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Thursday, December 20, 2012

CER 0, LCP 2

Another decision related to the earlier reversal of a denial based on a cost-effectiveness review.  USAC denied the funding because it found that over the course of 5 years, the cost of of the firewall/email/webhosting service was more than twice the cost of buying the equipment and running the infrastructure itself.  The service provider pointed out that USAC's cost estimates assumed that there would be no ongoing costs to the do-it-yourself solution.  (I see a lot of people making the same mistake, believing that data infrastructure is "set it and forget it.")  The FCC decided that calculation was not right.

And again, Lowest Corresponding Price (LCP) got a nod.

But how about all the other CER denials that have been piling up for the last 5 years?  It's high time that the FCC did away with Cost Effectiveness Reviews, or at least clarified the process.

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