FCC Votes 4-1 to Cancel AT&T E-rate NAL

The FCC voted 4-1 to cancel a 2016 proposal to fine AT&T $106,425 for E-rate violations because the notice of apparent liability was issued after the one year statute of limitations on the violations, said an order in Wednesday’s Daily Digest (see 1608260037). The original NAL argued AT&T’s failure to charge two Florida school districts the lowest corresponding price was a continuing violation of the rules. Commissioner Jessica Rosenworcel dissented, saying she respected the procedural argument but believes there were merits to the previous FCC’s approach. The 2016 FCC’s stance that some violations should be treated as continuing would lead to more accountability for USF carriers, she said. She also said the date of violations should be pegged to USF disbursements. Commissioner Geoffrey Starks voted “concur” but raised similar concerns: “The Commission should consider how we can best promote timely detection of violations to avoid future problems with the statute of limitations.” Commissioner Mike O’Rielly said the original NAL would have failed on the merits if it hadn’t been canceled. “The previous Commission’s attempt to evade the applicable statute of limitations through its continuing violation theory was offensive to the rule of law and must be thoroughly rejected,” he said. “This NAL was dismissed because it was procedurally flawed," emailed an AT&T spokesperson. "But it was also substantively flawed, and egregiously so, as its core factual and legal claims were simply wrong.”