If the service provider installs additional strands for the applicant’s exclusive future use in a leased dark fiber or leased lit fiber special construction project, and if the applicant can show documentation that buying a cable containing the number of strands placed in the fiber system for the applicant’s future use is more cost effective then buying a fiber cable with the number of strands the applicant plans to place into service the first year, no cost allocation of the excess strands is required and no other special construction charges would need to be cost allocated. If the service provider installs excess strands for the applicant’s exclusive future use in a leased dark fiber or leased lit fiber special construction project where the excess strands will remain dormant until they are lit for the applicant in the future, and if the applicant cannot show that it is not more cost effective than buying the exact number of fiber strands being lit in the first year, the applicant must cost allocate the costs associated with the excess strands only. No other special construction charges would need to be cost allocated. Excess Strands for Service Provider’s Future Use For lit services special construction and leased dark fiber special construction, if the service provider wishes to place extra strands in the build for its own use, the E-rate applicant must cost allocate the cost of the service provider-owned extra strands, as well as all incremental costs of those extra strands from the special construction E-rate funding request. It is not a pro-rata share, but an incremental cost calculation that must be backed by detailed documentation. Example 1 from Funding Year 2018 USAC Fiber Training Slides applies: Applicant’s should seek documentation from the provider which outlines the added incremental costs attributable to designing, managing and constructing a fiber system with a 48-strand cable instead of a 12-strand cable. Such costs should include (but are not limited to): Splice Labor. If any fibers over the applicant’s fibers are spliced, the labor for these additional splices must be cost allocated. Splice Enclosures are placed to protect splices. If any fibers over the applicant’s fibers are spliced and require an enclosure, the enclosures for these additional splices must be cost allocated.
If the service provider installs additional strands for the applicant’s exclusive future use in a leased dark fiber or leased lit fiber special construction project, and if the applicant can show documentation that buying a cable containing the number of strands placed in the fiber system for the applicant’s future use is more cost effective then buying a fiber cable with the number of strands the applicant plans to place into service the first year, no cost allocation of the excess strands is required and no other special construction charges would need to be cost allocated. If the service provider installs excess strands for the applicant’s exclusive future use in a leased dark fiber or leased lit fiber special construction project where the excess strands will remain dormant until they are lit for the applicant in the future, and if the applicant cannot show that it is not more cost effective than buying the exact number of fiber strands being lit in the first year, the applicant must cost allocate the costs associated with the excess strands only. No other special construction charges would need to be cost allocated. Excess Strands for Service Provider’s Future Use For lit services special construction and leased dark fiber special construction, if the service provider wishes to place extra strands in the build for its own use, the E-rate applicant must cost allocate the cost of the service provider-owned extra strands, as well as all incremental costs of those extra strands from the special construction E-rate funding request. It is not a pro-rata share, but an incremental cost calculation that must be backed by detailed documentation. Example 1 from Funding Year 2018 USAC Fiber Training Slides applies: Applicant’s should seek documentation from the provider which outlines the added incremental costs attributable to designing, managing and constructing a fiber system with a 48-strand cable instead of a 12-strand cable. Such costs should include (but are not limited to): Splice Labor. If any fibers over the applicant’s fibers are spliced, the labor for these additional splices must be cost allocated. Splice Enclosures are placed to protect splices. If any fibers over the applicant’s fibers are spliced and require an enclosure, the enclosures for these additional splices must be cost allocated.
WallerISDWANRFP.docx