Education

E-Rate

The schools and libraries discount program, known as E-Rate, is preparing for Funding Year 4 (July 2001 through June 2002) applications. In order to take advantage of the program, you will need to begin the process no later than mid-December and finalize your application by mid-January, 2001. We strongly encourage you to file for E-Rate funding immediately.

Sprint has developed the following materials to assist you with this process:

Funding Year 4 (FY4) Guidelines
This letter provides information on general FY4 guidelines and common errors made when applying for funding.
E-Rate Quick Reference Guide
This guide provides a quick reference of the program and key E-Rate dates.
Frequently Asked Questions
This list of questions and answers will provide detailed information about checking your funding status, appealing funding decisions, receiving your funding discount, and other important information about the E-Rate program.

Frequently Asked Questions

Q. When did the E-Rate program start?
A. E-Rate was introduced in the Telecommunications Act of 1996 as a form of providing support to bring new technology into the nation's schools and libraries. The program is FCC-mandated and is administrated by the Universal Service Administrative Company's (USAC) Schools and Libraries Division (SLD). Schools and libraries began receiving benefits from E-Rate in late 1998.

Q. Who is eligible for E-Rate?
A. Elementary and secondary public and private schools and public libraries are eligible. Schools must meet the statutory definition of an elementary or secondary school, found in the Elementary and Secondary Education Act of 1965. They must be Kindergarten through 12th Grade. They must be not-for-profit and may not have an endowment exceeding $50 million. Examples include:

Public schools
Private schools
Non-public schools
Parochial schools
Area vocational technical schools
Charter schools
Intermediate units

Pre-schools are eligible only if they are mandated by the state as part of elementary education. Libraries or library consortia that are not-for-profit and eligible for assistance from a state library administrative agency under the Library Service and Technology Act are eligible for E-Rate.

Q. How does a school apply for E-Rate?
A. There are several steps in applying for E-Rate:

1) Technology Plan
Schools and libraries must prepare a technology plan covering three to five years. If your school needs assistance with their technology plan, request an Education Tool Kit on Technology from your Sprint Sales Representative or by completing the online Free Planning Tools form.

2) Form 470 – Description of Services Requested
Must be posted on the SLD Web site for 28 days. During that time, Service Providers may offer bids to schools and libraries for the requested services. The applicant is required to wait 28 days before a contract can be signed. At the end of the 28-day Web site posting, the applicant may then select a Service Provider from the bids received. These forms can be mailed or entered via the Internet, but the Certification block must be mailed to the SLD.

3) Form 471 – Services Ordered and Certification
Must be completed once a Service Provider is selected. A contract must be signed with the Service Provider (unless it's for tariffed or month-to-month services). Sprint offers an Addendum for those Internal Connections' customers who require "E-Rate Contingent" contracts. If entered over the Internet, the Certification block must be printed, signed by an authorized individual, and mailed to the SLD.

4) Form 486 – Receipt of Service Confirmation Form
Is completed by the school or library when the service becomes operational. Upon receipt of this form, the SLD will allow collection of the award.

5) Form 500 – Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form
Is completed by the school or library when changes need to be made to existing E-Rate commitments. For example, this form might be used for a change in Service Start Date or Contract Expiration Date, or possibly a Cancellation or Reduction of Funding Request Number. This is not a required form.

Q. Does a school have to file Forms 470 and 471 every year?
A. The Form 470 is a competitive bid form and is required to be posted for 28 days before a contract can be signed. If a school/library signs a multi-year contract, they do not need to re-file a new 470 for each year of the life of the contract. This 470 is called an "evergreen 470". The Form 471 must be filed each year.

Q. How much can the school/library be awarded?
A. Schools and libraries may apply for 20-90% of their technology bills, based on the percentage of students eligible for participation in the national school lunch program and the school's classification as rural or urban. For shared services, school districts applying for discounts on behalf of their individual schools may calculate the district-wide average percentage of eligible students. For private schools, the discount can be calculated by using scholarship statistics or a survey of 100% of the students with a 50% response rate. For libraries, statistics should be drawn from the community they serve.

Q. When can schools/libraries apply?
A. Form 470 Web postings for new contracts (Internal Connections) can be filed at any time during the year. Postings for Telecom Services and Internet Access can be filed each year after July 1. Form 471 must be filed no earlier than 28 days after the Form 470 and within the "window" – usually October through mid-January preceding the July funding year.

Q. May I file a Form 471 before the 28-day waiting period before Form 470 has expired?
A. No, there is a mandatory 28-day waiting period applicable to each 470. It's important that the contract is signed after the Allowable Contract Date (ACD) found on the posted 470 and before the 471 deadline (in mid-January).

