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Background
The Schools and Libraries program, also known
as the E-rate program, makes telecommunications and information
services more affordable for schools and libraries in America.
Congress mandated in 1996 that the Federal Communications
Commission (FCC) use the federal Universal Service Fund (USF) to
provide discounted eligible telecommunications, Internet access,
and internal connections 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 eligible telecommunication services, 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 explains how the technology for which it
seeks support will be used to achieve educational goals,
specific curriculum reforms, or library service improvements.
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The school or library then provides notice
that it seeks services. Notice must be provided in accordance
with specific FCC rules and state and local procurement laws.
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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 services. The FCC administers the USF with the help
of USAC.
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After USAC approves the school’s or
library’s application, the vendor provides the eligible services
to the school or library at discounted prices. Generally, the
vendor is then reimbursed the amount of the discount from the
USF.
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
Voice over Internet Protocol (VoIP) providers.
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 program participant.
Does the FCC's Schools and Libraries Program Duplicate State and Local
Efforts?
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 telecommunications services,
Internet access, and internal connections. 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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Federal Communications Commission
