Could Internal Connections Requests Be Funded for Year 6?
Message Posted January 16, 2003
I don't want to get anyone's hopes up, but I'd like to raise this issue before it's too late to file your Year 6, Form 471. If you have any buildings in the 70-90% range, please read.
1) Currently, Year 5 internal connections requests are being funded at the 90% level, and the SLD is actively reviewing requests ranging from 80% to 89%. I believe they are reviewing these applications in the event that IBMs requests (worth more than $1 billion) are denied (see previous e-mail which outlines the investigations into IBMs E-rate tactics).
If they are denied, there is a great likelihood that Year 5 internal connections requests may be funded for requests with discounts in the 80% range. I still believe 80% is a stretch, but it could happen. (The demand at 80% is huge because most applicants apply using a site-specific discount for internal connections, which can only ever end in 0, except for 25% -- 40, 50, 60, 70, 80% as examples). If there's a possibility of internal connections funding being provided for the 81-90% applicants in Year 5, there is a good chance that they will reach that same level in Year 6.
But wait... there's more.
2) In June, the FCC released their first Order as a result of their NPRM (Notice of Proposed Rule-Making). That Order contained a very important change to the program because it said that any funds that are unspent from a previous year will be rolled over into future years -- above the $2.25 billion annual cap. Previously, unspent funds were given back to the telecom carriers so they supposedly didn't have to place as high of universal service fees on everyone's phone bills. What hasn't been decided yet is whether Year 4 unspent funds (or funds that were returned to the fund), will roll-over into Year 6 or Year 7.
If they are rolled into Year 6, the fund could easily be $3 billion, which means that there is a much greater likelihood that internal connections requests will be funded for applicants further down the discount matrix. Do I believe it will fund the 40, 50 and 60% requests? Not likely. But I do recommend applying for internal connections if you have any schools with discounts of 70-90%.
3) Will internal connections funding ever go even lower? I believe there is a great possibility for this in Year 7. The FCC has yet to issue the other Orders from their NPRM, but I anticipate that several of their rulings may include allowing you to apply for internal connections every other or every third year, changing the discount matrix for internal connections so applicants will never have a 90% discount, etc. Just speculation, of course.
Summary: Applicants with buildings in the 70-90% range should apply for internal connections requests for Year 6. EVERYONE should be thinking about internal connections request for Year 7.
Didn't post a Form 470 for Year 6? No problem. Make your purchases from PEPPM (everyone) or the DGS 5850-01 contract (public schools only) where a 470 already has been filed. Here's a link to my previous listserve message that contains the necessary information:
http://www.pde.state.pa.us/ed_tech/cwp/view.asp?a=3&q=86593
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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