Can an applicant use equipment trade-ins to fund their obligation of e-rate?
No, however the applicant may opt to use the value of the trade-in to reduce the pre-discount cost of the new equipment. For example, if the new equipment costs $800 and there is a trade-in worth $300, this equipment should be reported as costing $500. If in this example the applicant has a 50% discount, the E-rate would then cover 50% of the $500.Additional details on the applicant’s obligation to pay Non-Discounted Portions of E-rate covered products or services can be found at http://www.sl.universalservice.org/reference/obligation.
No, however the applicant may opt to use the value of the trade-in to reduce the pre-discount cost of the new equipment. For example, if the new equipment costs $800 and there is a trade-in worth $300, this equipment should be reported as costing $500. If in this example the applicant has a 50% discount, the E-rate would then cover 50% of the $500.
