New Jersey’s College & Universities integrating technologies into instruction,

1. George Laskaris New Jersey’s College & Universities integrating technologies into instruction, research and public service through an enhanced statewide data/video network

2. Current Challenges • Overwhelming demand for access from our K-12 community • Efforts to reform New Jersey’s Telecom taxes and fees and to create a Telecommunications Trust Fund for the education and library community • Improving H.323 video and extending QoS across our campus networks

3. Fostering K-20 Collaboration • Established a grassroots K-20 advisory group that is actively developing joint projects intended to increase systemic collaboration between these communities • Extended I2 SEGP access to a growing number of interested K-12 districts • Looking at alternate organizational models to meet the requirements of a K-20 state education network • Engaging in dialogue with the leadership and governance structures of both communities.

4. Reform of Telecom Taxes and Fees • Changes in the telecom industry have led to a major erosion in state revenues – (Ford Foundation Grant) • Taxation statutes are based on older models of telephony which treated service providers as distinct and separate entities with little overlap in the range of services provided • Convergence in the industry has removed these boundaries and any service provider can technically and legally provide many or all telecom and cable communications services

5. Some Examples • Verizon, as the owner of local loop, is the only provider paying taxes for local exchange and regional toll even though the FCC has mandated that they provide their cable infrastructure to competitors like AT&T Qwest, and Sprint. • Wireless and Direct Broadcast Satellite pay no taxes • DBS avoids all right-of-way and franchise fees • Cable companies providing phone service not taxed • Issues poorly understood by the legislature.

6. Draft Reform Measures • Would repeal current tax statues • Impose an across the board 5% gross receipts tax for telecommunications and cable services and a 2% franchise fee for use of public rights-of-way • Would establish a Telecommunication Trust Fund for the use of advanced telecom services by New Jersey schools, colleges, libraries and public sector entities.

7. Potential Impact from $12.5B Base • Could generate $540M in new State Tax revenue • Could generate about $230M for municipalities • Could generate about $135M for a Telecom Trust Fund

8. Issues and Current Status • Legislative concerns over impact of tax changes • Providers have learned to take advantage of the situation and are actively lobbying against the effort • Current $4B deficit has re-opened discussions and consideration of reform measures • Best political climate now exists for enactment

9. Improving H.323 Video • Efforts to change the two campus cultures of data and video into a converged collaborative one • Providing leadership to extend QoS across our member campus networks • Established a formal site certification process for video which identifies and helps to solve many sources of problems. • Created a web-based clearinghouse for advice and troubleshooting information

10. More Information • http://www.njedge.net