BellSouth Comments
CC Docket No. 02-6
December 18, 2006
Doc. #661142
Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D. C. 20554
In the Matter of )
)
Schools and Libraries Universal Service )
Support Mechanism )
) CC Docket No. 02-6
E-Rate Central Petition for Clarification )
Or Waiver of the Commission?s Rules )
Concerning the Disposal of Equipment )
Purchased Under the Schools and Libraries )
Universal Service Support Mechanism )
BELLSOUTH COMMENTS
BellSouth Corporation, by counsel and on behalf of its wholly owned affiliated entities
that participate in the schools and libraries universal service support program, supports the
petition filed by E-Rate Central, which is the subject of the recent Commission Public Notice in
this docket.
1
E-Rate Central argues that current rules address E-rate funded equipment transfers and
trade-ins, but not ultimate disposition of obsolete equipment.
2
This is resulting in increasing
confusion within the applicant community, which may feel constrained under current policies
1
The Wireline Competition Bureau Seeks Comment on the E-Rate Central Petition for
Clarification or Waiver of the Commission?s Rules Concerning the Disposal of Equipment
Purchased Under the Schools and Libraries Universal Service Support Mechanism, CC Docket
No. 02-6, Public Notice, DA 06-2371 (rel. Nov. 27, 2006)
2
Schools and Libraries Universal Service Support Mechanism, CC Docket No. 02-6, E-
Rate Central Petition for the Clarification or Waiver of E-Rate Rules Concerning the Disposal of
Equipment Purchased Under the Schools and Libraries Universal Service Support Mechanism
(filed Sept. 29, 2006) (?Petition?) at 1-2.
BellSouth Comments
CC Docket No. 02-6
December 18, 2006
Doc. No. 661142
2
and procedures to relegate obsolete, out-of-service equipment to perpetual storage at eligible
locations.
3
Moreover, E-Rate Central shows that grafting existing equipment transfer rules to
equipment disposal scenarios (because, presumably, they are the closest rules that would appear
to apply) may result in conflict with existing and controlling state procurement requirements.
4
In
BellSouth?s experience, the lack of USAC guidance that specifically applies to equipment
disposal also creates uncertainty in the audit process. Applicants risk being deemed in non-
compliance with equipment transfer rules when the equipment is so old and outdated as to be of
no functional value to the school or library.
E-Rate Central?s proposed equipment disposal procedures are an excellent starting point
for discussion.
5
The Bureau should encourage USAC to consider them and to engage in further
dialogue with the SLP community on the matter. In BellSouth?s view, such procedures should
take into account a reasonable range of ?useful life? for various kinds of equipment, and
minimize any new regulatory burdens or requirements. In the meantime, however, the Bureau
should clarify that current equipment transfer and trade-in rules are not applicable to equipment
disposal, and that applicants are free to arrange for appropriate disposition of obsolete equipment
in compliance with any applicable local, state or federal law.
3
Id. at 2.
4
Id.
5
Id. at 3.
BellSouth Comments
CC Docket No. 02-6
December 18, 2006
Doc. No. 661142
3
CONCLUSION
The Bureau should grant E-Rate Central?s Petition by directing USAC to clarify that
nothing in existing USAC policies and procedures prevents applicants from lawfully disposing of
obsolete or surplus E-rate funded equipment.
Respectfully submitted,
BELLSOUTH CORPORATION
By: /s/ Theodore R. Kingsley
Theodore R. Kingsley
Richard M. Sbaratta
Its Atorneys
Suite 4300
675 West Peachtree Street, N. E.
Atlanta, Georgia 30375-0001
(404) 335-0720
Date: December 18, 2006
BellSouth Comments
CC Docket No. 02-6
December 18, 2006
Doc. #661142
CERTIFICATE OF SERVICE
I do hereby certify that I have this 18th day of December, 2006, served the following
parties to this action with a copy of the foregoing BELLSOUTH COMMENTS by electronic
filing or by placing a copy of same in the United States Mail, addressed to the parties listed
below.
+Marlene H. Dortch +Best Copy and Printing, Inc.
Office of the Secretary The Portals, 445 12
th
Street, S. W.
Federal Communications Commission Room CY-B402
The Portals, 445 12
th
Street, S. W. Washington, D.C. 20554
Room 5-B540
Washington, D.C. 20554
+Antoinette Stevens +Gina Spade
Telecommunications Access Policy Division Telecommunications Access Policy Division
Wireline Competition Bureau Wireline Competition Bureau
445 12
th
Street, S.W., Room 5B-521 445 12
th
Street, SW, Room 5B-550
Washington, DC 20554 Washington, DC 20554
antoinette.stevens@fcc.gov gina.spade@fcc.gov
Winston E. Himsworth
Executive Director
E-Rate Central
625 Locust Street, Suite 1
Garden City, NY 11530
/s/ Lynn Barclay
Lynn Barclay
+ VIA ELECTRONIC FILING