Lit/Dark Fiber Eligibility
Beginning with Year 7 (2004-2005), the FCC deemed that “Dark Fiber” is not eligible. The specific reference to Dark Fiber in the Eligible Services List states:
“Dark fiber refers to fiber optic cable for which the service provider has not provided modulating electronics, i.e., it is "dark.” In some cases, this communication capacity will be leased to organizations that will add their own modulating electronics. The FCC has not resolved whether unlit dark fiber is a telecommunications service. Pending resolution of this issue, it is not eligible for funding. (Effective for Fund Year 2004 and later years.)”
The following is a clarification of what is and what is not considered eligible fiber.
TERM 'DARK FIBER'
Most entities, at least in PA, have come to describe the leasing of fiber as 'Dark Fiber' which we shouldn't be doing. The FCC made an important distinction. Dark Fiber is UNLIT, unused fiber and is NOT eligible. In PA we mostly have case of leased 'LIT Fiber' not Dark Fiber. Please keep this in mind when submitting your Item 21 attachments or speaking with a PIA representative.
WHO CAN PROVIDE LEASED, LIT FIBER?
* Lit Fiber is only eligible if it is being leased by an eligible telecommunications provider. To determine whether your service provider is "an eligible telecom provider," go to the SLD website and do a SPIN Search. If there is a "Y" in the column entitled, "Elig Telecom Provider" then they can lease you this service. Lit Fiber is ALSO eligible under the Internet Access category of services, which means it can be leased from a non-telco.
Note: Keep in mind that if you are leasing from a non telco provider (someone without the 'Y'), then the only service that may run over the fiber is Internet Access. And knowing why most entities want to use a fiber network, it's highly doubtful that you are going to JUST have Internet being transported. In order to be included in the Internet Access category, you would also have to prove that the lit fiber is the most cost effective means to achieving internet access.
MODULATING ELECTRONICS
There have been many questions raised about the electronics that light the fiber and who must/can provide them. The following Q & A should answer these questions:
1. Can a district use their own electronics to light the fiber?
No. An eligible telecommunications provider or an ISP (if using the fiber for Internet Access only) must light the fiber and provide the service to the applicant. This service must include the electronics that light the fiber. The district cannot use their own electronics to light the fiber.
2. Must both the fiber and electronics be leased from the SAME provider?
Yes. The Provider of the service (an eligible telecom provider or an ISP) may lease the components from other entities if it so chooses, but the service must be put together as a bundled service under one contract from the same service provider to the District.
COST ALLOCATION
If you have a contract to lease fiber, but are only lighting a few strands, you can only receive E-rate discounts on the LIT portion of the fiber. For example, if your contract is for 10 strands, but you only intend to use 4, you can only seek E-rate support for 4/10 (or 2/5) of the cost of the lease.
EXISTING CONTRACTS
Districts that are in a multi-year contract and have services that do not meet the new eligibility criteria, likely will need to post a new 470 this fall, and sign a new contract or contract amendment that is consistent with the new eligibility criteria. Unfortunately, the rules do not permit you to amend a contract without posting a new 470 and signing either a new contract or a contract amendment.
The FCC’s notation in the new eligible services list, showing that this applies to Funding Year 2004-2005 and after, seems to indicate that the SLD will not be overturning previously approved FRNs from prior or current years, and also will pay invoices for previously approved FRNs. They will not, however, be grandfathering existing contracts for future funding years.
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