[Erate] E-Rate News for the Week of 10/13 - 10/17/2003

Tue Oct 21 08:15:33 PDT 2003

E-Rate News for the Week of 10/13 - 10/17/2003 

*	Wave 14 Funding for FY 2003
*	SLD E-Rate Training Slides Available Online
*	Retrieving and Completing Forms Online
*	Eligibility of Cable Modem Service

The E-Rate News for the Week, prepared by E-Rate Central, is sponsored by
the Council of Chief State School Officers ("CCSSO <http://www.ccsso.org>")
and made possible by a grant from the AT&T Foundation
<http://www.att.com/foundation/>.  Official SLD news is highlighted on the
homepage of the 'SLDs Web site <http://www.sl.universalservice.org>
(http://www.sl.universalservice.org).  Additional information is on the
State E-Rate Coordinators' Alliance ("SECA <http://www.e-ratecentral.com>")
Web site (<http://www.e-ratecentral.com/>).

*	Wave 14 Funding for FY 2003

	Wave 14 for FY 2003 is scheduled for release on Tuesday, October 21.
Funding in this wave is $59 million on over 325 applications.  This brings
total FY 2003 funding to $1.21 billion.

	The funding threshold for Internal Connections remains at 85%.  No
Internal Connections funding will be available below 70%.  The availability
of funding for applicants in the 70-84% range is still uncertain, although
funding requests in this range are currently being reviewed by the SLD.  

*	SLD E-Rate Training Slides Available Online

	Late in September, the SLD held a three-day Train-the-Trainer
Workshop for state coordinators covering all aspects of the E-rate program.
Copies of the PowerPoint slides used for these presentations, slightly
updated with more recent information, are available at
<http://www.sl.universalservice.org/reference/Presenations2003.asp>. The
slides can be viewed online or downloaded.  A separate file is provided for
each of the following sessions:

* E-rate for Beginners
<http://www.sl.universalservice.org/data/ppt/2003/E-rate%20for%20Beginners.p
pt>  * Universal Service Fund Overview
<http://www.sl.universalservice.org/data/ppt/2003/Universal%20Service%20Fund
%20Overview.ppt>  * General Updates
<http://www.sl.universalservice.org/data/ppt/2003/General%20Updates.ppt>  *
FCC Second Order Implementation
<http://www.sl.universalservice.org/data/ppt/2003/FCC%20Second%20Order.ppt>
* Technology Planning
<http://www.sl.universalservice.org/data/ppt/2003/Technology%20Planning.ppt>
* Service Provider Issues
<http://www.sl.universalservice.org/data/ppt/2003/Service%20Provider%20Issue
s.ppt>  * Consortia
<http://www.sl.universalservice.org/data/ppt/2003/Consortia.ppt>  	*
Eligible Services * Item 21 Attachments
<http://www.sl.universalservice.org/data/ppt/2003/Item%2021%20Attachments.pp
t>  * CIPA Guidance
<http://www.sl.universalservice.org/data/ppt/2003/CIPA%20Guidance.ppt>  *
Program Compliance
<http://www.sl.universalservice.org/data/ppt/2003/Program%20Compliance.ppt>
* Invoicing <http://www.sl.universalservice.org/data/ppt/2003/Invoicing.ppt>
* Audits <http://www.sl.universalservice.org/data/ppt/2003/Audits.ppt>  *
Appeals <http://www.sl.universalservice.org/data/ppt/2003/Appeals.ppt>  *
Changes and Corrections
<http://www.sl.universalservice.org/data/ppt/2003/Changes%20and%20Correction
s.ppt>  	

