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April 28, 2014

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), fax (516-801-7810), or through our Contact Us web form. Additional E-rate information is located on the E-Rate Central website.

The FY 2014 application window closed on Wednesday, March 26th, and PIA review is in full swing.  Funding waves are expected to begin later in May.

Wave 49 for FY 2013 will be released on Wednesday, April 30, 2014.  Funding for FY 2013 is available for Priority 1 services (Telecommunications Services and Internet Access) only.  Priority 2 is being denied at all discount levels.  Cumulative funding for FY 2013 is $2.05 billion.

Reply comments on the FCC’s Public Notice on E-rate Modernization (DA 14-308) were due last Monday, April 21st.  Depending upon how you count — because many recent filings in this proceeding were labeled “COMMENT,” rather than “REPLY TO COMMENTS” — we estimate that there were less than 100 reply-type submissions filed within the last week of the reply comment window.

Many of the reply comments focused on a few key issues, including:

  1. The best method to allocate limited funding for broadband internal connections equipment.  The FCC has proposed three alternatives, briefly referred to as (a) 1-in-5, (b) rotating bands, and (c) annual budget caps.  Each, or some combinations of each, have their supporters.  As long as funding remains limited, there will be advantages and disadvantages to any allocation process.
  2. The wisdom of assigning funding from a single pool of funds or from separate pools established to assure some funding for certain categories.  The FCC appears to be leaning towards the creation of separate funding pools for (a) broadband network services, (b) broadband internal connections equipment, and possibly smaller pools for (c) capital investment for applicants currently without any broadband access, and/or (d) demonstration projects.  E-Rate Central’s reply comments note the difficulty of accurately predicting demand for separate pools, and urge the FCC to adopt flexible allocation and reserve procedures to account for actual vs. projected demand for funds.
  3. The desirability of funding demonstration projects.  One side, led by the American Library Association (and a few other library organizations), supports grant-type demonstration projects, including those for technical assistance.  Others, largely school organizations, argue against diverting E-rate funding to demonstration projects as being administratively burdensome and difficult to evaluate in a timely fashion.
  4. The growing acceptance — albeit with some reluctance and with clear differences on details — of the need to eliminate or phase out E-rate support for “legacy” services and/or to reduce discount rates (as least for the internal connections category of service).
  5. Support for positions raised in initial comments by the State E-Rate Coordinators’ Alliance encouraging the FCC to revisit the following two appeal decisions:
    1. The Macomb ISD decision that effectively prevents applicants from contracting with more than one carrier to design more fail-safe networks using “multi-homing” or load-balancing.  In the Macomb case, the FCC had determined that only one service provider’s bid could be deemed most cost-effective.
    2. The Queen of Peace decision that creates major bidding problems for state procurement agencies seeking contracts for multiple types of equipment.  In this case, the FCC determined that all bids for a given product or service type naming specific vendors must include the phrase "or equivalent.”

For a sampling of other interesting reply comments, see:

To search for all filed comments and reply comments in this proceeding, use the search function in the FCC’s Electronic Comment Filing System.  Enter “13-184” in the Proceeding Number field, and click the “Search for Comments” button near the bottom of the screen.

E-Rate Modernization Workshop:

The FCC issued a Public Notice (DA 14-495) last week announcing an E-rate Modernization Workshop on May 6th to discuss “the challenge of delivering high-speed connectivity to and within schools and libraries and highlight successful strategies.”  The workshop will be held at the FCC building in Washington, DC, and will also be streamed live online.  The FCC plans to issue another Public Notice on this workshop when the agenda is finalized.

FCC Appeal Decisions Watch:

The FCC issued one appeal order (DA 14-558) last week granting Sundale Elementary School District’s appeal that their original appeal request was timely submitted to USAC. The order stated that the appeal was received within the 60-day period using the postmark date as the defining date. USAC’s denial had asserted the appeal was past the 60-day response period, but had used the date of receipt of the appeal at USAC’s mail facility.

The SLD News Brief for April 25, 2014 discusses how to use the View 471 Status Tool (View Status Tool) noting the two statuses: “Certified - In Window” or “Certified - Out of Window,” and the steps in the review process ending with the issuance of the Funding Commitment Decision Letter (FCDL). The News Brief makes special note about the interaction of the initial and final reviewers. Final reviewers ascertain that all review processes have been correctly followed.

The Tip of the Week is if you postmarked your FY2014 paper FCC Form 471 before the window closed and its status is still “Incomplete,” ask your contact person to call the Client Service Bureau at (888) 203-8100. The Schools and Libraries Division may be trying to reach out to you to correct errors or inconsistencies so they can complete the data entry of your form. It is a good idea to check the status of your applications on a regular basis.