SHLB Says O'Rielly E-Rate Self-Construction Attack Could Hurt Competition, Hike Costs
The Schools, Health & Libraries Broadband Coalition disagreed with FCC Commissioner Mike O'Rielly's E-rate letter to Universal Service Administrative Co. seeking help in identifying and eliminating potential "waste" on self-construction projects that overbuild existing networks (see 1702100060). SHLB welcomed O'Rielly's…
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effort to improve the program, but said "criticizing dark and self-provisioned fiber may actually reduce competition and ultimately cost the E-rate program more money." It said FCC regulations require schools and libraries to seek competitive bids to get the lowest possible price for broadband/telecom services. "If that competitive bid process reveals that the lowest cost to a school/library is to use dark fiber or build its own, self-provisioned fiber network, then the school/library should be allowed, indeed encouraged, to do so," SHLB said in a statement Monday. "Applicants should not be forced to select a higher priced bid from the incumbent provider simply because the incumbent was there first. Allowing applicants to choose from a variety of competitive options is a market-based approach that does not pick winners and losers." It said the FCC should adhere to its 2014 E-rate order and shouldn't deny fiber applications that comply with associated rules. O'Rielly noted he dissented from that order.