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FCC OK's $2.25 Billion to Wire Schools

Controversial "e-rate" funding helps poor, rural areas

By Niala Boodhoo, PCWorld   

Still, it remains to be seen whether the controversial "e-rate" program, which gives poor and rural schools a discount for Internet connection, will survive amid congressional criticism and judicial scrutiny.

"A win is a win," says James Clyburn (D-South Carolina), chair of the Congressional Black Caucus. With nearly a dozen members of the caucus, Clyburn made a rare congressional appearance before the commission in support of the program.

The "e-rate" program targets the 61 percent of poor or rural classrooms that remain unwired for Internet access, as well as libraries. In contrast, 51 percent of classrooms from wealthier or suburban schools are wired. Schools and libraries applying to the program get discounts of 20 to 90 percent on telecommunications services, including Web access. Last year, 80,000 schools and libraries were wired at the e-rate, reaching 38 million school children.

The additional funding should provide 40 million more American schoolchildren with Web access, says William Kennard, FCC chair.

New Funds, Not New Tax?

The program's funding comes from an existing federal tax on long-distance calls, and some members of Congress have argued that in creating the program, the FCC administered its own tax, overstepping its bounds. Commissioners who support the e-rate argue that the agency is simply fulfilling its "universal access" mandate as legislated by the Telecommunications Act of 1996.

Kennard has repeatedly said the extra funding will not increase consumer phone bills because its costs are offset by FCC-mandated price reductions that take effect July 1.

Commissioners Michael Powell and Harold Furchtgott-Roth voted against the measure, which passed by a 3-2 vote.

"I feel as if we're driving fast on a dark road with no headlights, and we keep pressing hard on the accelerator," says Powell, who added that he was "uncomfortable with the program's structure" and preferred to keep the funding at $1.7 billion, last year's level.

"The majority of the FCC is taking its marching orders from Al Gore and the White House. They want Gore to look good for the campaign," says Ken Johnson, a spokesperson for Representative Billy Tauzin (R-Louisiana), who has been outspoken in his disapproval of the program.

"The fact of the matter is, this is another illegal phone tax increase,"says Johnson, who adds that Tauzin remains committed to the funding Internet access to schools and libraries through legislative action in Congress.