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 PUBLIC  NOTICE  Federal  Communications  Commission  445  12th  St.,  S.  W.  Washington,  D.  C.  20554  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FCC  04-  244  Released:  October  14,  2004 
 RELEASE  OF  FUNDING  YEAR  2005  ELIGIBLE  SERVICES  LIST  FOR  SCHOOLS  AND  LIBRARIES  UNIVERSAL  SERVICE  MECHANISM 
 CC  Docket  No.  02-  6 
 Pursuant  to  section  54.522  of  the  Commissions  rules,  the  Commission  releases  the  attached  Funding  Year  2005  Eligible  Services  List  for  the  Schools  and  Libraries  Universal  Service  Program. 
 To  promote  greater  transparency  of  what  is  eligible  for  support  under  the  schools  and  libraries  support  mechanism,  the  Commission  adopted  a  rule  that  formalizes  the  process  for  updating  the  eligible 
 services  list,  beginning  with  Funding  Year  2005.  1  On  August  13,  2004,  the  Commission  released  a  Public  Notice  (FCC  04-  200)  seeking  comment  on  USACs  proposed  eligible  services  list,  pursuant  to  the 
 Commissions  rules.  Upon  consideration  of  the  record,  the  Commission  releases  the  attached  Eligible  Services  List  for  Funding  Year  2005. 

 We  note  that  the  Commission  received  several  comments  and  reply  comments  in  response  to  the  initial  Public  Notice  for  the  Funding  Year  2005  Eligible  Services  List.  The  Commission  has  incorporated 
 some  of  the  suggestions  provided  in  the  comments,  plans  to  incorporate  other  suggestions  in  the  Funding  Year  2006  Eligible  Services  List,  and  will  consider  comments  concerning  specific  issues,  such  as  dark 
 fiber  and  voice  over  Internet  protocol,  in  the  active  proceeding  in  CC  Docket  No.  02-  6.  2 
 For  further  information,  contact  Jennifer  Schneider  in  the  Telecommunications  Access  Policy  Division,  Wireline  Competition  Bureau  at  (202)  418-  7400,  TTY  (202)  418-  0484. 

 Action  by  the  Commission  on  October  5,  2004:  Chairman  Powell,  Commissioners  Abernathy,  Martin;  Commissioner  Copps  issuing  a  statement;  Commissioner  Adelstein  issuing  a  statement  at  a  later 
 date. 

 1  See  47  C.  F.  R.    54.  522. 
 2  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  (2003). 
1
 STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS 
 Re:  Release  of  Funding  Year  2005  Eligible  Services  List  for  Schools  and  Libraries  Universal  Service  Mechanism  (CC  Docket  No.  02-  6) 
 I  am  pleased  to  support  the  Eligible  Services  List  we  release  today.  This  approach  enhances  the  transparency  of  the  application  process.  It  will  make  it  simpler  for  schools  and  libraries  to  apply  for  E-Rate 
 support.  In  light  of  the  growing  complexity  of  the  Schools  and  Libraries  Support  Mechanism,  this  is  a  good  thing.  Still,  I  am  disappointed  we  have  yet  to  resolve  open  questions  regarding  the  eligibility  of 
 dark  fiber  services.  When  dark  fiber  was  pulled  abruptly  from  eligibility  last  year,  some  rural  schools  and  libraries  were  left  high  and  dry.  We  are  overdue  for  resolving  this  issue.  Theres  more  than  enough 
 confusion  mounting  with  respect  to  E-  Rate  administration. 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  1  Telecommunications  Services 
 Schools  &  Libraries 
 Eligible  Services  List 
 Schools  and  Libraries  Support  Mechanism 
 For  Fund  Year  2005 

 Overall  Eligibility  Requirements  for  All  Categories  of  Service: 
 The  Eligible  Services  List  indicates  whether  specific  products  or  services  may  be  able 
 to  receive  discounts  under  the  Schools  and  Libraries  Support  Mechanism.  Eligibility 
 for  discounts  requires  the  eligible  use  of  eligible  products  or  services  by  eligible 
 entities  at  eligible  locations  for  eligible  purposes. 

 If  a  product  or  service  is  not  eligible  under  program  rules,  it  is  labeled  Not  Eligible. 
 If  no  indication  of  ineligibility  is  provided,  the  product  or  service  may  be  eligible, 
 depending  on  details  of  its  use.  Conditions  for  eligibility  are  provided  in  this  Eligible 
 Services  List,  and  in  information  provided  in  the  Reference  Area  of  the  SLD  web  site. 
 In  addition,  some  entries  in  this  List  include  links  to  Special  Eligibility  Conditions  that 
 provide  further  information.  These  Special  Eligibility  Conditions  appear  at  the  end  of 
 this  document. 

 NOTE  CONCERNING  COMBINED  PRIORITY  1  SERVICES:  Some  service  offerings 
 provide  a  combination  of  Priority  1  services  including  both  Internet  Access  and 
 Telecommunications.  For  example,  a  service  provider  may  provide  a  combined 
 offering  of  local  phone  service,  long  distance  service,  cellular  service,  and  Internet 
 access  for  one  price.  For  administrative  convenience,  such  a  combined  offering,  if 
 provided  by  an  eligible  telecommunications  provider,  may  be  requested  in  the 
 Telecommunications  category  of  service.  Alternatively,  funding  may  be  requested  as 
 two  separate  requests  for  Telecommunications  Services  and  Internet  Access,  with 
 the  price  of  the  offering  divided  between  the  two  requests. 

 This  version  of  the  Eligible  Services  List  is  dated  October  5,  2004.  Some  eligibility 
 information  in  this  List  is  a  change  from  prior  years  and  applies  to  products  and 
 service  funding  requests  for  Funding  Year  2005. 

 Telecommunications  Services 
 Eligibility  Requirements  for  All  Telecommunications  Services: 
 To  be  eligible  for  support,  Telecommunications  Services  must  be  provided  by 
 an  eligible  telecommunications  provider,  that  is,  one  who  provides 
 Telecommunications  on  a  common  carriage  basis. 

 A  telecommunications  service  is  the  offering  of  telecommunications  for  a  fee 
 directly  to  the  public,  or  to  such  classes  of  users  as  to  be  effectively  available 
 directly  to  the  public,  regardless  of  the  facilities  used  [47  U.  S.  C.  153(  46)]. 
 Telecommunications  is  defined  as  "the  transmission,  between  or  among 
 points  specified  by  the  user,  of  information  of  the  users  choosing,  without 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  2  Telecommunications  Services 
 change  in  the  form  or  content  of  the  information  as  sent  and  received"  [47 
 U.  S.  C.  153(  43)].  A  State  commission  may  upon  its  own  motion  or  upon 
 request  designate  a  common  carrier  that  meets  the  requirements  as  set  forth 
 in  the  Communications  Act  of  1934,  Section  214  {47  U.  S.  C.  214}(  e)(  2) 
 Designation  of  Eligible  Telecommunications  Carriers. 

 Eligibility  in  this  category  of  service  is  for  the  procurement  of 
 Telecommunications  Services,  and  not  component  purchases  by  applicants. 

 Please  be  aware  that  IP-  enabled  services  are  the  subject  of  an  open 
 proceeding  at  the  FCC  to  determine,  among  other  things,  whether  certain 
 types  are  telecommunications  services.  See  IP-  Enabled  Services,  Notice  of 
 Proposed  Rulemaking,  19  FCC  Rcd  4863  (2004). 

 Product  Type 
 (Function) 
 Description  Eligibility 

 800  Service 
 (Telecommunications) 
 Description: 
 800  Service  provides  toll  calling  that  is 
 paid  by  the  called  party  rather  than  the 
 calling  party.  The  name  comes  from 
 the  original  Area  Code  used  for  all  toll-free 
 numbers.  Current  and  future  800 
 Service  area  codes  use  the  convention 
 8NN,  when  N  is  a  specific  digit,  for 
 example  888,  877,  and  866. 
 Eligibility: 
 800  Service  is  generally  eligible  for 
 discount.  However,  the  use  of  800 
 service  to  access  a  school  or  library 
 network  for  Internet  access/  data 
 connectivity  from  an  ineligible  location 
 (such  as  a  home)  is  not  eligible. 
 Applicants  who  make  available  Internet 
 access  to  eligible  users  via  800  Service 
 must  submit  a  certification  that  access 
 will  not  be  available  from  non-  school  or 
 non-  library  sites. 

 900  /  976  Charges 
 (Telecommunications) 
 Description: 
 "900"  is  an  area  code  used  to  reach  a 
 wide  range  of  information  providers. 
 Examples  of  the  information  that  may 
 be  provided  via  a  900  number  are  adult 
 content  programming,  weather  reports, 
 lottery  results,  or  caller  voting  for 
 various  topics  such  as  television  polls. 
 900  Service  calls  are  charged  to  the 
 party  originating  the  call.  Charges  for 
 accessing  900  calls  are  often  included 
 in  the  toll  charges  on  the  local 
 telephone  bill.  976  service  provides  a 

 Not 
 Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  3  Telecommunications  Services 
 local,  pay-  per-  call  telephone  service. 
 Eligibility: 
 900  Service  and  the  cost  of  dialing  into 
 a  900  Service  Provider  are  not  eligible 
 for  discount.  Similarly,  the  service  and 
 cost  of  dialing  into  976  numbers  are 
 not  eligible. 

 900  /976  Call 
 Blocking 
 (Telecommunications) 

 Description: 
 Call  Blocking  is  a  monthly,  or  recurring, 
 telephone  company  charge  for  the 
 blocking  of  calls,  such  as  to  900  or  976 
 numbers.  The  blocking  prevents  callers 
 from  completing  calls  to  900  or  976 
 numbers. 
 Eligibility: 
 As  a  component  of  an  eligible 
 telecommunications  service,  900/  976 
 call  blocking  is  eligible  for  discount. 

 911  /  E911  Trunks  / 
 Lines 
 (Telecommunications) 

 Description: 
 911  and  E911  trunks  or  lines  are 
 dedicated  telecommunications  links 
 specifically  or  exclusively  used  for 
 connection  between  a  school/  library 
 and  a  Public  Safety  Answering  Point 
 (PSAP). 
 Eligibility: 
 911  or  E911  trunks  or  lines  are  eligible 
 for  discount.  However,  911  and  E911 
 monitoring  services  are  information 
 services  and  therefore  are  not  eligible. 

 Alarm  Telephone  Line 
 (Telecommunications) 
 Description: 
 An  alarm  telephone  line  is  a 
 telecommunications  line  specifically 
 dedicated  to  a  school  or  librarys 
 burglar  or  fire  alarm  system.  It  may  be 
 the  equivalent  of  a  POTS  line,  or  a 
 dedicated  line  between  the  school  or 
 library  and  the  alarm  company. 
 Eligibility: 
 A  telecommunications  circuit  used  for 
 alarm  monitoring  is  eligible  for 
 discount.  However,  alarm  monitoring 
 services  are  information  services  and 
 therefore  are  not  eligible. 

 Asynchronous 
 Transfer  Mode  (ATM) 
 Service 
 (Telecommunications) 

 Description: 
 ATM  is  a  Digital  Transmission  Service. 
 Eligibility: 
 Leased  data  circuits  that  connect  an 
 eligible  school  or  library  facility  to  other 
 locations  beyond  the  school  or  library 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  4  Telecommunications  Services 
 are  eligible  for  discount.  Please  see  the 
 Special  Eligibility  Condition  below  for 
 further  information. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 

 Cellular  Service 
 (Telecommunications) 
 Description: 
 Cellular  Service  uses  radio 
 transmissions  to  access  other 
 telephone-  company  networks.  Service 
 is  provided  in  a  particular  area  by  a 
 low-  power  transmitter. 
 Eligibility: 
 The  cost  of  Cellular  service  to  eligible 
 users  is  eligible  for  discount,  but  the 
 cost  of  telephones  or  associated 
 maintenance  on  the  equipment  is  not. 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Eligible  Users  and  Locations 
 Telephone  Service  and  Technology 
 Plans 

 Centrex 
 (Telecommunications) 
 Description: 
 Centrex  is  a  business  telephone  service 
 that  consists  of  a  wide  variety  of 
 features,  such  as  call  forwarding  and 
 call  transfer,  provided  by  central  office 
 software  and  extended  to  the 
 customers  premises  via  local 
 distribution  facilities. 
 Eligibility: 
 Centrex  service  is  eligible  for  discount. 
 Eligible  costs  can  include  fees  for 
 Centrex  common  equipment,  which  is  a 
 charge  assessed  to  recover  the  cost  of 
 central  office-  based  software  features. 
 Services  that  provide  Centrex-  like 
 features  but  are  marketed  under 
 different  names  are  also  eligible  for 
 discount.  Please  see  the  Special 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Telephone  Service  and  Technology 
 Plans 

 Conferencing  Services 
 (Telecommunications) 
 Description: 
 Conferencing  Services  provide  a  means 
 for  multiple  users  to  participate  in 
 group  discussions  via  telephone  circuits 
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 or  video  facilities. 
 Eligibility: 
 Services  beyond  those  provided  by  a 
 school  or  librarys  internal  facilities  that 
 provide  telephone  conference  calls  or 
 video  conferencing  are  eligible  for 
 discount  if  the  conference  services  are 
 only  used  for  eligible  educational  and 
 library  purposes,  or  if  an  auditable 
 monitoring  system  is  established  that 
 provides  a  way  to  allocate  between 
 eligible  and  ineligible  uses. 
 Example:  Per-  minute  conferencing 
 charges  for  a  government-  wide 
 strategic  planning  teleconference  would 
 not  be  eligible,  but  per-  minute 
 conferencing  charges  limited  to 
 educational  purposes  and  educational 
 personnel  would  be  eligible. 

 Custom  Calling 
 Services 
 (Telecommunications) 

 Description: 
 Custom  calling  services  extend  the 
 features  available  with  telephone 
 service.  Features  available  include  (but 
 are  not  necessarily  limited  to)  call 
 waiting,  3-  way  calling,  speed  calling, 
 distinctive  ring,  and  call  forwarding. 
 Eligibility: 
 As  features  associated  with  an  eligible 
 telecommunications  service,  custom 
 calling  services  are  eligible  for 
 discount. 

 Digital  Subscriber 
 Line  (DSL)  Service 
 (Telecommunications) 

 Description: 
 Digital  Subscriber  Line  (DSL)  is  a 
 Digital  Transmission  Service. 
 Eligibility: 
 Leased  data  circuits  that  connect  an 
 eligible  school  or  library  facility  to  other 
 locations  beyond  the  school  or  library, 
 including  an  Internet  Service  Provider, 
 are  eligible  for  discount  as  a 
 telecommunications  service.  Please  see 
 the  Special  Eligibility  Condition  below 
 for  further  information.  See  also  the 
 entry  for  Digital  Subscriber  Line  (DSL) 
 Internet  Access  in  the  Internet  Access 
 section. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 
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 Digital  Transmission 
 Services 
 (Telecommunications) 

 Description: 
 Digital  Transmission  Services  refer  to 
 data  links  that  connect  multiple  points, 
 using  any  available  technology. 
 Technologies  employed  may  include, 
 but  are  not  limited  to:  Asynchronous 
 Transfer  Mode  (ATM),  Digital 
 Subscriber  Line  (DSL,  ADSL,  SDSL, 
 HDSL,  IDSL,  VDSL),  DS-  1,  DS-  2,  DS-  3, 
 Frame  Relay,  Integrated  Services 
 Digital  Network  (ISDN),  OC-  1,  OC-  3, 
 OC-  12,  OC-  N,  Satellite,  Switched 
 Multimegabit  Data  Service  (SMDS),  T-1, 
 T-  2,  T-  3,  Fractional  T-  1,  and 
 Wireless.  Digital  transmission  services 
 used  to  link  local  networks  are 
 commonly  called  wide  area  networks 
 (WANs). 
 Eligibility: 
 Leased  data  circuits  for  voice,  video, 
 and/  or  data  that  connect  an  eligible 
 school  or  library  facility  to  other 
 locations  beyond  the  school  or  library, 
 including  an  Internet  Service  Provider, 
 are  eligible  for  discount. 
 See  also  the  entry  for  Wide  Area 
 Network  in  this  section.  Connections 
 that  provide  voice,  video,  or  data 
 connectivity  exclusively  within  school 
 or  library  grounds  are  not  eligible  for 
 funding  as  a  Telecommunications 
 Service,  but  may  be  eligible  as  Internal 
 Connections. 

 Direct  Broadcast 
 Satellite 
 (Telecommunications) 

 Description: 
 Direct  Broadcast  Satellite  (DBS)  is  a 
 technology  that  uses  satellite  to 
 transmit  TV  programs  to  its 
 subscribers.  The  transmitted  signals 
 are  received  using  individual  rooftop 
 antennas.  Program  reception  of  the 
 subscriber  is  limited  to  those  channels 
 broadcast  by  a  specific  provider. 
 Eligibility: 
 Broadcast  radio  and  television,  and 
 cable  television,  are  not 
 telecommunications  services.  Costs  to 
 access  or  obtain  them  are  not  eligible 
 for  discount. 

 Not 
 Eligible 

 Direct  Inward  Dialing 
 (Telecommunications) 
 Description: 
 Direct  Inward  Dialing  (DID)  service 
 allows  outside  calls  to  be  directed  to  a 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  7  Telecommunications  Services 
 Private  Branch  Exchange  station  line 
 without  the  use  of  an  operator. 
 Eligibility: 
 Direct  Inward  Dialing  is  eligible  for 
 discount. 

 Directory  Advertising 
 (Telecommunications) 
 Description: 
 Directory  Advertising  is  advertising  in  a 
 telephone  directory  yellow  pages, 
 Internet,  or  elsewhere.  This  may  be 
 provided  by  the  telephone  company  or 
 another  entity. 
 Eligibility: 
 The  cost  associated  with  directory 
 advertising  is  not  a 
 Telecommunications  Service  and  is  not 
 eligible  for  discount. 

 Not 
 Eligible 

 Directory  Assistance 
 Charges 
 (Telecommunications) 

 Description: 
 Directory  Assistance  Charges  are  those 
 charges  assessed  for  calls  made  to 
 411,  or  other  Directory  Assistance 
 numbers  such  as  (201)  555-  1212,  for 
 information.  Typically  charges  are 
 assessed  on  a  per  call  basis. 
 Eligibility: 
 Directory  Assistance  Charges  are 
 eligible  for  discount.  However,  see  also 
 the  entry  for  Reverse  Directory 
 Assistance. 

 Directory  Listing 
 (Telecommunications) 
 Description: 
 A  telephone  company  directory 
 contains  an  alphabetical  listing,  by 
 name,  of  all  telephone  subscribers 
 except  those  requesting  unlisted  or 
 non-  published  service.  Typically,  the 
 initial  directory  listing  is  provided  free 
 of  charge  to  the  subscriber,  but  extra-cost 
 services  are  available,  such  as 
 additional  listings,  unlisted  or  non-published 
 numbers,  and  bolded  entries. 
 Eligibility: 
 Fees  for  an  additional  directory  listing, 
 an  unlisted  number,  an  unpublished 
 number,  a  bolded  listing,  or  other 
 extra-  cost  directory  features  are  not 
 eligible  for  discount. 

