You asked for (1) the status of the Connecticut Education Network's wiring project and (2) a copy of the section of the 1996 federal Telecommunications Act that established the Universal Service Fund (also known as “e-rate”) that helps pay for discounted telecommunications service for schools and libraries with the funding language highlighted.

CONNECTICUT EDUCATION NETWORK STATUS

The Connecticut Education Network (CEN) provides schools, libraries, and higher education institutions with high-speed Internet access, among other things. According to Rob Vietzke, CEN's co-program manager and network architect, connections were available in all K-12 school districts at the start of the 2005-06 school year.

A complete list of CEN connection sites appears in Table 1 below. The abbreviation “CTC SO” means community-technical college system office. According to Vietzke, the CTCs are currently steering all traffic through their system offices. A blank means the connection is not active for various local reasons not attributable to CEN. MAN means “municipal area network.” This applies to certain libraries that are part of networks set-up by municipalities so CEN does not have to build a separate connection. CEN will be issuing a full report on its status later this month, before the start of the 2006 legislative session.

E-RATE

E-rate is the common name for the Universal Service Fund for Schools and Libraries, established by § 254 of the federal Telecommunications Act of 1996 (copy attached). By law, all interstate telecommunications carriers pay contributions into the Universal Fund. The Federal Communications Commission (FCC) directs payment from this central fund to support the schools and libraries program, as well as three other universal service programs.

Telecommunications companies required to contribute to the fund may recover the contributions directly from customers through a line-item charge on telephone bills. The FCC does not require this surcharge. Each company makes a business decision about whether and how to assess customers to recover its Universal Service Fund costs.

According to Rob Vietzke, CEN has received $5.5 million per year from the E-rate program in each of the last two years and expects about the same contribution for 2006. The E-rate program provides 55% of the total cost of CEN's K-12 school program.

TABLE 1: CONNECTICUT EDUCATION NETWORK

Sites with Optical Connectivity

(1/1/06)

Table 1: Continued

Table 1: Continued

Table 1: Continued

Table 1: Continued

Table 1: Continued

Table 1: Continued

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Table 1: Continued

Table 1: Continued

Table 1: Continued

Source: Connecticut Education Network

FEDERAL TELECOMMUNICATIONS ACT OF 1996

SEC. 254. UNIVERSAL SERVICE.

(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE REQUIREMENTS-

`(1) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE- Within

one month after the date of enactment of the Telecommunications

Act of 1996, the Commission shall institute and refer to a

Federal-State Joint Board under section 410(c) a proceeding to

recommend changes to any of its regulations in order to

implement sections 214(e) and this section, including the

definition of the services that are supported by Federal

universal service support mechanisms and a specific timetable

for completion of such recommendations. In addition to the

members of the Joint Board required under section 410(c), one

member of such Joint Board shall be a State-appointed utility

consumer advocate nominated by a national organization of State

utility consumer advocates. The Joint Board shall, after notice

and opportunity for public comment, make its recommendations to

the Commission 9 months after the date of enactment of the

Telecommunications Act of 1996.

`(2) COMMISSION ACTION- The Commission shall initiate a

single proceeding to implement the recommendations from the

Joint Board required by paragraph (1) and shall complete such

proceeding within 15 months after the date of enactment of the

Telecommunications Act of 1996. The rules established by such

proceeding shall include a definition of the services that are

supported by Federal universal service support mechanisms and a

specific timetable for implementation. Thereafter, the

Commission shall complete any proceeding to implement

subsequent recommendations from any Joint Board on universal

service within one year after receiving such recommendations.

`(b) UNIVERSAL SERVICE PRINCIPLES- The Joint Board and the

Commission shall base policies for the preservation and advancement

of universal service on the following principles:

`(1) QUALITY AND RATES- Quality services should be available

at just, reasonable, and affordable rates.

`(2) ACCESS TO ADVANCED SERVICES- Access to advanced

telecommunications and information services should be provided

in all regions of the Nation.

