Zeller and Associates, LLC

1. Zeller and Associates, LLC The e-RateProgram This presentation is available at www.zellerandassociates.com/erate Click on “Presentation: Joliet: May 7, 2014”

2. Overview • Timelines • Changes • Help • Agenda • The e-Rate Program

3. The e-Rate Program Overview

4. Federal Communications Commission (FCC), an independent U.S. government agency, established and oversees the E-rate program • Universal Service Administrative Company (USAC), a not-for-profit, administers the E-rate program along with three other programs • Schools and Libraries Program(SLD) is the part of USAC with responsibility for E-rate • E-rate Organization • Overview

5. Congress directed the FCC to establish the E-rate program in 1996 • TheFCC sets rules and policies through orders • USAC and the Schools and Libraries Division develop procedures for specific actions, such as how to process applications • E-rate Rules • Overview

6. Commitments for E-rate are made by the funding year (FY), which runs from July 1 through the following June 30 • USAC refers to the funding year as the year in which most services will begin, e.g., FY2014 is July 1, 2014 to June 30, 2015 • Funding Year • Overview

7. The FCC has set the E-rate fund at $2.25 billion for each funding year. However, beginning in FY 2010, the cap is now adjusted for inflation each year • Once each year, FCC can roll over unused funds from previous funding years into the current funding year • Budget • Overview

8. Who is eligible for E-rate funding? • Schools and school districts • Non-traditional facilities (conditionally by state) • Libraries and library systems • Consortia– groups of eligible entities that band together to aggregate demand and negotiate lower prices • Eligibility • Overview

9. Discounts are 20-90 percent of eligible costs • Discount level for a school or library depends on: • Percentage of students who are eligible for National School Lunch Program (NSLP) in • (for a school) the school • (for a library) the school district in which the library is located • Urban or rural location of the school or library • Discounts • Overview

10. Discount Matrix • Discount Matrix • Overview

11. Priority 1 (P1): funded first • Telecommunications Services • Internet Access • Telecommunications (leased dark fiber) • Priority 2 (P2): funding starts with neediest applicants • Internal Connections • Basic Maintenance of Internal Connections • Categories of Service • Overview

12. Category of ServicePriority One (P1)Funded First Phone Internet

13. Category of ServicePriority Two (P2)funded beginning with neediest applicants X X X

14. Process • Overview

15. The e-Rate Program Timelines

16. Timelines • Overview

17. e-Rate Changes

18. Estimate of Demand: FY 2013

19. Estimate of Demand: FY 2014

20. Within five years, connect 99 percent of America’s students to high speed wireless within their schools and libraries • at speeds no less than 100 Mbps • with a target of 1 Gbps. • Obama’s ConnectED Initiative • Changes

21. Increase broadband connectivity • Improve the cost-effectiveness of e-Rate funds • Streamline the Program • Goals • Changes

22. Decrease/end support for analog voice • Devise new methods of funding Internal Connections • Per student? • Tech Planning? • Increase broadband connectivity • Changes

23. Consortia • Diocese? • ICN: sorta… • MiCTA • Cost-effectiveness of e-RateFunds • Changes

24. Eliminate the 470??? • Streamlining the Program • Changes

25. e-Rate Zeller and Associates, LLC

26. We prepare the documents and file the forms • You inform us of changes and additions in advance • You provide us with the information we need • You make the decisions • You keep the records • Full Service • Zeller and Associates, LLC

27. Group Filing Sessions • 470 in October • 471 in January • Guidance Documents • 486 • 472 (BEAR) • Available for questions • By “Form” Service • Zeller and Associates, LLC

28. Phone: (888) 203-8100 Fax: (888) 276-8736 Website:www.usac.org/sl • With questions, please contact USAC! • Contacts

29. Zeller and Associates, LLC • Gerry Zeller • V: 847.828.4606 • F: 847.729.5240 • E: gzeller@zellerandassociates.com • Zeller and Associates, LLC • Or

30. Questions?

31. Thank you!