THE FUTURE OF E-RATE

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THE FUTURE OF E-RATE NEW FOR 2005 PILOT ON-LINE PROGRAM FOR ELIGIBLE SERVICES FUTURE FCC ACTIONS  NPRM expected before the end of the year – Every-other year for internal connections – Discount matrix WASTE, FRAUD AND ABUSE TASK FORCE SUGGESTIONS Discount Matrix Suggested by WFA Task Force POVERTY LEVEL Measured by % of students eligible for the National School Lunch Program PRIORITY ONE URBAN LOCATION Discount PRIORITY ONE RURAL LOCATION Discount PRIORITY TWO URBAN LOCATION Discount PRIORITY TWO RURAL LOCATION Discount <1% 1%-19% 20%-34% 35%-49% 50%-74% 75%-100% 20% 40% 50% 60% 80% 90% 25% 50% 60% 70% 80% 90% 20% 40% 50% 60% 80% 80% 25% 50% 60% 70% 80% 80% WFA Task Force  Ceiling on Funding Requests  Enforcement and Compliance Issues – Strengthen the review process for the issuance of Service Provider Identification Numbers and the Eligible Telecommunications Provider designation.  Develop consultant disclosure practices WFA Task Force  Issues Involving Wasteful Incentives – Establish and publicize pricing thresholds that will be considered reasonable for common products and services. – Establish and publish service life guidelines for common products.  Add an additional Form 471 certification reflecting applicant agreement not to transfer equipment within the service life period without SLD waiver. WFA Task Force  Actively publicize best practices, bad practices, and E-rate achievement stories. – Include consultant practices – Provide greater disclosure about the actions of specific applicants and service providers. WFA Task Force  Competitive Bidding Issues – Modify the Form 470 to require the listing of all products and services needed, regardless of the existence of an RFP.  Issues of Inadequate Education – Increase resources for customer outreach. – Retain a larger percentage of PIA reviewers as permanent, rather than temporary, staff. QUESTIONS C0MMENTS

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