Incentive to outsource...

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Another observation about Universal Services discounts is that due to the
nature of what is and is not covered, there is now an incentive for schools
and districts to outsource some things that they had planned to, or were in
the process of deveoping in-house. An example here is LAN wiring. If you had
managed, or even hoped, to have your own orgaization's electricians acquire
the skills to do LAN wiring, it may no longer be as attractive, as your
in-house people's wages would not be covered.

If there is much of this, yet another wry alias to the Act might be "The
Discount Dependency Act of 1996" because this will lessen the short term
incentive to acquire expertise and skills.

Personally, I've always thought that LANs were more properly financed through
grants and bonds, rather than via this fund, and that was before the strings
became apparent.

Gene

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