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Funding Year 2014E-rate Roadshow

Fall of 2013

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ATT – Kris Gautier and Gayle PriceBCI – Mary Tucker and Kirk Cockrell

Cspire – Janice Fitzgerald and Jennifer HinmanHOWARD COMPUTERS – John Harper

INLINE – Tricia Dalton and Derrick LindseyLogista – Bertram Jenkins

Office Automation - Kitty FreemanSAMAC – Shannon GreerSYNERGETICS – Kay Hall

TELEPAK – Millie Rodabough and Katie CarpenterVENTURE – Debra Stuart

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Deja vu

Something that very few people know the true meaning of. Even though deja vu is French for "already seen", it actually is used to describe the strange feeling you get when you're in a situation, and feel like you've been in the exact same situation before, but really haven't. Most people think it means the same thing happening twice, which is wrong.

Yogi Berra:" It's deja vu all over again"

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How many of you are at this point?

I am giving e-rate to you, my friend. No need to thank me.

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What I don’t like about e-rate.What I need help with.

Angry? Frustrated?

Confused?

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Mississippi E-rate as of October 23, 2013

We are currently in our 16th year of the program and are now entering our 17th year of the program

• Committed dollars, including FY2012: $523,347,545.83

• Average $ per student, per year: $65.42 (Assuming Student Count of 500,000)

• Statewide Average $ per year: $34,889,836.39

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Mississippi E-rate as of October 23, 2013

FY 2011 FY 2012 FY 2013$0

$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000

$100,000,000

Pre-DiscountRequestedFunded

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What can we expect in FY 2014?NPRM?• We don’t know what is going

to come out of that box.• Will we get increased

funding?• Should you even apply for

P2?• If you have IC project, then

budget as if there were no e-rate funding…just to be safe.

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Funding Year Total P1 Demand % Increase from Previous Year

Demand VS Cap(Shortage of funds)

2012 $2,444,087,363 12.5% -$105,300,786

2013 $2,737,377,846 10.9% -$398,591,269

2014 $3,052,176,298 11.5% projected -$713,389,721

What can we expect in FY 2014Funding Cap of $2,338,786,577

This is P1 only!

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Talk within the FCC

Support for:• Changes to Discount Matrix• District-wide discount• Networking becoming P1,

especially WAPs (FY2014?)• More consortia applicants• Multi-year 471

Not much support for:• Additional funding• Continuation of Maintenance• Continuation of Voice Services• Purchase of fiber• Mobile learning• Per Student Cap

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FCC Commissioner Jessica Rosenworcel regarding E-rate 2.0

“Today's rulemaking sets out some capacity goals that I have proposed in the past--and fully support. By the 2015 school year, every school should have access to 100 Megabits per 1000 students. Before the end of the decade, every school should have access to 1 Gigabit per 1000 students. Libraries, too, will need access on par with these capacity goals. And this provides more than just scale for content and device providers. Because the spillover effect for this kind of broadband in local communities is substantial. Building Gigabit capacity to anchor institutions like schools and libraries is the ticket to Gigabit cites and the ticket to digital education and economic growth.”

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USAC October Board Meeting1. Window will open on or after January 8th

depending on IT readiness2. FY2013, denied at 89% and below3. $272 million (+ $400 m rollover) available for P2,

with a $1.76 b request for P2 at 90% discount4. 1000 Comments filed for NPRM

1. 412 – increase funds2. 300 –support broadband capacity goals3. 225 – suggested streamlining4. 116 – suggested discount matrix modifications5. 100 – suggested improvements to competitive

bidding

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ITS State Master Contracts

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Using ITS Single Award Contracts• For Single Award Contracts, there is only one

provider – ATT (4000-1): WAN services, In-State LD, Out of State

LD, POTS, Centrex, Voice Mail, MIS, WAN Equipment – Cspire (RFP3489): Cellular and Data

• Do you have to solicit quotes?– Yes, get them early, and get them often

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Education Super Highway

Median Internet$19

School Connectivity

$7.73

$5

1 gig MIS, 1 gig to district, and 1 gig to school

$25

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Your Own Procurement/Bidding Process

AT&T Here!

InLine Here!

Telepak Here! Comcast

Here!

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You want to purchase something.1. Verify that it is in your tech plan.

a. If not, update your TP

2. Check with potential vendors to see what your options are to meet your needs

a. You cannot work with just one provider

3. Write your RFP and then post your 470 on the same day that your RFP becomes available

a. 28 days starts after RFP or 470, whichever is laterb. Be sure to follow State Procurement rules

4. Evaluate your responsesa. Price is primary determining factor, but does not have to be the only factor

5. Take it to you Board for approvala. Verify what your particular district rules are regarding procurements

6. Sign the contracta. The contract is not valid until the district signs the contract

7. File your Form 4718. Wait for PIA or the FCDL, whichever comes first

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Eligible Services

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Eligible Services

Order The List

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Q n A

• Q: At the Applicant Training Session the question was posed "If an applicant requesting only POTS service receives a bid for VoIP service, does the applicant have to evaluate that bid?" How can an applicant, who does not have the technical expertise nor the network to run VoIP be required to evaluate (and possibly select) a bid for VoIP when all they want is POTS?

