1. 2018 Service Provider Training
Eligible Services
2018 Service Provider Training

2. AGENDA The service provider role in the process Eligible services
Eligible Fiber services
Locating a request for bids
Installation Periods
AGENDA
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3. Understanding the Service Provider Role
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4. Service Provider’s Role
Service providers play an important role responding to bid requests during the competitive bidding process and as well after the selection of services.
Responding to the FCC Form 470 and RFPs
Participation During the Application Process and PIA Review
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5. Service Provider’s Role – (Responding to the FCC Form 470 & RFPs)
To open a competitive bidding process, applicants post one or more FCC Forms 470 to the USAC website. Service providers can review and respond to bids based on the information contained in an FCC Form 470 and, if one is issued, a Request for Proposal (RFP) or similar bidding document.
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6. Service Provider’s Role – (Responding to the FCC Form 470 & RFPs)
During the competitive bidding process…
Service providers may not participate in the creation or submission process for the FCC Forms 470.
Communication with an applicant for additional information should not be generic and should be specifically related to the posted FCC Form 470/RFP.
Service providers should clearly identify partially or conditionally ineligible services.
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7. Service Provider’s Role – (During the Application and PIA Review)
After competitive bidding has closed and a agreement has been entered into, service providers may…
Assist applicants in preparing their FCC Form 471/Funding Request.
Stay aware of form submission deadlines and help remind applicant to timely file forms (e.g., FCC Forms 471 and FCC Forms 486).
Provide support to applicants by assisting in preparing replies to USAC’s questions or providing documentation.
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8. Requesting Confidential Treatment
Service providers may request confidential treatment for their responses.
In this case, service providers submit answers to the questions directly to USAC (not through the applicant).
Certain information is already protected from public disclosure as trade secrets and commercial or financial information under the FCC rules at 47 C.F.R. § 0.457(d).
If you believe that this is insufficient, you may request that information and documentation provided be protected from public disclosure or inspection through 47 C.F.R. §
See Requesting Confidentiality on USAC’s website for further details.
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9. Eligible Services
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10. Eligible Services
The eligible services list contains a general description of the products and services that will be eligible for discounts, along with additional helpful information such as eligibility conditions for each category of service for each specified funding year.
The eligible services list is published annually at least 60 days before the application filing window opens.
Every year there is a public comment period in which stakeholders may recommend additions and revisions to the ESL and provide feedback on the eligible services list.
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11. Eligible Services: Category One
Per the FY 2019 ESL, these consist of the services needed to support broadband connectivity to eligible schools and libraries. This category consists of the services that provide broadband to eligible locations including data links that connect multiple points, services used to connect eligible locations to the Internet, and services that provide basic conduit access to the Internet.
Data Transmission Services
Internet Access
Note: Voice Services were subject to a phase down per the E-rate Order. Due to this phase down, voice services are no longer eligible in FY 2019.
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12. Eligible Services: Category One Examples
Broadband over Power Lines
Cable Modem
DS-1, DS-2, DS-3, DS-4
Ethernet
Leased Dark Fiber (including dark fiber indefeasible rights of use (IRUs) for a set term)
Self-Provisioned Network
Satellite Service
Microwave
Multi-Protocol Label Switching (MPLS)
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13. Eligible Services: Category Two
Per the FY 2019 ESL, these consist of the internal connections needed for broadband connectivity within schools and libraries. Support is limited to the internal connections necessary to bring broadband into, and provide it throughout, schools and libraries. These are broadband connections used for educational purposes within, between, or among instructional buildings that comprise a school campus or library branch, and basic maintenance of these connections, as well as services that manage and operate owned or leased broadband internal connections (e.g., managed internal broadband services or managed Wi-Fi).
Internal Connections
Managed Internal Broadband Services (MIBS)
Basic Maintenance of Eligible Broadband Internal Connections (BMIC)
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14. Eligible Services: Category Two Services Summary
Internal Connections (IC) - The equipment and services used to bring broadband into, and provide it throughout, schools and libraries (e.g., internal routing and broadcasting functions).
Managed Internal Broadband Services (MIBS) – Third-party operation, management, and monitoring of eligible broadband internal connections (owned or leased equipment).
Basic Maintenance of Eligible Broadband Internal Connections (BMIC) – Basic maintenance and technical support appropriate to maintain reliable operation for eligible broadband internal connections.
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15. Eligible Services: Category Two Examples:
Cabling
Access Point
Switch
Router
Services provided by a third party for the operation, management, and monitoring of eligible broadband internal connections
Repair and upkeep of eligible hardware
Wire and cable maintenance
Basic technical support including online and telephone- based technical support
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16. Eligible Fiber Services
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17. Eligible Fiber Services
The FCC’s 2014 Second E-rate Order provided additional flexibility to schools and libraries seeking to access affordable high-speed broadband connections.  
