ALAWON v6, n115 - FCC ADJUSTS CONTRIBUTIONS TO DISCOUNT FUND

ALAWASH E-MAIL (ALAWASH@ALAWASH.ORG)
Wed, 17 Dec 1997 14:42:04 -0500 

Date: Wed, 17 Dec 1997 14:42:04 -0500
Message-Id: <199712171946.OAA02589@comet.connix.com>
From: ALAWASH E-MAIL (ALAWASH E-MAIL) <ALAWASH@ALAWASH.ORG> (by way of mgolrick@sclc.org (Michael A. Golrick))
To: Multiple recipients of list <conntech>
Subject: ALAWON v6, n115 - FCC ADJUSTS CONTRIBUTIONS TO DISCOUNT FUND

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ALAWON                                       Volume 6, Number 115
ISSN 1069-7799                                  December 17, 1997

     American Library Association Washington Office Newsline

In this issue: (92 lines)

FCC ADJUSTS CONTRIBUTIONS TO UNIVERSAL SERVICE FUND;
$2.25 BILLION ANNUAL CEILING AND STARTUP SCHEDULE UNAFFECTED
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      FCC ADJUSTS CONTRIBUTIONS TO UNIVERSAL SERVICE FUND;
$2.25 BILLION ANNUAL CEILING AND STARTUP SCHEDULE UNAFFECTED

The FCC today released its Third Order on Reconsideration dealing
with Universal Service.  This order restructures the contribution
schedule of the Universal Service Fund for libraries and schools
as well as the fund for rural health care providers. The discount
program is scheduled to begin in January.

The order specifies that during the first six months the
Universal Service Administration Company (USAC) is authorized to
collect up to $625 million to fund discounts during those first
six months from telecommunications providers.  Should demand
outstrip the collections, the Commission has reserved the option
of revising this $625 million cap.  The Commission also stated
that it "anticipate[s] that this action will not jeopardize the
sufficiency of the support mechanisms."

The Commission is changing the six month cap based on revised
forecasts on the demand for services between January - June 1998.
The order states that, "[b]ecause many schools and libraries will
not begin the installation of internal connections until the
summer when students are not present in instructional buildings,
we anticipate that initial demand for the schools and libraries
support mechanisms will not reach the projected maximums [of $625
million]."

The FCC explicitly did not revise the total amount that can be
disbursed annually.  "We are ramping down the start-up of this
program.  But we haven't changed the ceiling.  The ceiling will
remain at $2.25 billion," said FCC Chairman William Kennard in a
press conference on December 15.  Funds will still be collected
from service providers on an as-needed basis, meaning that USAC
will not collect more funds than are requested by libraries and
schools.

"These changes will not affect the overall operations of the
discount program," said Ira Fishman, CEO of the Schools and
Libraries Corporation.  "The application forms have been mailed
to schools and libraries throughout the country and the client
service bureau is up and running on schedule.  We are proceeding
full steam ahead."  The Schools and Libraries Corporation is
responsible for processing the applications.

The rural health care fund was also ramped down.  Contributions
for rural health care discounts will not exceed $50 million
during the first six months.  However, the annual health care
ceiling of $400 million remains unchanged.

The Third Reconsideration Order is expected to be available
online from the FCC's at www.fcc.gov/ccb/universal_service/ later
today.  The Schools and Libraries Corporation customer service
bureau can be reached at 888/203.8100.

_________________________________________________________________

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Lynne E. Bradley, Editor                        <leb@alawash.org>
Deirdre Herman, Managing Editor  <alawash@alawash.org>

Contributors:                                       Aleck Johnson
                                               Andrew Magpantay
                                                Carol Henderson

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purposes with appropriate credits.
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