A r c h i v e d I n f o r m a t i o n
E-Rate--Questions and Answers
When the Telecommunications Act of 1996 was signed into law, for the first time schools and libraries became eligible for Universal Service support. An explicit goal of the Act is to ensure that schools and libraries have affordable access to advanced telecommunications. On May 7, 1997, the Federal Communications Commission (FCC) issued a unanimous ruling for implementing Universal Service. Below are some answers to commonly asked questions regarding the FCC's order on universal service for schools and libraries. What is the "E-Rate"?
The E-Rate is the discount that schools and libraries will receive for the acquisition of telecommunication services. Eligible schools and libraries can receive discounts of 20-90 percent on telecommunication services, Internet access and internal connections necessary for deploying technology into the classroom.
Who's Eligible?
- Schools: All elementary and secondary schools as defined within the Elementary and Secondary Education Act are covered. Private schools are eligible as long as they are not operated as a for-profit business and do not have an endowment exceeding $50 million. Individual schools, school districts and consortia are eligible applicants.
- Libraries: Public libraries as defined in the Library Services and Technology Act (LSTA) are also eligible. This includes individual library branches, library facilities, library systems and library consortia.
What Services are Available?
- Telecommunication Services: Schools and libraries are given maximum flexibility to choose among different types of commercially available telecommunication services for both voice and data. Examples include: regular telephone lines for teachers to receive phone calls in the classroom, pagers for security officials, high bandwidth telecommunication services, satellite delivery for distance learning, and coaxial cable.
- Internet Access: Services for accessing the Internet are eligible for discounts. For example, E-mail and access to the World Wide Web are subject to discounts. Content, such as a paid subscription service, is not covered.
- Internal Connections--Bringing the Technology into the Learning Environment: Basic installation and maintenance of a network are eligible for discounts. Examples of eligible technologies necessary for establishing a network include: routers, hubs, network file servers, wireless Local Area Networks and software needed for operation of file servers. Personal computers used solely as switches or fileservers are eligible. However, personal computers for teachers and students are not covered.
What's not Covered?
Computers for teachers or students, fax machines, modems, software, professional development, and asbestos removal. Resale of discounted services is prohibited.
How Much Money is Available in Discounts?
Up to $2.25 billion per year will be available from the Universal Service Fund. The Fund for schools and libraries will be established on January 1, 1998.
What are the Discounts?
Discounts range from 20-90 percent and are based on economic disadvantage and geographic location.
How Are the Discounts Determined?
The level of discounts for schools and libraries is based upon the level of eligibility in the federal free and reduced lunch program. Libraries will use the school lunch eligibility percentage from their local school districts.
| SCHOOLS AND LIBRARIES DISCOUNT MATRIX |
DISCOUNT LEVEL |
| HOW DISADVANTAGED? |
urban discount (%) |
rural discount (%) |
| % of students eligible for national school lunch program |
(estimated % of US schools in category) |
| < 1 |
3 |
20 |
25 |
| 1-19 |
31 |
40 |
50 |
| 20-34 |
19 |
50 |
60 |
| 35-49 |
15 |
60 |
70 |
| 50-74 |
16 |
80 |
80 |
| 75-100 |
16 |
90 |
90 |
What is the Universal Service Fund and How is it Administered?
The Universal Service Fund for schools and libraries will be established on January 1, 1998. Revenues of telecommunications service providers will be assessed to determine their contribution into the Fund. The Fund Administrator on an interim basis is the National Exchange Carrier Association (NECA). NECA is an independent entity that currently administers the Universal Service Fund.
The Fund Administrator will be responsible for collecting contributions into the Fund from telecommunications service providers and reimbursing providers who have delivered service(s) to schools and/or libraries. The Fund Administrator will also be responsible for accepting applications for discounts that have been pre-approved and posting requests for services on a electronic clearinghouse that will be available to all competitors for bidding on proposals.
Review and Approval of Applications
Applications will be reviewed for two purposes; first, for completeness, and second, for appropriateness.
- Completeness. The Fund Administrator or a sub-contractor to the Administrator will be responsible for collecting applications and ensuring that they have been completed by the applicant.
- Review and Approval. In cases when a State Education Agency (SEA) cannot review and/or approve a technology plan, other entities will be made available to provide review and approval. For example, a private school may need a different review and approval body than a public school district. The U.S. Department of Education, in partnership with many national education associations, is working to provide advice to the FCC on alternative review mechanisms.
Where to Apply
Once the implementation issues have been finalized, applications will be distributed. Approved technology plans, along with the application forms, should be submitted to the Fund Administrator who will be responsible for collecting and posting requests for services on an electronic clearinghouse.
Next Steps in Getting Ready to Apply:
Although the Fund will not be available until January 1, 1998, there are several things you should begin to do now to get ready:
- Plan for technology, if you have not done so already, in light of the FCC ruling and continue to develop technology plans.
- Conduct a needs assessments--undertake an inventory of technology and capacity in your schools and libraries.
- Seek advice from experts, talk with other states and/or school districts, and build community support.
- Budget for implementation. Account for cost savings and outlays that will occur as a result of the E-Rate.
- Collect information on eligibility for the federal free and reduced priced lunch program in your schools.
- Check with your State Education Agency.
Where to Learn More:
There are several sites on the Internet that provide quality information on education and the E-Rate.
-###-
[ Return to Technology Page ] 
[ ED Homepage ]
Last Updated -- June 27, 1997, (lyp)