What sorts of services are eligible for E-rate discounts?

Category One Services covers a percentage of Telecommunications Services, Telecommunications, and Internet Access

• Digital transmission services provide transmission from an eligible school or library facility to other locations beyond the school or library. Such services generally refer to data links that connect multiple points using any available technology.
• Lit or dark fiber, provided by any entity, including a non-telecommunications carrier, is eligible. Dark fiber is eligible as long as applicants light the fiber immediately.
• Interconnected Voice Over Internet Protocol (VOIP); however, this service will be phased out in the future.
• Internet access - Support in this funding category is generally only available for basic conduit access to the Internet but is not available for content, equipment purchased by applicants, and services beyond basic conduit access to the Internet.
• Telephone service. However, in FY 2015, E-rate support will not be available for paging, email, web hosting, voice mail, directory assistance, text messaging, custom calling features, direct inward dialing (DID), 900/976 call blocking, and inside wire maintenance plans.

Category Two Services will only cover a percentage of broadband distribution services and equipment. Three groups of services eligible for category two support: internal connections, basic maintenance, and managed internal broadband services (more commonly described as managed Wi-Fi).

• Support is therefore limited to routers, switches, wireless access points, internal cabling, racks, wireless controller systems, firewall services, uninterruptable power supply, and the software supporting each of these components used to distribute high-speed broadband throughout schools and libraries.
• For funding years 2015 and 2016, basic maintenance services and managed Wi-Fi are eligible for category two support.