41
Sept. 13, 2013 Marlene H. Dortch Secretary Federal Communications Commission 445 12 th St, SW Washington, D.C. 20554 Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure (President and CEO of The Quilt), Don Welch (President and CEO of Merit Networks), Joe Freddoso (President and CEO of MCNC), John Gillispie (Executive Director of MORENet), Pankaj Shah (Executive Director of OARNet) and the undersigned met with Commissioner Pai and Nick Degani. The conversation focused on the attached talking points and presentation. (Because of the large size of the presentation, it is being filed in three separate sections.) If there are any questions about this filing, I can be reached at (202) 256-9616. Sincerely, John Windhausen, Jr. President Telepoly Consulting Consultant to The Quilt (202) 256-9616 [email protected] cc: Nick Degani

Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

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Page 1: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Sept. 13, 2013

Marlene H. Dortch

Secretary

Federal Communications Commission

445 12th

St, SW

Washington, D.C. 20554

Re: Notice of Ex Parte presentation in: WC Docket No. 13-184

Dear Ms. Dortch:

On Tuesday, Sept. 10, 2013, Jen Leasure (President and CEO of The Quilt), Don Welch

(President and CEO of Merit Networks), Joe Freddoso (President and CEO of MCNC), John

Gillispie (Executive Director of MORENet), Pankaj Shah (Executive Director of OARNet) and

the undersigned met with Commissioner Pai and Nick Degani. The conversation focused on the

attached talking points and presentation. (Because of the large size of the presentation, it is

being filed in three separate sections.)

If there are any questions about this filing, I can be reached at (202) 256-9616.

Sincerely,

John Windhausen, Jr.

President

Telepoly Consulting

Consultant to The Quilt

(202) 256-9616

[email protected]

cc: Nick Degani

Page 2: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

2442 NW Market Street #68

Seattle, Washington 98107 www.thequilt.net

Sept. 10, 2013 The Quilt Talking Points on E-Rate Reform 1 Contact: Jen Leasure, President, The Quilt at [email protected]

Scalable Infrastructure to Achieve Broadband Goals for Schools

Investing in Scalable Broadband Connections: The Quilt believes it is important to set national broadband capacity goals for our country’s schools and libraries to emphasize the importance of affordable broadband access in preparing students to compete in a 21st century global environment. Based on the experience of the Research and Education Networks (R&E Networks), the key to putting schools and libraries on a sensible path toward these goals is to invest in scalable infrastructure that is able to expand in a cost-effective way to match the demand for higher capacity broadband connections over time by individual schools and libraries.

Determining the Best Long-Run Approach: Capacity requirements will undoubtedly grow

for each school and library over time as our national goal pushes toward ever higher capacities in the future. Where utilization data and financial analysis supports it, fiber optic solutions are most likely to offer the best long-run approach because fiber networks can be upgraded to add additional capacity in the future simply by changing the electronics. In the case of fiber, the E-Rate program should not distinguish between eligible costs for lit versus dark fiber. To determine where school or library ownership of fiber is a feasible alternative, a return on investment calculation showing how the capital investment ameliorates annual bandwidth costs should be part of the analysis. Several Quilt members use a 3-5 year ROI on fiber builds to justify the capital investment. Having said this, the E-Rate program should not pick winners and losers among technologies arbitrarily. Applicants should have the flexibility to use the best and most cost-effective technology for each location. Upfront capital investments now will allow program dollars to go further while providing the flexibility to scale to meet the demands of educators and students into the future. Where cost effective to do so, program funding should support necessary modulating electronics necessary to enable scalable infrastructure investments as well as special construction charges.

Page 3: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

2442 NW Market Street #68

Seattle, Washington 98107 www.thequilt.net

Sept. 10, 2013 The Quilt Talking Points on E-Rate Reform 2 Contact: Jen Leasure, President, The Quilt at [email protected]

Flexible Infrastructure Needs the Appropriate Service Delivery Model for Schools and Libraries: The E-Rate program should place a value on services that can support fluctuations or spikes in network usage, such as those around standard testing intervals for K-12 schools, without requiring schools and libraries to over-provision connectivity to meet specific requirements of these flash events. Through effective aggregation and management, such as that provided by the R&E Networks, providers can work with schools to recognize when sustained network use increases over time require bandwidth upgrades. The E-Rate program should incent increased circuit commitment in a cost-effective, incremental fashion as schools and libraries demonstrate the demand for it while recognizing that we must also work within the limits of existing capabilities of commercially available equipment solutions which support specific connection types, e.g. 10 Mbps, 100 Mbps or 1000 Mbps connections.

