Funding Status
Current indications are that the FY 2012 Form 471 application window will open on, or shortly after, January 5, 2012, and close either March 15 or March 22, 2012. USAC is expected to announce the exact window dates within the week.
Wave 22 for FY 2011 will be released on Tuesday, November 15th. Cumulative funding for FY 2011 will be $1.26 billion. Priority 2 funding is currently being provided only at the 90% level. A number of FY 2011 applications have reportedly been held up pending final decisions on requested changes due to Ministerial and Clerical errors. Resolution of these issues is expected "soon."
Wave 75 for FY 2010 will be released on Wednesday, November 16th. Cumulative funding for FY 2010 is $2.84 billion. Priority 2 funding is being provided at all discount levels.
FCC's "Connect to Compete" Program
Last month, in response to a challenge issued last May, the FCC announced "Connect to Compete." This program has already enlisted the support of numerous businesses and non-profits to provide free and/or greatly reduced-price products and services, largely to low-income families, to overcome financial and literacy barriers to broadband Internet adoption nationwide — all without tapping U.S. Treasury or Universal Service Fund resources.
Last week, as a key part of this initiative, the FCC announced major new low-cost broadband and computer offerings for students and their families eligible for the National School Lunch Program. The offerings are to be launched next spring and be expanded nationwide the following fall. The basic components of the offerings are described below, and are available in more detail in an FCC factsheet.
Broadband Internet Access:
The larger members of the National Cable & Telecommunications Association ("NCTA") have agreed to provide broadband cable service of at least 1 Mbps to eligible families for two years at a monthly rate of $9.95 (plus taxes). The FCC estimates that this represents an average discount of 70% and will be available to over 86% of the population in all 50 states.
To be eligible for this service, a family must meet the following criteria:
- Have at least one student enrolled — not just eligible — in the National School Lunch Program.
- Not be a current broadband subscriber.
- Not have an overdue bill (e.g., for cable television) or unreturned equipment from the participating service provider.
Note that these broadband pricing and conditions parallel those that Comcast started offering earlier this year under a separate agreement with the FCC (see our newsletter of June 16, 2011).
Home Computers:
Redemtech, a technology refurbishment company, has committed to offering refurbished, but powerful, laptops to all NSLP-eligible (probably meaning enrolled) families at a price of $150 (plus tax, but including shipping). The laptops will come loaded with Windows 7 (Home Premium), Microsoft Office, parental control software, PC-based safety tutorials, and user guides.
Additionally, Microsoft has indicated that it will be introducing a series of high-quality education computers and software next year starting at $250. Morgan Stanley will be helping Connect to Compete to develop a microcredit program to help families afford the upfront cost of the computers.
E-Learning and E-Rate Implications:
From an e-learning and E-rate standpoint, two points are significant.
- One of the major impediments to broader school adoption of e-textbooks and other online resources has been the digital-divide concern that low-income families cannot afford broadband access and/or computers. This initiative significantly reduces the economic entry point for these families.
- Under current E-rate rules, home Internet services are not eligible. The program, however, may have side E-rate benefits for some applicants. Anecdotal indications from schools served by Comcast are that the attractiveness of the program for low-income families leads to higher NSLP participation which, in turn, may raise E-rate discount rates.
E-Rate Updates and Reminders
Limited FCC Approval of Gift-Rule Appeals:
The FCC released a decision last week (DA 11-1854) approving three appeals from applicants who had been found by USAC to have violated the FCC's competitive bidding rules. The alleged violations all involved relatively small gifts of meals, gift cards, or travel expenses by one service provider, Trillion Partners, over a period of several years. In approving these appeals, the FCC found that: "In each instance, the gifts were minimal, they were provided over the course of several years, or they were given to employees with no authority to bind the district to a contract or who had no ability to influence the competitive bidding decision."
Given applicant and service provider angst over the FCC's new gift rules, it is tempting to view this decision with relief. We believe this would be an overly optimistic reaction, noting:
- A number of other Trillion-related appeals are still pending with the FCC. If the FCC had been inclined to approve these appeals on the same basis, we would have expected to see them as a part of the same decision.
- The FCC's discussion in this appeal concludes with the warning: "We emphasize, however, our analysis of these instances would be different under our current rules, because the Commission established clear guidelines on permissible gifts in the Schools and Libraries Sixth Report and Order, which became effective on January 3, 2011."
Bulk Invoice Deadline Extension Requests:
Applicants or service providers who missed the regular invoice filing deadline for a number of FRNs (October 28, 2011, for FY 2010 recurring services) can file a bulk extension request by generating an Excel spreadsheet using the SLD's online Submit a Question process. The suggested spreadsheet columns should be:
- Form 471 Application Number
- Funding Request Number (FRN)
- Service provider name
- Service Provider Identification Number (SPIN)
- USAC-assigned Invoice Number (for previously denied invoices)
- Amount of invoice
- Reason for extension request
SLD Fall Training Status:
The SLD has completed its fall training schedule. The agenda and slides for the SLD's 2011 training are available online.
USAC training videos are also available online. Two short ones on Form 470 Filing and Dark Fiber are on the USAC Web site. Longer presentations on E-Rate Topics (and other Universal Service Fund programs) are available on YouTube.
Applicants seeking other E-rate training opportunities should check for state-sponsored E-rate workshops. Contact information for State E-rate Coordinators may be found on the State Information pages of the E-Rate Central Web site. Other sources of basic E-rate training include the two Webinars conducted by E-Rate Central earlier this year which are available online at http://www.webjunction.org/techplan-erate.
Schools and Libraries News Brief dated November 11 – Technology Plans
Last week's SLD News Brief for November 11, 2011, reviews the requirements for technology plans (now required only for Priority 2 services). The basic requirements discussed are that the plans must:
- Be created (written) before the Form 470 is filed.
- Cover all 12 months of the funding year for which you are applying.
- Contain all required elements.
- Be approved by a USAC-certified Technology Plan Approver (TPA) before the Form 486 is filed or services start, whichever is earlier.
- Not cover more than three years.
Additional information on technology plans was provided in our newsletter of November 7, 2011.