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E-Rate Process
What is E-Rate?
What is the E-Rate Program?
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- Federal (FCC) program that subsidizes telecom purchases made by eligible K-12, public and private parochial schools and libraries (colleges and universities are ineligible).
- Discounts range from 20%-90% and are based on the number of children in the free/reduced lunch program.
- Administered by the Universal Service Administrative Company (USAC) and funded by Universal Service Fund (USF) revenues.
- This year, E-Rate plans to disperse about $4.2B to connect the nation’s schools and libraries.
What is covered under Category 1 and Category 2 funding?
| Category 1 | Category 2 |
Broadband Connectivity
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Wi-Fi within Buildings
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What’s in It for Me?
Pre-Scrubbed and Prioritized E-Rate Leads
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- Dedicated E-Rate Support Team
- Customers with Money to Spend (20%-90%)
- 100% Quota Retirement
Why Windstream?
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- One of the Nation’s largest E-Rate service providers
- Proven track record helping Schools and Libraries
- ILEC and CLEC markets
- Experienced Account Reps
- 25M in annual Revenue in 2021
- Over 1200 E-Rate Customers
- Expect your proposal after the Form 470 posting and a contract to sign on or after the allowable contract date.
School Benefits
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- Schools may see improved test scores by facilitating Internet-based learning applications.
- Schools are able to communicate more effectively with parents regarding student assignments, grades and event updates.
- Schools will connect with administrative offices more efficiently.
- Schools can upgrade to next-generation services that were previously unaffordable. Schools can more effectively guard confidential student information, records and more!
Library Benefits
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- Libraries see increased membership by providing high-speed Internet access. Libraries will be able to create or enhance online card catalogs or reference tools .
- Libraries can enhance inter-library loan programs with lending partners.
- Libraries are able to more quickly communicate with members regarding overdue notices, reminders, library-sponsored events & programs, book availability and more!
Common Sales Terms and Forms
Steps
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- Customer completes Form 470 to officially open the 28 day bidding window
- Customer completes Form 471 at the end of 28 days to declare a winner – this is the formal request for funding.
- Allowable Contract Date (ACD) is the first date a contract can be executed which is 28 days after submitting Form 470
Terms
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- Allowable Contract Date (ACD) is the first date a contract may be executed. It is 28 days after the filing of the 470, and is therefore unique to each form 470. The ACD can be found at the top of the form 470.
- Category 1 services cover Broadband Connectivity and Internet Access services. Voice services have been completely phased out of eligibility.
- Category 2 services are Internal Broadband Connections (Wi-Fi) and Basic Maintenance of those connections. Equipment and services related to delivery of Wi-Fi are covered under this category. NO voice equipment is covered starting in funding year 2015.
- Funding Commitment Decision Letter (FCDL) is the official USAC response to Applicant’s Form 471. The letter advises the amount of funding the Applicant will receive, or denies funding.
- Funding Year (FY) is the period of time during which an Applicant is seeking funding from USAC.
- Service Provider Identification Number or the SPIN number is a unique number assigned to each service provider participating in the USF.
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- Forms
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- Form 470 is the Description of Service Requested and Certification. This form opens the competitive bidding process for services listed on the form or in an RFP. It is important to note that Form 470 MUST be posted on the USAC site for 28 days before signing a contract with a provider.
- Form 471 describes the Services Ordered and Certification. This form serves as the official request for discounts on eligible services.
- Form 486 or the Receipt of Service Confirmation, is filed by the Applicant to notify USAC that service has been installed as requested by the Applicant. Basically, it’s the Applicant’s statement that they received what they ordered from the provider and it’s functioning as it should. USAC verifies Form 486 and moves forward with paying invoices that are received.
K12 Strategists/E-Rate Program managers are non-quota overlays for each region. Their primary goals are to drive revenue and strategic sales for each region, as well as ensure CAF II compliance across our ILEC areas. They are most valuable to you as a sales person when you partner with them, leveraging their E- Rate expertise and data-drive resources to help you optimize short- and long-term K12 opportunities in your market.
