Enjoy the Uptime.

SDN offers Internet, connectivity, IP phone systems, networking equipment, and managed services over its 30,000

miles of fiber optics. The network touches 300+ South Dakota communities, plus connects to other regional and

national networks.

Carrie JohnsonManager of Government and External Relations

SDN Communications

E-Rate Reform: What the Recent E-Rate Changes

Mean for Your District

What role does SDN play?

• Major vendor to the Digital Dakota Network

• Internet

• Network services (physical Ethernet

connections – WAN connectivity)

• Network surveillance (NSC) and reporting

• Demos, consultation, and wireless surveys

• Additional services for school districts:

• Wireless access

• Network audits

• Servers and data storage

• Phone systems

• Provide Internet directly for private schools

E-Rate Reform

Redefining the Rural Classroom

E-Rate Reform

Arlington, SD

Population: 915

E-Rate Reform

Video:

https://www.youtube.com/watch?v=

N4drkZVd9ig

E-Rate Reform

• Bandwidth Demands in Schools

• Assessments

• e-Textbooks

• One-to-One Programs

• Customized Learning

• Bandwidth Demands in Libraries

• Job Search & Job Applications

• Access to Information –

government, health care, informed

purchasing decisions

• Education, Research, & Distance

Learning

E-Rate Reform

E-Rate Reform: Why Now?

• Created by the Telecom Act of 1996

• Serves 97% of schools

• 20-90% subsidies for eligible schools & libraries

• Funding cycle: July 1 through June 30

• Form 470 – Service request posted on USAC website

Open and fair competitive bidding process required

• Form 471 – Must wait at least 28 days, evaluate bids, chose service

provider, sign contract, and then submit Form 471

• Form 486 (Receipt of Services Confirmation), Form 472 (Billed Entity

Applicant Reimbursement), Form 474 (Provider Invoice)

• 1996 – 14% of classrooms had Internet (74% dial-up)

• 2015 - Nearly all schools and libraries connected

The challenge today is capacity, not connectivity.

E-Rate Reform

E-Rate Reform

http://usac.org/_res/documents/sl/pdf/handouts/application-process-flow-chart.pdf

FCC Survey, 2010:

• 80% - Connection does not meet needs

• 50% reported speeds slower than

average home – despite 200x the users

• 56% - digital textbooks use will grow in

2-3 years

• 46% - handheld devices for educational

purposes will increase

• 39% - Cost of service is the largest

barrier

E-Rate Reform

ALA Survey, 2011-2012:

• 25% - Speeds of 1.5 Mbps or less

• Rural divide: 57% of urban libraries have 10 Mbps

or greater, compared to only 17% of rural libraries

• 40% - Speed fails to meet needs

From Blackboards to Smartboards

E-Rate Reform

“During my tenure as chairman of the FCC, there may be no bigger

and more significant issue than making sure our schools and

libraries are connected to high-speed broadband networks. That is

why E-rate modernization is at the top of my agenda and why I

support President Obama’s goal of connecting 99 percent of all

students to high-speed broadband capacity in five years—or faster.”

- FCC Chairman Tom Wheeler, 02/05/14

E-Rate Reform

June 2013

“ConnectED”

July 2013

NPRM

January 2014

SOTU

July 2014

Reform Order and FNPRM

December 2014

Funding Increase & 2nd

Reform Order

Reform Timeline

Key Priorities

• Refocus the program on broadband

• Simplify E-Rate application process

• Close “Wi-Fi Gap” to support digital learning

• Speed goals for external connections:

• 100 Mbps per 1,000 students by 2015

• 1000 Mbps (1 Gbps) per 1,000 students by 2018

• 10 Gbps scalable WAN connectivity across district

• 100 Mbsp for libraries serving under 50,000 and

1 Gbps for larger populations

July 2014: E-Rate Modernization Order

• $1 billion for Wi-Fi upgrades in FY15 & FY16

• Ending or phasing out legacy services

• Streamline application process

• Electronic submission required by FY 2017

• Discounts based upon LEA averages

• Direct reimbursement option (starting FY 2016)

• Exempt low-cost, business-class Internet of

$3,600 or less from competitive bidding process

• Remove technology plan requirement

• Encourage consortia and bulk purchasing

• Lowest Cost Price Requirement

• Greater pricing transparency

• FCC will track circuit speed and bandwidth cost

• Double document retention period (now 10 years)

E-Rate Reform

• Category 1: Enable Broadband connectivity to the school/library

• Ineligible: webhosting, paging, email, text messaging, voicemail. Data

plans & air cards for mobile devices are basically ineligible.

• Phase-out Schedule: 20% will be deducted from eligible discount each

year, starting in FY 2015.

• Category 2: Enable Broadband connectivity within the

school/library

• Basic: cabling, routers, switches, wireless access points

• At least through FY2019:

• Maintenance of basic LAN equipment

• Managed Wi-Fi

• Caching servers

• Newly ineligible: All other servers and telephone systems

E-Rate Reform

E-Rate Reform

The max C2 discount is 85% to encourage most cost-effective option.

E-Rate Reform

A New Budget Hole to Fill

E-Rate Reform

Education Week

E-Rate Reform

December 2014: Second E-Rate Modernization Order

• Increase the spending cap by $1.5 billion (from $2.4B to $3.9B)

• Extend through 2019 the annual $1 billion for Wi-Fi

• Federal match to incentivize state support of C1 (starting FY16)

• Changed the definition of “urban” from 2,500 to 25,000

• High-cost recipients – obligation to serve at reasonably

comparable rates to urban areas

• Equalize treatment of dark fiber if most cost effective (starting FY16)

• Allow applicants to pay their non-discounted share in installments

over four years

• Permit up-front E-Rate support for large projects

E-Rate Reform

educationsuperhighway.org

E-Rate Reform

SD’s schools

are ranked #3

in connectivity.

educationsuperhighway.org

E-Rate Reform

SD’s schools are

ranked 47th for

accessing their E-Rate

budgets for Wi-Fi.

educationsuperhighway.org

Unlocking Support for Wi-Fi

• Great time to focus on internal

connections

• Respond to the changing trends

• Do away with Priority 1 & 2

• Funds for Wi-Fi would dry up

• Replaced with Category 1 & 2

• Increased pot of money for

Category 2 and capped the per-

pupil request to meet demand

($150 pre-discount, minimum of $9,200

for schools with 62 students or fewer)

E-Rate Reform

E-Rate Reform

Questions?

Connect with SDN

Carrie.Johnson@sdncommuncations.com

www.sdncommunications.com