E-Rate Modernization & Montana’s Libraries

1. E-Rate Modernization & Montana’s Libraries Montana Telecommunications Association Annual Meeting Jennie Stapp, State Librarian August 6, 2014

2. State Library’s Mission The Montana State Library is committed to strengthening libraries and information services for all Montanans through leadership, advocacy, and service. Montana State Digital Library Division Library Information Services Statewide Library Resources Library Development Statewide Projects Talking Book Library

3. State Library services require robust broadband

4. Libraries in Montana

5. Montana Libraries and E-rate In FY 2013 61 or 71% of Montana public libraries submitted E-rate applications and received $84.7K in funding commitments. 10% of the requests came from libraries serving populations of 25,000 or more 30% came from libraries serving populations of less than 2,000. None of the individual requests was over $5,000 5% were over $2,500 79% of the funding requests were under $1,000 In FY 2014 54 Montana public libraries submitted E-rate applications and requested $98K in funding commitments; to date not all have been funded

6. A new national broadband standard for libraries? E-Rate Modernization Goal 1. Ensuring schools and libraries have affordable access to sufficient high-speed broadband: 37. With respect to libraries, we initially adopt as a bandwidth target the American Library Association’s recommendation that all libraries that serve fewer than 50,000 people have broadband speeds of at least 100 Mbps and all libraries that serve 50,000 people or more have broadband speeds of at least 1 Gbps.

7. How do Montana libraries stack up?

8. E-Rate Modernization Order and Montana libraries Beginning in FY 2015, E-rate funding will no longer be available for services like telephone, voice over IP, and voicemail. Discounts for phone services will be phased out by 20%/year beginning in FY 2015. This program change will be evaluated after FY16. The phase out of POTS funding will hit Montana libraries hard We estimate that approximately $54K was requested for POTS

9. E-Rate Modernization Order and Montana libraries The FCC has identified $1B in FY 2015 and FY 2016 from savings from reduced eligible services (POTS and others) and reserve funds to support Category 2 applications for WiFi connectivity and enhancement (capped at $2.30/sq foot for libraries) The $2.4B annual program allocation will still fund Category 1 applications Historically, very few Priority 2 applications have been funded because available funds are only adequate to cover most of the Priority 1 applications Only two Montana libraries report not providing WiFi Montana libraries almost never apply for Priority 2 (now Category 2) funding

10. E-Rate Modernization Order and Montana libraries In comments submitted to the FCC in response to the initial NPRM, the Montana State Library suggested that the FCC create a separate, additional amount of funding in the E-rate program specifically directed to supporting the capital investment costs of deploying high-capacity broadband to libraries in areas like Montana where it is not currently available. The Modernization Order addresses broadband capacity to the building in the Further Notice of Proposed Rule Making.

11. E-Rate Modernization Order and Montana libraries E-Rate Modernization Goal 2. Maximizing the cost-effectiveness of E-rate spending, focusing on broadband and related services. The FCC will work with USAC to prioritize review of consortium applications. Currently no Montana libraries apply for E-rate as a consortium. How can we encourage consortiums in Montana?

12. E-Rate Modernization Order and Montana libraries E-Rate Modernization Goal 3. Making the E-rate application and follow-up processes fast, simple and efficient. The need for technology plans for Category 2 services has been eliminated. The changes allow for a more stream-lined application process. There will be no need to receive competitive bids if a library purchases commercially available, business-class internet service from a provider that offers bandwidth speeds of at least 100 Mbps downstream and 10 Mbps upstream for a pre-discount price of $3,600 or less annually? It is not clear to us how this change applies to libraries that cannot afford or do not have access to service speeds of 100 Mbps.

13. E-Rate Modernization Order and Montana libraries E-Rate Modernization Goal 3. Making the E-rate application and follow-up processes fast, simple and efficient. Beginning with funding year 2015, schools and libraries located in rural areas, as defined by the most recent decennial Census, will be considered rural for the purposes of the E-rate program. This change should benefit some libraries in Montana like Belt and Seeley Lake which, under old rules were classified as urban.

14. E-Rate Modernization Order and Montana libraries The Further Notice of Proposed Rulemaking asks for public input to build the record on five specific issues: 1. Meeting future funding needs 2. Ensuring that multi-year contracts are efficient 3. Standardizing the collection of National School Lunch Program data 4. Encouraging consortia participation 5. Ensuring support for libraries is sufficient Specifically, the Commission asks for data that shows the gap between current connectivity levels in libraries and schools and the capacity goals adopted in the Order.