**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | *  | CC Docket No. 02-6           |
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| Schools and Libraries Universal  | ** |                              |
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| Support Mechanism                | *) |                              |
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**ERRATA**

**Released: July 10, 2002**

By the Acting Deputy Chief, Telecommunications Access Policy Division,
Wireline Competition Bureau:

On June 13, 2002, the Federal Communications Commission released the
*First Report and Order* in CC Docket No. 02-6 (FCC 02-175) establishing
a framework for the treatment of unused funds collected for the schools
and libraries support mechanism. This errata corrects the following
errors in the released text:

1.  In the eighth sentence of paragraph 1, delete "minimize and" so the
    sentence shall read: "We conclude that our actions today strike an
    appropriate balance by helping to stabilize the contribution factor
    for the immediate future, while maintaining an appropriate level of
    support for all universal service support mechanisms, including the
    schools and libraries program."

2.  In the third sentence of paragraph 3, delete "or reduce" so the
    sentence shall read: "We therefore conclude that, in order to
    maintain fund predictability for the immediate future, unused funds
    from the schools and libraries support mechanism shall, in
    accordance with the public interest, be applied to stabilize the
    amount of contributions to the universal service fund for no more
    than the next three quarters, which should provide us sufficient
    time to complete our review of the contribution methodology and
    implement any changes adopted in that proceeding."

3.  In the second sentence of paragraph 14, delete "or reduce" so the
    sentence shall read: "We direct the Wireline Competition Bureau and
    USAC to apply such unused funds to stabilize universal service
    contributions in accordance with the public interest for the third
    and fourth quarters of 2002, and first quarter 2003, in a manner
    consistent with the Commission's prior treatment of unused funds
    from Funding Year 1."

4.  In the tenth sentence of paragraph 16, delete "or lower" so the
    sentence shall read: "Thus, until we complete our assessment of the
    current contribution methodology, we believe that it is appropriate
    to stabilize the contributions to universal service."

5.  In the second sentence of footnote 53, delete "or reducing" so the
    sentence shall read: "Applying unused funds from the schools and
    libraries support mechanism to reduce the contribution factor would
    make the fund more predictable for contributors and consumers by
    stabilizing contributions."

6.  In the fifth sentence of paragraph 25, delete "minimize and" so the
    sentence shall read: "Our actions today strike an appropriate
    balance by helping to stabilize the contribution factor for the
    immediate future, while maintaining support for the schools and
    libraries program."

7.  In the third sentence of paragraph 40, delete "or reduce" so the
    sentence shall read: "We believe that applying unused funds from the
    schools and libraries mechanism to stabilize contributions has the
    same impact on both small and large entities."

8.  In the fourth sentence of paragraph 40, delete "or reducing" so the
    sentence shall read: "In addition, we believe that the action that
    we take today will be beneficial for both large and small entities
    that contribute to the universal service fund by stabilizing
    contribution requirements."

FEDERAL COMMUNICATIONS COMMISSION

Diane Law Hsu

> Acting Deputy Chief, Telecommunications Access Policy Division
>
> Wireline Competition Bureau