May 7, 1997 FCC Universal Service Order
Section X (regarding Schools and Libraries).
FCC 97-157.
Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order.
12 FCC Rcd 8776 (1997).

Source: FCC.  This document does not include footnotes from the original.

X. Schools and Libraries

A. Overview.

B. Telecommunications Carrier Functionalities and Services Eligible for Support.

C. Discount Methodology.

D. Restrictions Imposed on Schools and Libraries.

E. Funding Mechanisms for Schools and Libraries.

F. Access to Advanced Telecommunications and Information Services.

G. Sections 706 and 708 of the 1996 Act.

H. Initiation.

G.  Sections 706 and 708 of the 1996 Act

1. Background

601. Section 706 of the 1996 Act directs the Commission and the states to "encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) by utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, measures that promote competition in the local telecommunications market, or other regulatory methods that remove barriers to infrastructure investment." Section 706 directs the Commission to initiate a Notice of Inquiry within 30 months after enactment of the 1996 Act, i.e., by August 8, 1998, and to complete the inquiry within 180 days of its initiation.

602. Section 708 of the 1996 Act recognizes the National Education Technology Funding Corporation "as a nonprofit corporation operating under the laws of the District of Columbia, and . . . provide[s] authority for Federal departments and agencies to provide assistance to the Corporation." The purposes of the National Education Technology Funding Corporation include leveraging resources and stimulating investment in educational technology, designating state educational agencies to receive loans or grants from the Corporation, providing loans and grants to state education technology agencies, and encouraging the development of education telecommunications and information technologies through public-private ventures. Section 708 also states that "the [National Education Technology Funding] Corporation shall be eligible to receive discretionary grants, contracts, gifts, contributions, or technical assistance from any Federal department or agency, to the extent otherwise permitted by law."

603. In the Recommended Decision, the Joint Board concluded that Congress contemplated that section 706 would be the subject of a separate rulemaking proceeding and, therefore, declined to consider section 706 in the context of the section 254 rulemaking proceeding. Moreover, the Joint Board did not rely on section 708 to provide advanced services to schools and libraries within the context of this proceeding, and concluded that section 708 should be considered further after implementation of section 254.

2. Discussion

604. Section 254 recognizes the growing importance of technological literacy for successful participation in society and expands the concept of universal service to include assistance for schools and libraries in making technology available to students and the general public. As discussed above, section 254 will help provide support for the deployment of technology to classrooms and libraries across the nation. We recognize that sections 706 and 708 include requirements that would complement the goal of widespread availability of advanced telecommunications services. We concur with the Joint Board's conclusion, however, that Congress contemplated that section 706 would be the subject of a separate rulemaking proceeding. In section 706, Congress directed us to initiate a notice of inquiry within 30 months after the enactment of the 1996 Act, and it further directed us to complete that rulemaking proceeding within 180 days after its initiation. These statutory deadlines differ from the deadlines imposed on the section 254 rulemaking proceeding. The only specific proposal for implementing section 706 we received is made by GI, which recommended that we make Internet access and advanced services eligible for universal service support, both of which we are implementing for schools and libraries under the authority of section 254. Thus, we defer action on section 706 until we can develop a more complete record through a separate proceeding. We agree with the Joint Board, therefore, and decline to consider section 706 in the context of this proceeding.

605. Although we do not rely on section 706 in this proceeding, we note that section 706 reinforces the goals of section 254 by requiring the Commission and the states to encourage carriers to deploy "advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms)" through the utilization of "price cap regulation, regulatory forbearance, measures that promote competition in local telecommunications market, or other regulating methods that remove barriers to infrastructure investment." We support the goals of section 706, as evidenced by our actions in this proceeding, and will consider section 706 separately rather than in this rulemaking proceeding. Moreover, we agree with the Joint Board's recommendation, as well as its underlying reasoning, that we not rely on section 708 to provide advanced services to schools and libraries within the context of this proceeding. We also agree with the Joint Board and conclude that section 708 should be considered further after implementation of section 254.

Go To Section H. Initiation.