§ 54.638   Upfront payments.

   (a)  Upfront  payments  include  all non-recurring costs for services,
   equipment, or facilities, other than reasonable and customary installation
   charges of up to $5,000.

   (b) The following limitations apply to all upfront payments:

   (1) Upfront payments associated with services providing a bandwidth of less
   than 1.5 Mbps (symmetrical) are not eligible for support.

   (2)  Only  consortium  applicants are eligible for support for upfront
   payments.

   (c) The following limitations apply if a consortium makes a request for
   support for upfront payments that exceeds, on average, $50,000 per eligible
   site in the consortium:

   (1) The support for the upfront payments must be prorated over at least
   three years.

   (2) The upfront payments must be part of a multi-year contract.

   [ 78 FR 13987 , Mar. 1, 2013]

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