Public Schools of North Carolina State Board of Education Department of Public Instruction

ReporttotheNorthCarolinaGeneralAssembly

School Connectivity Initiative

SL2007-323(HB1473),SECTION7.28.(d)DateDue:January15,2017Report#44DPIChronologicalSchedule,2016-2017

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STATE BOARD OF EDUCATION

SBE VISION: Every public school student will graduate ready for post-secondary education and work, prepared

to be a globally engaged and productive citizen.

SBE MISSION: The State Board of Education will use its constitutional authority to lead and uphold the system of

public education in North Carolina.

WILLIAM COBEY

Chair :: Chapel Hill – At-Large

A.L. COLLINS

Vice Chair :: Kernersville – Piedmont Triad Region

DAN FOREST

Lieutenant Governor :: Raleigh – Ex Officio

DALE FOLWELL

State Treasurer :: Raleigh – Ex Officio

MARK JOHNSON

Secretary to the Board :: Raleigh

BECKY TAYLOR

Greenville – Northeast

Region

REGINALD KENAN

Rose Hill – Southeast Region

AMY WHITE

Garner – North Central

Region

OLIVIA OXENDINE

Lumberton – Sandhills

Region

GREG ALCORN

Salisbury – Southwest Region

TODD CHASTEEN

Blowing Rock – Northwest

Region

WAYNE MCDEVITT

Asheville – Western Region

ERIC DAVIS

Charlotte – At-Large

PATRICIA N. WILLOUGHBY

Raleigh – At-Large

NCDEPARTMENTOFPUBLICINSTRUCTIONMarkJohnson,StateSuperintendent301N.WilmingtonStreet::Raleigh,NorthCarolina27601-2825Incompliancewithfederallaw,theNCDepartmentofPublicInstructionadministersallstate-operatededucationalprograms,employmentactivitiesandadmissionswithoutdiscriminationbecauseofrace,religion,nationalorethnicorigin,color,age,militaryservice,disability,orgender,exceptwhereexemptionisappropriateandallowedbylaw.

Inquiriesorcomplaintsregardingdiscriminationissuesshouldbedirectedto:

Dr.RebeccaGarland,DeputyStateSuperintendent6368MailServiceCenter,Raleigh,NC27699-6368::Telephone:(919)807-3200::Fax:(919)807-3388

VisitusontheWeb::www.ncpublicschools.org M0116

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SCHOOLCONNECTIVITYINITIATIVELegislativeUpdate

Submittedto:

JointLegislativeOversightCommitteeonInformationTechnology

JointLegislativeEducationOversightCommittee

OfficeofStateBudgetandManagement

StateChiefInformationOfficer

FiscalResearchDivision

PreparedbyConnectivityandE-rateServicesSection

TechnologyServicesAreaNorthCarolinaDepartmentofPublicInstruction

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FOREWORD

The School Connectivity Initiative (SCI) was created by Session Law 2007-323 SECTION 7.28.(d) asfollows:

SECTION7.28.(b)AsrecommendedintheJointReportonInformationTechnology,February2007, the State Board of Education shall contractwith an entity that has the capacity ofserving as the administrator of the School Connectivity Initiative and has demonstratedsuccess in providing network services to education institutions in the State. The fundsappropriated inthisactshallbeusedto implementaplanapprovedbytheStateBoardofEducationtoenhancethetechnologyinfrastructureforpublicschoolsthatsupportsteachingandlearningintheclassrooms.Theplanshallincludethefollowingcomponents:

(1) Abusinessplanwithtimelines,clearlydefinedoutcomesandanoperationalmodelincludingagovernancestructure,personnel,E-ratereimbursement,supportservicestoLEA’sandschoolsandbudget;

(2) Assurancesforafairandopenbiddingandcontractingprocess;(3) Technologyassessmentsitesurveytemplate;(4) Documentationofhowthetechnologywillbeusedtoenhanceteachinginlearning;(5) DocumentationofhowexistingState-investedfundsfortechnologyaremaximized

toimplementtheschoolconnectivityinitiative;(6) Thenumber,locationandscheduleofsitestobeservedin2007-2008andin2008-

2009;and(7) Assurances that localschooladministrativeunitswillupgrade internalnetworks in

schools, provide technology tools, and support for teachers and students to usetechnologytoimproveteachingandlearning.

The NC State Board of Education approved the School Connectivity Initiative Implementation andOperating Plan on Thursday, August 2, 2007. The SCI program was managed through the NC ITSEnterprise Project Management Office supervising projects that gained initial EPMO approval inSeptember2007.WithintheImplementationandOperatingPlanwerethefollowingdeliverables,allofwhichwerecompletedin2009:

• All 115 Local Education Agencies (LEAs) connected to MCNC’s North Carolina Research andEducationNetwork(NCREN)

• EstablishmentofClientNetworkEngineeringServicesforLEAs• EstablishmentofE-rateFilingAssistanceBureau• DevelopmentofaTechnologyMasterPlan• DevelopmentofGovernanceandFundingPlans

EachyearsincetheinceptionoftheSCIprogram,theStateBoardofEducationandtheDepartmentofPublic Instruction produces a School Connectivity Initiative Report that summarizes the fiscal andfunctionalperformanceoftheprogramandprovidesinsightsintotheworkofthecomingyear.

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“High-speed broadband connections to schools andadvancedWi-Fi insideclassroomshavebecomeessentialtoolsforteachersandstudents.AmajorconclusionoftheFCC'srecentmodernizationoftheE-rateprogramisthatlocal jurisdictions benefit substantially from state-levelassistance in the design, procurement, and ongoingsupport of this complex communications infrastructure.Inournationwide reviewof stateapproaches,we foundNorthCarolina'smodeltobeoneofthemosteffectiveinthe country. State-level support in North Carolina notonly with matching financial resources but alsopurchasing and technical expertise from a dedicatedprofessional staff at the state level has had a majorpositive impact for schools across North Carolina thatstandsoutasaleadingnationalexample.”

