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Additional Details on Dark Fiber Eligibility
Message Posted October 8, 2003
Last week I wrote with the major changes to the soon-to-be released updated E-rate eligibility list, and the fact that the FCC has decided to remove Dark Fiber from the eligible column because "they haven't determined whether it is a telecommunications service." In PA, we have many entities leasing fiber or are considering leasing fiber, and so this message is particularly important.
We have had several conference calls with officials from the FCC over the last few days trying to get some additional clarifications on the issue and this is what I've learned.
TERM 'DARK FIBER'
Most entities, at least in PA, have come to describe the leasing of fiber as 'Dark Fiber' which we shouldn't be doing. The FCC made an important distinction. Dark Fiber is UNLIT, unused fiber and is NOT eligible. What I believe we have in PA are cases of leased 'LIT Fiber' not Dark Fiber.
Please keep this in mind when submitting your Item 21 attachments or speaking with a PIA representative. Our use of this term dark fiber is what has caused most of the panic over this issue, I believe.
WHO CAN PROVIDE LEASED, LIT FIBER?
* Lit Fiber is only eligible if it is being leased by an eligible telecommunications provider. To determine whether your service provider is "an eligible telecom provider," go to the SLD website and do a SPIN Search. If there is a "Y" in the column entitled, "Elig Telecom Provider" then they can lease you this service. Lit Fiber is ALSO eligible under the Internet Access category of services, which means it can be leased from a non-telco. BUT ...keep in mind that if you are leasing from a non telco provider (someone without the 'Y'), then the only service that may run over the fiber is Internet Access. And knowing why most entities want to use a fiber network, it's highly doubtful that you are going to JUST have Internet being transported.
MODULATING ELECTRONICS
There have been many questions raised about the electronics that light the fiber and who must/can provide them. The following Q & A should answer these questions:
1) Can a district use their own electronics to light the fiber?
No. An eligible telecommunications provider or an ISP (if using the fiber for Internet Access only) must light the fiber and provide the service to the applicant. This service must include the electronics that light the fiber. The district cannot use their own electronics to light the fiber.
2) Must both the fiber and electronics be leased from the SAME provider?
Yes. The Provider of the service (an eligible telecom provider or an ISP) may lease the components from other entities if it so chooses, but the service must be put together as a bundled service under one contract from the same service provider to the District.
COST ALLOCATION
If you have a contract to lease fiber, but are only lighting a few strands, you can only receive E-rate discounts on the LIT portion of the fiber. For example, if your contract is for 10 strands, but you only intend to use 4, you can only seek E-rate support for 4/10 (or 2/5) of the cost of the lease.
EXISTING CONTRACTS
If you are in a multi-year contract and your services do not meet the new eligibility criteria, the SLD has not provided any advice. However, I believe sound guidance is that if you want E-rate discounts on this service moving forward, you will want to post a new 470 this fall, and sign a new contract or contract amendment that is consistent with the new eligibility criteria. Unfortunately, the rules do not permit you to amend a contract without posting a new 470 and signing either a new contract or a contract amendment.
I hope this provides some much needed clarification on this issue. If you have any other questions that this message has not cleared up, please let me know.
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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