E-Rate 101: Basics of the Program

Fall 2010

Contact Information

• Pam Jacobs

• 515-975-0071

• pam.jacobs@iowa.gov

A copy of this PowerPoint presentation

is available at:

http://www.iptv.org/iowa_database/erate/

What is E-rate?

• Discount Program for Schools and Libraries• 20-90% discounts on telecommunications

services, Internet access, internal connections and maintenance for internal connections

• Annual $2.25 billion program nationwide• NOT a competitive grant program

Who is Eligible to Participate?

• Libraries

• Schools

Library Eligibility

• Non-profit, public libraries

• Eligible for LSTA (Library Services and Technology Act)

• Can be:– single library– consortia– library system

School Eligibility

• All public schools:– school districts– AEAs

• “Other school programs” as determined by Iowa Department of Education (see DE Directory)

• Non-profit, private K-12 schools with endowment of $50M or less

• Must meet federal definition of elementary or secondary school

What is My Discount?

Two Criteria Make Up Discount:

• Poverty• Location

Poverty

• Based on National School Lunch Program Eligibility

• Direct Certification Data is permitted (not just the number of students participating in NSLP)

• As a school/district, you are allowed to use October 1 data or “most current figure available”

• Libraries use discount from school district in which they are located.

• Urban/Rural defined by counties

Location

Iowa Counties which are Urban:

• Black Hawk• Dallas• Dubuque• Johnson• Linn• Polk• Pottawattamie• Scott• Warren• Woodbury

Discount Matrix

Percent of Eligible Students

Urban Rural

Less than 1% 20% 25%

1% - 19% 40% 50%

20% - 34% 50% 60%

35% - 49% 60% 70%

50% -74% 80% 80%

75% -100% 90% 90%

What is Funded Through E-rate?

• Five categories of service– Priority 1 (funded first)

• Telecommunications Services• Telecommunications NEW!• Internet Access

– Priority 2 (starts with neediest applicants)• Internal Connections• Basic Maintenance of Internal Connections

Must be provided by a telecommunications carrier

Examples:– Local & long distance– Cell phone service – Digital transmission services (e.g. Ethernet,

frame relay, T-1, etc.)

Including all taxesand surcharges!

Eligible Services: Telecommunications Services (Priority 1)

Eligible Telecommunications Services (Priority 1), cont.

• VoicemailVoicemail

• Wireless transmission service for 2-way Wireless transmission service for 2-way communications (e.g. wireless connection communications (e.g. wireless connection from your high school to the elementary)from your high school to the elementary)

• CentrexCentrex

• Blackberry-type serviceBlackberry-type service

Eligible Services: Telecommunications (Priority 1):

NEW CATEGORY

Leased fiber or dark fiber (i.e. fiber is “lit” by the provider or is “lit” by the applicant)

Apply for this on form 470 under 2 categories: telecommunications services and Internet

• Internet Access Services

• Web hosting service

• Blackberry-type service

Eligible Services: Internet Access (Priority 1)

– Wiring– Routers– Switches– Hubs– Network servers– System operating

software– Wireless LANs– Private branch

exchange (PBX)

Eligible Services:Internal Connections (Priority 2)

Eligible Services: Maintenance of Internal Connections

(Priority 2)

• Maintenance of previously purchased internal connections (does NOT include end-user equipment such as computers)

• Rules are changing about SMARTnet-type billing (must bill for actual hours not a service contract amount)

Where can we see the eligible services list?

Answer: Eligible services list is at http://www.usac.org/_res/documents/sl/pdf/ESL_archive/EligibleServicesList_110910.pdf

Discounts Come in 2 Forms:

– Discounts on bills OR– Reimbursements

from service provider (service provider gets reimbursed by USAC)

How Discounts Work

$100 (existing) bills you would pay You apply to for discounts

You get 55% in discounts

You now only owe $45

The vendor’s bill drops by $55

Vendor gets $55

from SLD!

Vendor invoices USAC/USAC approves

invoice

How Discounts Work

How Reimbursements Work

10/9/2007 CDE/VET/E-rate/CTF 2000-2001 (BEGINNER)

$100 (existing) bills you would pay You apply to for discounts

You get 55% in discounts

You apply for reimbursement

You pay 100% of bill

Vendor sends

you $55!

USAC approves paperwork/sends check to

vendor

How Reimbursements Work

General Rules of E-Rate

• Competitive bid on SLD web site for 28 days

• Price must be the single most important factor

• Application in ‘window’ to SLD each year• SLD funds on rules of priority

– Priority 1: Telecom services, Telecom, and Internet Access

– Priority 2: Internal Connections and Maintenance

“2 in 5 Rule”

• Applies only to internal connections (priority 2)

• An applicant can only get internal connections funding in 2 out of 5 years

• Questions about this? Give me a call.

What About the Tech Plan?

• Tech plans are only needed if filing for priority 2 services. THIS IS NEW! (previously everyone had to do tech plans).

• If your district/school/library has a free/reduced lunch eligibility of 40% or more, then I recommend doing a tech plan (possibility of getting priority 2 funded)

Tip 1: Get Organized by Funding Year

Create a notebook and/or electronic file– Form 470– Form 471– Form 486– BEAR (if used)

Tip 2: Get Frequent Updates

• Listserv:– AEAUSF@iptv.org– USAC offers frequent

updates

Tip 3: Get Support!

• Have a backup person in your school/district/library

• Build support with your business office, supt./director and tech person

• Contact your AEA or library e-rate expert

Who are the E-rate Players?

• Congress• FCC (Federal Communications

Commission)• USAC (Universal Services

Administrative Company)• SLD (Schools and Libraries

Division)

Now You Know the Rules….Let’s Walk Through the

Application Process

Application Process at a Glance:

1. Form 470: Old form available now…new form after first of next year.

2. Wait 28 days! Must wait that long!

3. Form 471: “window” will likely open in January likely close in March (dates not yet set)

4. Wait for questions from PIA

5. Funding commitment decision letter

6. Form 486: file to confirm services

7. If getting reimbursements, form 472 (BEAR)

Form 471

Form 471: “window” will likely open in January and close in March

Next Steps

Wait for questions from PIA, e.g. Questions about your funding request Verification of your discount

Funding commitment decision letter File form 486

Reimbursements?

• Form 472(BEAR form)

• Available in online format if you have a PIN

• Service provider must OK this form (they have access to the online BEAR form with their own PIN)

Upcoming Sessions

December: What’s new for E-rate in 2011?

January: Filing form 470

January: Filing form 471

Watch listserv for details!

Resources to Remember

• SLD web site: www.universalservice.org/sl/• E-rate Central: www.e-ratecentral.com• Iowa E-rate:

www.iptv.org/iowa_database/erate

• SLD Client Service Bureau: 888-203-8100• pam.jacobs@iowa.gov: 515-975-0071