Before You're Done

Disposal or Trade-In of Equipment

Beginning January 3, 2011, applicants can dispose of obsolete equipment for payment or other consideration, but no sooner than five years after the equipment is installed.

In general, eligible products and services purchased with Schools and Libraries Program discounts cannot be sold, resold, or transferred for money or any other thing of value (47 C.F.R. Section 54.513(a)).

However, applicants can now dispose of equipment five years or more after installation, even if payment or other consideration is received. Resale or disposal is prohibited before five years have passed.

Note that applicants are not required to continue using the equipment for five years, nor are they required to dispose of equipment five years after installation.

Trade-Ins

Equipment purchased with Schools and Libraries Program discounts can also be traded in, but no sooner than five years after the equipment is installed. Trade-ins are not allowed before this five-year period has elapsed.

The value of a trade-in does not have to be deducted from the pre-discount amount of a new funding request. Applicants are not required to notify USAC of the disposal or trade-in of equipment. However, an applicant disposing of or trading in equipment should make an appropriate entry in its asset register or inventory.

For a list of donation and recycling locations for communications equipment, you can visit the e-cycling page maintained by the United States Environmental Protection Agency.

Relevant FCC Rules and Orders

• The FCC's disposal of obsolete equipment rule is located at 47 C.F.R. Section 54.513(b).
• The FCC established this rule in its Schools and Libraries Sixth Order at paragraphs 73 through 83. Schools and Libraries Universal Service Support Mechanism, A Nat’l Broadband Plan for Our Future, CC Docket No. 02-6, GN Docket No. 09-51 Sixth Report and Order, 25 FCC Rcd 18762, 18795-98, FCC 10-175 (2010.
• The FCC's rule requiring that asset and inventory records be maintained is located at 47 C.F.R. Section 54.516.
• The FCC established this rule in its Schools and Libraries Third Order at paragraph 28.