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What the Recent E-Rate Changes Mean for Your District
- 1. Enjoy the Uptime. SDNoffers Internet, connectivity, IP phone systems, networking equipment, and managed services over its 30,000 miles of fiber optics. The network touches 300+ South Dakota communities, plus connects to other regional and national networks.
- 2. Carrie Johnson Manager ofGovernment and External Relations SDN Communications E-Rate Reform: What the Recent E-Rate Changes Mean for Your District
- 5. What role doesSDN play? • Major vendor to the Digital Dakota Network • Internet • Network services (physical Ethernet connections – WAN connectivity) • Network surveillance (NSC) and reporting • Demos, consultation, and wireless surveys • Additional services for school districts: • Wireless access • Network audits • Servers and data storage • Phone systems • Provide Internet directly for private schools E-Rate Reform
- 6. Redefining the RuralClassroom E-Rate Reform Arlington, SD Population: 915
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- 9. • Bandwidth Demandsin Schools • Assessments • e-Textbooks • One-to-One Programs • Customized Learning • Bandwidth Demands in Libraries • Job Search & Job Applications • Access to Information – government, health care, informed purchasing decisions • Education, Research, & Distance Learning E-Rate Reform E-Rate Reform: Why Now?
- 10. • Created bythe Telecom Act of 1996 • Serves 97% of schools • 20-90% subsidies for eligible schools & libraries • Funding cycle: July 1 through June 30 • Form 470 – Service request posted on USAC website Open and fair competitive bidding process required • Form 471 – Must wait at least 28 days, evaluate bids, chose service provider, sign contract, and then submit Form 471 • Form 486 (Receipt of Services Confirmation), Form 472 (Billed Entity Applicant Reimbursement), Form 474 (Provider Invoice) • 1996 – 14% of classrooms had Internet (74% dial-up) • 2015 - Nearly all schools and libraries connected The challenge today is capacity, not connectivity. E-Rate Reform
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- 12. FCC Survey, 2010: •80% - Connection does not meet needs • 50% reported speeds slower than average home – despite 200x the users • 56% - digital textbooks use will grow in 2-3 years • 46% - handheld devices for educational purposes will increase • 39% - Cost of service is the largest barrier E-Rate Reform ALA Survey, 2011-2012: • 25% - Speeds of 1.5 Mbps or less • Rural divide: 57% of urban libraries have 10 Mbps or greater, compared to only 17% of rural libraries • 40% - Speed fails to meet needs
- 13. From Blackboards toSmartboards E-Rate Reform “During my tenure as chairman of the FCC, there may be no bigger and more significant issue than making sure our schools and libraries are connected to high-speed broadband networks. That is why E-rate modernization is at the top of my agenda and why I support President Obama’s goal of connecting 99 percent of all students to high-speed broadband capacity in five years—or faster.” - FCC Chairman Tom Wheeler, 02/05/14
- 14. E-Rate Reform June 2013 “ConnectED” July2013 NPRM January 2014 SOTU July 2014 Reform Order and FNPRM December 2014 Funding Increase & 2nd Reform Order Reform Timeline Key Priorities • Refocus the program on broadband • Simplify E-Rate application process • Close “Wi-Fi Gap” to support digital learning • Speed goals for external connections: • 100 Mbps per 1,000 students by 2015 • 1000 Mbps (1 Gbps) per 1,000 students by 2018 • 10 Gbps scalable WAN connectivity across district • 100 Mbsp for libraries serving under 50,000 and 1 Gbps for larger populations
- 15. July 2014: E-RateModernization Order • $1 billion for Wi-Fi upgrades in FY15 & FY16 • Ending or phasing out legacy services • Streamline application process • Electronic submission required by FY 2017 • Discounts based upon LEA averages • Direct reimbursement option (starting FY 2016) • Exempt low-cost, business-class Internet of $3,600 or less from competitive bidding process • Remove technology plan requirement • Encourage consortia and bulk purchasing • Lowest Cost Price Requirement • Greater pricing transparency • FCC will track circuit speed and bandwidth cost • Double document retention period (now 10 years) E-Rate Reform
- 16. • Category 1:Enable Broadband connectivity to the school/library • Ineligible: webhosting, paging, email, text messaging, voicemail. Data plans & air cards for mobile devices are basically ineligible. • Phase-out Schedule: 20% will be deducted from eligible discount each year, starting in FY 2015. • Category 2: Enable Broadband connectivity within the school/library • Basic: cabling, routers, switches, wireless access points • At least through FY2019: • Maintenance of basic LAN equipment • Managed Wi-Fi • Caching servers • Newly ineligible: All other servers and telephone systems E-Rate Reform
- 17. E-Rate Reform The maxC2 discount is 85% to encourage most cost-effective option.
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- 19. A New BudgetHole to Fill E-Rate Reform Education Week
- 20. E-Rate Reform December 2014:Second E-Rate Modernization Order • Increase the spending cap by $1.5 billion (from $2.4B to $3.9B) • Extend through 2019 the annual $1 billion for Wi-Fi • Federal match to incentivize state support of C1 (starting FY16) • Changed the definition of “urban” from 2,500 to 25,000 • High-cost recipients – obligation to serve at reasonably comparable rates to urban areas • Equalize treatment of dark fiber if most cost effective (starting FY16) • Allow applicants to pay their non-discounted share in installments over four years • Permit up-front E-Rate support for large projects
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- 22. E-Rate Reform SD’s schools areranked #3 in connectivity. educationsuperhighway.org
- 23. E-Rate Reform SD’s schoolsare ranked 47th for accessing their E-Rate budgets for Wi-Fi. educationsuperhighway.org
- 24. Unlocking Support forWi-Fi • Great time to focus on internal connections • Respond to the changing trends • Do away with Priority 1 & 2 • Funds for Wi-Fi would dry up • Replaced with Category 1 & 2 • Increased pot of money for Category 2 and capped the per- pupil request to meet demand ($150 pre-discount, minimum of $9,200 for schools with 62 students or fewer) E-Rate Reform
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