IBM Will Pay $24.25 Million To Resolve FCC Probes
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.
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.
