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FCC Makes E-rate Rulings/Other Year 1 Updates
Message Posted March 25, 1999

For the sake of brevity, I have condensed three E-rate updates that relate to Year 1 of the program.

1) Several applicants have called and said they can't get in touch with their service provider to sign the BEAR form. Be sure to check the SLD service provider database search feature under the reference section of the www.slcfund.org web site. If the service provider won't return your calls, contact me to troubleshoot on your behalf. And yes, I have heard of several applicants finally receiving reimbursement checks!

2) I've heard of many applicants being denied funding or who had discounts wrongly reduced who aren't appealing because they don't think it's worth the hassle. Let me just say that as long as you can make your case (be very nice, too), have documentation, admit if you made any mistakes and don't hesitate to say that you were confused because of the first year of the program, the SLD is looking favorably on many appeals. And yes, they have plenty of money saved to fund appeals. If you're not sure it's worth the hassle, call me.

3) Last week the Federal Communications Commission ruled on several items relating to the first year of the E-rate program -- mostly good. The whole SLD message is at the end of this message, but here it is in a nutshell:

-- The FCC has allowed extensions for using E-rate funds in the first year for internal connections through Sept. 30 instead of June 30, 1999. (Good news for applicants that were waiting for funding commitments to begin internal wiring projects.)

-- The FCC is allowing contracts that ended before the December 31, 1998 to be extended through June 30, 1999. (Good news for anyone who had a contract expiration date of Dec. 30 or before.)

-- The SLD will be allowed to pay out on appeals that are pending rather than holding the funds. (Good news for applicants that are appealing the SLD changing their discount level.)

Finally, the FCC clarified that internal connections will be triaged (when there are insufficient funds) by discount percentage rather than discount percentage bands.

-- Julie

The announcement below is from the SLD website:

FCC Extends E-Rate Implementation Deadline

Responding to concerns raised by schools and libraries that they would be unable to complete installation of internal connections by June 30, 1999, the Federal Communications Commission voted today to extend the deadline for using E-rate funds until September 30, 1999, the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC)
announced today. The Commission extended the deadline to "ensure that schools and libraries have sufficient time to use universal service support that was approved in the first funding year for nonrecurring service such as installation of internal connections."

The Commission also addressed the situation of applicants whose contracts for telecommunications services and Internet access expired before Dec. 31, 1998, voting to permit them to extend or renew existing contracts through June 30, 1999, thus making them eligible for an additional six months of funding commitments.

In another important move, the Commission ruled that during the appeals process, the SLD can proceed with disbursing approved funds while an appeal is being reviewed. Existing rules had the unintended effect of preventing the SLD from disbursing any funds during an appeal.

Finally, the FCC also acted to affirm that when sufficient funds are not available to fund all internal connection requests, funds for discounts are to be allocated beginning with applicants at the ninety percent discount level and then -- to the extent funds remain -- to applicants at each descending single discount percentage.

Julie L. Tritt
Executive Policy Specialist
Office of Educational Technology
Pennsylvania Department of Education
333 Market Street, 10th Floor
Harrisburg, PA 17126
Tel: (717) 705-4486
Fax: (717) 787-7222
00jtritt@psupen.psu.edu
www.L2L.org

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