E-Rate Modernization
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- Charla Manning
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1 E-Rate Modernization AN EXPLORATION OF CHANGES FROM THE FIRST ORDER OF E- RATE 2.0 (JULY 2014) Peter Drescher, Education Technology Coordinator Vermont State E-rate Coordinator
2 Resources A few resources on our web page: From the USAC website
3 To begin: Focus of this webinar: July 11, 2014 Order from FCC to make changes re: E-Rate 2.0 Further changes are coming, webinars will be offered as additional changes are added Remember: ALL changes to E-rate are considered a pilot at this point. Two years? Could be reversed. You might consider: An E-Rate consultant to help you navigate Another School or SU entity to assist
4 E-Rate Stats Nationally program capped at $2.25B Vermont: 2014# s 1.7M Pri1, Pri2: req.2.5m got 317K. Additional $1B dollars to be made available over Shifting of funds to meet the demand for Category 1 is priority overall FCC confidence high that sufficient funds available over funding years.
5 Three Main Goals (July order) Affordable Access to high-speed Broadband A focus on Cost Effectiveness Streamlining and making more efficient the application process Rules to take effect for FY2015 unless noted
6 Goal 1: Maximize Broadband Change in language and some structure: Priority 1 Category 1 No significant change in Category 1 funding: Continues to be funded first Discount matrix remains the same
7 Funding % change The highest discount level for category one services remains 90 percent, except that the highest discount rate for voice services will be 70 percent in funding year 2015, and will decrease by an additional 20 percentage points each subsequent funding year. Further: For Category 2, the highest level will be reduced to 85% (not 90%).
8 THE CHANGE... Comes in Priority 2 Category 2 New Focus in Internal Connections Especially in terms of WIFI If schools already have wifi, they can use funds for maintenance-- Changes to Eligible services list Phasing out Phone services
9 In Vermont... Many schools have installed wifi networks How can we benefit from the new focus? Planning for expansion or upgrades Maintenance plans are still acceptable Long term plan knowledge that funding exists Recommend? Look at existing Make plans for upgrade within 2-3 years Remember: Assessment comes in 2015
10 Eligible services list review review Some obvious changes (Allowable) Caching Some cloud services Routers, switches Managed Wi-Fi Eligible Renamed Managed Broadband Internal Connections by FCC No longer funded: Circuit cards, antennas, gateways, servers, telephone and video components, Data protection other than firewall and UPS (read: VPN s), software, storage devices, VoIP and Video over IP components
11 Category 2 cont d 90% discount reduced to 85% RECALL: All other (Cat 1) discount levels unchanged $150 per student available over 5 years ($2.30 per square foot for libraries) Can be received all in year 1 Ordered by discount rate 5 year applicant budget $9,200 funding floor per school/library No extra funding for rural remotes all equal 2 in 5 year rule? removed Student Counts Can use estimate for new buildings Can count students at 2 buildings if attend multiple schools Category 2 Installation can begin on April 1st
12 Example.. Dist 1 85% Dist 2 80% Dist 3 70% Year 1 Dist 1 at 85% will go first, they will take the maximum amount they can $150 per student, Dist 2 at 80% might not get anything Year 2 Dist 2 at 80% would go first and take the max amount, Dist 3 at 70% might not get anything Year 3 with Districts 1 and 2 already receiving their budgeted amount, Dist 3 at 70% is first in line The hope is that over 5 years all schools and libraries will get their $150 per student (and remember $150 is the total cost E-rate pays $150 x discount rate)
13 CAT 1: Phone and Voice Services Essentially, being phased out: REDUCED by 20% in Funding Year 2015 and another 20 in each succeeding year
14 CAT 1 services GONE this year: Paging Telephone service components including; Directory assistance charges, text messaging, custom calling services, direct inward dialing, 900/976 call blocking, and inside wire maintenance plans, , web hosting and voic Data plans and air cards for mobile devices could be exempt if the school can demonstrate that this is most cost-effective (Note: FCC will presume they are not, so be prepared) RECOMMEND: Phone services moved over two years under local dollars.