`(3) ACCESS IN RURAL AND HIGH COST AREAS- Consumers in all

regions of the Nation, including low-income consumers and those

in rural, insular, and high cost areas, should have access to

telecommunications and information services, including

interexchange services and advanced telecommunications and

information services, that are reasonably comparable to those

services provided in urban areas and that are available at

rates that are reasonably comparable to rates charged for

similar services in urban areas.

`(4) EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS- All

providers of telecommunications services should make an

equitable and nondiscriminatory contribution to the

preservation and advancement of universal service.

`(5) SPECIFIC AND PREDICTABLE SUPPORT MECHANISMS- There

should be specific, predictable and sufficient Federal and

State mechanisms to preserve and advance universal service.

`(6) ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES FOR

SCHOOLS, HEALTH CARE, AND LIBRARIES- Elementary and secondary

schools and classrooms, health care providers, and libraries

should have access to advanced telecommunications services as

described in subsection (h).

`(7) ADDITIONAL PRINCIPLES- Such other principles as the

Joint Board and the Commission determine are necessary and

appropriate for the protection of the public interest,

convenience, and necessity and are consistent with this Act.

`(c) DEFINITION-

`(1) IN GENERAL- Universal service is an evolving level of

telecommunications services that the Commission shall establish

periodically under this section, taking into account advances

in telecommunications and information technologies and

services. The Joint Board in recommending, and the Commission

in establishing, the definition of the services that are

supported by Federal universal service support mechanisms shall

consider the extent to which such telecommunications services--

`(A) are essential to education, public health, or public

safety;

`(B) have, through the operation of market choices by

customers, been subscribed to by a substantial majority of

residential customers;

`(C) are being deployed in public telecommunications

networks by telecommunications carriers; and

`(D) are consistent with the public interest,

convenience, and necessity.

`(2) ALTERATIONS AND MODIFICATIONS- The Joint Board may, from

time to time, recommend to the Commission modifications in the

definition of the services that are supported by Federal

universal service support mechanisms.

`(3) SPECIAL SERVICES- In addition to the services included

in the definition of universal service under paragraph (1), the

Commission may designate additional services for such support

mechanisms for schools, libraries, and health care providers

for the purposes of subsection (h).

`(d) TELECOMMUNICATIONS CARRIER CONTRIBUTION- Every

telecommunications carrier that provides interstate

telecommunications services shall contribute, on an equitable and

nondiscriminatory basis, to the specific, predictable, and

sufficient mechanisms established by the Commission to preserve and

advance universal service. The Commission may exempt a carrier or

class of carriers from this requirement if the carrier's

telecommunications activities are limited to such an extent that

the level of such carrier's contribution to the preservation and

advancement of universal service would be de minimis. Any other

provider of interstate telecommunications may be required to

contribute to the preservation and advancement of universal service

if the public interest so requires.

`(e) UNIVERSAL SERVICE SUPPORT- After the date on which

Commission regulations implementing this section take effect, only

an eligible telecommunications carrier designated under section

214(e) shall be eligible to receive specific Federal universal

service support. A carrier that receives such support shall use

that support only for the provision, maintenance, and upgrading of

facilities and services for which the support is intended. Any

such support should be explicit and sufficient to achieve the

purposes of this section.

`(f) STATE AUTHORITY- A State may adopt regulations not

inconsistent with the Commission's rules to preserve and advance

universal service. Every telecommunications carrier that provides

intrastate telecommunications services shall contribute, on an

equitable and nondiscriminatory basis, in a manner determined by

the State to the preservation and advancement of universal service

in that State. A State may adopt regulations to provide for

additional definitions and standards to preserve and advance

universal service within that State only to the extent that such

regulations adopt additional specific, predictable, and sufficient

mechanisms to support such definitions or standards that do not

rely on or burden Federal universal service support mechanisms.

