[OPLINLIST] FYI: For those following E-Rate issues
Frank Atkinson
franka@ohcapcon.com
Mon, 4 Oct 2004 10:53:48 -0400
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TELECOM
=20
INTERNET GRANTS TO SCHOOLS HALTED AS THE FCC TIGHTENS THE RULES
=20
Public libraries and schools around the nation have suddenly stopped
receiving any new grants from the E-Rate program that is wrestling with =
new
rules on how it spends $2.25 billion each year to provide high-speed
Internet and telephone service. The moratorium began two months ago, =
with no
notice, and may last for months, causing significant hardships at =
schools
and libraries, say state officials and executives at the company that =
runs
the program. The suspension came after the FCC, in consultation with the
White House, imposed tighter spending rules that commission officials =
say
will make it easier to detect fraud and waste in the program. As much as =
$1
billion in grants the states say they expected to receive by the end of =
the
year may be affected, one official estimate says. That has led state
administrators to either take money from other educational programs or
postpone paying their phone and Internet companies. The tighter spending
rules also forced the Universal Service Administrative Company, the
nonprofit group that runs the program under the commission's oversight, =
to
hastily liquidate more than $3 billion in investments last week. The =
sale
generated a loss, but officials said they had not yet calculated the =
amount.
And the changes are expected to lead to higher charge imposed on =
telephone
companies - and passed on to consumers - later this year or early next =
year.
The increase may be necessary, senior officials at the universal service
company said, because of a cash squeeze created by the tighter spending
rules and an FCC decision over the last nine months to reduce the phone
companies' contributions to the E-rate program.
=20
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/10/04/business/media/04fcc.html
(requires registration)
=20
The Senate Commerce Committee will be discussing the E-rate program
tomorrow. See =
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1330
=20
=20
Frank Atkinson =
franka@ohcapcon.com
Rotunda Inc/Ohio Capitol Connection
http://www.rotundacollection.com <http://www.rotundacollection.com/>=20
21 W Broad St, Columbus Ohio 43215 http://www.ohcapcon.com
=20
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style=3D'font-size:10.0pt;font-family:"Courier =
New"'> </span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier =
New"'>TELECOM</span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier =
New"'> </span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier New"'>INTERNET GRANTS TO =
SCHOOLS
HALTED AS THE FCC TIGHTENS THE RULES</span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier =
New"'> </span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier New"'> Public =
libraries and
schools around the nation have suddenly stopped receiving any new grants =
from
the E-Rate program that is wrestling with new rules on how it spends =
$2.25
billion each year to provide high-speed Internet and telephone service. =
The
moratorium began two months ago, with no notice, and may last for =
months,
causing significant hardships at schools and libraries, say state =
officials and
executives at the company that runs the program. The suspension came =
after the
FCC, in consultation with the White House, imposed tighter spending =
rules that
commission officials say will make it easier to detect fraud and waste =
in the
program. As much as $1 billion in grants the states say they expected to
receive by the end of the year may be affected, one official estimate =
says.
That has led state administrators to either take money from other =
educational
programs or postpone paying their phone and Internet companies. The =
tighter
spending rules also forced the Universal Service Administrative Company, =
the
nonprofit group that runs the program under the commission's oversight, =
to
hastily liquidate more than $3 billion in investments last week. The =
sale
generated a loss, but officials said they had not yet calculated the =
amount.
And the changes are expected to lead to higher charge imposed on =
telephone
companies - and passed on to consumers - later this year or early next =
year.
The increase may be necessary, senior officials at the universal service
company said, because of a cash squeeze created by the tighter spending =
rules
and an FCC decision over the last nine months to reduce the phone =
companies'
contributions to the E-rate program.</span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier =
New"'> </span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier New"'>[SOURCE: New York =
Times,
AUTHOR: Stephen Labaton] <a
href=3D"http://www.nytimes.com/2004/10/04/business/media/04fcc.html">http=
://www.nytimes.com/2004/10/04/business/media/04fcc.html</a></span></font>=
</p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier New"'>(requires =
registration)</span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier =
New"'> </span></font></p>
<p class=3DMsoNormal style=3D'text-autospace:none'><font size=3D2 =
face=3D"Courier New"><span
style=3D'font-size:10.0pt;font-family:"Courier New"'>The Senate Commerce =
Committee
will be discussing the E-rate program tomorrow. See <a
href=3D"http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1330">ht=
tp://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1330</a></span></f=
ont></p>
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style=3D'font-size:10.0pt;
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<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'> </span></font></p>
<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'>Frank</span></font><font size=3D2 face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'> =
Atkinson  =
; =
&=
nbsp; &n=
bsp; </span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'>franka@ohcapcon.com</span></=
font></p>
<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'>Rotunda Inc/Ohio Capitol =
Connection <a
href=3D"http://www.rotundacollection.com/">http://www.rotundacollection.c=
om</a></span></font></p>
<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'>21 W Broad St</span></font><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>, </span></font><font =
size=3D2
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'>Columbus</span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'>Ohio</span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'>43215</span></font><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> &nbs=
p;
http://www.ohcapcon.com</span></font></p>
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style=3D'font-size:
12.0pt'> </span></font></p>
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