FCDL Comment:
DR1:As explained in the Second E-rate Modernization Order, E-rate applicants may request E-rate support for a self-provisioned network (i.e., a network that is constructed for, and thereafter owned, maintained, and operated by, the applicant) when self-provisioning a network, or a portion of a network, is the most cost-effective option for the applicant’s connectivity needs. Applicants considering requesting E-rate support for a self-provisioned network must request competitive bids for both a self-provisioned network and services provided over third party networks, and compare all responsive bids (see 54 C.F.R. § 54.503(c)(iv)). E-rate applicants may only receive E-rate support for eligible services provided to eligible entities for eligible purposes (see 47 C.F.R. §§ 54.501, 54.502, 54.504(a)(1)(v)). Further, E-rate applicants may not resell services or products purchased with E-rate discounts (see 47 C.F.R. § 54.513(a)). Because of these rules, self-provisioned networks must be completely owned and exclusively used by E-rate eligible entities (which may include E-rate eligible members of an identified Consortium), and cannot be used and/or owned by other ineligible entities. During review of this funding request, it was determined that this self-provisioned network was not going to be constructed for the applicant’s exclusive use, and that an ineligible third party would own and/or use this network. Therefore, funding for this FRN is denied.