Craig J. Nichols, Secretary THE STATE OF E-RATE TODAY 1

Increasing Pressure on the Fund  Annual Funding Available: $2.25B Cap + Inflation (+ Approved Rollover Funds)  FY 2013 Funding: $2.25B + $130M = $2.38B (+ $450M) = $2.83B  FY 2013 Demand: $4.986B $2.7B for P1 - First year rollover funds needed for P1 $2.286B for P2 - If all P1 requests funded, only $130M left for P2 2

Funding Years

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Increasing Capacity Pressure on Schools  Standardized Online Testing (e.g., Common Core/PAARC)  Digital Curriculum/eBooks  BYOD/BYOT  Increasing use of Apps/Video Streaming/Cloud  Flipped Classroom – Individualized, Interactive, Collaborative  Distance Learning/Virtual Schools 6

Increasing Capacity Pressure on Schools  2010 FCC Schools and Libraries Survey: – 50% reported slower connection speeds than average home – 39% report cost as greatest barrier to full broadband capacity  2012 American Library Association Survey: – 25% of libraries have broadband speeds of 1.5Mbps or less – 9% have speeds of 100 Mbps or more 7

E-RATE REFORM 8

National Broadband Plan March 2010 FCC releases 376 page order that set broadband goals for education, government, consumers, homeland security, health care, and energy  Twelve E-Rate recommendations, most of which are contained in recently released E-Rate 2.0 NPRM 9

SETDA May 2012 SETDA Report: “The Broadband Imperative: Recommendations to Address K-12 Education Infrastructure Needs”  Capacity Goals: –ISP Circuit: At least 100 Mbps per 1000 students –WAN: At least 1 Gbps per 1000 students –ISP Circuit: At least 1 Gbps per 1000 students –WAN: At least 10 Gbps per 1000 students 10

E-Rate 2.0 April 11, 2013 FCC Commissioner Jessica Rosenworcel: “Reboot, reinvigorate, and recharge E-Rate.”  2011 FCC Study: 80% of schools & libraries do not believe their broadband needs are being met  Four steps to reform E-Rate: Increase E-Rate funding to handle increased demand By FY2015, every school should have access to 100Mbps per 1000 students; by FY2020, 1 Gbps per school Encourage & institute new & creative public-private partnerships Simplify E-Rate application process 11

ConnectED June 6, 2013 Obama Administration unveils ConnectED Initiative  Upgraded Connectivity – Within 5 years: 99% of students connected at speeds no less than 100Mbps with target of 1 Gbps High speed wireless within schools and libraries Increase E-Rate $$$  Trained Teachers Digital education tools Use existing ESEA $$$  Build on Private Sector Innovation Educational Devices Global learning opportunities Educational software 12

Obama Administration June 14, 2013  Presidential Memorandum: “Expanding America’s Leadership in Wireless Innovation”  NIST & NTIA Announcement: Will establish new Center for Advanced Communications in Boulder, CO 13

LEAD Commission  Leading Education by Advancing Digital (LEAD) Commission June 13, 2013: Five-Point Blueprint –Solve infrastructure challenge by updating wiring of schools –Build a national effort to deploy devices –Accelerate adoption of digital curriculum –Embrace & encourage model schools –Invest in human capital June 18, 2013: Supports FCC Chairman nominee Wheeler’s call to bolster E-rate, digital learning 14

U.S. Senate Commerce Committee  July 17, 2013  E-rate 2.0 Hearing Witnesses representing: –Calcasieu Parish School System –Maine State Library –LEAD Commission –Cisco 15

FCC E-Rate 2.0 NPRM  FCC Notice of Proposed Rulemaking (NPRM)  Released July 23, pages 616 questions and 357 ideas on which comments are requested Document divided into six categories: 1.Introduction 2.Goals and Measures 3.Ensuring schools and libraries have affordable access to 21st Century broadband that supports digital learning 4.Maximizing the cost-effectiveness of E-Rate funds 5.Streamlining administration of the program 6.Other outstanding issues 16

E-Rate 2.0 NPRM  Three Goals for Modernizing E-Rate Program: I.Increased Broadband Capacity Simplify rules on fiber deployment to lower barriers to new construction Prioritize funding for new fiber deployments that will drive higher speeds and long-term efficiency Phase out support for services like paging and DA Ensure that schools and libraries can access funding for modern high- speed WI-FI networks in classrooms and library buildings Allocate funding on a simplified, per-student basis 17

E-Rate 2.0 NPRM  Three Goals for Modernizing E-Rate Program: II.Cost-Effective Purchasing Increase consortium purchasing to drive down prices Create other bulk buying opportunities Increase transparency on how E-Rate dollars are spent Improve competitive bidding process Create pilot program to incentivize and test more cost-effective purchasing practices 18

E-Rate 2.0 NPRM  Three Goals for Modernizing E-Rate Program: III.Streamlined Program Administration Speed review of E-Rate applications Provide streamlined electronic filing system & require electronic filing of all documents Increase transparency of USAC’s processes Simplify Eligible Services List & adopt more efficient ways to disburse E-Rate funds Streamline E-Rate appeals process 19

E-Rate 2.0 NPRM  Other Broad Issues Addressed by NPRM: Applicability of CIPA to devices brought into schools and libraries, & to devices provided by schools and libraries for at-home use Adjusting to changes to NSLP that affect E-Rate Additional measures for protecting program from waste, fraud, and abuse Wireless community hotspots  Comment Dates: Initial Comments due September 16, 2013 Reply Comments due October 16,

NPRM Detail  Go to FAEDS presentationFAEDS presentation 21

QUESTIONS? 22