JonWilkinsChiefoftheWirelessTelecommunicationsBureau

FormerManagingDirectorFederalCommunicationsCommission

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BACKGROUND

TheSchoolConnectivityInitiativelaunchedinearnestwiththepublicationoftheDevelopingRegionalEducationNetworksreportinMay2006.InthetenyearssincetheinceptionoftheSCIprogram,NCpublicschoolshaveprocurednearly$800,000,000innetworkservicesandinfrastructurewithStateappropriationstotaling$184,000,000leveragedagainstover$600,000,000infederalcommunicationscommission(FCC)E-ratediscountfunding.Duringtheten-yearstretch,thetelecommunicationsandcomputingmarketshaveshifteddramatically,theregulatoryenvironmenthasbeeninnearconstantflux,andtheNClegislaturehascalledforandinvestedinadigitaltransitioninpublicschools.Perhapsmostimpressively,NCpublicschoolsInternetusagehasgrownfromabout1000Megabitspersecond(Mbps)in2009toover98,000Megabitspersecondatthewritingofthisreport–withasimilargrowthforecastfortheforeseeablefuture.

Asillustratedbythetimelineabove,theSCIprogramhasexhibitedextraordinaryproductivityandopportunisticadaptabilityoveritsten-yearhistory.Justafewhighlightsinclude:connectingallLEAstotheNCResearchandEducationNetworkusinganopt-inapproach;establishingtheCertifiedEducationalChiefTechnologyOfficer(CeCTO)trainingprogram;developing,designingandimplementingtheNCEdCloudidentityandaccessmanagementservice;partneringwithMCNCandtheGoldenLeafFoundationtobringcompetitivefiberconnectivitytoruralNCschoolsandlibraries;and,adaptingtotheNCDigitalLearningPlan,theFCCE-ratemodernizationorder,andthegrowthof1:1programsfueledbythereleaseofinexpensivecomputingdevices.WhiletheSCIteamhasaccomplishedmuchinitsfirstdecade,therearemanyopportunitiesonthehorizon.SCIleadershiphasinitiatedSCI2.0toestablishtheprioritiesandframeworkforschoolconnectivityinnovationandsupportmovingforward.

Thebalanceofthisreportprovidesasummaryof2016accomplishments,afinancialsummary,capacityandusagesummary,considerationsfor2017,andappendicescontainingdetailedsupportingdata.

20082006 2010 2012 2014 2016

2007 2009 2011 2013 2015

May2006DevelopingRegionalEduca1onNetworks

All115LEAsconnectedtoNCRENMay2009

June2014FirstE-ratemoderniza1onorder

MCNCcompletesfinalphaseofBTOP-GLFfiberexpansionAugust2013

NCDigitalLearningPlanpublished.NClegislatureadds$12M[R]toSCI.September2015

November2010Inauguralclassof34CeCTOstudentsgraduate

NCLegislatureFundsSCIwith$12M[R]July2007

February2012NCEduca1onCloudIden1tyandAccessManagementplanpublished

August2008NCLegislatureadds$10M[R]foratotalof$22M[R]

November2016SCI2.0launch

GoogleintroducesChromebookMay2011

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EXECUTIVE SUMMARY

TheSchoolConnectivityInitiative(SCI)continuestodeliverhighqualityInternetaccess,clientnetworkengineering,Identityservices,E-ratesupportandfundingthatbenefitallNCpublicschools.PursuanttotheAppropriationsActof2015(S.L.2015-241),the2016-17SCIbudgetis$31.9M.Majorcalendaryear2016SCIaccomplishmentsinclude:

- UpgradedInternetaccessto46LEAsand100charterschools–addingover40GbpsofaggregateInternetcapacity;

- Connected16newcharterschoolstotheNCResearchandEducationNetwork(NCREN);- Providedfirewallservicesto75LEAsand95CharterSchools;- Providedwebsecurity(Internetfiltering)servicesto79LEAsand92CharterSchools- Supported51LEAsand40charterschoolswithclientnetworkengineering(CNE)support

services,through148totalCNEengagements(91LEAand57charterschool);- Continuedtofocusonhigh-quality,cost-effectivetrainingforpublicK-12network

administratorsinNorthCarolina.Partoftheprofessionaldevelopmentmodelistocontractwithprofessionaltrainersandindustryexpertsforthreetofive-dayintensivetraininginstitutes.In2016thisincludedawirelesscertificationcourse,andasaresult,twentyLEAandcharterschooltechnologypersonnelreceivedahighlyregardedCertifiedWirelessNetworkAdministrator(CWNA)certification;

- Managedawirelessinfrastructureandservicesprocurementsupportingover$55Minpurchasesfor72LEAsand25charterschools.

- Issuing(inDecember2016)arequestforproposalssolicitingnewpricingforInternetaccessservices.

SupportingNorthCarolina’sDigitalLearningPlanReliableandconsistentnetworkaccessattheclassroomandindividualdevicelevelisimperativetosupportingdigital-agelearningenvironmentsinourpublicschools.IntheinitialeightyearsoftheSCI,thefocuswasonhighperformanceandhighlyavailableInternetaccessdeliveredtothedistrictandtoschoolbuildings.Theresultingoperatingandsupportmodelsforconnectivitytotheschoolservestudentsandeducatorswell.Thefocusinthemostrecenttwoyearshasshiftedtoprovidingsimilarreliabilityandperformanceinsideoftheschool.TheSCIteamhasworkedwithLEAsandcharterschoolstoupgradeclassroomconnectivity,targetingsummerof2018tohaveallschoolsandclassroomsservedwithsustainabledigital-readyschoolnetworks.In2015and2016,NCLEAsandcharterschoolshaveinvestednearly$98Mininternalschoolinfrastructureandservices,supportedbytheSCIprogramandrequiringonly$14MinappropriatedStatefunds–withtheremaining$84McoveredbyE-rate($75M)andUSEDRttTfunds($9M).The2016-17legislativeexpansionofSCIfundingby$12MrecurringisimperativetosustainingreliableNCschoolnetworks.OptimizingSchoolConnectivityEfficiencyandReturnOnInvestmentWhiletheSCIplanning,design,anddeploymenthasfocusedonupgradingclassroomconnectivity,wecontinuetoemphasizeefficiencyandreturnoninvestment.EfficiencyofoperationwillalwaysbeimportantfortheSCIprogramasusagecontinuestogrowataphenomenalpace–andthoughconnectivityservicecostscontinuetodrop,theincreaseinusageandtheadditionofatleastadozencharterschoolsperyearcaneasilymakeforasteeperrisethancanbeaccountedforwithcostdecreases.Further,throughmodelingandforecastingwearedevelopingapproachestooptimizingE-ratereturnsandtoinformdistrictfiberconnectivitybuild-versus-buydecisions.