 Not 
 Eligible 

 Distance  Learning 
 Circuits 
 (Telecommunications) 

 Description: 
 Distance  Learning  utilizes  video  and 
 audio  technologies  to  allow  students 
 who  are  remotely  located  from  other 
 students  or  the  lecturer  to  participate 
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 interactively  with  the  class. 
 Eligibility: 
 Transmission  services  that  provide 
 Distance  Learning  are  eligible  for 
 discount.  However,  services  that 
 include  their  own  content  are  not 
 eligible.  See  also  the  entry  for  Wide 
 Area  Network  (WAN)  Services. 

 Fax  Machine  Line 
 (Telecommunications) 
 Description: 
 A  fax  machine  telephone  line  is  a 
 telecommunications  line  specifically 
 dedicated  to  a  school  or  librarys  fax 
 machine. 
 Eligibility: 
 A  fax  machine  line  is  eligible  for 
 discount. 

 Frame  Relay  Service 
 (Telecommunications) 
 Description: 
 Frame  relay  service  is  a  Digital 
 Transmission  Service. 
 Eligibility: 
 Leased  data  circuits  that  connect  an 
 eligible  school  or  library  facility  to  other 
 locations  beyond  the  school  or  library 
 are  eligible  for  discount.  Please  see  the 
 Special  Eligibility  Condition  below  for 
 further  information. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 

 Homework  Hotline 
 Service 
 (Telecommunications) 

 Description: 
 A  Homework  Hotline  Service  is  typically 
 provided  as  a  toll  free  telephone 
 number  for  students  to  contact  the 
 school  regarding  questions  on 
 homework. 
 Eligibility: 
 Telecommunications  Services  and  voice 
 mail  services  used  to  provide  a 
 Homework  Hotline  Service  are  eligible. 
 However,  charges  for  creation, 
 configuration,  or  maintenance  of 
 content  are  not  eligible. 

 Inside  Wire 
 Maintenance  Plan 
 (Telecommunications) 

 Description: 
 An  Inside  Wire  Maintenance  Plan  is  a 
 monthly  recurring  charge  that  provides 
 for  the  repair,  replacement  and 
 maintenance  of  customer  owned  inside 
 premise  wire.  Cost  of  the  service  is 
 sometimes  included  in  regular  monthly 
 bills  for  local  and  long  distance 
 telephone  services. 
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 Eligibility: 
 An  inside  wire  maintenance  plan  is 
 eligible  as  a  component  part  of  a 
 telecommunications  service  if  clearly 
 ancillary  to  such  telecommunications 
 service.  An  inside  wire  maintenance 
 plan  that  does  not  meet  these 
 conditions  may  be  eligible  in  the 
 Internal  Connections  category  of 
 service.  See  the  entry  for  Wire  and 
 Cable  Maintenance  for  further 
 information. 
 Plans  that  provide  network 
 management  of  customer-  owned  wire 
 or  equipment,  in  addition  to 
 maintenance,  are  not  eligible.  Wire 
 maintenance  plans  that  contain 
 provisions  for  a  free  loaner  telephone 
 are  not  eligible  for  discount,  unless  the 
 school  or  library  agrees  not  to  make 
 use  of  the  free  loaner  telephone. 

 Interactive  Television 
 (ITV) 
 (Telecommunications) 

 Description: 
 Interactive  TV  (ITV)  provides  a  means 
 for  a  viewer  to  interact  with  the 
 television  set  in  ways  other  than 
 controlling  the  channel  and  the  volume 
 and  handling  videotapes.  In  an 
 education  setting  such  as  in  a  school, 
 ITV  provides  a  means  for  teachers  and 
 students  who  are  remotely  located  in 
 different  places  to  conduct  a  class  and 
 to  interact  with  each  other.  ITV 
 requires  a  special  set-  top  box  to  be 
 added  to  the  existing  television  set. 
 Eligibility: 
 A  Digital  Transmission  Service  that 
 provides  Interactive  TV  is  eligible  for 
 discount,  provided  that  the  service 
 does  not  include  its  own  content. 
 Please  see  the  Special  Eligibility 
 Condition  below  for  further  information. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 

 Internet2 
 (Telecommunications) 
 Description: 
 Internet2  is  a  consortium  of 
 universities,  industry,  and  government 
 for  development  and  deployment  of 
 advanced  network  applications  and 
 technologies. 
 Eligibility: 
 A  telecommunications  link  that 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  10  Telecommunications  Services 
 connects  an  eligible  entity  to  Internet2 
 is  eligible  for  discount.  Membership 
 dues  or  any  fees  for  non-telecommunications 
 services  are  not 
 eligible. 

 Local  Measured 
 Service 
 (Telecommunications) 

 Description: 
 Local  telephone  companies  use  several 
 methods  to  bill  for  local  wireline 
 service,  such  as  Flat  Rate,  Message 
 Rate,  Measured  Rate,  and  Local 
 Measured  Service.  Local  Measured 
 Service  typically  allows  an  unlimited 
 number  of  incoming  calls.  Outgoing 
 calls  beyond  a  certain  threshold  result 
 in  extra  charges. 
 Eligibility: 
 Local  Measured  Service  and  other 
 billing  options  for  providing  telephone 
 service  are  eligible  for  discount. 

 Long  Distance 
 Telephone  Service 
 (Telecommunications) 

 Description: 
 Long  distance  telephone  service  is 
 provided  by  interexchange  carriers, 
 and  provides  telephone  service  outside 
 of  a  local  calling  area. 
 Eligibility: 
 Long  Distance  Service  and  associated 
 charges  are  eligible  for  discount. 

 Message  Rate  Service 
 (Telecommunications) 
 Description: 
 Local  telephone  companies  use  several 
 methods  to  bill  for  local  wireline 
 service,  such  as  Flat  Rate,  Message 
 Rate,  Measured  Rate,  and  Local 
 Measured  Service.  Message  Rate 
 Service  provides  a  certain  number  of 
 "call  units."  Various  call  lengths  and 
 distances  can  use  a  different  number  of 
 call  units.  Calls  in  excess  of  the 
 message  rate  allocation  result  in 
 additional  charges. 
 Eligibility: 
 Message  Rate  Service  and  other  billing 
 options  for  providing  telephone  service 
 are  eligible  for  discount. 

 Metropolitan  Area 
 Network  (MAN) 
 (Telecommunications) 

 Description: 
 A  Metropolitan  Area  Network  (MAN)  is 
 a  data  network  designed  for  a  town  or 
 city. 
 Eligibility: 
 For  eligibility  under  the  E-  Rate 
 program,  a  MAN  and  a  Wide  Area 
12
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  11  Telecommunications  Services 
 Network  (WAN)  are  considered  the 
 same.  See  the  listing  for  Wide  Area 
 Network  (WAN)  Services  in  this  section 
 for  eligibility  conditions. 

 Network  Access 
 Register 
 (Telecommunications) 

 Description: 
 Used  with  Centrex  service,  the  Network 
 Access  Register  (NAR)  serves  the  same 
 function  as  a  Private  Branch  Exchange 
 (PBX)  trunk  in  that  it  provides  access 
 to  and  from  the  telephone  company 
 central  office.  The  number  of 
 simultaneous  calls  to  and  from  the 
 public  switched  telephone  network  is 
 equal  to  the  number  of  NARs  the 
 Centrex  customer  subscribes  to.  NARs 
 also  may  be  used  in  conjunction  with 
 other  eligible  telecommunications 
 services  such  as  Network  Access 
 Service  and  Network  Access  Register 
 Usage  Package. 
 Eligibility: 
 Network  Access  Registers  are  eligible 
 for  discount. 

 Paging  Service 
 (Telecommunications) 
 Description: 
 Paging  is  a  service  designed  to  deliver 
 a  message  to  a  person  whose  exact 
 location  is  unknown.  The  service 
 employs  radio  signals  that  activate  a 
 paging  receiver  carried  by  the  intended 
 recipient  to  deliver  a  text  or  voice 
 message. 
 Eligibility: 
 Paging  service  is  eligible  for  discount 
 when  it  is  integral,  immediate,  and 
 proximate  to  the  education  of 
 students  or  the  provision  of  services  to 
 library  patrons.  Services  occurring  on  a 
 school  or  library  campus  are  presumed 
 to  meet  this  requirement,  as  well  as, 
 for  example,  paging  services  of  a  bus 
 driver  delivering  students  to  school,  a 
 library  staff  members  use  in  a  mobile 
 van,  and  use  by  teachers  on  field  trips. 
 Please  see  the  Special  Eligibility 
 Condition  below  for  further  information. 
 The  cost  of  pagers  (also  known  as 
 beepers),  paging  equipment,  and 
 maintenance  of  these  products  is  not 
 eligible  for  discount. 
 Special  Eligibility  Conditions: 
 Eligible  Users  and  Locations 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  12  Telecommunications  Services 
 Payphone  Telephone 
 Service 
 (Telecommunications) 

 Description: 
 Payphone  (or  coin)  telephone  service  is 
 provided  in  a  public  or  semi-  public 
 place,  and  requires  the  use  of  coins, 
 credit  card,  pre-  pay  card  or  other 
 means  of  payment  for  the  telephone 
 call,  at  the  time  of  placing  the  call. 
 Eligibility: 
 Both  the  payphone  service  and  the  cost 
 of  the  actual  payphones  are  ineligible 
 for  discount. 

 Not 
 Eligible 

 Permanent  Virtual 
 Circuit 
 (Telecommunications) 

 Description: 
 Permanent  Virtual  Circuits  (PVCs)  are 
 shared  connections  between  end-points. 
 PVCs  play  a  central  role  in 
 Frame  Relay  networks.  They're  also 
 supported  in  some  other  types  of 
 networks,  such  as  X.  25. 
 Eligibility: 
 As  a  component  part  of  a 
 Telecommunications  Service,  the  cost 
 of  PVCs  is  eligible  for  discount. 

 Personal 
 Communications 
 Services  (PCS) 
 (Telecommunications) 

 Description: 
 Personal  Communications  Services 
 (PCS)  is  an  advanced  wireless  network 
 architecture  similar  to  Cellular  Service. 
 Eligibility: 
 The  cost  of  Personal  Communications 
 Service  to  eligible  users  is  eligible  for 
 discount,  but  the  cost  of  telephones  or 
 associated  maintenance  on  the 
 equipment  is  not.  Please  see  the 
 Special  Eligibility  Conditions  below  for 
 further  information. 
 Special  Eligibility  Conditions: 
 Eligible  Users  and  Locations 
 Telephone  Service  and  Technology 
 Plans 

 Phone  Calling  Cards 
 (Telecommunications) 
 Description: 
 Telephone  Calling  Cards  provide  a 
 convenient  means  to  make  long 
 distance  calls  from  any  phone. 
 Eligibility: 
 Calling  cards  that  provide 
 telecommunication  services,  and  used 
 for  eligible  purposes,  are  eligible  for 
 discount. 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  13  Telecommunications  Services 
 PIC  Change  Charge 
 (Telecommunications) 
 Description: 
 The  PIC,  or  Primary  Interexchange 
 Carrier,  is  the  long  distance  company 
 to  which  traffic  from  a  given  location  is 
 automatically  routed  when  dialing  1+ 
 in  an  equal  access  area.  The  selection 
 of  the  carrier  is  done  by  the  local 
 telephone  customer  and  becomes  a 
 part  of  the  telephone  company's 
 records  for  routing  long  distance  calls 
 made  by  the  customers  number.  When 
 the  PIC  is  changed  from  one  long 
 distance  company  to  another  at  the 
 request  of  the  customer  there  is  a  one-time 
 PIC  Change  Charge  assessed  by 
 the  local  telephone  company  to  cover 
 the  cost  of  reprogramming  the 
 telephone  company  central  office 
 switch. 
 Eligibility: 
 The  PIC  Change  Charge  is  eligible  for 
 discount. 

 POTS 
 (Telecommunications) 
 Description: 
 POTS  stands  for  Plain  Old  Telephone 
 Service,  and  provides  local  telephone 
 dial  tone  service. 
 Eligibility: 
 Eligibility  is  limited  to  business 
 telephone  service,  except  in  cases 
 where  state  or  local  law  allows  a  school 
 or  library  to  receive  local  service  at  the 
 residential  rate.  See  the  entry  for 
 Telephone  Service  for  further  eligibility 
 information. 

 Radio  Loop 
 (Telecommunications) 
 Description: 
 Radio  Loop  is  provided  by  a  local 
 exchange  telecommunications  carrier 
 and  is  also  called  Basic  Exchange 
 Telecommunications  Radio  Service 
 (BETRS).  BETRS  is  used  by  local 
 telephone  companies  to  provide  dial 
 tone  to  subscribers  in  certain 
 circumstances,  such  as  when  it  is 
 either  not  technically  possible  or  cost 
 effective  to  provide  the  service  by 
 conventional  means. 
 Eligibility: 
 When  used  as  a  means  of  providing  an 
 otherwise  eligible  Telecommunications 
 Service,  radio  loop  is  eligible  for 
 discounts. 
15
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  14  Telecommunications  Services 
 Residential  Telephone 
 Service 
 (Telecommunications) 

 Description: 
 Residential  telephone  service  is 
 designed  for  homes  and  residences, 
 but  not  commercial  establishments. 
 Eligibility: 
 In  general,  residential  telephone 
 service  is  not  eligible.  Eligibility  is 
 limited  to  business  telephone  service, 
 except  in  cases  where  state  or  local  law 
 allows  a  school  or  library  to  receive 
 local  service  at  the  residential  rate. 

 Reverse  Directory 
 Assistance 
 Description: 
 Reverse  Directory  Assistance  is  a 
 service  that  can  use  a  phone  number 
 to  provide  the  name  and  in  some  cases 
 the  address  of  the  owner  of  that  phone 
 number. 
 Eligibility: 
 Reverse  Directory  Assistance  is  not 
 eligible  for  discount.  See  also  the 
 entry  for  Directory  Assistance. 

 Not 
 Eligible 

 Satellite  Service 
 (Telecommunications) 
 Description: 
 Satellite  service  is  a  Digital 
 Transmission  Service,  or  in  some  cases 
 may  be  provided  by  analog  circuits. 
 Eligibility: 
 Leased  data  circuits  that  connect  an 
 eligible  school  or  library  facility  to  other 
 locations  beyond  the  school  or  library 
 are  eligible  for  discount.  Satellite 
 communication  that  provides  a 
 broadcast  service  is  not  eligible.  Please 
 see  the  Special  Eligibility  Condition 
 below  for  further  information.  See  also 
 the  entry  for  Wireless  Wide  Area 
 Network  for  eligibility  information 
 concerning  satellite  dishes. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 

 Shared  Telephone 
 Service 
 (Telecommunications) 

 Description: 
 Shared  telephone  service  involves  the 
 sharing  of  a  single  service  between  two 
 or  more  entities.  As  an  example,  a 
 telephone  line  may  be  shared  between 
 a  parochial  school  and  the  church 
 administrative  offices. 
 Eligibility: 
 Only  that  portion  of  a  shared  POTS 
 service  relating  to  an  eligible  use  and 
 location  would  be  eligible.  Please  see 
16
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  15  Telecommunications  Services 
 the  Special  Eligibility  Condition  below 
 for  further  information. 
 Special  Eligibility  Conditions: 
 Cost  Allocation 

 Telephone  Service 
 (Telecommunications) 
 Description: 
 Telephone  service  includes  local  phone 
 service  (sometimes  known  as  Plain 
 Old  Telephone  Service  or  POTS), 
 Cellular/  Personal  Communications 
 Service  (PCS),  and  long  distance 
 telephone  service,  and  involves 
 individual  wire  or  wireless  lines 
 provided  by  a  telecommunications 
 provider. 
 Eligibility: 
 Telephone  service  is  eligible.  Please  see 
 the  Special  Eligibility  Conditions  below 
 for  further  information.  Also  see  the 
 entries  in  this  list  for  POTS,  Long 
 Distance  Telephone  Service,  Cellular 
 Service,  and  Personal  Communications 
 Service  (PCS). 
 Special  Eligibility  Conditions: 
 Telephone  Service  and  Technology 
 Plans 
 Eligible  Users  and  Locations 

 Trunk 
 (Telecommunications) 
 Description: 
 A  trunk,  or  transport,  is  a 
 communications  path  between  two 
 switching  systems.  Switching  systems 
 typically  include  equipment  in  a 
 telephone  company  central  office  and  a 
 Private  Branch  Exchange  (PBX). 
 Central  Office  trunks  connect  a  PBX  to 
 the  switching  system  at  the  central 
 office.  Tie  trunks  connect  two  PBXs 
 together. 
 Eligibility: 
 Lease  costs  to  provide  trunks  on  a 
 common  carrier  basis  are  eligible  for 
 funding.  See  also  the  entry  for  Digital 
 Transmission  Services. 

 Video  Services 
 (Telecommunications) 
 Description: 
 Video  services  involve  to  the 
 transmission  of  visual  images. 
 Eligibility: 
 See  the  entry  for  Digital  Transmission 
 Services. 
 Special  Eligibility  Conditions: 
 Digital  Transmission  Services 
17
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  16  Telecommunications  Services 
 Wide  Area  Network 
 (WAN)  Services 
 (Telecommunications) 

 Description: 
 A  wide  area  network  is  a  voice,  data, 
 and/  or  video  network  that  provides 
 connections  from  within  an  eligible 
 school  or  library  to  other  locations 
 beyond  the  school  or  library. 
 Eligibility: 
 The  provision  of  a  wide  area  network 
 communication  service,  irrespective  of 
 technology,  when  provided  on  a 
 common  carrier  basis,  is  an  eligible 
 Telecommunications  Service. 
 Technologies  employed  include  but  are 
 not  limited  to  ATM,  DSL,  DS-  1,  T-  1, 
 fractionalized  T-  1,  Frame  Relay,  ISDN, 
 Satellite,  and  Wireless.  Excluded  from 
 this  definition  are  services  that  provide 
 broadcast  content  or  cable  television, 
 because  these  are  not  considered 
 telecommunications  services. 
 Please  Note  that  the  actual  wires  that 
 carry  information  outside  the  school  or 
 library  facility  are  considered  to  be  the 
 WAN  components.  Network 
 components  such  as  routers  located  at 
 a  school  or  library  facility  are  generally 
 considered  to  be  Internal  Connections, 
 and  therefore  must  meet  the  eligibility 
 conditions  as  given  in  the  Internal 
 Connections  section  of  this  document. 
 However,  charges  for 
 telecommunications  service  over  a 
 WAN  may  include  the  cost  of  leasing 
 on-  premise  WAN  facilities  if  certain 
 limited  conditions  are  met.  Please  see 
 the  Special  Eligibility  Conditions  below 
 for  further  information. 
 Special  Eligibility  Conditions: 
 WAN  Versus  LAN  Components 
 Lease  of  Wide  Area  Network 
 Infrastructure 

 Wireless  Wide  Area 
 Network 
 (Telecommunications) 

 Description: 
 A  wireless  wide  area  network  is  a 
 network  that  meets  the  definition  of  a 
 wide  area  network,  and  uses  radio  or 
 light  to  transmit  information,  without 
 the  use  of  cables. 
 Eligibility: 
 The  same  eligibility  conditions  apply 
 for  the  lease  of  wireless  WANs  as  for 
 other  WANs,  except  that,  in  the  case 
18
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  17  Internet  Access 
 of  Wireless  Wide  Area  Networks,  the 
 radio  frequency  components  such  as 
 transmitter  and  antenna  (or  satellite 
 dish)  are  considered  to  achieve  the 
 same  functionality  as  cabling,  and  are 
 therefore  eligible.  Please  see  the 
 Special  Eligibility  Condition  below  for 
 further  information. 
 For  information  about  wireless  Local 
 Area  Networks,  see  the  entries  in  the 
 Internal  Connections  section  of  this 
 document. 
 Special  Eligibility  Conditions: 
 Wireless  Components 

 Internet  Access 
 Eligibility  Requirements  for  All  Internet  Access  Services: 
 Descriptions  in  this  section  are  limited  to  the  provision  of  basic  conduit 
 access  to  the  Internet,  and  apply  to  services,  not  purchases  of  equipment 
 used  in  Internet  Access.  Service  Providers  for  Internet  Access  need  not  be 
 eligible  telecommunications  providers. 

