Comments on Bona Fide Requests

Contributed by: Laurie Maak <laurie@info-ren.pitt.edu>
Date: Mon Sep 16 23:24:14 EDT 1996

Bona fide Request

(B) Educational providers and libraries: All telecommunications carriers serving a geographic area shall, upon a bona fide request for any of its services that are within the definition of universal service under subsection (c)(3), provide such services to elementary schools, secondary schools, and libraries for educational purposes at rates less than the amounts charged for similar services to other parties. The discount shall be an amount that the Commission, with respect to interstate services, and the States, with respect to intrastate services, determine is appropriate and necessary to ensure affordable access to and use of such services by such entities. A telecommunications carrier providing service under this paragraph shall--

'(i) have an amount equal to the amount of the discount treated as an offset to its obligation to contribute to the mechanisms to preserve and advance universal service, or

'(ii) notwithstanding the provisions of subsection (e) of this section, receive reimbursement utilizing the support mechanisms to preserve and advance universal service.

Comments from Filers (Italics added to highlight relevant remarks.)

American Library Association

The eligibility requirement for libraries stated in the Telecommunications Act[7] is that they be eligible for participation in state-based plans for Title III of the Library Services and Construction Act.[8] No additional criteria are specified. This is the basis for the ALA recommendation that any request for services from a duly authorized individual in that library should constitute a bona fide request under the terms of the Telecommunications Act.

Should additional verification be necessary, the state library agency that administers LSCA funds would certainly be able to verify whether or not a library is, in fact, eligible for such funding.

Ameritech

The best way to ensure that the request is bona fide is have the requester put some of its own money at risk. Administrative costs could be reduced if the carrier provided eligible services at a discount and then made the corresponding off-sets to its payment to the universal service fund.

AT&T

To ensure that discounted telecommunications services are necessary and used for their intended purpose, both the individual school, library or non-profit health care provider, as well as the appropriate state-level governing authority (e.g., school, library, health care board), should certify that: (i)the applicant for discounted telecommunications service is a qualified school, library or non-profit health care provider; (ii)the discounted service, including the amount of capacity requested, is necessary to support the application planned and will be used for the stated purposes; and (iii)the associated hardware, software, wiring, on-site networking and training are to be deployed simultaneously with the discounted telecommunications service.

Bell Atlantic

Bell Atlantic's proposal does not create administrative burdens. States identify eligible schools and libraries. The payments will be made in the form of credit vouchers that can be used only for telecommunications services. The amount of the credits is established by a formula, and schools and libraries need not submit detailed plans to a state or federal agency. They need not have a program in place when the initial payments are distributed but may accumulate payment vouchers until an effective plan is developed and implemented. Localities are empowered to insure that the funds are used effectively.

BellSouth

It is recognized that a process which is burdensome or complicated would not be desirable. On the other hand, there is a need for coordinated and compatible educational technology plans. One means for determining bona fide requests could be for each school district to publish a list of those schools which it certifies are in compliance with the district's education technology plans, are prepared to implement telecommunications services for educational purposes, and are therefore eligible to make bona fide requests for services under the Commission's universal service program. There may also be a role for the state to determine which are eligible institutions for universal service under the Act. Similar mechanisms would need to be found for private schools, libraries and health care providers. It is unlikely that such processes would be abused, but the Commission should address what remedies would be appropriate in such an event.

Century Telephone

The FCC should define "bona fide requests" for [[section]]254(h) purposes and investigate specific complaint filings.

Colorado State Library

The least administratively burdensome requirement that could be used to ensure that requests for supported telecommunications services are bona fide is to identify only specific people eligible to request a discount for telecommunications services.

GTE

As described in the response to question 12 supra, each eligible entity desiring funding should be required to provide support materials that allow the central administrator to determine that the entity will effectively use the universal service support. The support materials should include:

(1) An attestation that the entity is eligible under [[section]]254(h).

(2) A telecommunications plan that describes how all network and non-network components fit together to create an effective program.

(3) A description of the process used to select the network services, the identity of the selected vendor, the services to be provided, the price to be paid for each service, and the amount of desired support funding.

(4) A budget showing that all of the necessary components other than telecommunications service (e.g., inside wiring, CPE, computers, educational application software and training in its use) are already present, or that commitments for their funding have been obtained from sources other than the universal service fund.

General Communication Inc.

The Commission should require self-certification.

Dave Hughes

State Departments of Education should be recruited, after being trained, to advise school administrations on the criteria for bona-fide requests. A spread-sheet model for making cost analyses of communications alternatives should be developed to aid administrators in evaluating both comparative and absolute costs.

