**FCC 06-158**

**Released: October 19, 2006**

**RELEASE OF FUNDING YEAR 2007 ELIGIBLE SERVICES LIST FOR**

**SCHOOLS AND LIBRARIES UNIVERSAL SERVICE MECHANISM**

**CC Docket No. 02-6**

On December 23, 2003, the Commission adopted section 54.522 that
formalizes the process for updating the Eligible Services List (ESL) for
the schools and libraries universal service support mechanism.[^1]
Specifically, section 54.522 requires the Commission to seek comment on
the Universal Service Administrative Company's (USAC) proposed eligible
services list and issue a Public Notice attaching the final ESL for the
upcoming funding year at least 60 days prior to the opening of the
funding window for the schools and libraries program.[^2]

Accordingly, on July 21, 2006, pursuant to the Commission's rules, the
Commission released a Public Notice (FCC 06-109) seeking comment on
USAC's proposed ESL for Funding Year 2007, pursuant to the Commission's
rules.[^3] The Commission now releases the attached Funding Year 2007
ESL for the schools and libraries universal service support mechanism.
Section 54.522 requires the Commission to issue a public notice
attaching the final eligible services list for the upcoming funding year
at least 60 days prior to the opening of the funding window for the
schools and libraries program.[^4] Under this timeframe, the
Administrator of the schools and libraries universal service support
mechanism (the Universal Service Administrative Company or USAC) would
need to wait 60 days after the Commission releases a final ESL for
funding year 2007, before it could open the funding window for funding
year 2007. To facilitate the application process for funding year 2007,
we authorize USAC to open the annual application filing window on
November 14, 2006.  We therefore waive on our own motion section 54.522
of the Commission\'s rules requiring publication of the ESL at least 60
days prior to the commencement of the filing window.[^5]  We conclude
that this action will facilitate the application process for E-rate
beneficiaries applying for monies for funding year 2007.

Some of the major changes that have been made to the Funding Year 2007
ESL are highlighted below:

-   **Overall Changes:** We revise the 2007 ESL to make it simpler and
    shorter yet still providing essential eligibility information about
    product and service categories. The list includes an index and a new
    glossary of terms. For consistency and clarity, ineligible services
    or components that were listed alongside eligible services were
    moved to separate sections for ineligible services and products.
    Thus, services that are not eligible for support are listed at the
    end of each category.

-   **Interconnected VoIP:** Interconnected voice over Internet protocol
    (interconnected VoIP) service has been added to the 2007 ESL as an
    eligible service.[^6] Interconnected VoIP is defined as a service
    that (1) enables real-time, two-way voice communications; (2)
    requires a broadband connection from the user's location; (3)
    requires Internet protocol-compatible customer premises equipment
    (CPE); and (4) permits users generally to receive calls that
    originate on the public switched telephone network and to terminate
    calls to the public switched telephone network.

-   **Redundant Components:** We clarify that components that are
    installed in standby mode, redundant, not active and online, or
    otherwise not an essential element in the transmission of
    information within the school or library, are not eligible.

-   **Installation and Configuration (Training):** We clarify that as
    long as training occurs within a reasonable time after installation
    of eligible components it is coincident with installation.[^7]

-   **KVM Switch:** KVM switch ("keyboard-video-mouse" switch) has been
    added to the 2007 ESL as an eligible service.

-   **Fees for Universal Service Administration:** We clarify that
    customer charges for universal service fees are eligible but charges
    for universal service administration are not eligible.

-   **Wireless Internet:** We remove the requirement that an auditable
    system be in place in order for applicants to receive funding for
    wireless Internet access service designed for portable devices.[^8]

As we stated in the July 21^st^ Public Notice, this proceeding is
limited to determining what services are eligible under the Commission's
current rules and is not intended to be a vehicle for changing any
eligibility rules. Therefore, those comments not addressed in the
Funding Year 2007 ESL may be more appropriately filed for the
Commission's consideration in the general proceeding for the Schools and
Libraries Universal Service Support Mechanism in CC Docket No. 02-6.
Those comments not addressed may include comments that requested
eligibility for new services or products, comments that requested that
services or products currently deemed ineligible be made eligible,
comments that requested that the Commission take action outside of the
scope of this proceeding, or comments that requested that the Commission
take action that was not permitted by the short time frame allotted for
this proceeding by section 54.522.

For further information, contact Gina Spade, Regina Brown, Cara Voth, or
James Bachtell in the Telecommunications Access Policy Division,
Wireline Competition Bureau at (202) 418-7400, TTY (202) 418-0484.

Action taken by the Commission on October 19, 2006: Chairman Kevin J.
Martin and Commissioners Michael J. Copps, Jonathan S. Adelstein,
Deborah Taylor Tate and Robert M. McDowell.

**-FCC-**

[^1]: *See* 47 C.F.R. § 54.522. The rule was intended to promote greater
    transparency for what is eligible for support under the schools and
    libraries support mechanism. *See Schools and Libraries Universal
    Service Support Mechanism*, CC Docket No. 02-6, Third Report and
    Order and Second Further Notice of Proposed Rulemaking, 18 FCC Rcd
    26912, 26929, para. 40 (2003).

[^2]: 47 C.F.R. § 54.522.

[^3]: *See Pleading Cycle Established for Eligible Services List for
    Universal Service Mechanism for Schools and Libraries*, CC Docket
    No. 96-45, FCC 06-109, Public Notice (rel. Jul. 21, 2006) (July
    21^st^ Public Notice).

[^4]: *See* 47 C.F.R. § 54.522.

[^5]: *See* 47 C.F.R. § 1.3 (providing that the Commission's rules may
    be waived for good cause).

[^6]: *See* Comments of Nsight 1-2; On-Tech Consulting, Inc. 4.

[^7]: *See, e.g.,* Comments of IBM Global Services 2, On-Tech
    Consulting, Inc. 2; E-Rate Service Provider Forum 4.

[^8]: *See* Comments and Reply Comments of State E-rate Coordinators
    Alliance 4; E-Rate Service Provider Forum 3; Tropos Networks 1-6;
    Sprint Nextel Corporation 2-3; Greg Weisiger 1-2; Kellogg &
    Sovereign Consulting, LLC 3; Council of the Great City Schools 3-4.