The Kendrick
Group, LLC.
“Integrating
Technology and Education”
http://educationrate.com
The E-Rate Program Overview*
On May 7, 1997, the Federal Communications Commission adopted a Universal Service Order implementing the Telecommunications Act of 1996. The Order was designed to ensure 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.
1. Program Overview
a. Level of Discounts
Eligible schools and libraries may receive discounts on eligible telecommunication services ranging from 20 percent (less than 1% of students on free and reduced lunch program) to 90 percent 75% or more of students on free and reduced lunch program), depending on economic need and location (urban or rural). The level of discount is based upon the percentage of students eligible for the National School Lunch Program or other federally approved alternative mechanisms contained in the Improving America’s Schools Act. Libraries will use the discount percentage of the school district in which they are located.
b.
Services Eligible for Discount
Discounts can be applied to commercially available Telecommunications Services, Internet Access, Internal Connections, and Basic Maintenance. Eligible services range from basic local and long distance telephone services, and Internet access services, to acquisition and installation of equipment to provide internal connections.
Internal Connections are subject to funding in 2 out of 5 consecutive funding years.
c.
Application Overview
To apply for discounts, schools and libraries submit a three-stage application consisting of:
FCC Form 470 (Description of Services Requested and Certification)
FCC Form 471 (Services Ordered and Certification)
FCC Form 486 (Receipt of Service Confirmation)
Discount
Matrix Based on National Schools Lunch Program
INCOME
Measured by % of
students eligible for the National School Lunch Program |
URBAN LOCATION E-Rate Discount |
RURAL LOCATION E-Rate Discount |
|
If the percentage of students in the school qualifying for the
|
…and the school is in an URBAN area, the E-rate |
…and the school is in a RURAL area, the E-rate |
|
Less than 1% |
20% |
25% |
|
1% to 19% |
40% |
50% |
|
20% to 34% |
50% |
60% |
|
35% to 49% |
60% |
70% |
|
50% to 74% |
80% |
80% |
|
75% to 100% |
90% |
90% |
Examples of Eligible and Ineligible Services (Eligibility may in some cases be conditional)
|
Eligible Services |
Ineligible Services |
|
§ Basic phone service, which includes local and long distance (toll) service § Leased data circuits § T-1, 56K, ISDN lines § Dial-up Internet access § Direct Internet connections |
§ Voicemail § Online content § Professional development training § Software (see, however, Eligible Internal Connections) |
|
Eligible Internal
Connections |
Ineligible Internal
Connections |
|
§ Telecommunications wiring § Routers § Switches § Hubs § Network servers § Certain system operating software § Wireless LANs § Installation & basic maintenance § Private Branch Exchange (PBX) |
§ Personal computers § FAX machines § Modems in personal computers § Electrical wiring § Asbestos removal § Cameras |
Rules of Priority
In the Fifth Order on Reconsideration, adopted by the FCC on June 12, 1998, the FCC established revised funding priorities and a method of assuring that, if requests for discounts exceed funds available, the poorest schools and libraries obtain the greatest benefits from the Universal Service support mechanism, and needs of other applicants are honored as well.
For applications received within the funding request filing window, funds will be allocated for all approved requests for Telecommunications Services and Internet Access as a first priority. Remaining funds are to be allocated for Internal Connections as a second priority. Among the requests for internal connections, the schools and libraries in the highest need category (those qualifying for the greatest discounts) are first allocated the remaining funds, continuing to the progressively less needy, as long as funds remain available for requests received inside the filing window.
If the funds remain available for requests received outside the window, the Fifth Order provides that the original, first-come, first-served priority system established by the Universal Service Order of May 7, 1997, shall be implemented.
The E-Rate program can be complex for districts in the fact that the amount of funding depends on two factors, the district’s discount rate and the amount of funds requested on the total number of applications.
Priority 1 funding known as telecomm includes all phone, data, pager, cellular, and long distance services. This group will always be funded first. Priority 2, known as internal connections consists of the cabling, conduit, trenching, and hardware infrastructure. These are the most vulnerable funds due to the demand of Priority 1 services.
We are currently in Year 10 of E-Rate, 2007 – 2008. Year 11 planning must start now since we are at the start of filing for Year 11’s services.
Sincerely,
Gary Kendrick
President/CEO
The Kendrick Group, LLC
*
This quick overview of the complex technology
funding source known as E-Rate was prepared as a briefing paper and was not
designed to cover all areas or the complexities of the E-Rate program.
