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E-Rate Funding Freeze in 2012 Raises Concerns about the Future of E-Rate Program Participation


The E-Rate program that many schools depend on, denied E-Rate funding in 2012 for an entire category of applicants. This put many of them in a problematic situation in regard to their technology needs. But it turns out that there is help.

“We had many schools that went into the E-Rate program application process believing that they would absolutely get the discounts based on the criteria. Rejection of their applications could set them back years because technology is changing so rapidly,” said John Mord, owner of Guarantee Business Systems.

The budgetary constraints of these schools, along with the already lengthy process within their system when it comes to technology hardware procurement, required a quick solution.

“We decided to put a technology hardware leasing program in place, so that these schools could fulfill their technology hardware needs without being squeezed budget wise,” Mord stated. “This allows them to stay ahead of the curve when it comes to providing up to date technology hardware (critical) at a comfortable financial commitment level.”

Information on this leasing program can be obtained at:

E-Rate definitions and parameters:
E-Rate is the widely used term for the Schools and Libraries Program of the Universal Service Fund, that’s administered through the Universal Service Administrative Company (USAC) within the direction of the Federal Communications Commission (FCC). The program gives special discounts to aid most schools and libraries in the United States (and U.S. territories) to acquire very affordable telecommunications and access to the internet. It is one of four support programs funded by way of a Universal Service fee charged to companies that offer interstate and/or international telecommunications services.

The Schools and Libraries Program facilitates connectivity - the conduit or pipeline for communications utilizing telecommunications services and/or the Internet. Funding is requested within four categories of service: telecommunications services, Internet access, internal connections, and basic maintenance of internal connections. Reductions in price for support are determined by the level of poverty and the urban/rural status of the population served and range from 20% to 90% of the costs of eligible services.


 e-rate funding
 e-rate program
 technology hardware

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