1. FCC Third Order
Effective FY 2005

2. FCC is seeking comment on all of the following areas:
Internal Connections Funding
Eligible Services List
Rural Issues

3. Internal Connections Funding
Will be limiting internal connection funding to twice within a 5 year period.
Discounts on basic maintenance excepted.
No longer can school/libraries transfer equipment purchased with E-rate discounts for 3 years.
Exception: temporary or permanent closing school.

4. Eligible Services List
USAC required to submit by June 30 of each year a draft of updated list for following funding year.

5. Rural Issues
Seeking comment on situation with only one service provider.
Should bright line rules imposing amount of discounts that could be available to these locations?
Definition of Rural Area
Seeking comment on what definition should be. Based on RUCA or as non-urbanized areas specified by Census Bureau.
RUCA is rural Urban Commuting Area.

6. Unused E-rate Funds
Will be rolled over to FY 2003 and into future years.
Means unused funds will lower internal connections to 70% threshold.