K-20 Education Network Update for the NWESD Districts May 9, 2013

1 Overview  K-20 Governance Changes/Audit  Network Architecture Upgrade  K-20 Connectivity Costs

K-20 Governance

3 Office of the Chief Information Officer (OCIO) General operational and technical oversight to the K-20 Educational Network Consortium Office of the Chief Information Officer (OCIO) General operational and technical oversight to the K-20 Educational Network Consortium General K-20 Operational and Technical Oversight K-20 Educational Network Consortium General K-20 Operational and Technical Oversight K-20 Operations Cooperative (KOCO) K-20 Engineering & Day-to-Day Operations K-20 Operations Cooperative (KOCO) K-20 Engineering & Day-to-Day Operations Engineering Operations Administration Maintenance Provisioning Current Governance

4 K-20 Operations Cooperative  UW KOCO –Monitor Network & Server Status –Troubleshoot Network Problems –Coordinate Problem Resolution –Provide and Analyze Network Performance Data –Provide Technical Support  SBCTC KOCO –Manage Video Switched Network and MCUs –Schedule Multipoint Video Resources –Provide Technical Support

Network Architecture Upgrade

6 450 Sites Connected Independent College/ University (7) Tribal Education Center/ Tribal College (11) Telemedicine Site (5) Public Library (24) Public College/ University (33) Community/Technical College (65) K-12 District/ESD (302) TVW Olympia Washington State Historical Society Over 300 K-12 districts and Educational Service Districts More than 2,000 K-12 schools and 57,000 classrooms Over 1.5 million students KCTS 9 Seattle

7 Statewide Fiber Optic Backbone (2005) Olympia Seattle Spokane YakimaPullman Vancouver School District University or College Library 10 Gbps

8 K Gbps Network: Gen 3 (2013)

9 Current Node Site Architecture 9

10 Future Node Site Architecture 10

11 NoaNet Outages  Major NoaNet Outages over the past year  Most Recent: Yakima Area (60+ sites)  Vendor currently meeting contractual availability metrics  Initiated Design Review Early March  Cause: Noanet Cisco Switch Failure  New Design: Remove Noanet Single Point(s) of Failure 11

Internet Service Provider (ISP) Fees

13 Internet Service Provider (ISP) Fees  K-20 is statewide INTRA-net  K-20 Network does not directly procure INTER-net access for customers  OSPI contracts for ISP on behalf of connected K-12 sites  No state subsidy for ISP  No legislatively set rate structure –Estimates provided by OSPI at beginning of year –Actual cost determined at end of year, based on actual, total cost of service –Includes E-rate discounts

14 ISP Usage and Cost History for K-12

15 ISP Cost per Megabit Billed to Endsites

K-20 Connectivity Costs

17 K-20 Co-pay Principles  Established by K-20 Network Consortium  All sites must pay the same amount per unit of transport – regardless of institution size, location, or connectivity methodology  Co-pay is amount needed from connected institutions after state subsidy and E-rate reimbursements  Must be in line with options available in competitive marketplace  Much lower than actual cost to provide service

– 2013 K-20 Budget Federal E-rate 24% ($7.2M)

19 K-20 Co-pay History  1996: –When K-20 was established, co-pay was set based on cost of a T1 in downtown Seattle ($625/quarter)  2005: –Co-pay revised to reflect increase in Ethernet availability, cheaper rural options –Moved to usage-based model; not capacity based –Co-pay set at $400/Mbps/quarter up to 6 Mbps; $60/Mbps/quarter beyond 6 –Only 25 sites had usage > 6 Mbps  2012: –Co-pay revised again to address high bandwidth users –228 sites now have usage > 6 Mbps –59 sites now have usage > 50 Mbps

Co-pay Review (presented to K-20 Network Consortium May 8, 2012)  Expenses have remained reasonably stable, in spite of increases in bandwidth utilization –Contributing Factors:  Removal of all ISDN video connections and many T1s  Installation of lower cost Ethernet connections  Transition of CTS KOCO responsibilities to UW  Increases in E-rate reimbursements (60% in 2000; 71% in 2012)  Usage has increased at approximately 50% per year  Transport expenses have not increased at the same rate  Without changes to co-pay model, sector co-pay invoices would increase at a greater rate than K-20 expenses  Co-pay rates for high bandwidth users are increasingly out of line with competitive marketplace

21 Proposed Quarterly Co-pay Reduction (approved by K-20 Network Consortium May 8, 2012) 95 th % usage (Mbps) Cost per Quarter $400/Mbps $25/Mbps$40/Mbps$50/Mbps (currently 174 sites)(currently 34 sites)(currently 17 sites) (currently 199 sites)

22 Recent History  Over the past few months, some districts have indicated that they were paying more for K-20 than they could to other vendors  Some of these claims were easily addressed: –For high-bandwidth users, the new co-pay structure addressed this –In some cases, vendors and districts were basing these claims on outdated or inaccurate information  In others, it was determined to be true  K-20 and OSPI committed to districts that the co-pay would be reassessed, and any necessary changes made

Co-pay Review  School Districts that qualify for high e-rate discounts (80% and above) may be paying more for co-pay than they would for the post-discount portion of competitive offerings (10 – 20% of the actual cost of service)  Current approach: –K-20 receives approximately $5M in e-rate reimbursements annually for circuits procured for K-12 and library sites –Co-pay for all sites is the same – regardless of sector or e-rate discount qualification –State appropriation currently subsidizes higher ed sites at a greater rate than K-12 and library sites, as E-rate provides much of the K-12 and library subsidy.  In order for co-pay to stay in line with competitive marketplace, and meet legislative intent, additional changes to co-pay must be made

Tom Carroll Susan Tenkhoff K-20 Contact Information