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Wednesday, March 28, 2007

USAC annual report

So I was just looking at the annual report that USAC sent up to the FCC. Here are the factoids that jumped out at me:
  • The E-Rate is costly to administer: While the E-Rate gets less than 25% of the total disbursements from the fund, it uses up over 75% of the fund's administrative costs.
  • The cost of administering the program more than doubled between 2001 and 2006. But it's still only 1.35% of the total fund, which seems reasonable. The E-Rate administrative costs are 3% of the total, which is kind of high. Maybe we can simplify the program?
  • Solix gets almost, but not quite, half the money that the SLD takes in. Two things about that:
    1. It seems low: Solix has more employees and does more work than the SLD. But I guess most of the rest of the money pays for audits of one kind or another.
    2. It's a little unsavory: The FCC gives money to a non-profit subsidiary of NECA (the phone companies' lobby group), which then turns a good deal of the money over to a for-profit subsidiary of NECA. On the other hand, I don't know who else could run the program, or would want to.
  • I can't understanding something in the report. On page 12 there is a table that shows that 89.28% of funding went to applicants not classified as Urban or Rural, because "either FCC Forms 471 that did not include this information, or to FCC Forms 471 shared by both rural and urban entities (that therefore could not be classified)." Well, you can't file a Form 471 without including information on Urban or Rural; Item 3 in Block 4 is mandatory. So 89% of applicants include entities in both rural and urban counties? I don't think so.


  1. I stand corrected. Solix is not associated with NECA, though I gather that Solix is associated with some phone companies. I thought it was unsavory for a company to have a non-profit subsidiary funnel money to a for-profit subsidiary. Which turns out not to be the case.

  2. Anonymous9:34 AM

    Apparently Solix Technologies was the 3rd party contractor, hire by Universal Service Administrative Company(USAC) to handle the annual Lifeline Phone service's recertification process; For Cox Communications(Cox), in my area.

    I have lifeline phone service through Cox Communications. I received my renewal forum back in Oct 2014, I filled it out the same day, and mailed it back, at the Post Office. I received no further communications from nether Cox, USAC, nor from Solix.

    I am sure I filled out the form right: I am disabled and my only income is Social Security Disability, and is well below the single person cap; I have both Medicare and Medicaid, and receive extra help to pay for my meds; Lastly I did receive my State of Oklahoma Sells Tax Rebate last year. So I am very puzzled as to why I have been cut off from the Lifeline program.

    Saturday night (-02-2015) after 10:00 PM, I received an email from Cox that a work order for my phone service was completed. Since I did not request a work order I called them about it. I find out that I have been removed from the Lifeline program with no explanation as to why.

    Some where Solix messed up and lost my form. they made no attempt to contact me and letting me know that they had not received it, or that there was a problem, As is my right under the FCC rules and regulations: Nor have I been given the ability to appeal Solix's adverse decision, which is also My Right under the FCC.

    According to a Cox Sr. sales and Operation Specialist I am not the only victim of the shoddy work by this Solix. Cox has been swamped the last few days, by other Cox's Lifeline customers who were also cut from the program, without prior notice or explanation, by Solix.

    The only Phone line to the Solix group/offices that handled this recertification process, 1-855-332-3919 was turn off after the recertification period end on December 6th 2014 ended. so like Gypsy in the night they folded up their tent and disappeared, leaving a trail of victims, like me in their wake.