FCC Record, Volume 28, No. 1, Pages 1 to 975, January 2 - January 31, 2013 Page: 64
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Federal Communications Commission
Washington, DC 20554
In the Matter of )
Request for Review of )
Decisions of the )
Universal Service Administrator by )
Consorcio de Escuelas y Bibliotecas )
de Puerto Rico ) File Nos. 327608, et al.
Schools and Libraries Universal Service ) CC Docket No. 02-6
Support Mechanism )
Adopted: January 8, 2013 Released: January 8, 2013
By the Chief, Telecommunications Access Policy Division, Wireline Competition Bureau:
1. In this order, we grant a consolidated appeal filed by Consorcio de Escuelas y Bibliotecas
de Puerto Rico (Consorcio) on behalf of 52 schools and libraries (collectively, the applicants) seeking
review of decisions by the Universal Service Administrative Company (USAC) denying funding under
the E-rate program (more formally known as the schools and libraries universal service support program)
for funding year 2002.' USAC found that 32 of the applicants violated the Commission's competitive
bidding rules by seeking E-rate support for services pursuant to a contract that included a right-of-first-
refusal provision.2 USAC also found that some of the applicants violated the Commission's rules
concerning the use of equipment, eligibility of services, and the availability of funding.3 Upon review of
the record, we find that right-of-first-refusal provisions violate the Commission's competitive bidding
requirements, but that a limited waiver of the relevant competitive bidding rules is warranted in this
'The school and library applicants and the relevant application numbers are identified in Appendices A-C. In this
order, we use the term "appeals" to generally refer to requests for waiver and requests for review of decisions issued
by USAC. Section 54.719(c) of the Commission's rules provides that any person aggrieved by an action taken by a
division of USAC may seek review from the Commission. 47 C.F.R. 54.719(c).
2 See Letter from USAC, Schools and Libraries Division, to Jose Rodriguez, Hispanic Information and
Telecommunications Network, Inc., at Ex. A (dated Nov. 24, 2003) (Funding Commitment Decision Letter
(FCDL)); Letter from Ramsey L. Woodworth and Michelle A. McClure, Counsel to Consorcio de Escuelas y
Bibliotecas de Puerto Rico, to Marlene H. Dortch, Secretary, Federal Communications Commission, CC Docket No.
02-6 (filed Jan. 23, 2004) (Request for Review). See also Appendix A (identifying as Petitioner Group A those
Consorcio members whose applications were denied because of perceived competitive bidding violations).
3 See Request for Review;, Appendix B (identifying as Petitioner Group B those Consorcio members whose
applications were denied because of improper use of equipment); Appendix C (identifying as Petitioner Group C
those Consorcio members whose applications.were denied because of issues concerning eligibility of services or
availability of funding); 47 C.F.R. 54.502, 54.503, 54.505, 54.507, 54.511 (2012). See also 47 C.F.R. 54.504,
54.505, 54.507, 54.511, 54.517 (2002). In its Request for Review, Consorcio asked that the Commission also
address an earlier appeal filed by three of the Petitioners in Group C. See Request for Review at 11. Because the
legal issues are the same as the other applications identified in Group C, we agree that it makes sense to resolve that
appeal through this order, and have therefore included those applications among those listed in Appendix C.
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 28, No. 1, Pages 1 to 975, January 2 - January 31, 2013, book, January 2013; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc171173/m1/79/: accessed July 18, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.