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To Washington Notes 
Index    January 1998
News of U.S. Educational Technology Policy and Legislation provided by the International Society for Technology in Education.
Compiled, written, and edited by Phil Ugelow, Leslie Harris, and Adeena Colbert.
Copyright ISTE, 1998.
If you use excerpts, credit ISTE.


Contents

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FCC Releases Fourth Order on Universal Service ---------------------------------------

On December 30th, the Federal Communications Commission released its Fourth Order on Reconsideration of its previous Universal service orders. In that order, the Commission addressed a number of important issues that needed to be resolved before the new school and library universal service program begins. The entire order can be downloaded at the FCC Web-site(fcc..gov). From the FCC homepage, go to the Common Carrier bureau and then to orders.The order number is fcc97420.

The order includes a number of important new interpretations and clarifications of the Universal Service Order that should be carefully reviewed before universal service applications are filed. Among other things, the order:

  • confirmed that independent schools and other eligible entities whose states are unable or unwilling to review technology plans may apply directly to the School and Library Corporation for review and certification. Forms 470 and 471 may be submitted by these entities before final approval of technology plans, but approval must be complete before discounts can be received (S 157 - 158).
  • held that State Telecommunication Networks that procure supported telecommunications and make them available to schools and libraries constitute consortia that will be permitted to secure discounts on such services on behalf of members. A state network itself does not qualify for discounts and are not eligible to receive direct reimbursement for discounts from the Universal Service Fund for Telecommunications Services (S 183-189). With respect to Internet Access and internal connections, state networks may choose to provide those services and receive direct reimbursement from the Universal Service Fund. Eligible schools and libraries will be required to seek competitive bids for all services before they can select a state telecommunication network as their provider of Internet service or internal connections, (S - 192).
  • found that the cost of purchasing Wide Area Networks will not be eligible for universal service discounts because WANs are neither a telecommunication service nor internal connections (S 193).
  • determined that the discount price of an eligible service should be based on the price offered to the purchasing school or library before any state universal service support is applied (S 194-198).
  • decided that the applicable discount rate for services that will only be used by an individual school within a school district or consortium should be that school's discount rate. Services that are shared (that is, "cannot without substantial difficulty" be identified with particular users or be allocated directly to particular entities) may use an average discount, but the school district or consortia must certify that each individual consortium member will receive a proportionate share of the shared services within each year in which the institution is used to calculate the aggregate discount rate (S 199-206).
  • limited eligibility for internal connections to the instructional buildings and those that are "essential to providing connections within instructional buildings." Discounts are not eligible for such connections in non- institutional buildings used by a school district unless those internal connections are "essential for the effective transport of information within instructional buildings." Internal connections (eligible for discounts) include connections between or among multiple instructional buildings on one campus, but not connections between instructional buildings located on different campuses (S 208-210).
  • redefined existing contract to include a contract of any duration signed on or before July 10, 1997. Existing contracts are exempt from competitive bid requirements for the life of the contract and are eligible for discounts for the entire term. Contracts signed after July 10, 1997 and before the date that the school and library corporation Web-site is operational will only be eligible for support provided through December 31, 1998. Service provided under a state master contract will qualify as an existing contract if the state master contract was signed before July 10, 1997. Schools and libraries that have existing contracts will be required to file applications for discounts each year. Approval of discount in one year does not guarantee support in subsequent years.(S 211) held that minor modifications to contracts that do not need to be rebid under state or local procurement processes do not need to be posted for competitive bids on the School and library Corporation Web-site. Modifications that must be rebid under state and local law must comply with the universal service bid process. If state or local law is inapplicable, the order adopts a "cardinal change doctrine" which looks at a number of factors to determine whether the modified work is "essentially the same as that for which the parties contracted."(S 223-229) clarifies that eligible schools and libraries can purchase services from a master contract negotiated by a third party provided that : 1) the master contract has complied with the universal service competitive bid requiremen; or 2) the master contract qualifies as an existing contract.;or 3) the eligible entity first complies with the universal service bid requirements before choosing to purchase from the master contract.(S 230)


SLC Issues Tech Planning Procedures Plus User FAQs ---------------------------------------

Policies and procedures are now available to help schools and libraries who don't yet have a technology plan meet that part of the application requirements for the Universal Service Program ("E-rate"). To receive discounts on telecommunications technology under this program, schools and libraries must have an approved technology plan that includes clear goals and realistic strategies for integrating technology, including professional development and an evaluation process. The Schools and Libraries Corp. (SLC), adminstrator of the E-rate program, now has a detailed policies/procedures document available for all schools and libraries who have yet to develop an approved plan; those with approved plans already in place (such as plans developed for Goals 2000 or state technology initiatives) will not need to create new plans. For a copy of the Technology Plan Policies/Procedures, call toll-free 888/203-8100.

SLC has also developed two extensive "Commonly Asked Questions" documents to help schools and libraries answer their most pressing inquiries about applying for the Universal Service Program. One of these documents is based on questions fielded to date by the SLC hotline; the other addresses specific issues raised by the most recent FCC actions under the Fourth Order of Reconsideration. These documents are available at www.neca.org, or by calling 888-203-8100.

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