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TheSchoolConnectivityInitiativedeliversservicestoLEAsandcharterschoolsalikethataddresspressingneedsinanever-changingenvironmentthatmovesatInternetspeed.“IwishtotakeamomenttosharehowimportantthepartnershipbetweenAveryCountySchoolsandMCNCistoourstudents,staffandcommunity.Inthesummerof2011,AveryCountySchoolswasabletoenterintoadistrict-wide1:1instructionalprojectthatprovidedaniPadforeverychildandstaffpersoningradesK-5andaMacBookforeverystudentandstaffpersoningrades6-12.OurInternetutilizationimmediatelywentfromlessthan1000computersusedoccasionallythroughouttheschooldaytoover2500devicesinuseconsistentlyalldaylong.TheconnectivityaffordedtousbyNCRENgivesourschoolcommunitystable,scalableandeffectiveaccesstocontent,servicesandotherresources.ThefundingprovidedthroughtheNCConnectivityProjectthatoffsetstheunfundedE-ratediscountedcostsofconnectivityletsusapplylocalfundstowardothercriticalneedsandhelpsusworktowardourvisionofbeinganationalmodelofeducation.WeareverygratefulforthesupportandserviceprovidedbyMCNC.”

DennisBrownChiefTechnologyOfficer

AveryCountySchools“This<wirelesscertification>classwasabsolutelyincredible.It'sprobablythebestclassI'veevergonethroughwhereIlearnedsomuchdailythatdirectlyimpactsmyday-to-dayjobroleandscopeatwork.Theinstructorwasincredible.Ireallyappreciatehimteachingitfromtheperspectiveofteachingusatechnologyfirst,learningsomething,thenthetestsecond.Evenwiththatstylehepreparedussowellforthetestsoit'sawin-win.Ijustcan'tsayenoughgoodthingsaboutthisexperience.”

JeremyFisherNetworkAdministratorHarnettCountySchools

“MyworkwiththeCNEteambeganinSpring2015witharequestforanetworkassessment.Basedonthefindingsinthereport,wedrewupplansforanewnetwork,pricedoutvariousplatformsfromdifferentvendors,andleveragedE-rate2.0moniesfortheeventualpurchase.OurworkculminatedinSummer2016withtheinstallationandconfigurationofthenewnetwork,whichtheCNEteamhelpedwith,goingsofarastohelpphysicallymountswitchesandruncablinginthenetworkclosets.Overthose15orsomonths,theCNEteamconsistentlyprovidedahighlevelofservice,andtheresultingproductisofveryhighquality.”

EvanMenchiniTechnologyDirectorVoyagerAcademy

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PERFORMANCE OVERVIEW

Financial Summary For2016theSchoolConnectivityInitiativeisa$125Mprogramsupportedwithlegislativefundingof$31.9MleveragedagainstFCCE-rateprogramreimbursementsinexcessof$93M.ThetablebelowsummarizesSCIcostsandrelatedStatefundingandFCCE-ratereimbursements.

MostSCIexpensesareeligibleforFCCE-ratediscounts.E-rateeligibleexpensesaregroupedintoCategory1andCategory2.Category1expensesincludehigh-speedfiberoptic1connectionstoschoolsanddistrictsandInternetbandwidthcharges.Category2expensesincludewirelessandwiredinfrastructureandservicesdeployedinsideschoolstoconnectclassroomstotheInternet.For2016,thetotalcostofE-rateeligibleexpensesisinexcessof$121MwithE-ratediscountsofover$93MleavingaStateshareof$28.1M.The$3.8MbalanceofSCIexpensescomprisesnon-E-rateeligibleservicesincludingidentityandaccessmanagement,clientnetworkengineeringsupport,andprogramadministration.Specifically,SCIprogramexpensesincludethefollowing.

1. Category1SchoolFiberConnections–MostLEAscontractwithprivateproviderstoconnecttheirschoolsintoadistrictnetworkviahigh-speedfiberopticconnections2.PrivateprovidersincludeTimeWarnerCable,AT&T,CenturyLink,Broadplex,Conterra,andothers.TheseschoolconnectionsareeligibleforFCCE-ratediscountsofupto90%.TheSCIprovidessupportandtraininginacquiringschoolconnectionsandprovidesfundingallotmentstocoverthenon-discountshareofcoststoallNCLEAs.NCDPIcalculatesallocationsbasedonactualcontractsandinvoicesanddeliversfundingviaPRC073.SincetheinceptionoftheSCI,fundingtotals

1Over99%the2694schoolsinNorthCarolinaareconnectedviafiberopticconnection–theremaining22schoolsareconnectedviaahighspeedwirelesssolution,with9ofthoseslatedtotransitiontofiberinthecomingyear.2AdozenNCLEAsconnectschoolsviafiberthatisownedandmanagedbyeithertheschoolsystemoracommunitycollaborative.SCIprovidesfundingallotmentstothesedistrictsbasedonactualmaintenancecosts.

TotalCost E-rateShare StateShareCategory1SchoolFiberConnec3ons $43.2M $34.0M $9.2MCategory1Consor3umInternet-LEAs $17.7M $14.2M $3.5MCategory1Consor3umInternet-charters $3.3M $2.1M $1.2MCategory2ClassroomConnec3ons $57.5M $43.3M $14.2ME-rateEligibleTotals $121.7M $93.6M $28.1MIden3tyandAccessManagement $1.5M - $1.5MClientNetworkEngineering $1.6M - $1.6MProgramAdministra3on–NCDPIandFI $0.7M - $0.7MNonE-rateEligibleTotals $3.8M - $3.8MGrandTotals $125.5M $93.6M $31.9M

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haveremainedinthe$9Mto$10Mrange–evenwithsubstantialupgradestoschoolbandwidthandserviceseachyear.

2. Category1ConsortiumSchoolInternet–CoretotheSCIisthatallNCLEAsandcharterschoolshaveaccesstoreliablehigh-speedInternetaccessviatheNCResearchandEducationNetwork(NCREN)managedbyMCNC–thesamenetworkthatprovidesInternetaccesstotheUNCsystemuniversities,NCcommunitycolleges,mostNCprivatecollegesanduniversities,andallofStategovernment.Internetconnectionsaremonitoredandupgradedondemandasusageexceeds60%ofavailablecapacity.CharterschoolshavetheoptionofeitherreceivingaperADMallotmentviaPRC0363orreceivingState-fundedInternetaccess.

