FCC Opening the E-Rate to "Dark Fiber" Raises Concerns

The Federal Communications Commission (FCC), on September 23, announced new rules for its highly successful E-rate program. The E-rate provides subsidies to schools and libraries for Internet connections.

The E-Rate has been a model of success. It allows schools and libraries to purchase the telecommunications services they need through a competitive bidding process, and to use E-rate subsidies to offset the costs of purchased services. The program has achieved remarkable success, with 97 percent of schools and nearly all public libraries with basic Internet access.

But we have a long way to go. According to a recent FCC survey, 78 percent of E-rate recipients say they need faster connections to meet the speed and capacity demands of their students, teachers, and library patrons.

Therefore, CWA has been a strong supporter of strengthening the E-Rate program. We have encouraged the FCC to build on its success as one way to realize the National Broadband Plan's goal to connect community anchor institutions with 1 gigabyte of capacity.

But we have concerns that one of the FCC's new E-rate rules will risk progress toward that goal. Specifically, the FCC just opened the door to allow schools and libraries to use subsidies to lease "dark fiber." Dark fiber is not a telecommunications service. Rather, it is essentially just a dumb pipe and does not connect students or the public to the Internet. Schools and libraries that choose to lease "dark fiber" because it appears to be cheaper than buying a complete service will have to add their own electronics and network management capability as an additional expense. Schools and libraries will have to invest in continuous upgrade of the network or get locked in to old technology. Of particular concern, schools and libraries would have to train and employ their own workforce to operate, manage, repair, and upgrade these networks.

CWA is concerned that the "dark fiber" option will provide penny wise but pound foolish.

Other FCC E-rate rule changes are more positive. The FCC adopted CWA's recommendation to index the E-rate funding to inflation. The E-rate has been capped at $2.25 billion since 1997, during which time inflation has driven costs up 30 percent, equivalent to a loss of $675 million in purchasing power.

The FCC is also opening the door to "School Spots" - giving schools the option to provide Internet access to the local community after schools go home. And the FCC is launching a pilot program that supports wireless connectivity for mobile learning devices.

As the FCC and other government agencies move forward with programs to support 1 gigabyte to anchor institutions, they should focus on public-private partnerships staffed by career, skilled workers who have the expertise to service and continuously upgrade the network