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Introduction to E-rate 2.0October 15, 2014
Moderator:
Noelle EllersonAssociate Executive Director, Policy &
Advocacy
Presenter:
Aleck JohnsonVice President
EdTech Strategies, LLC
Sponsored by:
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Introductiono E-rate 2.0 efforts date to ConnectED initiative
(June 2013)o First significant overhaul of E-rate since 1997o Order establishing E-rate 2.0 released by FCC on
July 14, 2014 following a lengthy comment process• Schools, libraries, vendors, consultants all participated• AASA and other groups commented extensively
o Labeled as “modernization”
Introductiono E-rate 2.0 meets several different demands• Reorient program to focus on broadband• Free up funds to support intra-building connectivity
- Goal of $1B/year
• Alleviate the demand on the program- Demand has been more than double the available funding- No P2 funded in FY2013 and FY2014- No increase in funding (yet) as part of E-rate 2.0
E-rate 2.0 Summary
o Significant and far reaching changes to a number of aspects of the program• Relabeling Priorities to Categories• Changes to Priority 1/Category 1 services• Changes to Priority 2/Category 2 services• Introduction of budgets and funding caps for
Category 2• Updated application forms and technology back
end (ongoing)
E-rate 2.0 Summary
o Significant and far reaching changes to a number of aspects of the program• Changes in discount calculations• Expedited processing of applications• Promoting multiyear contracts• Promoting master contracts (upcoming)
E-rate 2.0 Summary
oMinor changes • Elimination of technology plan requirements• Document retention requirements extended• Direct invoicing (starting in FY2016)• Encouraging lower pricing from vendors
Item 21s made public Lowest Corresponding Price enforcement
• Low dollar connection streamlining
E-rate 2.0 Summary
o Minor changes (cont’d)• Signed contract requirements relaxed• Easier deadline extensions• Plain language review• Library-school broadband connections
(upcoming)• Tribal outreach (ongoing)
Major Changes: Category/Priority 1o Priority 1 renamed Category 1o Refocused on broadbando Discounts reduced by 20%/year on voice
services (until discounts reach 0%)• Local phone• Long distance phone• Cellular phone
Major Changes: Category/Priority 1o Numerous services eliminated from
eligibility• Website Hosting• Email Hosting• Cellular Data*• Paging Service• Custom Calling Features (incl. DID)• Voicemail Service
Major Changes:Priority 2/Category 2o Priority 2 renamed Category 2o Category 2 refocused on providing
broadband access to classrooms (particularly wireless)
o Goal of $1B in funding for FY2015 and FY2016
Major Changes:Priority 2/Category 2o New “managed internal broadband
services” and caching added as eligible services
o Several previously eligible services eliminated• PBXs• PVBXs• Video Components• Servers*
Major Changes:Priority 2/Category 2o Applicants participating in FY2015 and
FY2016 subject to a new per student pre-discount funding cap of $150/student over five years• Minimum of $9,200 per school/library• Cap is pre-discount – can spend more, but won’t
get E-rate funding beyond cap
Major Changes:Priority 2/Category 2o Per student budgets go away after FY2016 absent
FCC action (unless funding committed in FY2015/FY2016)
o No guarantees of funding (esp. after FY2016)o Basic maintenance, managed internal broadband
services, and caching become ineligible after FY2016 unless the FCC acts to continue their eligibility
Major Changes: Discount Calculationso From FY2015 onward, discount calculations are
based on a district-wide calculation (rather than a school-by-school calculation)
o Urban/rural status now determined by whether majority of entities are rural as defined by new forthcoming tool• Preliminary analysis indicates most rural entities take a
discount hit due to new urban/rural toolo Consortia use simple average of members’
discount rates
Major Changes: Discount Calculationso Community Eligibility Provision (CEP) officially
acceptable• Can use multiplier (currently 1.6)• Max school eligibility is 100%• Can use multiple methods within a district but not
within a school
o Surveys still acceptable, but no projected eligibility• Can use NSLP forms as surveys now
Major Changes: Discount Calculationso Discount rates for C2 reduced at the high end
• Highest poverty discount rate is now 85% -- other rates unchanged for C2
o Discount rates for services being phased out (voice) reduced at 20%/year• FY2015 – 20% reduction• FY2016 – 40% reduction• FY2017 – 60% reduction• FY2018 – 80% reduction• FY2019 – phased out entirely
o Up to 3 discount rates for one applicant!
Major Changes: Faster Application Processingo FCC has set a (nonbinding) goal of processing all
“workable” applications by Sept. 1 of the funding yearo “Workable” appears to mean timely filed, complete, no
additional information from applicant, and no investigation
o FCC and USAC working to figure out how to process consortium apps more quickly
o Additional unspecified improvements in the works
Major Changes: Multiyear Contractso Multiyear contracts will, after first year, only
need to be reviewed if something changes• Recipients of service, cost, services delivered• Applicant will need to file 471 and confirm the
continuation of the contract annually• Only applies to contracts of five years or less• NOT a multiyear commitment – still need to file
and be approved annually
Major Changes: Preferred Master Contractso Preferred Master Contracts for C2 services
will be designated by FCCo Will avoid the 470 processo Will need to be considered as responses to
470s when applicableo Will NOT be in place for FY2015
Major Changes: Technology Planso Technology Plan requirement eliminated • Starting in FY2015 no tech plans will be
required for E-rate• May still be state/local requirements for tech
plans
Minor Changes
o Document retention changed to 10 years• This trumps local retention policies• Electronic retention officially approved• Best practice: apply to 2014 onward
o “Encouraging” lower prices from vendors• Item 21s made public• Lowest Corresponding Price (LCP) enforcement
Minor Changes
o Low dollar connection application streamlining• 100 Mbps down and 10 Mbps up for $300/mo.
or less • Can skip Form 470 (though local restrictions
may apply)o Relaxing signed contract requirement• Must still have legally binding agreement before
filing 471
Minor Changes
o Plain language review of E-rate applications and process
o Library-School broadband connections• Should apply for waiver ASAP if needed for
FY2015o Tribal outreach from USAC
E-rate 2.0 Summary
o Major changes will likely affect application processes and discounts/reimbursements for most applicants
o Dollar amounts likely to drop if applicants were receiving discounts on eliminated services (web hosting, email, cellular data) or services being phased out (voice)
o C2 funding for intra-building broadband may offset those decreases
o New processes (and increased work) likely to mean applications more difficult for FY2015
Future Presentations
o 10/22/14 – Understanding the New Category 1 Services
o 10/29/14 – Understanding the New Category 2 Services
Send questions to [email protected]
Blackboard & E-Rate
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