Revised Cost-allocation Guidance for FY 2015

The FCC has revised their guidance for the E-rate rules regarding the cost-allocation of ineligible goods and services, in their order which was released on May 23^rd(click here for the revised guidance). The updated interpretation of the rules, which will go into effect for Funding Year 2015, will require applicants to cost-allocate ineligible goods from the price of bundled services, even under the circumstances laid out in the original 2010 Clarification Order. Ineligible portions which fall under the FCC’s definition of “ancillary” components will still be exempt from the cost-allocation requirements.