Follow the Money

Abstract

Expanding the principles of the universal provision of telecommunications services to encompass elementary and secondary schools and libraries, lawmakers paved the way for the creation of the E-Rate program by passing the Telecommunications Act in 1996. The E-Rate program aims to bridge the digital divide in advanced telecommunications by offering services to eligible schools and libraries for educational purposes at discounted rates. Currently in its sixth cycle, the E-Rate program has provided nearly US$13 billion in discounts to eligible organizations. The program has inspired much controversy and criticism, yet studies provide evidence that the program is effectively helping to enhance the provision of services to traditionally disadvantaged communities. This study challenges these claims and presents empirical evidence that suggests E-Rate resources are not systematically allocated to underprivileged, rural states where funds would most effectively help to bridge the digital gap in access to telecommunications technologies.