A $5 billion bounty: How to use E-rate support for Wi-Fi

The E-rate program will provide $5 billion over the next five years to help schools and libraries install Wi-Fi and other technologies needed to deliver broadband within their buildings; here’s how:

The Federal Communications Commission’s Seventh Order changes the description of these services from “Priority 2” to “Category 2.” To spread the Category 2 funding to the broadest number of applicants possible, the FCC has taken two key steps: (1) It has limited the maximum discount on these services at 85 percent, and (2) it has capped the amount of funding that applicants can receive on these services within a five-year period. To ensure that smaller schools can buy the minimum amount of Wi-Fi gear they need, the FCC created a “funding floor” of $9,200 per building.

The FCC’s Seventh Order transforms the E-rate from a telecommunications program into a broadband program that supports the delivery of high-speed Internet service to and within school buildings. Funding for all voice-related services -- including plain old telephone service, toll-free service, and even voice over IP (VoIP) -- will be phased out over five years. Because of this five-year cap, K-12 technology leaders will have to think strategically about their Wi-Fi needs -- and they should look at purchasing equipment with a five-year life cycle in mind.