E-Rate Funding Application Window Announced

            Cable operators and telephone companies interested in serving schools, libraries, and health care facilities that receive funds for broadband or telephone services under the E-Rate program and Rural Health Care Programs should be aware of some upcoming application windows:

• January 6, 2014 – Application window opens for applicants to the E-Rate program
• March 2, 2014  –  Application window opens for the Rural Health Care programs

More detail about the application processes follows for those interested in participating in the E-Rate or the Rural Health Care Programs.

E-Rate Program for Schools and Libraries

Application Window and Eligible Services.  The Universal Service Administrative Company (“USAC”) has announced that the application window will open at noon Eastern Time on January 6, 2014 and will close at 11:59 ET on March 26, 2014 for the 2014 funding year (“FY 2014” i.e. 7/1/14-6/30/15) for schools and libraries applying for funding to obtain affordable telecommunications and Internet access through the Schools and Libraries Program of the Universal Service Fund, more commonly known as the E-Rate program.  The E-Rate program provides funds either to the applicant or directly to the service provider so that the actual cost of the service to the school or library is discounted. The amount of a discount a school or library can receive ranges from 20-90% and is based on income level and whether it is an urban or rural location.  A list of services eligible for the E-Rate program is available here. 

            Application Process.  Schools and libraries are currently filing their Forms 470, which opens the competitive bidding period to provide the service.  Form 470 lists the services desired and must be posted on the USAC website for 28 days prior to the application for the funding request.  The posting period is to give service providers the opportunity to submit bids directly to the applicant for providing the services.  The name and address of the contact at the school or library for receiving the bids is listed on the Form 470.  The applicant then chooses a provider for the service, enters into a contract if necessary and submits such information with the Form 471 application for funding.

            Thus, providers of data or phone service are encouraged to search the USAC database of filed Forms 470 in their service area and to bid on providing the service.  The database is searchable under various criteria and is located here. Keep in mind that the school or library’s filing of the Form 470 starts the clock on the bidding window and that the contract award can be made after the Form 470 has been posted for 28 days – thus it is wise to check the database on a regular basis.  It is also wise to discuss the possibility of E-Rate funding with schools and libraries in your service area. 

            A service provider who is a successful bidder and included in the application will be required to have a Service Provider Identification Number (“SPIN”) to participate in the program and receive funds, either directly or through the successful applicant.  USAC is not able to complete the review of the applicant’s request until the SPIN is provided.  Therefore if you are interested in participating and submitting bids it would be wise to obtain a SPIN if you do not already have one.  To apply for a SPIN you need to complete FCC Form 498 and submit it to USAC.

Rural Health Care Programs

Separate Funds for Broadband and Telecommunications.  There is a similar program for providing broadband internet access to rural health care providers: the newly designed “Health Care Connect Fund.”  Previously, Internet access was part of the Rural Health Care-Telecommunication Program.  Funding for rural healthcare telecommunication discounts (i.e., non-Internet access services) continues under USAC’s Rural Health Care-Telecommunication Program.  The two healthcare funds are similar to the E-Rate fund in their application methodology, but have a different filing window. 

Application Window.  For the Health Care Connect Fund and Telecommunications Fund the initial filing period to submit funding requests for FY 2014 is March 1, 2014 through May 30, 2014.  Funding requests received on or between these dates will be considered as received simultaneously.  In contrast, for the next filing period, from May 30, 2014 through June 30, 2015, funding requests will be processed on a rolling first-come, first-served basis. 

Process.  Similar to the E-Rate Program, health care facility applicants must first file an initial description of the services desired, which are posted on the USAC site to give Service Providers the opportunity to competitively bid on  the services.  The hospital or health care facility then chooses the winning service provider and uses the winning bid in filing its application for funding request.  Thus, service providers interested in providing service pursuant to the Rural Health Care program would be well advised to monitor the posting on the USAC website in Mid-March.  Like the E-Rate program, a service provider will need a SPIN number to participate.

            If you have any questions regarding the E-Rate Program, the Health Care Connect Program or filing for a SPIN, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com or Jake Baldwin at (312) 372-3930 or jbaldwin@cinnamonmueller.com.

Copyright Office Establishes Statement of Account Filing Fees

Filing Fees Will Be Required for Forms Due March 3, 2014

On November 29, 2013, the Copyright Office published rules establishing filing fees for cable and satellite Statements of Account (“SOAs”).  The new rules will be effective January 1, 2014, and cable operators will be required to pay the applicable filing fee with their 2013/2 SOAs due March 3, 2014.

The new rules are the end result of a provision of the 2010 Satellite Television Extension and Localism Act that permits the Copyright Office to assess and apportion filing fees between copyright owners and statutory licensees. 

The filing fee is calculated based on the type of form filed:  

            The Copyright Office will mail revised SOAs incorporating filing fees to all cable operators and satellite carriers by late December.  The revised SOAs will also be available online.

Cable operators must file with the U.S. Copyright Office their Statement of Account (Form SA1-2 or SA3) and pay any royalty fees due for the July 2013 – December 2013 accounting period by March 3, 2014.  The following forms apply:

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more.

Copyright royalty fees must be remitted by electronic payment.  If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or hschmid@cinnamonmueller.com.

Form 477 Due March 3, 2014

FCC Form 477 is due on March 3, 2014.  Operators are required to include information about broadband connections and local telephone service as of December 31, 2013.   Filing instructions and a link to the electronic filing system are available at http://www.fcc.gov/form477/. 

As a reminder, broadband providers must provide the following information:

• The number of broadband connections in individual census tracts, broken down by technology type and upload and download speed.
• The percentage of broadband connections that is residential.

 Moreover, interconnected VoIP providers must report the following information:

• The number of subscribers served (both end-user and resale).
• The percentage of subscribers that is residential.
• Whether the service is provided over a broadband connection provided by the filer or the filer’s affiliate. 
• A list of the 5-digit zip codes in which the filer has at least one subscriber.
• Whether the service is fixed or nomadic.

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cinnamonmueller.com.

CPNI Officer’s Certificate Due On or Before March 3, 2014

The FCC’s customer proprietary network information (“CPNI”) rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the  CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the  CPNI rules.  The annual certificate for 2013 must be filed on or before March 3, 2014.

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36.

In past years, the FCC has issued Public Notices in January and February offering further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included. 

If you have any questions regarding CPNI or filing the officer’s certificate, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cinnamonmueller.com.