On February 21, 2025, the United States Supreme Court ruled unanimously in Wisconsin Bell, Inc. v. United States Ex rel. Heath that telecommunications companies participating in the federal E-Rate program, which is run by the Federal Communications Commission (FCC) and supports school and library wireless connectivity, could be sued for excess payouts under the federal False Claims Act because E-Rate funds are provided, in part, through the US Treasury.
The “E-Rate” (short for Education-Rate) program, established under the Telecommunications Act of 1996, subsidizes internet and other telecom services for schools and libraries across the United States. To finance the subsidies, Congress required private telecommunications companies to pay into a funding pool (the Fund) administered by another private company, the Universal Service Administrative Company (the USAC).
The USAC collects and distributes the resulting funds to beneficiaries in accordance with regulations promulgated by the FCC. Those regulations impose upon carriers a rule called the “lowest corresponding price” rule, which prohibits carriers from charging schools and libraries more than what they would charge a “similarly situated” non-residential customer. Once an appropriate charge is set, a school can obtain its subsidy by paying the carrier a discounted price and requiring the carrier to seek the remainder from the Fund, or by paying the carrier’s full freight and then applying for...
Business The Managing Director of PWAN Plus Business Concerns Ltd, Prof. Julius Oyedemi has refuted allegations made by social media influencer, Scott Iguma, over the ownership and allocation of la...