 Internet  Access  is  an  information  service.  The  Communications  Act  of  1934 
 (as  amended)  defines  an  information  service  as  the  offering  of  a  capability 
 for  generating,  acquiring,  storing,  transforming,  processing,  retrieving, 
 utilizing,  or  making  available  information  via  telecommunications,  and 
 includes  electronic  publishing,  but  does  not  include  any  use  of  any  such 
 capability  for  the  management,  control,  or  operation  of  a  telecommunications 
 system  or  the  management  of  a  telecommunications  service.  [47  U.  S.  C. 
 153(  20)]. 

 Under  FCC  rules,  funding  is  available  for  Internet  access  that  [  transmits] 
 information  as  part  of  a  gateway  to  an  information  service,  where  that 
 transmission  does  not  involve  the  generation  or  alteration  of  the  content  of 
 information  but  may  include  data  transmission,  address  translation,  protocol 
 conversion,  billing  management,  introductory  information  content,  and 
 navigational  systems  that  enable  users  to  access  information  services  that  do 
 not  affect  the  presentation  of  such  information  services  to  users. 

 To  qualify  as  Internet  access,  all  services  must  reach  the  boundary  of  public 
 Internet  space. 
19
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  18  Internet  Access 
 Product  Type 
 (Function) 
 Description  Eligibility 

 Broadband  Internet 
 Access 
 (Internet  Access) 

 Description: 
 Broadband  Internet  Access  provides 
 high-  speed  transmission  through  T-  1 
 lines,  DSL,  Frame  Relay,  cable 
 modems,  wireless  facilities,  or  other 
 technologies. 
 Eligibility: 
 Broadband  Internet  Access  may  be 
 eligible  for  funding  as  Internet  access 
 if  that  offering  is  the  most  cost-effective 
 means  of  accessing  the 
 Internet. 

 Cable  Modem  Service 
 (Internet  Access) 
 Description: 
 Cable  modem  service  provides  a  high-speed 
 data  path  over  TV  coaxial  cable. 
 Eligibility: 
 Applicants  seeking  cable  modem 
 service  should  apply  for  this  service 
 under  Internet  access,  pending  a  final 
 nonappealable  judicial  order 
 determining  the  regulatory  status  of 
 cable  modem  service.  Brand  X 
 Internet  Serv.  v.  Fed.  Comm. 
 Comm'n,  No.  02-  70518,  slip  op.  (9th 
 Cir.,  Oct.  6,  2003)(  per  curiam). 

 Caching  Service 
 (Internet  Access) 
 Description: 
 Caching  service  is  a  special  high-  speed 
 storage  mechanism  at  the  border  of  a 
 network  and  the  Internet  that  holds 
 frequently  accessed  Internet 
 information,  thereby  reducing  retrieval 
 times  for  information  often  requested 
 from  the  Internet. 
 Eligibility: 
 Caching  service  is  not  eligible. 
 However,  please  see  the  Special 
 Eligibility  Conditions  below  for  further 
 information  to  determine  if  the  feature 
 meets  the  ancillary  use  limitations. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 
 Internet  Access  with  Ineligible 
 Features 

 Not 
 Eligible 

 Digital  Subscriber 
 Line  (DSL)  Internet 
 Access 
 (Internet  Access) 

 Description: 
 Digital  Subscriber  Line  (DSL)-  based 
 Internet  access  provides  a  high-  speed 
 data  path  over  wireline  telephone 
 facilities. 
20
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  19  Internet  Access 
 Eligibility: 
 This  offering  is  eligible  for  funding  as 
 Internet  access  if  it  is  the  most  cost 
 effective  way  of  accessing  the 
 Internet. 

 Domain  Name 
 Registration 
 (Internet  Access) 

 Description: 
 Domain  Name  is  the  portion  of  a 
 symbolic  name  that  corresponds  to 
 the  network  number  in  the  IP  address. 
 In  the  symbolic  name  abc@  xyz.  org, 
 the  domain  name  is  xyz.  org.  Domain 
 Name  Registration  is  the  registering  of 
 the  name  and  the  charge  associated 
 with  the  registration  process. 
 Eligibility: 
 Domain  Name  Registration  is  eligible 
 for  discount. 

 Electronic  Library  / 
 On-  line  Public  Access 
 Catalog 
 (Internet  Access) 

 Description: 
 Electronic  Libraries,  On-  line  Public 
 Access  Catalog  Systems,  and  similar 
 services  provide  content  to  users. 
 Eligibility: 
 Electronic  Libraries  or  On-  Line  Public 
 Access  Catalog  Systems  that  charge  a 
 fee  for  accessing  library  catalog 
 systems,  searching  or  using 
 references  as  a  part  of  Internet  access 
 are  ineligible  for  discount.  Any 
 software  associated  with  electronic 
 library  public  access  is  also  ineligible 
 for  discount. 

 Not 
 Eligible 

 E-  mail  Account  Fees 
 (Internet  Access) 
 Description: 
 E-  Mail  account  fees  are  charges  for 
 individual  user  access  to  e-  mail 
 services. 
 Eligibility: 
 E-  Mail  account  fees  are  eligible. 

 E-  mail  Service 
 (Internet  Access) 
 Description: 
 E-  Mail  Service  provides  for  the 
 transmission  of  simple  text  messages 
 and  other  embedded  data. 
 Eligibility: 
 E-  mail  service  is  eligible  for  discount. 
 Services  that  provide  substantial 
 ineligible  features  (such  as  calendaring 
 and/  or  non-  e-  mail  file  storage)  in 
 addition  to  eligible  e-  mail  must 
 remove  the  cost  of  ineligible 
 components  through  cost  allocation. 
21
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  20  Internet  Access 
 Special  Eligibility  Conditions: 
 Cost  Allocation 
 Internet  Access  with  Ineligible 
 Features 

 Filtering  Service 
 (Internet  Access) 
 Description: 
 Filtering  is  software  or  a  combination 
 software/  firmware  that  protects  users 
 from  dangerous  or  inappropriate 
 content  on  the  Internet  by  blocking 
 Web,  FTP  and/  or  Gopher  sites.  It  may 
 be  provided  by  an  Internet  provider  as 
 a  monthly  service. 
 Eligibility: 
 Filtering  is  not  eligible  for  discount, 
 whether  as  a  service  or  if  purchased 
 software.  Please  see  the  Special 
 Eligibility  Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 
 Internet  Access  with  Ineligible 
 Features 

 Not 
 Eligible 

 Firewall  Service 
 (Internet  Access) 
 Description: 
 Firewall  Service  provides  protection 
 against  unauthorized  access. 
 Eligibility: 
 A  firewall  service  may  be  funded  as  a 
 part  of  Internet  access  because  a 
 firewall  is  necessary  to  ensure 
 continued  operation  of  the  network. 

 GSP  Rates 
 (Internet  Access) 
 Description: 
 GSP  is  short  for  Global  Service 
 Provider.  The  GSP  provides  connection 
 between  the  ISP  network  and  the 
 global  Internet  network.  In  some 
 cases,  there  can  be  separate  charges 
 for  this  component  of  Internet  access. 
 Eligibility: 
 A  charge  for  the  Global  Service 
 Provider  is  eligible  if  the  total  price  of 
 Internet  access,  including  this 
 component,  is  the  most  cost-  effective 
 means  for  obtaining  access. 

 Internet  Access 
 (Internet  Access) 
 Description: 
 Internet  access  provides  access  to 
 the  world-  wide  information  resource  of 
 the  Internet,  and  includes  features 
 typically  provided  for  adequate 
 functionality  and  performance,  when 
 included  as  a  standard  component  of  a 
22
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  21  Internet  Access 
 vendors  Internet  access  service.  Such 
 features  could  include  Domain  Name 
 Service,  to  assist  use  of  the  standard 
 Internet  naming  convention;  Dynamic 
 Host  Configuration  Protocol,  to  assist 
 with  providing  devices  with  a  unique 
 address;  and  e-  mail. 
 Eligibility: 
 Internet  access,  regardless  of 
 technology  platform,  is  eligible  for 
 discount.  Such  access  may  include 
 transport  of  digital  communication 
 using  any  Internet-  based  protocols, 
 including  encapsulation  of  data,  video, 
 or  voice  so  long  as  this  is  the  most 
 cost  effective  way  to  access  the 
 Internet.  In  addition,  features  that  are 
 not  themselves  eligible,  such  as 
 caching  and  filtering,  can  be  included 
 if  an  integral  component  part  of  the 
 service,  and  the  inclusion  of  these 
 features  meets  the  limitations  given  in 
 the  Special  Eligibility  Condition  for 
 "Ancillary  Use."  Please  see  the  Special 
 Eligibility  Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 
 Internet  Access  with  Ineligible 
 Features 

 Internet  Content 
 (Internet  Access) 
 Description: 
 Some  Internet  content  is  only 
 available  at  a  separate,  additional 
 cost,  above  the  cost  of  Internet  access 
 itself.  Examples  include  extra-  cost 
 electronic  libraries,  on-  line  news 
 services,  administration  application 
 tools,  performance  monitoring  (e.  g., 
 tracking  of  grades,  attendance, 
 homework  assignments),  classroom 
 management  tools,  address  books, 
 and  file  storage. 
 Eligibility: 
 Internet  access  that  provides  features 
 or  content  that  go  beyond  basic 
 conduit  access  to  the  Internet  is  not 
 eligible  for  funding.  E-  mail  service  and 
 e-  mail  account  fees  are  not  considered 
 Internet  content. 
 In  addition,  applicants  may  accept  an 
 Internet  access  service  with  minimal 

 Not 
 Eligible 
23
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  22  Internet  Access 
 content  included  if  the  feature  meets 
 the  limitations  given  in  the  Special 
 Eligibility  Condition  for  "Ancillary  Use." 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 
 Internet  Access  with  Ineligible 
 Features 

 Internet  Training 
 (Internet  Access) 
 Description: 
 Internet  training  is  training  in  the  use 
 of  the  Internet,  and  also  includes 
 training  available  over  the  Internet. 
 Eligibility: 
 Extra-  cost  Internet  training  is 
 ineligible. 

 Not 
 Eligible 

 Internet2 
 (Internet  Access) 
 Description: 
 Internet2  is  a  consortium  of 
 universities,  industry,  and  government 
 for  development  and  deployment  of 
 advanced  network  applications  and 
 technologies. 
 Eligibility: 
 Membership  dues  or  any  fees  for 
 access  to  content,  including  content 
 available  through  Internet2,  are  not 
 eligible  for  discount.  However,  a  link 
 that  connects  an  eligible  entity  to 
 Internet2  can  be  eligible  as  a 
 telecommunications  service.  See  the 
 Internet2  entry  in  the 
 Telecommunications  Services  section 
 for  additional  information. 

 Not 
 Eligible 

 Specialized  Services 
 (Internet  Access) 
 Description: 
 "Specialized  Services"  refers  to  extra-cost 
 services  that  go  beyond  basic 
 conduit  access  to  the  Internet. 
 Eligibility: 
 Extra-  cost  services  that  go  beyond 
 basic  conduit  access  to  the  Internet, 
 and  are  not  otherwise  indicated  as 
 eligible  in  this  Eligible  Services  List, 
 are  not  eligible  for  discount. 

 Not 
 Eligible 

 Web  Casting 
 (Internet  Access) 
 Description: 
 Web  Casting  is  a  service  provided  over 
 the  Internet  that  delivers  news  to  your 
 E-  Mail  address.  A  user  accesses  a  Web 
 Casting  site  and  chooses  what  news 
 content  he/  she  wants  to  be  informed 

 Not 
 Eligible 
24
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  23  Internet  Access 
 about.  Going  forward,  every  time  the 
 user  logs  on,  information  content  will 
 be  delivered  to  the  user's  mailbox  by 
 the  Web  Casting  supplier. 
 Eligibility: 
 Charges  for  a  web  casting  service  are 
 not  eligible  for  discount  under  the  E-Rate 
 program. 

 Web  Hosting 
 (Internet  Access) 
 Description: 
 Web  Hosting  is  an  Internet  service 
 provided  by  an  Internet  Service 
 Provider.  The  ISP  will  host  a  school  or 
 library's  website  (e.  g., 
 www.  schoolname.  org)  as  part  of  the 
 ISP  bundled  service  offering,  or  as  an 
 optional  service. 
 Eligibility: 
 Web  Hosting  services  that  provide  a 
 means  for  a  school  or  library  to 
 display  content  on  the  Internet  is 
 eligible  for  discount.  However, 
 eligibility  is  limited  to  the  hosting 
 service  only,  and  not  the  creation  or 
 modification  of  content,  which  is  not 
 eligible. 

 Web  Site  Creation 
 Fee 
 (Internet  Access) 

 Description: 
 A  web  site  creation  fee  is  a  separate 
 charge  for  creating  a  website  or 
 setting  up  a  web  address. 
 Eligibility: 
 A  web  site  creation  fee  is  not  eligible. 

 Not 
 Eligible 

 Wide  Area  Network 
 (WAN) 
 (Internet  Access) 

 Description: 
 A  wide  area  network  is  a  voice,  data, 
 and/  or  video  network  that  provides 
 connections  from  within  an  eligible 
 school  or  library  to  other  locations 
 beyond  the  school  or  library. 
 Eligibility: 
 An  integrated  information  service  that 
 provides  Internet  Access  through  a 
 Wide  Area  Network  may  be  eligible  for 
 funding  as  Internet  access  if  that 
 offering  is  the  most  cost  effective 
 means  of  accessing  the  Internet. 
 Charges  for  Internet  access  may 
 include  the  cost  of  leasing  on-  premise 
 WAN  facilities  if  certain  limited 
 conditions  are  met.  Please  see  the 
 Special  Eligibility  Conditions  below  for 
 further  information. 
25
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  24  Internal  Connections 
 Special  Eligibility  Conditions: 
 WAN  Versus  LAN  Components 
 Lease  of  Wide  Area  Network 
 Infrastructure 

 Wireless  Internet 
 Access 
 (Internet  Access) 

 Description: 
 Wireless  Internet  access  provides 
 connectivity  to  the  Internet  via 
 wireless  technology. 
 Eligibility: 
 A  wireless  service  that  provides 
 Internet  Access  or  Internet-  based  e-mail 
 to  eligible  locations  is  eligible 
 under  the  same  provisions  as  wired 
 access  to  the  Internet,  if  the  wireless 
 service  is  the  most  cost  effective 
 means  of  accessing  the  Internet  or 
 obtaining  Internet-  based  e-  mail. 
 Please  see  the  Special  Eligibility 
 Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Wireless  Components 

 Internal  Connections 
 Eligibility  Requirements  for  All  Internal  Connections: 
 Internal  connections  are  components  located  at  the  applicant  site  that  are 
 necessary  to  transport  information  to  classrooms,  publicly  accessible  rooms 
 of  a  library,  and  to  eligible  administrative  areas  or  buildings.  Internal 
 Connections  include  connections  within,  between  or  among  instructional 
 buildings  that  comprise  a  school  campus  or  library  branch,  but  do  not  include 
 services  that  extend  beyond  the  school  campus  or  library  branch.  For  further 
 information,  see  the  Special  Eligibility  Condition  for  Eligible  Users  and 
 Locations  and  for  WAN  Versus  LAN  Components. 

 Some  products  may  contain  both  eligible  and  ineligible  features.  In  general, 
 funding  requests  that  provide  only  a  single  price  for  both  eligible  and 
 ineligible  features  are  fully  ineligible.  However,  cost  allocation  may  be  used 
 to  provide  separated  pricing  for  the  eligible  and  ineligible  components. 
 However,  in  limited  cases,  if  such  functionality  is  an  integral  component  part, 
 is  not  separately  priced,  and  constitutes  only  an  ancillary  feature,  the  full 
 cost  of  the  component  can  be  eligible.  For  further  information  in  determining 
 whether  cost  allocation  is  required,  or  whether  a  feature  can  be  considered 
 ancillary,  see  the  Special  Eligibility  Conditions  for  Cost  Allocation  and  for 
 Ancillary  Use. 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  25  Internal  Connections 
 A  functional  category  is  provided  in  parentheses  for  each  Internal 
 Connections  entry.  A  description  for  these  additional  categorizations 
 is  provided  in  the  Special  Eligibility  Condition  for  Functional  Categories  for 
 Internal  Connections. 

 Product  Type 
 (Function) 
 Description  Eligibility 

 Access  Point 
 (Data  distribution) 
 Description: 
 An  Access  Point  is  a  base  station  in  a 
 wireless  LAN.  Access  points  are 
 typically  stand-  alone  devices  that  may 
 plug  into  an  Ethernet  hub  or  server,  or 
 may  provide  a  repeater  function  for 
 wireless  networks. 
 Eligibility: 
 An  access  point  provides  for  wireless 
 networks  what  cabling  provides  for 
 wired  networks.  Therefore,  access 
 points  are  "an  essential  element  in  the 
 transmission  of  information  within  the 
 school  or  library."  Note,  however,  that 
 eligibility  is  based  on  Internal 
 Connections,  i.  e.,  use  in  a  LAN  (not  a 
 WAN)  environment. 
 Special  Eligibility  Conditions: 
 WAN  Versus  LAN  Components 

 Antenna 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 An  antenna  is  a  device  for 
 transmitting  and/  or  receiving  radio 
 frequency  signals. 
 Eligibility: 
 Antennas  provided  as  part  of  Wireless 
 Local  Area  Networks  (LANs)  are 
 eligible  for  discount  if  they  are 
 separately  priced  on  a  contract  or  are 
 sold  separately.  Antennas  embedded 
 in  ineligible  equipment,  such  as 
 computer  workstations,  and  not 
 separately  priced  on  a  contract,  are 
 not  eligible. 
 Antennas  used  for  the  receipt  of  over-the- 
 air  radio  and  television  broadcast 
 signals,  or  radio  signals  from  cable 
 television  operators,  are  not  eligible. 
 Antennas  used  for  Wireless  Wide  Area 
 Networks  (WANs)  are  not  eligible  as 
 Internal  Connections,  but  may  be 
 eligible  when  leased  as  a  part  of 
 Telecommunications  Services  or 
27
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  26  Internal  Connections 
 Internet  Access.  For  further 
 information,  see  the  entries  for  Wide 
 Area  Network  (WAN)  Services  and 
 Wireless  Wide  Area  Network  in  the 
 Telecommunications  Services  section, 
 and  the  entry  for  Wireless  Internet 
 Access  in  the  Internet  Access  section. 

