More funding coming for broadband, which always seems good. This time the FCC has approved $2 billion for wireless access in the schools. According to Bloomberg…

The Federal Communications Commission approved a plan to spend $2 billion to boost wireless Internet connectivity in U.S. schools and libraries during the next two years.

“We’re at a watershed moment,” FCC Chairman Tom Wheeler said during a hearing in Washington today in which the panel voted 3-2 to approve the plan he proposed in April. “Because of what we do today 10 million kids will be connected next year who otherwise wouldn’t. That’s a good days work.”

The move will phase out funding under a program known as E-rate for old technologies like pagers and dial-up phone service in order to subsidize broadband and wireless Internet connections in classrooms and libraries.

I’m interested to hear how this will play out in terms of library testing spectrum to wireless connections to serve unserved areas. I also wonder if someone is setting time and/or money aside to help teachers learn to work with new technologies. Years ago I worked with teachers on developing curriculum that included access to websites. To really adopt the technology, the teachers need time, training and incentive to learn how to use it.

Connected Nation also did a nice summary of the E-Rate Reform

Many important details about the FCC’s action today will only be known upon release of the full Order, which is expected in the coming weeks. The FCC has released a Fact Sheet outlining key aspects of the Order, including:

• Repurposing of previously collected funds under E-rate to inject $1 billion annually in 2015 and 2016 ($2 billion total) to support school and library on-campus Wi-Fi. An array of services and equipment supporting Wi-Fi connectivity across schools and libraries will be eligible for this funding opportunity, including IT equipment that enables Wi-Fi connectivity, managed Wi-Fi services and catching services. This key piece of the reform aims to address a significant gap in Wi- Fi connectivity across schools and libraries. According to FCC estimates, three in five schools in America do not have adequate on-campus Wi-Fi. The FCC estimates that this new funding will help connect 10 million students to better on-campus Wi-Fi in 2015 alone.
• For some applicants, the new Wi-Fi program will have a different discount rate than traditional E-rate. Today, schools and libraries serving the poorest communities across the country receive an E-rate discount of 90% over retail Internet and Wi-Fi connections prices. Moving forward, the discount rate for Wi-Fi services for these institutions will decrease to 85%. Discounts for other applicants in more affluent communities, ranging from 20% to 89%, will remain unchanged.
• The new rules will provide multi-year funding predictability for schools and libraries to tap into this separate Wi-Fi fund. While details are scant, it appears that applicant funding for Wi-Fi services will be capped using a formula based on a student basis, in the case of schools, and on a square footage basis, in the case of libraries. Libraries will be able to receive as much as $2.3 per square foot annually to support Wi-Fi connectivity.
• There will be no change in the annual E-rate cap (currently $2.4 billion) at this time, but a Further Notice of Proposed Rulemaking will solicit comment on adjusting this cap. The FCC’s decision to leave the current cap in place is perhaps the most controversial aspect of today’s action, and it has been criticized from multiple parties advocating for an increase in the overall E-rate fund in order to better meet increasing demand for funding at the nation’s schools and libraries. Chairman Wheeler reiterated a position he voiced as early as February of this year that, while he does not oppose an increase in the program’s cap, the first step has been to focus on a structural reform of the program, such as the one voted for today, that would re-prioritize the goals of the program, and streamline its processes. Only then would the FCC be in a position to assess the overall need for E- rate funding. This assessment will likely be the core debate for continued E-rate reform moving forward.
• Commencement of a multi-year transition of all program funding to broadband by gradually phasing down support for non-broadband, legacy services, such as voice telephony and paging. Currently, the FCC estimates that E-rate invests $1 billion annually in support of legacy services.
• The FCC officially adopted broadband goals for the program, including 100 Mbps per 1000 students in the short run, and 1 Gbps per 1000 students in the longer term. However, rules for funding of broadband services to the school and library remain roughly unchanged. As we have noted previously, this is a significant departure in both substance and emphasis from several proposals debated earlier in the process. The E-rate will still prioritize services that connect schools and libraries to the Internet over Wi-Fi funding through a “safety valve” mechanism. In short, the bulk of the E-rate budget of $2.4 billion will continue to support connections to school and library buildings.
• While broadband connections to schools and libraries will be prioritized, the FCC expects that it will continue to fund Wi-Fi connections within schools and libraries beyond the initial $2 billion allocated for 2015 and 2016. Further funds are expected to fit within the current E-rate cap due to program cost savings stemming from the phase out of legacy services. FCC staff indicated that it expects the transition away from legacy services will free up approximately $300 million in Funding Year 2015, $600 million in 2016, $800 million in 2017, $900 million in 2018, and $950 million in 2019.  Other FCC actions today include providing incentivizes consortia and bulk buying, streamlining the process for multi-year applications, and expediting the processing of small applications.
• E-rate rules now will allow E-rate applicants to purchase goods and services from federally- negotiated General Services Administration prices without having to go through a competitive bidding process.
• The FCC will also increase transparency on how E-rate dollars are spent and prices charged for E-rate services.
• Finally, the Order expands applicant document retention period to ten years and toughens rules for site inspection.

Additionally, the Further Notice will seek comment on the following issues:

• Long-term program funding needs necessary to meet goals and funding targets established in the Order.

• Further steps to facilitate the use of cost-effective consortium-based purchasing.

• Alternative methodologies for allocating support for library Wi-Fi connectivity instead of the per- student and per-square foot approach that the FCC will use in 2015 and 2016.