10/11/2013 THE STATE OF E-RATE TODAY Craig J. Nichols, Secretary 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 2010-2012 Status of Priority 1 Funding Requests $13,342,595.98 $9,979,152.32 Amount Denied Amount Pending Amount Funded $193,769,652.57 3 1
10/11/2013 Funding Years 2010-2012 Status of Priority 2 Funding Requests $84,425,290.36 Amount Denied Amount Pending Amount Funded $16,946,041.00 $225,737,581.52 4 Funding Years 2010-2012 Amount Denied 5.58% Telecommunications & Internet Access 94.42% 5 Increasing Capacity Pressure on Schools Standardized Online T esting (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 2
10/11/2013 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 T welve E-Rate recommendations, most of which are contained in recently released E-Rate 2.0 NPRM 9 3
10/11/2013 SETDA May 2012 SETDA Report: “The Broadband Imperative: Recommendations to Address K-12 Education Infrastructure Needs” Capacity Goals: • 2014-2015 – ISP Circuit: At least 100 Mbps per 1000 students – WAN: At least 1 Gbps per 1000 students • 2017-2018 – 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 4
10/11/2013 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 5
10/11/2013 FCC E-Rate 2.0 NPRM FCC Notice of Proposed Rulemaking (NPRM) Released July 23, 2013 • 175 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 6
10/11/2013 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, 2013 20 NPRM Detail Go to FAEDS presentation 21 7
10/11/2013 QUESTIONS? 22 8
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