3. Category2ClassroomConnections–InSpringof2016,NCLEAsandcharterschoolsprocured

over$57Minclassroomconnectivityinfrastructureandservices;over$55MofthoseprocurementsusedcontractsestablishedbyNCDPIin2015.TheSCIprovidessupportandtraininginacquiringinternalschoolinfrastructureandprovidesfundingallotmentstocoverthenon-discountshareofcoststoparticipatingLEAsandcharterschools.NCDPIcalculatesallocationsbasedonactualcontractsandinvoicesanddeliversfundingviaPRC073toLEAsandPRC036tocharterschools.

4. IdentityandAccessManagement–The2015appropriationsactexpandedtheSCIbudgetby

$12MannuallyeffectiveFY2016-17.Identityandaccessmanagement(IAM)servicesareincludedintheexpansionbudget.NCEdCloudIAMservicesprovideforasingleuserIDandpasswordforstudents,facultyandstafftoaccessnetworkaccessiblecontent.IAMservicesautomatetheprovisioningandmanagementofnearly2.5millionuseraccountsandtheintegrationofthoseaccountswithcloud-basedapplicationsandservices.NCDPImanagestheNCEdCloudIAMservice,includinga$1.5Mperyearcontractwithanidentityservicesprovider.

5. ClientNetworkEngineering(CNE)–MCNCprovidesCNEservicesundercontracttoNCDPI.LEAs

andcharterschoolsengageMCNCforhigh-leveltroubleshooting,networkdesignconsultation,andrelatedtrainingservices.NCDPIalsoengagesMCNCdirectlythroughtheCNEcontracttoprovidespecificnetworkandCloudservicesmanagementfunctionsforLEAsandcharterschools.MCNCbillsquarterlyforactualhoursservingdistrictsandcharterschools.TheCNEcontractallowsforupto$1.6Minbillingsforthe2016fiscalyear.

6. ProgramAdministration–SCIprogramadministrationincludesNCDPIschoolconnectivitystaff,

Fridayinstitutecontractsupport,andrelatedtravelsuppliesandmaterialscosts.SixNCDPIstaffmembersprovidetechnicalconsulting,E-ratetraining,andrelatedSCIsupportatacombinedsalaryexpenseof$409,0004.AFridayInstitutecontractprovidesforplanning,design,forecasting,modeling,anddocumentationsupportatanannualcostof$215,000.ItisnotablethatadministrativecostsassociatedwithmanagingtheSCIaccountforlessthan2.5%ofthe$31.9MStateappropriationand0.6%ofthe$125Mtotalannualcostofservices.

3PRC036allotmentsarecalculatedbasedontheperADMsumofCAT1fiberconnectionsandconsortiumInternetinthehostcounty/LEA.4SCIprovisionallanguageallowsforupto8FTEand$1M.SeeAppendixC–ConnectivityStaffSalaryReportfordetails.

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TheSCIprogramhassubstantialfunding,budgeting,procurementandoversightelementsthatareimperativetothedeliveryofreliableconnectivitytopublicschools.ItisthroughtheClientNetworkEngineeringandE-rateservicesthatmanyLEAandcharterschoolstaffinteractwiththeSCIprogram.“AsthenewCTOinChapelHill-CarrboroCitySchools,gettingathird-partyassessmentofourdistrict'snetworkhealthwasafundamentalneedinbeingabletoguaranteethedigitalservicesthatareindispensabletoteachingandlearningtoday.Iknewfrompreviousexperiencethatcomprehensivethird-partyassessmentscanbeprohibitivelyexpensive.IlearnedabouttheofferingsofMCNCandhowtheycouldhelp.MCNCwasincrediblyquicktorespondforaninformalmeetingtodiscussourneedsandinestablishingatimelineforournetworkassessment.Theassessmentwereceivedwasincrediblydetailed,andisbeingsupportedbytheengineerwhocompletedtheassessment,asheisabletocomebackandhelpusdevelopaprojectplantorealizethereport'srecommendations.Tohaveaccesstothislevelofexpertiseiscriticalinhelpingusensureweprovideasafeandsecurenetworkforourstaff,students,andparents.”

DanielCurry-Corcoran,PhDChiefTechnologyOfficer

ChapelHill-CarrboroCitySchools“LakeNormanCharterlaunchedafull1:1technologyinitiative(1:World)inthe2014-2015schoolyearthathaspositivelyandsignificantlychangedhowourstudentssynthesize,collaborateandcreativelyinpresenttheirwork.Simplyput,wouldnothavebeenpossiblewithoutMCNC’ssupportandInternetconnection.Aswepreparedtomoveforwardwiththeprogram,MCNCprovidedfrequentconsultationandwhenneeded,anon-siteengineertohelpustoprepareourinfrastructure.Theyhavealsocontinuedtohelpmonitorourusageneedsandprovidedmorecapacityasthestudents&staffexpandedtheirusage.WearegratefultohavehadMCNC’ssupporttohelpustomakethistransformationalshiftatLNC!”

ShannonSteinSuperintendent

LakeNormanCharterSchool“JeanneneHurley<LeadE-rateAnalyst,NCDPI>providesaninvaluableservicetotheLEAsacrossNorthCarolina,training,assistingandgenerallyinformingdistrictsonnavigatingtheE-Rateprogramforschoolsandlibraries.AtWataugaCountySchools,wehavereliedheavilyonhertrainingandguidanceinordertocomplywiththemanyaspectsofE-Ratefiling,whichissocriticaltothesuccessofthetechnologyinourschools.TheimportanceofthecommitmentthatNorthCarolinahasmadetotheE-Rateconsultantssupportingourdistrictsandultimatelyourstudentscannotbeoverstated.”

NancyZeissDirectorofTechnologyServices

WataugaCountySchools

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Capacity and Usage Summary Internetusagecontinuestogrowasdistrictsaddmoredevices,allowstudentstobringtheirowndevices,andemploymoreonlineresourcesforinstruction.MCNCbillstheStateforInternetBandwidtheachmonthbasedonacontractedbandwidthlevelforeachdistrictandcharterschool.Therearetenbandwidthlevelsrangingfrom100Mbpsto15,000Mbps(i.e.,15Gbps).AsLEAsandcharterschoolsexceed60%usagemeasuredagainstthebandwidthservicelevel,theSCIteaminitiatesupgradestothenexthighestservicelevel.

