Carriers Say More Changes Are Needed in ESL Proposed by USAC

“Most of the latest proposed updates to the E-rate Eligible Services List are good changes that the Commission should adopt,” Verizon and Verizon Wireless said in a filing. “As proposed, expanding or clarifying E-rate eligibility for text messaging, interconnected VoIP services, and wireless local area network services is particularly useful as schools and libraries increasingly rely on these next-generation products and services.” But “the Commission should also adopt other ESL changes to reflect more accurately the evolving communications needs of schools and libraries,” Verizon said.

AT&T asked for two changes, involving wireless service. The carrier asked the FCC to revise the guidelines to guarantee that wireless data services, filed under the telecommunications category, will be considered eligible services for E-rate reimbursement. “Some cellular data plans involve data transfer only, but do not involve Internet access,” AT&T said. “For example, AT&T Commercial Connectivity Service does not access the public Internet. It is unclear, based on the nature of the services involved in these plans and USAC’s treatment of these services to date, how the cellular data-only plans should be categorized when applicants file for E-Rate discounts.”

AT&T also asked that some blast or broadcast messages be considered eligible, if sent to a limited number of users and not part of a hosted service. “There is clearly a difference between a mass, 20,000 recipient announcement of a vice presidential running mate sent via a hosted messaging service, for example, and a 20 person parent-teacher school association linked up via a user-created text list,” the carrier said.

Verizon and Verizon Wireless sought similar changes. But they also asked that the rules be revised to clarify that wireless routers are included on the eligible services list. The rules should be updated to make clear that the “array of learning tools” that make virtual classrooms possible and allow students to do research and homework outside classrooms are covered, they said. “Virtual classrooms enhance a school’s ability to offer all students opportunities to access the curriculum,” the companies said. “Other mobile services also permit student data, educational assessment information, and emergency directives and planning information to be accessed off-premises, in a secure manner, which increases the efficiency and productivity of the educational process. Such wireless Internet services and applications are not necessarily ‘used on library or classroom property,’ but nevertheless serve an important educational purpose.”

Sprint made similar arguments, saying that wireless telecommunications and Internet access services, as well as EVDO connection cards and related equipment should be eligible for E-rate funding. “The notion of ‘eligible locations’ is a wireline-centric concept which is increasingly divorced from the way Americans work, study and live,” Sprint said. “The school and library communities, like American society in general, are turning more and more to mobile technologies to engage in school and library-related work at all hours, and from many locations other than the classroom or the library.

IBM also asked for tweaks reflecting a changing communications landscape. The company asked that wireless local area network controllers and virtualization software be listed as eligible.

“IBM believes that virtualization has been eligible under previous ESL even though it has not been specifically listed,” the company said. “IBM’s view is that if the service is eligible; i.e., email, then the underlying technology for the delivery of the service is eligible. … Likewise, if the service is ineligible; i.e., application hosting, then the underlying technology would also be ineligible.”

The State E-rate Coordinators’ Alliance said USAC and the FCC had made timely changes and the commission took the right step in releasing the draft list for comment in early June. “In past years, the draft ESL typically has been released in mid to late July, and the final approved ESL has been issued midway through the fall,” the alliance said. “Applicants have found it very challenging to utilize and incorporate any changes to the ESL into their E-rate procurements which typically get underway in late summer and early fall.” But the group asked for one change. It asked the FCC to reject a recommendation that for the first time password protected and Intranet pages be eligible for funding. “In 2009, in response to inquiries, USAC issued guidance clarifying that only public website pages were eligible under webhosting,” the alliance said. “The FCC, after meetings with affected vendors, then directed USAC to overturn their guidance and declare that password-protected pages were eligible. USAC is now paying for educational portals, nearly in their entirety. We doubt this was the Commission’s intention when it deemed password-protected pages to be eligible.”

The VON Coalition asked the FCC to endorse USAC’s recommendation increasing the availability of VoIP services for schools and libraries participating in the federal E-rate program. “The expanded availability of VoIP services will provide substantial savings for schools and libraries,” the coalition said. “VoIP is saving consumers billions of dollars. In particular, schools and libraries whose VoIP services are provided over wide area networks or similar access configurations will see dramatic reductions in the cost of calls between callers on the network.”