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Presented by: Joe Melloy April 19, 2007

E-rate – What is it?. Presented by: Joe Melloy April 19, 2007. My Background Joseph P. Melloy, Sr. 33 years with IBM Technical marketing, systems engineering, management Higher Education Technology Consultant 1981-1993 President, Technology Planning Group,Inc 1993 to the present

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Presented by: Joe Melloy April 19, 2007

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  1. E-rate – What is it? Presented by: Joe Melloy April 19, 2007

  2. My BackgroundJoseph P. Melloy, Sr. • 33 years with IBM • Technical marketing, systems engineering, management • Higher Education Technology Consultant • 1981-1993 • President, Technology Planning Group,Inc • 1993 to the present • Higher education clients – Mid-Atlantic area • Delaware, Virginia, Maryland, Pennsylvania, New Jersey • K-12 clients – Pennsylvania and Delaware • Recent activities: Vision 2015 Working Group • Technology plans – charter schools • E-Rate expertise – Pennsylvania and Delaware

  3. Contact Information • joemelloy@comcast.net • Cell 302-547-8517

  4. Agenda • Background of the E-Rate • What products and services are eligible for discounts? • How is the discount determined? • When is the next E-Rate process “Year”? • What is the process? • HOW HAS DELAWARE DONE IN ACQUIRING E-RATE FUNDS? • What is my school or district’s plan to secure E-Rate funding for educational technology?

  5. What is E-rate? • Telecommunications Act of 1996 established “Universal Service Discount Program for Schools and Libraries” • Annual $2.25 billion program • Provides 20-90% discounts on telecommunications services, Internet access, and internal connections • Fund made up from charges on your phone bills • Most public libraries, public and private K-12 schools, including charters and vo-techs are eligible

  6. How Has Delaware Done? • Over ten years of the E-Rate program…..

  7. The Answer: • NOT WELL!

  8. Last Place Among Fifty States for Eachof the Ten Years of the Program • Source: Article: “E-Rate Discount Totals Over 10 Years’ • Source www.nctet.org • Total of Ten years of Discounts: • Delaware $11,044,978. • Similar population states: • New Hampshire $15,875,210 • South Dakota $42,258,467. • Rhode Island $58,958,867. • North Dakota $32,628,670

  9. DE Comparison to Nearby States • NORMALIZE 10 years of data to $ PER STUDENT / PER YEAR COMPARISON • StateE-Rate $#Students$ / Student/ Yr • MD $152mm 865,561 $17.54 • PA $629mm 1,828,089 $34.42 • NJ $436mm 1,393,347 $31.28 • DE $11mm 116,342 $ 9.50

  10. New DE E-Rate Strategy Needed • First, Let’s Talk About the Details of the E-Rate……… • Strategy will evolve by the end of this presentation after we look at • THE PROCESS……..

  11. Who Administers E-rate?* • FCC • Created program and its rules • USAC • Universal Services Administrative Company • Created by FCC to run E-rate and other universal service programs • Pays invoices • SLD • Schools and Libraries Division • Entity within USAC that runs E-rate • Makes no policy decisions

  12. E-Rate Funds • Who contributes the funds that are set aside to fund technology for schools in schools and libraries?

  13. The Answer: • We all do! • When we pay our telephone bills…. • Universal Access Charge

  14. Public Service Commision Report • Delaware PSC, FCC hearing, June 14, 2005 • “Delaware end-users pay 10.2% surcharge on their telephone bills”. • “In 2005, Delawareans will pay $21 million in this surcharge and will receive back only $685,000 in federal E-Rate funds. Something must be done to limit the size of this fund.” • Source: • Bruce Burcat, Executive Director • Delaware Public Service Commission

  15. How are they distributed? • WE APPLY FOR THEM. • OUR APPLICATIONS ARE APPROVED, BASED ON THE FACTS WE PROVIDE. • THE DISCOUNTS ARE DETERMINED BY THE ADMINISTRATIVE ENTITY IN WASHINGTON – USAC. • THE APPROVED SERVICES ARE PROVIDED AT THE DISCOUNTED RATE.

  16. Why Are We Talking About E-Rate? • DE schools and libraries can apply alongside 30,000 other schools and libraries in U.S • You want to make sure you know how to complete forms, etc., so you can get the funding you’re entitled to. • Work with a qualified consultant and/or utilize in-house staff to insure accuracy and legitimacy of all requests.

