New Mexico Governor Seeks Higher E-Rate Discounts
The FCC should extend suspension of the E-rate amortization policy for two more years and increase the discount rate for nonrecurring broadband constructions costs where states provide matching funds, said New Mexico Gov. Susana Martinez (R) in an Aug. 10…
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letter posted Friday. In 2014, the FCC suspended Universal Service Administrative Co.’s policy requiring E-rate applicants to amortize upfront special construction charges over multiple years. Also, the commission increased an applicant’s discount rate up to an additional 10 percent to match state funding. The actions “spurred school districts and states, in partnership with service providers, to invest in fiber build projects that almost certainly would not have been completed in the absence of the Commission’s efforts,” Martinez said. But the upfront, nonrecurring costs of fiber networks are still too high for most school districts, she said. She proposed the FCC provide a 90 percent discount when states provide 10 percent of construction costs: “The proposed changes will provide the time and resources for states and school districts to work with service providers to extend fiber optic networks to schools that need them.”