Network Quality Counts for Schools and Libraries: While the capacity of the connection is

important in achieving the goals of digital learning, the quality of the connection is just as important to achieving our broadband goals for schools and libraries. Schools and libraries need reliable, dedicated connections in order to utilize learning applications. Not only is network uptime critical, but also symmetrical connections (same speed up/down), full committed information rates, low network latency (the amount of time required for a data packet to get from point A to point B) and jitter (variability in the timing of data packet arrival). These are all vital to supporting e-Learning initiatives such as distance learning, videoconferencing, on-line testing and are important to consider when evaluating the value of broadband connection. A few examples provided below highlight the types of applications commonly used by schools and libraries and how quality of service and speed impact the use of each.

Page 4: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

2442 NW Market Street #68

Seattle, Washington 98107 www.thequilt.net

Sept. 10, 2013 The Quilt Talking Points on E-Rate Reform 3 Contact: Jen Leasure, President, The Quilt at [email protected]

Schools

Network latency is especially important with high-definition video applications such as those used for remote classrooms and distance learning. A high latency connection, one which delays or drops packets, will make real-time communications look and sound jittery, distorted, or garbled. Voice and video communications become choppy and unsynchronized. Video frame rates may drop. When schools do not receive the full throughput of their broadband connection, on-line testing data may compete with administrative data which may compete with classroom instruction data at any given point during an academic day. This contention results in packet delay and loss while requiring additional technical resources to help plan for and prioritize network use.

Libraries

Source: Bill and Melinda Gates Foundation Study “Connections, Capacity, and Community: Exploring Potential Benefits of Research and Education Networks for Public Libraries”, February 2011.

Desktop Video chat

High

Low

Speed Requirements Basic High Speed

Cloud Computing /

Virtual Desktop HD /Room

Videoconferencing

Streaming Video

Instant Messaging

Web Browsing

Email File Sharing/ Transfer

Database/ Content Access

Real - Time Simulation/ Education

VoIP

1

2

3

Zones denote increasing importance of premium connectivity:

Basic connectivity is sufficient Premium connectivity is helpful Premium connectivity is critical

1 2 3

Page 5: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

2442 NW Market Street #68

Seattle, Washington 98107 www.thequilt.net

Sept. 10, 2013 The Quilt Talking Points on E-Rate Reform 4 Contact: Jen Leasure, President, The Quilt at [email protected]

Bandwidth Must Reach the Users: It is not enough that there is a high capacity connection

to the edge of the school network. This type of bandwidth must be accessible in the classroom where instruction and learning occurs. If a school is able to gain access to affordable connectivity to each building, but does not have the resources to purchase equipment to utilize the upgraded services and disburse the connectivity throughout the building to the classrooms, then the benefit of the capacity investment goes unfulfilled. A modernized E-Rate program should recognize the importance of internal connections through committed, recurring program funds.

Education Does Not End at 3 PM: E-Rate reform must address home connectivity for

underserved students in some tangible way. Building upon the FCC’s extended school hour program and allowing a strategy where the school or library becomes an after-hours hot spot by inviting a commercial provider to share the school’s E-Rate funded infrastructure are two possible strategies.

Consortia Applications Yield Pricing Improvements and Greater Efficiencies: The

knowledge, experience and relationships held by consortium applications such as the R&E networking community promotes partnerships with a range of service providers and results in lower pricing to schools and libraries than they would be able to negotiate independently. The opportunity for a larger volume, multi-site contract which lowers administrative costs for the provider is frequently the incentive for providers to bid on more of the individual sites of a consortium application rather than just a single opportunity. Based on a site-by-site evaluation of responses, consortia determine the best technology and value for the particular site and in doing so, awards contracts to multiple vendors. The benefits of consortium purchases extend into technical support where consortium buyers often get higher priority in technical support. Consortium buyers often get access to flexibly priced last mile circuits that allow connectors to grow into higher bandwidth commitments in an economical and efficient fashion.

