E-rate Changes and Updates for Funding Year 2013
October 26, 2012
During yesterday's E-rate Webinar for E-rate Veterans, several important changes and updates were provided to attendees. Attached is a copy of the PowerPoint from that training and the major changes/updates are summarized below.
FY 2013 Eligible Services List Released: There are no substantive eligibility changes from last year.
Bundled VOIP Handsets and Netbooks: E-rate rules will not pay for end-user devices; however, there is an exception for free cellphones to be bundled with Priority 1 services without cost allocation. Several VOIP vendors are marketing VOIP handsets as eligible to be bundled with Priority 1 hosted VOIP service, despite the 'no end-user device' rule. The FCC is currently considering several requests for clarification on this issue but until they issue their final decision, they have warned that if applicants sign agreements that contain such end-user devices (whereby there is no added cost for the phone), they do so at their own risk. I will keep you posted on this issue in the coming weeks.
Form 470 - Use Either Telecom or Internet Bucket: The best news of the year is a significant change made to the Form 470 (although not to the physical form itself). Beginning in FY 2013, applicants may post for Priority 1 services in EITHER the telecommunications services bucket OR the Internet access bucket on the Form 470. So if you post for webhosting under telecom, or cellular service under Internet access, they won't be denied. Applicants will still be required to choose the proper category on the Form 471, but if they don't, this can be corrected. The Priority 2 categories have NOT been combined on the 470 -- this change is only for Priority 1 services. The Form 470 itself will be changed the next time the form is updated.
New Priority 2 Form 470/RFP Requirement: Beginning with FY 2013, applicants must list "or equivalent" language on the Form 470s for Priority 2 services and equipment. For example, you cannot say, "HP 2510 Switch," but you are permitted to say, "HP 2510 Switch or equivalent." Any bids received with comparable equipment must be considered in your bid evaluation.
FY 2013 E-rate Application Window Dates: USAC has not yet set the FY 2013 Form 471 application window dates, but we expect the window will open in early-mid December and will close in early-mid March.
Off-Campus Internet Access: Please don't forget that E-rate does not cover any off-campus usage of data service or 3G/4G service, even when used for educational purposes. On-campus usage of these services remains eligible. If you need to do a cost allocation, you may either deduct the ineligible amount from the pre-discount price on the BEAR Form 472 before it's submitted, or instruct your cellular provider to deduct a certain percentage from your monthly discounted invoices. I realize this rule sound antiquated, but for now, it's the rule.
The Form 470 can be filed NOW at: http://www.sl.universalservice.org/menu.asp. I will be sending detailed information on filing the Form 470 in the next week, but applicants should begin preparing to file their FY 2013 Form 470 to competitively bid their services in the next few weeks. Don't forget, you must post a Form 470 and competitively bid your E-rate-discounted services every single year unless you're in a multi-year contract.
If you have any questions, please e-mail me at jtschell@comcast.net. E-mail is always the best way to reach me, and it will be particularly so over the next two weeks while I am conducting E-rate trainings.
-- Julie
Julie Tritt Schell
PA E-rate Coordinator
717-730-7133 - o
717-730-9060 - f
jtschell@comcast.net
www.e-ratepa.org
Penn*link
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