The Order amended the E-rate program's eligible services list to equalize the treatment of lit and dark fiber and made special construction charges beyond the applicant's property line and modulating electronics to light dark fiber eligible for Category One support. 
When cost-effective, the Order also allows for funding of applicant-owned broadband networks.
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18. Eligible Fiber Services
Leased Dark Fiber
The E-rate applicant leases capacity (i.e., a specific number of strands) on a service provider-owned and maintained fiber network. The applicant pays separately for modulating equipment to light the fiber in order to transmit data over that fiber.
Self-Provisioned Networks*
Complete applicant ownership of a high- speed broadband network. The applicant hires a vendor to construct the network or a portion of the network, and thereafter owns and maintains that network or portion of the network, including all of the fiber strands and conduit.
Leased Lit Fiber
A fiber-based broadband service where the service provider owns and manages the network, and the E-rate applicant pays a recurring fee to have data transported over the network.
*Note: Although included as a fiber option, applicants may seek support for self-provisioned networks using technologies other than fiber, such as cable or microwave.
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19. Eligible Fiber Services
Applicants may request E-rate support for the following charges (by type of service):
Leased Lit Fiber
Monthly recurring charges
Special construction charges
Basic installation charges
Leased Dark Fiber
Recurring dark fiber lease or IRU payments
Special construction charges
Network equipment
Maintenance and operations charges
Basic installation charges
Self-Provisioned Networks
Special construction charges
Network equipment
Maintenance and operations charges
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20. Eligible Fiber Services: Special Construction
Special construction charges are the upfront, non-recurring costs of deploying new fiber or upgraded network facilities to eligible entities.
Special construction charges eligible for Category One (C1) support consist of three components:
Construction of network facilities;
Design and engineering; and
Project management.
Applicants may seek funding for special construction charges in connection with leased lit fiber, leased dark fiber, and self-provisioned networks.
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21. Eligible Fiber Services: Special Construction
Special construction charges do not include:
Charges for Network Equipment necessary to light fiber (i.e., modulating electronics and other equipment necessary to make a C1 service functional), or maintenance and operations (M&O) of the fiber.
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22. Eligible Fiber Services: State Match Funding
If a state provides eligible schools and libraries with funding for special construction charges for high-speed broadband that meets the FCC's long-term connectivity targets, the E-rate program will increase an applicant's discount rate for these charges up to an additional ten percent to match the state funding on a one-to-one dollar basis.
State funding can be funds authorized directly by a state legislature or provided by one or more state agencies.
For Tribal schools and libraries, the E-rate program will also match special construction funding provided by states, Tribal governments, or other federal agencies.
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23. Eligible Fiber Services: State Match Funding
State Match Eligibility Requirements:
The broadband service must meet the FCC's long-term targets.
The funding must be from an eligible source.
The terms and conditions associated with the state funding must not conflict with E-rate rules.
The total amount of support, including matching funds, may not exceed 100 percent of the cost of the project.
State match funds are available for special construction only – applicants should create separate funding requests on their FCC Forms 471 for special construction.
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24. Eligible Fiber Services: Installment payments
Applicants can request to enter into installment payments plans to pay the non-discount share of costs for special construction.
Applicants must indicate their interest in installment payment plans on their FCC Form 470.
Service providers are not obligated to offer installment payment plans to applicants.
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25. Eligible Fiber Service: Installment Payments
If a service provider chooses to offer an installment payment plan, they must disclose all material terms, including the interest rate and the term of the payment plan.
Payment plans may not exceed four (4) years.
Interest and finance charges are not E-rate eligible charges and must be deducted from the funding request.
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26. Eligible Fiber Services: Competitive Bidding Requirements For Applicants
Leased lit fiber:
Post an FCC Form 470 that specifies leased lit fiber as the requested service.
Use the “Leased Lit Fiber (with or without Internet Access)” drop-down option on the FCC Form 470.
Leased dark fiber:
If you request bids for Leased Dark Fiber solution you must also request bids for a Leased Lit Fiber solution.
Use the “Leased Dark Fiber and Leased Lit Fiber” drop- down option on the FCC Form 470.
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27. Eligible Fiber Services: Competitive Bidding Requirements for Applicants
Self-provisioned networks
If you request bids for a Self-Provisioned Network solution, you must also request bids for services provided over third-party networks.
Utilize the “Self-Provisioned Network (Applicant Owned and Operated Network) and Services Provided Over Third-Party Networks” drop-down option on the FCC Form 470.
