Coalition Says FCC E-rate Portal Proposal Could Create More Problems

WASHINGTON, December 21, 2021 – The executive director of a broadband coalition for anchor institutions said the Federal Communications Commission’s proposal to force providers to bid for school and library services through a new portal will burden those applicants.

The agency proposed Thursday to force service providers to submit applications through a bidding portal overseen by the Universal Service Administrative Company, which administers the E-rate program that provides broadband subsidies to schools and libraries. The current approach is that libraries and schools announce they are seeking services and service providers would apply directly to those institutions.

By giving USAC the ability to see service provider applications before they go to the institutions, the agency said this would eliminate at least some forms of abuse or fraud, including participants who may misrepresent their certification or circumvent competitive-bidding rules.

But John Windhausen, executive director of the Schools, Health & Libraries Broadband Coalition, said that while he applauds the effort to listen to consumer needs, the portal’s one-size-fits-all approach would ultimately burden E-rate applicants and service providers.

He also claimed that there is not enough evidence to show that a new portal is needed and that it “would add a lot more federal bureaucracy on a program that is running pretty well right now.

“You would have federal employees at USAC trying to make determinations about what’s…in the best interests of the schools or libraries,” said Windhausen, “And we don’t think they’re really qualified to do that.”

Windhausen also sees potential conflict between the new bidding portal and some state laws already governing E-rate bidding. In a scenario in which state law and FCC policy conflict, it is not clear which policy would take precedence.