  17. Fair Warning! • E-rate is not an easy process • Only for the strong willed and determined • Long process, a lot of paperwork, some frustration • Patience is needed, in addition to diligence in reading correspondence • Rewards can be great • Never ever try to cheat the program

  18. Resources to Remember* • SLD web site: www.sl.universalservice.org • SLD CSB: 888-203-8100 • Or Google search “SLC E-Rate” • Other state E-Rate websites

  19. Applicants • Must use E-rate Entity Number in order to participate • One for every building in your district or library • All applicants already have unless it’s a new building • Must have FCC Registration Number (FCCRN)* • Just for billed entity • All applicants should have obtained in Yr 7 • Must have NCES code (schools) or FSCS (libraries) • Listed on PA E-rate website under Helpful Documents • Leave blank if none exists

  20. Service Providers* • Must obtain Service Provider Identification Number in order to participate (9 digit #) • Info on SLD web site under Vendor Area • Service Provider/SPIN Search on SLD web site • Not required to pay into Fund to get SPIN • Only telecom carriers must pay • Only sign contracts with providers that have SPIN • Providers should update contact info on Form 498, Block 11

  21. Needed - demand exceeds cap of $2.25 billion Priority One: Telecommunications and Internet Access All approved-inside the window-likely to be funded Priority Two: Internal Connections & Basic Maintenance of IC Funds go first to neediest applicants (90% discount level), then to others in order of discount until funds are exhausted Year 1 -- funded to 70% Year 2 – all approved applications funded Year 3 – down to 82% Year 4 – down to 87% Year 5 – down to 81% Year 6 – down to 70% - significant rollover funds Year 7 – down to 81% Year 8, 9, 10 – approximately 86% Funding Priorities

  22. Funding Priorities • What does this mean? • Always apply for all telecommunications services and Internet access – you’ll get those discounts. • Make judgement call on internal connections depending on discount level and time available to complete application

  23. Exactly what services ARE and are NOT eligible? Current and Future Services You Use or Plan to Use

  24. Eligible Telecom Services • MUST be provided by regulated telecommunications carrier • Basic Telecom Services • Local, long distance & voice mail • Advanced Telecom Services • T-1, ATM, Frame Relay, ISDN, lit fiber, etc. • Satellite services and leased dishes • Voice over IP (Internet Protocol) - • ADDED IN 2007! Including most taxes and surcharges!

  25. E-Rate Discount Checklist • Source: • www.universalservice.org/ • “Eligible Services List” • Note page number in first column • IMPORTANT: “Check conditions of Eligibility of each service or product” • Can be done at school, district or consortium level.

  26. Eligible Telecom Services, cont. • Wireless Services • Cellular service – all staff eligible • Paging service • Calling cards • Not pre-paid cards • Centrex, custom calling features • Installation fees OK • Can be installed before funding year begins so services are ready by July 1

  27. Ineligible Telecom Services • 900 Calls • Payphones • Cost of not-publishing phone numbers • Cost of additional directory listings • End user equipment (phones, beepers, cell phones, fax machines, etc.)

  28. Eligible-Tariffed Services/MTM* • Services that are purchased mainly from a phone company, such as T1 OR • Monthly services such as cell or Internet Access • For which no contract is signed • Must competitively bid every year, regardless of competition in your area for those services

  29. Fiber Networks* • Dark Fiber (unlit) is not eligible • Lit Fiber is eligible … IF • Modulating electronics are bundled with the lease cost of the fiber • Applicant will never own fiber • Applicant cost allocates any lease of fiber that isn’t being used in that funding year.

