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Gary RawsonMS Dept. of Information Technology
Services (ITS)
Connect MS
2015 Gulf Coast Conference
E-rateWhat is E-rate?
• It is a Federal Program administered by the FCC (Federal Communications Commission)
• Purpose is to provide discounts on advanced telecom services to K-12 schools and libraries
• Annual budget of $3.9 Billion • Not a grant program• Discounts on Broadband services– Internet Access, WAN connections, Wi-Fi (internal
Broadband)– Currently phasing out voice services
Where does the Funding come from?
10. Federal Universal Service Charge 3.42
Where does the funding go?• Universal Service Administration Company (USAC)
– USAC is a non-profit organization established by the FCC• USAC administers 4 programs that make up USF
– E-rate: broadband to schools and libraries• $3.9 billion annual cap
– Rural Health: broadband to Rural Health Care Providers• $400 million annual cap• Dr. Kristi Henderson’s program
– Lifeline: phones for low income, migrating toward broadband for low income• No Cap, but approved disbursements of $1.6 billion in 2014
– Connect America Fund: migrating from traditional voice networks to broadband networks• $4.5 billion annual cap
Mississippi and USF:http://www.universalservice.org/_res/documents/about/pdf/annual-reports/usac-
annual-report-2014.pdf
• $189,673,000 - CAF• $15,087,000 - Lifeline• $3,371,000 - Rural Health• $29,993,000 - E-rate• $238,124,000 - Total USF for 2014
Mississippi and E-rate
• 18th year of the program• 97% of public schools have fiber connectivity• $585,977,631 e-rate funds and counting• Average 85% discount• $103,407,817 State match • $689,385,448 pre-discount and counting• For FY2015– $62,015,654 e-rate funding request– $75,208,033 pre-discount services
Do you have Broadband at your Home or Business?
• Where is your nearest school?• All but 22 schools in Mississippi have fiber• Visit your school• Find out who the service provider is• Call the service provider and ask if you can
access that fiber/broadband• If you are told “no” then ask yourself why are
you being asked to fund something you cannot use
Typical E-rate Project
Typical E-rate Project
Typical E-rate Project
Right Way
Wrong Way
So, where is the weakness in what USF is doing?
Service Provider Cloud
Service Provider Cloud
E-rate
E-rate
Rural Health
Lifeline
CAF Lifeline
Your Community
After 18 years of E-rate
• $40 billion in e-rate funding (and counting)• We still have schools and libraries without
access to affordable broadband• Are all rates the same for 1 gig Internet (MIS)– MS SMC = $4,054– Another state = $34,740
• Another example, 1 gig WAN circuit– MS SMC = $750– Neighboring state = $5,000
Wrong WaySelf Provisioned Networks
Mississippi and USF:http://www.universalservice.org/_res/documents/about/pdf/annual-reports/usac-
annual-report-2014.pdf
• $189,673,000 - CAF• $15,087,000 - Lifeline• $3,371,000 - Rural Health• $29,993,000 - E-rate• $238,124,000 - Total USF for 2014
Who is coordinating these broadband projects and expenditures?
