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AT&T, Feds Neglect Low-Price Mandate Designed to Help Schools

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At the dawn of the Internet era, Congress set out to avert a digital divide between rich and poor students. In a landmark bill, lawmakers required the nation's phone companies to provide bargain voice and data rates to schools and to subsidize the cost of equipment and services, with the biggest subsidies going to the schools with the most disadvantaged children.

More than a decade later, as schools struggle for funding amid widespread budget cuts, there is growing evidence that the program's crucial low-price requirement has been widely neglected by federal regulators and at least one telecom giant.

A decade after the program started, AT&T was still not training its employees about the mandatory low rates, which are supposed to be set at the lowest price offered to comparable customers. Lawsuits and other legal actions in Indiana, Wisconsin, Michigan and New York have turned...

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