The current USF audits by USAC are turning up collusion between school 
districts (the principle is the brother of the local ISP) and provider of 
goods and services of E-rate funded projects.  The audits have not shown any 
telephone company to be misusing this money.

And I want to repeat, this is not taxpayer money.  Most of this money is 
from a charge tacked onto the bills of the RBOC customers.  It is revenue 
pooling and re-distribution.

So, lets back off the "misuse by telephone company" tone of this discussion. 
If we want to point fingers, you will find the fingers are pointing at the 
local networking and ISP companies.  That is the major source of the misuse. 
The second is cell phone companies claiming to be providing pots service to 
rural customers via tellular units.  Western Wireless built a business plan 
around tapping the USF for all it could get.



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