Chad Poppell, Secretary FETC 2015 1 Impacts of the FCC E-rate Modernization Process Lauren Harris.

Chad Poppell, Secretary1

FETC 2015

Impacts of the FCC E-rate Modernization Process

Lauren Harris

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Overview• Overview of changes• Changes to the eligible services list• Discounts• Urban/rural• Category Two budgets• Consortium• Cost allocation• Cost effectiveness & lowest corresponding price

compliance• Simplified multi-year contracts & competitive

bidding exemption• 471 process

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FCC E-rate Modernization• July 23, 2013 – E-Rate Notice of Proposed Rulemaking• December 23, 2013 – FCC seeks comment on information collection• February 7, 2014 – FCC seeks focused comment on Modernization • May 23, 2014 – Order (Cost Allocation)• July 11, 2014 – FCC vote on E-rate Modernization• July 23, 2014 – Report & Order, Further Notice of Proposed Rule Making

(FNPRM)• July 23, 2014 –August 12, 2014 – Staff White Paper & Fiber Maps• October 2014 – Errata 1-3 released• October 27, 2014 – Final FCC Forms 470 & 471 Approved• October 29, 2014 – Final ESL released• December11, 2014 – FCC vote on Second E-rate Modernization Order• December 22, 2014 – Second E-rate Modernization Order Released• January 5, 2015 – § 54.502 and changes to FCC Form 471 effective via

Federal Register• January 14, 2015 – Funding Year 2015 application window opens

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Implementation Dates

• July 23, 2014 – Report and Order Released• August 19, 2014 – Published in Federal Register• Effective dates – Varied– July 1, 2014– September 18, 2014– Upon OMB approval of related FCC forms– FY 2016

• January 5, 2015 – § 54.502 and changes to FCC Form 471

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What Was Impacted?

– Appeals Process

– Bundling Services

– Categories / Priorities

– Cost Allocation Requirements

– Dates & Deadlines

– Definitions (eligible services, eligible users, etc.)

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What Was Impacted?

– Dark and Lit Fiber

– Discounts & Calculations

– Eligible Services & Locations

– Funding Caps & Floors

– Online Filing requirement

– Process for Applicants

– Streamlining USAC/FCC Processes

– Consortium Applications


CHANGES TO ELIGIBLE SERVICES

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Eligible Services List (ESL)

• Changes to ESL structure– Restructured ESL to Categories One & Two

– Focus support on services and components needed for broadband connectivity within schools and libraries

– Eliminates other services and components beginning in Funding Year 2015, including• Voice Phase out over five years

• Flash cuts in both Categories

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Services & Components

• Eligible Services List (ESL) released Oct. 29, 2014

• Flash cut starting Funding Year (FY) 2015– Web hosting, voice mail, and email

– P2 voice-related components (“Telephone Components” in past ESLs): • Paging, directory assistance charges, text messaging,

custom calling services, direct inward dialing, 900/976 call blocking, and inside wire maintenance plans

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Flash Cuts & Definition Changes

• Some components and services in flash cut categories of service still eligible under different terms or in different sections, e.g.: – “Interfaces, Gateways, Antennas” section flash

cut• Exception for antennas is outlined in ESL Order

– “Cable Modem” appears under Category One Digital transmission services and Internet access services

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Category One ServicesEligible for Support

Voice Data

• Centrex• Circuit capacity dedicated to providing

voice service• Interconnected VoIP• Local, long distance, 800 service• Plain Old Telephony System• Radio Loop• Satellite telephone service• Shared telephone service• Wireless telephone service

including cellular voice Excludes data and text

messaging

• Asynchronous Transfer Mode• Broadband over Power Lines• Cable Modem• DSL• DS-1, DS-2, DS-3• Ethernet• Fiber (Lit and Dark)• Frame Relay• Integrated Services Digital Network• OC-1, OC-3, OC-12, OC-n• Satellite Services• SMDS• Telephone Dialup• T-1, T-3, Fractional T-1• Wireless Service

(e.g. microwave)

(Effective Funding Year 2015)

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Category Two Components Eligible for Support

Components eligible for Priority Two support:

• Access points• Cabling • Caching• Firewalls• Network switches• Routers • Racks • Uninterruptable power supply/Battery back-up• Wireless Local Area Network (WLAN) Controllers• Improvements, upgrades and software necessary to

support eligible broadband internal connections components


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Services and Components No Longer Eligible for Support

