3 of 19

New E-Rate rules

Relief from cost allocation

Allows limited Internet use by otherwise ineligible entities in a school building (e.g. daycare) without cost allocation
“Safe harbor:” If 90% of Internet is used for eligible purposes, the remaining ineligible use does not require cost allocation

4 of 19

New E-Rate rules

Relief from Cabling Cost Allocation
Cabling primarily used for distributing broadband does not require cost allocation even when ineligible equipment such as security cameras may be attached to the network
The caution is that if the cabling is used exclusively for ineligible items such as VoIP or security, the cabling is ineligible
Request has been made that this should also apply to switches (i.e. ineligible items plugged into a switch), but no action has been taken by the FCC on this yet

5 of 19

New E-Rate rules

Relief from NIF Shared Equipment Cost Allocation
C2 equipment that is shared with a NIF does not require cost allocation
C2 equipment used exclusively by a NIF (e.g. wireless access points) is still not eligible

6 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals: (Comments due September 25 with reply comments due October 23)

Equal treatment for software/licenses whether determined to be basic maintenance (BMIC)versus internal connections (IC)
No denial if software/licenses are not listed as BMIC on form 470 and are determined to be BMIC
BMIC licenses may be paid out in year 1

7 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Transition of Services
(This is when an applicant is either changing ISP during the funding year and/or anticipating an increase in bandwidth)
Should there be an exception to the service substitution policy and allow for increases to pre-discount costs for transition of services?

8 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Duplicate Services –when can applicants purchase the same service from two different vendors in the same procurement?

As long as the price for both services is limited to the lowest cost option, this should be permissible?
Should price be the sole factor when selecting two vendors for the same service during the same procurement?
Should applicants have to show the need for the services and that the services are not failover or redundant?

9 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Should wiring between different schools located on the same campus be defined as internal connections?

(Currently there is a convoluted definition of when a connection between 2 schools on the same campus is C1 versus C2)

10 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Should there be a competitive bidding exemption for libraries and possibly schools with annual E-Rate requests of $10,000 or less

11 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Should mid-year bandwidth increases be permitted as a competitive bidding exemption?
Form 470 “Cardinal Change:” What defines a change that would require a new form 470 (and restart the 28-day clock)

12 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Should spam bids and bids received after 28 day waiting period have to be reviewed even if the applicant does not state on the form 470 that bids submitted after 28 days won’t be accepted
How should product demonstrations be handled?

13 of 19

FCC Further Notice of Proposed Rulemaking

FCC requests comments and information on the following questions and proposals:

Should board minutes approving a contract offer be evidence of an applicant’s acceptance, demonstrating a legally binding agreement? Are there other examples where documentation should be accepted as evidence of a legally binding agreement?
As suggested by ALA, should the FCC remove the legally binding agreement requirement all together, and allow applicants to rely on a price quotation for submitting their E-Rate applications?
Should the 3 subcategories in the Category 2 section of the form 470 be eliminated?

14 of 19

FCC Chairwoman Rosenworcel’s intention to propose “Learn Without Limits”�

On June 26 at the annual ALA conference, FCC Chairwoman announced that she is seeking support from her fellow FCC commissioners to allow E-Rate to fund:

WiFi on school buses
Hotspots that may be checked out by public libraries (and school libraries) to patrons and students

15 of 19

FCC Chairwoman Rosenworcel’s intention to propose “Learn Without Limits”�

On July 12 at the annual conference of AASA and ASBO, FCC Chairwoman announced that she is seeking support from her fellow FCC commissioners to establish a pilot:

3-year $200 million cybersecurity pilot
Not part of E-Rate but would use USF funds
If demand exceeds $200 million, would likely fund highest discount applicants first

16 of 19

FCC Chairwoman Rosenworcel’s intention to propose “Learn Without Limits”�

When might the Chairwoman’s proposals be implemented?

No details about the proposals yet
Likely waiting on the 5^th commissioner to be confirmed by Senate (on Senate calendar TODAY)
Would likely require a formal Notice of Proposed Rulemaking
In other words, this is not a done deal

17 of 19

E-Rate upcoming reminders�

Are your CIPA documents up to date? (not a new requirement but do you have these?)

Evidence of filter in place
Board notice of public hearing about CIPA policies
Board public hearing on CIPA policies

18 of 19

E-Rate upcoming reminders�

Requirement to update enrollment and NSLP/CEP data (after fall certified enrollment is complete)

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Afterword�

No further update on the planned E-Rate bidding portal

New BEAR form? No firm date yet on the transition to the new form