Managing the Cost of Connectivity
E-Rate is a Federal Communications Commission (FCC) program that makes telecommunications and information services more affordable for eligible schools and libraries. The program is administered by the Universal Service Administrative Company (USAC) and receives funding from the Universal Service Fund. With this funding, E-Rate provides discounts to eligible schools and libraries for telecommunications, Internet services, and internal connections.
E-Rate discounts range from 20 to 90 percent of the costs of eligible services and are determined by the level of poverty and the rural or urban status of the school district or library system.
How does the E-Rate program work?
An eligible school or library identifies services it needs and submits a request for competitive bids to the Universal Service Administrative Company. USAC posts these requests on its website for vendors’ consideration. After reviewing its offers, the school or library selects its preferred vendor(s) and applies to USAC for approval for the desired purchases.
Next, USAC issues funding commitments to eligible applicants. When a vendor provides the selected services, either the vendor or the applicant submits requests to USAC for reimbursement
of the approved discounts.
Products and services eligible for E-Rate Program discounts are divided into Category One
and Category Two.
- Category One provides funding for Data Transmission Services (bandwidth) and Internet Access.
- Category Two consists of the internal connections equipment, and services necessary to bring broadband into, and provide it throughout, schools and libraries.
Connections are limited to broadband connections used for educational purposes within, between, or among instructional buildings that comprise a school campus or library branch, basic maintenance of these connections, and services that manage and operate owned or leased broadband internal connections.
- The service types included in Category Two are Internal Connections, Managed Internal
Broadband Services, and Basic Maintenance of Internal Connections. - The highest discount level for Category Two services is 85 percent. Applicants eligible for a 90 percent discount for Category One services will be eligible for an 85 percent discount for Category Two services. Other discount levels will not change.
For more information, visit the Resource Library.