 Application  software 
 (Software) 
 Description: 
 Application  software  applies  to 
 software  accessed  directly  by  end-users, 
 such  as  word  processors, 
 spreadsheets,  and  graphics  programs. 
 Eligibility: 
 Application  software  is  not  eligible. 

 Not  Eligible 

 Asbestos  removal 
 (None) 
 Description: 
 Some  older  buildings  were 
 constructed  using  products  that 
 contain  asbestos.  Asbestos  has  been 
 determined  to  be  harmful  to  health, 
 so  construction  in  such  buildings, 
 which  can  make  asbestos  fibers  air-born, 
 is  often  a  difficult  and  costly 
 process. 
 Eligibility: 
 The  cost  incurred  in  the  removal  of 
 asbestos  is  not  eligible  for  discount. 

 Not  Eligible 

 Automatic  Call 
 Distribution  System 
 (ACD) 
 (Telephony 
 Components) 

 Description: 
 An  Automatic  Call  Distribution  system, 
 typically  used  with  a  PBX,  provides  a 
 means  of  automatically  distributing 
 calls  evenly,  on  a  next  available  agent 
 basis  so  that  productivity  is 
 maintained  and  inbound  calls  are 
 handled  efficiently.  The  system  also 
 allows  the  monitoring  of  operation  on 
 a  real  time  basis.  Additionally,  some 
 systems  compile  historic  reports  that 
 enable  better  utilization  of  resources 
 in  the  handling  of  incoming  calls. 
 Eligibility: 
 An  Automatic  Call  Distribution  System 
 is  not  eligible. 

 Not  Eligible 

 Automatic  Route 
 Selection  (ARS) 
 (Telephony 
 Components) 

 Description: 
 Automatic  Route  Selection  (ARS)  is  a 
 PBX  and  Centrex  service  that  allows 
 for  automatic  selection  of  the  most 
 efficient  and  cost  effective  route.  It 
 may  also  be  referred  to  as  "least  cost 
 routing".  By  using  the  ARS  feature, 
 PBX  and  Centrex  stations  are  routed 
28
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  27  Internal  Connections 
 to  the  most  cost  efficient  service,  or 
 facilities,  to  make  outgoing  telephone 
 calls. 
 Eligibility: 
 The  cost  of  the  equipment  required  to 
 provide  ARS  is  eligible  for  discount. 

 Bridge 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  bridge  is  a  data  communications 
 device  that  connects  two  or  more 
 network  segments,  often  translating 
 information  from  one  type  of  network 
 protocol  to  another. 
 Eligibility: 
 A  bridge  that  interconnects  network 
 segments  within  the  same  campus  or 
 location  is  eligible  if  used  for  an 
 eligible  purpose.  The  use  of  bridges 
 or  other  devices  for  caching  or  other 
 ineligible  functions  is  not  eligible. 
 Wireless  or  other  bridges  used  to 
 connect  locations  across  a  public  right 
 of  way  are  presumed  to  be  Wide  Area 
 Network  components,  and  are  not 
 eligible  as  Internal  Connections. 

 Broadcast  /  cable 
 equipment 
 (Video  Components) 

 Description: 
 Broadcast  /  cable  equipment  applies 
 to  equipment  used  in  the  transmission 
 or  receipt  of  broadcast  TV,  broadcast 
 radio,  or  cable  television  service.  This 
 includes  head-  end  equipment  that  is 
 located  at  the  originating  point  for 
 signals  in  a  cable  TV  system. 
 Eligibility: 
 Broadcast  and  cable  are  separate 
 services  from  telecommunication  and 
 Internet  access,  and  therefore 
 equipment  used  in  the  transmission  or 
 receipt  of  these  services  is  not 
 eligible. 

 Not  Eligible 

 Cable  Modem 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  cable  modem  is  a  modem  designed 
 for  use  on  a  TV  coaxial  cable  circuit, 
 and  provides  a  high-  speed  data  path. 
 Eligibility: 
 If  used  to  provide  Internet  Access, 
 cable  modems  are  eligible.  If  used  for 
 cable  TV  service,  they  are  not  eligible. 
 A  cable  modem  may  be  leased  as  part 
 of  an  Internet  Access  Service. 
29
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  28  Internal  Connections 
 Cabling 
 (Cabling/  connectors) 
 Description: 
 Cabling  provides  electrical  (or,  in  the 
 case  of  fiber  optics,  lightwave) 
 connectivity  between  points. 
 Eligibility: 
 Cabling  and  related  components  that 
 are  eligible  for  discount  include,  but 
 are  not  limited  to:  cable 
 (copper/  fiber/  coax/  twisted  pair),  bays, 
 jacks,  blocks,  panels,  and  terminals 
 necessary  to  transport  information  all 
 the  way  to  individual  classrooms. 
 Wiring  that  provides  electrical  service 
 is  not  eligible. 

 Caching  Components 
 (Computers) 
 Description: 
 Caching  is  a  method  that  stores 
 recently  accessed  information,  so  that 
 it  can  be  displayed  more  quickly  if 
 required  again. 
 Eligibility: 
 Devices  such  as  caching  servers  that 
 store  information  accessed  from  the 
 Internet  may  improve  the  delivery  of 
 information,  but  are  not  essential  for 
 transporting  this  information  to  the 
 classroom  or  library.  Therefore  such 
 devices  are  not  eligible.  Some 
 otherwise  eligible  devices  provide 
 caching  on  an  ancillary  basis,  and 
 funding  for  the  eligible  device  is 
 possible  in  some  cases.  Please  see 
 the  Special  Eligibility  Condition  below 
 for  further  information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Not  Eligible 

 Call  Accounting 
 System 
 (Telephony 
 Components) 

 Description: 
 A  Call  Accounting  System  records 
 information  about  telephone  calls.  It 
 can  provide  comprehensive  call 
 costing  by  associating  call  records 
 with  users,  phone  extensions,  or 
 profiles. 
 Eligibility: 
 Call  accounting  systems  are  not 
 necessary  to  transport 
 Telecommunications  or  Internet 
 access  to  the  classroom  or  publicly 
 accessible  rooms  of  a  library,  and  are 
 not  eligible  for  discount. 

 Not  Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  29  Internal  Connections 
 Call  Sequencer 
 (Telephony 
 Components) 

 Description: 
 An  Automatic  Call  Sequencer  is  a 
 device  or  adjunct  piece  of  equipment, 
 used  with  a  PBX  or  Key  system.  The 
 call  sequencer  distributes  incoming 
 telephone  calls  among  a  select 
 number  of  stations  or  telephones.  It 
 may  also  be  used  to  answer  incoming 
 telephone  calls  and  provide 
 prerecorded  announcements  to  the 
 caller.  Some  call  sequencers  are  also 
 designed  to  generate  statistical 
 reports  on  number  of  calls  and  how 
 those  calls  were  handled. 
 Eligibility: 
 Call  sequencers  are  not  necessary  to 
 transport  Telecommunications  or 
 Internet  access  to  the  classroom  or 
 publicly  accessible  rooms  of  a  library, 
 and  are  not  eligible  for  discount. 

 Not  Eligible 

 Camera 
 (End-  user) 
 Description: 
 A  camera  is  a  device  for  taking  visual 
 pictures,  either  still  or  moving. 
 Eligibility: 
 End  user  equipment  is  not  eligible. 
 Equipment  used  in  the  creation  or 
 display  of  content  is  not  eligible. 

 Not  Eligible 

 Cartridge  Magnetic 
 Tape 
 (Storage  Devices) 

 Description: 
 Cartridge  Magnetic  Tape  provides 
 replaceable  storage  capacity,  and  is 
 used  in  tape  backup  devices. 
 Eligibility: 
 Cartridge  Magnetic  Tape  is  an 
 expendable  item  and  is  not  eligible  for 
 discounts. 

 Not  Eligible 

 CD/  DVD  Player 
 (End-  user) 
 Description: 
 A  Compact  Disc  or  Digital  Video  Disc 
 (CD/  DVD)  Player  is  a  device  that  plays 
 or  reproduces  the  music,  voice  and/  or 
 video  from  a  Digital  Video  Disc. 
 Eligibility: 
 A  Compact  Disc  or  Digital  Video  Disc 
 (CD/  DVD)  Player  is  not  eligible  for 
 discount.  However,  a  CD/  DVD  drive 
 may  be  provided  as  an  integral 
 component  of  an  eligible  product  such 
 as  an  eligible  file  server,  if  it  is  part  of 
 the  standard  product  configuration 
 and  provided  at  no  additional  cost. 
 Please  see  the  Special  Eligibility 

 Not  Eligible 
31
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  30  Internal  Connections 
 Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Channel  Service  Unit 
 /  Data  Service  Unit 
 (CSU/  DSU) 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  CSU/  DSU  is  a  device  that  terminates 
 a  digital  channel  at  a  customer 
 premises.  It  performs  certain  line 
 coding,  line  conditioning,  and  line 
 equalization  functions,  and  it  responds 
 to  loop  back  commands  sent  from  the 
 telephone  company  central  office.  A 
 CSU/  DSU  sits  between  the  digital  line 
 entering  the  customer  premises  from 
 the  central  office  and  devices  such  as 
 channel  banks  or  data 
 communications  devices. 
 Eligibility: 
 The  purchase  of  a  CSU/  DSU  is  eligible 
 as  Internal  Connections.  Alternatively, 
 a  CSU/  DSU  may  be  leased  as  part  of 
 an  eligible  Telecommunications  or 
 Internet  Access  service. 

 Circuit  Card 
 (Circuit 
 cards/  components) 

 Description: 
 A  Circuit  Card  is  a  board  with 
 microprocessors,  transistors,  and 
 other  small  electronic  components. 
 Such  a  board  slides  into  the  slot  of  a 
 telephone  system,  personal  computer, 
 or  other  electronic  equipment. 
 Eligibility: 
 To  be  eligible,  the  circuit  card  must  be 
 a  necessary  part  of  eligible 
 equipment,  e.  g.,  part  of  an  eligible 
 PBX,  router,  or  file  server. 

 Client  Access  License 
 (Software) 
 Description: 
 A  Client  Access  License  is  a  software 
 licensing  approach  used  by  some 
 vendors,  and  provides  authorization  to 
 access  a  software  product. 
 Eligibility: 
 Client  Access  Licenses  that  provide 
 access  to  eligible  software  are  in  turn 
 eligible.  For  example,  Client  Access 
 Licenses  for  an  eligible  network 
 operating  system  are  eligible.  Client 
 Access  Licenses  for  word  processing 
 or  spreadsheet  software  are  not 
 eligible. 
32
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  31  Internal  Connections 
 CODEC  /  Video 
 Encoder 
 (Video  Components) 

 Description: 
 A  CODEC  ("  coder/  decoder"),  also 
 known  as  a  video  encoder,  is  a  device 
 comprising  an  encoder  and  decoder  in 
 the  same  equipment.  The  CODEC 
 produces  a  coded  output  and 
 compresses  and  decompresses  audio 
 and  video  signals. 
 Eligibility: 
 A  CODEC  or  video  encoder  is  eligible 
 for  discount. 

 Conduit,  raceway, 
 power  poles 
 (Cabling/  connectors) 

 Description: 
 Conduit,  raceway,  and  power  poles 
 are  metal  or  plastic  pipe  used  to 
 protect  cable. 
 Eligibility: 
 Conduit,  raceway,  and  power  poles 
 are  eligible  if  used  for  housing  eligible 
 internal  connections  cabling.  Conduit, 
 raceway,  and  power  poles  used  for 
 electrical  service  wiring  are  not 
 eligible.  If  conduit  has  a  mixed  use, 
 such  as  for  both  electrical  wiring  and 
 network  cabling,  cost  of  the  ineligible 
 portion  must  be  excluded.  For  further 
 information,  please  see  the  Special 
 Eligibility  Condition  for  Cost  Allocation. 
 Special  Eligibility  Conditions: 
 Cost  Allocation 

 Connector 
 (Cabling/  connectors) 
 Description: 
 A  cable  connector  is  a  device  that 
 connects  wires  or  fibers. 
 Eligibility: 
 Cable  connectors  for  eligible  cabling  or 
 equipment  are  eligible. 

 Consumables 
 (None) 
 Description: 
 Consumables  consist  of  miscellaneous 
 components  that  are  depleted  with 
 use,  such  as  tape,  splicing  materials, 
 labels,  and  wire  wrap. 
 Eligibility: 
 Consumables  are  eligible  if  included  as 
 part  of  the  original  installation  of 
 eligible  components.  Consumable 
 products  are  ineligible  when  they  are 
 not  included  as  part  of  an  original 
 installation.  Consumable  kits  which 
 contain  installation  tools  are  ineligible. 
33
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  32  Internal  Connections 
 Coupler 
 (Cabling/  connectors) 
 Description: 
 A  coupler  is  a  passive  device  that 
 accepts  one  input  broadband  signal 
 and  replicates  it  onto  two  or  more 
 outputs. 
 Eligibility: 
 A  coupler  used  in  the  installation  of 
 eligible  coaxial  cable  is  eligible  for 
 discount.  A  coupler  used  for  the 
 installation  of  cable  television  service, 
 or  other  ineligible  use,  is  not  eligible 
 for  discount. 

 Disaster  recovery 
 (Data  protection) 
 Description: 
 Disaster  recovery  describes  a  means 
 of  restoring  service  to  a  computer 
 network  that  has  suffered  a  disaster. 
 Such  costs  may  include  the  rental  of  a 
 site  that  houses  links  and  equipment 
 that  is  modeled  after  the  network. 
 Eligibility: 
 Disaster  Recovery  is  not  eligible. 

 Not  Eligible 

 Documentation 
 (Technical  Services) 
 Description: 
 Documentation  includes  support 
 material  provided  in  the  form  of  paper 
 or  electronic  media.  It  may  include 
 diagrams,  blueprints,  equipment 
 specifications  or  instruction  manuals 
 for  services  and  products. 
 Eligibility: 
 Basic  documentation  is  eligible  for 
 discount  if  provided  as  part  of  the 
 purchase  or  installation  of  eligible 
 equipment  or  eligible  services. 

 E911  Reader  Board 
 (Telephony 
 Components) 

 Description: 
 The  E911  Reader  Board  is  adjunct 
 hardware  for  a  PBX  and  used  to 
 access  E911  Emergency  service. 
 Eligibility: 
 An  E911  Reader  Board  is  eligible. 

 Electrical  System 
 Upgrades 
 (None) 

 Description: 
 "Electrical  system  upgrades"  refers  to 
 products  and  services  that  provide, 
 upgrade,  or  enhance  the  provision  of 
 electrical  power. 
 Eligibility: 
 The  addition  of  electrical  circuits  and 
 outlets  to  accommodate  computer 
 hardware  is  not  eligible.  However,  a 
 power  adapter  that  converts  wall 
 power  to  a  different  voltage  required 

 Not  Eligible 
34
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  33  Internal  Connections 
 for  operation  of  an  eligible  component 
 is  eligible. 

 E-  mail  Software 
 (Software) 
 Description: 
 E-  mail  software  provides  functionality 
 for  sending  and  receiving  e-  mail 
 messages. 
 Eligibility: 
 A  server-  based,  shared  software 
 product  that  provides  e-  mail  service  is 
 eligible.  Such  e-  mail  software  may 
 include  basic  calendar  or  scheduling 
 functionality  on  an  ancillary  basis,  but 
 substantial  additional  functionality, 
 including  database,  workflow,  or 
 groupware  features,  would  make  the 
 software  product  ineligible,  unless  the 
 ineligible  portions  are  cost  allocated. 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Software 
 Cost  Allocation 

 Environmental 
 Monitoring 
 Components 
 (Data  protection) 

 Description: 
 Environmental  Monitoring  components 
 provide  information  about  heat, 
 humidity,  or  other  factors  in  order  to 
 provide  a  warning  system  for 
 conditions  that  may  affect  the  correct 
 operation  of  equipment.  For  example, 
 and  environmental  monitoring  card  is 
 sometimes  available  as  an  optional 
 feature  of  an  uninterruptible  power 
 supply,  and  is  used  to  monitor  the 
 environmental  conditions  of  a  rack, 
 computer  room,  or  data  center. 
 Eligibility: 
 Environmental  monitoring  components 
 are  used  to  monitor  or  provide  climate 
 control  and  are  not  required  to  deliver 
 information  to  individual  classrooms 
 or  public  areas  of  a  library.  Such 
 components  are  not  eligible  for 
 discount. 

 Not  Eligible 

 Faceplate 
 (Cabling/  connectors) 
 Description: 
 A  faceplate  is  a  cover  that  fits  over  a 
 jack,  outlet,  or  dial. 
 Eligibility: 
 Faceplates  for  telephones  and  end 
 user  equipment  are  not  eligible. 
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 Faceplates  for  electrical  outlets  are 
 not  eligible.  Faceplates  for  a 
 communications  jack  or  data  outlet 
 are  eligible. 

 Fax  Machine 
 (End-  user) 
 Description: 
 Short  for  facsimile,  a  fax  machine  is  a 
 device  in  which  the  image  of  a 
 document  is  electronically  transferred 
 over  the  telephone  network  and 
 printed  out  elsewhere. 
 Eligibility: 
 Fax  machines  are  not  eligible  for 
 discount. 

 Not  Eligible 

 File  server 
 (Computers) 
 Description: 
 A  file  server  is  a  shared  computer  on  a 
 local  area  network. 
 Eligibility: 
 Servers  are  conditionally  eligible  for 
 discount.  File  servers  must  serve  as  a 
 conduit  for  information  rather  than  as 
 a  source  for  content  to  be  eligible.  File 
 servers  used  principally  to  supplement 
 storage  requirements  of  personal 
 computers  on  a  network  are  not 
 eligible.  A  network  operating  system 
 associated  with  an  eligible  file  server 
 is  likewise  eligible  for  discount, 
 including  functionality  provided  with 
 the  core  network  operating  system  at 
 no  cost. 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information.  In  addition,  see  the 
 separate  entries  for  Web  Server  and 
 Remote  Access  Server  for  eligibility 
 information  about  these  server  types. 
 Special  Eligibility  Conditions: 
 Network  File  Servers 
 Cost  Allocation  for  File  Servers 

 Firewall 
 (Data  protection) 
 Description: 
 A  firewall  is  a  hardware  and  software 
 combination  that  sits  at  the  boundary 
 between  an  organization's  network 
 and  the  outside  world,  and  protects 
 the  network  against  unauthorized 
 access  or  intrusions. 
 Eligibility: 
 A  firewall  is  eligible  for  discount  if  it 
 provides  basic  and  reasonable  security 
 protections  to  prevent  unauthorized 
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 access  to  the  information,  software, 
 and  systems  of  an  applicants  eligible 
 components. 