Category One (Priority One) Category Two (Priority Two)

Services and telephone components that were listed as eligible in the

former Priority One category: • 900/976 call blocking • Custom calling services • Direct inward dialing • Directory assistance charges • Email • Inside wire maintenance plans • Paging • Text messaging • Voice mail • Web hosting

Components included in these former Priority Two entries:

• Circuit Cards/Components• Data Protection (all except for firewall

and uninterruptible power supply/battery back-up)

• Interfaces, Gateways, Antennas (other than as specified in this Order)

• Servers (other than servers necessary for caching)

• Software (other than the software that supports eligible broadband internal connections)

• Storage Devices• Telephone Components• Video Components• Voice/video IP components (that had

been listed in the Data Distribution entry


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Clarification on Multi-Protocol Label Switching (MPLS)

• MPLS explicitly eligible for Category One support

• FCC E-rate Definition: MPLS allows providers to create a single integrated network infrastructure that can be used to provide multiple services to the enterprise customer, and many service providers use MPLS in their networks to facilitate Internet protocol (IP) transport.

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Clarification on MPLS

• Seek funding for MPLS based on the type of provider they select to provide the service– If telecommunications carrier provides MPLS, select the

telecommunications service category on the FCC Form 471.

– In all other cases, the applicant should select the Internet access category on the form.

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Clarification: Distance LearningVideo Conferencing and Interactive

Television• Although no longer highlighted in the ESL itself,

telecommunications transmission and Internet access used for these purposes remains eligible.

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Clarification: Distance LearningVideo Conferencing and Interactive

Television• FY 2015 ESL cautions:

– Only the underlying transmission providing access to distance learning, video conferencing and interactive television are eligible.

– Components that have been ineligible in prior years remain ineligible including non-telecommunications components:

• Scheduling services

• Services for creation

• Maintenance and storage of content, and

• Charges for distance learning or video conferencing utilities such as web meetings or online collaboration solutions

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Caching

• A caching service, or caching equipment or components, including servers that provide caching, are eligible for funding. – Eligible in tandem with Category Two Internal

Connections

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Caching

• Previous ESLs defined a “caching service”:– “…a special high-speed storage mechanism at the

border of a network and the Internet that holds frequently accessed Internet information, thereby reducing retrieval times for information often requested from the Internet.”

• Now define caching as: – “A method that stores recently accessed information.

Caching stores information locally so that the information is accessible more quickly than if it must be transmitted across a network from a distance.”

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Antennas

• FY 2015 ESL clarifies the eligibility of antennas:– If used in and in conjunction with the internal

connections needed to enable high-speed broadband connectivity within schools and libraries, are eligible.

– As integral part of the Local Area Network (LAN) or Wireless Local Area Network (WLAN) are eligible for Category Two funding, because they are subsumed by or essential to the components necessary to distribute internal broadband services within a school or library.

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ESL Format

• Significant updates to structure of ESL

• Removes:– “Special Eligibility Conditions” section

– Glossary

– Descriptions of conditions impacting eligibility

– Descriptions that provide extra information pertaining to certain services

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Cellular Data Plans

• FY 2013 & 2014 applications

• Retroactive application of:– Clarifications in Seventh Report and Order

– FY 2015 ESL

– May 2014 Order

• Going forward:– Cost allocate bundled devices

– Document cost effectiveness

– Avoid duplicative use

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Eligible Service Lists

Any Questions?


DISCOUNTS

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July Report and Order

To make the E-rate application process and other E-rate processes fast, simple and efficient

– Simplify discount rate calculations by:• Requiring a district-wide discount rate

• Modifying the definition of urban and rural

• Addressing changes to the national school lunch program (NSLP)

• Modifying the requirements for applicants using surveys (disallows extrapolation)

Discounts

• Discounts are 20‐90 percent or 20-85 percent of eligible costs, depending on category of service.

• Discount level for a school or library depends on:– Level of economic need (poverty indicator),

– Urban or rural designation of district where located, and

– Category of service (max discount, phase-down discounts).

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Discounts

Schools and Districts:– District

• All schools in the school district get the district discount, even if they apply individually or are the only recipient of service.

• Weighted average of schools in district.

– Independent schools, not part of a district

• Calculate discounts based on own student population

• Determine urban/rural status based on physical address

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Discounts

Libraries and Library Systems:– Based on the district-wide discount of the school

district in which the main outlet is located.

