National class action lawsuit alleges AT&T is charging long dista...
National class action lawsuit alleges AT&T is charging long distance customers surcharge “significantly in excess” of what it contributes to Universal Service Fund (USF). Suit, filed Wed. in U.S. Dist. Court, L.A., said AT&T was billing customers fee equal…
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to 11.5% of long distance charges, while FCC currently required carrier to contribute 6.808% of long distance revenue to USF. Lawsuit calls fee “huge secret profit center” and said it gave AT&T unfair advantage in highly competitive long distance market: “By hiding revenue in the Universal Connectivity Charge, AT&T is able to advertise lower per-minute rates than it is effectively charging,” suit said. Class plaintiff Roger Gerdes is represented by Stanley, Mandel & Iola, LLP, Law Office of Andrew Kierstead, Matthew Rossman P.C. and Keller Rohrback LLP. Counsel estimates class exceeds 60 million people. Lawsuit follows call last month by House Commerce Committee ranking Democrat Dingell (Mich.) for FCC to investigate AT&T’s increase in USF fee (CD Jan 9 p1). Dingell urged FCC Chmn. Powell to “open the books and records” of AT&T while raising questions whether long distance companies in general were using fee to “gouge” customers. AT&T said it raised USF fee to 11.5% from 9.9%, saying FCC methodology to determine how much company should contribute to fund “was flawed.” Commission makes its determination based on company revenue from 6 months ago. AT&T said “lag” problem, “combined with diminished interstate and international telecom revenue,” necessitated increase.