FCC Seeks Comment on Eligible Services
Message Posted August 5, 2008
Each summer, the FCC issues a draft of the Eligible Services List for the upcoming funding year and seeks comments from interested parties. A summary of the changes from the 2008 ESL are listed below. Comments are due by August 14 and instructions on filing comments are below. But this year the FCC has also released an NPRM (Notice of Proposed Rule Making), seeking comments on a much broader set of possible eligible services and products -- some of which you may really like (like filtering, dark fiber, T-1 lines as basic phone service, and VOIP). These comments are due 30 days after the NPRM is published in the Federal Register, which could take several weeks.
Draft ESL Changes
In most cases, the proposed tweeks to the 2009 ESL merely codify what is currently being deemed as eligible/ineligible for FY 2008. This year’s changes include:
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An explicit reference to Ethernet as an eligible digital transmission technology.
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A clarification that E-mail archiving is an ineligible component of an e-mail service. Eligible e-mail storage is limited to eligible e‑mail files and is not intended for e-mail archiving.
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A proposal to explicitly list intranet Web hosting as an ineligible feature of an eligible Web hosting service.
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A clarification that Video On-Demand servers are not eligible for discounts.
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A clarification that “softphones” (e.g., VoIP telephone sets) are ineligible end user equipment.
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The explicit addition of software user licenses for Interconnected Voice over Internet Protocol (VoIP) systems.
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A reminder to providers of Interconnected VoIP services that they must contribute to the Universal Service Fund if their revenues are not de minimis.
A copy of the FCC’s Draft Eligible Services List Notice is available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-180A1.pdf. Comments are due on the draft ESL by August 14, and reply comments are due by August 21. Directions on how to submit electronic comments are listed below.
Eligible Services NPRM
The Eligible Services NPRM is available online at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-173A1.doc. It specifically requests comments on the numerous services and equipment listed below, but also provides an opportunity for interested parties to submit comments on any other service or product they believe should be added to or removed from the ESL.
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Interconnected VoIP Service: The FCC included this service as an eligible service in the 2007 and 2008 ESLs under the “Miscellaneous” category since it had not yet determined whether it was a telecommunications service or an information service. Presumably, Commission staff felt the need for a more formal process on this determination, and has tentatively concluded that interconnected VoIP should be designated as a supported Priority 1 service. The NPRM seeks comments on a number of related questions including: (a) Should CIPA requirements apply for this service; (b) in what ESL category does this service belong; and (c) what effect, if any, would the removal of interconnected VoIP service from the 2009 ESL have on applicants who rely on this service? Applicants who have been using this service and receiving E-rate discounts for it may wish to respond to that last question so that the FCC understands that removing it from the list would impose a burden on schools and libraries.
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Filtering Software: The NPRM explains that the FCC interpreted the language in the Children’s Internet Protection Act (CIPA) as prohibiting use of E-rate funds for filtering. The FCC now seeks comments on that interpretation and questions whether it may not be precluded from funding filtering software through the E‑rate program. It asks about the sufficiency of other sources of federal funding for filtering.
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Basic Telephone Service: The NPRM seeks comments on whether the definition of “basic telephone service” should be expanded to include other services “such as a Private Branch Exchange (PBX), key systems, T1 lines, and interconnected VoIP and Primary Rate Interface (PRI) trunk lines connecting a PBX to the Public Switched Telephone Network (PSTN), for purposes of exempting these services from the technology plan requirement.” It also asks whether it is appropriate to expand the definition to classify “certain Priority 2 services” (it mentions PBX and key systems) as a priority 1 “basic telephone service.”
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Dark Fiber: Dark fiber was eligible for discounts prior to FY 2004, but that changed with the Schools and Libraries Third Report and Order, released in 2003. The NPRM reopens the question of whether dark fiber should be eligible for discount and, if so, under what service category.
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Text Messaging: Based on comments that the ineligibility of text messaging is inconsistent with the treatment of other eligible messaging services (e.g., e-mail and paging), the FCC asks for comments on whether text messaging should be deemed eligible.
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Firewall: Should separately priced firewall services be eligible? Should the term include such technology as intrusion prevention devices, network access control, firewall traversal, and deep packet inspection devices?
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Anti-Virus/Anti-Spam Software: Does the increased prevalence of viruses and spam justify including as an eligible service software that protects equipment at schools and libraries from these threats?
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Scheduling Services: Scheduling services were explicitly made ineligible in FY 2006. Based on many comments that scheduling software is a necessary component of distance learning, the NPRM seeks comments on whether video and voice conferencing services, which are eligible services, require scheduling software as an essential component of the services.
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Telephone Broadcast Messaging: This service allows pre-recorded messages to be sent over phone lines to individuals concerning school delays or closures, reported absences, upcoming activities and events, and emergencies. This is not a component part of telephone service and is not a “custom calling feature.” Should it be deemed eligible for E-rate support and how would its current status affect the rationale for its eligibility?
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Wireless Internet Access Applications: Wireless Internet access used for an educational purpose is eligible in the same manner that wired Internet access is eligible. Commenters have noted the benefits of wireless Internet applications that are used away from the school or library property. This might include devices used on school buses to transmit information about emergencies or disturbances, and devices with electronic radio frequency identification (RFID) cards to track students entering or leaving buses. Handheld devices can allow school officials to make crime database queries, receive weather alerts, and coordinate emergency management planning with police and fire departments. The NPRM asks whether such devices used off premises serve an “educational purpose” and how do they compare with other currently eligible services used off-premises for educational purpose.
Comments in response to the Eligible Services NPRM will be due 30 days after it is published in the Federal Register; reply comments will be due 45 days after that publication date. It is unknown when publication will occur.
How to Submit Comments with the FCC
The easiest way to submit comments is through the FCC’s Electronic Comment Filing System ("ECFS") which can be accessed at http://fjallfoss.fcc.gov/prod/ecfs/upload_v2.cgi. The proceeding number is 02-6 and you'll want to upload your comments using either Word or PDF formats. All other information fields should be self-explanatory.
If you have any questions on the draft ESL or ESL NPRM, please don't hesitate to contact me.
-- Julie
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