Page 6: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 1

September 10, 2013

The Quilt

A Collaboration of U.S. Research and

Education Networks

Page 7: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 2

September 10, 2013

The Quilt

Quilt members are our country’s not-for-profit networking organizations

serving research and education with similar missions to; support research and

education, collaborate, manage advanced networks, provide advanced

networking services and further knowledge and innovation.

The Quilt aims to influence the national agenda on information technology

infrastructure, with particular emphasis on networking for research and

education. Through this coalition, Quilt members collaborate to promote the

delivery of networking services at lower cost, higher performance and greater

reliability and security.

The Quilt is a non-profit collaboration of our country’s advanced regional

research and education networks. Created in 2000, The Quilt is a member-

powered, vibrant forum where leaders from these networks come together to

exchange knowledge, experience and ideas to collectively advance networking

for research & education.

Page 8: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 3

September 10, 2013

OARnet

Accelerating Ohio’s Future

Page 9: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 4

September 10, 2013

OARnet

Backbone

Connections

Page 10: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 5

September 10, 2013

Middle Mile Connections

Pre-BTOP Funding

Impact:

OARnet’s Network

Middle Mile Connections

Post-BTOP Funding

Page 11: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 6

September 10, 2013

Middle Mile Community Anchor Institutions As Provided by OMMC Partners

K-12 Schools 622

Libraries 166

Medical/Healthcare 353

Community Colleges 25

Public Housing 476

Public Safety 407

Other Higher Ed

Institutions 19

Other Community

Support Orgs. 612

Other Gov. Facilities 722

Total CAI 3,424

K-12 Schools 705

Libraries 165

Medical/Healthcare 279

Community Colleges 12

Public Housing 377

Public Safety 322

Other Higher Ed

Institutions 16

Other Community

Support Orgs. 504

Other Gov. Facilities 488

Total CAI 2,868

K-12 Schools 1,403

Libraries 94

Medical/Healthcare 189

Community Colleges 39

Public Housing 0

Public Safety 74

Other Higher Ed

Institutions 14

Other Community

Support Orgs. 29

Other Gov. Facilities 36

Total CAI 1,878

Page 12: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 7

September 10, 2013

Last Mile Connections Change in last-mile connections to higher education organizations

Updated May 21, 2013

Capacity Prior to OARnet Implementation

2003 Current OARnet

Connections 2012

100 Gigabits (pending) 0 3

10 – 99 Gigabits 0 12

1 Gigabit – 9 Gigabits 0 65

100 Mbs – 999 Mbs 10 8

10 Mbs – 99 Mbs 16 0

9 Mbs or less 63 0

Current OARnet Connections 2012

11% 18%

71%

Prior to OARnet Implementation 2003 3%

14%

74%

9% 100 Gbps

Page 13: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 8

September 10, 2013

Last Mile

Connection

by Service

Providers

ACCESS, 1%

CWRU, 1%

Cincinnati Bell, 1%

ZAYO, 2%

CenturyLINK, 2%

First Energy, 2%

AEP 4%

CERF 4%

BuckeyeTelesys 9%

AT&T 41%

NWOCA, 1%

OneCommunity, 2%

OSU, 1%

TCCSA, 1%

Time Warner Cable 22%

TW Telecom, 3%

Last Mile Connection by Service Providers

ACCESS CWRU Cincinnati Bell ZAYO

CenturyLINK First Energy AEP CERF

BuckeyeTelesys ATT NWOCA OneCommunity

OSU TCCSA Time Warner Cable TW Telecom

Page 14: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 9

September 10, 2013

Ohio E-Rate Support • Federal E-Rate program available to:

– Eligible K-12 schools

– Public libraries

• Provides discounts on:

– Telecommunication services

– Internet access

– Internal connections hardware

– Maintenance costs

• Ohio Department of Education provides planning, support

and information to program applicants and recipients

FY2012/July 1, 2012–June 30, 2013

Total funding received to date - $74M

FY2013/ July 1, 2013–June 30, 2014

Total funding requested - $123M

Priority 1 Requests - $85.8 mil

Priority 2 Requests - $37.3 mil

Page 15: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 10

September 10, 2013

Status of K-12 Building Connectivity in Ohio

• 85% of the school buildings are

at, or exceed

newly recommended capacity

of 100Mbs per building

• Based on the most recent data,

546 buildings fall into the

restricted and severely

restricted categories

• 113 buildings fall into the most

severe category of less than

10mbs per building.