 FRAD 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 Short  for  Frame  Relay 
 Assembler/  Disassembler,  the  FRAD  is 
 a  communications  device  that  breaks 
 a  data  stream  into  frames  for 
 transmission  over  a  Frame  Relay 
 network  and  recreates  a  data  stream 
 from  incoming  frames.  A  Frame  Relay 
 router  serves  the  same  purpose  but 
 provides  more  intelligence  in  avoiding 
 congestion. 
 Eligibility: 
 FRADs  are  eligible  for  discount. 

 Gateway 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  gateway  is  a  network  device  that 
 acts  as  an  entrance  to  another 
 network,  and  often  is  used  to  connect 
 two  otherwise  incompatible  networks. 
 Eligibility: 
 A  gateway  that  interconnects  network 
 segments  is  eligible  if  used  for  an 
 eligible  purpose.  The  use  of  gateways 
 or  other  devices  for  caching,  proxy 
 servers,  or  other  ineligible  function  is 
 not  eligible. 

 Hard  disk  drive 
 (Storage  Devices) 
 Description: 
 A  hard  disk  drive  is  a  storage  device 
 that  consists  of  magnetic  platters  that 
 spin  like  a  record  player,  and 
 magnetic  pickup  devices,  called 
 heads,  that  are  like  the  needle  of  the 
 record  player.  All  this  is  sealed  in  a 
 vacuum  in  order  to  maintain  tight 
 tolerances  and  enhance  service  life. 
 Eligibility: 
 Hard  disk  drives,  including  arrays  of 
 multiple  drives,  are  eligible  for 
 discount  if  used  with  an  eligible 
 component  such  as  an  eligible  server, 
 for  an  eligible  use,  e.  g.,  if  they  are  an 
 essential  element  in  the  transmission 
 of  information  within  the  school  or 
 library.  Hard  drives  and  other  storage 
 devices  are  not  eligible  if  used 
 principally  to  supplement  storage 
 requirements  of  personal  computers 
 on  a  network.  Please  see  the  Special 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  36  Internal  Connections 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Storage 

 Head  End  Equipment 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 Head  End  Equipment  is  located  at  the 
 originating  point  for  signals  in  cable 
 TV  systems. 
 Eligibility: 
 Head  End  Equipment  is  not  eligible  for 
 discount. 

 Not  Eligible 

 Homework  Hotline 
 Equipment 
 (Telephony 
 Components) 

 Description: 
 Homework  Hotline  equipment  provides 
 an  automated  response  or  call  routing 
 system  that  provides  information  to 
 callers  about  school  assignments. 
 Eligibility: 
 Equipment  used  to  provide  a 
 Homework  Hotline,  including  text  to 
 voice  translation  modules,  recording 
 devices,  automatic  dialers,  automatic 
 call  directors  and  other  components 
 are  not  eligible  for  discount.  However, 
 some  aspects  of  a  Homework  Hotline 
 Service  may  be  eligible  as  a 
 Telecommunications  Service.  See  the 
 entry  for  Homework  Hotline  in  that 
 section  of  this  document. 

 Not  Eligible 

 Hub 
 (Data  distribution) 
 Description: 
 Hubs  are  central  connection  points  for 
 many  types  of  local  area  networks, 
 interconnecting  cabling  from  many 
 individual  devices,  such  as  computer 
 workstations,  printers,  servers,  and 
 other  hubs. 
 Eligibility: 
 Hubs  are  eligible  for  discount. 

 Intercom 
 (Intercom  and  voice 
 paging) 

 Description: 
 An  intercom  is  an  internal 
 communication  system,  originally 
 consisting  of  multiple 
 speaker/  microphone  devices 
 connected  into  an  amplifier  system. 
 Now  most  intercoms  are  a  part  of 
 telephone  systems,  although  separate 
 intercom  systems  continue  to  be  used 
 in  many  schools. 
 Eligibility: 
 A  stand-  alone  intercom  system  is  not 
 eligible  for  discount  because  it  does 

 Not  Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  37  Internal  Connections 
 not  facilitate  the  transport  of  an 
 eligible  telecommunications  or 
 Internet  access  service.  However,  an 
 intercom  system  that  is  an  integral 
 part  of  a  PBX,  Centrex,  or  key  system 
 can  be  included  as  an  ancillary 
 component  of  the  PBX,  Centrex,  or 
 key  system.  Please  see  the  Special 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Interface/  Edge 
 Device 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 An  Interface  or  Edge  Device  is  a 
 physical  device  that  can  pass  packets 
 between  a  legacy  type  of  network  and 
 an  ATM  network.  The  device  may  be  a 
 router  or  Ethernet-  to-  ATM  switch  that 
 directly  connects  to  an  ATM  network. 
 Eligibility: 
 Interfaces  or  Edge  Devices  are  eligible 
 for  discount. 

 Key  System  (KSU) 
 (Telephony 
 Components) 

 Description: 
 A  Key  System,  also  known  as  Com 
 Key  System  or  a  KSU,  is  a  type  of 
 phone  system  that  permits  more  than 
 one  telephone  line,  PBX  extension, 
 private  line  or  intercom  line  to  appear 
 on  a  single  telephone. 
 Eligibility: 
 The  common  control  unit  of  a  Key 
 System  is  eligible  for  discount. 

 Laptop  /  notebook 
 computer 
 (Computers) 

 Description: 
 A  laptop  or  notebook  computer  is  a 
 light  weight  portable  computer 
 designed  for  mobility. 
 Eligibility: 
 Laptop  computers  are  eligible  for 
 discount  only  if  they  are  used  as  an 
 eligible  server.  However,  in  most 
 cases  laptop  computers  will  not  meet 
 the  definition  of  eligible  Internal 
 Connections  and  will  be  used  as 
 workstations  which  are  not  eligible  for 
 discount. 

 Lightning  Arrestor 
 (Data  protection) 
 Description: 
 Lightning  Arrestor  is  a  device  that 
 protects  computer  equipment  from 
 lightning  and  static. 

 Not  Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  38  Internal  Connections 
 Eligibility: 
 A  lightning  arrestor  is  not  eligible  for 
 discounts. 

 Local  Area  Network 
 (Data  distribution) 
 Description: 
 A  Local  Area  Network  (LAN)  is  a  short 
 distance  data  communications 
 network  used  to  link  together 
 computers  and  peripheral  devices 
 under  some  form  of  standard  control. 
 The  LAN  is  most  often  connected  by 
 cabling  or  wireless  links  within  the 
 same  building.  A  Local  Area  Network 
 consists  of  several  components, 
 including  cabling,  file  servers, 
 computer  workstations,  network 
 interface  cards,  printers,  and  data 
 distribution  equipment  such  as 
 network  switches,  hubs,  and  routers. 
 Eligibility: 
 The  components  of  a  Local  Area 
 Network  are  evaluated  individually  to 
 determine  eligibility.  For  example, 
 network  cabling  is  eligible,  but 
 eligibility  of  a  network  file  server  is 
 based  on  the  use  of  the  server.  See 
 individual  entries  for  cabling,  file 
 servers,  computer  workstations, 
 network  interface  cards,  printers, 
 network  switches,  hubs,  and  routers 
 for  additional  information. 
 There  is  a  rebuttable  presumption  that 
 a  network  that  crosses  a  public  right-of- 
 way  is  not  an  eligible  Local  Area 
 Network.  Please  see  the  Special 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 WAN  Versus  LAN  Components 

 Maintenance  and 
 Technical  Support 
 (Technical  Services) 

 Description: 
 Basic  maintenance  services  are 
 necessary  if,  but  for  the 
 maintenance  at  issue,  the  connection 
 would  not  function  and  serve  its 
 intended  purpose  with  the  degree  of 
 reliability  ordinarily  provided  in  the 
 marketplace  to  entities  receiving  such 
 services  without  e-  rate  discounts. 
 Basic  maintenance  services  do  not 
 include  services  that  maintain 
 equipment  that  is  not  supported  or 
 that  enhance  the  utility  of  equipment 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  39  Internal  Connections 
 beyond  the  transport  of  information, 
 or  diagnostic  services  in  excess  of 
 those  necessary  to  maintain  the 
 equipments  ability  to  transport 
 information. 
 Eligibility: 
 Basic  maintenance  is  eligible  for 
 discount  only  if  it  is  a  component  of  a 
 maintenance  agreement  or  contract 
 for  eligible  services  or  products,  and 
 these  maintenance  services  are  cost 
 effective.  The  agreement  or  contract 
 must  specifically  identify  the  eligible 
 products  or  services  covered, 
 including  product  name,  model 
 number,  and  location.  The  following 
 products  and  services  are  generally 
 eligible:  repair  and  upkeep  of  eligible 
 hardware,  wire  and  cable 
 maintenance,  basic  technical  support 
 and  configuration  changes.  The 
 following  products  and  services  are 
 ineligible:  on-  site  technical  support 
 (i.  e.,  contractor  duty  station  at  the 
 applicant  site,  when  off-  site  technical 
 support  can  provide  basic 
 maintenance  on  an  as-  needed  basis), 
 24-  hour  network  monitoring,  network 
 management,  help  desks  (that 
 provide  a  comprehensive  level  of 
 support  beyond  basic  maintenance  of 
 only  eligible  components),  and 
 technical  support  contracts  that  are 
 more  than  basic  maintenance. 

 Mast 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  mast  is  a  structure,  or  pole,  on 
 which  an  antenna  is  placed.  Typically, 
 it  is  a  tall,  vertical  pole. 
 Eligibility: 
 Masts  are  eligible  for  discount  as 
 Internal  Connections  if  necessary  to 
 support  a  Local  Area  Network. 

 Media  converter 
 (Cabling/  connectors) 
 Description: 
 A  media  converter  is  a  module  that 
 converts  one  type  of  media  to  another 
 type  of  media  for  network 
 compatibility.  The  actual  media  can 
 vary,  such  a  fiber,  coax,  or  twisted 
 pair. 
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 Eligibility: 
 Media  converters  are  eligible  when 
 used  for  eligible  products  or  services. 

 Memory  module  / 
 Random  Access 
 Memory  (RAM) 
 (Circuit 
 cards/  components) 

 Description: 
 A  memory  module  is  the  electronic 
 holding  place  for  instructions  and  data 
 that  a  computer's  microprocessor  can 
 reach  quickly.  The  module  usually 
 holds  multiple  Random  Access 
 Memory  (RAM)  chips,  in  a  standard 
 configuration.  Common  types  are 
 SIMM,  DIMM,  RDRAM,  SDRAM. 
 Eligibility: 
 A  memory  module  is  eligible  if 
 installed  as  a  component  of  an  eligible 
 product. 

 Monitor 
 (Circuit 
 cards/  components) 

 Description: 
 A  monitor  is  the  video  display  unit 
 (television  screen)  that  is  used  to 
 display  information  from  a  computer. 
 Eligibility: 
 Monitors  used  for  end  user 
 workstations  or  other  ineligible 
 equipment  are  not  eligible.  However, 
 one  monitor  per  eligible  file  server  is 
 eligible  for  discount. 

 Multimedia  kit 
 (Software) 
 Description: 
 A  multimedia  kit  is  a  package  of 
 hardware  and  software  that  adds 
 multimedia  capabilities  to  a  computer. 
 Typically  a  multimedia  kit  includes  a 
 CD  ROM  or  DVD  player,  a  sound  card, 
 speakers,  and  a  bundle  of  CD  ROMs. 
 Eligibility: 
 Multimedia  kits  include  content  and/  or 
 are  installed  as  end  user  equipment, 
 and  therefore  are  not  eligible  for 
 discount. 

 Not  Eligible 

 Multiple-  feature 
 Equipment 
 (None) 

 Description: 
 Multiple-  feature  equipment  includes 
 equipment  that  contains  both  eligible 
 and  ineligible  components,  such  as 
 both  a  video  codec  (eligible)  and  a 
 camera  (not  eligible). 
 Eligibility: 
 In  general,  funding  requests  that 
 provide  only  a  single  price  for  a 
 product  or  service  that  contains  both 
 eligible  and  ineligible  functionality  are 
 fully  ineligible.  However,  cost 
42
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  41  Internal  Connections 
 allocation  may  be  used  to  provide 
 separated  pricing  for  the  eligible  and 
 ineligible  components.  In  addition,  in 
 certain  limited  cases,  an  eligible 
 product  or  service  can  include 
 ineligible  components  on  an  ancillary 
 basis.  Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Cost  Allocation 
 Ancillary  Use 

 Multiplexer 
 (Data  distribution) 
 Description: 
 A  multiplexer  is  electronic  equipment 
 that  allows  two  or  more  signals  to 
 pass  over  one  communications,  or 
 bearer  circuit.  The  circuit  may  be  a 
 telephone  line,  dedicated  line,  or  radio 
 signal.  It  provides  an  economic  means 
 for  the  service  provider  and  customer 
 to  transport  multiple  circuits  by 
 combining,  as  an  example,  up  to  24 
 voice  grade  circuits  on  a  single  bearer 
 circuit. 
 Eligibility: 
 If  provided  as  part  of  internal 
 connections  for  a  local  area  network,  a 
 multiplexer  is  eligible. 

 Network  Interface 
 Card  (NIC) 
 (Circuit 
 cards/  components) 

 Description: 
 A  network  interface  card  (NIC)  is  an 
 electronic  device  that  connects  a 
 workstation  or  server  to  a  network.  A 
 NIC  works  with  the  network  software 
 and  computer  operating  system  to 
 transmit  and  receive  messages  on  the 
 network. 
 Eligibility: 
 NICs  are  eligible  for  discount  if  they 
 are  separately  priced  on  a  contract  or 
 are  sold  separately.  NICs  embedded  in 
 ineligible  equipment,  such  as 
 computer  workstations,  and  not 
 separately  priced  on  a  contract,  are 
 not  eligible. 

 Network  Interface 
 Device 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 The  Network  Interface  Device,  or  NID, 
 is  a  device  installed  between  a 
 telephone  network  and  the  inside  wire 
 of  a  customer  premises.  The  NID  is 
 generally  provided  by  the  telephone 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  42  Internal  Connections 
 company  and  is  the  transition,  or 
 demarcation  point  between  the 
 company's  network  and  the 
 customer's  inside  wiring. 
 Eligibility: 
 A  NID  is  the  beginning  of  the  Internal 
 Connections  on  the  customer's 
 premises.  Installed  with 
 Telecommunications  Services,  there  is 
 normally  no  charge  for  the  NID. 
 However,  if  a  cost  is  associated  with 
 the  installation  of  the  NID  or  the  NID 
 itself,  it  is  eligible  for  discount  as 
 Internal  Connections. 
 The  NID  also  can  be  provided  as  a 
 part  of  Telecommunications  Services  if 
 it  is  installed  coincident  with  a 
 Telecommunications  Service. 

 Network 
 Management 
 (Technical  Services) 

 Description: 
 Network  Management  is  a  system  of 
 equipment  or  software  used  in 
 monitoring,  controlling,  and  managing 
 a  communications  network. 
 Eligibility: 
 Network  management  software, 
 services,  and  equipment  are  not 
 eligible  for  discount. 

 Not  Eligible 

 Network  Switch 
 (Data  distribution) 
 Description: 
 A  switch  is  a  mechanical  or  electronic 
 device  that  completes  or  breaks  an 
 electrical  path,  or  selects  the  paths  for 
 communication.  More  specifically, 
 network  switches  provide  capability 
 similar  to  that  described  in  the  entry 
 for  Hub  in  this  section,  but  additionally 
 provide  a  dedicated  bandwidth  at  each 
 network  port,  rather  than  a  shared 
 bandwidth  among  all  ports. 
 Eligibility: 
 Network  switches  are  eligible  for 
 discount. 

 Operating  System 
 Software 
 (Software) 

 Description: 
 An  Operating  System  is  software  that 
 enables  the  basic  operations  of  a 
 computer  system  or  other  electronic 
 device.  For  example,  it  can  configure 
 the  communication  paths  between 
 memory  and  storage.  Other  software 
 depends  on  the  functions  of  the 
 operating  system  in  order  to  operate 
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 correctly. 
 Eligibility: 
 Software  required  to  obtain  operation 
 of  eligible  equipment,  such  as  network 
 operating  system  software,  is  eligible 
 if  required  as  a  core  component  of  an 
 eligible  Internal  Connection.  Software 
 available  separately  that  provides 
 optional  operational  features  is  not 
 eligible  for  discount. 
 Examples  of  ineligible  operational 
 software  include  separate  products 
 that  provide  caching,  filtering, 
 network  administration,  network 
 management,  and  web  site 
 construction.  Such  functionality  may 
 be  included  as  an  ancillary  component 
 of  otherwise  eligible  operational 
 software,  but  only  if  the  conditions  for 
 ancillary  use  apply.  Please  see  the 
 Special  Eligibility  Condition  below  for 
 further  information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Pager 
 (End-  user) 
 Description: 
 A  Pager  (also  known  as  a  Beeper)  is 
 the  receiving  end  of  a  paging  service 
 and  is  a  small  device  worn  on  the  belt, 
 or  carried  in  a  handbag.  Pagers 
 provide  text  or  voice  messages,  or 
 both. 
 Eligibility: 
 The  purchase,  lease,  or  maintenance 
 of  pagers  is  not  eligible  for  discount. 
 However,  a  Paging  Service  may  be 
 eligible  as  a  Telecommunications 
 Service.  See  Paging  Service  in  the 
 Telecommunications  Services  section 
 of  this  document. 

 Not  Eligible 

 Personal  Computer 
 (Computers) 
 Description: 
 Personal  computers,  or  workstations, 
 are  computers  designated,  or 
 designed  for  one  persons  use.  They 
 are  distinguished  from  computers 
 used  in  the  routing  of  information  to 
 individual  classrooms. 
 Eligibility: 
 Personal  computers  are  not  eligible  for 
 discount. 

 Not  Eligible 
45
 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  44  Internal  Connections 
 Personal  Digital 
 Assistant  (PDA) 
 (Computers) 

 Description: 
 Personal  Digital  Assistant  (PDA)  is  a 
 handheld  device  that  combines 
 computing,  telephone/  fax,  and 
 networking  features. 
 Eligibility: 
 PDAs  are  end-  user  equipment  that  do 
 not  meet  the  definition  of  eligible 
 Internal  Connections.  They  are 
 therefore  ineligible  for  discount. 

 Not  Eligible 

 Phone  Modem 
 (Circuit 
 cards/  components) 

 Description: 
 Phone  modems  are  devices  that 
 convert  data  signals  into  suitable  form 
 for  transmission  and  receipt  over  a 
 telephone  line. 
 Eligibility: 
 Phone  modems  are  not  eligible  if 
 provided  in  or  with  end-  user 
 equipment.  Phone  modems  can  be 
 eligible  if  used  with  an  eligible  file 
 server  or  other  eligible  device  for 
 providing  dial-  in  network  access. 
 However,  limitations  apply  in  the 
 eligible  use  of  modems,  as  described 
 in  the  entry  for  Remote  Access 
 Components. 

 Printer 
 (End-  user) 
 Description: 
 A  printer  is  a  device  that  receives 
 computer  information  and  prints  it  on 
 paper. 
 Eligibility: 
 Printers  are  not  eligible  for  discount. 

