SBC Withdraws From Key Portion
of E-rate Lawsuit
SBC Communications filed a motion December 21 to withdraw from a key portion of a lawsuit challenging implementation of the universal service program for telecommunications discounts for libraries and schools, reports ALA's Washington Office.
Original litigant BellSouth withdrew from the suit November 24. SBC's withdrawal leaves GTE and other firms in the suit, which maintains that the program forces telephone companies to carry too much of the burden for the subsidies and exceeds the scope of the law establishing the program.
“We are encouraged to see another litigant withdrawing from part of this court challenge,” said Washington Office Executive Director Carol Henderson. “We hope that this signals SBC's recognition of the importance of the e-rate to libraries and communities which support information equity.”
The case is currently before the 5th Circuit Court of Appeals in New Orleans. The Washington Office says some observers predict a decision could come in late spring 1999.
Posted January 11, 1999.
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