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Blog Posts by Sharon Gillett

Reforming and Improving Lifeline and Link Up

January 13, 2011 - 04:18 PM


Last year was a busy one for Universal Service Fund (USF) reform at the FCC. We adopted a major order that modernized the E-rate program, which supports broadband for schools and libraries. We began the reform process for the High-Cost Fund, which supports phone service and broadband in rural and other high-cost areas, and the Rural Health Care program, which supports broadband for rural health facilities.

As part of our commitment to modernize all our USF programs and improve protections against waste, fraud, and abuse, we've also been working hard on improvements and reform proposals for Lifeline and Link Up, which provide telephone service discounts to low-income consumers. These discounts ensure that the financial hardships these customers face don't disconnect them from the societal and economic benefits of having phone service.

Here's what's been going on...

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Broadband: Jobs and Innovation

by Sharon Gillett, Chief, Wireline Competition Bureau
January 1, 2011 - 12:12 PM

Houston, We Have A Solution: HP E-rate Fraud Case Settled

November 12, 2010 - 02:34 PM


This week the FCC notched another win for America's taxpayers, and especially for America's students. Working with the Department of Justice, and acting on tips from whistleblowers, the FCC investigated allegations that a group of companies that included Hewlett Packard Company (HP) lavished gifts on Houston and Dallas Independent School District personnel to lure contracts that included some $17 million in HP equipment. These improper actions constitute E-rate fraud, threatening the integrity of a crucial educational program, and have resulted in a settlement. Since 1996 the E-rate program has brought Internet connectivity to millions of students and virtually every classroom across the nation.

The charges are as eye-opening as they are disappointing. Yachting trips and pricey meals; tickets to see Tom Brady and the Patriots as Houston hosted the 2004 Super Bowl; and other varied and alluring entertainment packages. These contractors pulled out all the stops. All to sway officials to skirt a competitive bidding process that is vital to ensure that government funds provided to schools and libraries for our kids' education stretch as far as possible.

In the settlement ironed out between the Department of Justice, FCC and HP, HP agreed to pay the government $16.25 million, most of which will be returned to the E-rate program. Further, the FCC will oversee a compliance agreement to prevent future foul play. HP will undergo audits of its E-rate business and has agreed to train its employees thoroughly on FCC gift and E-rate rules.

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