feb 16th 2009 4:54PM]

that's why I'm never leaving verizon, things like that, and there terrible service

[SBA1226 Posted Feb 16th 2009 5:14PM]

Payed out? Really?

[DrivingManiac Posted Feb 16th 2009 7:07PM]

Donald probably graduated from College with a degree in Journalism, give him a break.

[(Unverified) Posted Feb 16th 2009 5:26PM]

The fee that is on the bill is the Universal Service Charge. The E-rate program works by giving certain schools a discount on technology. The discount is typically 90% off. So a $10,000.00 server will run the school $1,000.00. There are stipulations to what can be purchased and those items must remain in that school for a specific period of time, or the school will face penalties. In my state the schools that are able to receive E-Rate funding correlates to the number of students that are on a free or reduced lunch meal plan. These are most commonly inner-city schools or rural schools whose parents who make little money.

[(Unverified) Posted Feb 16th 2009 6:45PM]

I should sue them for all the rebates they never send me.

[(Unverified) Posted Feb 16th 2009 8:35PM]

put a search in google key word ATT donates see what you come up with You really think ATT is going to steal 8 million from kids its chicken feed folks.
Some flunky screwed up and is surely jobless today.

AT&T- News RoomAT&T Donates $1 Million to National Infantry Museum. Donation Continues Company's Long-Standing Commitment to Supporting Military Personnel and Their ...
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25037 - 22k - Cached - Similar pages
AT&T donates $20 million to Texas Tech University | News for ...Nov 12, 2008 ... For AT&T, the donation to Texas Tech is just the latest of many gifts ... AT&T donated $164 million last year to support "programs that ...
www.dallasnews.com/sharedcontent/dws/bus/stories/111208dnbusattdonation.28c03c3.html - 129k - Cached - Similar pages
denverpost.com : AT&T donates $500000 to aid Denver kidsBusiness : AT&T donates $500000 to aid Denver kids.
m.denverpost.com/denverpost/db_10778/contentdetail.htm;jsessionid=B6666788E2E6793D454B9EA300A8C525?...2 - 10k - Cached - Similar pages
AT&T donates 20000 prepaid phone cards for military personnel ...AT&T donates 20000 prepaid phone cards for military personnel. ... find Telecomworldwire articles. TELECOMWORLDWIRE-7 November 2007-AT&T donates 20000 ...
www.highbeam.com/doc/1G1-170885536.html - 58k - Cached - Similar pages
AT&T Donates an Additional 35000 Prepaid Phone Cards to the USO ...Dec 17, 2003 ... WASHINGTON, Dec. 17 /PRNewswire/ -- AT&T today announced that, in the spirit of the holiday season, it is donating an additional 35000 ...
www.redorbit.com/news/technology/19272/att_donates_an_additional_35000_prepaid_phone_cards_to.../index.html - 32k - Cached - Similar pages
AT&T Donates $3 Million to BSA’s 100th Anniversary Celebration ...Aug 5, 2008 ... The Boy Scouts of America announced today that AT&T has donated $3 million to kick off nationwide support for the youth organization’s 100th ...
www.scoutingnews.org/2008/08/05/att-donates-3-million-to-bsas-100th-anniversary-celebration/ - 38k - Cached - Similar pages
AT&T donates $500000 to aid Denver kids - Article Comments - View ...Post your comments on the Denver Post article, AT&T donates $500000 to aid Denver kids (click that link to go back and read the article).
neighbors.denverpost.com/viewtopic.php?p=667102 - 9 hours ago - Similar pages
AT&T donates $20 million to Texas Tech University in honor of ...Nov 12, 2008 ... insurancesitesfind » Blog Archive » AT&T donates $20 million to Texas Tech University in honor of … on Wed, 12th Nov 2008 7:54 am ...
ceoworld.biz/ceo/2008/11/12/att-donates-20-million-to-texas-tech-university-in-honor-of-edward-e-whitacre-jr/ - 56k - Cached - Similar pages

[(Unverified) Posted Feb 16th 2009 8:40PM]

I worked for a corporation who had an E-Rate contract. It was one of my first jobs in tech. I would wire an entire school and install sweet dual-processor CAD workstations and video equipment in the worst schools in Detroit. We also had full Cisco labs to get the kids started in networking so they would have a future. I tried to preach to the students as much as I could telling them that this could be their ticket out of the ghetto because most people in information technology are intelligent enough to look beyond the color of their skin.

2 weeks later I went back to replace a bad hard disk, and everything I had setup was completely destroyed. Total waste of time and money.

[(Unverified) Posted Feb 16th 2009 11:28PM]

This happened a number of years ago - this is pre-SBC merger AT&T.

[(Unverified) Posted Feb 16th 2009 11:10PM]

I work for at&t and I must admit they do a lot for charity programs and they try to help anyone that they can. I actively promote phones for military personnel. They donated thousands of phones during last years hurricane season and they donated phones during the fires out in California. We do fundraisers and other programs at work for charity as well. Not to mention the millions of dollars they donate towards programs and towards customers. I have personally helped out custolmers suffering in the current economy situation. Don't knock them for a mistake, I've seen worse from other companies.