ARTICLE
14 January 2015

FCC Releases Second E-rate Order On Modernizing The E-rate Program

The FCC has released a Second E-rate Modernization Report and Order and Order on Reconsideration following up on the E-rate Modernization Order adopted in July.
United States Media, Telecoms, IT, Entertainment

The FCC has released a Second E-rate Modernization Report and Order ("Second Order") and Order on Reconsideration following up on the E-rate Modernization Order ("First Order") adopted in July.  Highlights of the Second Order include:

  • Expanding payment options for large non-recurring capital costs for high-speed broadband construction;
  • Decreasing restrictions on purchasing dark fiber;
  • Permitting schools and libraries to construct their own broadband facilities when such construction is the most cost-effective option;
  • Providing up to 10% more category one funding to match state funding for special construction charges for last-mile facilities;
  • Requiring certain recipients of Universal Service Fund ("USF") funding to offer broadband to schools and libraries located in the same area where the recipient receives high-cost support at rates reasonably comparable to similar services in urban areas;
  • Expanding the five-year budget for category two internal connections through 2019;
  • Adjusting the funding cap to $3.9 billion;
  • Directing the Universal Service Administrative Company ("USAC") to track and provide performance information on the Commission's policy changes; and
  • Clarifying deadlines for appeals of USAC decisions.

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