15 Goal 2: Maximizing the Cost Effectiveness COST TRANSPARENCY Publicizing information on USAC website about equipment and services purchased by schools. (Item 21) Vendors must comply FCC has assigned the Wireless Competition Bureau to collect/publicize/report on network best practices, performance stats This could mean reporting requirements and unknown what that will entail
16 SETDA measurements adopted SETDA Target numbers: Internet Access 100 Mb per 1,000 users today Internet Access 1,000 Mb per 1,000 users long-term WAN/Last mile no short-term target WAN/Last mile 10 Gb per 1,000 users long-term
17 Goal 2 Maximizing Cost Efficiency Master contracts may be designated preferred master contracts and if so 1. may then exempt from 470 filing requirement 2. OR require the preferred master contract be included in the bid for a service covered by this Intent is to encourage consortia best practices, with best pricing---seems to be some question as to how this will be orchestrated by WCB How does this work with RFP s?
18 Consortia FCC in favor of consortia 470 filings Seeks more input on current order comments were due Sept. 15 Has indicated a change in how consortia are judged in terms of receiving funding we ll see how this moves forward VT: Encourage consortia for future
19 Goal 3- Streamline application Simplify discount rates Simplify invoicing and disbursement Manage Appeals more efficiently SLD Administration fixes Protection from Waste, Fraud, Abuse
20 Simplify Process Discount rate: each district calculate and use a single district wide discount rate rather than using building by building (VT-troublesome for some) (allows adding of sites) Multi-year contracts (5 years or less): Submit 471 first year (2015) Then in subsequent years: Submit (form TBD) that explains this as continuation and documents any changes from year to year Changes in discount rates Membership of consortium Services ordered All need to be within scope of original 470
21 Simplify Process Exempt from filing 470 for Internet Access Service if: Service offers at least 100mbps down and 10 up for prediscount price of or less annually, including installation and equipment charges And the price and service are commercially available
22 To go around 470 process MUST HAVE signed contract or other legally binding agreement in place prior to submission of 471 Protects support for those that have agreed to negotiated terms but have not obtained signatures on 471 yet. A little risky here----get signatures on 471 s Probably OK in VT, but other states local and state laws may not fly
23 All electronic filing Required of all Applicants and USAC Phased in over the next three years Will this impact that PIN issuing piece? Why over three years?
24 Schools/Libraries connect Rural status Schools and libraries can be connected on the same network and by filing a waiver can make direct connections between the two entities. (why?) Rural status for E-rate tool going to be provided to determine that. Highly rural libraries may benefit from this as they don t need to tie to schools status
25 Community Eligibility Provision CEP Schools utilizing the Community Eligibility Provision (CEP) of the National School Lunch Program shall calculate their student eligibility for free or reduced priced lunches by multiplying the percentage of directly certified students by the CEP national multiplier. Schools and school districts should then use the resulting number for that school when calculating the district-wide calculation in the same manner as schools using NSLP data.
26 Technology Plans Full disclosure from Vermont: Technology plan requirements are eliminated completely from the E-rate program --Anticipate reporting in different ways from USAC network planning, configurations, utilization, etc. Vermont wishes to require plan within different planning documents due to State. (Pending)
27 Invoicing Deadlines/Other Changing rules around the deadline Extension is now possible for additional 120 days one time only. Document retention schedule goes from 5-10 years. Must allow auditors, investigators, etc. on premise to review documents, do compliance reviews.
28 Next Order Should they limit contracts to 5 years? Consortium discount rates use weighted calculations? More on consortiums expected
29 Finally... Simplification? Looks like there may be more oversight and involvement not sure how much more especially from Wireline Competition Bureau---tasked with some of the new changes... Could be a slow down in approvals, but we don t know.. Change in Category 2 could impact that. Info on Preferred master contracts what might that mean for future?
30 Additional Questions/Info. Peter Drescher
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