Illinois State Library

The eligibility requirements for libraries are clearly stated in federal legislation. If a service provider has any question about the eligibility of a particular library, the state library administrative agency would be able to provide verification on whether or not the library is eligible.

Information Renaissance

The requests for supported telecommunications services should come from those school officials charged with the responsibility for telecommunications and technology implementation in their districts. Such officials have a responsibility within their districts to make judgments about the appropriateness of individual technology expenditures. Their responsibility with regard to the purchase of supported telecommunications services will be no different from their overall responsibility to purchase services of educational value and relevance to students and teachers in their districts.

MFS Communications Company

If telecommunications services are provided on a deeply discounted basis, that will create economic incentives for organizations and individuals to seeks ways to qualify for the discounted offerings. Mechanisms will have to be developed to distinguish between legitimate, bona fide requests for discounted offerings and offerings that should not qualify for the discounts. As described in its response to Question 8, MFS believes that its proposal is a better mechanism than discounted offerings for providing access to advanced, broadband telecommunications services.

National Cable TV Association

As stated in our initial comments, self-certification that the requirements have been met would be the least administratively burdensome method.

National Exchange Carrier Association

As discussed in NECA's response to question 14, supra, clear procedures and guidelines for determining eligibility must be established in order to assure that requests for discounts are within the intent of section 254(h).

National School Boards Association

Answer: A telecommunications provider may be faced with up to three levels of requests, assuming that the Commission permits liberal aggregation of demand. These levels are: (1) individuals schools or libraries, or school or library districts, (2) regional education agencies, and (3) statewide agency requests. At each level there are procurement procedures that ensure that any requests for telecommunications services are bona fide. Under state and local law, schools and libraries must comply with certain procedures and procure telecommunications services, just as they must for any other kind of service. The Commission should not make the mistake of believing that telecommunications services are somehow unique: Schools and libraries procure a wide variety of goods and services every day, and the various procurement procedures of each district or other agency will ensure that any request is legitimate. Eligible institutions should be treated under the law just as any other customer requesting services -- if they request services, services should be provided. If a service provider has reason to doubt that a particular request has been submitted by an eligible institution, there is a very simple means of determining whether the requestor is entitled to the discount: state boards of education maintain lists of all the institutions that are considered "schools" for purposes of receiving state and federal funding, including as defined at Section 254(h)(5)(A). Similar lists are maintained for libraries. Asimple query to the appropriate state-level agency would be enough to clear up any doubts in the rare case that there was a question.

New York State Department of Education

The least administratively burdensome methodology for certifying eligibility for discount rates is to make eligible any institution that is operating under the administrative charter of the state education agency, and/or state agency responsible for the oversight and administration of libraries.

Oakland Unified School District

The least burdensome requirement for bona fide requests is that schools be certified by the States and that telecommunications services be provided on the "total school" principle

Pacific Telesis

The Commission should require that entities redeeming the credits (i.e., schools, libraries or health care providers) submit a sworn statement by a person with authority to bind the institution itemizing the services purchased using the credits. Then, if it is later determined that the credits were used improperly, the Fund administrator can determine what actions to take, e.g. impose fines, forfeitures or penalties. The Universal Service/Federal Education Fund administrator should be or some responsibility in verifying that the credits are being redeemed for eligible telecommunications transport services, but the overall responsibility for ensuring that institutions use their credits appropriately should rest with the institutions--and their local governing bodies-themselves.

Rural Telephone Coalition

The least burdensome way to limit institutional requests for supported services would be to define bona fide request with specificity and enforce that limitation through the complaint process.

Sailor - A Maryland Library Project

The person requesting the service should include a statement that the request is bona fide and on behalf of an eligible institution.

Southwestern Bell Telephone

SWBT recommends the use of a simplified process. States already know what schools exist within their borders, so each State could provide a list of qualified schools to the fund administrator. Before a qualified school receives its distribution, it could complete a simple form providing check off boxes to verify the existence of a technology plan and provide answers to a few simple questions which are required to demonstrate progress in meeting the Act's goals.

Tele-Communications, Incorporated

While many of the approaches recommended in the Comments hold promise,[23] there is inadequate information on the record for determining which is the most effective. This issue requires further study by the Commission.

U.S. National Commission on Libraries and Information Science

Reference in Section 254(h)(4) to entity eligibility for participation in Library Services and Construction Act programs is sufficient to ensure bona fide requests for supported telecommunications services. However, given the disparities between different public libraries in different size communities currently offering Internet services, proactive contacts to those public libraries eligible that are eligible to receive supported telecommunications services may be advisable.

United States Telephone Association

A simplified process, such as a check-off box to verify the existence of a technology plan and a few simple questions to demonstrate progress in meeting the goals of the Communications Act could be utilized.


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