 Not  Eligible 

 Private  Branch 
 Exchange  (PBX) 
 (Telephony 
 Components) 

 Description: 
 A  PBX  is  a  telephone  switching  system 
 located  at  a  business  or  organizations 
 site.  The  PBX  provides  internal 
 station-  to-  station  dialing  and  access 
 to  the  public  switched  network. 
 Eligibility: 
 A  PBX  and  the  core  PBX  operating 
 system  are,  in  general,  eligible  for 
 discount.  Some  products  may  have 
 modules  or  features  that  are  not 
 eligible.  These  include  Automatic  Call 
 Distribution,  and  programming 
 modules  or  software.  If  these 
 ineligible  components  are  available 
 separately,  or  the  applicant 
 specifically  seeks  the  ineligible 
 functions,  their  cost  must  be 
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 subtracted  from  the  amount  eligible 
 for  discount.  If  the  ineligible 
 components  are  not  available 
 separately,  the  full  product  may  be 
 eligible  for  discount,  but  only  if  the 
 conditions  for  ancillary  use  apply. 
 Please  see  the  Special  Eligibility 
 Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Processor  terminator 
 card 
 (Circuit 
 cards/  components) 

 Description: 
 A  processor  terminator  card  is  a 
 device  installed  in  a  multi-  processor 
 computer  to  signal  the  computer  that 
 only  one  processor  is  installed. 
 Eligibility: 
 The  processor  terminator  card  is 
 eligible  if  installed  in  an  eligible 
 server. 

 Proxy  server 
 (Computers) 
 Description: 
 A  proxy  server  is  a  device  that  sits 
 between  "trusted  clients"  (e.  g., 
 workstations  inside  an  organization) 
 and  "untrusted  clients"  (e.  g.,  the 
 Internet)  and  provides  security 
 features  and  oftentimes  address 
 translation.  To  the  untrusted  clients, 
 communication  appears  to  be  taking 
 place  with  the  proxy,  even  though  the 
 communication  is  passed  through,  to 
 and  from  the  trusted  clients. 
 Eligibility: 
 A  proxy  server  is  eligible  for  discount 
 if  it  provides  basic  and  reasonable 
 security  protections  to  prevent 
 unauthorized  access  to  the 
 information,  software,  and  systems  of 
 an  applicants  eligible  components. 

 Not  Eligible 

 Public  Address  (PA) 
 System 
 (Intercom  and  voice 
 paging) 

 Description: 
 A  Public  Address  system  allows  the 
 user  to  make  announcements  through 
 the  use  of  amplifiers  and  speakers. 
 Eligibility: 
 A  Public  Address  system,  which  is  a 
 stand-  alone  system  and  not  integral 
 as  a  bundled  component  of  a  PBX, 
 Centrex  or  key  system,  is  not  eligible 
 for  discounts. 

 Not  Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  46  Internal  Connections 
 PVBX 
 (Video  Components) 
 Description: 
 A  PVBX  or  Private  Video  Branch 
 Exchange  is  a  video  PBX.  The  PVBX 
 integrates  the  functionality  of  a  PBX 
 by  providing  video  integrated  into  the 
 switching  matrix  of  the  PVBX.  The 
 PVBX  acts  as  a  video  distribution 
 system  linking  classrooms  and 
 administration  as  well  as  traditional 

 PBX  methodologies. 
 Eligibility: 
 A  PVBX  follows  the  same  eligibility 
 requirements  as  a  PBX  in  general,  it 
 is  eligible  for  discount.  See  the  listing 
 for  PBX  for  detailed  eligibility 
 information. 

 Racks  and  Cabinets 
 (None) 
 Description: 
 A  rack  is  a  metal  supporting 
 framework  for  mounting  cables, 
 equipment  or  wires.  A  cabinet  is  an 
 enclosure  for  equipment,  terminating 
 cables,  connection  devices  and/  or 
 wires. 
 Eligibility: 
 Racks  and  cabinets  are  eligible  only  to 
 the  extent  that  the  components  they 
 contain  are  eligible. 

 Remote  Access 
 Components 
 (Computers) 

 Description: 
 Remote  access  components,  such  as  a 
 remote  access  router  or 
 communications  server,  provide  one 
 or  more  interfaces  that  allow  dial-  up 
 or  remote  access  to  a  network. 
 Eligibility: 
 Components  that  are  capable  of 
 providing  remote  access  can  be 
 eligible  if  steps  are  taken  to  ensure 
 that  only  eligible  entities,  from  eligible 
 locations,  will  have  the  capability  to 
 access  them.  Remote  access  cannot 
 be  available  from  homes  or  other  non-school 
 or  non-  library  sites.  Applicants 
 are  required  to  provide  a  signed  and 
 dated  certification  that  this  condition 
 is  met. 
 The  required  certification  is  as  follows: 
 The  remote  access  equipment  for 
 which  I  seek  discounts  either  will  not 
 be  used  to  provide  remote  access  in 
 the  funding  year  or,  if  it  is  to  be  used 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  47  Internal  Connections 
 remotely,  I  will  take  steps  to  ensure 
 that  only  entities  eligible  for  support 
 under  the  Schools  and  Libraries 
 Support  Mechanism  have  the 
 capability  to  access  it.  In  the  latter 
 case,  for  example,  access  will  not  be 
 available  from  homes  or  other  non-school 
 or  non-  library  sites. 

 Router 
 (Data  distribution) 
 Description: 
 Routers  are  switching  devices  that  can 
 act  as  an  interface  between  two 
 networks,  and  connect  different 
 segments  such  as  departments  or 
 floors  in  a  building.  Functionally, 
 routers  select  the  routing  path  for 
 traffic,  may  provide  features  such  as 
 load  balancing,  and  can  provide 
 trouble  shooting  diagnostic 
 capabilities. 
 Eligibility: 
 A  router  and  the  core  router  operating 
 system  are  eligible  for  discount  when 
 used  for  an  eligible  purpose.  Some 
 products  may  have  modules  or 
 features  that  are  not  eligible,  such  as 
 functionality  for  content  filtering, 
 management,  proxy  services,  caching, 
 Virtual  Private  Networks  and  security. 
 If  these  ineligible  components  are 
 available  separately,  or  the  applicant 
 specifically  seeks  the  ineligible 
 functions,  their  cost  must  be 
 subtracted  from  the  amount  eligible 
 for  discount.  If  the  ineligible 
 components  are  not  available 
 separately,  the  full  product  may  be 
 eligible  for  discount,  but  only  if  the 
 conditions  for  ancillary  use  apply. 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Cost  Allocation 
 Ancillary  Use 

 Satellite  Dish 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  Satellite  Dish  is  an  antenna  capable 
 of  receiving  signals  from,  and  in  some 
 cases  transmitting  signals  to,  a 
 communications  satellite. 
 Eligibility: 
 Satellite  Dishes  used  for  Wireless 

 Not  Eligible 
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 Wide  Area  Networks  (WANs)  are  not 
 eligible  as  Internal  Connections. 
 Satellite  Dishes  used  for  the  receipt  of 
 over-  the-  air  radio  and  television 
 broadcast  signals,  or  radio  signals 
 from  cable  television  operators,  are 
 not  eligible  because  these  are  not 
 considered  telecommunications 
 services.  Note,  however,  that  satellite 
 dishes  may  be  provided  as  a  part  of 
 an  eligible  leased  service  in  other 
 categories  of  service.  See  the  entries 
 for  Wide  Area  Network  (WAN) 
 Services  and  Wireless  Wide  Area 
 Network  in  the  Telecommunications 
 Services  section,  and  the  entry  for 
 Wide  Area  Network  in  the  Internet 
 Access  section. 

 Serial  card 
 (Circuit 
 cards/  components) 

 Description: 
 A  serial  card  is  a  printed  circuit  card 
 installed  in  an  expansion  slot  of  a 
 computer  that  provides  one  or  more 
 serial  communication  ports,  often  for 
 the  purpose  of  connecting  one  or 
 more  modems. 
 Eligibility: 
 Serial  cards  are  eligible  if  the  devices 
 they  support  and  the  intended  use  of 
 the  cards  are  eligible.  If  used  to 
 provide  remote  access,  see  also  the 
 entry  for  Remote  Access  Components. 

 Spare  Parts 
 (None) 
 Description: 
 Spare  parts  are  components  on  hand 
 to  replace  hardware  that  fails. 
 Eligibility: 
 Spare  parts  are  not  eligible. 

 Not  Eligible 

 Speakers 
 (Circuit 
 cards/  components) 

 Description: 
 Speakers  are  the  components  that 
 provide  sound  from  a  computer, 
 phone,  intercom,  stereo  system,  or 
 other  device.  This  entry  refers  only  to 
 external  speakers,  and  not  speakers 
 built  into  a  computer  or  other 
 component. 
 Eligibility: 
 Speakers  for  end  users  are  not 
 eligible.  However,  speakers  may  be 
 provided  as  an  integral  component  of 
 an  eligible  product  such  as  an  eligible 
 file  server,  if  they  are  part  of  the 

 Not  Eligible 
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 standard  product  configuration  and 
 provided  at  no  additional  cost.  Please 
 see  the  Special  Eligibility  Condition 
 below  for  further  information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Station  Message 
 Detail  Recording 
 (SMDR) 
 (Telephony 
 Components) 

 Description: 
 Station  Message  Detail  Recording 
 (SMDR)  or  Call  Detail  Recording  (CDR) 
 is  a  software/  hardware  PBX 
 component  that  provides  the  ability  to 
 generate  reports  on  call  details.  Those 
 details  include,  but  are  not  limited  to, 
 call  duration,  PBX  station  number, 
 time  and  date,  trunk  route,  dialed 
 number  and  cost  of  call. 
 Eligibility: 
 Station  Message  Detail  Recording 
 (SMDR)  and  Call  Detail  Recording 
 (CDR)  are  not  eligible  for  discount. 

 Not  Eligible 

 Storage  Media 
 (Storage  Devices) 
 Description: 
 Storage  media  include  products  such 
 as  cartridge  magnetic  tape  and  floppy 
 disks,  and  provide  replaceable 
 storage. 
 Eligibility: 
 Storage  media  are  considered  to  be 
 consumable  products  that  are  not 
 eligible. 

 Not  Eligible 

 Storage  Products 
 (Storage  Devices) 
 Description: 
 Storage  products  provide  electronic 
 data  storage  on  magnetic  or  other 
 media.  Devices  include  CD  ROM  drive 
 (and  CD  tower),  DVD  drive,  floppy 
 disk  drive,  hard  drive,  and  Zip  drive. 
 Eligibility: 
 Products  that  provide  electronic  data 
 storage  on  magnetic  or  other  media, 
 for  eligible  file  servers  or  other  eligible 
 products,  are  conditionally  eligible, 
 based  on  whether  the  software  and/  or 
 data  stored  provides  an  eligible 
 purpose,  e.  g.  if  it  is  necessary  to 
 transport  information  all  the  way  to 
 individual  classrooms. 
 In  addition,  storage  products  that 
 provide  a  combination  of  eligible  and 
 ineligible  functionality  are  fully 
 ineligible,  unless  they  are  able  to  be 
 cost-  allocated.  Consumable  products 
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 such  as  floppy  disks  and  recordable 
 CD  ROM  media  are  not  eligible. 
 Please  see  the  Special  Eligibility 
 Conditions  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Storage 
 Cost  Allocation 

 Surge  protector  and 
 power  strip 
 (Data  protection) 

 Description: 
 Power  strips  provide  multiple  electrical 
 commercial  AC  power  outlets  and  can 
 serve  as  an  electrical  extension  cord. 
 They  may  also  protect  equipment 
 against  voltage  spikes  and  electrical 
 disturbances  (surge  protection). 
 Eligibility: 
 Power  strips  are  electrical  devices 
 ineligible  for  discount.  However,  a 
 rack-  mounted  or  cabinet-  mounted 
 power  strip/  surge  protector  may  be 
 included  on  an  ancillary  basis  as  a 
 part  of  an  eligible  component  such  as 
 an  eligible  equipment  rack.  Please  see 
 the  Special  Eligibility  Condition  below 
 for  further  information. 
 Special  Eligibility  Conditions: 
 Ancillary  Use 

 Not  Eligible 

 Switchboard  and 
 Attendant  Console 
 (Telephony 
 Components) 

 Description: 
 The  operation  of  a  PBX  or  Centrex 
 system  requires  the  use  of  a 
 switchboard  or  attendant  console  for 
 the  transfer  of  incoming  calls  to  the 
 appropriate  extension  when  systems 
 are  not  equipped  with  Direct  Inward 
 Dialing.  The  switchboard  or  attendant 
 console  may  include  Direct  Station 
 Selection  (DSS),  which  provides  an 
 easy  means  for  transferring  calls. 
 Eligibility: 
 One  switchboard  or  attendant  console, 
 with  or  without  Direct  Station 
 Selection,  qualifies  for  discount  with 
 each  eligible  PBX  or  Centrex  system. 

 System 
 Improvements  and 
 Upgrades 
 (None) 

 Description: 
 A  system  improvement  or  upgrade 
 provides  enhanced  functionality  to  an 
 existing  product  or  configuration  of 
 products. 
 Eligibility: 
 Improvements  and  upgrades  to 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  51  Internal  Connections 
 eligible  services  are  eligible  for 
 discounts.  Memory  upgrades,  for 
 example,  to  eligible  file  servers  are 
 eligible,  but  memory  upgrades  would 
 not  be  eligible  in  end  user 
 workstations. 

 Tape  Backup 
 (Data  protection) 
 Description: 
 Tape  Backup  units  provide  copies  of 
 computer  files  on  magnetic  tape,  for 
 protection  against  a  catastrophic 
 failure.  Tape  backup  technologies 
 include  QIC,  DAT,  8mm,  DLT,  AIT,  and 
 ADR. 
 Eligibility: 
 Tape  backup  units  are  eligible  when 
 used  as  part  of  an  eligible  server. 
 They  are  not  eligible  when  part  of  a 
 PC,  or  workstation.  A  cartridge 
 included  with  a  tape  backup  may  be 
 provided  as  an  integral  component  of 
 the  backup  unit,  if  the  cartridge  is  part 
 of  the  standard  product  configuration 
 and  provided  at  no  additional  cost. 
 The  cost  of  purchasing  additional  or 
 separate  tapes  is  not  eligible. 

 Telephone, 
 Telephone 
 Instruments 
 (End-  user) 

 Description: 
 Telephones,  also  known  as  telephone 
 sets,  telephone  instruments,  digital 
 voice  terminals,  and  voice  terminals 
 are  the  end-  user  equipment  used  to 
 transmit  and  receive  communications. 
 Eligibility: 
 Telephones  and  end-  user  telephone 
 accessories  are  not  eligible  for 
 discount. 

 Not  Eligible 

 Terminal  Adapter 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 The  Terminal  Adapter  (TA)  is  a  device 
 that  connects  a  computer  to  an 
 external  digital  communications  line, 
 such  as  an  ISDN  line. 
 Eligibility: 
 Terminal  adapters  are  eligible  if  used 
 to  connect  to  an  eligible  digital 
 transmission  service. 

 Test  Equipment 
 (None) 
 Description: 
 Test  Equipment  is  used  to  test 
 hardware  software,  cable  continuity, 
 telecommunications  links,  etc. 
 Eligibility: 
 Test  equipment  is  not  eligible. 

 Not  Eligible 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  52  Internal  Connections 
 Transceiver 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  transceiver  is  a  device  that 
 transmits  and  receives  analog  or 
 digital  signals.  The  term  is  used  most 
 frequently  to  describe  the  component 
 in  local  area  networks  (LANs)  that 
 actually  applies  signals  onto  the 
 network  wire  and  detects  signals 
 passing  through  the  wire.  For  many 
 LANs,  the  transceiver  is  built  into  the 
 network  interface  card  (NIC),  while 
 others  require  an  external  transceiver. 
 Eligibility: 
 A  separate  transceiver  is  eligible  for 
 discount. 

 TX-  to-  FX  converter 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  TX-  to-  FX  converter  is  a  device  that 
 converts  a  copper  connection  to  a 
 fiber  optic  connection. 
 Eligibility: 
 A  TX-  to-  FX  converter  is  eligible  for 
 discount. 

 Uninterruptible  Power 
 Supply  /  Battery 
 Backup 
 (Data  protection) 

 Description: 
 An  Uninterruptible  Power  Supply 
 (UPS),  also  called  a  battery  backup,  is 
 a  device  that  provides  backup  electric 
 energy  to  a  piece  of  equipment  in  the 
 event  of  a  power  failure. 
 Eligibility: 
 A  UPS  is  eligible  if  provided  for  use 
 with  an  eligible  component.  In 
 addition,  a  UPS  Interface  Expander 
 (which  allows  a  UPS  to  provide  power 
 management  to  multiple  devices)  and 
 a  Relay  I/  O  Module  (which  establishes 
 UPS  protection  for  equipment  not  pre-designed 
 for  a  UPS  interface)  are 
 eligible  if  used  for  eligible  equipment. 
 A  UPS  system  used  as  protection  for 
 both  eligible  and  ineligible 
 components  must  be  cost  allocated. 
 Please  see  the  Special  Eligibility 
 Condition  below  for  further 
 information. 
 In  addition,  funding  will  not  be 
 provided  for  capacities  that  can 
 provide  continued  backup  power  for 
 substantial  periods  in  excess  of  that 
 necessary  for  basic  power  protection. 
 Special  Eligibility  Conditions: 
 Cost  Allocation 
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 Video  Equipment 
 (Video  Components) 
 Description: 
 Video  Equipment  involves  a  range  of 
 capabilities  and  technologies  that 
 provide  moving  images  on  television 
 screens  or  computer  monitors. 
 Eligibility: 
 Video  Equipment  used  to  transport 
 video  information  all  the  way  to 
 individual  classrooms  or  public  areas 
 of  a  library  is  eligible  for  discount. 
 Video  Equipment  used  for  storage  or 
 caching  is  not  eligible.  Video 
 Equipment  used  by  end  users  is  not 
 eligible.  Please  see  the  Special 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Video  Components 

 Virtual  Private 
 Network  (VPN) 
 Components 
 (Data  distribution) 

 Description: 
 A  Virtual  Private  Network  (VPN)  uses 
 encryption  and/  or  tunneling  services 
 in  order  to  provide  highly  secure 
 communication  over  the  public 
 Internet  or  in  some  cases  over  point-to- 
 point  links. 
 Eligibility: 
 Software  and/  or  hardware  equipment 
 used  for  enhanced  security  features 
 over  a  Virtual  Private  Network  are  not 
 eligible  for  discount  as  Internal 
 Connections. 

 Not  Eligible 

 Voice  Compression 
 Module 
 (Telephony 
 Components) 

 Description: 
 A  Voice  Compression  Module  allows 
 voice  and  fax  traffic  to  share  the  same 
 lines  as  data  and  LAN  traffic. 
 Eligibility: 
 A  Voice  Compression  Module  is  an 
 eligible  component  of  Internal 
 Connections  when  it  is  installed  in  an 
 eligible  component. 

