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California Teleconnect Fund

How does the CTF discount work in conjunction with other discounts or funding sources, such as the federal E-Rate subsidy?



For some organizations, including all schools and libraries, the CTF discount of 50% applies to only the balance remaining after an actual or statewide average E-Rate discount is applied. 


For example, if a school’s monthly invoice includes $100 of CTF eligible charges, and that school has an E-Rate funding commitment of 80%, then the balance remaining after E-Rate is $20, and the total CTF discount is $10. 


If the organization does not have an actual E-Rate funding commitment, then the statewide average E-Rate discount is applied prior to the CTF discount:




     Statewide Average E-Rate Discount*   






















* Please note that the statewide average E-Rate discount is used solely for the purpose of calculating the CTF discount; the customer is still responsible for paying the statewide average E-Rate discount to its service provider.  Finally, if the statewide average E-Rate discount is used, when/if the customer is awarded an actual E-Rate funding commitment, the service provider must true-up the CTF discount.


Administrative Letter 10B addresses the implementation of Senate Bill 1102, which was codified in Public Utilities Code Section 884.5 and requires the application of an actual or statewide average E-Rate discount to schools and libraries' telephone service bills prior to applying the 50% CTF discount. 


For more information, see our FAQ on the application of the CTF discount to E-Rate eligible services.


Administrative Letter No. 14 eliminates the option of Billed Entity Applicant Reimbursement (BEAR) E-Rate funding method for CTF participants.

E-Rate and CTF Training is available for schools and libraries; please visit the K-12 High Speed Network website to register.



Please refer to Resolution T-17314, which adopts a policy that first deducts the Federal Communications Commission’s program support or discount from the total CTF service charges incurred by qualifying rural health care providers and non-profit community based organizations offering Head Start programs before computing the 50 percent CTF discount on the remaining amount. 





For the California Telehealth Network (CTN), the 50% CTF discount applies to only the balance remaining after funding provided by the Federal Communications Commission's Rural Health Care Pilot Program. 


Decision 08-06-020, issued June 18, 2008, states:


"Further, as we limit [CTF] funding [for the CTN] to the monthly recurring charges for telecommunications services not paid for by the FCC's Rural Health Care Pilot Program we know that the funding will be no more than $650,000 per year for the three-year pilot. Thus, participants within the CTN are eligible to receive the 50 percent discount from CTF for the monthly recurring CTF-eligible telecommunications services integral to the CTN not paid for by the FCC's Rural Health Care Pilot Program. However, any CTN participant that does not meet the current CTF eligibility criteria will be qualified to receive the CTF discount only on CTF-eligible services related to the CTN.”


Click here to visit the CTN website.







Click here to go back to the CTF homepage.

Last Modified: 6/3/2013

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