Eligible Services

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Eligible Services

• Service Provider Training
• Schools and Libraries Division

April 18, 2007 Atlanta April 25, 2007
Chicago
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Overview

• Eligible Services List
• When to Cost-Allocate
• Service Substitutions
• The Importance of Clarity

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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

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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

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Public Comment Period

• Things you can comment on
• What services are eligible under the Commissions
  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 youre providing
  is not on the list, it may not be funded

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Categories of Service

• Telecommunications
• The transmission, between or among points
  specified by the user, of information of the
  users 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

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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 E-mail and Web
  hosting services
• Rule of thumb
• We fund the conduit to the Internet
• NOT content on the Internet

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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

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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.

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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

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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.

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On-premise Priority One Equipment

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

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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.

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Tennessee Order Contd

• 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

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On-Premise Equipment

• Is it possible for this Router to be eligible as
  Priority One equipment?

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On-Premise Equipment

• Is it possible for this Router to be eligible as
  Priority One equipment?

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On-Premise Equipment

• Is it possible for this Router to be eligible as
  Priority One equipment?

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On-Premise Equipment

• Is it possible for this Router to be eligible as
  Priority One equipment?

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Wide Area Networks

• Definition
• Exclusions
• WAN Diagrams
• Amortization

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Wide Area Networks (WANs)

• FCCs 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.

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WANs Contd

• 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.

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Wide Area Network???
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Eligible Telecommunications WAN?
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Eligible Internet Access WAN?
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Why is this Ineligible?
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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.

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Cost Allocation

• Why and When
• How
• Examples

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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.
  

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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.

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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.

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Cost Allocation

• Example 2
• Say youre providing an eligible web-hosting and
  email 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, e-mail, and software, 2/3rds are
  eligible, therefore 1/3rd should be removed from
  the request.

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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.

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Service Substitutions

• Definition
• Rules
• Global Service Substitutions
• FAQs
• Helpful Hints

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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.

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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.

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Global Service Sub FAQs

• 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.

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Global Service Sub FAQs

• 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 www.usac.org, visit the Reference Area,
  Service Substitutions. Relevant info is in
  section two.

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Helpful Hints

• Be sure to include your contact information, e.g.
  Name, phone number, fax and email.
• 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.
  manufacturerproducts_at_sl.universalservice.org

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The Importance of Clarity

• Put on your PIA reviewer shoes and tell me what
  you think of the following scenarios

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The Importance of Clarity

• Scenario 1
• An applicants Priority One Service mentions
  equipment

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The Importance of Clarity

• Scenario 2
• PIA receives a request for Dark Fiber Service
  with no mention of the provision of modulating
  electronics

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The Importance of Clarity

• Scenario 3
• PIA receives a telephone bill that gives no
  detail but states there are other charges

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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

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The End
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Questions???