1、Congressional Research Service ? The Library of CongressCRS Report for CongressReceived through the CRS Web98-604 EPWUpdated January 4, 2001E-Rate for Schools: Background onTelecommunications Discounts Through theUniversal Service FundJames B. StedmanSpecialist in Social LegislationandPatricia Osori
2、o-ODeaAnalyst in Social LegislationDomestic Social Policy DivisionSummaryUnder language enacted in the Telecommunications Act of 1996, a discount ontelecommunications services is being implemented for schools and libraries as part ofuniversal service. In general, universal service seeks to ensure th
3、e availability oftelecommunications services for all consumers, including low-income consumers as wellas those in rural and high cost areas. The universal service discount for schools andlibraries, known as the E-rate, is now in its third award cycle. The E-rate has an annuallimit of $2.25 billion i
4、n discounts. The Federal Communications Commission (FCC)committed a total of $2.25 billion for the second year; it has also set the third yearfunding level at $2.25 billion. Applicants for the third year have requested discounts of$4.72 billion. Given concerns about various aspects of the program by
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