E rate and Grant Opportunities

1. E rate and Grant Opportunities

2. E-rate 2.0 • FCC released 7th Report and Order July 23rd • Adopts three primary goals • ensuring affordable access to high-speed broadband sufficient to support digital learning in schools and robust connectivity for all libraries • maximizing the cost- effectiveness of spending for E-rate supported purchases • making the E-rate application process and other E- rate processes fast, simple and efficient. • Draft Eligible Services List released Aug 4th

3. Rule Changes of Note • Adopted bandwidth targets: • Internet bandwidth • At least 100 Mbps per 1,000 students and staff in short term • 1 Gbps per 1,000 users in the longer term • WAN bandwidth • Long-term target of 10 Gbps per 1,000 students • Making the Process Fast, Simple and Efficient • Streamlined application process for multi-year contracts • Eliminates the requirement for technology plans • Requires electronic filing of documents • Requires each district to calculate and use a single district-wide discount rate • Updates the E-rate program’s definition of “rural” • Extends document retention period from 5 to 10 years • Ensuring Affordable Access • $1 Billion Annual Target for Category Two Services • Increasing Minimum Contribution (i.e. Decreasing the Discount Rate) • Max discount for Category Two goes from 90% to 85%. Rest of discount matrix to be adjusted accordingly.

4. Per student Category 2 Funding Caps $150/Student x Students in District x Applicant Discount Rate = Total Budget for Category 2 through FY 2019 Bottom Line: $30/Student/Year for 5 years • Disproportionate Effect on Rural and Remote School Districts • Rural and small schools pay significantly more per student for P2 services than their urban counterparts • Higher implementation costs • Higher ongoing expenses • $30/Student viability requires economies of scale that are impossible in many rural and remote rural school districts

5. Service “Priorities” are now “Categories”* Category One: The services needed to support broadband connectivity • ATM, BPL, Cable Modem, DSL, Ethernet, Fiber (Lit and Dark),Frame Relay, Integrated Services Digital Network,OC-1, OC-3, OC-12, OC-n, Satellite Service, Switched Multimegabit Data Service,Telephonedial-up,T-1, T-3, Fractional T-1,Wireless services (e.g., microwave), Wireless Internet access and mobile hotspot Category Two: The services and internal connections for broadband connectivity • Access points, Cabling Caching, Firewalls, Routers, Racks, UPS, Wireless LAN Controller, Software Improvements and upgrades • Functionalities listed above that can be virtualized • Equipment that combines eligible functionalities, like routing and switching *Based on Draft Services Eligibility List (ESL) from FCC

6. Eligible Services Changes • The draft ESL reflects notable changes to eligible services compared to previous funding years: • Internet caching equipment has been added to the Category Two list of eligible equipment • Managed network services will be eligible as a Category Two service • On-campus wireless Internet access and mobile hot-spot data service plans will be eligible under Category One services, but must meet cost-effectiveness guidelines • Voice telephony services will be phased out of eligibility over a five-year period • Legacy telephone components, web hosting, voice mail and email services will not be eligible for E‑rate discounts as of Funding Year 2015 • Basic maintenance services for eligible equipment will remain eligible

7. Now Eligible: Managed Wi-Fi • Managed Wi-Fi: Third party operation, management, and/or monitoring of eligible broadband internal connections components • May include services necessary to manage and repair the LAN/WLAN network, such as diagnostic services, 24-hour network monitoring, or helpdesk support • Multiple managed services models: • Third partyowns and installs the equipment and school and library applicants lease the equipment as part of amanaged services contract • The school owns the equipment and has a third party manage it for them

8. More Information Available At • Universal Service Administrative Company – E-rate website • http://www.usac.org/sl/ • Funds For Learning – E-rate consultant • http://www.fundsforlearning.com/

9. Example Grants • 21st Century Community Learning Centers • Title 1 LEA Grants • GEAR UP Partnership Grants • Individuals with Education Disabilities Act • School-Based Health Centers Capital Program (SBHCC) • Health Care Innovation Challenge Grate • Investing in Innovation (i3) • Innovative Approaches to Literacy (IAL) • RUS-Distance Learning & Telemedicine

10. Distance Learning and Telemedicine (DLT) DLT focuses on using the unique capabilities of telecommunications to connect rural areas to each other and to the world to overcome the effects of remoteness and low population density • Interactive Video Equipment • Computer Network Components • Technical assistance and instruction • Computer Hardware and Software Exceptionally Rural Area: 5,000and under and not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population in excess of 5,000 • 50% Recommended Match • 2014 Funding up to $500K • 2014 Due Date July 7 Eligible entities: Currently deliver or are proposing to deliver education via telecommunications