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SLD Releases Updated E-rate Eligible Services List
Message Posted November 21, 2000

The SLD has posted a new Eligible Services List for use by applicants as they prepare their FCC Forms 471 for Funding Year 4. Applicants and service providers should review this list carefully, as it indicates significant changes in the eligibility of some equipment. There are also additions to the list which always have been assumed, but now are actually official. A detailed list of the changes to the list is included at the bottom of this message.

Significant changes include: Video - equipment necessary to transmit video to the classroom or library room is eligible for discounts. In previous lists, such equipment had been described as ineligible, while video service was eligible if provided by an eligible telecommunications carrier. After careful review of these determinations, the FCC has advised SLD that such video equipment is eligible just as equipment that carries voice or data to the classroom or library room is eligible. End-user equipment for video services (for example, TV monitors, cameras, and VCRs) is ineligible, just as end-user equipment for voice or data is ineligible.

Modems - Modems are now eligible, as long as they are not installed in or supporting end use equipment.

Internet Telephony - Unfortunately, the SLD has now officially stated that Internet telephony is not eligible. The guidance states: Components of Internal Connections that transform voice to Internet protocol for the purpose of voice over Internet telephony are not eligible for discount.

Also, internet filtering software has not been made eligible.

To view the entire list, go to: www.sl.universalservice.org/reference/eligible.asp

TELECOMMUNICATIONS SERVICES

Directory Advertising - No

Advertising in the telephone directory yellow pages.

Directory Assistance Charges - Yes

Charges assessed for calls made to 411, or other Directory Assistance numbers such as 555-1212, for information typically charges assessed on a per call basis.

Fire Alarm Telephone Line - No

A fire alarm telephone line is a telecommunications line specifically dedicated to a school or library’s fire alarm system.

Inside Wire Maintenance Plan - Conditional

An Inside Wire Maintenance Plan is the monthly recurring charge that provides for the repair, replacement and maintenance of customer owned inside premise wire. That is, the wire located on the client side of the Network Interface Device, or DMark. The Inside Wire Maintenance Plans are offered by

Telecommunications Service Providers and may be imbedded in their regular monthly telephone bills. The wire Maintenance covered by the plans is eligible. However, wire maintenance plans that contain provisions for a free loaner telephone are not eligible for discount, unless the school or library agrees not to make use of the free loaner telephone.

Network Access Register - Yes

Used with Centrex service, the Network Access Register (NAR) serves the same function as a Private Branch Exchange (PBX) trunk in that it provides access to and from the telephone company central office.

PIC Change Charges - Yes
When the PIC, or Primary Interexchange Carrier, is changed from one long distance company to another at the request of the customer there is a one-time PIC Change Charge assessed by the local telephone company to cover the cost of reprogramming the telephone company central office switch.

Prepaid Phone Cards - No

Prepaid Phone (Telephone) Cards are cards sold, generally, in retail establishments that give the holder a specific amount of telephone call time. The cards are sold in various dollar amounts most typically $1, $5, $10 and $20 values.

Voice Mail Service - No

INTERNAL CONNECTIONS

Cabinets - Conditional

An enclosure for equipment, terminating cables, connection devices and/or wires. Cabinets are eligible if the contained equipment is eligible.

Cable Modem- Conditional

A cable modem is a modem designed for use on a TV coaxial cable circuit to provide asymmetric bandwidth, with more capacity in the direction of the customer premise from the headend equipment. The modem acts to modulate and demodulate the same as a conventional modem.

If used to provide Internet access, cable modems are eligible. If located in end-user equipment or for cable TV service they are not eligible.

CODEC - Conditional

The coder/decoder, also known as CODEC, is a device comprising an encoder and decoder in the same equipment. The CODEC produces a coded output and compresses and decompresses audio and video signals. The CODEC is eligible for discount if part of an eligible component.

Edge Device - Yes

A device, such as a router or Ethernet-to-ATM switch, that is directly connected to an ATM network. The User Network Interface (UNI) defines the connection between the edge device and the ATM network switch. It is the first device in the connection with the ATM network. It is also called an end device.

