Revised Cost Allocation Regulations Effective July 14, 2014

The FCC published the revised cost allocation guidelines in the Federal Register, indicating the effective date of the rules will be July 14, 2014. The FCC revised their guidance for the E-rate rules regarding the cost-allocation of ineligible goods and services on May 23, 2014. The updated interpretation of the rules will require applicants to cost-allocate ineligible goods from the price of bundled services, even under the circumstances laid out in the original 2010 Clarification Order. Ineligible portions which fall under the FCC’s definition of “ancillary” components will still be exempt from the cost-allocation requirements.