IBM Agrees to Pay $24.25 Million to Resolve FCC Probes Over Subsidies

December 24, 2020 Off By admin


IBM has agreed to pay $24.25 million (roughly Rs. 180 crores) to resolve a pair of investigations by the Federal Communications Commission (FCC) over subsidies awarded to join colleges and libraries to broadband.

IBM’s cost will resolve two FCC investigations which have spanned almost 15 years over its alleged violations of “E-Rate” programme guidelines in reference to New York City and El Paso faculty districts. Under the settlement, IBM agreed to return $24.25 million (roughly Rs. 180 crores) to the Universal Service Fund that funds the E-Rate programme, however didn’t admit wrongdoing.

The FCC mentioned its investigations discovered IBM had not happy the aggressive bidding guidelines in New York for 2005-2008 and supplied ineligible tools and providers in El Paso for 2001.

IBM mentioned in an announcement it believed it “acted appropriately in its support of the E-rate programme, but in the interest of amicably resolving a longstanding matter we are pleased to have reached this settlement”.

IBM added it had supplied web connectivity to 1000’s of US colleges and libraries and tens of millions of American college students by means of the E-rate programme.

FCC Chairman Ajit Pai mentioned the fee “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 join individuals in rural areas, present subsidies for low-income Americans by means of the Lifeline programme, broaden service in Tribal lands and help colleges and libraries by means of the E-rate programme.

Also Read:  IBM Agrees to Pay $24.25 Million to Resolve FCC Probes Over Subsidies

© Thomson Reuters 2020


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