On-Premise Priority One Equipment

I just got the current set of questions for determining the eligibility of On-Premise Priority One Equipment (OPPOE), and thought it might be useful for applicants to see the questions and the correct answers. Not so that you can cheat (because it's worse to fool PIA and then have to pay the money back after an audit), but so that you can make see how you need to structure your agreements to pass the tests.

[Don't know what OPPOE is? It's the ability of a service provider to put equipment in your building and charge you for the equipment as an installation fee or capital recovery fee or non-recurring charge (NRC), and still charge it to the E-Rate under Priority One. It's not easy to prove, but it is possible. For those interested in learning more, see the FCC decision (paragraph 44) and the SLD pages.]

So here are the questions and the correct answers.

1.) Is the leased on-premise equipment an integral component of a Telecommunications or Internet Access service? (YES/NO)
Answer: Yes

2.) Will the leased on-premise equipment be provided by the same service provider that provides the associated Telecommunications Service or Internet Access service? (YES/NO)
Answer: Yes

3.) Does responsibility for maintaining the equipment rest with the service provider? (YES/NO)
Answer: Yes

4.) Will ownership of the equipment transfer to the school or library in the future? (YES/NO)
Answer: No

5.) Does the relevant contract or lease include an option for the applicant to purchase the equipment? (YES/NO)
Answer: No

6.) Will the leased equipment be used at the applicant site for any purpose other than receipt of the eligible Telecommunications Services or Internet Access of which it is a part? (YES/NO)
Answer: No

7.) Will the school's or library's internal communications network function without dependence on the equipment? (YES/NO)
Answer: Yes

8.) Are there any contractual, technical, or other limitations that would prevent the service provider from using equipment that would normally be shared in other similar arrangements with other customers? (YES/NO)
Answer: No

That last question is incomprehensible to me, but I know where it comes from, so I know the right answer. Basically, the FCC has said that there should be no contractual or technical requirement that the equipment be for the exclusive use of the client. But then the FCC goes on to say that cable modems are OK, and the equipment necessary to light fiber is OK, even though these pieces of equipment must be for the exclusive use of the client. So the SLD had to craft a question to fit those contradictory instructions.