FCC Adopts New E-rate Rules

The $2.25 billion e-rate fund, designed to provide discounted Internet service to schools and libraries, has been plagued by criticism since its 1996 launch. FCC audits have uncovered waste and abuse ranging from simple paperwork and reporting errors to false billing and other cases of fraud potentially reaching hundreds of millions of dollars (see News , May 2003, p. 18).

Under the new FCC rules adopted April 23, no duplicative services will be funded and those found guilty of misconduct or convicted of criminal violations associated with the program will be banned from participating for three years or longer. To help streamline the application process for schools and libraries, the agency will also provide an online list of eligible equipment to wire schools and offer online and telephone assistance.

"The survival of this program depends on strong oversight, and I am encouraged that we appear to be on the right track," says FCC Commissioner Kathleen Abernathy.