The FCC wants to clarify the kinds of Internet services that schools and libraries can receive from the agency's "E-Rate" program. Officially known as the "Schools and Libraries Program," E-Rate funds cover much of the costs of providing telecommunications and Internet access for public school students, library patrons, and school and library employees. The money comes from the FCC's Universal Service Fund (USF).

The new pleading cycle, opened yesterday by the FCC, seeks public comment on what kind of services and equipment should remain on E-Rates' "eligible services list," which currently includes everything from phone jacks to firewalls.

The July 21st notice emphasizes that the proceeding "is limited to determining what services are eligible under the Commission's current rules; it is not intended to be a vehicle for changing any eligibility rules." But the cycle begins as an educational services vendor and a school are contesting recent FCC decisions limiting their access to the E-Rate program.

• On July 19th the FCC granted a petition for review to Henkels & McCoy, a vendor providing computer equipment and services to the school district of Little Rock, Arkansas. The FCCs Universal Service Administrative Company (USAC) ruled in September 2005 that Henkels had billed the USF for equipment not covered by E-Rate, including cable TV tuners, training software, and teacher training. The decision reduced Henkels compensation from the FCC by $178,326.20.

  The FCC has asked USAC to reconsider their ruling. "We question some of USAC's findings regarding Henkels'  descriptions of the products and services it invoiced and find that USAC could have conducted a more detailed inquiry to determine whether the products or services were eligible," the Commission said.

• On the same day the FCC also permitted the school district of Jennings County, Indiana, to appeal the USACs decision to deny them access to E-Rate. The USAC ruled that Jennings did not respond to the agency's attempt to review whether the school district had the money to pay for Internet and telecom services not covered by the program.

  The FCC has allowed Jennings to reapply for E-Rate money, as long as it cooperates with the USAC. "We expect Jennings County to provide USAC, in a timely manner, with the information that USAC may request," the agency said. "If USAC finds that the three Jennings County applications at issue here were filed consistent with E-rate program rules, it should grant them."

The public has until August 4th to comment on the E-Rate service list, and until August 14th to reply to comments.