Subsidies for Internet Access: How They Work

Under the Telecommunications Act of 1996, schools, libraries, and rural hospitals are now eligible to get subsidies for Internet access. The subsi-dies, provided through a program called “universal service,” are designed to make sure that all Americans, especially children, can have access to the Internet.

Here is some basic information about the program.

Who is eligible: Public schools, private schools with endowments below $50-million, public libraries, and public or non-profit rural hospitals.

How institutions qualify: Schools and libraries must fill out applications furnished by the Schools & Libraries Corporation, a non-profit organization set up by the federal government.

Hospitals must fill out applications furnished by the Rural Health Care Corporation, another non-profit group set up by the government.

All applications must include a summary of an institution’s technological needs, such as the installation of wiring and help with paying monthly Internet-access costs.

How discounts are determined: For schools and libraries, the amount of a discount is based on an institution’s need. Need is determined by two factors: the percentage of children (attending the school or within the library’s circulation area) who qualify for the federal government’s free or reduced-price school-lunch program, and how far the institution is from an Internet-service provider.

For rural hospitals, need is based on how distant they are from providers.

How much an institution can get: The poorest schools and libraries will get 90-per-cent discounts on Internet access; the lowest discounts are 20 per cent.

For hospitals, discounts will be limited to covering the additional costs they incur, compared with urban hospitals, because they are far from an Internet-service provider.

What the discounts cover: Wiring, Internet connections, and other technology that is needed to link to the Internet. They do not cover the cost of a number of related needs, however, such as computers, modems, training teachers and librarians to use the Internet, or developing educational materials for the Internet.

How to get more information: Schools & Libraries Corporation, P.O. Box 4217, Iowa City, Iowa 52244-4217; (888) 203-8100; e-mail: question@slcfund.org; World-Wide Web sites: http://ww.fcc.gov/learnnet and http://www.slcfund.org (scheduled to be available late this month). Rural Health Care Corporation, Federal Communications Commission, 1919 M Street, N.W., Washington 20554; (888) 225-5322; World-Wide Web site: http://www.fcc.gov/healthnet.