Page 16: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 11

September 10, 2013

K-12 Building Connections, by Type

10%

2% 1%

13%

15%

31%

28% T1s/ Cable Modems/DSL

DS3 ( 45Mb)

OC3 (155 Mb)

10 Mb Ethernet

100 Mb Ethernet

Gigabit Ethernet

Other Fiber

Page 17: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 1

September 10, 2013 Slide 1

North Carolina

Research and Education Network

Page 18: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 2

September 10, 2013

Who We Serve… • 17 UNC System Institutions

• 26 of 37 independent colleges

and universities

• 58 Community Colleges

• 115 Local Education Agencies

• (All School Districts)

• 45 Charter Schools

• Healthcare

– 30 Hospitals (Non Profit)

– 70 County Health Agencies and Free clinics

• RTI, NISS, NHC, Burroughs Welcome Fund,

Bio Tech Center, other research institutions

Page 19: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 3

September 10, 2013

Map of Build

Page 20: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 4

September 10, 2013

K-12 Connections “To The Building”

Category Number

Districts 115 (all connected to NCREN)

District Connectivity All fiber based

All Scalable to 1G

District Connectivity 54 with direct fiber

Schools 2400

Schools with fiber 2270

School WAN Premise routing gear in place 10 M/100 M routing to

each fiber based school

School WAN MCNC consulting engineering practice has engaged

each district

Public Charters 45 of 120 connected

Public Charters Premise routing gear in place for 10M/100M

Page 21: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 5

September 10, 2013

K-12 Connections “To The Building”

Category Quantity

Total schools 2331

Schools with 1 WAP per classroom (high) 515

Schools with 1 WAP per 2 classrooms (int.) 928

Schools with 1 WAP per 3 classrooms (low) 818

Schools with 1 to 1 student/device ratio 371 (all in high density

Page 22: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 6

September 10, 2013

Sample Districts – Bandwidth Utilization

0

20

40

60

80

100

120

Avera

ge D

aily 9

5th

Perc

enti

le

Uti

lizati

on (

Mbps)

Avery County Schools

Average Annual Growth: 108%

0

200

400

600

800

1000

1200

1400

1600

Avera

ge D

aily 9

5th

Perc

enti

le

Uti

lizati

on (

Mbps)

Cumberland County Schools

Average Annual Growth: 145%

0

20

40

60

80

100

120

Avera

ge D

aily 9

5th

Perc

enti

le

Uti

lizati

on (

Mbps)

Halifax County Schools

Average Annual Growth: 40%

0

50

100

150

200

250

300

350

Avera

ge D

aily 9

5th

Perc

enti

le

Uti

lizati

on (

Mbps)

Mooresville Graded

Average Annual Growth: 56%

Page 23: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 7

September 10, 2013

Financial Comparison – SCI vs. Before

Category 2006-2007 May 2013

Total Bandwidth

Consumption K-12

7G 45.45G 650% increase

Enrollment 1,390,168 1,474,434

Consumption per

Institution (40

charters and 115

LEAs)

28 M/month 253 M/Month

36K per student daily

Total WAN and

Internet Cost

$13,000,000 $14,000,000 7% decrease

Cost per MG $155 $16.50 for LEA

$54 for Charter

Added Services

Firewall and Filtering

Not addressed in an

aggregated fashion in

2006

$1.37 per student Couldn’t track how

much NC LEAs were

spending in 2006-07

Numbers are kept by E-rate Division of DPI

Page 24: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 8

September 10, 2013

MOREnet Connects Missouri

Page 25: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 9

September 10, 2013

• Of the total CAIs in Missouri, MOREnet connects:

