Eligibility of Bundled Components Under the Schools and Libraries Program

In this public notice, the Federal Communications Commission’s Wireline Competition Bureau (Bureau) seeks comment on a proposal to clarify the schools and libraries universal service support program (informally known as the E-rate program) requirements for bundling devices, equipment and services that are ineligible for E-rate support (“ineligible components”) with E-rate eligible services and products.

In 2012, the Bureau sought comment on a petition filed by the State E-rate Coordinators Alliance (SECA) seeking clarification of how the FCC’s rules requiring cost allocation of ineligible components aligns with language in the Bureau's 2010 Gift Rule Clarification Order that allowed, under limited circumstances, the bundling of ineligible end-user devices and equipment without cost allocation. Having considered the comments filed in response to the SECA Petition Public Notice, the Bureau now proposes and seeks comment on additional clarifications to remove any potential uncertainty regarding the Commission’s requirement for applicants to cost allocate ineligible components when those ineligible components are bundled with eligible services.

[CC Docket No. 02-6; GN Docket No. 09-51]