Edmond, Okla. (Sept. 24, 2010) – In an effort to make broadband connectivity an affordable and sustainable option for schools and libraries, the Federal Communications Commission (FCC) released the long anticipated National Broadband Orders on Sept. 23. The Orders laid out the FCC’s plan to promote affordable broadband access. While the plan affects a number of different government programs, some of its most sweeping changes involve the current E-rate program. The FCC aims to bolster the program to encourage broadband connectivity for schools and the surrounding communities by increasing flexibility in selecting broadband solutions for schools and libraries.

The most significant announcement for E-rate participants is that the funding cap will be indexed to general economy inflation in an effort to stifle depreciation and increase the number of applicants vying for Priority 2 funding for internal connections projects. Commissioner McDowell dissented on this point, arguing that the barometer should have been based on the telecommunications inflation index, as the rate has historically remained level. Nonetheless, the Commission adopted the increase of the funding cap that will give applicants more spending power with present-day dollars.

This aspect of the Orders was received favorably by members of the E-rate community. “E-rate funds support the technologies that improve the lives of students, educators and library patrons,” said John Harrington, CEO of Funds For Learning. “We believe that more students will receive the benefit of E-rate funded services because the program is now indexed to inflation.”

The Commission also is allowing applicants to open up E-rate funded services to the community for after-hour use, so long as it does not interfere with educational purposes. This will allow community members to have access to those services at school and library sites in their local communities. This is positive news for residents without access to services such as the Internet, and furthers the goal of the Obama administration to provide broadband access to all Americans.

“We agree with the FCC’s principles of increased flexibility,” said Harrington. “Entire communities are impacted by the services that this fund helps make available.”

Along with tying the E-rate funding cap to general inflation, and opening up E-rate services for community use, the Orders mandate other updates to the E-rate program. These include: adding “dark fiber” to the eligible services list, launching a pilot program for off-campus wireless connectivity for students, and codifying competitive bidding requirements and clarifying ethics obligations for applicants and service providers.

In an effort to keep E-rate stakeholders abreast of the upcoming changes to the E-rate program, Funds For Learning has created a centralized repository on its website for news and updates on the National Broadband Orders: www.fundsforlearning.com/fcc-e-rate-broadband-Order.

“It is important to keep schools and libraries informed of any changes to the E-rate program, but it is especially important with changes of this magnitude,” said Cathy Cruzan, President of Funds For Learning. “We have developed a distinct site that will serve as a central source for anyone seeking news and explanations of the recent Orders.”

More Information

For the most up-to-date information on the National Broadband Orders and the implications for the E-rate program, visit www.fundsforlearning.com.

About Funds For Learning

Funds For Learning, LLC, is an E-rate compliance firm specializing in guiding E-rate applicants and service providers through the complex and ever-changing E-rate regulatory process. With more than 10 years of experience in providing professional advice and assistance relating to the E-rate program, Funds For Learning exists to provide high-quality solutions for the needs of E-rate stakeholders. The company was established in 1997 and is headquartered in Edmond, Okla. For more information www.fundsforlearning.com, or phone 405-341-4140.

Contacts

Funds For Learning, LLC
Cathy Cruzan
405-471-0900
ccruzan at fundsforlearning dot com
www.fundsforlearning.com

C. Blohm & Associates, Inc.
Emily Embury
608-839-9800
emily at cblohm dot com
www.cblohm.com

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