On May 7th the Federal Communications Commission (FCC) released its order on Universal Service. This long-awaited decision by the FCC will have a major impact in determining which schools (K-12) and libraries will be eligible for discounts on commercially-available telecommunications service, and how much of a discount they'll receive. The Universal Service discounts apply to both interstate and intrastate services. The May 7 action will provide significant discounts on basic telephone service, advanced telecommunications services, Internet services, and internal connections necessary to enable library users and students to access the information superhighway. Discounts will range from 20-90%, with deeper discounts for libraries and schools in rural, high-cost, and low-income communities. Academic libraries will not be eligible unless their budgets are totally separate from that of their institutions. The discounts will become available on January 1, 1998. Total expenditures for universal service support for schools and libraries is capped at $2.25 billion per year, with a roll-over of undistributed funds into following years of funding authority, if necessary.

Following the FCC's decision, Vice President Al Gore, Jr., Secretary of Education Richard W. Riley, federal lawmakers, and educators told a press conference that adoption of the Commission's Universal Service Plan was "as significant as the education provisions of the GI Bill and the 19th Century establishment of land-grant universities and colleges."

The FCC requires states to establish intrastate discounts at least equal to the discounts on interstate services as a condition of using federal universal service funds for intrastate services. State Librarian Kendall Wiggin said that it appears that the state PUC will move quickly to put the same discount structure in place and bring New Hampshire into compliance with the order. This will make New Hampshire's libraries and schools eligible to apply for the discounts.

The FCC has yet to issue the final rules for implementing this program and as a result some details are still sketchy. For example, it is known that libraries and schools will have to have a telecommunications plan in place before applying, but just what that plan will be is not yet determined. Mr. Wiggin said that the State Library, the Department of Education, and others are working together to ensure that libraries and schools in our state get the maximum benefit from this universal service program. A web site has been set up on Webster [www.state.nh.us/telecom/] in order to provide the information that libraries and schools will need. This site will be updated regularly as information becomes available. Later this summer, the State Library will conduct workshops around the state focusing on the required telecommunication plans.

On June 3, as part of the ongoing effort to keep schools and libraries informed, the State Library cooperated with the state Department of Education and New Hampshire Public Television to sponsor the PBS video conference MAXIMIZING YOUR E-RATE: Making the Most of New Telecommunications Discounts for Schools and Libraries. The video conference was held at six sites around the state and was well attended and provided the attendees with some answers, many more questions, and a sense of the complexity of this program.

According to Mr. Wiggin, there are several important points that we should keep in mind. First, the discount applies to all phone services, voice as well as data. Libraries that have only been able to afford one phone line, may now be able to have additional lines. Second, libraries will have to do some planning and go through an application process, and there is no guarantees that they will get the discount, especially for those libraries in relatively wealthy communities. The application process must be performed annually. Unless Congress should change the law, this Universal Service discount for schools and libraries is expected to continue well into the next century. The question is whether or not 2.5 billion dollars will be enough.

What will the average discount for libraries in New Hampshire be? Since we don't have all the details on how the eligibility factors will be applied we don't have the answer yet. But looking at the relative wealth of the state, Mr. Wiggin does not expect to see many libraries getting really big discounts. If that happens, there are provisions in the FCC order for states to develop their own discount program as long as the discounts are greater than those set by the FCC. Such a program would have to be funded by the state. In discussions with the PUC,

Mr. Wiggin said that the present strategy for now seems to be get the basic federal program in place, see how New Hampshire makes out, and then look at what we might do additionally. Many states have adopted higher discounts, have enacted more far reaching programs to connect schools and libraries to networked information resources. Representatives from education, libraries, rural health care, and state agencies met on April 30 in Concord at the invitation of the Governor to discuss what steps New Hampshire needs to take to get the most benefit out of the Universal Service. In addition to helping libraries and schools with the federal program, Mr. Wiggin said that this group will be expanded to look at the bigger issue of a state program. In the meantime, keep an eye on the web site and on your mail for additional information.