Technology
IBM agreed to pay US$24.25 million to resolve FCC investigations into subsidies
On December 24, Beijing time, IBM agreed to pay a settlement of US$24.25 million to settle two investigations initiated by the US Federal Communications Commission (hereinafter referred to as “FCC”) on subsidies for broadband access services in schools and libraries.
The settlement money paid by IBM will end two FCC investigations that have continued for nearly 15 years. The company was investigated for alleged violations of the ‘E-Rate’ related to the New York City and El Paso school district. Plan regulations.
According to the agreement, IBM agreed to return US$24.25 million to the Universal Service Fund, which provided funds for the E-Rate program but did not admit its improper conduct.
The FCC stated that the committee found after investigation that between 2005 and 2008, IBM did not abide by New York’s competitive bidding rules and provided unqualified equipment and services in the El Paso School District in 2001.
IBM issued a statement stating that the company believes that it “has taken appropriate actions in support of the E-Rate program, but in order to amicably resolve a long-standing issue, we are pleased to reach this settlement.”
According to the statement, IBM has provided Internet access services to thousands of American schools and libraries and millions of American students through the E-Rate program.
FCC Chairman Ajit Pai said that the committee ‘must protect the General Service Fund from waste, fraud, and abuse, and ensure that funds are distributed in the most cost-effective manner.’
All telecom operators pay fees to the General Service Fund, which is responsible for providing Internet access services to users in rural areas of the United States and provides subsidies to low-income Americans through its Lifeline program, expanding network services on tribal lands, and through The E-Rate program helps schools and libraries.