ALA Midwinter 2011: Major Changes in E-Rate Discounts Take Effect
Libraries may be able to get a better price for more bandwidth. By Michael Kelley Jan 11, 2011In a sparsely attended but highly enlightening ALA Midwinter Meeting session on Saturday dealing with E-rate discounts, John Noran explained significant changes that took effect on January 3.
Noran, from the Schools and Libraries Division of the Universal Service Administrative Company (which administers this critical program), outlined several major points in the Federal Communications Commission's Sixth Report & Order, which is titled "Upgrading E-Rate for the 21st Century."
The order, inspired by the National Broadband Plan (NBP) issued on March 16, 2010, takes a fresh look at the E-rate program and identifies ways to improve the program and reflect changes in technology. The NBP aims to use community anchors, such as libraries, to realize the NBP target of affordable access to broadband of at least 1 gigabit per second in every community in the country.
Expanded access to low-cost fiber
The new order will now allow libraries (and schools) to lease dark as well as lit fiber from the most cost-effective provider, including nonprofit and for-profit entities and both telecommunications carriers and nontelecommunications carrier providers.
" 'Dark fiber' is fiber that doesn't currently have service on it," Noran said, but it must be lit immediately if leased under the new order.
This change will allow libraries to get the best price for the most bandwidth, which should increase their access to information services (e.g., Internet access). This is particularly significant given the penurious environment that libraries are now working in.
" ... [This] encourages collaboration with local, state, and federal agencies to more effectively utilize existing facilities and resources to meet broadband needs ... " the order says.
For example, the San Francisco Public Library has increased its bandwidth over the past five years from 1.44 megabits per second (Mbps) to 50 Mbps, but that is insufficient to deliver the "bandwidth-intensive" content available through the library's online resources and databases, according to the FCC.
San Francisco must rely on telecommunications services in order to get E-rate discounts, but it now can explore other options, such as provisioning of dark fiber by the city.
Community use of schools' e-rate funded facilities and services
The new rules will allow schools to open their facilities supported by E-rates to the general public, as long as classes are not in session and the facilities' primary purpose remains educational.
"This is an opportunity for libraries to explore partnerships that could lessen demand on their own facilities," Noran said.
The decision remains with school authorities to establish any policy changes, but the FCC is encouraging institutions to report successful efforts here.
Schools can charge users for ancilliary costs, such as additional electricity, security, and heating costs, Noran said.
Indexing the annual funding cap to inflation
The E-rate program's funding has been capped at $2.25 billion since 1999. It is being increased about $20 million, to $2.27 billion. In addition, the funding cap is now going to be indexed to inflation based on the Department of Commerce's Gross Domestic Product numbers.
Pilot program to investigate offsite access
The E-rate program supports wireless Internet access on library grounds, but when the devices (such as a laptop or other mobile device) are taken off the premises libraries "are required to cost-allocate the dollar amount of support for wireless Internet access use for the time that the device is not at the school or library and remove that portion from its E-rate funding request," the order reads.
Given the general drift toward portable wireless devices and wireless off-premises connectivity services, this could have significant implications for libraries. Noran said a $10 million pilot program was launched in November to support "interactive off-premise wireless device connectivity" for libraries (and schools) and explore whether these services should be eligible for E-rate support.
One possible challenge will be how to ensure compliance with the Children's Internet Protection Act (CIPA).
Streamlining and Simplifying Administrative Requirements
Noran also pointed out several areas where the application process has been simplified. He particularly noted that the FY2011 Form 471 application filing window opens at noon EST today (January 11) and it will close at 11:59 pm EDT on Thursday, March 24, 2011. The window will be open for 73 days.
An eligible services list and other details about the FCC order can be found here.
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