• Applicants no longer calculate discount based on all districts in which library system has outlets.

– Calculate urban/rural status based on outlet locations.

• A library system’s discount may not match the school district’s discount rate.

• Bookmobile and kiosks count as library outlets.

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Discounts

Consortia:

• Calculate discount based on the simple average of their consortia members.

• Consortia members are listed at their district-wide discount rate, even if only some schools in the district participate in the consortium. – Only consortia entities can get a discount that doesn’t

come straight from the discount matrix.

– All funding request numbers (FRNs), regardless of the entities served, get the same consortia-wide discount rate.

Discounts

• Voice Services Phase Down– All voice service are subject to a 20 percentage

point reduction per year from your regular discount for the next five years.

• FY 2015 = Regular discount – 20 percent

• FY 2016 = Regular discount – 40 percent etc.

• Category Two Top Discount– Top discount rate = 85 percent instead of 90

percent

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Discounts

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Discounts for Category One vs Category Two

Category One Telecom – Reduces by 20 percent annually, starting FY 2015 to phase-out

INCOME percent of students eligible for National

School Lunch Program

FY 2014 (past year)

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Urban

RuralUrba

nRural

Urban

RuralUrba

nRural

Urban

RuralUrba

nRural

< 1 20 25 0 5 0 0 0 0 0 0 0 0

1-19 40 50 20 30 0 10 0 0 0 0 0 0

20-34 50 60 30 40 10 20 0 0 0 0 0 0

35-49 60 70 40 50 20 30 0 10 0 0 0 0

50-74 80 80 60 60 40 40 20 20 0 0 0 0

75-100 90 90 70 70 50 50 30 30 10 10 0 0

Discount Mechanisms

1. National School Lunch Program (NSLP)

2. Community Eligibility Program (CEP)

3. Surveys

4. Other recognized poverty indicators

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DMS

Clarify poverty indicators

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Discount Mechanisms

Community Eligibility Provision (CEP) – – Accepts USDA national CEP multiplier

• 1.6 x Direct Certification

– Number of eligible students in a CEP school cannot exceed the total number of students in that school

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Discount Mechanisms

Community Eligibility Provision (CEP) –

– CEP applicants will not be required to calculate their discount rate every year• Use the calculation that they use during the course of a

four-year CEP cycle.

– If, during the four-year cycle, a school’s percentage of identified students increases• may use the higher percentage in determining USDA

reimbursement.

– If the percentage of identified students decreases• school may continue to use the original percentage for the

remainder of the four-year eligibility period.

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Discount Mechanisms

Surveys• Surveys continue to be valid, though you can no

longer extrapolate based on results.

• If you send out a survey to each student, and you only get responses from half, and only half of those are eligible, then you can only report 25% of your students as eligible for NSLP.

• Starting in FY 2015, you can use NSLP applications as your survey instrument, because you can no longer extrapolate the results.

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Discounts

Any Questions?

Chad Poppell, Secretary

URBAN/RURAL

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Urban/Rural

• Urban/rural status – Based on most current U.S. Census Bureau

data

– Determined for the entire school district or library system, instead of for individual schools or libraries

– More than 50 percent of the entities in a district/system must be rural for district/system to be classified as rural

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Updated Definition of Rurality

• “The Census definition classifies a particular location as rural or urban based on population density and geography, and other criteria involving non-residential development.”

• U.S. Census urban areas and urbanized clusters with populations under 25,000 receive rural designations

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Impacted Urban Clusters & Urbanized Areas

NAMESTAT

E

Total Population in Urban Cluster

CATEGORY

Alachua, FL FL 4114 UC - smallApalachicola, FL FL 3691 UC - smallArcadia--Southeast Arcadia, FL FL 17490 UC - smallBelle Glade, FL FL 24870 UC - smallBig Pine Key, FL FL 7540 UC - smallBlountstown, FL FL 4751 UC - smallBonifay, FL FL 4230 UC - smallBurnt Store Marina, FL FL 3061 UC - smallBushnell, FL FL 3500 UC - smallCentury, FL--AL FL 3321 UC - smallChattahoochee, FL FL 5508 UC - smallChipley, FL FL 3846 UC - smallClewiston, FL FL 12833 UC - smallCrawfordville, FL FL 8342 UC - smallCrescent City, FL FL 2812 UC - smallCrestview, FL FL 32432 UC - largeCrooked Lake Park, FL FL 4335 UC - smallCross City, FL FL 3773 UC - smallCrystal River, FL FL 4388 UC - smallDe Funiak Springs, FL FL 5812 UC - smallFellsmere, FL FL 5294 UC - small

