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Funding the ASU Network

Funding the ASU Network. 12/2/2009. The ASU Network: How does ASU pay for this vital infrastructure?. Where did we come from? How was the network funded in the past? Where are we now? What’s changed? Where do we want to get to?. What’s changed?. Qwest partnership

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Funding the ASU Network

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  1. Funding the ASU Network 12/2/2009

  2. The ASU Network: How does ASU pay for this vital infrastructure? • Where did we come from? How was the network funded in the past? • Where are we now? What’s changed? • Where do we want to get to?

  3. What’s changed? • Qwest partnership • Cost reduction by eliminating unnecessary work, unnecessary costs • Elimination of pass-throughs, e.g. capital projects, cell phones • Elimination of billing

  4. FY09 Network Funding

  5. FY09 Subsidies

  6. FY09 Unit Charges

  7. FY09 Unit Charges by Fund Group

  8. FY09 Non-recurring Charges Data Communications 3,968,793 Non-recurring Voice 653,103 Total Non-recurring 4,621,896 Less: Plant Fund Projects (2,940,756) Unit Non-recurring 1,681,139

  9. FY09 Funding Summary • The network is heavily subsidized. Charges to units only fund 64% of the network. • The majority, 54%, of the unit charges were for recurring voice, $5.8M. • Units paid non-recurring charges of about $1.7M for voice & data adds/moves/changes and other non-recurring charges.

  10. Where are we now? • In transition, • Wrapping up projects started in FY09 • Support for billing system ended 3 months after the start of the Qwest partnership • Still need to pay for the network in FY10

  11. UTO FY10 Network Funding Proposal • One-time annualize billing for recurring voice charges based on FY10 1st quarter charges • Seek relief for decreased sources associated with non-recurring charges, either by increased University subsidy or rate based charge to units sufficient to pay for the network

  12. FY10 Annualized Phone Bill • Advantage transactions were created from the billing system for July, August, and September • Process the transactions for recurring monthly phone charges in December for the entire fiscal year where the amount is calculated: July + August + 10(September) • Anticipated charges: $5.6M

  13. FY10 Funding Gap

  14. FY10 Funding Summary • Need to pay for the network • An annualized phone bill helps but leaves a funding gap of $1.4M that would have been filled by unit non-recurring charges in the past ($1.7M). • Awaiting decision

  15. Where do we want to get to in FY11? • Replace billing with a personal services rate based charge (like Risk Management Insurance) • Recover at least the amount units paid in the past (although this still leaves a heavily subsidized network and does not address other subsidized services like storage, server housing, software)

  16. Why a Pers Svc based rate? • Ease of implementation • Ease of anticipating expense for units • Self adjusting for after the fact changes • All the other options (connection count, FTE, ASURite IDs) involve more work, more cost to implement and maintain. The goal of the rate is to eliminate costs, not increase them.

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