1. Service Provider Training Schools and Libraries Division
Eligible Services
Service Provider Training
Schools and Libraries Division
April 18, 2007 – Atlanta • April 25, 2007 – Chicago

2. Overview Eligible Services List When to Cost-Allocate
Service Substitutions
The Importance of Clarity

3. The Eligible Services List
ESL History
Public Comment Period
Introduction to the Categories of Service
Special Eligibility Conditions
On-Premise Priority One Equipment
Wide Area Networks
Amortization

4. History Why was the Eligible Services List created?
As a reference for participants in the program to use to find out what E-rate will support
How is the Eligible Services List created?
Input from FCC Orders, USAC, and recommendations from the Public Comment Period
When does the Eligible Services List get posted?
The list will be posted at least 60 days prior to the opening of the filing window

5. Public Comment Period Things you can comment on: Note: Why comment?
What services are eligible under the Commission’s current rules
Things that can make the list more user friendly
Note:
This period is not intended to be a vehicle for changing FCC rules and policies
Why comment?
This is your opportunity to directly impact the ESL
If the type service or product you’re providing is not on the list, it may not be funded

6. Categories of Service Telecommunications
The transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received.
Examples: ATM, T-1, Centrex, Local and Long Distance Telephone Service, Cellular Service and Paging Service

7. Categories of Service Internet Access
Basic conduit access to the Internet or for services that are an integral component part of basic conduit access.
Examples: T-1, DSL, DS-3, and Wireless service
Eligibility also extends to and Web hosting services
Rule of thumb:
We fund the conduit to the Internet
NOT content on the Internet

8. Categories of Service Internal Connections
Components at the applicant site that are necessary to transport information to the school or library.
Examples: Access Points, Routers, Switches, Hubs, Wiring, PBXs and Codecs
We will fund the items that get the information to the classroom or room in the library, not the end-user equipment such as telephones or laptops

9. Categories of Service Basic Maintenance of Internal Connections
Ensures the necessary and continued operation of eligible internal connection components at eligible locations.
Ex: Repair and upkeep of eligible hardware, wire and cable maintenance.
We will fund basic technical support of eligible hardware. We will not fund end-user support such as a student calling a help desk for technical assistance.

10. Categories of Service Miscellaneous
Entries in this section should reflect the same category as the product or service being installed or obtained.
Ex. Installation, training, shipping charges, and taxes
Duplicative services are not eligible. Any service that is duplicative of a service already requested or being used by the applicant will not be eligible.
Training is only eligible for eligible products or services and for eligible users

11. Special Eligibility Conditions
This section contains information on the following:
Ancillary use, Cost Allocation, Eligible Users and Locations, Internet Access with Ineligible Features, Leased Wide Area Network (WAN) Infrastructure, the Two-in-Five Rule, WANs, WAN vs. LAN Components.

12. On-premise Priority One Equipment
What is it???
Equipment located on the applicant’s premise is presumed to be Internal Connections.
However, the FCC’s Tennessee Order establishes that this presumption can be rebutted under certain conditions as part of an end-to-end Priority One Service.

13. Conditions of the Tennessee Order
The leased on-premise equipment is an integral component of a Telecommunications or Internet Access service.
The on-premise equipment will be provided by the same service provider that provides the eligible telecommunications or Internet access service of which it is a part.
Responsibility for maintaining the equipment rests with the service provider, not the school or library.
Ownership of the equipment will not transfer to the school or library in the future, and the relevant contract or lease does not include an option to purchase the equipment by the school or library.

14. Tennessee Order Cont’d
5. Upfront, capital charges of the eligible on-premise equipment are less than 67% of total charges (recurring plus non-recurring) in the funding year.
6. The equipment will not be used by the school or library for any purpose other than receipt of the eligible telecommunications or Internet access service of which it is a part.
7. The Local Area Network of the school or library is functional without dependence on the equipment.
8. There is no contractual, technical, or other limitation that would prevent the service provider from using its network equipment in part for other customers

15. On-Premise Equipment
Is it possible for this Router to be eligible as Priority One equipment?

16. On-Premise Equipment
Is it possible for this Router to be eligible as Priority One equipment?

17. On-Premise Equipment
Is it possible for this Router to be eligible as Priority One equipment?

18. On-Premise Equipment
Is it possible for this Router to be eligible as Priority One equipment?

19. Wide Area Networks
Definition
Exclusions
WAN Diagrams
Amortization

20. Wide Area Networks (WANs)
FCC’s definition:
A wide area network (WAN) is a voice, data, or video network that provides connections from one or more computers or networks within an eligible school or library to one or more computers or networks that are external to such eligible school or library.

