E-Rate and School Requirements (CIPA)
The E-rate as a Solution for Disadvantaged Schools
The e-rate, a subsidy for the costs of providing Internet connection to schools and libraries, was established by the Telecommunications Act of 1996. The more general purpose of this law is to ensure “universal telecommunication and information services” to all citizens of the country regardless of income or location. Elementary and secondary schools, health care providers, and libraries are specifically targeted within this legislation for access to “advanced telecommunications services” (Federal Communications Commission, 1997).
The e-rate is funded by charges to the telecommunications industry. Some argue that this charge represents a “back-door tax” levied without providing citizens the opportunity to approve the tax or control how the money is spent. Supporters argue that the intent was not to have the telecommunications industry pass on the cost to consumers, but to have the industry absorb these additional costs out of the savings allowed by regulatory changes that reduced access charges previously paid by long-distance companies. Thus, the funding mechanism for the e-rate is controversial (Department of Education, 1998). The program has also been subject to reports of fraud and waste that resulted in a temporary halt to the distribution of funds (Office of the Inspector General, 2004). Unfortunately, these concerns bring into question the future of the program. Like so many government programs, the e-rate is controversial. However, we are focused here on the opportunities it provide related to educational equity.
The e-rate is intended to provide discounts on hardware and services essential to the transmission of information, such as:
- Telephone connections
- Wiring for Ethernet connections
- Internet access charges through dial-up or leased line connections
- Equipment for wireless access
- Hardware required for Internet connections—routers, hubs, and computers used as servers
Schools are eligible for subsidies ranging from 20 to 90 percent, depending on the proportion of low-income students attending the school. Schools receiving the lowest reduction (20 percent) have less than 1 percent of the student body eligible for reduced-price lunches. Those schools eligible for the 90-percent reduction must have more than 75 percent of the students eligible for reduced-price lunches. Rural schools are eligible for slightly higher discounts because their telecommunication costs tend to be higher.
The e-rate is administered for the Federal Communication Commission by the Universal Service Administration Commission. This organization receives applications and decides how the available money will be awarded. Applying for e-rate money is not a trivial exercise. Schools need to file a technology plan that explains how the e-rate money will be used to improve educational services. This plan must also include an assessment of communications needs, provisions for staff development, and a strategy and budget for maintenance. A school must also take steps to show that eligible vendors will have an opportunity to compete to provide the services that the school is requesting (Department of Education, 1998).