  30. Eligible: Subscription fee to ISP E-mail Firewall fees Webhosting Internet bandwidth Ineligible: Filtering Any remote access outside school property to internet Blackberry services presumed ineligible Internet Access

  31. On-premise, Priority 1 Equipment* • Permitted if bundled from telco or ISP • Must certify: • No applicant ownership – ever • No exclusive use • LAN functions without use of equipment • Service provider maintains equipment • Not applicant

  32. Network and phone wiring Routers Switches Hubs Network servers Video codecs System operating software Wireless Access Points Private branch exchange (PBXs) Firewalls Anything needed for transport – not end user devices Installation of eligible internal connections “Basic” Maintenance contracts on eligible internal connections basic maintenance Eligible Internal Connections

  33. Network management s/w Routers used for remote access Curriculum software Phones, beepers Owned WANs Salaries of SD staff to install or maintain network or components Any equipment used for remote access to network or Internet Personal computers FAX machines Asbestos removal Cameras Electrical wiring Teacher training Ineligible Internal Connections

  34. 2-way Radios/walkie-talkie (direct connect OK as a cell service) Filtering Network monitoring Directory advertising/listings Cellular phones Management Redundancy Helpdesk 24 hour technical support Insurance policies Remote access Gotcha!Words to Never Use with SLC

  35. Application process at a Glance*

  36. UPCOMING: Year 11 - Details • For services rendered 7/1/2008 - 6/30/2009 • Application process begins Nov., 2007 • Five months away…..ninety day exercise. • Write tech plan now • Review Form 470 requirements • File 471 when window opens (normally beginning of November) • Window will close first week in February, 2008 • Must be inside window to be funded for 08-09

  37. You Must Have a Technology Plan!* • Five SLC technology plan criteria • Goals and Strategies for using technology • Needs Assessment • Professional Development • Budget – including sources of funding • Evaluation • Must align with 470 request for services • Must be “written” before 470 is filed • Must cover full 12 months of NEXT funding year • Plan must be approved by DCET (Denise Allen)

  38. Technology Plans, cont. • “Vendors” cannot write or approve technology plans • No tech plan required for basic phone service or long distance (includes cell and voice mail) • Centrex is not basic phone service • Be sure to include dates of tech plan! • Get approval letter by July 1 • then Print/Maintain Approval Letter • Tech plans approved for no more than 3 years • Certify on 486 who approved plan • Can amend technology plan if yours is not specific enough

  39. Competitive Bidding • Everyone must do it • Even if no competition in your area • Even if bidding under state law • Must be done when signing any new contracts • Must be done each year for all tariffed/MTM services • Bidding on web site does not exempt you from bidding under state law • Can be done simultaneously • Only exception is if someone bid it for you

  40. Choosing the Winning Bid • Applicant must to pick “most cost-effective bid” • Cost doesn’t have to be only factor, but must be most heavily weighted factor • For example, if you have 3 bid evaluation criteria, price must be at least 34% of total weight. • Examples of other specified factors: • Prior experience • Personnel qualifications • Technical excellence • Management capability • Cost of switching providers • Etc.

  41. Signing E-rate Contracts* • Signing Contracts/Selecting Provider must be done before you submit 471 • Be careful not to make any decisions, sign anything or file any forms during 28 day waiting period. • Contracts must be signed and dated by both parties • Must sign contracts unless tariff or MTM service • If selecting PEPPM, no contract needed, but you must be able to explain why you chose reseller A over reseller B

  42. Signing E-rate Contracts* • List contract extensions and contract expiration dates • These also must be listed in RFP or 470, Item 7b • Include non-E-rate funding out clauses • Separate internal connections/wiring portions of contracts for highest discount schools

  43. What is My Discount?* • Two criteria make up discount: • Poverty level - Federal School Lunches • Location -rural classification

  44. Discount Matrix for Single School* % of Students Eligible for School Lunch Program Discounts

  45. Goal: Discounts based on true eligibility – not participation. 2 Ways to do this Take existing participation data and add to it Using sibling match Using existing family income data Conduct family income survey Must survey 100% of families. If 50% response rate, then OK to extrapolate the rest Maintain complete records Sample survey available* Valid for 2 years Alternative Measures to NSLP Data*

  46. Discount Calculations by Entity* • Schools: Use straight matrix discount • Districts: Use weighted average of schools’ individual discounts • Library: Use the total number of students eligible for NSLP in the school district in which the library is located divided by the total number of students in that school district, then use matrix discount • Library System: Uses simple average of member libraries’ discounts • Consortium: Uses simple average of members’ discounts

  47. If You Are an Individual School* Always uses straight matrix discount for single schools.

  48. If You Are a School District* District discounts are based on weighted average discounts, based on individual school discounts.

  49. If You are a Library Outlet/Branch or Library System*

  50. If You Are a Consortium*

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