IBM's payment will resolve two FCC
investigations that have spanned nearly 15 years over its alleged violations of
"E-Rate" program rules in connection with New York City and El Paso
school districts. Under the agreement, IBM agreed to return $24.25 million
to the Universal Service Fund that funds the E-Rate program, but did not admit
wrongdoing.
The FCC said its investigations found IBM
had not satisfied the competitive bidding rules in New York for 2005-2008 and
provided ineligible equipment and services in El Paso for 2001.
IBM said in a statement it believed it
"acted appropriately in its support of the E-rate program, but in the
interest of amicably resolving a longstanding matter we are pleased to have
reached this settlement".
IBM added it had provided internet
connectivity to thousands of U.S. schools and libraries and millions of
American students through the E-rate program.FCC Chairman Ajit Pai said the
commission "must protect the Universal Service Fund from waste, fraud, and
abuse and ensure that funding is distributed in the most cost-effective
manner".
All telecommunications carriers pay into
the Universal Service Fund that pays to connect people in rural areas, provide
subsidies for low-income Americans through the Lifeline program, expand service
in Tribal lands and assist schools and libraries through the E-rate program.
REUTERS