A r c h i v e d  I n f o r m a t i o n

Questions and Answers on Implementation of the Universal Service Program for Schools and Libraries

Q1. When will the forms be available?

We are finalizing the applications, which will be distributed -- with instructions -- to all schools and libraries within the next several weeks. In the meantime, gather together the data suggested in the enclosed "Nine Steps You Can Take Now to Prepare for the Schools and Libraries Universal Service Program."

Q2. What is the application process?

All eligible applicants must submit three separate forms to SLC in sequential order to participate in the program. The first form describes the services that an applicant intends to purchase (Form 470: the request for services is posted to the SLC website for 28 days). The second form details the services for which a contract has been signed (Form 471: filed anytime after the 28 day web posting period for Form 470, and only after a contract has been signed). The third form confirms that contracted services have begun and that your technology plan has been approved (Form 486).

Q3. How will the forms be distributed?

SLC will mail applications and instructions to every school district, library, and independent school. They will also be posted on its website at http://www.slcfund.org (This website is expected to be available in January). (Ed NOTE: Now located at http://www.sl.universalservice.org/) In addition, national school and library organizations will distribute the applications to their members and/or post them on their institutional websites.

Q4. How quickly do the forms need to be returned to SLC?

Applications will be accepted the day the website is operational, but there is no reason to rush to return them at that time. It is much more important to fill them out properly. The Federal Communications Commission (FCC) released an Order on October 14, 1997, establishing that there would be an initial filing window of time, during which all applications will be treated as if they arrived on the same day. The FCC directed the SLC to determine the length of the window. In a Public Notice released on November 6, 1997, the FCC announced that the SLC had decided on a 75 day window. The Window will begin on the date that the SLC website is up and running. Both Forms 470 and 471 must be received during that "window" time period. All applications received during this 75 day window will be treated as if they arrived on the same day. After the "window" closes, subsequent applications will still be accepted, but will be processed on a first-come, first-served basis.

Q5. Are existing contracts subject to the 75 day "window"?

Yes. Although existing contracts do not need to be posted on the SLC website for 28 days, applications for services covered by existing contracts are otherwise subject to the 75 day "window" and will be treated the same as all other applications received during that time. That way, no school or library applicant will have an unfair advantage.

Q6. Are all existing contracts eligible for discounts?

Yes. All contracts for eligible services signed before the SLC website is up and running are eligible for discounts, but not all such contracts will be eligible to receive discounts for their full term without meeting the FCC?s competitive bidding requirements. As of now, FCC rules provide that contracts signed before the State-Federal Joint Board issued its Universal Service Recommended Decision on November 8, 1996 are eligible for discounts for their entire term even though those contracts have not met the FCC competitive bidding requirements. Contracts signed after that date, and before the Schools and Libraries Corporation Website is operational, are only eligible for discounts until December 31,1998 after which time further services are subject to the FCC?s competitive bidding requirements. The FCC is currently reconsidering its treatment of those contracts signed after November 8, 1996 and before the opening of the website. A decision is expected soon as part of a formal Reconsideration Order. It is important to remember that regardless of when a contract is signed, discounts must be applied for on an annual basis.

Q7. When will schools and libraries be notified that their contracts have been accepted for discounts?

The SLC will begin approving contracts and notifying applicants shortly after 75 day "window" has closed.

Q8. Will discounts be retroactive?

Yes. Discounts will be retroactive back to the start date of the contract for new contracts or January 1, 1998 for qualified existing contracts, whichever comes later. Until the SLC reviews the contract, and your application, you cannot assume that everything you have contracted for will be eligible for discounts. In addition, there are a number of issues still pending before the FCC, including the treatment of some existing contracts (see Q6. above), state master contracts and the calculation of aggregated discounts, that may affect aspects of your contract. These issues are expected to be resolved in the Reconsideration Order. But, you may not have all your questions answered before you submit your application. In general, you should exercise caution in signing a contract, and we strongly recommend that you include appropriate conditions and contingencies in any contract you do sign.

Q9. Where can I go for further help?

The SLC plans to have a toll-free number and on-line services to handle your questions, which will be operational as soon as possible and before the opening of the website. Please check the Federal Communications Commission website (http://www.fcc.gov/) and the National Exchange Carrier Association website (http://www.neca.org) for updates on the program and the Client Service Support System. Other resources include your State Education and Library Agencies. In addition, a number of national organizations such as the American Library Association (http://www.ala.org) and the Education and Libraries Network Coalition (http://www.edlinc.org) are providing information and assistance in planning for the program.

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