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FCC Issues Cost Effectiveness Appeal Decisions

On March 19, 2012, the FCC granted eight appeals for funding denials in which USAC found that the services and/or products sought were not cost effective per E-rate program rules. In reversing the SLD decision, the FCC stated that the “costs of the products and services in the funding requests were reasonable‚Ķ..and there is no evidence of waste, fraud or abuse‚Ķ’

USAC applies heavier scrutiny to funding requests where it is determined that “‚Ķthe costs of the products and services in a funding request are significantly higher than the costs generally available in the applicant’s marketplace for the same or similar products or services‚Ķ”

The FCC has directed the SLD to process the affected applications within 90 calendar days.

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