Enhanced Multimedia Interface (EMMI) - Yes

The EMMI is an interface that gives PC and workstation users on ATM networks the ability to send and receive full-motion, high quality video, CD-quality stereo and high speed data. Signals are transformed into ATM cells and transported optically, using the Synchronous Optical Network (SONET) standard.

Environmental Monitoring Card/Meter - No

The Environmental Monitoring Card is an interruptible power supply card used to monitor the environmental conditions in rack, computer room, and data center environments.

Frame Relay PVCs - Yes

PVC-Permanent Virtual Circuit, a permanent association between two DTEs (Data Terminal Equipment) established by configuration. PVC uses a fixed logical channel to maintain a permanent association between the DTEs. PVCs are widely used in X.25 networks and are the basis on which communications take place in a Frame Relay Network.

Hub - Yes

Modems - Conditional

All Modems are eligible if used with, or in, eligible components of Internal Connections. They are not eligible if used with, or in end-user equipment.

Modem Card - Conditional

Modem cards are modems in card form that fit into a slot in the computer. Modem cards used for dial up capability are equipped with tip/ring or transmit and receive modules which when connected to a phone line translate the line's analog signal to a digital signal so it can communicate with the computer.

Modem cards are eligible if used with, or in, eligible components of Internal Connections. They are not eligible if used with, or in end-user equipment.

Multimedia Kit - Conditional

A package of hardware and software that adds multimedia capabilities to a computer. Typically a multimedia kit includes a CD-ROM or DVD player, a sound card, speakers, and a bundle of CD-ROMS. Multimedia Kits are eligible for discount if used in an eligible component. They are not eligible in workstations.

On-Site Technical Support - Conditional

On-Site Technical Support is the presence of a vendor- provided technician at the client’s location for a specified period of time. Most often this on-site support includes the installation, maintenance and changes to various service and equipment under contract. On-Site Technical Support is only eligible if it is a component of a maintenance agreement/contract for an eligible service, or product. And it must specifically identify the eligible products or service covered by the contract.

Personal Digital Assistant - No

Personal Digital Assistant (PDA) is a handheld device that combines computing, telephone/fax, and networking features, such as Palm Pilot.

PVBX - Yes

A PVBX or Private Video Branch Exchange is a video PBX. The video intercom system is designed and operated similar to an intercom/PA system. The PVBX integrates the functionality of a PBX by providing video integrated into the switching matrix of the PVBX. The PVBX acts as a video intercom system linking classrooms and administration as well as traditional PBX methodologies.

Racks - Conditional

A metal supporting framework for mounting cables, equipment or wires. It is eligible if the supported equipment is eligible.

RAD - No

RAD, or rapid application development, is a programming system that enables programmers to quickly build working programs. In general, RAD systems provide a number of tools to help build graphical user interfaces that would normally take a large development effort. Some of the RAD systems currently available for Windows are Visual Basic, Delphi and FastRAD. RAD is software that is not needed to operate an eligible server and therefore is ineligible for discount.

Servers

Several types of servers have been added to the eligibility determination list. For sake of clarification, each type and it’s status is as follows:

New: Caching Server - No

New: DHCP Server - No

New: Firewall Server - No

CD Rom Server - No

Domain Name Server - Yes

"E" Mail Server - Yes

File Server - Yes

Communications Server - Yes

Terminal Server - Yes

Web Server - Yes

Software

Operational Software - Yes

Software required for operation of eligible equipment.

Application Software

New: Anti-Virus - No

New: “E” Mail - Yes

Browser - No

Fire Wall - No

Network Administration Software - No

Network Management Software - No

Web Site Construction Software - No

Station Message Detail Recording - No

Station Message Detail Recording (SMDR) or Call Detail Recording (CDR) is a software/hardware PBX component that provides the ability to generate reports on call details. Those details include, but are not limited to, call duration, PBX station number, time and date, trunk route, dialed number and cost of call.

Switches - Yes

A mechanical or electronic device that directs the flow of electrical or optical signals from one side to the other. Switches with more than two ports, a LAN switch or a PBX, are able to route traffic.

Test Equipment - No

Equipment used to test hardware software, cable continuity, telecommunications links, etc.