– 86% of Missouri’s 520 public K-12 school districts

– 90% of Missouri’s 146 public libraries

– 93% of Missouri’s 14 public 4-year higher education institutions

– 48% of Missouri’s 25 public 2-year higher education institutions

– 43% of Missouri’s 61 independent higher education institutions

– 3% of Missouri’s 540 private/parochial schools (a new market for us)

Missouri CAIs and MOREnet

Page 26: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 10

September 10, 2013

• Since losing ~$14M in state funding in FY11,

MOREnet has retained nearly 90% of our

connected K-12 members

• From FY12 to FY13, public K-12 member

bandwidth grew a whopping 67%

• In the last 24 months alone 73% of our K-12

sites upgraded their bandwidth

MOREnet’s R&E Value Proposition for K-12 Connectivity

(cont’d)

Page 27: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 11

September 10, 2013

• Members enjoy centralized circuit bidding,

procurement, monitoring, network expertise and

router management services when purchasing

connectivity from MOREnet

• Members benefit from our consortium E-rate

filing and support

• Consortium members leverage reduced costs,

technical expertise, centralized services,

increased buying power and economies of scale

MOREnet’s R&E Value Proposition for K-12 Connectivity

Page 28: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 12

September 10, 2013

Benefits of Demand Aggregation in Missouri

T1 (1.5Mb) 3 Mb 5 Mb 10 Mb 20 Mb 100 MbAverage Pricedecrease for all

bandwidths

FY14 -1.59% -2.21% -2.88% -3.75% -5.00% -8.71% -5.32%

FY13 -4.17% -5.56% -7.14% -9.09% -11.76% -16.54% -10.92%

FY12 -4.00% -5.26% -6.67% -8.33% -10.53% -14.50% -18.05%

FY11 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -2.74%

-45.00%

-40.00%

-35.00%

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

Price Reduction by Bandwidth

Page 29: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 13

September 10, 2013

Missouri Public K-12s Below SETDA’s Recommended

Bandwidth

Page 30: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 14

September 10, 2013

Average Kbps Per Missouri Student

0-1,000

Students

1,001-5,000

Students

5,001-10,000

Students

> 10,000

Students

# of K12 Districts 306 122 17 17

Total Students 119,329 285,183 106,798 282,358

Avg Kbps / Student 30.5 25.3 35.4 24.8

Page 31: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 15

September 10, 2013

E-Rate Eligible Circuits

100

Mbps or

greater

1 Gbps

or

greater

Ethernet *

K12 Districts 52 1 322

Libraries 2 0 102

* Some proportion of Ethernet connectivity is not fiber. Statistics not readily available.

Page 32: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 1

September 10, 2013

Merit Network

Michigan Research and Education Network

Page 33: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 2

September 10, 2013

Merit Fiber

Backbone - Then

Page 34: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 3

September 10, 2013

Merit Fiber Backbone - Now

Page 35: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 4

September 10, 2013

Merit Connects Michigan CAIs

Merit Connects:

• 100% of Public Higher-Ed Institutions

• 78% of Community Colleges

• 31% Private Colleges

• 60% K-12 Intermediate School Districts

• 42% Library Cooperatives

• 10% Healthcare Sites

• 3% State and Local Government

• 9% Other Non-Profits

Page 36: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 5

September 10, 2013

Investing in Fiber Optics

Merit has realized operational cost savings as a result of the

fiber-optic infrastructure constructed with BTOP funds. Merit has

been able to pass those savings on to our Members in the form

of lower bandwidth rates.

