Arizona Universal Service Support For

Schools and Libraries

What is the E-rate Broadband Special Construction Project Matching Fund Program?

The E-rate Broadband Special Construction Project Matching Fund Program was established on March 22, 2017 in Decision No. 76018 for the purpose of providing state matching funds for special construction projects involving the deployment of broadband to schools and public libraries in largely rural areas of Arizona so that Arizona schools and public libraries may obtain federal matching funds under the Federal Communications Commission (FCC) Universal Service Fund's Schools and Libraries Program. Article 12 - Part B of the Arizona Administrative Code contains the rules that the Arizona Corporation Commission (ACC) uses to administer and implement the AUSF - E-rate Broadband Special Construction Project Matching Fund Program.

How can the E-rate Broadband Special Construction Project Matching Fund Program help schools and public libraries?

The E-rate Broadband Special Construction Project Matching Fund Program can help qualifying schools and public libraries obtain state matching funds, for a limited period of time, to help fund the necessary broadband facilities to obtain broadband connectivity. Under the FCC's E-rate Modernization Orders, released in 2014, qualifying schools and public libraries are able to obtain for a limited period of time, federal matching funds for broadband construction projects up to a certain amount, but only if state funds are provided.

How can schools and public libraries receive funds from the E-rate Broadband Special Construction Project Matching Fund Program?

Schools and public libraries interested in applying to receive state matching funds from the E-rate Broadband Special Construction Project Matching Fund Program would file a request with the Arizona Department of Education.

How is the E-rate Broadband Special Construction Project Matching Fund Program funded?

One-half of the E-rate Broadband Special Construction Project Matching Fund Program funding requirement is collected through a surcharge paid by providers of basic local exchange service, wireless service, paging service and other Commercial Mobile Radio Service providers that interconnect with the public switched network. These entities are known as Category One providers. The second half of the E-rate Broadband Special Construction Project Matching Fund Program funding requirement is collected from providers of intrastate toll service. These entities are known as Category Two providers.

E-rate Broadband Special Construction Project Matching Fund Program rates approved by Decision No. 76159

Category One providers:

• $0.117032 per access line
• $1.170321 per interconnecting trunk line

Category Two providers:

• 3.0735 percent of intrastate toll revenues

Solix, Inc. (Solix) administers the fund on behalf of the ACC including the annual revenue requirement and assessment rates, collections, and disbursements. If your company is required to begin collecting and remitting AUSF fees, please contact Michael Tamburino of Solix at (973) 581-6714 to obtain the correct forms.