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June 19, 2023

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.

E-Rate for FY 2023:

USAC issued Wave 8 for FY 2023 on Thursday, June 15th, for $57.9 million.  Total funding is now $1.42 billion.  At this point, USAC has already funded 79.7% of the originally submitted applications representing 47.7% of the dollars requested.

ECF for 2021-2023:

Wave 27 for Window 3 was issued on Wednesday, June 14th, for $21.1 million.  Total commitments for all three ECF windows are $6.72 billion.  USAC has funded approximately 89% of the ECF applications representing 69% of the requested funding.

Window 3 applications are being funded down to the 60% urban band but could go lower if more funding becomes available.  We encourage all applicants that have been funded beyond their actual needs to file Post-Commitment Requests (“PCRs”) to reduce their funding commitments and free up dollars for other needy ECF applicants.

Upcoming Dates:

June 23     The Form 486 deadline for FY 2022 Wave 45.  More generally, the Form 486 deadline is 120 days from the FCDL date or from the service start date (typically July 1st), whichever is later.  Upcoming Form 486 deadlines are:
Wave 46                06/30/2023
Wave 47                07/07/2023
Wave 48                07/14/2023
Wave 49                07/21/2023
Wave 50                07/28/2023

Form 486s for FY 2023, for services to start in July 2023, can be filed now by checking the early filing certification (the first of the Form 486 certifications).  The first Form 486 deadline for FY 2023, for FCDLs issued on or before July 1st, normally October 29th (which is a Sunday this year), will be Monday, October 30, 2023.

June 23 USAC warns all applicants working on early Form 470s to begin procurement cycles for FY 2024 to certify those Forms by this date.  Thereafter, but prior to July 1st, USAC will be updating the Form 470 specifically for FY 2024 and will be deleting all earlier, but uncertified, Form 470s.
June 27 USAC will host a Beginning E-Rate Services Webinar (register).
June 30 The last day to:
  • Receive all recurring services for FY 2022 (including BMIC maintenance services, even if filed as one-time charges).
  • Light fiber (or request a service delivery deadline extension) for special construction projects from FY 2022.
  • Enroll in (or renew enrollment if needed) for the Community Eligibility Provision (“CEP”) program for the 2023-2024 school year.

Funds For Learning’s 13th Annual E-Rate Survey:

For more than a decade, Funds For Learning (“FFL”) has been conducting a nationwide survey asking schools and libraries to contribute their opinions and experiences regarding the E-rate program.  These surveys have become an increasingly important source of information for Congress, the FCC, and USAC to help them evaluate the E-rate program.  E-Rate Central believes that FFL’s survey is an extremely valuable vehicle, particularly for policymakers, to understand the needs of the E-rate community.  For a summary of the 2022 survey results, see our newsletter of October 31, 2022. We urge you to participate.

Here’s what you need to know:

  • The survey is available at https://www.surveymonkey.com/r/23erate.    It should take only 10-15 minutes to complete.
  • Survey results are completely confidential.  Only aggregate data is reported.
  • Funds For Learning, which like E-Rate Central is an E-rate consultant, does not use survey responses as a marketing tool.  Were we not confident in the integrity of FFL’s survey process, we would not be encouraging you to participate.

Last year, responses were received from nearly 10% of the E-rate applicant base.  Given the importance of this survey to the entire E-rate community — applicants, service providers, administrators, and particularly policymakers — we would like to see even greater participation this year.

USF Quarterly Contribution Factor Remains Under 30%:

The FCC announced that the Proposed Third Quarter 2023 Universal Service Contribution Factor will be 29.2% (see DA 23-507) — the second quarter in a row just under 30%.

FCC Proposed Third Quarter 2023 Universal Service Contribution Factor will be 29.2%

As we have discussed in the past, and as shown in the graph below, the underlying problem is not that USF expenses (i.e., the revenue requirements) are rising but that interstate telecommunications revenues (i.e., the contribution base) have declined dramatically over the last decade and a half.

Quarterly USF funding vs contribution base

At 29%, the quarterly contribution factor is still too high but is, at least, slightly below the increasing trend line for the past two decades.  We continue to hope that the contribution factor remain below the 30% level.  Should this happen, it may give the FCC a bit more confidence in approving additional E-rate funding for cybersecurity products and services.

USAC’s E-Rate News Brief Dated June 15, 2023, covers the following topics:

  • Form 470 updates and guidance
    • Complete and certify any in-process FY 2023 Form 470s by June 23
    •  FY 2024 Form 470 to be deployed July 1
  • June 30 deadline to complete special construction required to light or use fiber
  • Filing the FY 2023 Form 486 early
  • Getting ready for invoicing