area shall, upon a bona fide request for any of its services that are within the definition of

universal service . . ., provide such services to elementary schools, secondary schools,

and libraries for educational purposes at rates less than the amounts charged for similar

services to other parties.   47 U.S.C.   254(h)(1)(B).  Under FCC regulations, providers

of  interstate telecommunications  (with certain exceptions, 

see

 47 C.F.R.   54.706(d)),

must contribute a portion of their revenue for disbursement among eligible carriers that

are providing services to those groups or areas specified by Congress in section 254.  To

be eligible for the discounts, a library must: (1) be eligible for assistance from a State

library administrative agency under the Library Services and Technology Act, 

see infra

;

(2) be funded as an independent entity, completely separate from any schools; and (3) not

be operating as a for profit business.  

See 

47 C.F.R.   54.501(c).  Discounts on services

for eligible libraries are set as a percentage of the pre discount price, and range from 20%

to 90%, depending on a library's level of economic disadvantage and its location in an

urban or rural area.  

See

 47 C.F.R.   54.505.  Currently, a library's level of economic

disadvantage is based on the percentage of students eligible for the national school lunch

program in the school district in which the library is located.

The Library Services and Technology Act ( LSTA ), Subchapter II of the Museum

and Library Services Act, 20 U.S.C.   9101 

et seq.

, was enacted by Congress in 1996 as

part of the Omnibus Consolidated Appropriations Act of 1997, Pub. L. No. 104 208.  The

LSTA establishes three grant programs to achieve the goal of improving library services

across the nation.  Under the Grants to States Program, LSTA grant funds are awarded,

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