In a new development that threatens to further erode public trust and support for the eRate, technology giant IBM Corp. has accused eRate officials of unfairly targeting the company in their effort to rid the program of waste, fraud, and abuse. The eRate is the $2.25 billion-a-year federal program that provides telecommunications discounts to schools and libraries.

Earlier this year, the Schools and Libraries Division (SLD) of the Universal Service Administrative Co. denied more than $710 million in eRate applications for Funding Year 2002 that listed IBM as the primary service provider, because those...

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