Republicans Congressmen Want Cost Analysis Of E-Rate Revamps

The Republican leadership of the House Commerce Committee and ranking members of the Democrat-led Senate Commerce Committee have asked the Federal Communications Commission to refer any expansion of the E-rate program to the Federal-State Joint Board on Universal Service. In a letter to FCC Chairman Tom Wheeler, the legislators expressed concerns about the dollar signs and zeroes that might be attached to the so-called E-Rate 2.0 proposals. They say that the contribution factor to the fund -- which subsidizes advanced telecommunications service to schools, libraries and other anchor institutions -- has risen from 9.5% in 2009 to 16.4% in the first quarter of 2014, which they point out consumers wind up paying.