================================================================= ALAWON Volume 7, Number 69 ISSN 1069-7799 June 12, 1998 American Library Association Washington Office Newsline In this issue: (117) lines) ACTION NEEDED: FCC ISSUES ORDER TO REFORM E-RATE _________________________________________________________________ ACTION NEEDED: FCC ISSUES ORDER TO REFORM E-RATE The Federal Communications Commission on June 12 issued an order (FCC 98-120) to revise the e-rate telecommunications discounts for schools and libraries. The FCC will freeze collection rates, extend the start-up phase over 18 months, and prioritize internal connections to the neediest. Other parts of the plan are consistent with FCC Chairman William Kennard's testimony at the June 10 Senate hearing (see http://www.ala.org/washoff/alawon/alwn7065.html). The FCC changed the initial funding period from 12 to 18 months, so that the next funding cycle would coincide with the operation of school-year calendars and school budget planning. The next annual funding cycle will begin on July 1, 1999. The plan would, in response to calls from Congress to lower the funds collected for this new part of universal service, freeze collection of funds from long distance carriers for the next four quarters at the current rate of $325 million per quarter. This amounts to $1.275 billion for the first year, or $1.9 billion through June 1999. The cap on annual collections remains unchanged at $2.5 billion. Schools and libraries should begin to receive discounts this summer. All approved applications received during the 75 day window will receive discounts on telecommunication services and Internet services for the full 18 months. For internal connections, applications will be prioritized to make certain that inside wiring goes first to the neediest applicants. It is expected that all applicants eligible for a 90% discount will receive full funding for internal connections, as well as most applicants eligible for an 80% discount. To revamp the administrative structure, the FCC is reducing immediately the salaries of the CEO's of the Schools and Libraries Corporation and the Rural Health Care Corporation. The FCC will quickly implement a plan to combine the SLC and the RHCC into one entity with the Universal Service Administrative Company. These steps would allow the school/library universal service discounts to move forward, although on a stretched out schedule; and many schools and libraries would be put on hold for a key part of the program--internal connections. The FCC order addresses the key points identified by the e-rate's Congressional critics, but Congressional reaction is still being gauged. ACTION NEEDED: Thank Congressional supporters of the e-rate, and keep in touch with legislators, especially those on Appropriations and Commerce committees, who control FCC funding and authority to operate. The messages remain consistent: 1. URGE LEGISLATORS TO SUPPORT THE E-RATE WITH NO FURTHER CUTS OR DELAYS. 2. PROVIDE DETAILS ON YOUR PLANNED USE OF THE DISCOUNTS. 3. DON'T HOLD SCHOOL KIDS AND LIBRARY USERS HOSTAGE TO POLITICS OR INDUSTRY DISPUTES. _________________________________________________________________ ALAWON is a free, irregular publication of the American Library Association Washington Office. To subscribe, send the message: subscribe ala-wo [your_firstname] [your_lastname] to listproc @ala.org. To unsubscribe, send the message: unsubscribe ala-wo to listproc@ala.org. ALAWON archives at http://www.ala.org/ washoff/alawon. Visit our Web site at http://www.alawash.org. ALA Washington Office 202.628.8410 (V) 1301 Pennsylvania Ave., NW, #403 202.628.8419 (F) Washington, DC 20004-1701 800.941.8478 (V) Lynne E. Bradley, Editor Deirdre Herman, Managing Editor Contributors: Carol C. Henderson All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits. =================================================================