You are here

An E-Rate Update

Final forms are now available for applying for E-Rate discounts. Are you aware of that and of other recently released E-rate resources?

Final forms for applying for "E-Rate" discounts on telecommunications services for schools and libraries are now available on the U.S. Department of Education Web site, according to a press release issued last month.

In addition to the 2 forms (Form FCC 470 and 471), you'll find instructions for filling out the forms and an overview of the program. This overview includes information about

  • What kinds of schools and libraries are eligible
  • Calculating the discount
  • Classifying urban and rural locations
  • Eligible services
  • Examples of eligible and ineligible internal connections
  • Rules of priority, and
  • What schools and libraries must do before applying.

OVERVIEW OF THE E-RATE PROGRAM (DECEMBER 1997)

On May 7, 1997, the Federal Communications Commission (FCC) adopted a Universal Service Order implementing the Telecommunications Act of 1996. The Order ensures that all eligible schools and libraries have affordable access to modern telecommunications and information services. Up to $2.25 billion annually is available to provide eligible schools and libraries with discounts, often referred to as the "E-rate," for authorized services, beginning January 1, 1998.

Level of Discounts. Discounts range from 20 percent to 90 percent, depending on economic need and location (urban or rural). The level of discount is based upon the percentage of students eligible for participation in the federal free and reduced price school lunch program. Libraries will use the school lunch eligibility percentage and urban/rural status for their local school district.

Services Eligible for Discount. Discounts can be applied to all commercially available telecommunications services, Internet access, and internal connections. Discounts are available in all states, as long as the state adopts intrastate discount levels at least equal to the federal discounts.

Application Process. Discounts will be applied as of January 1, 1998, for qualified pre-existing contracts. For contracts covering new services with approved discounts, the discounts will be applied as of the date the contract is signed. A technology plan must be developed, and approved by an independent agency, such as a state education or library agency, or the Schools and Libraries Corporation (SLC). Eligible institutions must submit a self-certification of eligibility (attesting that all criteria have been met) to the SLC along with a description of the services requested. The percentage discount mechanism for administering this program means that this program is not a grant program. Schools and libraries are required to pay only the "non-discounted" portion of their costs for telecommunications services, Internet access and internal connections. The discounted portions of the services are directly applied to reduce the bills to be paid by schools and libraries and these amounts will be reimbursed directly to the service providers from the fund administrator. Requiring schools and libraries to pay a share of the costs from their own funds is intended to insure cost-effective purchases.

Fund Administration. SLC, a newly formed independent not-for-profit entity established by FCC rules, has responsibility for administering the schools and libraries program. The Universal Service Administrative Company (USAC), a subsidiary of the National Exchange Carrier Association (NECA), has been named by the FCC as the interim, overall administrator of Universal Service Fund collection and distribution.

Disbursement of Funds. Once an application has been accepted and approved, the schools and libraries will apply the applicable discount to their telecommunications services, Internet access and internal connections, and pay the remaining portion of the costs to the service providers. The service providers will seek reimbursement from the SLC for the cost of the discounts.

THREE MORE NEW E-RATE DOCUMENTS

The SLC issued three documents on November 20. All three documents are available online:

  • A letter to schools, libraries & communication industry leaders from Ira Fishman, CEO of the SLC
  • "Nine Steps You Can Take Now to Prepare for the Schools and Libraries Universal Service Program"
  • Questions and Answers

Below are the "Nine Steps You Can Take Now to Prepare for the Schools and Libraries Universal Service Program." (Three footnotes are not included here but are included on the web.)

"NINE STEPS YOU CAN TAKE..."

All eligible entities must submit three separate forms to the SLC in sequential order to participate in the Universal Service Program. These forms: (1) describe the services that a school or library (or school district or library system) intends to purchase; (2) detail the services for which a contract has been signed; and (3) confirm that these services have been provided.

Entities will need to collect the following important information to complete the first two forms:

Applicant Data: Ascertain

  • Your National Center for Education Statistics Code: Public schools may find this information online at http://nces.ed.gov/ccdweb/school/school.htm. If unavailable, the Program's fund administrator will assign a comparable universal service control number when you submit your "Description of Services Requested and Certification Form 470."
  • The total number of buildings and rooms for which you are requesting services.
  • Whether you qualify for an additional rural discount.

Student or Library Patron Data: Ascertain

  • Your current number of students or library patrons (i.e., population service area or number of cardholders).
  • The percentage of your students eligible for the National School Lunch Program or for libraries, the percentage of students eligible for the National School Lunch Program in the public school district(s) in which you are located.
  • Your discount percentage.

Telecommunications Services Data: Ascertain

  • The number of individual telephone numbers (including fax numbers) and the number of telephone extensions, computers, and video conference links that have or require service.

Internal Connections Data: Ascertain

  • The number of buildings and rooms that are or will be connected.

Internet Access Data: Ascertain

  • Current and/or requested dial-up connections and their dial-up speeds.
  • The number of current and/or requested direct connections and their speeds.

Technology Assessment Data: Ascertain

  • Whether you have or will purchase desktop communications software.
  • Whether your electrical system is adequate for your current or requested telecommunications services or whether it will need improvement.
  • Whether you have or will purchase a sufficient number of computers to maximize the capabilities of your current or requested telecommunications services.
  • Whether all staff have or will receive education technology training.

Consortium Data: Ascertain

  • The name(s) of billed eligible entity(ies) and zip code(s).
  • The name(s) of billed ineligible entity(ies) and zip code(s).

Technology Plan Data: Ascertain

  • Whether your technology plan(s) has been approved for other purposes, such as participation in "Goals 2000" and Technology Literacy Challenge and if not, whether the plan(s) has been or will be approved by your State or its authorized designee or by the SLC's authorized designee. (The plan will need to be approved in order for the applicant to be eligible for the discounts.)

Contract(s) Data: Ascertain

  • Whether you are requesting services covered by a master contract(s), e.g., a State contract and if so, its date.
  • The SLC number for each service provider with whom you have a contract.
  • The contract(s) award, expiration, and start dates.
  • The estimated nonrecurring cost(s) associated with each contracted eligible service.
  • The estimated monthly cost(s) associated with each contracted eligible service.
  • The estimated total annual cost(s) -- combined nonrecurring and monthly -- associated with each contracted eligible service.
  • The percentage of eligible entities using current or requested services that are shared (if applicable).
  • Your discount percentage for each eligible contracted service (may vary according to the distribution of services).
  • Your total prediscount cost for all eligible contracted services.

Related Resources

Article by Gary Hopkins, Editor-in-Chief
Education World®
Copyright © 2006 Education World

01/05/1998



 

Comments

Sign up for our FREE Newsletters!

Thank you for subscribing to the Educationworld.com newsletter!