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Supreme Court Rejects E-rate AppealThe Supreme Court has refused to review the constitutionality of the federal rules that require telecommunications companies to contribute a portion of their revenues to subsidies for Internet hookups for libraries and schools, the Associated Press reported May 30. The court rejected, without comment, an appeal by Celpage, which provides paging services in Puerto Rico and the Virgin Islands. There was no decision on similar appeals by AT&T, MCI WorldCom, and local phone service provider GTE. Federal Communications Commission rules say phone carriers must subsidize both the Internet hookups and the cost of bringing local phone service to customers in rural and other high-cost areas. The U.S. Court of Appeals for the Fifth Circuit upheld the constitutionality of the rules in a July 1999 decision, saying the funding mechanism does not constitute an unconstitutional tax. Posted June 5, 2000. |
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