`(g) INTEREXCHANGE AND INTERSTATE SERVICES- Within 6 months after

the date of enactment of the Telecommunications Act of 1996, the

Commission shall adopt rules to require that the rates charged by

providers of interexchange telecommunications services to

subscribers in rural and high cost areas shall be no higher than

the rates charged by each such provider to its subscribers in urban

areas. Such rules shall also require that a provider of interstate

interexchange telecommunications services shall provide such

services to its subscribers in each State at rates no higher than

the rates charged to its subscribers in any other State.

`(h) TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS-

`(1) IN GENERAL-

`(A) HEALTH CARE PROVIDERS FOR RURAL AREAS- A

telecommunications carrier shall, upon receiving a bona

fide request, provide telecommunications services which are

necessary for the provision of health care services in a

State, including instruction relating to such services, to

any public or nonprofit health care provider that serves

persons who reside in rural areas in that State at rates

that are reasonably comparable to rates charged for similar

services in urban areas in that State. A telecommunications

carrier providing service under this paragraph shall be

entitled to have an amount equal to the difference, if any,

between the rates for services provided to health care

providers for rural areas in a State and the rates for

similar services provided to other customers in comparable

rural areas in that State treated as a service obligation

as a part of its obligation to participate in the

mechanisms to preserve and advance universal service.

`(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.

`(2) ADVANCED SERVICES- The Commission shall establish

competitively neutral rules--

`(A) to enhance, to the extent technically feasible and

economically reasonable, access to advanced

telecommunications and information services for all public

and nonprofit elementary and secondary school classrooms,

health care providers, and libraries; and

`(B) to define the circumstances under which a

telecommunications carrier may be required to connect its

network to such public institutional telecommunications

users.

`(3) TERMS AND CONDITIONS- Telecommunications services and

network capacity provided to a public institutional

telecommunications user under this subsection may not be sold,

resold, or otherwise transferred by such user in consideration

for money or any other thing of value.

`(4) ELIGIBILITY OF USERS- No entity listed in this

subsection shall be entitled to preferential rates or treatment

as required by this subsection, if such entity operates as a

for-profit business, is a school described in paragraph (5)(A)

with an endowment of more than $50,000,000, or is a library not

eligible for participation in State-based plans for funds under

title III of the Library Services and Construction Act (20

U.S.C. 335c et seq.).

`(5) DEFINITIONS- For purposes of this subsection:

`(A) ELEMENTARY AND SECONDARY SCHOOLS- The term

`elementary and secondary schools' means elementary schools

and secondary schools, as defined in paragraphs (14) and

(25), respectively, of section 14101 of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 8801).

`(B) HEALTH CARE PROVIDER- The term `health care

provider' means--

`(i) post-secondary educational institutions offering

health care instruction, teaching hospitals, and

medical schools;

`(ii) community health centers or health centers

providing health care to migrants;

`(iii) local health departments or agencies;

`(iv) community mental health centers;

`(v) not-for-profit hospitals;

`(vi) rural health clinics; and

`(vii) consortia of health care providers consisting

of one or more entities described in clauses (i)

through (vi).

`(C) PUBLIC INSTITUTIONAL TELECOMMUNICATIONS USER- The

term `public institutional telecommunications user' means

an elementary or secondary school, a library, or a health

care provider as those terms are defined in this paragraph.

`(i) CONSUMER PROTECTION- The Commission and the States should

ensure that universal service is available at rates that are just,

reasonable, and affordable.

`(j) LIFELINE ASSISTANCE- Nothing in this section shall affect

the collection, distribution, or administration of the Lifeline

Assistance Program provided for by the Commission under regulations

set forth in section 69.117 of title 47, Code of Federal

Regulations, and other related sections of such title.

`(k) SUBSIDY OF COMPETITIVE SERVICES PROHIBITED- A

telecommunications carrier may not use services that are not

competitive to subsidize services that are subject to competition.

The Commission, with respect to interstate services, and the

States, with respect to intrastate services, shall establish any

necessary cost allocation rules, accounting safeguards, and

guidelines to ensure that services included in the definition of

universal service bear no more than a reasonable share of the joint

and common costs of facilities used to provide those services.

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