Universal Box - Conditional

The Universal Box is the name used by some vendors for a cable modem. They are modems designed for use on a TV coaxial cable circuit. Cable modems are eligible if used with, or in, eligible components of Internal Connections. They are not eligible if used with, or in end-user equipment.

Video Amplifiers - Yes

Video amplifiers and other video equipment necessary to deliver video services to the classroom are eligible for funding.

Video Equipment - No

End user equipment is ineligible for discount.

Video CODEC - Yes

CODEC modem that converts video signals from their analog form to digital signals.

Video Group & Desktop Equipment - Conditional

Equipment used to control the programming, distribution, and selection of video conferencing or televisions broadcast. It is ineligible if used in end user equipment.

Voice Interface Card - Yes

Voice interface cards (VIC) are usually components of a router or components of PBX systems that interface with internal systems and the Public Switched Telephone Network. Some examples of VICs are:

FXO Cards, E&M Cards, FXS Cards

Voice/Fax Network Module - Conditional

Voice/Fax modules are an access product that enables the transmission of multiprotocol data, voice, fax and LAN over frame relay, leased line, DDS or ISDN services. Voice/Fax modules are eligible when used with eligible equipment.

Wire Manager - Conditional

Wire Managers are wire restraints to house/arrange wiring and cabling. They can be aluminum or plastic and may be rack mountable. Wire Managers are eligible when used with eligible wiring/cabling.

Zip Drive - Conditional

Digital drive used in a backup capacity by compressing and storing data. The Zip drive is eligible only if part of, or used with an eligible component.

INTERNET ACCESS

Caching Service- Conditional

Caching service is a special high-speed storage mechanism. A block of high-speed memory at the border of a network and the Internet that holds frequently accessed Internet information, thereby reducing retrieval times for information often requested from the Internet. Caching servers owned by and caching service provided by an Internet Service Provider as part of Internet Access service are eligible for discount.

GSP Rates - Yes

GSP, or Global Service Provider, provides the interLATA component of Internet Services. The GSP services are provided by a number of providers and may be dependent on the Internet Service Provider selected. The GSP provides the interLATA services to connect the ISP network to the global Internet network. There may be separate charges for this component of Internet access and such charges can be dependent on the type of Internet access selected.

Web Hosting - Conditional

Web Hosting is an Internet service provided by an Internet Service Provider. The ISP will host a school or library's website (www.schoolname.org) as part of the ISP bundled service offering, or as an optional service. The service is eligible if bundled with Internet access at no additional charge. It is not eligible if provided as a separate line item, with a separate identifiable charge.

MISCELLANEOUS

Extended Warranty- Conditional

Extended warranties are those that cover periods of time outside the current funding year. Extended or multi-year warranties must be prorated so only the portion of the warranty applicable to the current funding year is funded. If a multi-year warranty is included in the price of the equipment for all customers without a separately identified cost, proration is not required.

Metropolitan Area Network (MAN) - Conditional

In terms of the E-Rate program, a MAN and WAN (Wide Area Network) are considered the same.

The cost of building or purchasing MANs, as is true for WANs, is not eligible for support. However, schools and libraries are not precluded from receiving support for a metropolitan area network run over leased telephone lines because such an arrangement constitutes a Telecommunications Service. Nor are they precluded from leasing lines from a non-common carrier for exclusive access to the Internet.

Shipping Charges - Conditional

Shipping Charges are the charges associated with the delivery of products from their point of origin to the

customer premises. Shipping Charges are eligible for discount when they are for the delivery of eligible products, or services.

Wireless WAN - Conditional

The cost of purchasing equipment used to provide a Wireless WAN for the transmission of voice or data is ineligible for discount. The cost of equipment used to provide a Wireless WAN exclusively to access the Internet is eligible but only if leased, never if purchased. The equipment used for a Wireless WAN can consist of antenna, transmitters, receivers and other components of Internal Connections.

Wireless WAN should not be confused with a Wireless Local Area Network (WLAN). Equipment used to provide a Wireless LAN is eligible for discount.

Julie Tritt Schell

Executive Policy Specialist

Pennsylvania Department of Education

333 Market Street, 10th Floor

Harrisburg, PA 17126

(717) 705-4486

(717) 787-7222 - fax

jtritt@state.pa.us

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