SLD Releases Yr 10 (2007-2008) Demand Level to FCC
Message Posted March 15, 2007
The SLD has released their demand estimates for Year 10, Funding Year 2007, and unlike the previous four years, demand has increased slightly. Demand for Yr 10 totals $3.69 billion, although this figure is likely to be reduced as applications are denied and duplicate requests are eliminated. This demand is still well over the annual cap of $2.25 billion and based on prior years' demand, this figure likely indicates that Year 10 internal connections funding will reach somewhere in the mid 80%-discount range.
The basic breakdown by service category, showing a total drop in each compared with Yr 9 (2006), is provided below. A more detailed breakdown of the SLD’s demand estimates for Yr 10 is available at http://www.universalservice.org/_res/documents/sl/pdf/2007-03-08-FY2007-Demand-Estimate.pdf.
FY 2006 FY 2007
Telecommunications Services $1,336,958,967 $1,403,384,291
Internet Access 348,342,133 $388,825,018
Internal Connections 1,601,659,352 $1,637,608,435
Maint. of Internal Connections 262,378,857 $259,564,120
Total Demand $3,549,339,309 $3,689,381,864
A few notes:
1) Many applicants were expecting FY 2007 demand to decrease due to the fact that FY 2007 was the third year of the 2/5 rule, essentially making it the first year that some entities were not eligible to receive Internal Connections funding. Demand did, however, fall by 3.8% at the 90% discount level, and increased by 10.4% at the 80 - 89% discount band.
2) A total of 40,354 Form 471s were received. 98% of applications were filed online and 75% of Form 471s were certified online as well.
3) In Pennsylvania, 5579 FRNs were filed on 2384 Form 471s, by 1203 different entities. Total demand from PA applications is $83,368,371.74 , with requests for priority 1 services of $63,086,619, and requests for priority 2 services/equipment of $20,281,752. It should be noted that all of these figures for PA are lower than last year.
4) This SLD's demand estimate was provided to the FCC two weeks earlier than last year, which may mean that FCDLs will start flowing earlier than last year. Another good sign is that the FCC has already approved the Year 10 PIA review procedures (several weeks ahead of last year). So look for the first funding wave to be announced in early April.
-- Julie
Julie Tritt Schell
717-730-7133 - o
717-730-9060 - f
jtschell@comcast.net
www.e-ratepa.org
Penn*link
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