21. WANs Cont’d Are there any exclusions?
Yes, excluded from this definition is a network that provides connections between or among buildings of a single school campus or between or among buildings of a single library outlet or branch, when those connections do not cross a public right of way.

22. Wide Area Network???

23. Eligible Telecommunications WAN?

24. Eligible Internet Access WAN?

25. Why is this Ineligible?

26. Amortization
Eligible telecommunications services and Internet access can include service provider equipment costs and/or a non-recurring charge for capital investment by the service provider. However, in cases where the upfront or non-recurring charge is greater than $500,000, this charge must be prorated over a period of at least three years.

27. Cost Allocation
Why and When
How
Examples

28. Cost Allocation Why and When should I Cost Allocate?
When a product or service contains ineligible components, a cost allocation may be used so that support can be provided for the eligible portion.

29. Cost Allocation How do I cost allocate?
Several methods of cost allocation can be used, but they must be based on tangible criteria that provide a realistic result.

30. Cost Allocation Example 1:
If you are installing the following: Routers, switches, a PBX, and an ineligible Paging system
The paging system should have the costs associated with its installation removed from the request. This could be achieved by providing the typical number of hours it takes to install the system and the cost per hour.

31. Cost Allocation Example 2:
Say you’re providing an eligible web-hosting and service that contains ineligible web creation software
If there is no separate cost that can be removed for the web creation software the straight line method can be utilized. Of the three services web hosting, , and software, 2/3rds are eligible, therefore 1/3rd should be removed from the request.

32. Cost Allocation Example 3:
If a school is sharing a telephone line with their church
Applicants can submit an estimate of the percent of use at each location in order to obtain funding for the eligible portion only.

33. Service Substitutions
Definition
Rules
Global Service Substitutions
FAQ’s
Helpful Hints

34. Service Substitutions
A service substitution is a change in the products and/or services specified in the Services Ordered and Certification Form, FCC Form 471. In certain limited circumstances, applicants or service providers may request and be approved for service substitutions.

35. Global Service Sub
A Global service substitution can involve a product and/or service that is being discontinued, has a model number change, or is being replaced. In this case, the manufacturer or service provider may submit notification to USAC that the product or service is being changed, along with a listing of one or more replacement products or services.

36. Global Service Sub FAQ’s
Can I substitute anything?
Service provider-initiated service substitutions are designed to accommodate replacements that USAC can substantiate are near-identical.
How do I benefit from submitting a Global Service Sub?
You will be paid quicker. An Invoice with equipment different than the 471 requested equipment are rejected. Invoices that have the new product on file will not be rejected, which means quicker payment and less additional work to re-file an invoice.

37. Global Service Sub FAQ’s
Do I receive any deadline extensions?
Since a service provider-initiated service substitution does not reference any specific funding request, such service substitutions will not result in a change to an applicant's funding commitment, and no time extension for the completion of non- recurring services is provided under this approach.
Can I specify applicants this Global sub affects?
No. You can submit a batch of individual service sub requests which MUST be signed by the applicants.
Go to visit the Reference Area, Service Substitutions. Relevant info is in section two.

38. Helpful Hints
Be sure to include your contact information, e.g. Name, phone number, fax and .
If submitting multiple products, track it with a spreadsheet showing your end-of-life/replacement products. Providing a digital copy can drastically improve processing time.

39. The Importance of Clarity
Put on your PIA reviewer shoes and tell me what you think of the following scenarios

40. The Importance of Clarity
Scenario #1
An applicant’s Priority One Service mentions equipment
Scenario #1: If you were the one reviewing this request for eligibility, what would you want to know? Where is the equipment located? If on-premise make and model.

41. The Importance of Clarity
Scenario #2
PIA receives a request for Dark Fiber Service with no mention of the provision of modulating electronics

42. The Importance of Clarity
Scenario #3
PIA receives a telephone bill that gives no detail but states there are other charges

43. Summary
Know where your services and products fit in the Eligible Services List
Comment on the ESL
Understand the Special Eligibility Conditions
Utilize the ability to submit Service Substitutions if applicable
Provide clear information as to what services or products you are supplying

44. The End

45. Questions???