Funding Status
The FCC cleared the way for the release of the first funding wave for FY 2011 by approving USAC's PIA review procedures. The FCC's letter to USAC, however, made the approval contingent upon "substantive edits" (not publicly disclosed). This could cause a delay, hopefully small, while USAC reexamines applications that had already been reviewed and otherwise were ready to be funded. Our current expectation is that Wave 1 will be released within the next week or two.
Wave 53 for FY 2010 will be released on Tuesday, June 14th. Cumulative funding for FY 2010 is currently $2.53 billion. Priority 2 funding is still being awarded at 81% and above, and denied at 79% and below. The status of Priority 2 funding at 80% is pending an FCC decision.
Wave 87 for FY 2009 will be released on Wednesday, June 15th. Cumulative funding for FY 2009 is currently $2.78 billion.
E-Rate Updates and Reminders
Pre-July Applicant Invoicing for FY 2011 Services:
Applicants with extra money available in their 2010-2011 budgets may request their vendors to invoice them for FY 2011 services prior to July 1, 2011. But the following two points should be noted:
- Any early invoice should clearly show that the charges are for services to be received on or after July 1, 2011. If not, USAC will assume the invoice is for FY 2010 services, not covered by FY 2011 funding.
- USAC will not pay BEAR or SPI invoices until services are actually received during FY 2011.
Update on Justice Department E-Rate Investigations:
The U.S. Justice Department's latest E-rate related press release reports on the recent guilty plea by the former owner of two Illinois technology companies in a case involving a conspiracy to provide bribes and kickbacks at certain schools in Arkansas, Illinois, and Louisiana. They also indicate that a co-conspirator in the case was just sentenced to a year in prison.
More broadly, the releases summarized the extent of the Justice Department's E-rate investigations to date, noting:
As a result of the Antitrust Division's investigation into fraud and anticompetitive conduct in the E-Rate program, including today's plea, a total of seven companies and 22 individuals have pleaded guilty, been convicted at trial or entered civil settlements. Those companies and individuals have been sentenced to pay criminal fines and restitution totaling more than $40 million. Fifteen individuals have been sentenced to serve jail time.
Comcast Broadband Opportunity Program:
One of the practical limitations of the E-rate program is that it was designed to bring Internet into school classrooms, not to support home or other off-campus access by students. With the exception of a small $10 million FY 2011 pilot wireless program, E-rate funding falls far short of being able to provide discounted any time/everywhere student Internet access. K-12 education is clearly moving in this direction, but many are concerned about affordable access by lower-income families to broadband Internet services and devices.
Although not E-rate eligible, Comcast recently announced the following:
Comcast Internet Essentials Takes on the Digital Divide
Introduced last month as the Comcast Broadband Opportunity Program, Internet Essentials is one of the first programs of its kind to directly confront the digital divide by providing affordable access to quality home Internet service, a discount-priced computer and training to eligible families. Internet Essentials will be available during the 2011 "Back to School" season.
For $9.95 per month, participating families receive:
- XFINITY Internet Economy Service (currently up to 1.5 Mbps download)
- Option to purchase a computer for under $150
- Access to online, in print and classroom digital literacy training
- There are no modem rental charges, no deposit or activation fees – prices subject to applicable tax
- As XFINITY Internet customers, participants gain other benefits at no extra charge, including NortonTM Security Suite, a $160 value
A household is eligible to participate in Internet Essentials if it:
- Is located where Comcast offers Internet service
- Has at least one child receiving free school lunches through the National School Lunch Program
- Has not subscribed to Comcast Internet service within the last 90 days, and
- Does not have an overdue Comcast bill or unreturned equipment
FCC Decision on Late-Filed Appeals:
The FCC issued an Order (DA 11-1018) denying, as untimely, three applicant appeals. Technically under FCC rules, an FCC petition for reconsideration of a USAC or FCC decision must be filed within 30 days of public notice of the action. As a practical matter, however, the FCC has traditionally waived the appeal deadline for USAC actions to provide a degree of leniency for applicants narrowly missing the deadline.
Last week's Order indicates that the FCC's tolerance for late-filed appeals of USAC decisions does not extend to petitions for reconsideration of FCC appeal decisions. In the situations covered by this Order, the appeals were filed 58 days or longer after the FCC bureau's original denials.
Schools and Libraries News Brief dated June 10 – Late-Certified Application Status
The SLD's News Brief for June 10, 2011, discusses the change in status for certain FY 2011 applications that had not been fully submitted and certified by the March 24th close of the filing window.
On April 27th, USAC sent reminder letters to applicants who had filed timely, but uncertified, applications for FY 2011. The letters gave those applicants 20 days to submit those certifications. USAC has now processed those late-filed certifications and has changed their application status from "Certified – Out of Window" to "Certified – In Window." Those applications are now valid and will be reviewed.
Any remaining applications — those that had not been submitted by the March 24th deadline and/or had not been certified by the extended certification deadline — will be treated as having been filed too late. Following a final check, USAC will issue out-of-window denial letters for these applications. The only possible relief for an applicant receiving an out-of-window letter will be an FCC appeal.