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Introduction to E-rate 2.0 October 15, 2014. Moderator: Noelle Ellerson Associate Executive Director, Policy & Advocacy Presenter: Aleck Johnson Vice.

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Presentation on theme: "Introduction to E-rate 2.0 October 15, 2014. Moderator: Noelle Ellerson Associate Executive Director, Policy & Advocacy Presenter: Aleck Johnson Vice."— Presentation transcript:

1 Introduction to E-rate 2.0 October 15, 2014

2 Moderator: Noelle Ellerson Associate Executive Director, Policy & Advocacy Presenter: Aleck Johnson Vice President EdTech Strategies, LLC Sponsored by:

3 Logistics: Remember to phone in to access the audio for today’s webinar.

4 Webinar Participation: We have allotted time for Q&A, but you can submit questions at any time. Please use the chat window to submit questions. Download the presentation at

5 Introduction o E-rate 2.0 efforts date to ConnectED initiative (June 2013) o First significant overhaul of E-rate since 1997 o Order establishing E-rate 2.0 released by FCC on July 14, 2014 following a lengthy comment process Schools, libraries, vendors, consultants all participated AASA and other groups commented extensively o Labeled as “modernization”

6 Introduction o E-rate 2.0 meets several different demands Reorient program to focus on broadband Free up funds to support intra-building connectivity -Goal of $1B/year Alleviate the demand on the program -Demand has been more than double the available funding -No P2 funded in FY2013 and FY2014 -No increase in funding (yet) as part of E-rate 2.0

7 E-rate 2.0 Summary o Significant and far reaching changes to a number of aspects of the program Relabeling Priorities to Categories Changes to Priority 1/Category 1 services Changes to Priority 2/Category 2 services Introduction of budgets and funding caps for Category 2 Updated application forms and technology back end (ongoing)

8 E-rate 2.0 Summary o Significant and far reaching changes to a number of aspects of the program Changes in discount calculations Expedited processing of applications Promoting multiyear contracts Promoting master contracts (upcoming)

9 E-rate 2.0 Summary o Minor changes Elimination of technology plan requirements Document retention requirements extended Direct invoicing (starting in FY2016) Encouraging lower pricing from vendors ­Item 21s made public ­Lowest Corresponding Price enforcement Low dollar connection streamlining

10 E-rate 2.0 Summary o Minor changes (cont’d) Signed contract requirements relaxed Easier deadline extensions Plain language review Library-school broadband connections (upcoming) Tribal outreach (ongoing)

11 Major Changes: Category/Priority 1 o Priority 1 renamed Category 1 o Refocused on broadband o Discounts reduced by 20%/year on voice services (until discounts reach 0%) Local phone Long distance phone Cellular phone

12 Major Changes: Category/Priority 1 o Numerous services eliminated from eligibility Website Hosting Hosting Cellular Data* Paging Service Custom Calling Features (incl. DID) Voic Service

13 Major Changes: Priority 2/Category 2 o Priority 2 renamed Category 2 o Category 2 refocused on providing broadband access to classrooms (particularly wireless) o Goal of $1B in funding for FY2015 and FY2016

14 Major Changes: Priority 2/Category 2 o New “managed internal broadband services” and caching added as eligible services o Several previously eligible services eliminated PBXs PVBXs Video Components Servers*

15 Major Changes: Priority 2/Category 2 o Applicants participating in FY2015 and FY2016 subject to a new per student pre- discount funding cap of $150/student over five years Minimum of $9,200 per school/library Cap is pre-discount – can spend more, but won’t get E-rate funding beyond cap

16 Major Changes: Priority 2/Category 2 o Per student budgets go away after FY2016 absent FCC action (unless funding committed in FY2015/FY2016) o No guarantees of funding (esp. after FY2016) o Basic maintenance, managed internal broadband services, and caching become ineligible after FY2016 unless the FCC acts to continue their eligibility

17 Major Changes: Discount Calculations o From FY2015 onward, discount calculations are based on a district-wide calculation (rather than a school-by-school calculation) o Urban/rural status now determined by whether majority of entities are rural as defined by new forthcoming tool Preliminary analysis indicates most rural entities take a discount hit due to new urban/rural tool o Consortia use simple average of members’ discount rates

18 Major Changes: Discount Calculations o Community Eligibility Provision (CEP) officially acceptable Can use multiplier (currently 1.6) Max school eligibility is 100% Can use multiple methods within a district but not within a school o Surveys still acceptable, but no projected eligibility Can use NSLP forms as surveys now

19 Major Changes: Discount Calculations o Discount rates for C2 reduced at the high end Highest poverty discount rate is now 85% -- other rates unchanged for C2 o Discount rates for services being phased out (voice) reduced at 20%/year FY2015 – 20% reduction FY2016 – 40% reduction FY2017 – 60% reduction FY2018 – 80% reduction FY2019 – phased out entirely o Up to 3 discount rates for one applicant!

20 Major Changes: Faster Application Processing o FCC has set a (nonbinding) goal of processing all “workable” applications by Sept. 1 of the funding year o “Workable” appears to mean timely filed, complete, no additional information from applicant, and no investigation o FCC and USAC working to figure out how to process consortium apps more quickly o Additional unspecified improvements in the works

21 Major Changes: Multiyear Contracts o Multiyear contracts will, after first year, only need to be reviewed if something changes Recipients of service, cost, services delivered Applicant will need to file 471 and confirm the continuation of the contract annually Only applies to contracts of five years or less NOT a multiyear commitment – still need to file and be approved annually

22 Major Changes: Preferred Master Contracts o Preferred Master Contracts for C2 services will be designated by FCC o Will avoid the 470 process o Will need to be considered as responses to 470s when applicable o Will NOT be in place for FY2015

23 Major Changes: Technology Plans o Technology Plan requirement eliminated Starting in FY2015 no tech plans will be required for E-rate May still be state/local requirements for tech plans

24 Minor Changes o Document retention changed to 10 years This trumps local retention policies Electronic retention officially approved Best practice: apply to 2014 onward o “Encouraging” lower prices from vendors Item 21s made public Lowest Corresponding Price (LCP) enforcement

25 Minor Changes o Low dollar connection application streamlining 100 Mbps down and 10 Mbps up for $300/mo. or less Can skip Form 470 (though local restrictions may apply) o Relaxing signed contract requirement Must still have legally binding agreement before filing 471

26 Minor Changes o Plain language review of E-rate applications and process o Library-School broadband connections Should apply for waiver ASAP if needed for FY2015 o Tribal outreach from USAC

27 E-rate 2.0 Summary o Major changes will likely affect application processes and discounts/reimbursements for most applicants o Dollar amounts likely to drop if applicants were receiving discounts on eliminated services (web hosting, , cellular data) or services being phased out (voice) o C2 funding for intra-building broadband may offset those decreases o New processes (and increased work) likely to mean applications more difficult for FY2015

28 Future Presentations o 10/22/14 – Understanding the New Category 1 Services o 10/29/14 – Understanding the New Category 2 Services Send questions to

29 Blackboard & E-Rate Our Mission: Reimagining Education through Technology Leading provider of K-12 web hosting Partner of nearly 1 out of 3 districts in the U.S. Solutions for all of your education technology needs: – Teaching & Learning – Parent & Community Engagement Find Out How Blackboard Can Help: bbbb.blackboard.com/announcingbbrate

30 Aleck Johnson EdTech Strategies, LLC Questions? Send them to


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