*	Retrieving and Completing Forms Online
*	
*	The Apply Online section of the SLD Web site permits applicants to
fill out and file Forms 470, 471, and 486 online (see
<http://www.sl.universalservice.org/menu.asp>).  As long as a user saves
their work in progress (and records the assigned application ID and security
code), the SLD's system permits the user to exit the form midway through
data entry and to complete it in a subsequent online session.  The
continuation process, however, varies with the particular form and mode
being used.
*	
*	The current version of the online Form 471 - which has not yet been
enabled for FY 2004 use - has the most intuitive interface.  There is a
separate Form 471 button labeled "Continue Incomplete."  No such button
exists for the other two forms.
*	
*	The online version of the Form 470 provides for two types of data
entry, either direct entry into a PDF form; or an interview mode (that works
something like an online tax preparation program).  A user can start
entering data in one mode, but complete the form in the other.  To complete
a Form 470 in interview mode, click the "Form 470 Interview" button.  This
will bring up a second screen with two options to either "Start New Form
470" or Continue Form 470."  To complete a Form 470 in the PDF mode, click
the "Form 470 PDF" button.  This will bring up a new PDF version of the Form
470.  Note, however, that there is a little gray button about 2 inches from
the top right-hand corner labeled "Retrieve."  Clicking this button will
bring up a series of two boxes requesting the appropriate ID and security
code numbers for the earlier Form 470.
*	
*	The completion process for the online Form 486 works in a similar
manner.  In the interview mode, there is a "Continue Form 486" option.  In
the PDF version, there is a "Retrieve" button on the Form 486 itself. 
*	
*	As a separate issue related to E-rate forms, Consortia members
should note that the Form 479 on the SLD Web site is only available in a
downloadable PDF format that must be printed out and completed by hand.  A
computer ready, type-in version of the same PDF form is available in the
Forms Rack section of the E-Rate Central Web site that can be filled out
online or downloaded to use locally on your own computer (see
<http://e-ratecentral.com/formsRack/app/Form479.asp>). 
*	
*	Eligibility of Cable Modem Service

	One of the more intriguing entries in the SLD's new Eligible
Services List (see
<http://www.sl.universalservice.org/data/pdf/EligibleServicesList101003.pdf>
) is the one for Cable Modem Service.  It reads:

	"Cable modem service provides a high-speed data path over TV coaxial
cable.  Applicants seeking cable modem service should apply for this service
under Internet access, pending a final nonappealable judicial order
determining the regulatory status of cable modem service. Brand X Internet
Serv. v. Fed. Comm. Comm'n, No. 02-70518, slip op. (9th Cir., Oct. 6,
2003)(per curiam)."

	The legal language at the end of this entry reflects a recent
decision by the 9th U.S. Circuit Court of Appeals in Seattle.  At issue is
the obligation of cable companies to provide broadband access to rival
Internet companies.  Based on an earlier FCC ruling that cable modem service
is an "information" service, not a "telecommunications" service, the FCC
ruled that cable companies did not have this obligation.  The Court
determined, however, that cable modem service is an information and
telecommunications service, and that the FCC had erred.  The FCC has already
announced that it will appeal the Court's decision.

	At the very least, the Court's decision makes for interesting
reading (see
<http://cyberlaw.stanford.edu/archives/9th%20Circuit%20opinion%2010-6-03.pdf
>). If the Court's ruling is upheld, the most important E-rate implication
may be that applicants can apply for cable modem service under the
Telecommunications, rather than the Internet Access, category, presumably
with the cable companies being deemed Eligible Telecommunications Carriers.
A number of cable companies have started offering Virtual Private Network
("VPN") services (essentially general purpose WANs).  The networks carry
Internet as well as other voice, video, and data traffic.  Under current
E-rate rules, only a portion of the VPN service charges (i.e., that
allocated to Internet) is eligible for E-rate discounts.  If cable modem
service is ultimately determined to be telecommunications, all the VPN
charges may become eligible.

	For now, however, the FCC is not accepting the Court's decision.  As
a result, cable modem service remains in the Internet category.  Any
applicant that chooses to file for discounts on a cable company's VPN
service for FY 2004, therefore, should assume that only the allocated
Internet portion is eligible.  

	One possible strategy for maximizing FY 2004 discounts in the event
the FCC's position is reversed would be to split a VPN funding request into
two FRNs, one for the allocated Internet portion and one for the remaining
telecommunications portion (voice, video, and data).  If there is no final
decision on cable modem service by the time the application is reviewed, the
telecommunications portion will be denied, but at least the Internet portion
should be funded.  As a temporizing measure, the denial of the telecom
portion could then be appealed to provide additional time to await a final
judicial decision on telecom eligibility.

----------------

	Disclaimer: This newsletter may contain unofficial information on
prospective E-rate developments and/or may reflect E-Rate Central's own
interpretations of E-rate practices and regulations. Such information is
provided for planning and guidance purposes only. It is not meant, in any
way, to supplant official announcements and instructions provided by either
the SLD or the FCC.

Patricia K. Middelburg
Project Manager and State E-rate Coordinator
Department of Administrative Services
Information Resources Management Division
1225 Ferry Street SE, 1st Floor
Salem, OR 97301-2556
Telephone:  503.373.1365
Fax:  503.378.3795
pat.middelburg at das.state.or.us