E-rate New Circuit Reminder

In order for a new circuit to be eligible for funding through the e-rate program, you must file a Form 470 with the Schools and Library Division for competitive bidding for the new circuit.  The Form 470 must be posted for a minimum of 28 days.  After the 470 has been posted for 28 days, you may then make an award to the winning bidder.  This Form 470 filing would be for the e-rate year beginning July 1, 2013.  A new circuit that you would place into service now will not be eligible for e-rate funding for the current e-rate year that is for the time period of July 1, 2012 to June 30, 2013.

In most circumstances it is also helpful to you to have contracts for your circuits to match up with e-rate years.  For example, if you were to enter into a contract now for a new circuit, it would be helpful to you in the future if you were to have a contract end date of June 30, 201X.  “X” being some number from 3 to 0.

The reason this reminder is being sent is our concern that Kan-ed members may be replacing their Kan-ed circuit without meeting the requirements of the e-rate program and then entering into a multiyear contract with a provider for a new circuit, and then filing for e-rate funding on that circuit for the next e-rate year.  This new circuit would not be eligible for e-rate funding if you did not file a Form 470 and post it for 28 days.  The only way to correct this mistake is to file a new 470 and rebid the contract.  Depending upon when you might realize this error, you may not be able to meet the filing deadline that will occur sometime next year.  Another problem may be that you may have entered into a multiyear contract for this circuit.  Cancelation of that multiyear contract may cause early termination fees to be incurred.

If you plan to request e-rate funding on any new circuit, please be sure you meet the requirements of the e-rate program.  Should you have questions regarding this process you may call our toll free e-rate hotline at 866-372-8302.

Jerry Huff JD, MCSE

Director of Kan-ed