OK, readers, here is what the FCC says about who currently pays for the e-rate program, and how (at FCC.gov).

Note: the complete FCC.gov posting also explains other details, such as the fact that there is currently a cap on e-rate funding, and that while the cap has been increased since the program’s (law’s) implementation, demand for e-rate funds for qualified recipients has always exceeded the funding.

Who Pays for the E-Rate Program?

Some consumers may notice a “Universal Service” line item on their telephone bills. This line item appears when a company chooses to recover its USF contributions directly from its customers by billing them this charge. The FCC does not require this charge to be passed on to customers. Each company makes a business decision about whether and how to assess charges to recover its universal service costs. These charges usually appear as a percentage of the consumer’s phone bill. Companies that choose to collect universal service fees from their customers cannot collect an amount that exceeds their contribution to the USF. They also cannot collect any fees from a Lifeline program participant.

What I take from this is that the commercial or private consumer of telecommunications services pays for the erate, OR the company / investors do, if the e-rate is not a “pass-on” listed on the services bill. The FCC states that the Universal Service line item is generally a small fraction of the overall consumer bill.

What I would like advocates of increased e-rate funding to do, is to be aware and take ownership of the fact that they are advocating a tax increase and an inflationary proposition, when they advocate e-rate funding increases.

I am not saying the services provided by the Universal Service levy are not worthy. I simply get the idea that often people think “someone else” is paying for the government programs like the e-rate.

So, next time you read your cable or phone bill, don’t complain if it’s higher than you wish. Feel righteous – you are helping the wonderful e-rate program. Tell your friends they are, too. and encourage them to look forward to incrementally higher telecommunications bills … If this remains the mechanism for funding the Universal Services program.

My next post will be… Are there other ways to fund this program?

By the way, though my Blog title is “with a Montessori twist”, I can’t guarantee a Montessori angle on every topic. However, I will pose one question… Will Montessori schools in the future tend to use more, less, or about the same internet service as their non-Montessori school counterparts, on a per child and per staff member basis? what do you think? What does that mean for the e-rate, if anything?

Best wishes, James