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28. Locating a Request for Bids
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29. Locating a Request for Bids
Applicants initiate the required competitive bidding process by submitting the FCC Form 470 in the E-rate Productivity Center (EPC).
In EPC, the FCC Form 470 has a drop-down menu of eligible services; applicants must select the services for which they would like to seek bids.
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30. Locating a Request for Bids: FCC Form 470 Drop Downs
Drop-Down Options
Description
Internet Access: ISP Service Only(No Transport Circuit Included)
When only seeking bids for commercial internet access service. Note: this does not include any type of transport circuit.
Internet Access and Transport Bundled (Non-Fiber)
When seeking bids for services provided over non-fiber-based service-provider-owned networks that include commercial internet access service (e.g., copper, microwave, or coaxial cable, but excluding Leased Lit Fiber).
Leased Lit Fiber (with or without Internet access)
When seeking bids for either a bundled solution of internet access (delivered over lit fiber) or transport only (delivered over lit fiber).
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31. Locating a Request for Bids: FCC Form 470 Drop Downs
Drop-Down Options
Description
Leased Dark Fiber and Leased Lit Fiber
When seeking bids that include Leased Dark Fiber. This option ensures compliance with the competitive bidding requirement that applicants requesting bids for Leased Dark Fiber also request bids for Leased Lit Fiber.
Self-Provisioned Network (Applicant Owned and Operated Network) and Services Provided Over Third-Party Networks
When seeking bids for services provided over a self- provisioned network on a technology-neutral basis (e.g., fiber, copper, microwave, or coaxial cable). This option ensures compliance with the competitive bidding requirement that applicants requesting bids for a Self-Provisioned Network also request bids for services provided over Third Party Networks.
Transport Only – No ISP Service Included (Non-Fiber)
When seeking bids for services provided over non-fiber-based service-provider-owned networks that do not include commercial internet access (e.g., copper, microwave, or coaxial cable, but excluding Leased Lit Fiber).
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32. Locating a Request for Bids: FCC Form 470 Drop Downs
Drop-Down Options
Description
Cellular Data Plan/Air Card Service
When only seeking bids for a commercial wireless data plan only.
Network Equipment
When seeking bids for modulating electronics or other equipment necessary to make a Category One service functional.
Maintenance & Operations
When seeking bids for maintenance and operations costs for Leased Dark Fiber or a Self-Provisioned network.
Other
When the service you want is not otherwise listed.  Be sure to provide additional details about this service by uploading an RFP document.
Note: Effective FY2019, voice services are no longer eligible for E-rate support. Voice Services and Cellular Voice options have been removed from the drop-down list effective on the FY2019 FCC Forms 470.
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33. Locating a Request for Bids: Service Examples
Drop-Down Options
Service Examples
Internet Access: ISP Service Only(No Transport Circuit Included)
A school district has a self-provisioned WAN, and the high school acts as the district's internet hub. Because the district already owns circuits which can transmit internet access service to its schools, they seek only internet access (ISP service) that will terminate at the hub.
Internet Access and Transport Bundled (Non-Fiber)
A library located in a rural or mountainous area without fiber access seeks broadband internet access service provided over a non-fiber connection.
Leased Lit Fiber (with or without Internet access)
A library is looking for internet access service to be transmitted over a fiber circuit.
School A is looking for a dedicated fiber circuit to connect to School B (point-to-point) in order to transmit data between the two entities.
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34. Locating a Request for Bids: Service Examples
Drop-Down Options
Service Examples
Leased Dark Fiber and Leased Lit Fiber
A school district is interested in setting up a WAN to connect its schools using leased dark fiber. Because the district seeks bids for leased dark fiber, they must also request bids for leased lit fiber to compare the options.
Self-Provisioned Network (Applicant Owned and Operated Network) and Services Provided Over Third-Party Networks
A school district is constructing a new elementary school building next to their existing middle school building. They would like to provide connectivity between the two campuses, which are located on the same property. The school district is interested in the option to own and maintain the circuit that connects the buildings themselves.
Transport Only – No ISP Service Included (Non-Fiber)
School C is looking for a non-fiber circuit to connect to School D (point-to-point) in order to transmit data between the two entities.
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35. Locating a Request for Bids: Service Examples
Drop-Down Options
Service Examples
Cellular Data Plan/Air Card Service
A small charter school does not currently have a wireless local area network (WLAN), because it is cost prohibitive. The school would like 10 air cards and three data plans in order to access the internet on a cellular network, using their existing 13 mobile devices.
Network Equipment
A consortium wants to order new equipment for its members. The equipment is needed to light fiber for the consortium's existing self-provisioned fiber network. They seek bids on network equipment needed to keep their network functional.
