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E-Rate Central News for the Week
January 10, 2005
In This Week's Issue:
» Wave 11 Funding for FY 2004 - 81% IC Threshold
» Two Important January Deadlines
The E-Rate Central News for the Week is prepared by E-Rate Central. E-Rate Central specializes in providing consulting, compliance, and forms processing services to E-rate applicants and service providers. To learn more about our services, please contact us by phone (516-832-2880) or e-mail.
Wave 11 Funding for FY 2004 - 81% IC Threshold
Wave 11, the first wave of funding commitments for FY 2004 since legislation was signed to temporarily exempt E-rate from the Anti-Deficiency Act ("ADA"), will be released on Tuesday, January 11, 2005. Funding in this wave totaled $510 million for almost 2,700 applicants. Total funding for FY 2004 has now reached $1.59 billion, only about $100 million behind the FY 2003 total at this time last year.

The size of Wave 11, the largest of the funding year, reflects the release of a backlog of commitments that the SLD had built up awaiting a solution to the ADA accounting problem. For the first time since the August freeze, the SLD has resumed funding Internal Connections requests. The threshold for Internal Connections funding, which was at 90% prior to the freeze, was reduced to 81% in this wave. The SLD continues to review Internal Connections requests at all discount levels, presumably on the assumption that funding will ultimately fall to lower levels.

Two Important January Deadlines
Reminder: The following two important E-rate deadlines occur this month:

(1) Form 470: It is already late in the application window to file a Form 470 for FY 2005. If necessary, the last possible day to file a Form 470 is January 20th. Any Form 470 filed after this date will have an Allowable Contract Date after the Form 471 filing deadline of February 17th. Applicants who miss the Form 470 window will have only two options left for filing FY 2005 Form 471 applications. They can apply for discounts on multi-year contracts that were based on valid Form 470s filed in earlier years, or for discounts on services provided under state master contracts that were based on Form 470s filed by their states.

(2) Form 472 (BEAR) or Form 474 (SPI): Unless otherwise extended, the last day to submit invoices for non-recurring services for FY 2003 is January 28th. (For recurring services, the comparable deadline was last October 28th.)

Disclaimer: This newsletter may contain unofficial information on prospective E-rate developments and/or may reflect our own interpretations of E-rate practices and regulations. Such information is provided for planning and guidance purposes only. It is not meant, in any way, to supplant official announcements and instructions provided by either the SLD or the FCC.