The schools and libraries universal service support program, also known as the E-Rate Program, helps schools and libraries obtain affordable telecommunication services, broadband internet access and internal network connections. This program is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC) and provides discounts to schools and libraries to obtain telecommunications. These discounts vary and depend on the level of poverty and the urban/rural status of the population. Discounts can then range anywhere from 20% to 90% of the costs of eligible services.
The E-Rate Program is a great way for schools and libraries to obtain more for less, especially in the budget cutting economy many schools and libraries face today. Eligible participants include public and private K-12 schools and libraries. They must also utilize a competitive bidding process to select the most cost-effective company to provide the goods and services needed.
Funding may be requested under five categories separated into two priorities.
Priority 1:
- Telecommunication Services
- Telecommunications
- Internet Access
Priority 2:
- Internal Connections
- Basic Maintenance of Internal Connections
Priority 1 services are funded first because of program funding caps. Generally, not all Priority 2 requests are able to be funded. For each funding year, the USAC starts issuing commitments for Priority 2 requests at the highest discount level (90%) and continues to decrease in discount level (89%,88%,87%…) until the remaining funds are insufficient to fund eligible requests at a particular discount level.
As designed by Congress, telecom companies must contribute to a fund administered by the Federal Government that subsidizes the equipment and services provided under the program. Most of the companies raise this money by directly charging their customers. Next time you’re at home, check your pile of bills and look for the “Universal Service Fund. This is where the 2.25 billion dollars come from that fill this fund.