E-Rate Draft NPRM Would Make Permanent Category 2 Budget Tack
The FCC is expected to take comments this summer on an NPRM on E-rate modernization that would make permanent a 5-year-old budget approach to funding internal broadband connectivity technology, such as Wi-Fi routers. The draft on circulation addresses so-called category 2 funding, officials said. It's expected to follow recommendations from a February Wireline Bureau report recommending the agency renew its approach for equal distribution of funding (see 1902110056). That tack replaced a "two-in-five" budget method that allowed anchor institutions to apply for the category 2 funding two of every five years.
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Advocates for schools and libraries support extending the current budget approach but may ask for changes to funding levels. "We'll keep a close eye on the NPRM," said Schools, Health & Libraries Broadband Coalition Executive Director John Windhausen. He noted the current budget approach expires at the end of the year, "so the FCC has to take action. We're very pleased the FCC is moving forward." He predicted a final ruling on the category 2 budget approach this fall so applicants are ready for the next bidding season in November or December.
Though SHLB supports the current approach, it might recommend higher funding, especially for rural schools and libraries. The group is having conversations with members to see what funding requirements they have. Rural schools and libraries have limited staff to apply for government grants, Windhausen said, and it's harder to negotiate lower prices on equipment the way larger organizations can when they buy in bulk. Rural institutions may be hit with higher equipment costs if they're no longer allowed to buy from Huawei (see 1906190050), since it was often cheaper than competitors, he added.
The Consortium for School Networking wants to make sure the category 2 funding floor, based on per student spending, is sufficient to support small school districts, said CoSN CEO Keith Krueger. "We would hope to see the funding increase." He supports the recommendations from the February report to permanently extend the current budget approach: "We're anxiously awaiting the opportunity to comment."
The NPRM could address additional eligible services under category 2 funding. Krueger said CoSN would like to see USF spending on cybersecurity to protect the private data of students and teachers using broadband networks within schools, for example. He'd like to see comment requested on adding funding to support Wi-Fi capabilities on school buses, already deployed in some districts. Having broadband available on school buses can help close the homework gap for students with long commute times or those traveling to sporting events, Krueger suggested.
Funds for Learning met Tuesday with an aide to Commissioner Mike O'Rielly, to discuss E-rate modernization. It shared preliminary results from its survey of applicants, with 94 percent saying the funding is vital to their organization's connectivity goals. Eighty-four percent believe they can depend on E-rate funding every year. A majority said the funding provides faster internet connections for their schools and libraries, allows them to connect more students or library patrons, and led to the purchase of lower-priced equipment due to competitive bidding.
E-rate category 1 funding that covers the wiring to bring broadband to a school or library isn't expected to be addressed in the NPRM. Texas carriers that met with FCC officials June 17 asked the agency to open an NPRM on preventing the use of category 1 E-rate spending on overbuilders of anchor institutions that had already received USF dollars from other telecom providers. The Wireline Bureau is taking comments on the Texas carrier petition through July 1, replies through July 16 (see 1905300046).