The FCC Wireline Bureau overturned two Universal Service Administrative Co....
The FCC Wireline Bureau overturned two Universal Service Administrative Co. decisions denying funding to the Posen-Robbins school district in Illinois (http://xrl.us/bn4xzu), and one denying funds to the Fort Worth Independent School District (http://xrl.us/bn4x6c). Net56 had sought review of the Posen-Robbins…
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decisions after USAC denied funding to the district to pay Net56 for Internet access services. USAC had said the district’s contract with Net56 included ineligible products that weren’t cost allocated, and that the district didn’t pay its discounted share for eligible services. The Wireline Bureau reversed, saying USAC had based its decision on the “wrong contract” provided by the district. USAC had also balked at paying Net56’s bill for firewall, email and web hosting services, saying they were more than twice the cost of “a commercially available solution.” The bureau disagreed, saying two to three times market value would indeed be excessive, but USAC erred in finding the services were “not cost effective.” In Fort Worth, USAC had issued funding commitment decision letters committing over $5 million in E-rate support; Fort Worth later invoiced USAC for $3.5 million in products and services, but a USAC audit found Fort Worth had improperly invoiced for ineligible fees and undocumented recurring services. USAC asked for $170,000 back. The bureau said Fort Worth had submitted proper documentation and had acted in accordance with commission rules.