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[RFC] FCC Kicks Off Universal Service Reform

Press Release: "The Federal Communications Commission today took its first step toward a once-in-a-generation transformation of the Universal Service Fund from supporting networks providing plain old telephone service into an effective and efficient tool for making affordable, high-quality broadband communications service available to all Americans.

"The National Broadband Plan that the Commission sent to Congress last month identified the need for comprehensive universal service reform that does not unnecessarily burden consumers. Today’s Notice of Inquiry (NOI) and Notice of Proposed Rulemaking (NPRM) begin the hard work of implementing the Plan’s recommendations, which include cutting inefficiencies in existing support of voice services and creating a Connect America Fund (CAF) that directly supports broadband without increasing the size of the Universal Service Fund over the current baseline projection.

"The NOI asks for public comment on the use of an economic model to precisely target support for areas where there is no private-sector business case for carriers to provide broadband and voice services. The economic model developed in the Plan estimates the gap between the cost of deploying broadband services to Americans living in unserved areas and the potential additional revenue generated from the broadband investment. The NOI seeks comment on how that model could be adapted to determine efficient levels of universal service support to provide all Americans with broadband access.

"The NOI also seeks comment on how to quickly provide consumers in unserved areas with broadband access while the Commission is considering final rules to implement fully the new CAF funding mechanism.

"The NPRM seeks comments on a number of proposals to cut legacy universal service spending in high-cost areas and to shift support to broadband communications. These proposals include capping the overall size of the high-cost program at 2010 levels; re-examining the current regulatory framework for smaller carriers in light of competition and growth in unregulated revenues; and phasing out support for multiple competitors in areas where the market cannot support even one provider.

"Action by the Commission April 21 by Notice of Inquiry and Notice of Proposed Rulemaking (FCC 10-58). Chairman Genachowski, Commissioners Copps, McDowell, Clyburn, and Baker. Separate statements issued by Chairman Genachowski, Copps, McDowell, Clyburn, and Baker. Docket 10-90

4/21/10 FCC Kicks Off Universal Service Reform. News Release: NOI & NPRM:

[RFC] Comment Sought On Notice Of Proposed Rulemaking Regarding The E-Rate Program And Compliance With The Protecting Children In The 21st Century Act

Comment Date: February 18, 2010; Reply Comment Date: March 5, 2010

"On November 5, 2009, the Commission released a notice of proposed rulemaking (NPRM) seeking comment on revising rules regarding the schools and libraries universal service support mechanism, also known as the E-rate program, to comply with the requirements of the Protecting Children in the 21st Century Act. Among other things, section 215 of the Protecting Children in the 21st Century Act, titled Promoting Online Safety in Schools, revised section 254(h)(5)(B) of the Communications Act of 1934, as amended, by adding a new certification requirement for elementary and secondary schools that have computers with Internet access and receive discounts under the E-rate program. The Commission also proposed to revise related Commission rules to reflect existing statutory language more accurately.

"Interested parties may file comments on or before February 18, 2010, and reply comments on or before March 5, 2010. All pleadings are to reference CC Docket No. 02-6. Comments may be filed using the Commission’s Electronic Comment Filing System (ECFS) or by filing paper copies. [See original notice for detailed filing instructions and ex parte notice]

"For further information, please contact Anita Cheng or Regina Brown, Telecommunications Access Policy Division, Wireline Competition Bureau at (202) 418-7400 or TTY (202) 418-0484.

"Released: 01/20/2010. Comment Sought On Notice Of Proposed Rulemaking Regarding The E-Rate Program And Compliance With The Protecting Children In The 21st Century Act. (DA No. 10-102). (Dkt No 02-6 ). Comments Due: 02/18/2010. Reply Comments Due: 03/05/2010. WCB . Contact: Anita Cheng or Regina Brown at (202) 418-0792, TTY: (202) 418-0484

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-10-102A1.doc
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-10-102A1.pdf
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-10-102A1.txt

[Order & NPRM] FCC Releases E-rate Funding Year 2010 Eligible Services List, and Seeks Further Comment on Eligible Services.

In Re Schools and Libraries Universal Service Support Mechanism, CC Docket No. 02-6, Report and Order, and Further Notice of Proposed Rulemaking (Dec. 2, 2009)

In this report and order and further notice of proposed rulemaking, we address and seek comment on issues regarding the services eligible for funding under the schools and libraries universal service support mechanism, also known as the E-rate program. First, we modify our rules to expressly include interconnected voice over Internet protocol (VoIP) and text messaging as eligible services under the E-rate program. Second, we release the list of services that will be eligible for discounts for E-rate funding year 2010. Finally, we seek further comment on the eligibility of certain services in future funding years, as well as on proposed changes to the process for determining the services that will be eligible for support under the E-rate program.

In the report and order, we conclude that interconnected VoIP service is eligible for E-rate support and should continue to be an eligible service under the E-rate program. We also conclude that text messaging is eligible for E-rate support. In response to the 2010 ESL Public Notice , we clarify the E-rate program eligibility of video on-demand servers, ethernet, web hosting, wireless local area network (LAN) controllers, and virtualization software. We find that telephone broadcast messaging, unbundled warranties, power distribution units, softphones, interactive white boards, and e-mail archiving are ineligible for E-rate program funding. F inally, we release the Eligible Services List (ESL) for E-rate funding year 2010.

In the further notice of proposed rulemaking, we seek comment on whether particular services should be designated as eligible for E-rate support in funding year 2011 and beyond. Specifically, we tentatively conclude that the ESL should not include separately-priced firewall services, anti-virus/anti-spam software, scheduling services, and wireless Internet access applications. Also, we tentatively conclude that web hosting should not be eligible for funding under the E-rate program, or, alternatively, should only be eligible for E-rate program funds as a Priority 2 service. In the further notice w e also tentatively conclude that we should change our rules to establish that specific eligible products and services should be listed in the ESL as opposed to being listed individually in the rules. We seek comment on our tentative conclusions on the process for developing the ESL, including requiring the Universal Service Administrative Company (USAC) to submit any proposed changes to the ESL to the Commission no later than March 30 th of each year. Finally, we tentatively conclude to revise our rules to eliminate the requirement that the ESL be released by public notice, which would provide the Commission the flexibility to release the ESL by order .

12/2/09 FCC Releases E-rate Funding Year 2010 Eligible Services List, and Seeks Further Comment on Eligible Services.
Order and FNPRM: Word | Acrobat
Eligible Services List: Acrobat

Comment Date: (30 days after publication in the Federal Register)
Reply Comment Date: (45 days after publication in the Federal Register)