This document outlines proposed changes to the E-Rate program called E-Rate 2.0. Key changes include focusing E-Rate funding on broadband connectivity to and within schools, phasing out funding for voice services between 2015-2019, establishing minimum Category 2 budgets per student for Wi-Fi equipment, and streamlining the application process. The proposed changes aim to use limited funds to achieve ambitious broadband goals for all schools while accepting some short-term costs like phasing out certain services.

1. 50,000
FOOT VIEW E-RATE 2.0
• Focus E-Rate on funding broadband connectivity to buildings and inside buildings
• Accomplish program overhaul without increasing the funding cap
• Limited funds means there are hard choices
• Phase out voice services and end funding of other legacy services beginning FY 2015
• Ambitious broadband connectivity goals
• Establish Category 2 budgets per student (minimum amount per building) to allow all
applicants to receive funding for equipment inside buildings
• Category 2 funding limited to broadband infrastructure and equipment, no more voice
or video equipment eligibility
• Streamline program requirements to issue funding approval letters more timely
• Share data about pricing and connectivity levels to promote better pricing

2. CATEGORY 1
VOICE PHASE
OUT SCHEDULE If Your
District
Discount is:
FY 2015 FY 2016 FY 2017 FY2018 FY2019
20% No Funding No Funding
No Funding
No Funding
No Funding
25% 5% No Funding
No Funding
No Funding
No Funding
40% 20% No Funding
No Funding
No Funding
No Funding
50% 30% 10% No Funding
No Funding
No Funding
60% 40% 20% No Funding
No Funding
No Funding
70% 50% 30% 10% No Funding
No Funding
80% 60% 40% 20% No Funding
No Funding
90% 70% 50% 30% 10% No Funding

3. SHORT TERM PAIN FOR LONG
TERM GAIN
THE PAIN:
• In FY 2015 certain Category 1 services not deemed essential for broadband connectivity will no
longer be eligible
• Phase down of voice telecommunication services funding begins in FY 2015, 20 discount percent
age points per year
• Very narrow Wireless data plans eligibility
THE GAIN:
• All schools will have access to Category 2
• Dedicated $1 Billion annual fund for Wi-Fi equipment
• Apply based on budgets amounts of $150 per student/$9200 per building minimum so
no applicant receives disproportionate funding
• FCC projects it will cost $5 Billion over 5 years to fund all applicant’s Wi-Fi equipment projects
• Streamlining procedures to ease application process

4. E-RATE 2.0
OVERVIEW OF CHANGES
CATEGORY 1
• New Ineligible Services
• Phase Out of Voice Services
• Phase Out Wireless Data Plans
CATEGORY 2
• Per Student Budget
• Focus on Wireless Connectivity
• All Districts Eligible
CATEGORY 1
CATEGORY 2

5. INTERNET
CLOUD
SUPPORT SWITCHES SERVER
WIRELESS
UPS
FIREWALL
SMART PHONE TABLET LAPTOP THIN CLIENT WORKSTATIONS MAC
PHONE SYSTEM
CATEGORY 1 CATEGORY 2 NOT ELIGIBLE

6. CATEGORY 2
$150per student
FUNDING
BREAKDOWN
25% 50% 60% 70%
80% 85%
Less than 1%
DISTRICT NSLP %
1 – 19 % 20 – 34% 35 – 49% 50 – 74% 75 – 100%
DISCOUNT ELIGIBILTY

7. HOW DO I GET STARTED?
1. DEFINE A PLAN/NEEDS ASSESSMENT
2. COMMUNICATE WITH AN E-RATE CONSULTANT
3. COMPLETE 470 FORM

8. ANY QUESTIONS
MATT HALL
MHALL@PINECC.COM
WWW.PINECC.COM
406.294.5477