Dive Brief:

• The Federal Communications Commission ruled this week AT&T overcharged schools in Florida’s Orange and Dixie counties for basic telephone services in violation of the federal E-Rate program.
• Ars Technica reports the FCC ruling — along party lines by a Democratic majority — accuses AT&T of ignoring a rule that telecommunications companies must give schools the lowest available price, instead charging districts more if they did not negotiate for lower prices through a state program.
• AT&T argues it acted in accordance with Florida law and plans to fight the FCC ruling, which came with a demand to return $63,760 that the government says it improperly collected and pay a $106,425 fine.

Dive Insight:

The federal E-Rate program has provided schools and libraries across the country with billions of dollars in funding for internet services, network upgrades, and wireless network expansion. The program is funded by a surcharge on phone bills for everyone in the country. Schools and libraries left more than $245 million on the table in 2014, however, according to federal records, a fact that should spur districts to apply for more money in the next application cycle.

Some districts have been slapped with fines by the FCC in recent years. The New York City Department of Education was asked to pay $3 million in December to settle a conflict over bidding rules. And Cleveland was accused of fraud after it failed to file for $8.5 million in pre-approved E-rate funds.