NAMESTAT

E

Total Population in Urban Cluster CATEGORY

Fernandina Beach, FL FL 25239 UC - largeFort Meade, FL FL 6234 UC - smallFour Corners, FL FL 35549 UC - largeFrostproof, FL FL 7626 UC - smallGolden Gate Estates, FL FL 3953 UC - smallGraceville, FL FL 4037 UC - smallHavana, FL FL 2771 UC - smallHigh Springs, FL FL 3022 UC - smallImmokalee, FL FL 23160 UC - smallIndiantown, FL FL 6503 UC - smallInterlachen, FL FL 5805 UC - smallJasper, FL FL 5404 UC - smallJupiter Farms, FL FL 10962 UC - smallKey Largo, FL FL 18121 UC - smallKey West, FL FL 32095 UC - largeKeystone Heights, FL FL 6544 UC - smallLaBelle--Port LaBelle, FL FL 12054 UC - smallLake Bryant, FL FL 3552 UC - smallLake Butler, FL FL 5057 UC - smallLake City, FL FL 25623 UC - largeLake Panasoffkee, FL FL 3365 UC - small

U.S. Census Bureau American Fact Finder

http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml


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Impacted Urban Clusters & Urbanized Areas

NAMESTAT

E


Lake Placid, FL FL 16351 UC - smallLive Oak, FL FL 6994 UC - smallMacclenny, FL FL 10984 UC - smallMadison, FL FL 3843 UC - smallMarathon, FL FL 8965 UC - smallMarianna, FL FL 6086 UC - smallMarion Oaks, FL FL 14160 UC - smallMoore Haven, FL FL 3205 UC - smallNassau Village-Ratliff, FL FL 5243 UC - smallOcala Estates, FL FL 2939 UC - smallOkeechobee--Taylor Creek, FL FL 25378 UC - largeOrangetree, FL FL 7624 UC - smallPahokee, FL FL 7179 UC - smallPalatka, FL FL 23982 UC - smallPanama City Northeast, FL FL 5817 UC - smallPerry, FL FL 6933 UC - smallPoinciana Southwest, FL FL 5501 UC - smallPoinciana, FL FL 41922 UC - largePort St. Joe, FL FL 3635 UC - smallQuincy, FL FL 9292 UC - smallRainbow Lakes Estates, FL FL 5155 UC - small

NAMESTAT

E


Ridge Manor, FL FL 2971 UC - smallSanta Rosa Beach, FL FL 4512 UC - smallStarke, FL FL 5676 UC - smallSugarmill Woods, FL FL 8816 UC - smallTrenton, FL FL 2724 UC - smallWauchula, FL FL 14621 UC - smallWedgefield, FL FL 4505 UC - smallWilliston, FL FL 3244 UC - smallWoodville, FL FL 5427 UC - smallWorld Golf Village, FL FL 6622 UC - smallYulee, FL FL 7534 UC - small

U.S. Census Bureau American Fact Finder



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Rural Urban

Any Questions?


CATEGORY TWO BUDGETS

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Funding Category Two

• $1 billion target for Category Two through FY 2020

• Funding based on per-entity (not per-building) budget– Five year budget cycle, counting from first

commitment

– Budget is for pre-discount costs– Can be used any time over five years

– Still use the district-wide discount

– Apply each year of desired funding

– No budget for a Non-Instructional Facilities (NIF) or a NIF with classrooms

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• Can your budget change? Yes

– It may increase if…– Student count or square footage increases

– Population increases to 25,000 (libraries)

– It may decrease if…– Student count decreases

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Funding Category TwoWhat happens if your budget changes?

• Existing schools: – Do not need to repay the fund for money disbursed in

excess of the five‐year budget in years when your student count was higher.

– Decrease total budget for remainder of five year budget cycle based on actual student count.

• New schools: – Return any funds in excess of the allowable budget to USAC.

– Decrease total budget for remainder of five year budget cycle based on actual student count.

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• The pre-discount budget calculation is for a five-year period, starting with the first funding year in which you receive Category Two support.– However, you can apportion your pre-discount

budget in a manner that best meets your needs. You could spend all of it in FY2015, spend 1/5 each year, or any other combination up to your total.