 Voice  Interface  Card 
 (Telephony 
 Components) 

 Description: 
 Voice  interface  cards  (VIC)  are  usually 
 components  of  a  router  or  PBX  system 
 that  interface  with  internal  systems 
 and  the  Public  Switched  Telephone 
 Network.  Some  examples  of  VICs  are 
 FXO  Cards,  E&  M  Cards,  and  FXS  Cards. 
 Eligibility: 
 Voice  Interface  Cards  are  eligible  for 
 discount. 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  54  Internal  Connections 
 Voice/  Fax  Network 
 Module 
 (Interfaces, 
 gateways,  antennas) 

 Description: 
 A  Voice/  Fax  module  is  an  access 
 product  that  enables  the  transmission 
 of  multiprotocol  data--  voice,  fax  and 
 LAN--  over  frame  relay,  leased  line, 
 DDS  or  ISDN  services. 
 Eligibility: 
 Voice/  Fax  modules  are  eligible  when 
 used  with  eligible  equipment. 

 Voice/  video  over  IP 
 (VoIP)  components 
 (Data  distribution) 

 Description: 
 Voice/  video  over  IP  (VoIP) 
 components  refers  to  equipment  that 
 utilizes  the  TCP/  IP  suite  of  protocols 
 to  provide  voice  and/  or  video 
 communications. 
 Eligibility: 
 Otherwise  eligible  Internal 
 Connections  components  may  include 
 technology  for  providing  real-  time  or 
 near  real-  time  voice  or  video  over  IP 
 (VoIP). 

 Web  Server 
 (Computers) 
 Description: 
 A  Web  server  is  a  computer  file  server 
 used  to  provide  information  to  users 
 of  the  Internet,  and  can  also  be  used 
 to  provide  web-  based  software 
 applications  and  other  web-  based 
 functions. 
 Eligibility: 
 A  web  server  used  to  provide  content 
 to  users  of  the  Internet  is  eligible  for 
 discount.  A  Web  server  used  for 
 ineligible  functions  such  as  providing 
 software  applications,  database 
 functions,  or  storage  of  end  user  files 
 is  considered  an  Application  Server, 
 Database  Server,  or  Archive  Server, 
 respectively,  and  therefore  is  not 
 eligible.  Please  see  the  Special 
 Eligibility  Condition  below  for  further 
 information. 
 Special  Eligibility  Conditions: 
 Network  File  Servers 

 Wire  and  Cable 
 Maintenance 
 (Technical  Services) 

 Description: 
 Wire  and  Cable  Maintenance  Plan 
 refers  to  the  repair,  replacement  and 
 maintenance  of  customer  owned 
 inside  cabling. 
 Eligibility: 
 The  maintenance  of  eligible  internal 
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 Schools  and  Libraries  Eligible  Services  List  for  Funding  Year  2005    Page  55  Internal  Connections 
 cabling  is  eligible  for  discount  as  a 
 component  of  contracted  maintenance 
 support.  See  the  entry  for 
 Maintenance  and  Technical  Support 
 for  further  information. 

 Wire  manager 
 (Cabling/  connectors) 
 Description: 
 Wire  managers  are  wire  restraints  to 
 house  or  arrange  wiring  and  cabling. 
 They  can  be  aluminum  or  plastic  and 
 may  be  rack  mountable. 
 Eligibility: 
 Wire  managers  are  eligible  when  used 
 with  eligible  wiring  and  cabling. 

 Wireless  Local  Area 
 Network 
 (Data  distribution) 

 Description: 
 A  Wireless  Local  Area  Network 
 provides  the  functionality  of  a  local 
 area  network  using  wireless 
 components  rather  than  cabling. 
 Eligibility: 
 A  wireless  Local  Area  Network  has  the 
 same  eligibility  as  other  Local  Area 
 Networks.  Hubs,  access  points, 
 antenna  and  other  components  that 
 provide  a  wireless  Local  Area  Network 
 capability  are  eligible  for  discount.  See 
 the  entries  for  Local  Area  Network, 
 Antenna,  and  Network  Interface 
 Card  in  this  section  for  additional 
 information. 

 Wireless  Local  Area 
 Network 
 (Data  distribution) 

 Description: 
 A  wireless  local  area  network  achieves 
 LAN  functionality  but  uses  wireless 
 technology  such  as  radio  in  place  of 
 cables. 
 Eligibility: 
 A  wireless  Local  Area  Network  has  the 
 same  eligibility  as  other  Local  Area 
 Networks.  Hubs,  access  points, 
 antenna  and  other  components  that 
 provide  a  wireless  Local  Area  Network 
 capability  are  eligible  for  discount.  See 
 the  entries  for  Local  Area  Network, 
 Antenna,  and  Network  Interface 
 Card  in  this  section  for  additional 
 information. 

 Wireless  PBX  Adjunct 
 (Telephony 
 Components) 

 Description: 
 A  Wireless  PBX  Adjunct  functions  in 
 conjunction  with  a  Private  Branch 
 Exchange,  to  provide  wireless 
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 capability  to  the  station  end. 
 Eligibility: 
 A  Wireless  PBX  Adjunct  is  eligible  for 
 discount. 

 Workstation 
 (Computers) 
 Description: 
 A  computer  workstation  is  a  personal 
 computer  that  may  operate  in  a 
 stand-  alone  environment,  or  may  be 
 connected  to  a  host  computer  as  part 
 of  a  network. 
 Eligibility: 
 Workstations,  personal  computers,  or 
 other  end  user  components  are  not 
 eligible  for  discount.  If  the  keyboard, 
 mouse,  display,  or  other  features  of  a 
 computer  workstation  are  used  by 
 end  users,  computer  workstations  are 
 not  eligible,  even  if  the  workstation 
 can  also  function  in  the  capacity  of  a 
 file  server. 

 Not  Eligible 

 Miscellaneous 
 The  service  category  for  entries  in  this  section  should  reflect  the  same  category  as 
 the  product  or  service  being  installed  or  maintained--  Telecommunications  Services, 
 Internet  Access,  or  Internal  Connections. 

 Product  Type 
 (Function) 
 Description  Eligibility 

 Broadcast  Services 
 (Miscellaneous) 
 Description: 
 Broadcast  services  provide  access  to 
 the  general  public  to  video  and/  or 
 audio  information  from  over-  the-  air 
 radio  or  television  stations,  including 
 satellite  broadcast  stations. 
 Eligibility: 
 Services  that  provide  access  to 
 broadcast  content,  cable  television 
 content,  or  similar  general-  purpose 
 point-  to-  multipoint  information  are 
 not  considered  telecommunications 
 services  and  are  therefore  not  eligible 
 for  discount. 

 Not  Eligible 
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 Change  Fees 
 (Miscellaneous) 
 Description: 
 Change  fees  are  charges  imposed  for 
 the  modification  of  an  existing 
 service. 
 Eligibility: 
 Costs  incurred  in  modifying  an 
 existing  eligible  service  to  another 
 eligible  service  are  eligible. 

 Configuration 
 Charges 
 (Miscellaneous) 

 Description: 
 "Configuration"  places  a  product  or 
 service  into  operation,  or  modifies  the 
 operation  of  an  existing  product  or 
 service. 
 Eligibility: 
 Charges  for  the  configuration  of 
 eligible  hardware  and  software  are 
 eligible. 

 Construction  Costs 
 (Miscellaneous) 
 Description: 
 Construction  costs  involve  the 
 creation,  modification,  or  repair  of 
 physical  facilities,  such  as  the 
 removal,  creation,  repair,  or 
 replacement  of  walls  and  doorways. 
 Eligibility: 
 Construction  costs  generally  are  not 
 eligible.  However,  minor  construction 
 incidental  to  component  installation, 
 that  restores  a  facility  to  pre-installation 
 conditions,  is  eligible. 
 Asbestos  removal  is  not  eligible. 

 Contingency  Fee 
 (Miscellaneous) 
 Description: 
 A  contingency  fee  is  an  additional 
 potential  cost  included  in  a  price 
 quotation,  contract,  or  agreement  to 
 accommodate  unplanned  factors  that 
 might  arise  once  an  installation  is 
 underway. 
 Eligibility: 
 In  cases  in  which  the  scope  of  the 
 work  make  it  difficult  to  determine  the 
 specific  costs  beforehand,  a  service 
 provider  may  include  a  reasonable 
 contingency  fee,  but  such  a 
 contingency  fee  is  eligible  only  if  it  is 
 a  regular  business  practice  of  the 
 service  provider. 

 Dark  Fiber 
 (Miscellaneous) 
 Description: 
 Dark  fiber  refers  to  fiber  optic  cable 
 for  which  the  service  provider  has  not 
 provided  modulating  electronics,  i.  e., 

 Not  Eligible 
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 it  is  "dark.  In  some  cases,  this 
 communication  capacity  will  be  leased 
 to  organizations  that  will  add  their 
 own  modulating  electronics. 
 Eligibility: 
 The  FCC  has  not  resolved  whether 
 unlit  dark  fiber  is  a 
 telecommunications  service.  Pending 
 resolution  of  this  issue,  it  is  not 
 eligible  for  funding.  Please  see  the 
 Special  Eligibility  Condition  below  for 
 further  information. 
 Special  Eligibility  Conditions: 
 Lease  of  Wide  Area  Network 
 Infrastructure 

 Extended  Warranty 
 (Miscellaneous) 
 Description: 
 Extended  warranties  are  those  that 
 cover  periods  of  time  both  within  and 
 outside  the  current  funding  year. 
 Eligibility: 
 Eligibility  is  limited  only  to  that 
 portion  of  the  warranty  within  the 
 current  funding  year.  Extended  or 
 multi-  year  warranties  must  be 
 prorated  so  only  the  portion  of  the 
 warranty  applicable  to  the  current 
 funding  year  is  funded.  However,  if  a 
 manufacturers  multi-  year  warranty  is 
 included  in  the  price  of  the  equipment 
 for  all  customers  without  a  separately 
 identified  cost,  proration  is  not 
 required. 

 Finance  or  Interest 
 Charges 
 (Miscellaneous) 

 Description: 
 A  finance  charge,  or  interest,  is  a 
 charge  assessed  for  borrowing. 
 Eligibility: 
 Finance  or  interest  charges  assessed 
 for  loans  to  fund  the  lease  or 
 purchase  of  products  or  services  are 
 not  eligible. 

 Not  Eligible 

 Freight  Assurance 
 Fees 
 (Miscellaneous) 

 Description: 
 Freight  assurance  fees  are  fees 
 assessed  to  the  purchaser  for  the 
 guarantee  of  safe  delivery  to  their 
 premises  of  goods,  i.  e.,  they  provide 
 shipping  insurance. 
 Eligibility: 
 Freight  assurance  fees  are  eligible  for 
 discount  if  associated  with  eligible 
 components. 
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 Lease  Fees 
 (Miscellaneous) 
 Description: 
 A  lease  fee  is  a  charge  for  the  use  of 
 goods  that  are  not  owned  by  the 
 applicant,  i.  e.,  rent. 
 Eligibility: 
 Lease  fees  charged  for  the  use  of 
 eligible  services  and  products  are 
 eligible.  However,  any  finance 
 charges,  associated  with  leasing  or 
 otherwise,  are  not  eligible. 

 Per  Diem 
 (Miscellaneous) 
 Description: 
 Per  diem  is  a  dollar  amount 
 designated  to  a  vendor  for  daily 
 expenses  such  as  lodging  and  food.  It 
 may  or  may  not  include  travel  time. 
 Eligibility: 
 Per  diem  expenses  are  eligible  for 
 funding  if  a  contract  with  a  vendor  for 
 eligible  services  specifically  stipulates 
 or  allows  for  per  diem,  and  it  is  cost 
 effective.  It  is  not  eligible  if  it  is  not 
 part  of  a  contract  or  bid. 

 Performance  Bond 
 (Miscellaneous) 
 Description: 
 A  Performance  Bond,  also  known  as  a 
 Bid  Bond,  is  a  legal  obligation, 
 generally  obtained  by  the  vendor  or 
 contractor  from  a  third  party,  that 
 guarantees  the  terms  of  the  contract 
 or  agreement  are  met.  In  the  event  of 
 default  or  failure  to  meet  the  terms, 
 the  bond  would  be  used  to  complete 
 the  contracted  work. 
 Eligibility: 
 Performance  Bonds  are  not  eligible. 

 Not  Eligible 

 Programming 
 (Miscellaneous) 
 Description: 
 Programming  refers  to  the  creation  of 
 software. 
 Eligibility: 
 Charges  for  programming  of  eligible 
 internal  connections  are  eligible  for 
 discount  to  the  extent  that  the 
 charges  are  for  the  configuration  of 
 eligible  operational  software. 

 Not  Eligible 

 Shipping  Charges 
 (Miscellaneous) 
 Description: 
 Shipping  Charges  are  the  charges 
 associated  with  the  delivery  of 
 products  from  their  point  of  origin  to 
 the  customer  premises. 
 Eligibility: 
 Shipping  Charges  are  eligible  for 
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 discount  when  they  are  for  the 
 delivery  of  eligible  products  or 
 services. 

 Taxes,  Surcharges, 
 and  Other  Similar 
 Charges 
 (Miscellaneous) 

 Description: 
 Taxes,  surcharges,  and  other  similar 
 charges  refer  generally  to  additional 
 fees  that  are  a  necessary  component 
 of  the  cost  of  a  product  or  service. 
 Eligibility: 
 Federal  taxes,  state  taxes,  and  other 
 similar,  reasonable  charges  incurred 
 in  obtaining  eligible 
 Telecommunications  Services, 
 Internet  access  and  internal 
 connections  are  eligible. 

 Technical  Services 
 (Miscellaneous) 
 Description: 
 Technical  services  provide  service 
 provider  expertise  for  the 
 implementation  or  maintenance  of 
 technology. 
 Eligibility: 
 Technical  services  are  eligible  if  they 
 are  tied  directly  to,  and  required  for, 
 installation,  basic  configuration,  and 
 initial  operation  of  eligible  products 
 and  services.  Services  associated  with 
 initial  planning,  such  as  a 
 determination  of  the  technology  to  be 
 deployed,  are  not  eligible.  Please  see 
 the  Special  Eligibility  Condition  below 
 for  further  information  about  eligibility 
 of  costs  for  Design  &  Engineering, 
 Installation,  Maintenance  &  Technical 
 Support,  Project  Management, 
 Training,  Consulting  Services,  and 
 Personnel  Costs. 
 Special  Eligibility  Conditions: 
 Technical  Services 

 Termination  Charges 
 (Miscellaneous) 
 Description: 
 Termination  charges  are  fees 
 assessed  for  the  removal  or 
 discontinuation  of  a  product  or 
 service. 
 Eligibility: 
 Charges  for  termination  liability  or 
 other  charges  not  involved  with 
 obtaining  or  initiating  eligible  services 
 are  not  eligible. 

 Not  Eligible 

 Travel  Time 
 (Miscellaneous) 
 Description: 
 Travel  time  refers  to  the  time  required 
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 for  service  provider  personnel  to 
 travel  to  and/  or  from  locations 
 necessary  to  provide  eligible  services. 
 Eligibility: 
 The  cost  of  travel  to  and  from  a  work 
 site  is  eligible  for  discount  only  if  a 
 contract  with  a  vendor  for  eligible 
 services  stipulates,  or  allows,  travel 
 time,  and  it  is  cost  effective.  It  is  not 
 eligible  if  it  is  not  part  of  a  contract  or 
 bid. 

 Two-  way  Radio 
 (Miscellaneous) 
 Description: 
 Two  way  radios  are  wireless  end-  user 
 devices  used  to  communicate, 
 generally  over  short  distances. 
 Eligibility: 
 Two  way  radios  are  not  used  to 
 provide  Telecommunications  Services, 
 and  do  not  meet  the  definition  of  an 
 eligible  Internal  Connections. 

 Not  Eligible 

 Video  Services 
 (Miscellaneous) 
 Description: 
 Video  services  involve  to  the 
 transmission  of  visual  images. 
 Eligibility: 
 Services  that  provide  video 
 transmissions  may  be  provided  under 
 the  eligibility  requirements  for 
 Telecommunications  Service  or 
 Internet  Access.  Cable  and  broadcast 
 television,  however,  are  not  eligible 
 for  discount. 

 Voice  Mail  Service 
 (Miscellaneous) 
 Description: 
 Voice  Mail  Service  is  an  information 
 service  that  allows  users  to  receive 
 voice  messages  left  by  telephone 
 callers,  and  may  have  other  features 
 such  as  message  forwarding. 
 Eligibility: 
 Voice  mail  services  provided  for  one 
 or  more  telephone  lines  are  eligible  for 
 discount.  Voice  mail  service  need  not 
 be  provided  by  an  eligible 
 telecommunications  provider  to  be 
 eligible. 
 For  administrative  convenience,  voice 
 mail  service  may  be  requested  in 
 either  the  Telecommunications 
 Services  category  of  service  (if  the 
 service  provider  is  an  eligible 
 telecommunications  provider)  or  the 
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 Internet  Access  category  of  service 
 (for  any  service  provider). 
 In  addition,  voice  mail  equipment  may 
 be  requested  in  the  Internal 
 Connections  category  of  service. 
 However,  end-  user  products  such  as 
 answering  machines  are  not  eligible 
 for  discount. 

 Voice  over  IP  (VoIP) 
 Service 
 (Miscellaneous) 

 Description: 
 Voice  over  IP  (VoIP),  IP  telephony, 
 and  related  service  offerings 
 all  employ  a  technology  to  transmit 
 voice  conversations  over  a  data 
 network  using  the  Internet  Protocol. 
 Similar  Internet  protocols  can  be  used 
 to  provide  video  services. 
 Eligibility: 
 IP-  enabled  services  are  the  subject  of 
 an  open  proceeding  at  the  FCC  to 
 determine,  among  other  things, 
 whether  certain  types  are 
 telecommunications  services.  Pending 
 FCC  action  with  respect  to  specific 
 services,  such  services  are  not  eligible 
 for  funding. 

 Not  Eligible 

 Special  Eligibility  Conditions 
 Title:  Condition: 
 Ancillary  Use  If  a  product  or  service  includes  ineligible 
 functionality,  then,  in  general,  the  proportionate  cost 
 of  this  functionality  must  be  removed  from  funding 
 requests  through  a  cost  allocation  process.  However, 
 in  certain  limited  cases,  if  any  ineligible  functionality 
 is  strictly  ancillary  to  the  principle  uses  of  the 
 product  or  service,  the  full  product  or  service  may  be 
 eligible  for  discounts. 

 The  following  conditions  are  considered  when 
 evaluating  whether  ineligible  functionality  is 
 ancillary:  (1)  The  package  represents  the  most  cost- 
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 effective  bid  for  the  eligible  product  or  service.  (2) 
 The  consideration  of  cost-  effectiveness  must  be 
 made  without  considering  ineligible  features.  (3)  The 
 package  is  a  standard  product  offering  that  includes 
 the  ineligible  features  as  an  intrinsic  part,  with  no 
 separated  pricing  available.  (4)  The  applicant  is  not 
 specifically  seeking  one  or  more  of  the  ineligible 
 components.  (5)  Any  added  content  must  be 
 minimal. 

