BellSouth announced November 24 that it is withdrawing from the lawsuit that it and two other firms filed in August 1997 against the Federal Communications Commission over the implementation of the federal universal service, or e-rate, program.
BellSouth made the announcement one day after a federal advisory panel recommended that the subsidy program be expanded in order to protect rural and other low-income phone companies.
Through a surcharge on long distance telephone calls, subsidies are provided for rural telephone service, rural health care, and Internet connections for schools and libraries.
GTE and SBC Communications will reportedly go ahead with their lawsuit, which is scheduled to be heard in a federal court in New Orleans beginning December 1.
Posted November 30, 1998.