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The State of E-rate Today

The State of E-rate Today. Increasing Pressure on the Fund. Annual Funding Available: $2.25B Cap + Inflation (+ Approved Rollover Funds) FY 2013 Funding: $2.25B + $130M = $2.38B (+ $450M) = $2.83B FY 2013 Demand: $4.986B $2.7B for P1 - First year rollover funds needed for P1

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The State of E-rate Today

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  1. The State of E-rate Today

  2. Increasing Pressure on the Fund • Annual Funding Available:$2.25B Cap + Inflation (+ Approved Rollover Funds) • FY 2013 Funding:$2.25B + $130M = $2.38B (+ $450M) = $2.83B • FY 2013 Demand: $4.986B • $2.7B for P1 - First year rollover funds needed for P1 • $2.286B for P2 - If all P1 requests funded, only $130M left for P2

  3. Funding Years 2010-2012

  4. Funding Years 2010-2012

  5. Funding Years 2010-2012

  6. Increasing Capacity Pressure on Schools • Standardized Online Testing (e.g., Common Core/PAARC) • Digital Curriculum/eBooks • BYOD/BYOT • Increasing use of Apps/Video Streaming/Cloud • Flipped Classroom • Individualized, Interactive, Collaborative • Distance Learning/Virtual Schools

  7. Increasing Capacity Pressure on Schools • 2010 FCC Schools and Libraries Survey: • 50% reported slower connection speeds than average home • 39% report cost as greatest barrier to full broadband capacity • 2012 American Library Association Survey: • 25% of libraries have broadband speeds of 1.5Mbps or less • 9% have speeds of 100 Mbps or more

  8. E-RATE REFORM

  9. National Broadband Plan March 2010 FCC releases 376 page order that set broadband goals for education, government, consumers, homeland security, health care, and energy • Twelve E-Rate recommendations, most of which are contained in recently released E-Rate 2.0 NPRM

  10. SETDA May 2012 SETDA Report: “The Broadband Imperative: Recommendations to Address K-12 Education Infrastructure Needs” • Capacity Goals: • 2014-2015 • ISP Circuit: At least 100 Mbps per 1000 students • WAN: At least 1 Gbps per 1000 students • 2017-2018 • ISP Circuit: At least 1 Gbps per 1000 students • WAN: At least 10 Gbps per 1000 students

  11. E-Rate 2.0 April 11, 2013 FCC Commissioner Jessica Rosenworcel: “Reboot, reinvigorate, and recharge E-Rate.” • 2011 FCC Study: 80% of schools & libraries do not believe their broadband needs are being met • Four steps to reform E-Rate: • Increase E-Rate funding to handle increased demand • By FY2015, every school should have access to 100Mbps per 1000 students; by FY2020, 1 Gbps per school • Encourage & institute new & creative public-private partnerships • Simplify E-Rate application process

  12. ConnectED June 6, 2013 Obama Administration unveils ConnectED Initiative • Upgraded Connectivity – Within 5 years: • 99% of students connected at speeds no less than 100Mbps with target of 1 Gbps • High speed wireless within schools and libraries • Increase E-Rate $$$ • Trained Teachers • Digital education tools • Use existing ESEA $$$ • Build on Private Sector Innovation • Educational Devices • Global learning opportunities • Educational software

  13. Obama Administration June 14, 2013 • Presidential Memorandum: “Expanding America’s Leadership in Wireless Innovation” • NIST & NTIA Announcement: Will establish new Center for Advanced Communications in Boulder, CO

  14. LEAD Commission • Leading Education by Advancing Digital (LEAD) Commission • June 13, 2013: Five-Point Blueprint • Solve infrastructure challenge by updating wiring of schools • Build a national effort to deploy devices • Accelerate adoption of digital curriculum • Embrace & encourage model schools • Invest in human capital • June 18, 2013: Supports FCC Chairman nominee Wheeler’s call to bolster E-rate, digital learning

  15. U.S. Senate Commerce Committee • July 17, 2013 • E-rate 2.0 Hearing • Witnesses representing: • Calcasieu Parish School System • Maine State Library • LEAD Commission • Cisco

  16. FCC E-Rate 2.0 NPRM • FCC Notice of Proposed Rulemaking (NPRM) • Released July 23, 2013 • 175 pages • 616 questions and 357 ideas on which comments are requested • Document divided into six categories: • Introduction • Goals and Measures • Ensuring schools and libraries have affordable access to 21st Century broadband that supports digital learning • Maximizing the cost-effectiveness of E-Rate funds • Streamlining administration of the program • Other outstanding issues

  17. E-Rate 2.0 NPRM • Three Goals for Modernizing E-Rate Program: • Increased Broadband Capacity • Simplify rules on fiber deployment to lower barriers to new construction • Prioritize funding for new fiber deployments that will drive higher speeds and long-term efficiency • Phase out support for services like paging and DA • Ensure that schools and libraries can access funding for modern high-speed WI-FI networks in classrooms and library buildings • Allocate funding on a simplified, per-student basis

  18. E-Rate 2.0 NPRM • Three Goals for Modernizing E-Rate Program: • Cost-Effective Purchasing • Increase consortium purchasing to drive down prices • Create other bulk buying opportunities • Increase transparency on how E-Rate dollars are spent • Improve competitive bidding process • Create pilot program to incentivize and test more cost-effective purchasing practices

  19. E-Rate 2.0 NPRM • Three Goals for Modernizing E-Rate Program: • Streamlined Program Administration • Speed review of E-Rate applications • Provide streamlined electronic filing system & require electronic filing of all documents • Increase transparency of USAC’s processes • Simplify Eligible Services List & adopt more efficient ways to disburse E-Rate funds • Streamline E-Rate appeals process

  20. E-Rate 2.0 NPRM • Other Broad Issues Addressed by NPRM: • Applicability of CIPA to devices brought into schools and libraries, & to devices provided by schools and libraries for at-home use • Adjusting to changes to NSLP that affect E-Rate • Additional measures for protecting program from waste, fraud, and abuse • Wireless community hotspots • Comment Dates: • Initial Comments due September 16, 2013 • Reply Comments due October 16, 2013

  21. NPRM Detail • Go to FAEDS presentation

  22. Questions?

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