ThechartaboveillustratestheCY2016month-over-monthgrowthincontractedInternetbandwidth.ThemonitoringandupgradeprocessensuresthatschoolshaveaccesstoenoughInternetcapacitytosupportgrowthindevicesandapplicationswhileatthesametimeprotectingagainstexpendingfundsforover-provisioning.Aggregatecontractedbandwidthgrewfrom140GbpsinDecember2014toover171GbpsinNovemberof2015.Eachbarshowsthebandwidthcontributionineachofthetenservicetiers.TheSCIteamregularlyworkswiththeserviceprovidercommunitytoaddnewservicetieroptionstoaccommodategrowthasefficientlyaspossible.Tothatend,a15GbpstierwasaddedinDecember2015forWakeCountySchoolsandCharlotte-MecklenburgSchools,bothofwhomtransitionedfromthencurrent10,000Mbpsservices.TheSCIteammanagestheschedulingofupgradestoavoidaddingnewservicesandexpenseduringthesummermonths.Asillustratedinthechartbelow,onlytwoLEAsremainatthelowest100Mbpsservicetier,while66LEAsenjoyatleast1000Mbps(1Gbps)ofInternetcapacity–withthose66LEAsrepresentingnearlyninetypercentofthestudents.

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Aggregatebandwidthusagecontinuedthetrendofphenomenalyear-over-yeargrowthincalendaryear2016.Alltold,K12isthelargestsingleuserofMCNC’sNCRENbackbone,contributingdoublethetrafficoftheUNCsystem,theindependentcollegesanduniversities,andthecommunitycollegesystem,combined.MCNC’snetworkcontinuestoperformexceedinglywell–maintaininghighavailabilityandlowdelay.Furthermore,MCNCpeering,commodityoffload,andcachingsolutionskeepcontentclosetotheusersandkeepcostsincheck–evenasusagedoublesyearoveryear.

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Thegraphaboveplotscontractedbandwidthagainstpeakdaily95thpercentileutilizationandperstudentutilizationoverthemostrecentthreeyears.Peakdaily95thpercentileutilizationrepresentstheaggregatepeakdayforeachmonthwhileperstudentutilizationrepresentsthemonthlyaverageacrossalldistricts.Trackingbothpeakandaverageinformsdecisionsrelatedtodefiningenoughbandwidthandenoughheadroom.Peakdaily95thpercentileutilizationforNovember2016is121Gbpswhileperstudentutilizationis82Gbps.Ayearagopeakwas91Gbpsandaverageperstudentutilizationwas61Gbps.

Internal Connections Summary SessionLaw2015-241expandedSCIfundingtosupportthesustainabilityofinternalschoolconnections–adding$2Min2015-16and$12Mrecurringin2016-17.During2015,theSCIteamestablishedadozencontractsforwirelessandwirednetworkequipmentandrelatedservices.In2016LEAswrotepurchaseordersagainsttheseSCIcontractstotalingover$55M.Thetablebelowsummarizes2016E-ratecategory2internalconnectionsprocurementsbydiscountpercentage.MostNCLEAsreceive80%discountsonE-rateeligibleinternalconnectionsproductsandservices–accountingfor$35Mofthe$55.6Min2016procurements.NCpublicschoolsrequested$41.8MinE-ratefundingforanaggregatediscountrateof75%.

Withaninvestmentofover$42Min2015and$55Min2016,theSCIprogramhasmadesubstantialprogressintheprovisionofdigital-readyclassroomsinNCpublicschools.Accordingtothe2016DigitalLearningandMediaInventory(DLMI)data,70%ofNCschoolsreportatleastonewirelessaccesspointperclassroom–oneindicatorofdigitalreadiness.Atthecurrentupgradeandinstallationpace,thetargetistohaveallNCschoolsattheoneaccesspointperclassroomstandardbyJune30,2018.Itisnotablethatmorethan72%ofcharterschoolsrespondingtotheDLMIsurveyreportlessthanoneaccesspointperclassroom.Duetovariationsincharterschoolfacilitiesandclasssize,ascomparedtotraditionalpublicschoolcounterparts,accesspointcountsarealessreliableindicatorofdigitallearningreadiness.Moreover,trackinginvestmentsininfrastructureandservicesprovidesalimitedviewofreadinessrelatedtoclassroomaccess.Therearemanyoperationalelementsofinternalschoollevelinfrastructureandservicesthatarenoteasilymeasuredinacomprehensivemanner.Itwillbeimportanttounderstandtheseoperationalconsiderationsinordertohaveamoreaccuratepictureofactualdigitalreadiness.

E-RateDiscount%

TotalContractCost

E-RateFundingRequest

NumberofLEAs

%ofTotalE-Rate

Commitments %ofLEAs85 $4,501,558 $3,826,324 24 9.2% 24%80 $35,750,928 $28,600,742 42 68.5% 43%70 $2,479,172 $1,735,420 4 4.2% 4%60 $12,111,815 $7,267,089 13 17.4% 13%50 $384,802 $192,401 6 0.5% 6%40 $389,645 $155,858 8 0.4% 8%20 $20,160 $4,032 1 0.0% 1%

Total $55,638,080 $41,781,867 98

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CONSIDERATIONS FOR 2017

Classroom connectivity performance monitoring ExploretheuseofnetworksensorsandapplicationsthatcanbeusedbyschoolanddistricttechnologystaffandteachersintheclassroomtomeasureschoolWi-Fiperformanceatspecifictimes,suchasbeforestandardizedtestsorwhenstreamingvideoperformanceispoor.

Efficiency in procurement of school f iber connections Investigateregionalconveniencecontractsforexternalschoolconnectivityservicesthatincludedarkfiberoptionstoincreasecompetition.ConsidermakingPRCfundingtiedtoefficiency,similarlytohowtransportationisfunded.

Firewall and web security funding Increasefundingforwebfiltering,firewallservicesandothersecurityandprivacymeasuresthatmaybedeemedprudentinordertomitigatenetworkrisks.Someoftheseserviceswerepreviouslyfederallyfunded,buttheyarenolongereligibleforE-ratefundingafterthechangesmadetotheprogramin2015.

