E-Rate Changes for Category Two


E-Rate Product Eligibility Changes for 2015

The E-Rate Modernization Order, the Commission has made the following changes to the eligible services framework of the E-Rate program for 2015-2016.

Category Two

Eligible Managed Internal Broadband Services

  • Services provided by a third party for the operation, management, and monitoring of eligible broadband internal connections components are eligible managed internal broadband services (e.g., managed Wi-Fi).
  • E-rate support is limited to eligible expenses or portions of expenses that directly support and are necessary for the broadband connectivity within schools and libraries. Eligible expenses include the management and operation of the LAN/WLAN, including installation, activation and initial configuration of eligible components, and on- site training on the use of eligible equipment.
  • In some managed services models, the third party manager owns and installs the equipment and school and library applicants lease the equipment as part of the managed services contract. In other cases, the school or library may own the equipment, but have a third party manage it for them.

Basic Maintenance of Eligible Broadband Internal Connections Components

E-Rate support is available for basic maintenance and technical support appropriate to maintain reliable operation when provided for an eligible broadband internal connections component.

The following basic maintenance services are eligible:

  • Repair and upkeep of eligible hardware
  • Wire and cable maintenance
  • Configuration changes
  • Basic technical support including online and telephone based technical support
  • Software upgrades and patches including bug fixes and security patches

Eligibility limitations for Category Two components and services:

Managed internal broadband services – The equipment eligible for support as part of a managed internal broadband service may include only equipment listed as a broadband internal connections component above. Upfront charges that are part of a managed service contract are eligible for E-rate support except to the extent that the upfront charges are for any ineligible internal connections components (e.g., servers other than those that are necessary to provide caching) which, if included in the contract, must be cost allocated out of any funding request.

Basic Maintenance – Basic maintenance is eligible for support only if it is a component of a maintenance agreement or contract for eligible broadband internal connections components. The agreement or contract must specifically identify the eligible components covered, including product name, model number, and location. Support for basic maintenance will be paid for the actual work performed under the agreement or contract. Basic maintenance does not include:

  • Services that maintain ineligible equipment
  • Upfront estimates that cover the full cost of every piece of eligible equipment
  • Services that enhance the utility of equipment beyond the transport of information, or diagnostic services in excess of those necessary to maintain the equipment’s ability to transport information
  • Network management services, including 24-hour network monitoring On-site technical support (i.e., contractor duty station at the applicant site) unless applicants present sufficient evidence of cost-effectiveness
  • Unbundled warranties

The E-rate program provides funding for voice, video and data networking equipment.  It also provides funding for telecommunications services and maintenance which supports communications and Internet access in the classroom. E-rate funding supports equipment and services provided by most major communications manufacturers and service providers.

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Applying for E-rate Support, the Surazal Systems’ Service Provider Identification Number (SPIN) is 143021108. When selecting Surazal as your provider, make sure to enter this number on Form 471.