V. Restrictions Imposed on Schools and Libraries

Q: Are eligible schools and libraries permitted to resell the discounted services they receive?

A: No. The Act bars schools and libraries from reselling services purchased pursuant to a universal service discount, and the Commission concluded that the Act should be interpreted to restrict any resale of services purchased under the universal service discount program to entities that are not eligible for support. The Commission also concluded that this prohibition on resale does not prohibit an eligible school or library from charging fees for any services that schools or libraries purchase for which they receive no universal service discounts. For example, an eligible school or library may assess computer lab fees to help defray the cost of computers or training fees to cover the cost of training teachers or library personnel because neither of these purchases are subject to universal service discounts.

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