Procurement Policy InvestigateprocurementprovisionthatallowsDPItoestablishcontractsforLEAstoincludelibrariesandanyotherStateentitythatiseligibleforE-rate.Modifythatstatute(SL2013-360Section7.6)sothatthecontractsbidfromtheUniversity(orspecificallyNCSU)canbeusedbyanLEAorlibrary.

SCI 2.0 WiththeexpansionoftheSCIbudgetandscope,coupledwithchangesinthemarketplaceandinE-raterules,theSCIteamwillbereshapingtheSCIprogramduringcalendaryear2017.Thereshapingwillinclude:

• Establishingschoolfiberbuildandwideareanetworkprocurementguidelines;• Establishingfairandefficientallotmentstrategiesforinternalconnectionfunding;• DevelopingastrategyforaddressingthegrowingissueofCharterSchoolbandwidthcosting

disproportionatelyhigherperstudentascomparedtoLEAs;• Developingstrategiesformoregranularmonitoring–includingcontentandapplicationusage

statistics;

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SUPPORTING DOCUMENTATION

LEAandcharterschoolconnectivityallocationdatacanbefoundatthelinkbelow.http://www.dpi.state.nc.us/connectivity/links/funding/NCDigitalLearningPlandocumentsincludingthe2015DetailedandSummaryreports,thewirelessinfrastructuresurvey,andwirelessinfrastructureRFPcanbefoundatthelinksbelow.http://ncdlplan.fi.ncsu.edu/findings-and-recommendations/technology-infrastructure-and-devices/http://ncdlplan.fi.ncsu.edu/category/publications/AninteractivemapthatillustratesLEAandcharterschoolaggregateandperstudentnetworkutilizationstatisticscanbefoundatthelinkbelow.https://www.mcnc.org/ncren/portal/reporting/ncren_utilization_mapAdatadashboardpresentingconnectivityusagedataandrelatedstatisticscanbefoundatthelinkbelow.http://friday.institute/scireportThebalanceofthisreportincludessupportingdataasfollows.

APPENDIX DATA A 2016 PRC 073 Category 1 school connection allotments by LEA B 2016 PRC 160 Category 2 school infrastructure allotments by LEA and charter school C 2016 PRC 036 allotments by Charter School D The NCDPI connectivity staff salary report E North Carolina E-rate funding history report

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APPENDIX A - 2016 LEA PRC 073 ALLOTMENTS

ThesearetheallotmentsfortheE-rateCategory1LEAschoolconnections.Specifically,LEAsrequestedE-ratefundsduringspringof2015withservicefundingyearbetweenJuly1,2015andJune30,2016.PRC073allotmentsdistributedduringcalendaryear2016tocovernon-E-ratecostsforeligibleschoolconnections.Intotal$8,568,457wasallottedandleveragedagainst$43,986,249incommittedE-ratefunding.

LEA LEAName PRC 073 10Alamance-Burlington $85,032 20AlexanderCounty $29,707 30AlleghanyCounty $30,370 40AnsonCounty $22,332 50AsheCounty $36,960

761AsheboroCity $22,243 111AshevilleCity $52,075 60AveryCounty $19,819 70BeaufortCounty $39,943 80BertieCounty $25,024 90BladenCounty $50,667

100BrunswickCounty $78,201 110BuncombeCounty $119,907 120BurkeCounty $85,224 130CabarrusCounty $230,597 140CaldwellCounty $88,375 150CamdenCounty $21,725 160CarteretCounty $121,344 170CaswellCounty $11,905 180CatawbaCounty $100,224 681ChapelHill-Carrboro $43,308 190ChathamCounty $50,453 200CherokeeCounty $26,827 210ChowanCounty $31,351 220ClayCounty $10,800 230ClevelandCounty $76,080 821ClintonCity $24,000 240ColumbusCounty $62,891 250CravenCounty $53,539 260CumberlandCounty $265,941 270CurrituckCounty $46,379

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280DareCounty $50,314 290DavidsonCounty $147,617 300DavieCounty $68,607 310DuplinCounty $38,442 320DurhamPublic $143,916 330EdgecombeCounty $18,618 861ElkinCity $7,000 340ForsythCounty $231,360 350FranklinCounty $76,080 360GastonCounty $156,216 370GatesCounty $16,042 380GrahamCounty $3,000 390GranvilleCounty $54,715 400GreeneCounty $21,034 410GuilfordCounty $372,960 420HalifaxCounty $52,150 430HarnettCounty $183,291 440HaywoodCounty $75,816 450HendersonCounty $78,003 460HertfordCounty $12,570 181HickoryCity $50,965 470HokeCounty $54,878 480HydeCounty $4,169 490IredellCounty $482,266 500JacksonCounty $17,700 510JohnstonCounty $111,960 520JonesCounty $11,977 132KannapolisCity $22,618 530LeeCounty $63,118 540LenoirCounty $43,210 291LexingtonCity $12,355 550LincolnCounty $70,941 560MaconCounty $64,500 570MadisonCounty $8,880 580MartinCounty $35,053 590McDowellCounty $42,828 600MecklenburgCounty $324,384 610MitchellCounty $17,429 620MontgomeryCounty $16,908

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630MooreCounty $89,712 491MooresvilleCity $11,176 862MountAiryCity $20,929 640Nash-RockyMount $18,919 650NewHanoverCounty $175,190 182Newton-Conover $7,312 660NorthamptonCounty $9,951 670OnslowCounty $275,588 680OrangeCounty $70,656 690PamlicoCounty $10,000 700PasquotankCounty $48,791 710PenderCounty $75,804 720PerquimansCounty $21,040 730PersonCounty $37,469 740PittCounty $172,440 750PolkCounty $10,639 760RandolphCounty $106,845 770RichmondCounty $33,992 421RoanokeRapidsCity $25,486 780RobesonCounty $64,200 790RockinghamCounty $125,236 800Rowan-Salisbury $150,406 810RutherfordCounty $14,185 820SampsonCounty $29,400 830ScotlandCounty $36,825 840StanlyCounty $91,446 850StokesCounty $94,204 860SurryCounty $41,805 870SwainCounty $15,000 292ThomasvilleCity $11,635 880TransylvaniaCounty $18,336 890TyrrellCounty $3,000 900UnionCounty $427,315 910VanceCounty $47,698 920WakeCounty $578,280 930WarrenCounty $28,810 940WashingtonCounty $15,160 950WataugaCounty $65,160 960WayneCounty $106,981

