New Priorities for E-rate Funding?

[Commentary] The Federal Communications Commission created the E-Rate program in response to the Telecommunications Act of 1996 which required the FCC and the states to ensure that affordable, quality, telecommunications services are available to all Americans. At the time, the FCC provided eligible schools and libraries discounts on the purchase of all commercially available telecommunications services, Internet access, and internal connections. The discounts range from 20% to 90%, with the higher discounts being provided to the most disadvantaged schools and libraries and those in high cost areas. Total support for schools and libraries was capped. In addition, the FCC created a two-tier priority system to encourage the use of E-Rate funding for basic Internet connectivity. But today, few schools are able to receive support for internal connections. Lack of internal connections funding -- due to increasing restrictions on the availability of priority two support -- have become a barrier to adoption of higher speed connections for many schools and libraries. In its current E-rate reform proceeding, the FCC is seeking comment on whether it should more fundamentally shift the way it prioritizes E-rate support by eliminating the distinction between priority one and priority two services. Under this approach the FCC would instead allow schools and libraries to choose from one consolidated menu of services.