Bandwidth Rates Before and After BTOP Funding

Bandwidth

Level

Bandwidth

Rate Prior to

BTOP (2009)

Bandwidth

Rate Today

(2013)

Percentage

of Decrease

Savings

6 Mbps $7,089 $2,160 69.5% $4,929

24 Mbps $27,401 $8,640 68.5% $18,761

100 Mbps $78,104 $36,000 53.9% $42,104

250 Mbps $142,997 $90,000 37.0% $52,997

500 Mbps $208,472 $180,000 13.6% $28,472

700 Mbps $313,950 $252,000 19.7% $61,950

1 Gbps $393,300 $360,000 8.47% $33,300

Page 37: Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 · Re: Notice of Ex Parte presentation in: WC Docket No. 13-184 Dear Ms. Dortch: On Tuesday, Sept. 10, 2013, Jen Leasure

Slide 6

September 10, 2013

Fiber Optics to Schools and Libraries

Case Study #1

Rural School District– Prior to REACH-3MC, school district had a fixed capacity connection to their

local Intermediate School District, which was not able to be upgraded at a price that was sustainable

for the schools. School district was able to take advantage of the REACH-3MC backbone

infrastructure and fiber-optic technologies to establish a fiber connection to the network at 1 Gbps,

providing them the ability to subscribe at 150 Mbps. School district is planning to move more services

to the cloud and has introduced a laptop & tablet program for students. Both of these initiatives would

not have been possible without the BTOP project and by their previous connectivity options.

BTOP Success: This school is in a rural area and without the fiber-optic infrastructure their school

system would not have access to high-speed connectivity at an affordable price. Furthermore, the

infrastructure and connectivity has opened up opportunities for them to provide improved learning and

content to their students.

E-Rate Success: Increased capacity to school building to 1 Gbps and leverage e-rate funding to

support the increased service level based on a fixed cost of $93,897 annually for 3yrs. In the 4 th year,

the fixed annual cost drops to $3,750 saving the e-rate program $90,147 annually. Additionally,

because of Merit’s BTOP infrastructure available in the area the school system was able to put on the

ballot a millage that was approved by the citizens to help bring 21st century network to their school

system.

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Slide 7

September 10, 2013

Fiber Optics to Schools and Libraries

Case Study #2

Library Cooperative– Prior to REACH-3MC, Co-op had 2 libraries connected via fiber, and 20

libraries connected via 1 or 2 leased T1 circuits. Merit was able to connect 14 libraries via 1

Gbps fiber. This capacity upgrade has begun to bring more interactive content opportunities to

these libraries located in rural parts of Michigan’s Upper Peninsula.

BTOP Success: The libraries are located in rural areas of the Upper Peninsula, with no cost-

effective and scalable connectivity options beyond leased T1 circuits. The BTOP-funded fiber-

optic infrastructure enables them to share more services over the network and bring more

interactive/video content into the libraries. The libraries also have the ability to source

interactive content to other locations.

E-Rate Success: Increased capacity to each library from 1.5 Mbps or 3.0M bps to 1 Gbps at

an ongoing fixed cost for each location. The cost per location for a 1 Gbps connection is:

$3,150 annually, plus a share of the aggregated Internet bandwidth.

The key success here is the ability to provide high-speed connectivity to these rural libraries

as part of Merit Network’s On-Net service.

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Slide 8

September 10, 2013

Making the Case:

Fiber Optics for Schools and Libraries

Description

Current

Capacity

Level

Current OpEx

Annual

Recurring

E-Rate Circuit

Costs

CapEx

Cost to

Build

Fiber

New

Capacity

Level

New OpEx

Annual On-going

Cost to E-Rate

Program

On-going

Savings to

E-Rate

Program Notes/Comments Network Usage

with Fiber

Northern

Michigan Rural

K-12 School 3.0 Mbps $11,700 $25,084 1 Gbps $3,000 ($8,700)

When the school

needs more capacity

the current cost

would increase by

$5,700/T1

Pent-up demand

went from 3.0 Mbps

to 60 Mbps

Northern

Michigan Rural

Library 3.0 Mbps $12,000 $5,538 1 Gbps $2,250 ($9,750)

Same as above, this

site T1 cost is also

$5,700.

Pent-up demand

went from 3.0 Mbps

to 20 Mbps

Upper

Peninsula

Michigan

Library

3.0 Mbps $4,800 $12,481 1 Gbps $1,950 ($2,850)

Same as first

example above,

however, the cost of

a T1 $2,400.

Pent-up demand

went from 3.0 Mbps

to 10 Mbps and

growing

Upper

Peninsula

Michigan K-12

School

1.5 Mbps $5,970 $15,077 1 Gbps $1,950 ($4,020)

Same as first

example above,

however, the cost of

a T1 $3,600

Pent-up demand

went from 1.5 Mbps

to 10 Mbps to 20

Mbps and school

hasn't started yet.

