Appendix D -- PROPOSED FCC RULING PROVIDING DISCOUNTS FOR SCHOOLS AND LIBRARIES TO ACCESS TELECOMMUNICATIONS SERVICES

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A section of the Telecommunications Act of 1996 will make it much less expensive for schools to access telecommunications services and therefore may have ramifications for improving contact between community cultural partners and students via technology.

Section 254 (Universal Service) explicitly designates elementary and secondary schools and libraries among the entities eligible to receive the benefits of the emerging telecommunications revolution. The Act mandates that elementary and secondary schools and libraries receive discounts for telecommunication services and any additional services designated by the Federal Communications Commission (FCC).

The FCC's Federal-State Joint Board on Universal Service has recommended that $2.25 billion be provided annually in universal service support for schools and libraries. Three main sets of services are eligible for discounts: 1) monthly telecommunications access charges, 2) internal wiring or networking, and 3) Internet access. Funding will come from long distance carriers and other service providers.

The level of discounts will be determined by a combination of two factors -- percentage of students eligible for free or reduced priced lunch and geographic location. All eligible schools and libraries will receive discounts ranging from 20 percent to 90 percent on a sliding scale formula. The average discount that a school or library will receive will be 60 percent. About one-third of all schools will receive discounts of at least 80 percent. These discounts will help schools and libraries overcome the financial obstacles of monthly access charges and the high start-up costs associated with establishing a networked environment. Greater availability of the different forms of technologically assisted learning may help schools better access cultural resources both within their communities and across the country.

The FCC has until May 7, 1997 to develop the rules for implementation. The Universal Service Fund will be ready to provide funds for the 1997 school year.

Update: Funding for the E-rate was set at $2.25 billion per year. Discounts are obtained by applying to the Schools and Library Corporation, a nonprofit corporation newly organized under the sponsorship of the FCC. Application forms should be released by the middle of December. Applications should be accepted early next year, and the Schools and Libraries Corporation will announce the mail and Internet addresses to which they can be sent.

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