E-rate update

Citation

(1999), "E-rate update", The Bottom Line, Vol. 12 No. 3. https://doi.org/10.1108/bl.1999.17012cab.002

E-rate update

Keywords: Telecommunications, Internet, Children, Federal government, Government departments

The e-rate is still big in the news, and the funding continues in spite of naysayers. On May 27 the Federal Communications Commission (FCC) decided by a three to two vote to collect $2.25 billion to provide libraries and schools with discounts for telecommunications and Internet access. FCC Chairman William Kennard said just before the vote, "If we take this step to fund the e-rate to its cap, we will immeasurably improve the lives of millions more children." Kennard had shown particular interest in a usage plan suggested in a letter to him from the Department of Commerce. He noted that "helping parents use technology in the home is only one part of using it responsibly. We also have to look at how the Internet is being used away from the home in our nation's schools and libraries..." The suggestion was to require schools and libraries to include an acceptable use plan on accessing the Internet as part of the technical plans they submit for e-rate money. "We're beginning this process and undertaking all these efforts because as the government's expert on communication, we see it as our duty - as guardians of the public interest - to make information on innovations like the V-chip and filtering software available to America's parents," he [Kennard] said.

The $2.25 billion should allow the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC) to "allocate support at a level equal to last year's." All qualified applicants will receive discounts on telecommunications services and Internet access, but discounts for internal connections will likely reach only those qualifying for a discount of 70 percent or more. There have been over 32,000 applications received for e-rate discounts in year two.

While Commissioners Susan Ness and Gloria Tristani joined Chairman Kennard in voting for the $2.25 billion collection level, Commissioners Harold Furchtgott-Roth and Michael Powell, both of whom see merit to the program, cast votes against increased funding for e-rate discounts. Furchtgott-Roth voted against it because he felt the program operates outside the "parameters of law." Commissioner Powell expressed "shadows of doubt" about the program, including an outstanding lawsuit by GTE and a US Court of Appeals decision requiring the FCC to reconsider access charge reductions. In response to Powell's "What's the hurry?" Commissioner Tristani replied, "The rush is that our children do not have equal opportunity in this country." Earlier, Trudy Jaques, assistant director of the East Baton Rouge (LA) Parish Library, had described how the e-rate was helping her community. "Public libraries have always bridged the gap between those who can afford books and information and those who cannot," she said. "The Universal Service Fund helps us to continue that role in the Information Age."