E-Rate Indexed to Inflation in Draft FCC Order
A draft FCC order ties the E-Rate index to inflation and lets schools and libraries lease dark fiber from utility companies other than telcos, advisors to three commissioners said. The proposed order circulated Thursday by Chairman Julius Genachowski would also make permanent a temporary provision that allows communities to use schools’ and libraries’ systems after hours, the aides said. Genachowski is seeking a vote on the order at the Sept. 23 meeting.
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The order is the first step in a broader overhaul of the Universal Service Fund, a Genachowski aide said. Genachowski wants to tackle USF questions through the fall and be finished before spring, the aide said.
The proposed dark fiber order represented a victory for the Schools, Health and Libraries Coalition. “It’s not the solution for every school and library, but I think a lot of schools and libraries can reduce their costs substantially,” said Telepoly President John Windhausen, who’s coordinating the coalition’s efforts. “Including dark fiber would allow the E-Rate funds to go much farther."
Industry lobbyists tried to fend off the E-Rate order in a flurry of meetings in late August. AT&T and USTelecom met with staff late last month. They warned that the proposed changes would go against established rules, reduce E-Rate money and possibly cause competitive-bidding violations.