Q. What is eligible for the E-Rate award?
A. Eligible schools and libraries may purchase all commercially available telecommunications services and Internet access services at discounted prices. Purchase, installation and maintenance of internal connections are also eligible for discounted rates, when budget allows. Examples include:

Eligible Telecommunication Services
Basic phone service
Leased data circuits
T1, 56 kbs, ISDN lines
Dial-up Internet access
E-mail
Wireless telecommunications
Long Distance
Leased Wide Area Networks from a Common Carrier
Sprint Network Consolidation (SNC)

Eligible Internet Access
T1, 56 kbs, ISDN lines
Dial-up Internet access
Direct Internet connections

Eligible Internal Connections
Wiring
Routers
Switches
Hubs
Servers
Certain networking operating software
Wireless LANs and Wireline LANs Installation & basic maintenance
Private Branch Exchange (PBX)
Key Systems

Q. What is not E-Rate eligible?
A. Examples of non-eligible services include: voicemail, handsets and video equipment. It is important to provide a description of services with the Form 471, Block 5, #21 that covers eligible services. If you are not requesting E-Rate support on certain items, do not include this equipment in your description so that the SLD does not misinterpret which services are being requested for E-Rate funds. For a more detailed eligibility list, please visit the SLD Website at www.sl.universalservice.org in the References section.

Q. There are three categories of service – Telecom Services, Internet Access, and Internal Connections. Why are these distinctions important?
A. Telecom Services and Internet Access are generally tariffed, regulated (or non-regulated) services that have monthly recurring charges. The two categories are considered Priority One services by the FCC and have consistently been awarded in the first three years of the program. Internal Connections is generally hardware and wiring. These products are only funded if there is money remaining in the Schools and Libraries fund. Here's a summary of the Internal Connections funding award decisions for each of the funding years:

Funding Year One (January 1998-June 1999) discounts of 70% and above
Funding Year Two (July 1999-June 2000) all discount levels
Funding Year Three (July 1999-June 2001) discounts of 81% and above

Q. Why does Sprint have so many Service Provider Identification Numbers (SPINs)?
A. Initially, the FCC required Sprint to have a different SPIN for each operating company. For example, Kansas had 3 SPINs – one each for KS, Eastern Kansas and South Central Kansas. In FY3, Sprint Local Division announced one SPIN – 143 01 9614. Some customers continue to use the old SPINs, which will work, but our advertised SPIN is 143 01 9614. Both Sprint PCS and Sprint Long Distance have their own SPIN numbers.

Q. Is Sprint PCS eligible?
A. Yes, Sprint PCS is considered a telecom service and their SPIN is 143 00 6742. The handsets are not eligible.

Q. Does Sprint Long Distance participate?
A. Yes, Sprint Long Distance is a telecom service and has a SPIN of 143 00 5695.

Q. How do I learn if I've been awarded E-Rate money?
A. The deadline for filing 471s is mid-January. The SLD will then process the forms and send out Receipt Acknowledgment Letters (RAL) February through April. These letters confirm the receipt but do not allocate any funds. Funding Commitment Decision Letters (FCDL) begin in April each year and are distributed in "waves" or weekly mailings. FCDLs are delivered to you by mail and announced on the SLD Web site.

Q. How do I collect the E-Rate award?
A. For telecom services and Internet access, you will need to file the Form 472, also known as the BEAR (Billed Entity Applicant Reimbursement). This form requires payment of your bill in full and then completing a four-page form to receive a check back from the SLD. These forms can be filed quarterly, semi-annually, or annually. Block Four of this form requires a Sprint signature and should be faxed to Sprint at 1-800-604-9233. A Sprint Representative will sign the form promptly and fax page four back to you. You will then need to mail the completed form to the SLD. A check will follow in 50 days. For some customers, especially libraries, a check is not desirable because those funds must be submitted to their General Fund in the community. For these customers, the BEAR check can be applied to their account as a credit. The details need to be coordinated with your Sprint Representative. For Internal Connections, customers will receive a discount on their bill. You will be invoiced for the full amount with a deduction showing the E-Rate award. You should pay your portion promptly. The E-Rate award will be billed to the SLD through our billing department.

Q. What is a BEAR?
A. A Form 472, also referred to as a BEAR, stands for Billed Entity Applicant Reimbursement. These forms were introduced in the first year of the program and offer a way to retroactively pay schools/libraries who have already paid their telephone bills. Because many customers prefer checks as payment, the BEAR is the preferred method of payment by Sprint.

Q. What can I do if my application is denied funding?
A. If you are denied funding, you have 30 days to appeal the decision at either the SLD level or with the FCC. There are no exceptions to the 30-day rule. If the "denied" decision was based on the discount cut-off for Internal Connections (such as below 70% in FY1), the appeal will not be considered. Most other appeals will be considered by the SLD. Approximately 20% of all appeals are granted at the SLD level and it takes about four months to receive feedback. If you are denied again, you can appeal to the FCC. That process usually takes six months.

Q. How can I track down my status?
A. You can find the most accurate information on your status by calling the SLD Help Line at 1-888-203-8100. You'll be asked to provide your Funding Request Number (FRN). The SLD Representative can provide you with wave information, status of appeal or authorized payments. For information within Sprint, check with your Sprint E-Rate Representative. The toll-free number is 1-877-231-3850.