Maintenance & Operations
A library system seeks maintenance for leased dark fiber, which is already used by the five libraries in the system. They seek bids from providers for maintenance and operations on their existing network.
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36. Installation Periods
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37. Installation Periods: Category One Non-recurring Services
Installation of all Category One non-recurring services (including special construction charges) may begin six months prior to the July 1 start of the funding year (i.e., or after January 1) if the following conditions are met:
Construction begins after selection of the service provider pursuant to a competitive bidding process that meets all E-rate requirements.
A Category One recurring service must depend on the installation of the non-recurring services (i.e., the installation of new connections is required to access the new recurring services).
The actual service start date for that recurring service is on or after the start of the funding year (July 1).
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38. Installation Periods: Category One Non-recurring Services
Example:
A library has successfully completed their competitive bidding process (including posting the FCC Form 470, waiting at least 28 days, and selecting a winning bidder) for a Category One service. The contract indicates that special construction, which is expected to take 3-4 months to complete, is needed to make the service functional.
The library can opt to start the special construction on or after January 1 prior to the start of the funding year.
This option can be used to ensure that special construction and the recurring service is operational during the funding year.
However, if the library chooses to go ahead before the receipt of the FCDL, they assume the risk that their funding requests may be denied or reduced.
Invoices for these services cannot be paid until the start of the funding year (i.e. July 1).
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39. Installation Periods: Category Two Non-recurring Services
Installation of Category Two non-recurring services may begin on April 1 prior to the July 1 start of the funding year.
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40. Installation Periods: Category Two Non-recurring Services
Example
A consortium of multiple districts has successfully completed their competitive bidding process (including posting the FCC Form 470, waiting at least 28 days, and selecting a winning bidder) to provide access points for their members. The consortium lead is concerned that they will not be able to install all of the access points in time for school to start.
The consortium may start their installation schedule on or after April 1 prior to the start of the funding year.
This option can be utilized to ensure that the access points are installed in time to meet their deadline.
However, if the consortium chooses to go ahead before the receipt of the FCDL, they assume the risk that their funding requests may be denied or reduced.
E-rate invoices for the services cannot be paid until the start of the funding year (i.e., July 1).
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41. Service Delivery Deadlines – Recurring Services
E-rate discounts for all recurring services must be in use by the end of the relevant funding year (i.e., June 30).
If the June 30 deadline is not met, the recurring charges will not be eligible for support under program rules.
There is no extension available for recurring charges.
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42. Service Delivery Deadlines – Recurring Services
Applicants may not receive E-rate support for:
Any recurring charges incurred before the start of the funding year (i.e., July 1).
Leased lit fiber services delivered outside the funding year (i.e., before July 1 or after June 30).
Any recurring charges for dark fiber until the fiber has been lit.
Any recurring charges associated with a self-provisioned network until the network is constructed and is in use.
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43. Service Delivery Deadlines – Non-recurring Services
The service delivery deadline for the implementation for non- recurring services (excluding special construction charges) is September 30 following the end of the funding year.
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44. Service Delivery Deadlines- Special Construction
Applicants may only request E-rate support for special construction charges related to leased lit fiber and leased dark fiber if the fiber is lit within the same funding year (i.e., by June 30) as the funding request.
Applicants may only receive E-rate support for special construction charges for a self-provisioned network if the network is constructed and is in use by the end of the same funding year as the funding request.
If the project is too large to complete in a single 12-month period, consider breaking the work into multiple applications over multiple funding years.
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45. Service Delivery Deadlines- Special Construction
If the size/scope of a build prevents the project from being completed in its entirety by the June 30 deadline, then the construction project may need to be broken up into stages.
Construction can be completed and the fiber lit for some of the eligible school and/or library locations in one year, and the completion of remaining connections to other eligible school and/or library locations in one or more subsequent funding year(s). 
The special construction charges associated with the infrastructure installed and lit within each funding year would be eligible for support in that funding year. 
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46. Special Construction- Deadline Extensions
Applicants may request a one-year extension to complete special construction and light the fiber (or use a self-provisioned network if another technology is employed), if the applicant can demonstrate that construction was unavoidably delayed due to weather or other reasons.
Examples of circumstances causing unavoidable delay include:
Unforeseen weather event or pattern resulting in saturated or frozen ground;
Natural disaster causing an unavoidable delay;
Scheduled delivery of required plant components do not arrive;
USAC issues an FCDL too late for applicant to complete special construction and light fiber by the end of funding year.
Deadline requests must be submitted by the end of the funding year (i.e., June 30).
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47. QUESTIONS?
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