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    CSM E-Rate Alert 7.9.14

    “The Time is Almost Here – E-Rate Reform Order” (07.09.14)

    After a year of public comment on the E-rate 2.0 reform, the FCC is slated to vote on the first of multiple anticipated orders that will restructure the E-rate program for the future. The meeting will be broadcast online this Friday (July 11) at 10:30 a.m. EDT at http://www.fcc.gov/live

    These proposed changes will have dramatic impact on all county office and school district budgets.  Below is a preview of some of the basic concepts of the E-rate 2.0 Order. Please note these are subject to change before the final Order is released due to internal negotiations occurring within the FCC, up to the time the Order is published. If and when the Order is approved and released to the public, rest assured that you will receive specific information from our consultants as to how these changes will impact you in the upcoming years.

    • Priority One 1 becomes Category 1
      • Support for voice services will be phased out over 4 years
        • All voice services phased out – local and long distance, cellular, VoIP
        • Phase out of voice is a 20% reduction in the school district’s discount per year
      • E-mail, web hosting, voicemail, paging no longer eligible starting in Funding Year 2015
      • Category 1 funded under the current cap indexed by inflation each year
      • Category 1 will continue to fund broadband services – Internet access, high-speed data lines, fiber, wide area networks, and mobile broadband
    • Priority Two becomes Category 2
      • Predictable set-aside for Category 2 separate from Category 1 - $1 billion in 2015 and $1 billion in 2016
      • Per student budget per school for on-campus WiFi
        • $150 per student (pre-discount) over a 5 year period OR ($30.00 per student (pre-discount) per year.
        • Both owned managed WiFi solutions funded
      • Budget is for a 5 year period
      • Maximum 80% E-Rate discount
    • Districtwide discount – discounts no longer calculated by school
    • Simpler application for multi-year contracts
    • Technology Plan requirement eliminated
    • Addresses Community Eligibility Provision using a standard multiplier of 1.6


    There is an expectation that the proposed Order will be adopted by the Commission on Friday however, there is also a distinct possibility that it will not pass. If that happens, we are really not sure what the next steps will be but rest assured, we will keep you apprised as more information is available to us.

    If you have any questions or concerns about your specific situation, please contact your CSM Consultants right away!

    As always, we welcome your feedback and comments and if you have an idea for an alert or some other topic of discussion, be sure to pass it along to your dedicated CSM Team.

    CSM E-Rate Team

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