News of the Week

E-Rate for FY 2023:

USAC issued Wave 34 for FY 2023 on Thursday, December 14th, for $6.46 million.  Total funding is now $2.45 billion.  At this point, USAC has funded 96.7% of the originally submitted applications representing 86.3% of the dollars requested.

ECF for 2021-2023:

A small Wave 38 for Window 3 was also issued on Thursday, December 14th, for $458 thousand.  Total commitments for all three ECF windows are $6.45 billion. 

E-Rate for FY 2024:

The Form 471 filing window for FY 2024 opens on Wednesday, January 17th, at noon EST and will close at 11:59 p.m. EDT on Wednesday, March 27, 2024.  The EPC administrative window, which is currently open to allow applicants to update their entity profiles, will close on January 15th.  At that point, entity profiles will be locked for the duration of the application window.

Late Friday, the FCC released the FY 2024 Eligible Services List ("ESL") (DA 23-1171), a necessary step that will allow USAC to open the Form 471 application window as it has traditionally done in mid-January.  More importantly this year, the ESL establishes the basic eligibility rules for school bus Wi-Fi including the following:

• Both Wi-Fi equipment (e.g., antennas, routers, modems, and associated installation charges), and wireless internet services will be considered Category 1.
  • By not classifying the equipment as Category 2, applicants will not be required to file separate applications for Category 1 services and Category 2 equipment.  It also means that applicants having used most of their Category 2 budgets will not be precluded from filing for bus Wi-Fi.
  • Rural schools can enter into contracts with multiple service providers on their buses to assure coverage over wide areas; urban schools are restricted to using only one provider per bus (but may use different providers on different buses).
  • Maintenance and operation services are deemed ineligible (although the FCC "may revise these eligibility determinations in a future funding year upon further review of the costs associated with these services and equipment").
• Eligibility applies to school-owned, leased, or contracted school buses.
  • "Services may be reimbursed for all twelve months of the funding year with no discount or premium during the summer months."  "However, applicants may not warehouse equipment or fail to turn on the service for student use during the twelve months."
  • "Occasionally used chartered buses (e.g., used for school field trips), municipal and city buses generally used for the transport of non-students, and other types of school-owned, leased, or contracted vehicles (e.g., vans and cars)" are not eligible.
• Applicants utilizing bus Wi-Fi will be expected to ensure that the service is used primarily for educational services consistent with E-rate rules. 
  • This means implementing "content and user network restrictions consistent with the restrictions that they place on their building-based broadband network, as described in their Acceptable Use Policies (AUPs) and any other policies that limit a school’s network access.
  • General community use "outside of permissible educational purposes" is prohibited and would require Wi-Fi connections to be disabled.
• Funding for Wi-Fi on school buses "remains subject to all existing E-Rate rules and requirements, including those related to competitive bidding, cost allocation, and discounting rules."

Instructions on the bus Wi-Fi bidding process and forms was left to USAC.  Initial filing guidance from USAC was provided on Saturday in the News Brief referenced below.  It included the following:

• File a Form 470 to seek competitive bids for either services only or services and equipment to provide Wi-Fi on school buses.
  • Select "Category 1 – Data Transmission and/or Internet Access" in the Service Requests section under Category(s) of Service.
  • In the Narrative section, indicate that the Applicant seeks bids for wireless school bus service and (if applicable) associated equipment to make the service functional to provide Wi-Fi.  Reference the associated "RFP" document for additional information."  You can insert additional text to this as needed for your situation.
  • To add a new service request, select the following EPC Guiding Statement in sequential order:

• • • I seek bids for internet access and/or data transmission service. 
    • I seek bids for internet access and data transmission service (provided over any combination of transmission medium, e.g., fiber-only networks, fiber/non-fiber hybrid networks, or non-fiber networks such as cable, DSL, copper, satellite, or microwave).
    • I seek bids for data plans or wireless adapters (Air Cards) for mobile devices for commercial wireless service for a school or library that does not have an existing broadband internal connections.

• Once the application window is open, and after waiting at least 28 days, file a Form 471.  USAC is currently working on updates to the Form 471 that will allow applications for Wireless School Bus Service.  USAC recommends that applicants:

• • Submit a separate Form 471 for Wireless School Bus Services.
  • Submit a separate funding request for each contract or vendor for these services.
  • Use "School Bus Wi-Fi" or similar name as the Form 471 nickname.
  • List all schools as recipients of service that will be served by the buses.
  • Clearly explain the number of buses on your request in the FRN Narrative.

USAC indicates that it will provide additional details on how to complete your FY 2024 Form 471 funding application in the next issue of its E-Rate News Brief.

Upcoming Dates:

USF Quarterly Contribution Factor Inches Higher:

The FCC announced (DA 23-1156) that the Proposed First Quarter 2024 Universal Service Contribution Factor will be 34.6% — just above the current quarter’s previous high of 34.5%.  This is not good news at a time that the FCC is planning to initiate a new USF-funded cybersecurity pilot program and to expand E-rate funding for school bus Wi-Fi and residential hotspots for students and library patrons.
                                         

The underlying problem, as we have long discussed, is not that USF expenses (i.e., the revenue requirements) are rising but that interstate telecommunications revenues (i.e., the contribution base) have fallen sharply over the last decade and a half.  The only real long-term solution, as summarized in our earlier comments to the Senate Universal Service Fund Working Group, would be to expand the contribution base with internet service and/or content provider revenues (see our newsletter of August 21st).
                                                          
   

New and Reappointed USAC Board Members:

The FCC announced the appointment or reappointment of six members of the USAC Board for three-year terms beginning January 1, 2024.  Most interestingly, from the perspective of schools and libraries, the appointments included:

• Mona L. Thompson, General Manager of the Cheyenne River Sioux Tribe Telephone Authority as the representative for Tribal communities.  The inclusion of a Tribal representative is a new position created last summer under the FCC’s Tribal Order (FCC 23‑56) (see our newsletter of July 24th).
• Joan H. Wade, Ed.D., Executive Director, Association of Educational Service Agencies as the representative for schools that are eligible to receive discounts pursuant to section 54.501 of the Commission’s rules (reappointment for a new term).
• Angela Siefer, Executive Director, National Digital Inclusion Alliance as the representative for low-income consumer.  Most notably, Ms. Siefer has been an avid proponent of the ACP and ECF programs.

In addition to announcing the release of the Eligible Services List for FY 2024 and outlining how to apply for Wi-Fi on buses, as summarized above. USAC’s E-Rate News Brief dated December 15 2023, announced that the Form 471 application filing window will open on Wednesday, January 17th at noon EST and will close on Wednesday, March 27th at 11:59 p.m. EDT.

The News Brief also discussed:

• Adjusting Category Two budgets during the EPC administrative window.
• Customer Service Center ("CSC") hours through the holidays.
• EPC invoicing tips.