• The FCC has committed to using the budget-based approach for funding Category Two support through FY 2019.

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• Category Two Calculation - Budget Cap & Floor

– Per entity (not building)

– $9,200.00 floor

– Schools/ Districts use per student (x $150.00)

– Libraries use per square foot (x $2.30 or $5.00)

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• My school has 200 students. How do I calculate my Category Two pre-discount budget?– 200 students x $150 per student = $30,000.

• My library is 3,500 square feet. How do I calculate my Category Two pre-discount budget?– 3,500 square feet x $2.30 per square foot = $8,050.– However, there is a $9,200 floor. Since the result of

the calculation is less than $9,200, the pre-discount budget is $9,200.

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• The budget is PRE-DISCOUNT.• For example, for a school with 1,000 students:

– At the 85% discount rate (the maximum discount rate for Category Two), the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $127,500.

– At the 50% discount rate, the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $75,000.

– At the 20% discount rate, the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $30,000.

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Funding Category TwoMy school district has three schools – School A with 25

students, School B with 50 students, and School C with 75 students. How do I correctly allocate a shared service with a

pre-discount cost of $300?Straight line

A = $100

B = $100

C = $100

$300

Proportional by students

A = 25/150 x $300 = $50

B = 50/150 x $300 = $100

C = 75/150 x $300 = $150

$300

Specific (e.g., usage)

A uses 30% = $90

B uses 15% = $45

C uses 55% = $165

$300

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Budgets

Any Questions?


CONSORTIUM

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Consortium

• Consortium – definition revised to include:

“…health care providers eligible under subpart G, and public sector (governmental) entities, including, but not limited to, state colleges and state universities, state educational broadcasters, counties, and municipalities, although such entities are not eligible for support.” (¶182)

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Consortium

• Authority via Letter of Agency (LOA) or statute for Form 470, differs from Form 471

• Clarifies that applicants can authorize a consortium lead to act on their behalf for multiple years, and need not reaffirm that authorization every funding year Must be clearly outlined in LOA.

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Consortium LOAs

• All LOAs (single year or multi-year) must include the following:– Name of the person filing the application

– Name of the person authorizing the filing of the application

– Specific time frame the LOA covers

– Signature and date

– Title of an official who is an employee of the entity authorizing the filing of the application

– Type of services covered by the LOA

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Consortium Discounts

• Discounts and Category Two budgets should be allocated among entities sharing services.

• Your allocation can be:– Straight-line (all entities share the cost equally)– Proportional (based on student count/square footage of

each entity)– Specific (you specify each entity’s share)

• Can still distribute discounts among members based (at least proportionately) on their individual discounts.

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Applying Consortium DiscountsMy consortium has three schools – School A with 25 students, School B with 50 students, and School C with 75 students. How do I correctly allocate a shared service with a pre-discount cost of $300?

Straight Line

Proportional by Student Specific (e.g., usage)

A = $100 A = 25/150 x $300 = $50 A uses 30 percent = $90

B = $100 B = 50/150 x $300 = $100 B uses 15 percent = $45

C = $100 C = 75/150 x $300 = $150 C uses 55 percent = $165

$300 $300 $300


COST ALLOCATION REQUIREMENTS

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May 23, 2014 Order

• Cost allocation of bundled equipment is required once again

– “E-rate applicants must deduct the value of ineligible components bundled with eligible services unless those ineligible components qualify as “ancillary” to the eligible services under the Commission’s rules.”

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May 23, 2014 Order

• Ancillary - An ineligible component is ‘ancillary’ if a price for the ineligible component cannot be determined separately and independently from the price of the eligible components, and the specific package remains the most cost-effective means of receiving the eligible services, without regard to the value of the ineligible functionality.

• Definition: Something is ancillary if it is providing necessary support to the primary service or component.

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Cost Allocation

Based on eligibility:

– Location • Facilities, buildings, classrooms

– Use• Educational

• Supporting educational activities

– Users• Students

• Staff/ support staff involved in educational activities

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May 23, 2014 Order

• Justification for rescinding 2010 Clarification:– Not enough clarification/ limitations on types of

equipment or services that could be bundled

– Potential for breach of gift rules

– Concerns that E-rate funding was “…paying for more than just eligible services.”

