E-Rate Modernization

E-RATE MODERNIZATION GOALS

Close the Wi-Fi gap – get broadband to classrooms at speeds no less than 100 Mbps with a target of 1 Gbps

WAN dedicated services scalable to 10 Gbps per 1000 students

Make the rules fair – increase the likelihood of funding for higher wealth districts

Maximize existing funding – streamline the program making it faster, simpler, more efficient for all schools and libraries

CLOSING THE GAP

The order sets a target of $1 billion for eligible internal connections for 2015 and 2016– Category 2

No new money was added – still $2.25 billion adjusted for inflation – instead the program was restructured – taking from phone services to fund internal connections

Priority 1 – Category 1 was gutted and only broadband (including dial-up) is eligible. POTS or phone services will be phased out in five years.

SEVENTH REPORT AND ORDER IN SHORT

Not simplified in reality

From the Order – “test a more equitable approach to funding internal connections for applicants who seek support in funding years 2015 and 2016”

Program is still not adequately funded

Takes from Category 1 to provide/pay for Category 2

No identified funding after two years for internal connections

Enhanced enforcement of program rules

CATEGORY 2 – INTERNAL CONNECTIONS

Highest discount will be 85% for Category 2

All districts and libraries will use school district-wide discount based on Discount Matrix

$150 pre-discount funding will be available for districts on a per-student, per-site basis over a five-year period

Libraries will be funded at $2.30 per square foot over five-year period

DISCOUNT MATRIX

Category One schools and libraries discount matrix

Category Two schools and libraries discount matrix

Discount Level Discount Level

% of students eligible for National School Lunches Program Urban discount Rural Discount Urban discount Rural Discount

< 1…………………………………

1-19……………………………….

20-34……………………………..

35-49……………………………..

50-74……………………………..

75-100……………………………

20

40

50

60

80

90

25

50

60

70

80

90

20

40

50

60

80

85

25

50

60

70

80

85

CATEGORY 2 – INTERNAL CONNECTIONS

Floor of $9,200 for small schools less than 62 students for five years - 62 students would be over the $9,200

Floor of $9,200 for small libraries

ELIGIBLE SERVICES LIST

Access Points used in a LAN or Wireless LAN

Cabling for all related components used for internal broadband connections

Caching servers

Firewalls used to ensure the continued operation of eligible equipment

Network switches and routers

Racks that support eligible internal connections components

ELIGIBLE SERVICES LIST

UPS/battery backup

Wireless LAN controllers

Software necessary to support eligible equipment, includes client access licenses for LAN/WLAN

Functionality can be virtualized for the above eligible equipment

Multi-year warranty’s: Up to three years and provided at no cost are eligible

Ineligible equipment such as call managers must be cost allocated out of racks, UPS support, etc.

ELIGIBLE SERVICES LIST

Fees and charges that are a necessary component of an eligible product or service are eligible including:Change fees

Contingency fees are eligible if they are reasonable and a regular business practice of the service provider. Contingency fees will be reimbursed only if the work is performed.

Freight assurance fees

Lease fees to rent or lease eligible components

ELIGIBLE SERVICES LIST

Per diem and/or travel time costs are eligible only if a contract with a vendor for the eligible product or services specifically provides for these costs

Shipping charges

Taxes, surcharges, and other similar, reasonable charges incurred in obtaining an eligible product or service are eligible

BASIC MAINTENANCE

Still eligible for districts that apply for funding for 2015 and 2016:

Support will only be available for maintenance on equipment and services on the ESL and not for any of the legacy services phased out in the FCC’s Report and Order.

MANAGED WI-FI

Managed Wi-Fi is eligible:

Category 2 funded – part of $150 per student

$30 per student per year maximum

Must be leased or district/library-owned equipment

Can be provided by third party

MAXIMIZING COST EFFECTIVENESS

Adopting transparency measures – potentially posting all “Item 21s”

Encourage consortia purchasing – may see more consortia buying

Must provide the Lowest Corresponding Price (LCP)

SIMPLIFYING THE PROGRAM

Simplifying the application process for multi-year contractsReducing PIA review to only the first year

Easing the signed contract requirement – allowing for emails, but we should we cautious

Removing the Technology Plan requirement

Non-instructional facilities no longer covered

Start date for C2 Services is April 1 but billing cannot occur until July 1

SIMPLIFYING DISCOUNT RATE CALCULATIONS

Requires a district-wide discount rate – no more bundling of 90% schools

Modifying the definition of urban and rural – using Census data to determine designation

Modifying the requirement for applicants using the survey

SIMPLIFY INVOICE/DISBURSEMENT PROCESS

Allowing direct invoicing by schools and libraries BEAR goes directly to applicant instead of service provider

Adopting an invoicing deadlineAllowing a one-time extension of 120 daysAfter that, must extend through FCC waiver

LOS ANGELES SAN DIEGO INLAND EMPIRE PLEASANTON PHOENIX LANCASTER CHARLOTTE