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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 Administrative Company by

Free Library of Philadelphia
Philadelphia, Pennsylvania

Federal-State Joint Board on
Universal Service

Changes to the Board of Directors of the
National Exchange Carrier Association, Inc.
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File No. SLD-112605


CC Docket No. 96-45


CC Docket No. 97-21


                             ORDER

   Adopted:  November 30, 2000          Released:  December 1, 2000 

By the Common Carrier Bureau:

1.     In this Order, we deny a Letter of Appeal filed by Free Library of Philadelphia
(Philadelphia Library), Philadelphia, Pennsylvania on March 28, 2000, seeking review of a
funding commitment decision issued by the Schools and Libraries Division (SLD) of the Universal
Service Administrative Company (Administrator) pursuant to a funding request 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.  The instant appeal
arises from SLD's denial of Philadelphia Library's Year 2 application for discounted internal
connections, Funding Request Number (FRN) 152459, on the grounds that a significant portion of
Philadelphia Library's funding request included services paid for and used by the City of Philadelphia,
an entity not eligible for universal service support.  Specifically, Philadelphia Library's funding request
included a shared Frame Relay Switch, which will be utilized more than 50 percent by the City of
Philadelphia.  Philadelphia Library filed an appeal with SLD on December 3, 1999.  SLD denied
Philadelphia Library's appeal on March 16, 2000, reiterating that a significant portion of Philadelphia
Library's funding request included products that would be used by an ineligible entity.  Philadelphia
Library filed the instant appeal with the Commission on March 28, 2000.  In this appeal,
Philadelphia Library requests that it be awarded discounts for the portion of its funding request
that would be attributable solely to Philadelphia Library.
3.     We have reviewed Philadelphia Library's appeal and conclude that SLD properly
denied Philadelphia Library's application for discounts.  Program rules state that only eligible
entities may receive universal service funds.  Specifically, section 54.501 of the Commission's rules
states that although schools and libraries may form consortia with public sector governmental entities,
including municipalities, discounts shall apply only to the portion of the eligible services used by eligible
schools and libraries.  The instructions to the FCC Form 471 state that applicants may not seek
support for ineligible entities.  In order to ensure that only eligible entities receive discounts, the
instructions state that applicants must allocate the cost of shared services and facilities among eligible
and ineligible entities.  Philadelphia Library's FCC Form 471 did not allocate the costs of shared
facilities between itself and the City of Philadelphia.  Moreover, Philadelphia Library does not challenge
SLD's conclusion that Philadelphia Library's funding request included services that would be used and
paid for in part by an ineligible entity.  As such, SLD properly denied Philadelphia Library's entire
funding request.
4.     We also reject Philadelphia Library's request that it be permitted to modify its original
FCC Form 471 to only request discounts for services attributable solely to Philadelphia Library. 
Philadelphia Library's request contravenes the Commission's policy that applicants shall not be
permitted to amend completed FCC Forms 471 to remove ineligible service requests after the
closure of the filing window deadline.  If applicants were permitted to make such corrections,
SLD and the Commission would face significant additional administrative burdens.
5.     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 Request for Review filed on March 28, 2000 by Free Library of Philadelphia, Philadelphia,
Pennsylvania, IS DENIED. 

                              FEDERAL COMMUNICATIONS COMMISSION



                              Carol E. Mattey
                              Deputy Chief,  Common Carrier Bureau