The FCC decision also prioritized the allocation process so that telecommunication services and Internet access will be funded first. Schools and libraries which submitted their 471 applications by April 15 and which qualify for the greatest discounts are the most likely to be approved for E-rate discounts. Schools have to apply for the E-rate funds to be eligible for the discounts on service and equipment. Rural schools are eligible for a higher discount rate than urban school. See the table below.
Telecommunication services qualify, for both wired and wireless from commercial suppliers.
This means regular phone lines, pagers for security, high bandwidth telecommunications services, satellite delivery, and coaxial cable and telephone service. Internet access transmission and equipment are on the approved list. This includes electronic mail. Voice mail does not qualify. Internal connections fall in the accepted category, both installation and maintenance.