FCC Acts to Curb Fraud in ‘E-Rate’ Program

The Federal Communications Commission moved Wednesday to crack down further on fraud and waste in its multibillion-dollar program to connect schools and libraries to the Internet.

The five-member commission unanimously agreed to mete out three-year suspensions to companies or individuals who are guilty of misconduct in the so-called “e-rate” program or who are convicted of criminal violations. The FCC also said it no longer would fund requests for duplicative services and announced plans for a hearing next month to explore additional anti-fraud measures.

FCC Chairman Michael K. Powell said during the commission’s monthly public meeting that the agency “must remain vigilant in its oversight role” to avert more instances of fraud and waste.

As the FCC tightened some e-rate rules, it loosened others. Funds now can be used to pay for telephone voicemail so that teachers can respond more easily to calls from parents. The agency also said money could be spent on emerging wireless technologies such as Wi-Fi and on cellular phones for workers who need to move around on school grounds.