With unanimous Commissioner support at last week’s open meeting, the FCC adopted a Report and Order (“R&O”) simplifying E-rate rules for Tribal libraries and, to a lesser extent, for other applicants. As summarized in the FCC’s news release, the Tribal updates will:
- Grant E-rate eligibility to Tribal College and University libraries that serve as public libraries in their communities.
- Increase the maximum Category Two discount rate to 90% and the funding floor to $55,000 for Tribal libraries.
- Adopt a formal definition of “Tribal” within the E-rate program to better identify Tribal applicants seeking E-rate funding.
- Add a Tribal community representative to the USAC Board of Directors.
- Direct USAC to provide increased outreach and training to Tribal applicants.
Providing relief for more than Tribal libraries alone the R&O would:
- Create an exemption to the competitive bidding requirements for all libraries — but not schools — seeking E-rate support for Category Two services that total a pre-discount price of $3,600 or less per library per funding year.
- Eliminate burdensome cost-allocation requirements for all applicants when:
- At least 90% of an applicant’s internet service is used for eligible purposes.
- A building’s internal cable network is not being used specifically for ineligible purposes (e.g., security cameras or dedicated voice services).
- Equipment is cost-effectively shared with NIFs.
The FCC also adopted an accompanying Further Notice of Proposed Rulemaking (“FNPRM”) to seek comment on an even broader range of program simplifications that would benefit all E-rate applicants (see the second half of the article in our newsletter of July 3rd).
The combined R&O and the FNPRM (FCC 23-56) will become effective 30 days after publication in the Federal Register. The initial comment period for the FNPRM will run for forty-five days after the Federal Register publication date with reply comments due thirty days later.
One disappointing aspect of the FCC’s open meeting discussion was that, although every Commissioner spoke positively about the R&O simplifications for Tribal libraries, there was nary a word concerning the accompanying FNPRM proposals seeking comments on broadly simplifying E-rate for all applicants. Chairwoman Rosenworcel missed a golden opportunity to do so when she recounted a visit to a rural Tribal library and noted:
What stayed with me from this visit, however, was a binder by the desk of the head librarian. It was bulky, chock filled with papers and it was labeled E-rate. The binder made clear what conversations alone did not. Tribal libraries like this one are working with so many constraints to figure out how to get broadband connections.
We have seen similar binders — fortunately now migrating to endless data files — in many E-rate applicant and consultant offices. Complexities and constraints are the hallmark of all things E-rate and we hope to see fully addressed in the FNPRM.