 Funding  requests  that  include  only  a  single  price  for 
 components  that  contain  both  eligible  and  ineligible 
 functionality,  and  fail  to  meet  the  requirements  for 
 Ancillary  Use,  are  fully  ineligible.  Therefore, 
 applicants  are  encouraged  to  utilize  a  cost  allocation 
 process  to  remove  ineligible  functionality  whenever 
 feasible.  For  further  information,  see  Cost  Allocation 
 Guidelines  for  Products  and  Services  that  Contain 
 Eligible  and  Ineligible  Components  located  in  the 
 Reference  Area  of  the  SLD  Web  site 
 (www.  sl.  universalservice.  org). 

 Cost  Allocation  Products  and  services  available  in  the  commercial  marketplace  may  contain  both  eligible  and  ineligible 
 components.  However,  E-  rate  discounts  can  be 
 provided  only  for  products  and  services  that  are 
 eligible  under  program  rules.  Cost  Allocation  is  a 
 process  whereby  an  applicant  provides  a  fair 
 delineation  of  the  eligible  and  ineligible  components 
 of  a  product  or  service,  so  that  partial  funding  can 
 be  provided. 

 In  general,  funding  requests  that  include  only  a 
 single  price  for  components  that  contain  both  eligible 
 and  ineligible  functionality  will  be  deemed  fully 
 ineligible.  See  the  SLD  web  document  Cost  Allocation 
 Guidelines  for  Products  and  Services  that  Contain 
 Eligible  and  Ineligible  Components  for  further 
 information,  which  additionally  describes  Ancillary 
 Use,  which  is  funding  for  components  that  include 
 ineligible  functionality  strictly  on  an  ancillary  basis. 

 Cost  Allocation  for 
 File  Servers 

 File  servers  and  other  components  can  be  used 
 simultaneously  for  multiple  purposes,  some  of  which 
 are  eligible  and  some  not  eligible.  Cost  allocation  is 
 required  to  remove  any  ineligible  functionality  from 
 funding  requests.  However,  the  exact  usage  of  a  file 
 server  or  other  product  with  multiple  uses  may  be 
 difficult  to  determine  before  the  product  is  installed 
 and  utilized.  A  simplified  method  of  cost  allocation  is 
 available  to  accommodate  this  situation.  It  is  based 
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 on  a  simple  averaging  process  of  the  different 
 functions  of  the  product  that  is  described  more  fully 
 in  the  SLD  web  document  Cost  Allocation  Guidelines 
 for  File  Servers  and  Other  Components. 

 Digital  Transmission 
 Services 

 Leased  data  circuits  for  voice,  video,  and/  or  data 
 that  connect  an  eligible  school  or  library  facility  to 
 other  locations  beyond  the  school  or  library, 
 including  an  Internet  Service  Provider,  are  eligible 
 for  discount. 

 Technologies  employed  may  include,  but  are  not 
 limited  to:  Asynchronous  Transfer  Mode  (ATM), 
 Digital  Subscriber  Line  (DSL,  ADSL,  SDSL,  HDSL, 
 IDSL,  VDSL),  DS-  1,  DS-  2,  DS-  3,  Frame  Relay, 
 Integrated  Services  Digital  Network  (ISDN),  OC-  1, 
 OC-  3,  OC-  12,  OC-  N,  Satellite,  Switched  Multimegabit 
 Data  Service  (SMDS),  T-  1,  T-  2,  T-  3,  Fractional  T-  1, 
 and  Wireless. 

 Data  circuits  that  provide  voice,  video,  or  data 
 connectivity  exclusively  within  school  or  library 
 grounds  are  not  eligible  for  funding  as  a 
 Telecommunications  Service,  but  may  be  eligible  as 
 Internal  Connections. 

 Eligible  Users  and 
 Locations 

 Eligible  users  and  locations  are  those  that  are 
 involved  with  activities  that  are  integral,  immediate, 
 and  proximate  to  the  education  of  students  or  the 
 provision  of  library  services  to  patrons.  The 
 presumption  is  that  activities  on  school  or  library 
 property  meet  this  standard.  Some  offsite 
 telecommunications  activities  may  also  meet  this 
 standard,  such  as  a  school  bus  driver  using  a  cell 
 phone,  connectivity  to  a  mobile  library  van,  and 
 paging  service  for  teachers  on  field  trips. 

 The  term  school  or  library  property  includes  a 
 District  Office  of  similar  facility,  but  does  not  include 
 businesses  or  organizations  separate  from  a  school 
 or  library  organization.  For  example,  the  facilities  of 
 a  business  that  has  contracted  with  a  school  to 
 provide  bus  service  do  not  constitute  a  location 
 eligible  for  E-  rate  support. 

 Employees  of  a  school  or  library  with  a  normal  duty 
 station  at  an  eligible  location  are  eligible  users. 
 Employees  of  a  non-  school  or  non-  library  activity, 
 even  if  located  on  school  or  library  property,  such  as 
 a  state  government  office  with  responsibilities  other 
 than  education  or  library  services  (e.  g.,  a  division  of 
 motor  vehicles),  are  not  eligible  users. 
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 Cabling/  connectors  Cabling  and  connectors  for  the  distribution  of  voice, 
 video,  and  data  within  eligible  locations  are,  in 
 general,  eligible. 

 Circuit 
 cards/  components 
 Circuit  cards  and  other  components  that  work  in  or 
 with  an  eligible  component,  and  provide  an  eligible 
 function,  are  in  turn  eligible. 

 Computers  Computers  used  as  file  servers  or  similar  centralized 
 functions  can  be  eligible  if  the  use  is  necessary  to 
 transport  information  all  the  way  to  individual 
 classrooms  or  public  areas  of  a  library. 

 Data  distribution  Components  used  to  distribute  information  from 
 telecommunications  or  Internet  access  facilities,  all 
 the  way  to  individual  classrooms  or  public  areas  of 
 a  library,  are  eligible. 

 Data  protection  Some  types  of  data  protection  components  are  used 
 to  ensure  continued  operation  of  eligible  equipment, 
 and  can  be  eligible. 

 End-  user  End-  user  equipment  is  not  eligible. 
 Intercom  and  voice 
 paging 
 Intercom  and  voice  paging  equipment  does  not 
 facilitate  transport  of  telecommunications  or 
 Internet  access  information,  and  is  not  eligible. 

 Interfaces, 
 gateways, 
 antennas 

 Interfaces,  gateways,  and  antennas  that  are  used 
 as  Internal  Connections  to  transport 
 telecommunications  or  Internet  Access  information 
 all  the  way  to  individual  classrooms  or  public  areas 
 of  a  library  are  eligible. 

 Miscellaneous  See  individual  entries  for  eligibility  information. 
 None  No  category  is  indicated--  see  the  individual 
 descriptions  for  eligibility  information. 

 Software  Operating  system  software  that  is  required  for 
 operation  of  an  eligible  component,  and  e-  mail 
 software,  is  eligible.  End  user  software  is  not 
 eligible. 

 Functional 
 Categories 
 for  Internal 
 Connections 

 Storage  Devices  Devices  used  to  store  eligible  software  and  files  are 
 eligible  for  discount,  but  devices  used  to  store 
 ineligible  software  and  files  are  not  eligible. 
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 Technical  Services  The  assistance  of  contractor  personnel,  when  tied 
 directly  to  the  provision  of  an  eligible  product  or 
 service,  can  be  eligible.  See  the  individual  entries 
 for  qualifying  information.  See  also  the  entry  for 
 Technical  Services  in  the  Miscellaneous  section  of 
 this  document. 

 Telephony  Centralized  telephony  components  that  are  an 
 essential  element  in  the  transport  of  information 
 within  eligible  locations  are  eligible.  End  user 
 components  are  not  eligible. 

 Video  Centralized  video  components  that  are  an  essential 
 element  in  the  transport  of  information  within 
 eligible  locations  are  eligible.  End  user  components 
 are  not  eligible. 

 Internet  Access 
 with  Ineligible 
 Features  Some  Internet  Access  services  may  include  features  that  are  not  themselves  eligible,  such  as  specialized  content, 

 caching  services,  and/  or  filtering  services.  In  general, 
 funding  requests  that  provide  only  a  single  price  for  a 
 product  or  service  that  contains  both  eligible  and 
 ineligible  functionality  are  fully  ineligible.  However,  cost 
 allocation  may  be  used  to  provide  separated  pricing  for 
 the  eligible  and  ineligible  components. 

 In  addition,  in  certain  limited  cases,  an  eligible  product 
 or  service  can  include  ineligible  components  on  an 
 ancillary  basis.  See  the  Special  Eligibility  Condition  for 
 Ancillary  Use  for  additional  information  about  the 
 conditions  and  limitations  of  the  Ancillary  Use  approach. 

 Lease  of  Wide  Area 
 Network 
 Infrastructure 

 Facilities  that  provide  a  Wide  Area  Network  may  only  be 
 leased  by  applicants--  not  purchased.  Limitations  apply 
 to  the  reimbursements  that  are  available  for  initial 
 implementation  costs  (leased  equipment  and  its 
 installation)  of  service  provider  infrastructure.  The  Wide 
 Area  Network  Fact  Sheet  has  full  details  about  exclusive 
 access  limitations,  amortization  requirements,  and  other 
 eligibility  conditions  for  lease  of  Wide  Area  Network 
 functionality. 

 Network  File 
 Servers 

 A  file  server  is  a  shared  computer  on  a  local  area 
 network,  and  can  be  eligible  or  ineligible  for  discounts, 
 depending  on  how  it  is  used.  Eligible  servers  are  used  to 
 provide  functionality  for  Dynamic  Host  Configuration 
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 Protocol  (DHCP),  Domain  Name  Services  (DNS),  E-  mail, 
 Firewall/  Proxy  Server,  or  Terminal  Services.  Ineligible 
 uses  include  Application  Server  (e.  g.,  providing 
 application  software  to  end  users),  Database  Server, 
 Data  Warehouse  Server  (including  storage  of  non-  e-  mail 
 end  user  files),  and  Archive  Server. 

 In  addition,  the  following  uses  are  not  eligible:  Caching 
 Server  and  Print  Server.  In  the  case  of  these  latter  two 
 functions,  however,  an  eligible  server  may  provide  these 
 features  coincidentally  if  the  principal  functionality  of  the 
 server  is  for  other  eligible  purposes,  and  the  ineligible 
 features  are  included  as  an  intrinsic  part  of  the  core 
 network  operating  system. 

 A  computer  that  is  used  by  an  end  user,  even  if  the 
 computer  is  configured  to  provide  server  functionality,  is 
 not  eligible  for  discount. 

 Software  Eligible  software  consists  only  of  operating  system  software  for  shared  systems  and  multi-  user  e-  mail  or 
 voice  mail  software.  For  example,  software  for  a 
 network  operating  system  and  a  router  operating 
 system  are  eligible.  Other  types  of  software  such  as  all 
 end  user  software  is  not  eligible. 

 Ineligible  software  includes  application  software, 
 developmental  software,  network  management 
 software,  operating  system  software  for  end  user 
 computers,  security  software,  and  utility  software. 

 The  e-  mail  portion  of  groupware  software  is  eligible,  and 
 cost  allocation  may  be  used  for  discounts  on  the  eligible 
 portion. 

 Ineligible  functionality  may  be  included  with  network 
 operating  system  software,  if  such  functionality  is  a 
 standard  component  part.  For  example,  although  a 
 separate  component  for  providing  a  print  server 
 functionality  is  not  eligible,  such  functionality  may  be 
 provided  as  a  standard  component  part  of  a  network 
 operating  system. 

 A  computer  operated  by  an  end  user,  that  is  also  set  up 
 as  a  network  server,  is  considered  an  ineligible  end  user 
 computer. 

 Storage  Data  storage  products  are  not  eligible  if  used  to  store  the  following  information:  end  user  files  other  than  e-mail 
 files,  application  software,  other  ineligible  software, 
 archival  information,  and  caching  files. 
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 However,  unless  excluded  in  the  above  list,  storage 
 products  may  be  used  for  network  operating  system 
 files  (when  the  associated  file  server  is  used  for  an 
 eligible  purpose),  Domain  Name  Service  (DNS)  files, 
 Dynamic  Host  Configuration  Protocol  (DHCP)  files,  Web 
 server  software  and  files  (when  used  for  providing 
 information  available  on  the  worldwide  Internet),  and  E-mail 
 software  and  files. 

 Storage  devices  on  end  users  computers  are  not  eligible. 
 Devices  used  to  supplement  storage  requirements  of 
 personal  computers  on  a  network  are  not  eligible. 

 Technical  Services  Some  types  of  technical  services,  and  their  limitations  for  eligibility,  are  as  follows. 
 DESIGN  AND  ENGINEERING  Basic  design  and 
 engineering  costs  necessary  for  installation  and  initial 
 configuration  are  eligible  only  if  they  are  coincident  (i.  e., 
 occur  at  the  same  time)  with  the  installation  of  eligible 
 equipment  and  services  and  if  part  of  a  contract  or  bid 
 for  those  eligible  products  or  services. 

 INSTALLATION  Services  tied  directly  to  installation  and 
 initial  configuration  are  eligible;  services  for  planning, 
 architecture  design,  and  other  activities  not  tied  directly 
 to  actual  installation  and  initial  configuration  are  not 
 eligible. 

 MAINTENANCE  AND  TECHNICAL  SUPPORT  Basic 
 maintenance  is  eligible  for  discount  only  if  it  is  a 
 component  of  a  maintenance  agreement  or  contract  for 
 eligible  services  or  products,  and  these  maintenance 
 services  are  cost  effective.  The  agreement  or  contract 
 must  specifically  identify  the  eligible  products  or  services 
 covered,  including  product  name,  model  number,  and 
 location.  The  following  products  and  services  are 
 generally  eligible:  repair  and  upkeep  of  eligible 
 hardware,  wire  and  cable  maintenance,  basic  technical 
 support  and  configuration  changes.  The  following 
 products  and  services  are  ineligible:  on-  site  technical 
 support  (i.  e.,  contractor  duty  station  at  the  applicant 
 site,  when  off-  site  technical  support  can  provide  basic 
 maintenance  on  an  as-  needed  basis),  24-  hour  network 
 monitoring,  network  management,  help  desks  (that 
 provide  a  comprehensive  level  of  support  beyond  basic 
 maintenance  of  only  eligible  components),  and  technical 
 support  contracts  that  are  more  than  basic 
 maintenance. 
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 PROJECT  MANAGEMENT  Basic  costs  associated  with  the 
 management  of  the  installation  and  initial  operation  of 
 eligible  products  and  services  are  eligible  only  if  they  are 
 part  of  a  contract  or  bid  for  those  eligible  products  and 
 services.  Project  management  costs  that  involve  initial 
 planning  are  not  eligible. 

 TRAINING  On-  site  training  is  eligible  only  if  it  is  basic 
 instruction  on  the  use  of  eligible  equipment,  coincident 
 with  and  directly  associated  with  the  installation  of  such 
 equipment,  and  a  part  of  the  contract  or  agreement  for 
 the  equipment.  End  user  training,  such  as  training  of 
 teachers  and  staff  in  the  use  of  covered  services  in  their 
 programs  of  instruction  or  for  professional  development, 
 is  not  eligible  for  discount. 

 CONSULTING  SERVICES  Services  that  provide  general 
 consulting  not  directly  tied  to  basic  installation  and 
 configuration  of  eligible  services  are  not  eligible.  Such 
 ineligible  services,  include,  but  are  not  limited  to,  initial 
 planning,  network  architecture  design,  development  of 
 technology  plans,  application  assistance,  and  program 
 advice. 

 PERSONNEL  COSTS  Labor  costs  for  school  and  library 
 personnel  are  not  eligible  for  discount.  Costs  for 
 contractor  personnel  to  operate  components  are  not 
 eligible. 

 Telephone  Service 
 and  Technology 
 Plans 

 If  submitting  a  Form  471  application  ONLY  for  single  line 
 voice  services  (Local,  Cellular/  PCS,  and/  or  long  distance 
 telephone  service),  applicants  are  not  required  to 
 develop  a  Technology  Plan.  Applicants  applying  for  other 
 products  or  services,  including  PBX,  key  system, 
 Centrex  system,  or  similar  technology  are  required  to 
 develop  a  Technology  Plan. 

 Video  Components  Video  components  necessary  to  transport  information  all  the  way  to  individual  classrooms  or  public  areas  of  a 
 library  are  eligible.  Examples  of  such  components  can 
 include  an  Enhanced  Multimedia  Interface,  Master 
 Control  Unit,  MPEG  video  encoder,  Multipoint  Control 
 Unit,  video  amplifier,  and  video  channel  modulator. 

 End  user  video  equipment  is  not  eligible  for  discount. 
 Examples  include  media  retrieval  equipment,  video 
 monitors,  televisions,  video  cameras,  and  video 
 recorders  and  playback  devices. 

 Equipment  that  is  used  to  control  the  programming, 
 distribution,  and  selection  of  video  content  can  be 
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 eligible  if  used  in  the  transport  of  information  to 
 individual  classrooms  or  public  areas  of  a  library, 
 however  such  components  are  not  eligible  if  used  in  end 
 user  equipment  and/  or  are  operated  by  end  users. 

 Components  used  for  the  display  or  distribution  of 
 broadcast  and  cable  television  signals  are  not  eligible. 

 WAN  Versus  LAN 
 Components 

 For  data  and  other  networks,  the  distinction  between 
 Wide  Area  Network  (WAN)  functionality  and  Local  Area 
 Network  (LAN)  functionality  can  be  essential  for 
 selecting  the  proper  Category  of  Service  for  funding 
 requests  Telecommunications  Services,  Internet 
 Access,  or  Internal  Connections.  FCC  rules  establish  a 
 rebuttable  presumption  that  a  connection  does  not 
 constitute  an  Internal  Connection  if  it  crosses  a  public 
 right  of  way.  That  is,  the  Local  Area  Network  is 
 considered  to  be  the  part  of  the  network  on  school  or 
 library  property,  and  hence  is  considered  under  the 
 eligibility  requirements  for  Internal  Connections.  The 
 Wide  Area  Network  constitutes  the  connection  that  runs 
 from  a  demarcation  point  at  the  school  or  library 
 property  to  a  point  outside  of  the  school  or  library 
 property  (i.  e.,  across  a  public  right  of  way)  and  is  not 
 funded  as  Internal  Connections. 

 In  order  to  determine  what  may  be  properly  funded  as 
 Internal  Connections,  a  demarcation  point  between  the 
 Wide  Area  Network  and  the  Local  Area  Network  must  be 
 established.  This  approach  is  described  more  fully  in  the 
 SLD  web  document  On-  premise  Priority  1  Equipment. 

 Wireless 
 Components 

 The  specific  technology  employed  is  not  a  factor  when 
 determining  the  eligibility  of  a  product  or  service.  For 
 example  wireless  phone  service  must  meet  the  same 
 eligibility  requirements  as  landline  phone  service.  For 
 wireless  network  technology,  the  radio  frequency 
 components  such  as  transmitter  and  antenna  (or 
 satellite  dish)  are  considered  to  achieve  the  same 
 functionality  as  cabling. 
72