This from eRate central, a very nice summary of the recent order, note web 
hosting is still OK. Note also #5

Jim

New FCC E-Rate Order

Last Thursday, in an open meeting, the FCC approved a much-anticipated report 
and order for an "upgraded and modernized" E-rate program. As of this past 
weekend, the full report and order had not been released (presumably because of 
last minute fine-tuning), so many of the details of the new rules are not yet 
known. Based on the staff presentation at the FCC meeting, comments by the 
Commissioners, and a short News Release, the following is a brief outline of 
the major changes expected for FY 2011, and some notes on their implications. 
Additional information should become available with the order's release 
(hopefully early this week) and at the SLD's first fall training workshop on 
Thursday.

Applicants will have the option of leasing fiber optic transmission services 
from any provider, including non-profit and government agencies, and utility 
companies, as long as it is the most cost-effective solution.
Note: The order may include some restrictions on this broadened eligibility, 
such as limitations on the costs of new installations.
Community use of school Internet facilities when school is not in session will 
be permitted.
Note: This provision is simply a permanent extension of the current waiver of 
existing E-rate rules to permit community use of school facilities during 
off-hours.
Internet services in residential locations that serve "unique populations" will 
now be eligible.
Note: This will extend E-rate coverage to dorm facilities in special needs 
schools.
Proposals will be sought for a limited pilot program providing off-campus 
wireless connectivity for students.
Note: This will likely be a competitive grant-like program. Much of the 
discussion has focused on e-books and interactive learning. A U.S. Department 
of Education proposal, if adopted, would mean pilot funding of $100M, $120M, 
and $140M over a three year period.
The cap on E-rate funding, currently set at $2.25B per year, would be indexed 
to inflation.
Note: The inflation adjustment for FY 2011 would increase the cap by 1%, up 
$22.5M.
The technology plan requirements for Priority 1 services will be eliminated.
Note: The initial proposal would have eliminated P1 tech plans only for 
applicants subject to state or local tech planning requirements. Based on 
several comments received, the FCC has apparently eliminated the P1 tech plan 
requirement altogether. Approved tech plans would still be required for 
Priority 2 services.
The FCC has codified its requirements for open and fair bidding processes. In 
particular, E-rate gift rules parallel those of federal agencies.
Note: A summary of federal rules for Gifts from Outside Sources is available 
online.
The FCC adopted the Eligible Services List for 2011.
Note: The new ESL reinstates dark fiber as an eligible service and retains the 
eligibility of Web hosting. Adoption of the 2011 ESL is a condition for opening 
the application window for FY 2011.
Based on information released to date, the new order apparently does not, at 
least in the short-term, implement other NPRM-proposals such as changes to the 
discount rate matrix or Internal Connections eligibility. Form 470/471 and CIPA 
changes were not mentioned (but are expected), nor was any indication of rules 
governing the disposal of obsolete equipment.


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