Parties Weigh in on Cox Petition to Restrict Support for School-owned Broadband Networks

On April 29, several entities filed comments on Cox’s Petition for Reconsideration of the FCC’s December E-rate Order.  That Order provided new support for schools and libraries to “self-provision,” or build their own broadband networks when doing so would be more cost effective than paying for broadband service offered local service providers.  As we reported earlier, Cox had asked for additional restrictions on E-rate support for self-provisioning, including (1) a $200 million annual cap; (2) no matching for state funding; and (3) an obligation to include ongoing maintenance in the required cost effectiveness analysis.  Commenters were split on the proposal.  The Schools, Health & Libraries Broadband (SHLB) Coalition and the American Library Association opposed additional rules, arguing that current rules are sufficient, that new restrictions would “remove a valuable competitive option,” and that competitive bidding requirements already ask applicants to consider the total cost of self-provisioning over time.  CenturyLink and USTelecom asked the FCC to grant Cox’s petition, contending that too much funding for self-provisioning will lead to waste in areas where schools and libraries have access to commercial broadband services, and stating that “publicly operated broadband systems have a poor track record for both cost and performance.”