– Potential to use to circumvent other cost allocation requirements

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Cost Allocation

Any Questions?


COST EFFECTIVENESS & LOWEST CORRESPONDING PRICE COMPLIANCE

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• To maximize the cost-effectiveness of spending for E-rate supported purchases– Adopt transparency measures to encourage sharing

of cost and connectivity data

– Emphasize that providers must offer the lowest corresponding price.

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Lowest Corresponding Price (LCP)

• LCP applies to both bids and charges– “The LCP rule prohibits an E-rate provider from

“charg[ing]” E-rate applicants a price higher than the lowest price that provider charges to non-residential customers who are similarly situated to a particular school, library, rural health care provider or consortium that purchase directly from the service provider.”

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Lowest Corresponding Price (LCP)

• Onus is on provider to comply with LCP requirement in bidding and billing practices.

• USAC is instructed to maintain a public database of pricing to encourage compliance

• Applicants are encouraged to report infractions Consider building verbiage for LCP compliance into

procurement and contractual documents

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Cost Effectiveness

Any Questions?


SIMPLIFIED MULTI-YEAR CONTRACTS & COMPETITIVE BIDDING EXEMPTION

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• To make the E-rate application process and other E-rate processes fast, simple and efficient

– Streamline the application process by:• Simplifying the application process for multi-year

contracts

• Easing the signed contract requirement

• Removing the technology plan requirement

• Requiring electronic filings

• Enabling direct connections between schools and libraries

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Preferred Master Contracts

• Preferred Master Contracts – – Preferred master contracts are master contracts

designated by the FCC as Preferred Master Contracts that offer eligible entities nationwide opportunities to obtain excellent pricing for Category Two equipment.

– Required to include Category Two equipment available on a preferred master contract in their bid evaluations if it is the same equipment the applicant sought on its FCC Form 470

– State master contracts and nation-wide contracts are not the same as preferred master contracts

– None identified yet

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Competitive Bidding Exemption

• Exempting low-cost, high-speed business-class broadband Internet access from the competitive bidding requirements – $3,600.00 annual threshold per school or library

– 10Mbps ↑ and 100Mbps ↓ minimum

– Applicants must be eligible for E-rate support in each of the years funding is sought

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Multi-Year Contracts

• Applicants must be eligible for E-rate support in each of the years funding is sought

• Services must be eligible for support in each such year

• Multi-year contract for E-rate supported services that is no longer than five years

• Changes in the requested services or to the terms and conditions under which those services are provided are within the scope of the establishing FCC Form 470 and the applicable contract.

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Multi-Year Contracts

• First year: applicants must file a complete FCC Form 471 in the first year of a multi-year contract that is eligible for this streamlined review

• Subsequent years: provide only basic information – identifying the applicant

– confirming funding request is a continuation of a FRN from a previous year based on a multi-year contract

– identifying and explaining any changes to their application (e.g. discount rate, membership of a consortium, or services ordered)

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Simplified Multi-year Contracts & Competitive Bidding Exemption

Any Questions?


ONLINE APPLICATIONS

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Filing Process

• To make the E-rate application process and other E-rate processes fast, simple and efficient– Direct USAC to adopt additional measures to

improve the administration of the program by:• Speeding review of applications, commitment decisions

and disbursements

• Modernizing USAC’s information technology systems

• Adopting open data policies

• Improving communications with E-rate applicants and providers

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Filing Process

• FCC Form 471– Online filing only for FCC Form 471

– The entity’s pre-discount and post-discount Category Two budget will be automatically calculated from information entered in other fields.

– Applicant entities may have to manually input budgets at points in online application.

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Filing Process

• FCC Form 471 – Additional data collected (Block 5 - level), e.g.:Internet Access (not required on consortia applications)

1. Does the school district (or school, if not part of a district) have Internet access of: less than 100 Mbps per 1,000 users (students and staff)

at least 100 Mbps per 1,000 users, but less than 1Gbps per 1,000 users

at least 1 Gbps per 1,000 users

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Filing Process• FCC Form 471 – Additional data collected (Block 5 - level), e.g.:

Wide Area Networking or WAN (not required on consortia applications)

1. How many of the schools have Wide Area Networking connections that are scalable to 10 Gbps?

2. Indicate how many schools have LAN/WLAN capacity and coverage in the following areas:

Completely sufficient to support the educational or library activities conducted there

Mostly sufficient to support the educational or library activities conducted there