The Sales Process – Timeline & Windstream Sales Action Steps
Leads Generation
After a school files the Form 470 on the USAC site, the leads are scrubbed, prioritized and then sent to either Sales or low priority queue.
Note: Leads are still in the 28 day competitive bidding window, so it is critical that qualified leads are assigned and contacted immediately by the rep.
Sales will ONLY be receiving the high priority leads (existing Customers and ILEC and On-Net new logo opportunities). All other leads will be sent to the Low priority queue, that sales may access at their discretion.
Proposal Specifics
The proposal can’t be presented until the 470 has been posted.
Note: If a request for proposal is a part of a Form 470, the sales person must go to the Applicant’s website and download the RFP Application and attach it to a WinForce RFP Case.
Form 470
True or False (circle one): Windstream can write a Form 470 for the Customer as long as the Customer signs it.
Note: Applicants are allowed to hire a Consultant to help them with the E-Rate application and bidding process.
Item 21 data is a Form 471 analysis tool that shows all contract information for E-Rate applicants.
Discount Percentages
Who determines the School’s discount?
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- USAC
On what is the discount calculation based?
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- Based on the number of children in free/reduced lunch program
- Libraries use simple average discount for nearest school district
- Discount ranges from 20-90% on eligible services
- Discounts are calculated by school district rather than individual schools.
- Customers may choose one of the following:
- SPI Method – Customers may choose to have discounts applied directly to the bill
- BEAR Method – Applicant may pay bill in full and receive reimbursement from USAC
- Please Note: Windstream does not calculate the discount – that calculation is made by USAC
CAF II Compliance
Windstream accepted $1.2B in CAF II funding from the FCC to build out underserved ILEC areas. As a condition of accepting the money, Windstream is obligated to bid on every 470 within those CAF II funded areas. There are no exceptions to the bidding requirement.
Lowest Corresponding Price (LCP)
What is Lowest Corresponding Price? The lowest price that a service provider charges to non-residential customers who are similarly situated to a particular school or library for similar services.
Account Rep must place clear notes in PAO: “This is a E-rate customer, please provide LCP”
Core Product Set
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- Dedicated Internet
- Leased Lit Fiber – P2P
- Leased Dark Fiber
- Indefeasible rights of use (IRU’s)
- MPLS, VLS
- WAN VPN
- DyIP (data portion only)
LCP Tool: https://nyrocdssrs01/Reports/Pages/Report.aspx?ItemPath=/Sales/E-Rate+Minimum+Pricing+Report
E-Rate Contracts
The Windstream contract cannot be presented until after the Form 470 has been posted for 28 days, which is known as the Allowable Contract Date.
Must include effective dates between July 1st of current year to June 30th of another year
What is the USAC Addendum? Allows the customer to determine whether they would like to move forward with installation of services, regardless of their funding status (July 1st), or wait until they have officially been awarded funding.
Note: The USAC Addendum must accompany EVERY E-Rate contract.
USAC Addendum: https://windstream.unily.com/documents/preview/120512/USAC-Network-Svcs-Addendum-v070716-pdf
Your Role in Selling E-Rate
Direct the customer to the USAC website
The e-mail address for the E-Rate Team is E-Rate@windstream.com
To find qualified leads, Telesales pre-qualifies all E-Rate leads. If you’ve identified a prospect on your own, check with your Sales Director and WinForce to make sure no one else is currently pursuing the Customer.
When closing an E-Rate deal, when is the earliest the Customer can sign the Windstream contract? On or after the Allowable Contract Date listed on the Form 470
Where do you go to find out how to flag your E-Rate Won Deal in the sales system you used to win the deal?
K12 Strategist / E-Rate Program Manager
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- Jennifer Dawson = E-Rate Staff Manager
- E-RATE@windstream.com
- (402) 436-4466