e-rate and discounts for schools, libraries and rural health care entities
What is E-Rate?
The Schools and Libraries Program of the Universal Service Fund, commonly known as "E-Rate," is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC). It provides discounts to assist most schools and libraries in the United States in obtaining affordable telecommunications and Internet access.
Funding can be requested under four categories of service: telecommunications services, Internet access, internal connections and basic maintenance of internal connections. The amount of the discount depends on the level of poverty and the urban/rural status of the population served and ranges from 20% to 90% of the costs of eligible services. Eligible schools, school districts and libraries may apply individually or as part of a consortium with USAC. USAC works in conjunction with service providers, such as tw telecom, to make sure these discounts are passed on to program participants.
For more information, see USAC’s website or contact tw telecom’s E-Rate specialist, Pamela Quade.
What are the Eligibility Requirements for E-Rate?
In general, schools are eligible if they meet the following requirements:
- They must provide elementary or secondary education as determined under state law.
- They may be public or private institutional day or residential schools or public charter schools.
- They must operate as non-profit businesses.
- They cannot have an endowment exceeding $50 million.
In general, libraries are eligible if they meet the following requirements:
- They must meet the statutory definition of library or library consortium found in the 1996 Library Services and Technology Act (Pub. L. 104-208) (LSTA).
- They must be eligible for assistance from a state library administrative agency under that Act.
- They must have budgets completely separate from any schools (including, but not limited to, elementary and secondary schools, colleges and universities).
- They cannot operate as for-profit businesses.
For more information, see USAC’s website.
What is the Discount Level for E-Rate Funded Entities?
The primary measure for determining school and library support discounts is the percentage of students eligible for free and reduced lunches under the National School Lunch Program (NSLP) calculated by individual schools.
A school district applicant determines its shared discount by calculating a weighted average of the discounts of all individual schools in the school district.
Library branches or outlets must obtain and use the NSLP data for the public school district in which they are located to calculate the discount.
A library system applicant determines the appropriate shared discount by calculating anaverage of the discounts of all library branches or outlets included in the system.
For more information on calculating the level of discount, see USAC's website.
What Services are Eligible for E-Rate discounts?
Four categories of eligible services have been established by the FCC:
- Telecommunications Services
- Internet Access
- Internal Connections
- Basic Maintenance of Internal Connections
For a list of eligible services, see USAC’s website.
How is E-Rate Funding Obtained?
Schools and libraries apply for these discounts directly through USAC, which works in conjunction with service providers to make sure these discounts are passed onto program participants. See USAC's website. This website has a step-by-step overview of the process and an on-line application.
After the funding decision has been reached by USAC, the service provider as well as the applicant will receive a notification of funding commitments.
The applicant must notify the service provider of how they would like to receive their funding:via a recurring discount on their monthly bill or a reimbursement check. Special E-Rate language should be included in the contract addressing the billing/discount option selection.
What is the Rural Health Care Program (RHCP)?
This program is administered by USAC to provide reduced rates to rural health care providers (HCPs) for telecommunications services and Internet access charges related to the use of telemedicine and wellness.
The level of support depends on the location and the type of services chosen and is calculated individually for each health care provider. A health care provider can save on services it already has, upgrade current services or install new services.
Following is a summary of the program. For more details, see USAC's website.
All HCPs or consortia of HCPs seeking to participate in the Rural Health Care Program must complete the Description of Services Requested and Certification Form (Form 465) to request bids from service providers for services.
After USAC reviews the form and determines it is complete, it is posted on the USACwebsite and a letter is sent to the health care provider to confirm the posting.The posting invites service providers to bid to provide services.The posting date starts the 28-day competitive bidding process. All health care providers seeking support must complete the 28-day posting period requirement before entering into an agreement to purchase services with a service provider.
Once the service providers and services are selected, the health care provider must complete and submit the Funding Request & Certification Form (Form 466) and/or an Internet Service Funding Request & Certification Form (Form 466-A). These forms identify the type(s) of service ordered, the cost of each, the service provider(s) selected and the terms of any service agreements. The health care provider must certify on this form that the selections were the most cost-effective offers received.
USAC then reviews the Form 466 and/or 466-A packet for accuracy. Upon approval, USAC will mail the health care provider a Funding Commitment Letter (FCL) and a copy of the Receipt of Service Confirmation Form (Form 467). A copy of the FCL is also sent to the service provider.
After the provider initiates service, the health care provider must submit Form 467 to USAC. Once Form 467 is received, reviewed, and approved, USAC will send the health care provider and its service provider a health care support schedule. At this point, the service provider can begin crediting the discount on the monthly bill of the health care provider or issue a check for the discount. As soon as the service provider issues a credit or check to the health care provider, the service provider can invoice USAC.
Reimbursement from USAC for the discounts provided is issued via check or direct deposit.
For more detail on the process, visit USAC's website. There you will also find forms and tips. You can also contact tw telecom's RHCP specialist, Pam Quade.
What is the California Teleconnect Fund (CTF)?
The California Teleconnect Fund (CTF) Program was established to provide a 50% discount on selected telecommunications services to qualifying schools, libraries, government-owned and operated hospitals and health clinics, and community based organizations. For schools and libraries, the 50% discount is applied after their E-Rate funding.
The following organizations are eligible for these discounts:
- Public or nonprofit schools that provide elementary or secondary education and that have endowments of under $50 million.
- Libraries eligible to participate in state-based plans for funds under Title III of the Library Services and Technology Act.
- Hospitals and health clinics that are owned and operated by a municipal or county government or a hospital district.
- Community Based Organizations (CBOs) that offer health care, job training, job placement, or educational instruction.
- CBOs offering access to and training in the Internet and other technologies
The eligible entity may apply for the discounts with CTF by filling out the Service Discounts Certification Application. CTF reviews the application and notifies the applicants of the status of their application. Upon approval, a letter is sent to the applicant and the applicant must notify the service provider. The service provider must then set up a recurring monthly discount on the eligible entity’s bill. Any customers receiving CTF funding must elect for the net billing option. The CTF discount is calculated after all other discounts have been applied for the eligible services, per CTF guidelines.
For more information, forms and processes, please check the California Public Utilities website or contact tw telecom’s CTF specialist, Pam Quade.