E-Rate Definitions

Billed entity: Any organization which will receive a bill directly from a telecommunications service provider. All billed entities must be listed on the Form 470.

Discounts: The funds paid from the USF to reduce telecommunications costs for schools (and other organizations and individuals) are frequently called "discounts." It does appear to be a discount to schools, since their cost for telecommunications drops, but vendors are not reducing prices. The vendor receives the amount of the "discount" from the USF. See "Level of Discount" for more information.

E-Rate: A nickname for the Universal Service Program.

Eligible services: Types of services for which schools and libraries can receive discounts from the USF. There is no definitive list which covers all services, but guidance and examples of eligible and ineligible services are available.

FCC: Federal Communications Commission.

Federal Communications Commission (FCC): The government body charged with implementing the Telecommunications Act of 1996. The FCC selected the National Exchange Carriers Association (NECA) to administer the Universal Service Fund.

Form 470: The Description of Service Requested. This "application" lists services for which a school or district wants to receive "discounts" from the Universal Service Fund. This request is posted on the SLC Web site to allow vendors to bid on the services listed. A district can fill out several 470s, if it wishes to have vendors able to bid on only some of the telecommunications services needed.

Form 471: Services Ordered and Certification. This form is submitted once a district has selected a vendor and signed a contract (or in the case of tariff services, service has started). The Form 471 should be submitted within 75 days after the opening of the SLC Web site.

Form 486: Receipt of Services. This form, not yet available, will be used by districts to certify that services have been received, and that the Universal Service Fund can pay the "discount" portion of the bill.

Level of discount: The percentage of a district’s total telecommunications costs which can be paid out of the Universal Service Fund. The level of discount is determined by using the percentage of the district’s students who are enrolled in the national school lunch. Public schools in NJ can find their level of discount at: http://www.state.nj.us/njded/techno/teleact/teledisc3.htm
If your school or district does not participate in the national school lunch program, you can get more information on determining your level of discount on the Web at: www.merit.edu/k12.michigan/usf/discount.html

National Exchange Carriers Association (NECA): The organization selected by the FCC to temporarily administer the Universal Service Program. NECA created the Schools and Libraries Corporation (SLC) to administer the application process, and USAC to handle billing, collection and disbursement of the USF.

NECA: National Exchange Carriers Association.

Pre-existing contract: Any contract which was signed before the SLC Website begins accepting applications (some time after January 12). All pre-existing contracts are eligible for USF funding for 1998. Eligibility for future years will depend on the date the contract was signed.

S&LC: Schools and Libraries Corporation.

Schools and Libraries Corporation (SLC): An organization created by the National Exchange Carriers Association (NECA) to administer the application process for the Universal Service Program. The SLC will accept applications at their Web site (www.slcfund.org) or by mail. Questions can be answered by phone: 888-203-8100; by fax: 888-276-8736; and by email: question@slcfund.org.

SLC: Schools and Libraries Corporation.

Universal Service Administration Company: The Universal Service Administration Company (USAC) is the subsidiary of NECA responsible for making sure that the discounts reach libraries and schools. USAC is also responsible for collecting the money necessary from service providers to ensure that there is sufficient money to fund all of the discounts.

Universal Service Program (USP): A program created by the Telecommunications Act of 1996. The USP calls for telecommunications providers to pay into a fund, which will be used to subsidize telecommunications costs for certain individuals and organizations, including public schools.

Universal Service Fund (USF): A fund set up by the Telecommunications Act of 1996. The USF is funded by mandatory contributions from telecommunications providers. The funds in the USF are to be used to subsidize ("discount") telecommunications costs for certain individuals and organizations, including public schools.

USAC: Universal Service Administration Company.

USF: Universal Service Fund.

USP: Universal Service Program