March 2001 Announcements

Please click on the topic below to view the most recent announcements:

Now that the window for filing Form 471 for Year 4 has closed and the Program Integrity Assurance (PIA) Team is gearing up to review the filed applications, the SLD would like to remind applicants of two issues related to the portion of bills for which applicants are responsible. The PIA Team will be reviewing applications for compliance with these and other program rules.

For a discussion of service provider price reductions and promotional offers, please refer to the "Free Services Advisory" section of the Pitfalls to Avoid in Filing Form 470 posted in the Reference Area of this web site.

For a discussion of the non-discount portion of funded connections and services, please refer to the Obligation to Pay Non-Discount Portion posted today in the Reference Area of this web site.

On February 28, 2001, the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC) reported to the Federal Communications Commission that $5.787 billion in requested funding has been estimated for schools and libraries seeking E-rate discounts for Year 4. This revised estimate is based on counting the dollars requested in 37,188 applications received or postmarked by January 18, 2001, the close of the Form 471 filing window.

There are several factors that will reduce ultimately the funds requested from the estimated level. First, because this year all forms needed to have both their attachments and certifications filed within the application window, the number of applications deemed to be inside the window is likely to decline, reducing the estimated $5.787 billion of demand as SLD processes these materials.

Second, while efforts have been made to eliminate duplicate requests, inevitably we will discover more duplication as we process these applications.

Third, SLD's efforts to assure that applications are substantially complete and that funds are committed only for eligible services, for use by eligible entities with the appropriate discount rate, and are otherwise consistent with program rules, will further reduce the demand.

Click here to view the revised estimate.