E-rate, or the Universal Service Schools and Libraries Program, originated from the 1996 Telecom Act. Basically, the goal of the Act was for all Americans to have access to communication services. As a result, telecommunication companies pay a fee based on their revenue to the Universal Service Fund created by the FCC. This money is distributed to schools and libraries in part as a discount to the cost of Internet and Internet related services. Discounts range from 20-90% and are based on the number of students enrolled in the National School Lunch Program (NSLP) as well as the school's urban and rural status. The services covered fall into two categories:
Data Transmission Services
Internet Access
Internal Connections
Managed Internal Broadband Services
Basic Maintenance of Internal Connections
Category One services are defined by the Universal Service Administrative Company (USAC) as "services that provide the basic conduit access to the internet." Category Two services are "those needed to enable high-speed broadband connectivity and broadband internal connections components." All schools should consider applying for Category One discounts, as they're already paying for internet services. A school should consider applying for Category Two service discounts if they are looking to install or update local area networks. These upgrades could include:
wireless access points
cabling
switches
routers
racks
uninterruptable power supplies
other components related to internal connections
Category Two also covers basic maintenance of these internal connections which may also be an expense the school is already paying for. S3 provides many of those services, and offers free network and infrastructure analysis to identify upgrades that will help you serve your students more effectively.
Determine school's eligible discount rate
Set up the school in the EPC database - call 888-203-8100 if this is the first time a school is applying for E-rate
Use FCC Form 4720 to request bids
Review bids (bid process must be open at least 28 days)
Select service provider
Use FCC Form 471
Must have chosen final bid
Use either FCC Form 472 or 474
FCC Form 472: BEAR Method - School pays for services in full, then submits form 472 to be reimbursed for the portion covered by E-Rate
FCC Form 474: SPI Method - Schools pays a discounted rate for service. Service provider files Form 474, and E-Rate pays the service provider the covered portion of the bill.
