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Background
The Schools and Libraries program, also
called the "E-Rate program," makes telephone and
Internet access service more affordable for schools and libraries
in America. Congress mandated in 1996 that the Federal
Communications Commission (FCC) use the federal Universal Service
Fund to provide support to companies that give discounts to
eligible schools and libraries. Here are some frequently asked
questions about the Schools and Libraries program.
What Benefits Are Available Under the Schools and
Libraries Program?
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Eligible schools and libraries receive
discounts on telephone service, Internet access, and internal
connections (for example, network wiring).
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The discounts range from 20 to 90
percent, depending on the household income level of students
in the community, and whether the school or library is located
in an urban or rural area.
How Does the Schools and Libraries Program Work?
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A school or library must develop a
technology plan that demonstrates the relationship between the
information technology to be supported and the school's
curriculum or library's objectives. The school or library then
provides notice that it seeks services.
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Vendors bid to provide the desired
services to the school or library. After the school or library
selects a vendor, it files an application with the Universal
Service Administrative Company (USAC) for approval of its
request for discounted service. The FCC administers the
Universal Service Fund with the help of the USAC.
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After the USAC approves the school's or
library's application, the vendor provides the services to the
school or library at discounted prices. Generally, the vendor
is then reimbursed the amount of the discount from the
Universal Service Fund.
Who Pays for the Schools and Libraries Program?
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All telecommunications service providers
and certain other providers of telecommunications must
contribute to the federal USF based on a percentage of their
interstate and international end-user telecommunications
revenues. These companies include wireline phone companies,
wireless phone companies, paging service companies, and
certain interconnected Voice over Internet Protocol (VoIP)
providers.
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Some consumers may notice a
"Universal Service" line item on their telephone
bills. This line item appears when a company chooses to
recover its USF contributions directly from its customers by
billing them this charge. The FCC does not require this charge
to be passed on to customers. Each company makes a business
decision about whether and how to assess charges to recover
its Universal Service costs. These charges usually appear as a
percentage of the consumer's phone bill. Companies that choose
to collect Universal Service fees from their customers cannot
collect an amount that exceeds their contribution to the USF.
They also cannot collect any fees from a Lifeline or Link-Up
program participant, unless the participant has incurred long
distance-related charges.
Does the FCC's Schools and Libraries Program Duplicate State and Local
Efforts?
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The FCC's plan complements the efforts of
states and localities to bring advanced telecommunications to
America's classrooms and libraries. Universal Service support
provides discounts only for telephone service, Internet
access, and internal connections.
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Largely because of the FCC's Schools and
Libraries program, more than 99 percent of public schools were
connected to the Internet by the end of 2002, up from 65
percent in 1996.
How Can I Find Out How Schools and Libraries in My Area Are Benefiting from
the Schools and Libraries Program?
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