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June 16, 2003

Introduction

The E-Rate Central News for the Week is prepared by E-Rate Central. E-Rate Central specializes in providing consulting, compliance, and forms processing services to E-rate applicants. To learn more about our services, please contact us by phone (516) 801-7804 or by e-mail. Additional E-rate information is located on the E-Rate Central Web site.

“SETA” Becomes “SECA”

The organization providing this electronic newsletter and associated Web site, previously known as the State Education Telecommunications Alliance (“SETA”), has been renamed the State E-rate Coordinators’ Alliance (“SECA”) to better reflect the role that its members play in the E-rate program. As recognized state coordinators, the SECA members work closely with the SLD on both individual state and national E-rate issues. Because many of the members are associated with their state departments of education, SECA operates informally under the umbrella of the Council of Chief State School Officers (“CCSSO”).

Wave 5 Funding for FY 2003; Wave 30 for FY 2002

Wave 5 for Funding Year 2003 is scheduled to be released on Monday, June 23, 2003. Total funding in this wave is approximately $85 million for about 2,330 applications. The cumulative total for FY 2003 is now $384 million.

Wave 6, which normally would have been issued two weeks hence, is expected to be accelerated to Monday, June 30, 2003, allowing the SLD to maximize the number of funding decisions made prior to the actual start of FY 2003 on July 1.

Funding in the first five waves involve only applications — and generally smaller applications — for Priority 1 services. The SLD has not yet made a decision on the discount levels at which Internal Connections can be funded for FY 2003, but has determined that funding will not be available at any level below 70%.

Wave 30 of Funding Year 2002 is expected to be released later next week. Last week, the SLD announced that FY 2002 funds would not be available for Internal Connections at the 80% discount rate. As a result, Wave 30 will include numerous “Not Funded” decisions for the 80% FRNs that the SLD has been holding pending the final determination that the Internal Connections cutoff would be 81%.

Wave 30 is expected to be the last formal funding wave for FY 2002. Subsequent funding decisions will be released in smaller batches – often referred to as funding “ripples” – at irregular periods.

Comment Period for FCC Notice of Proposed E-rate Rulemaking

The FCC’s Second Report and Order and Further Notice of Proposed Rulemaking, originally released on April 29, was formally published in the Federal Register on Friday, June 20. This publication establishes the 30-day comment periods for the Notice of Proposed Rulemaking (“NPRM”). Initial comments are due by July 21; reply comments are due by August 19, 2003.

The NPRM E-rate issues on which the FCC is seeking comments include rules for the identification and carryover of unused funds, several minor items dealing with technology plans and a computerized eligible service list, and major provisions related to the potential disbarment of vendors and/or applicants. An open-ended request for comments related to waste, fraud, and abuse effectively invites comments on a broad range of E-rate issues.

A detailed list of the FCC’s requested comments, prepared by E-Rate Central, is (see Requested Comments). A copy of the FCC’s Second Report and Order and NPRM (FCC 03-101) is available at FCC 03-101.