Learn about the recent overhaul of the E-Rate program and the new opportunities and challenges it creates for school districts. The reforms represent a historic funding boost and give schools new tools to strengthen Wi-Fi connections to support the delivery of digital learning. The presenter worked on education & telecom policy for 6 years the U.S. Senate, including in 2014 when the E-Rate rules were adopted. This presentation will focus on the new reforms and the E-Rate application process.

1. Enjoy the Uptime.
SDN offers 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 of Government and External Relations
SDN Communications
E-Rate Reform:
What the Recent E-Rate Changes
Mean for Your District

5. What role does SDN 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 Rural Classroom
E-Rate Reform
Arlington, SD
Population: 915

7. E-Rate Reform
Video:
https://www.youtube.com/watch?v=
N4drkZVd9ig

8. E-Rate Reform

9. • Bandwidth Demands in 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 by the 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

11. E-Rate Reform
http://usac.org/_res/documents/sl/pdf/handouts/application-process-flow-chart.pdf

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 to Smartboards
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”
July 2013
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-Rate Modernization 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 max C2 discount is 85% to encourage most cost-effective option.

18. E-Rate Reform

19. A New Budget Hole 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

21. E-Rate Reform
educationsuperhighway.org

22. E-Rate Reform
SD’s schools
are ranked #3
in connectivity.
educationsuperhighway.org

23. E-Rate Reform
SD’s schools are
ranked 47th for
accessing their E-Rate
budgets for Wi-Fi.
educationsuperhighway.org

24. Unlocking Support for Wi-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

25. E-Rate Reform

26. Questions?

27. Connect with SDN
Carrie.Johnson@sdncommuncations.com
www.sdncommunications.com