Sometimes sufficient to support the educational or library activities conducted there

Rarely sufficient to support the educational or library activities conducted there

Not sufficient to support the educational or library activities conducted there

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Filing Process• FCC Form 471 – Additional data collected (Block 5 - level), e.g.:

Wide Area Networking (not required on consortia applications)

For those schools that do not have sufficient LAN/WLAN capacity and coverage to support the educational objectives or library activities conducted at that location, is the reason (check all that apply):

1. Equipment too costly2. Installation too costly3. Broadband connection

speed to building is too slow

4. Inadequate local area network (LAN) services/internal networks and wiring

5. Outdated equipment

6. Lack of training and technical support

7. Inconsistent service/frequent outages and down time

8. Physical structure or layout of building(s)

9. Other: _________________

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Filing Process

• FCC Form 471 – Additional data collected (Block 4 - level), e.g.: State local education agency (LEA) ID

State school ID

Number of students that attend full time or part time

An indicator of whether the school is a charter school

An indicator of whether the entity is tribal

An indicator of any alternative discount mechanisms that are used, such as the Community Eligibility Option under the National School Lunch Program (NSLP)

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Filing Process

• Templates will be available for applicants to prepare parts of the form:– Templates will be specific to type of recipients

of service or Item 21.

– Formatting and dropdowns will be embedded to make uploads easier.

– Modification of data (e.g., stripping headers and saving as *.CSV files) not required.

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Filing Process

Any Questions?


INVOICING, EXTENSIONS, AND DOCUMENT RETENTION

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• To make the E-rate application process and other E-rate processes fast, simple and efficient– Simplify the invoicing and disbursement

process by:• Allowing direct invoicing (BEAR)

• Adopting an invoicing deadline

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Reimbursements & Invoicing

• BEAR payments are now processed by electronic transfer payments directly to applicant accounts.

– Effective FY 2016

– Applicants provide account info to USAC

– “…payments will not be made to consultants...”

– “…service provider will be required to certify…”

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Extensions

• “…Single one-time invoicing extension for any given funding request, provided the extension request is made no later than what would otherwise be the deadline for submitting invoices: the latter of 120 days after the last day to receive service, or the date of the FCC Form 486 notification letter.”

• Applicants may “…Request and automatically receive…” one extension per FRN.

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Appeals

• Appeals must be filed first with USAC.

• After USAC denies appeal, then file with FCC.

• Appeals for invoicing deadline extensions:– “…We expect the Bureau and USAC to deny

any requests or appeals seeking an invoicing deadline extension of more than 12 months after the last date to invoice.”

• Waiver requests made directly to the FCC.

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Document Retention

• 10 Years

• From last day of service

• Applied across the board

• Digital records recommended

• USAC indicates that online record system is planned for future funding years.

93

Questions?

Craig J. Nichols, Secretary94

REVIEW

95

What Changed?

• Priority One becomes Category One

• Priority Two becomes Category Two

• All school buildings and programs share the districtwide discount

• Voice services will be phased down by 20 percent per year for the next 5 years

• Cost allocation requirement for bundled devices

96

What Changed?

• First ever budget limitations on Category Two

• Flat-rate calculations for Category Two budget over 5 years =Schools: $150 per student Libraries: $2.30 per sq. ft. or $5.00 per sq. ft.

• Ninety percent discount becomes 85 percent max discount in Category Two

• Document retention increased from 5 to 10 years

• BEAR payments become direct from USAC in 2016-17

• E-rate applications and correspondence 100 percent paperless by 2017-18

97

What Changed?

• Requirement to amortize Category One special construction charges in excess of $500,000 over multiple years suspended for four years

• Allows payment of non-discounted portion of non-recurring construction costs over multiple years

• Equalizes treatment of dark and lit fiber

• Permits self-construction, adds 10% match to state funding

• Mandates equitable broadband rates from High Cost/ CAF providers

• Annual cap: $3.9 billion adjusted annually for inflation

• Category Two annual funding target: $1billion

• Urban/ rural definition based on decennial U.S. Census with allowance for small urban clusters and urbanized are

Chad Poppell, Secretary FETC 2015 1 Impacts of the FCC E-rate Modernization Process Lauren Harris.

Documents

Transcript of Chad Poppell, Secretary FETC 2015 1 Impacts of the FCC E-rate Modernization Process Lauren Harris.