Totals $34,470 $58,180 ($25,320) Total Annual Savings

to E-Rate Program

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2442 NW Market Street #68

Seattle, Washington 98107 www.thequilt.net

September 10, 2013 The Quilt and Its Members

Who is The Quilt? The Quilt is a non-profit 501(c)(3) corporation that represents over 30 of our country's most advanced state research and education networks (RENs). The Quilt is a member-funded organization which receives significant volunteer contributions from its participants to support our initiatives. As a network of networks, The Quilt is a trusted forum where our members come together to exchange ideas, share best practices, leverage expertise and speak with a single voice on issues of common interest. With similar missions, these organizations collaborate at a national level to collectively advance networking in support of the research and education goals of the institutions each serve.

Most of the state network members of the Quilt began service by providing high-capacity data services to higher education. Over time, and with the help of the BTOP program, many of our networks have expanded to provide broadband services to schools, libraries, state and local government agencies, non-profit organizations, health care, and private industry engaged in research and educational partnerships. About ½ of our members participate in the E-rate program, either as consortium filers (4 organizations) filing on behalf of a number of their member institutions, or as an Internet access service provider (10 organizations).

While all our members are non-profits, they are funded, governed and structured differently. These fundamental aspects of the organizations reflect the diverse and complex environments of the communities and states in which they operate.

34% of Quilt members are 501c3 non-profit corporations; 40% of Quilt members are university-based organizations; 26% of Quilt members are either a division of the State Board of Regents, State Dept. of Higher

Education or another State Government agency.

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September 10, 2013 The Quilt and Its Members Contact: Jen Leasure, President, The Quilt at [email protected]

R&E Networks Are Bridging the Gap to Schools, Libraries and Other Community Anchor Institutions (CAIs)

Research and education networks (RENs) have several core competencies that allow them to provide high-value services to schools and libraries, such as:

Per their missions, research and education networks (RENs) are instrumental in providing access to advanced networking services to extended communities that would otherwise not have access to such services, including higher education institutions, K-12 schools, libraries, state and local government agencies, health care, and other non-profit organizations.

Most R&E Networks own and control their own middle-mile and some last mile network infrastructure. This allows R&E Networks to respond to the unique requirements of community anchor institutions (CAIs) and support the sustained increases in bandwidth utilization by these institutions over time.

As consortium purchasers, R&E Networks have a successful history of forming lasting public/private partnerships with commercial telecommunications carriers and other industry partners. These partnerships have resulted in the ability for schools, libraries and other CAIs to cost-effectively access R&E Networks’ shared infrastructure while increasing revenue and lowering administrative costs for these commercial partners. (This benefit was specifically recognized in the National Broadband Plan, p. 154). The positives of consortium purchases extend into technical support where consortium buyers often get higher priority in technical support. Consortium buyers often get access to flexibly priced last mile circuits that allow connectors to grow into higher bandwidth commitments in an economical and efficient fashion.

R&E Networks have been designed to meet the needs of some of the most demanding Internet users in

the country: scientists, academics and researchers in our nation‘s leading academic institutions. These networks are engineered to support high-quality services that are consistent regardless of the number of users on the network. The networks must readily adapt to new experiments or projects that place new demands on the network. The network speed, quality, flexibility and support offered by R&E Networks also provide schools and libraries with exceptional service that adapts easily to specific demands of these users.

Many of these R&E Networks received BTOP grant funding to build out middle mile infrastructure, upgrade broadband connections and add new connections to community anchor institutions in their states. These projects resulted in lower costs and increased capacity to K-12 schools and libraries and other community anchor institutions that previously did not have such broadband access at affordable prices.

8 Quilt Member BTOP CCI Recipients:

Almost 13,000 new, upgraded or leased fiber miles Over 4,000 new and upgraded community anchor institutions connections

3 Quilt Member BTOP CCI Sub-recipients Over 5,200 new, upgraded or leased fiber miles

Over 700 new and upgraded community anchor institutions connections