What’s New with E-Rate?
December 2010
Contact information
• Pam Jacobs
• 515-975-0071
• pam.jacobs@iowa.gov
A copy of the powerpoint is
available at
http://www.iptv.org/iowa_database/
erate/
What’s changed?
1. Tech plans no longer required for priority 1
2. New E-rate forms (470 and 471) with Item 21
required to be completed by 471 deadline
3. New “gift” rules
4. SPIN change restrictions
5. Leased dark fiber is now E-rate eligible
6. E-rate funding “cap” now adjusted for inflation
7. After-hours computer lab/Internet use now
allowed for community members
Tech plans no longer required
for priority 1
• Tech plans are only needed if filing for
priority 2 services. THIS IS NEW!
(previously everyone had to do tech
plans).
• If your district/school/library has a
free/reduced lunch eligibility of 40% or
more, then I recommend doing a tech plan
(possibility of getting priority 2 funded)
Discount Matrix
Percent of
Eligible Students
Less than 1%
1% - 19%
20% - 34%
35% - 49%
50% -74%
75% -100%
Urban
Rural
20%
40%
50%
60%
80%
90%
25%
50%
60%
70%
80%
90%
New E-rate 470 form
• The new version of the Form 470 is much
simpler than the current version.
• Until the new version of the Form 470
becomes available in January, applicants
may use the current version.
– Caution: If using the old version of Form 470,
do NOT check box 20c! (you still must
indicate that you have a tech plan)
New E-rate 471 Form
• Unlike the new Form 470, the new Form 471 is
not simpler.
– The revised Block 2, requiring information on the
impact of services ordered, asks specifically for
bandwidth data on buildings served.
– Block 4 includes two additional columns to capture
information on entity types.
• Most importantly, the new version specifies that
Item 21 attachments “must be filed before the
close of the filing window.”
Form 471 block 4 data
Question: What about preschool students
who attend private preschools? Should
we “count” them for E-rate?
Answer: Only count preschool students who
are in attendance in your buildings and for
whom you have accurate free/reduced
lunch data.
Problem with preschool data
School Name
Free/reduced
lunch
Enrollment
% eligible
King’s Kid
Preschool
0
4
0%
Jack and Jill
Preschool
0
6
0%
Kids’ First
Academy
0
5
0%
Creative
Beginnings
0
7
0%
Gift Rules
• FCC limits “gift” amount to $20 per event
for a total of $50 per year from any single
vendor.
• Iowa Law is generally more restrictive than
new FCC regulations (Iowa law is $2.99
per event).
• Vendors may donate to school foundations
(charitable donations) so long as this
doesn’t interfere with competitive bidding
SPIN changes
• To ensure competitive bidding processes
are honored, FCC will limit reasons for
SPIN changes (changing service providers
in the middle of a funding year)
• SPIN changes will be allowed only for
limited reasons (e.g. service provider
cannot provide service).
• SPIN changes will not be allowed just
because you can get a better price
Five categories of service
• Five categories of service
– Priority 1 (funded first)
• Telecommunications Services
• Telecommunications NEW!
• Internet Access
– Priority 2 (starts with neediest applicants)
• Internal Connections
• Basic Maintenance of Internal Connections
Leased dark fiber now eligible
• Allows leasing of dark fiber (unlit) from any
provider (e.g. municipal utility)
• Maintenance of dark fiber by the provider
is E-rate eligible too
• Applicant must then purchase the
equipment to “light” the fiber
• Does not permit E-rate discounts for
applicants that want to
purchase/trench/own their own fiber links
Eligible Services:
Telecommunications (priority 1):
NEW CATEGORY
Leased fiber or dark fiber (i.e. fiber is
“lit” by the provider or is “lit” by the
applicant)
Apply for this on form 470 under 2
categories: telecommunications
services and Internet
Eligible Services: Maintenance of
internal connections (priority 2)
• Rules are changing about SMARTnet-type
billing (must bill for actual hours not a service
contract amount)
• Stay tuned for more clarity from FCC about
SMARTnet
Where can we see the eligible
services list?
Answer: Eligible services list is at
http://www.usac.org/_res/documents/
sl/pdf/ESL_archive/EligibleServicesLi
st_110910.pdf
E-rate Cap
• Current E-rate “cap” is $2.25 billion
annually
• New rules adjust this cap for inflation (e.g
for funding year 2010 it will be
approximately $2.27 billion)
• Impact for Iowa? Perhaps a few more
applicants will have priority 2 successfully
funded
After hours use of Internet in
computer labs
• Allows schools and districts to provide after hours
access by public to E-rate funded Internet access in
computer labs
• Rule change affects schools and districts (libraries
already allowed public use of Internet!)
• Schools and districts are not required to provide access
(voluntary)
• May charge for lights, heat, janitor but not for Internet
access
• Schools/districts may not increase E-rate funded Internet
solely for public use
Other items
• Do you have school buildings closing next
year? Cost allocation issue……
• Do you have school buildings which have
students now but will be used as noninstructional facilities next year?
• Do you have new buildings opening?
Questions?
• Other issues????
Upcoming sessions
January:
January:
Filing new online form 470
Filing new online form 471
Watch listserv for details!
Resources to Remember
• SLD web site: www.universalservice.org/sl/
• E-rate Central: www.e-ratecentral.com
• Iowa E-rate:
www.iptv.org/iowa_database/erate
• SLD Client Service Bureau: 888-203-8100
• pam.jacobs@iowa.gov: 515-975-0071