O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e E d w a r d J . M a r k e y U n i t e d S t a t e s S e n a t e 2 5 5 D i r k s e n S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r M a r k e y : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e F - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F i i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d " t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n t i n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o n d e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n d p r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r . T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f F - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s . F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON April 3,2018 The Honorable Al Franken United States Senate 309 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Franken: Thank you for your letter in response to the Wireline Competition Bureau's Public Notice regarding the E-Rate program's category two budgets. Your views are important and will be considered as the Bureau prepares its report for the Commission. In 2014, the Commission adopted five-year budgets for schools and libraries purchasing category two services, including the services and equipment needed for Wi-Fi in classrooms. This rule replaced the old "two in five" rule, which made planning for category two services and equipment difficult for many schools and libraries. But this rule change was temporary-it went into effect in funding year 2015 and will sunset in funding year 2020. To help the Commission decide whether to renew this approach, the Commission directed the Bureau to monitor and provide a report on category two applicant budgets using data gathered in funding years 2015 through 2018. The Bureau's report to the Commission is due before the filing window for funding year 2019 opens next year. In preparation for its report, the Bureau released the Public Notice referenced in your letter. The Public Notice sought comment from applicants, service providers, and other interested parties about how applicants have used their category two budgets, and the percentage of category two services purchased by applicants that were or will be covered by the budgets. The Bureau also sought data and feedback on how the budgets impact different types of E-Rate applicants, such as those in rural or remote geographies or those with unique student populations. Finally, the Bureau sought general comment on the administration of the budgets. The comment cycle for the Public Notice has closed and Bureau staff is carefully reviewing the submissions. The Bureau will take into consideration the issues and concerns presented by all stakeholders. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. Sincerely, V' QAJ AjitV.Pai O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e M a g g i e H a s s a n U n i t e d S t a t e s S e n a t e B 8 5 R u s s e l l S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r H a s s a n : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e E - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F i i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d " t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n t i n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o n d e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n d p r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r . T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f E - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s . F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . S i n c e r e l y , A j i t V . P a i OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON April 3, 2018 The Honorable Ron Wyden United States Senate 221 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Wyden: Thank you for your letter in response to the Wireline Competition Bureau's Public Notice regarding the E-Rate program's category two budgets. Your views are important and will be considered as the Bureau prepares its report for the Commission. In 2014, the Commission adopted five-year budgets for schools and libraries purchasing category two services, including the services and equipment needed for Wi-Fi in classrooms. This rule replaced the old "two in five" rule, which made planning for category two services and equipment difficult for many schools and libraries. But this rule change was temporary-it went into effect in funding year 2015 and will sunset in funding year 2020. To help the Commission decide whether to renew this approach, the Commission directed the Bureau to monitor and provide a report on category two applicant budgets using data gathered in funding years 2015 through 2018. The Bureau's report to the Commission is due before the filing window for funding year 2019 opens next year. In preparation for its report, the Bureau released the Public Notice referenced in your letter. The Public Notice sought comment from applicants, service providers, and other interested parties about how applicants have used their category two budgets, and the percentage of category two services purchased by applicants that were or will be covered by the budgets. The Bureau also sought data and feedback on how the budgets impact different types of E-Rate applicants, such as those in rural or remote geographies or those with unique student populations. Finally, the Bureau sought general comment on the administration of the budgets. The comment cycle for the Public Notice has closed and Bureau staff is carefully reviewing the submissions. The Bureau will take into consideration the issues and concerns presented by all stakeholders, I appreciate your interest in this matter. Please let me know if I can be of any further assistance, O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e M a r i a C a n t w e l l U n i t e d S t a t e s S e n a t e 5 1 1 H a r t S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r C a n t w e l l : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e E - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F i i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d " t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n t i n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o n d e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n d p r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r . T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f E - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s . F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . S i n c e r e l y , A j i t V . P a i O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e C a t h e r i n e C o r t e z M a s t o U n i t e d S t a t e s S e n a t e B 4 O A D i r k s e n S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r C o r t e z M a s t o : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e E - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F i i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d " t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n t i n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o n d e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n d p r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r , T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f E - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s . F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . S i n c e r e l y , O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e P a t t y M u r r a y U n i t e d S t a t e s S e n a t e 1 5 4 R u s s e l l S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r M u r r a y : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e B - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F l i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d " t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n ti n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o nd e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n dp r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r , T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f E - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s .F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . S i n c e r e l y , 1 t A j i t V . P a i OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON April 3,2018 The Honorable Tammy Baldwin United States Senate 717 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Baldwin: Thank you for your letter in response to the Wireline Competition Bureau's Public Notice regarding the E-Rate program's category two budgets. Your views are important and will be considered as the Bureau prepares its report for the Commission. In 2014, the Commission adopted five-year budgets for schools and libraries purchasing category two services, including the services and equipment needed for Wi-Fi in classrooms. This rule replaced the old "two in five" rule, which made planning for category two services and equipment difficult for many schools and libraries. But this rule change was temporary-it went into effect in funding year 2015 and will sunset in funding year 2020. To help the Commission decide whether to renew this approach, the Commission directed the Bureau to monitor and provide a report on category two applicant budgets using data gathered in funding years 2015 through 2018. The Bureau's report to the Commission is due before the filing window for funding year 2019 opens next year. In preparation for its report, the Bureau released the Public Notice referenced in your letter. The Public Notice sought comment from applicants, service providers, and other interested parties about how applicants have used their category two budgets, and the percentage of category two services purchased by applicants that were or will be covered by the budgets. The Bureau also sought data and feedback on how the budgets impact different types of E-Rate applicants, such as those in rural or remote geographies or those with unique student populations. Finally, the Bureau sought general comment on the administration of the budgets. The comment cycle for the Public Notice has closed and Bureau staff is carefully reviewing the submissions. The Bureau will take into consideration the issues and concerns presented by all stakeholders. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. Sincerely, - v' AjitV.Pai OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON April 3, 2018 The Honorable Richard Blumenthal United States Senate 706 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Blumenthal: Thank you for your letter in response to the Wireline Competition Bureau's Public Notice regarding the E-Rate program's category two budgets. Your views are important and will be considered as the Bureau prepares its report for the Commission. In 2014, the Commission adopted five-year budgets for schools and libraries purchasing category two services, including the services and equipment needed for Wi-Fl in classrooms. This rule replaced the old "two in five" rule, which made planning for category two services and equipment difficult for many schools and libraries. But this rule change was temporary-it went into effect in funding year 2015 and will sunset in funding year 2020. To help the Commission decide whether to renew this approach, the Commission directed the Bureau to monitor and provide a report on category two applicant budgets using data gathered in funding years 2015 through 2018, The Bureau's report to the Commission is due before the filing window for funding year 2019 opens next year. In preparation for its report, the Bureau released the Public Notice referenced in your letter. The Public Notice sought comment from applicants, service providers, and other interested parties about how applicants have used their category two budgets, and the percentage of category two services purchased by applicants that were or will be covered by the budgets. The Bureau also sought data and feedback on how the budgets impact different types of E-Rate applicants, such as those in rural or remote geographies or those with unique student populations. Finally, the Bureau sought general comment on the administration of the budgets. The comment cycle for the Public Notice has closed and Bureau staff is carefully reviewing the submissions. The Bureau will take into consideration the issues and concerns presented by all stakeholders. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. Sincerely, AjitV. Pai OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON April 3,2018 The Honorable Amy Kiobuchar United States Senate 302 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Kiobuchar: Thank you for your letter in response to the Wireline Competition Bureau's Public Notice regarding the E-Rate program's category two budgets. Your views are important and will be considered as the Bureau prepares its report for the Commission. In 2014, the Commission adopted five-year budgets for schools and libraries purchasing category two services, including the services and equipment needed for Wi-Fi in classrooms. This rule replaced the old "two in five" rule, which made planning for category two services and equipment difficult for many schools and libraries. But this rule change was temporary-it went into effect in funding year 2015 and will sunset in funding year 2020. To help the Commission decide whether to renew this approach, the Commission directed the Bureau to monitor and provide a report on category two applicant budgets using data gathered in funding years 2015 through 2018. The Bureau's report to the Commission is due before the filing window for funding year 2019 opens next year. In preparation for its report, the Bureau released the Public Notice referenced in your letter. The Public Notice sought comment from applicants, service providers, and other interested parties about how applicants have used their category two budgets, and the percentage of category two services purchased by applicants that were or will be covered by the budgets. The Bureau also sought data and feedback on how the budgets impact different types of E-Rate applicants, such as those in rural or remote geographies or those with unique student populations. Finally, the Bureau sought general comment on the administration of the budgets. The comment cycle for the Public Notice has closed and Bureau staff is carefully reviewing the submissions. The Bureau will take into consideration the issues and concerns presented by all stakeholders. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. Sincerely, Ajit V. Pai O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N A p r i l 3 , 2 0 1 8 T h e H o n o r a b l e G a r y P e t e r s U n i t e d S t a t e s S e n a t e 7 2 4 H a r t S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r P e t e r s : T h a n k y o u f o r y o u r l e t t e r i n r e s p o n s e t o t h e W i r e l i n e C o m p e t i t i o n B u r e a u ' s P u b l i c N o t i c e r e g a r d i n g t h e E - R a t e p r o g r a m ' s c a t e g o r y t w o b u d g e t s . Y o u r v i e w s a r e i m p o r t a n t a n d w i l l b e c o n s i d e r e d a s t h e B u r e a u p r e p a r e s i t s r e p o r t f o r t h e C o m m i s s i o n . I n 2 0 1 4 , t h e C o m m i s s i o n a d o p t e d f i v e - y e a r b u d g e t s f o r s c h o o l s a n d l i b r a r i e s p u r c h a s i n g c a t e g o r y t w o s e r v i c e s , i n c l u d i n g t h e s e r v i c e s a n d e q u i p m e n t n e e d e d f o r W i - F i i n c l a s s r o o m s . T h i s r u l e r e p l a c e d t h e o l d ' t w o i n f i v e " r u l e , w h i c h m a d e p l a n n i n g f o r c a t e g o r y t w o s e r v i c e s a n d e q u i p m e n t d i f f i c u l t f o r m a n y s c h o o l s a n d l i b r a r i e s . B u t t h i s r u l e c h a n g e w a s t e m p o r a r y - i t w e n t i n t o e f f e c t i n f u n d i n g y e a r 2 0 1 5 a n d w i l l s u n s e t i n f u n d i n g y e a r 2 0 2 0 . T o h e l p t h e C o m m i s s i o n d e c i d e w h e t h e r t o r e n e w t h i s a p p r o a c h , t h e C o m m i s s i o n d i r e c t e d t h e B u r e a u t o m o n i t o r a n d p r o v i d e a r e p o r t o n c a t e g o r y t w o a p p l i c a n t b u d g e t s u s i n g d a t a g a t h e r e d i n f u n d i n g y e a r s 2 0 1 5 t h r o u g h 2 0 1 8 . T h e B u r e a u ' s r e p o r t t o t h e C o m m i s s i o n i s d u e b e f o r e t h e f i l i n g w i n d o w f o r f u n d i n g y e a r 2 0 1 9 o p e n s n e x t y e a r . I n p r e p a r a t i o n f o r i t s r e p o r t , t h e B u r e a u r e l e a s e d t h e P u b l i c N o t i c e r e f e r e n c e d i n y o u r l e t t e r . T h e P u b l i c N o t i c e s o u g h t c o m m e n t f r o m a p p l i c a n t s , s e r v i c e p r o v i d e r s , a n d o t h e r i n t e r e s t e d p a r t i e s a b o u t h o w a p p l i c a n t s h a v e u s e d t h e i r c a t e g o r y t w o b u d g e t s , a n d t h e p e r c e n t a g e o f c a t e g o r y t w o s e r v i c e s p u r c h a s e d b y a p p l i c a n t s t h a t w e r e o r w i l l b e c o v e r e d b y t h e b u d g e t s . T h e B u r e a u a l s o s o u g h t d a t a a n d f e e d b a c k o n h o w t h e b u d g e t s i m p a c t d i f f e r e n t t y p e s o f E - R a t e a p p l i c a n t s , s u c h a s t h o s e i n r u r a l o r r e m o t e g e o g r a p h i e s o r t h o s e w i t h u n i q u e s t u d e n t p o p u l a t i o n s . F i n a l l y , t h e B u r e a u s o u g h t g e n e r a l c o m m e n t o n t h e a d m i n i s t r a t i o n o f t h e b u d g e t s . T h e c o m m e n t c y c l e f o r t h e P u b l i c N o t i c e h a s c l o s e d a n d B u r e a u s t a f f i s c a r e f u l l y r e v i e w i n g t h e s u b m i s s i o n s . T h e B u r e a u w i l l t a k e i n t o c o n s i d e r a t i o n t h e i s s u e s a n d c o n c e r n s p r e s e n t e d b y a l l s t a k e h o l d e r s . I a p p r e c i a t e y o u r i n t e r e s t i n t h i s m a t t e r . P l e a s e l e t m e k n o w i f I c a n b e o f a n y f u r t h e r a s s i s t a n c e . S i n c e r e l y , 1 )v ' A j i t V . P a i