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422WeldonCity $8,682 241WhitevilleCity $5,000 970WilkesCounty $22,380 980WilsonCounty $59,064 990YadkinCounty $44,945 995YanceyCounty $14,232

Total $8,568,457

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APPENDIX B – 2016 PRC 160 ALLOTMENTS

ThesearetheallotmentsfortheE-rateCategory2infrastructureprocurements.Specifically,LEAsandcharterschoolsrequestedE-ratefundsduringspringof2015,purchasedequipmentandservicesusingNCDPI-managedcontracts,andreceivedPRC160allotmentsforcostsnotcoveredbyE-rateduring2016.Intotal,$9,192,844wasallottedandleveragedagainst$35,493,334inE-ratefunds.AllPRC160distributionswerepaidusingFederalRacetotheTop(RttT)grantfunds.LEA Number LEA/Charter Name PRC 160

10 ALAMANCE-BURLINGTON SCH DIST $343,327 20 ALEXANDER COUNTY SCHOOL DIST $135,621

69A ARAPAHOE CHARTER SCHOOL $18,098 50 ASHE COUNTY SCHOOL DISTRICT $70,577

761 ASHEBORO CITY SCHOOLS DISTRICT $62,803 111 ASHEVILLE CITY SCHOOL DISTRICT $47,368

70 BEAUFORT COUNTY SCHOOL DIST $145,926 80 BERTIE COUNTY SCHOOL DISTRICT $20,953 90 BLADEN COUNTY SCHOOL DISTRICT $123,557

180 CATAWBA COUNTY SCHOOL DISTRICT $301,619 200 CHEROKEE COUNTY SCHOOL DIST $67,252 230 CLEVELAND COUNTY SCHOOL DIST $103,344 821 CLINTON CITY SCHOOL DISTRICT $186,245 240 COLUMBUS COUNTY SCHOOL DIST $294,522 270 CURRITUCK COUNTY SCHOOL DIST $193,877 290 DAVIDSON COUNTY SCHOOL DIST $167,086 300 DAVIE COUNTY SCHOOL DISTRICT $41,956 310 DUPLIN COUNTY SCHOOL DISTRICT $127,892 700 ELIZABETH CITY-PASQUOTANK PUBLIC SCHOOLS $208,544 861 ELKIN CITY SCHOOL DISTRICT $41,514 360 GASTON COUNTY SCHOOL DISTRICT $16,500 370 GATES COUNTY SCHOOL DISTRICT $43,151 380 GRAHAM COUNTY SCHOOL DISTRICT $37,095 390 GRANVILLE COUNTY SCHOOL DIST $166,913 400 GREENE COUNTY SCHOOL DISTRICT $17,254 440 HAYWOOD COUNTY SCHOOL DISTRICT $94,970 91B Henderson Collegiate $10,090 450 HENDERSON COUNTY PUB SCH DIST $380,390 181 HICKORY CITY SCHOOL DISTRICT $73,137 470 HOKE COUNTY SCHOOL DISTRICT $224,015 480 HYDE COUNTY SCHOOL DISTRICT $89,820 500 JACKSON COUNTY SCHOOL DISTRICT $97,661

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520 JONES COUNTY SCHOOL DISTRICT $16,509 132 KANNAPOLIS CITY SCHOOL DIST $88,728 530 LEE COUNTY SCHOOLS $8,342 540 LENOIR COUNTY PUBLIC SCHOOLS $20,597 291 LEXINGTON CITY SCHOOL DISTRICT $41,984 560 MACON COUNTY SCHOOL DISTRICT $119,006 570 MADISON COUNTY SCHOOL DISTRICT $61,216 590 MCDOWELL COUNTY SCHOOL DIST $27,997 620 MONTGOMERY COUNTY SCHOOL DIST $37,299 862 MOUNT AIRY CITY SCHOOL DIST $31,689 640 NASH-ROCKY MOUNT SCHOOL DIST $201,207 182 NEWTON-CONOVER CITY SCH DIST $118,959 660 NORTHAMPTON COUNTY SCHOOL DIST $37,296 720 PERQUIMANS COUNTY SCHOOL DIST $93,014 740 PITT COUNTY SCHOOL DISTRICT $453,545 760 RANDOLPH COUNTY SCHOOL DIST $521,800 770 RICHMOND COUNTY SCHOOL DIST $128,463 780 ROBESON COUNTY PUBLIC SCHOOLS $139,597 790 ROCKINGHAM COUNTY SCHOOLS $366,833 810 RUTHERFORD CO SCHOOL DISTRICT $210,128 820 SAMPSON COUNTY SCHOOL DISTRICT $68,102 850 STOKES COUNTY SCHOOL DISTRICT $51,440 292 THOMASVILLE CITY SCHOOL DIST $44,606 880 TRANSYLVANIA CO SCH DISTRICT $66,279 890 TYRRELL COUNTY SCHOOL DISTRICT $126,457 910 VANCE COUNTY SCHOOL DISTRICT $273,602 970 WILKES COUNTY SCHOOL DISTRICT $154,306 980 WILSON COUNTY SCHOOL DISTRICT $275,551 340 WINSTON-SALEM/FORSYTH CO S D $1,272,483 990 YADKIN COUNTY SCHOOL DISTRICT $132,023 995 YANCEY COUNTY SCHOOL DISTRICT $50,709

Total PRC 160 Allotments $9,192,844

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APPENDIX C – 2016 CHARTER PRC 036 ALLOTMENTS

