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FCC Approves FY 2011 Eligible Services List
Message Posted October 6, 2010

Last week the FCC approved the Funding Year 2011 E-rate Eligible Services List and unlike previous years when there were few revisions, the FY 2011 list contains major changes. Those changes are outlined below and will be discussed in the fall trainings sessions that will be announced in the next day or so. Please note that because these changes are so new, there are still many unanswered questions that we hope to have clarified by the FCC in the coming weeks. A copy of the new FY 2011 ESL is attached.

Lit Fiber: Applicants will now be able to lease lit fiber from any provider, including non telecommunications providers (such as cable companies, electric companies, state or regional networks, etc.) in addition to telecommunications common carriers. This also means that any service may transverse the fiber, including voice, video, data and Internet (previously only eligible telecom providers could provide voice, video and data over telecommunications lines). This is great news to PA applicants that previously have not sought E-rate discounts for their lease of fiber from a non-telco! In order to qualify for E-rate discounts on lit fiber lines moving forward, the service should be listed in both the telecom and Internet categories on the Form 470. Existing contracts for lit fiber service from a non-teleco should be rebid if the contract was signed previously without posting a Form 470 and waiting 28 days.

Dark Fiber: The lease of dark fiber is now eligible and may be provided by either a telecom or non telecom provider. The applicant must provide the modulating electronics and the fiber must be lit immediately (cannot lease excess capacity for future growth). Installation costs are eligible, but only from the school building to the edge of the school property line. Special construction costs or installation costs (costs beyond the school property line) are not eligible. The cost of the modulating electronics is not eligible for P1 discounts. The FCC would like applicants to competitively bid both lit and dark fiber and do an apples-to-apples comparison of the total costs involved before deciding which service to select. More information about dark fiber will be forthcoming.

Webhosting: Although initially proposed to become ineligible, the FCC chose to retain webhosting eligibility and even expand it to allow for the additional functionality of discussion boards, blogging, instant messaging and chat. Several features remain ineligible and must be cost-allocated, including content, website development costs, searching of databases or content, student attendance reporting, and grade books.

GPS Services: Not eligible, including the cellular and data charges that are used to provide the serviced.

Unbundled Warranties: No longer eligible. Manufacturer warranties (up to 3 years) that are bundled with the standard purchase price of eligible equipment, will continue to be eligible. However, E-rate will pay for no longer pay separately-priced warranties (such as Smartnet) or any type of fixed price maintenance contracts that are insurance-like contracts. In order to receive E-rate funding for maintenance, applicants will be required to request E-rate funding for an estimated number of maintenance hours per year for their eligible equipment, based on current life of equipment and history of needed repairs. But the actual reimbursement from USAC will only pay for the cost of the actual work performed (which includes labor, equipment fix, or if it is beyond repair, equipment replacement.) There are many unanswered questions about the new basic maintenance restrictions.

Intrusion Detection and Prevention Devices and Services: Not eligible.

Anti-Virus and Anti-Spam Software and Services: Not eligible.

Firewalls: Separately priced firewalls are not eligible for Priority One funding, but are eligible for Internal Connections funding. Firewalls bundled with Internet access service are conditionally eligible.

Online Backup Solutions: Not eligible

Scheduling Services: Not eligible

More information about how to apply for Dark Fiber and Basic Maintenance services will be presented as information becomes available.

-Julie

717-730-7133 - o
717-730-9060 - f
jtschell@comcast.net
www.e-ratepa.org
Penn*link

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