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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554
                                             
In the Matter of                        )
                                   )
Request for Review                      )
of the Decision of                      )
the Universal Service Administrator by       )                        
               )
Tulsa Public Schools                         )    File  No. SLD- 49002     
Tulsa, Oklahoma                         )
                                   )
Federal-State Joint Board on Universal Service    )    CC Docket No. 96-45
                                   )
Changes to the Board of Directors            )    CC Docket No. 97-21
of the National Exchange Carrier             )    
Association, Inc.                       )
                                
                             ORDER

     Adopted:  October 8, 1999               Released:  October 8, 1999
                    
By the Deputy Chief, Common Carrier Bureau:

     1.   The Common Carrier Bureau (Bureau) has under consideration a Letter of Appeal
filed by the Tulsa Public Schools (Tulsa) on May 14, 1999, seeking review of a decision issued by
the Schools and Libraries Division (SLD) of the Universal Service Administrative Company
(USAC or Administrator).  Tulsa seeks review of the SLD's denial of its application for discounts
for telecommunications services under the schools and libraries universal service support
mechanism.  For the reasons set forth below, we deny the Letter of Appeal and affirm the SLD's
denial of Tulsa's application for discounts for telecommunications services.

     2.   Under the schools and libraries universal service support mechanism, eligible
schools, libraries, and consortia that include eligible schools and libraries, may apply for discounts
for eligible telecommunications services, Internet access, and internal connections.  
By letter dated December 2, 1998, the SLD denied Tulsa's request for discounts, finding that  a
significant portion of the request included a request for voicemail, which is an ineligible service
based on program rules.  Tulsa appealed the SLD's decision by letter dated December 17, 1998. 
On April 19, 1999, the SLD affirmed its initial funding decision and denied Tulsa's appeal.  In the
Administrator's Decision on Appeal, the SLD explained that only 20 percent of the requested
funding was eligible pursuant to program procedures. 

     3.   In Tulsa's request for review of the SLD's decision that is now before us, Tulsa
states that the SLD's conclusion that only 20 percent of the requested funding is eligible is
inaccurate.  Rather, Tulsa maintains that 64 percent of the requested funds should be deemed
eligible.  In support of this assertion, Tulsa submits that $720,000 of the requested amount
represents funds for the purchase and installation of eligible private branch exchanges (PBXs).

     4.   We have reviewed Tulsa's appeal and conclude that the SLD properly denied
Tulsa's application for discounts.  As correctly determined by the Administrator, only 20 percent
of the requested amount is eligible for universal service support.  In its Letter of Appeal, Tulsa
characterizes the amount in dispute as reflecting costs for PBXs.  While PBXs may be eligible for
support as internal connections, our review of documentation provided by the vendor reveals that
a portion of the amount in dispute represents costs attributed to ineligible products, such as
sophisticated speakerphones and modems.  The remaining portion represents costs attributed to
products that support ineligible functions such as voice messaging, message management, and fax
messaging.  Therefore, this equipment is also not eligible for support.  

     5.   Although Tulsa indicated in its Letter of Appeal that similar equipment was
approved for discounts for other school districts in Oklahoma, this statement was not supported
by additional facts or evidence.  Furthermore, each applicant bears the independent responsibility
of providing acceptable support that complies with the rules and guidelines governing this
program, regardless of what may have been provided by other schools or libraries.  Therefore, we
do not believe that this contention warrants further consideration.
     
     6.   ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
sections 0.91, 0.291, and 54.722(a) of the Commission's rules, 47 C.F.R.  0.91, 0.291, and
54.722 (a), that the Letter of Appeal filed by Tulsa Public Schools on May 14, 1999 IS DENIED.

                              FEDERAL COMMUNICATIONS COMMISSION



                              Lisa M. Zaina
                              Deputy Chief, Common Carrier Bureau