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WCB Announces 2.1% Inflation-based Increase to E-rate Funding for 2012

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Released: May 18, 2012

PUBLIC NOTICE

Federal Communications Commission

News Media Information 202 / 418-0500
445 12th St., S.W.
Fax-On-Demand 202 / 418-2830
TTY 202 / 418-2555

Washington, D.C. 20554

Internet: http://www.fcc.gov
ftp.fcc.gov

DA 12-791

Released: May 18, 2012

WIRELINE COMPETITION BUREAU ANNOUNCES E-RATE INFLATION-BASED

CAP FOR FUNDING YEAR 2012

CC Docket No. 02-6

Pursuant to section 54.507(a) of the Commission’s rules,1 the Wireline Competition Bureau
announces that the E-rate program funding cap for funding year 2012 is $2,338,786,577.2 Section
54.507(a)(1) of the Commission’s rules requires an adjustment of the E-rate program’s annual cap based
on the gross domestic product chain-type price index (GPD-CPI) measure of inflation.3 The new cap
represents a 2.1% inflation-adjusted increase from funding year 2011’s $2,290,682,250 cap.4 The
Commission began indexing the annual funding cap to inflation in 2010 to allow the E-rate program to
keep pace with the changing telecommunications needs of schools and libraries.5
For further information, please contact James Bachtell, Wireline Competition Bureau at (202)
418-7400 or TTY (202) 418-0484.
- FCC -


1 47 C.F.R. § 54.507(a).
2 The 2012 funding year runs from July 1, 2012 to June 30, 2013. The E-rate program is more formally known as
the schools and libraries universal service support program.
3 Schools And Libraries Universal Service Support Mechanism: A National Broadband Plan For Our Future, CC
Docket No. 02-6, GN Docket No. 09-51, Order, 25 FCC Rcd 18762, 18782, para. 39 (2010) (Sixth Report and Order).
4 Id. at 18781, 18783, paras. 36, 40; National Income and Product Accounts Table, Bureau of Economic Analysis,
May 2012, Table 1.1.4, available at
http://www.bea.gov/National/nipaweb/TableView.asp?SelectedTable=4&ViewSeries=NO&Java=no&Request3Plac
e=N&3Place=N&FromView=YES&Freq=Year&FirstYear=2008&LastYear=2012&3Place=N&Update=Update&Ja
vaBox=no#Mid (last visited May 8, 2012) (calculating the percentage difference of the gross domestic product of
111 in 2010 and 113.338 in 2011 and producing an increase of 2.1%).
5 Sixth Report and Order, 25 FCC Rcd at 18781, para. 36.

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