CharterschoolsmaychoosetoreceiveacentrallyfundedInternetconnectionoraPRC036allotmentthatiscalculatedbasedontheSCIperADMbenefittotheirhomeLEA.Thesearethe2016PRC036allotmentsforparticipatingcharterschools.CharterName PRC036AcademyofMoore $5,000A.C.E.Academy $5,000AndersonCreekClubCharterSchool $6,000ArtsBasedSchool $5,000BethanyCommunityMiddle $5,000BrevardAcademy $14,000CabarrusCharterAcademy $5,000CardinalCharter $5,000CarterCommunity $6,000CharlotteLab $5,000CISAcademy $5,000CloverGarden $5,000CrosscreekCharter $6,000DillardAcademy $5,000DynamicCommunityCharter $5,000EastWakeAcademy $5,000EntrepreneurHighSchool $5,000EnvisionScienceAcademy $5,000EvergreenCommunityCharter $5,000ExcelsiorClassical $5,000ExplorisSchool $5,000FallsLakeAcademy $10,000FlemingtonAcademy $6,000ForsythAcademy $5,000GastonCollegePreparatory $6,000GrandfatherAcademy $12,000GrayStoneDaySchool $6,000GreensboroAcademy $5,000HealthyStartAcademyCharter $6,000HendersonCollegiate $5,000HopeCharterLeadershipAcademy(FormerlyHopeElementary) $5,000Ignite $5,000InvestCollegiateTransform $5,000IslandMontessori $5,000KennedySchool $5,000KIPPHalifaxCollegePreparatory $6,000KIPP:Charlotte $5,000KIPP:DurhamPreparatory $5,000LangtreeCharterAcademy $5,000

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LearningCenter $17,000LongleafSchooloftheArts $5,000MaureenJoyCharter $6,000MillenniumCharterAcademy $6,000PACEAcademy $5,000PaulR.BrownLeadershipAcademy $6,000PAVESERaleigh $5,000PhoenixAcademy $5,000PinnacleClassicalAcademy $5,000PioneerSpringsCommunitySchool $5,000PreEminentCharter $5,000Queen'sGrantCommunity $5,000QuestAcademy $5,000ReachingAllMindsAcademy $6,000ResearchTriangleCharterAcademy $6,000SallieB.Howard $6,000SandhillsTheatreArtsRenaissanceSchool(STARS) $6,000ShiningRockClassical $5,000SouthBrunswickCharterSchool $5,000STEMEducationforaGlobalSocietyAcademy(SEGS) $5,000SummerfieldCharterAcademy $5,000SummitCharter $20,000TheAcademyofMooreCounty $5,000TheCapitolEncoreAcademy $5,000TheCarterG.WoodsonSchoolofChallenge $5,000TheCentralParkSchoolforChildren $5,000TheChildren'sVillageAcademy $5,000TheCollegePreparatoryandLeadershipAcademyofHighPoint $5,000TheCommunityCharter $5,000TheExpeditionSchool $5,000TheFranklinAcademy $5,000TheFranklinSchoolofInnovation $5,000TheHawbridgeSchool $5,000TheInstitutefortheDevelopmentofYoungLeaders(IDYL) $5,000TheMountainCommunity $5,000TheNewDimensions $5,000TheNorthCarolinaLeadershipAcademy $5,000TillerSchool $5,000VanceCharter $5,000VERITASCommunity $5,000WakeForestCharterAcademy $5,000WilmingtonPreparatoryAcademy $5,000WintervilleCharterAcademy $5,000YoungsvilleAcademy $5,000

TotalPRC036 $478,000

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APPENDIX D - CONNECTIVITY STAFF SALARY REPORT

ThefollowingareNCDPIstaffpaidfromSchoolConnectivityInitiativefundingandtheirrespectivesalaries.

Title of Position and Description of Duties Salary

Lead Connectivity and E-Rate Analyst: provides LEA/Charter School Technical Consulting, Strategic Planning, Project Management $87,943

Lead E-Rate Analyst: provides LEA/Charter School Technical Consulting, Strategic Planning $76,506

E-Rate Program Administrator: provides E-rate Education and Consultation Services $72,726

E-Rate Program Administrator: provides E-rate Education and Consultation Services $64,265

Education Consultant II: Assists with Digital Teaching and Learning Integration $67,420

Technology Support Center Analyst: Provides help desk support for SCI related calls $40,662

Total $409,522

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APPENDIX E – NORTH CAROLINA E-RATE FUNDING HISTORY REPORT

ThefollowingreportruninOctober2016showsNorthCarolinapublicschoolE-ratefundingrequests,thetotalpre-discountamountforallrequestedservices,theamountofE-ratefundingbeingrequested,theamountoffundingultimatelycommittedbytheFCC,theamountoffundingdisbursed,andtheutilizationoffunds(disbursed/committed).Notethattherearestilldisbursementsoutstandingfor2015–includingover$10MforconsortiumInternet.For2016,thevastmajorityofrequestshavenotyetbeenapprovedthoughtheexpectationisthatontheorderof97%ofwhatisrequestedwillbecommitted.

Year Requests Pre-Discount Requested Committed Disbursed Utilization % 2016 1,362 $143,294,447 $101,618,087 $28,636,167 $1,710,870 6% 2015 1,799 $148,550,545 $112,782,073 $108,436,609 $83,720,376 77% 2014 1,149 $130,282,860 $103,576,765 $68,505,830 $60,452,021 88% 2013 1,090 $128,061,575 $102,983,843 $67,257,466 $60,403,671 90% 2012 1,141 $140,959,571 $112,784,516 $80,088,802 $71,461,732 89% 2011 1,282 $128,875,656 $103,233,329 $71,388,019 $63,843,598 89% 2010 1,262 $109,507,564 $85,942,335 $78,504,887 $66,345,445 85% 2009 1,165 $98,312,963 $75,294,273 $61,405,999 $52,103,213 85% 2008 1,258 $91,746,583 $70,282,085 $57,091,132 $50,501,836 88% 2007 1,733 $100,873,061 $77,535,432 $58,250,860 $49,861,383 86% 2006 1,403 $110,262,568 $85,353,133 $47,406,255 $40,360,361 85% 2005 2,355 $96,196,207 $72,049,708 $51,008,937 $43,963,129 86% 2004 2,292 $78,661,600 $57,973,923 $37,480,433 $30,336,639 81% 2003 2,076 $97,322,227 $75,814,000 $45,339,691 $37,042,927 82% 2002 1,946 $79,663,215 $62,291,488 $47,968,216 $39,497,438 82% 2001 2,223 $61,576,928 $44,222,112 $20,166,017 $16,038,416 80% 2000 2,217 $60,099,851 $41,708,939 $20,915,884 $17,740,889 85% 1999 1,845 $48,447,701 $33,670,538 $28,605,610 $24,649,511 86% 1998 3,041 $44,388,023 $28,969,621 $21,511,196 $17,384,524 81%

32,639 $1,897,083,144 $1,448,086,200 $999,968,009 $827,417,980