THE 1st FCC’s DECISION

• Issued May 8, 1997

• Schools and Libraries

  • $2.25B Fund
  • Funding Based on State and Interstate Revenues
  • Sliding Scale of Discounts

• Rural, Insular and High Cost Areas

  • Funding 75% States / 25% Federal
  • “Non-Rural” Telephone Companies

    • Support = Forward-Looking Cost - Benchmark
    • 14 Month Process to Select Proxy Cost Model

  • “Rural” Telephone Companies

    • Continue Present Mechanisms
    • Transition to Forward-Looking Mechanism Beginning in 2001

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