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  • From: Hurley, Jeannene (MDE)
  • Date: Tue Oct 13 15:23:29 2009

Title: ERate
Oct. 13 -- BNA, Inc. Daily Report for Executives

Rockefeller Seeks FCC Rule Change
To Increase E-Rate Program Funding
 
Sen. John Rockefeller (D-W.Va.), the chairman of the Senate Commerce, Science, and Transportation Committee, Oct. 9 sent a letter to the Federal Communications Commission seeking more funds to connect schools and libraries to the internet.

 

Specifically, Rockefeller asked FCC Chairman Julius Genachowski to “expeditiously adjust” the commission's rules to address the inflationary decreases in funding available for the program.

 

Rockefeller was an original sponsor of the amendment to the 1996 Telecommunications Act that first established the schools and libraries program as part of the universal service fund. The program is commonly known as the E-Rate program.

 

“The E-Rate program has been the singularly most effective and powerful of all of the [FCC's] universal service programs at supporting the expansion of broadband service,” Rockefeller wrote in his letter. However, when the commission first implemented its rules governing the E-Rate program, it capped the funds available annually at $2.25 billion, Rockefeller said.

 

“I am concerned that more than a decade later the strength of this program has been reduced by the failure of the agency to adjust its rules to accommodate the impact of inflation,” the letter stated. “Taking into consideration growth in the consumer price index, the cap that was put in place in July 1997 has an equivalent value in August 2009 of $1.68 billion,” he stated.

 

This situation has serious consequences, Rockefeller wrote. While each year students' need for broadband educational opportunities increases, the real dollar value of the E-Rate program decreases, he stated.

 

It also has a detrimental effect on those who use public libraries for internet access, including an increasing number of low-income, elderly, and unemployed citizens, the letter stated.

 

Rockefeller said he knew that the commission understood the great importance of broadband in this country. “As a result, I ask that you expeditiously adjust commission rules to address the toll that inflation has taken on this important program,” he wrote.

 

The schools and libraries program of the universal service fund is administered by the Universal Service Administrative Company (USAC) under the direction of the FCC. It provides discounts that allow most schools and libraries in the United States to obtain affordable telecommunications and internet access.
According to USAC, the schools and libraries program disbursed an estimated $1.8 billion in funding year 2008.

By Cheryl Bolen


 
  




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