• A: The program is technologically neutral, so an applicant cannot exclude a VoIP solution simply because they requested a bid on POTS. However, the applicant can use the delivery method for the service as a factor in the evaluation process. Applicants need to ensure they select the most cost-effective service offering.

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Q n A

• Q: If an applicant’s bandwidth increases during the funding year can they increase their funding?

• A: Eric explained that USAC cannot increase the funding after a commitment is made. The applicant can increase their bandwidth (if the increase was properly bid), but USAC will not pay for the additional charges. Eric suggested the applicant also file a service substitution to notify USAC of the change.

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Q n A

• Q1: We have had recent rate reductions for services which allows for pass on to clients. What ERATE rules/guidelines prevent a client from upgrading bandwidth to a higher rate if there is no impact to the original funding amount for the year, contract allows for change. Example: Client pays 100.00 monthly for 10 Mb and has been funded for this amount. During the funded year a new rate for 10 Mb goes down to 50.00 and a 20 Mb is now 100.00 monthly. Assuming state/local contracts allow, and in this case they do, what ERATE rules would prevent a mid-stream change to the 20 Mb service if no impact to the original funded amount?

• Answer on next page

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Q n A

• A1: If the bidding documents notified bidders of an applicants desire to increase speeds down the road and the contract allows for such increases it is acceptable for the applicant to change speeds. USAC did not answer whether a service provider can pass on rate savings without the need to go through a new bidding process.

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Q n A

• Q: We are waiting for a commitment on Priority 1 services. Why is it taking so long?

• A: If you have a question about a specific application, please send an email to the Ombudsman with details. The email address is ombudsman@usac.org.

• Q: Does size have an effect on when an application is reviewed?

• A: Size is not an issue. It is random but if there are many new entities or a discount level must be validated it takes longer. Sometimes a larger application may take longer due to entity or discount validation.

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Q n A

• Q: What is the best way to find out when an FCDL will come out?

• A: There are too many parameters. We are trying to get as many applications out as possible. We used to get the small applications out first and it upset the large applicants. Then we tried a mixture but the small applicants got upset. Now we are trying to review them in order that they were received. We will put an application aside if it takes too long to hear back from the applicant or something else makes it take too long.

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Where does this come from?

The FCC has indicated that support may be provided for basic termination equipment, such as a CSU/DSU, cable modem, network interface device, or copper-to-fiber converter. In the case of such a single basic termination component at the applicant's site, the requirement to meet all conditions as provided in this document does not apply. The term "single" is used to apply to no more than one component per site. Configurations of more than a single basic termination component, such as configurations utilizing routers or other complex equipment, must meet the requirements indicated in the following sections.

http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services/priority-one.aspx

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Re -

Of yesterday

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Maybe???

• Window• Discount• P2• P1• RFP• Change services mid-year• POTS and VOIP

ISPISPISPISP

Internet CloudInternet Cloud

10 m @ $408100 m @ $5001000m @ $750

Metro-eFF FF

ISPISPISPISP

Internet CloudInternet Cloud

50 m @ $970100 m @ $1021250 m @ $1773500 m @ $38171000m @ $5874

MISMIS

FF FF

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Form Changes

470-471486-500

Propose Form 470 Propose Form 471

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Why this change about RFPs?Washington Unified School District (California)

• FY 2010 – Denied $1.9 million in P2 services• DR1: FRN was denied for failure to advise bidders that an RFP was issued. An RFP

was issued and the Form 470 advised potential bidders that no RFP existed. During our review, it was determined that you did issue an RFP. The documents titled "Summary of Projects" and "Instruction to Bidders - Bid Forms" outlined specific requirements, date of events and pre-requisites to be met by prospective bidders imperative to submit a qualifying bid. As stated on the USAC website, "An RFP describes the project undertaken, with sufficient details to inform potential bidders of the scope, location, and any other requirements for the project." FCC rules require applicants to submit a complete description of services they seek so that it may be posted for competing service providers to evaluate and formulate bids. The applicant's FCC Form 470 should inform potential bidders if there is, or is likely to be, an RFP relating to particular services indicated on the form. Since you failed to inform potential bidding service providers that an RFP was available for the products and/or services requested, you violated the competitive bidding process. Accordingly, this FRN is be denied.

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School Mergers

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Form Tracking Tool

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Item 21s

• There are 3 parts to an Item 21 Attachment1. Narrative overview or description

a) In plain English, what are you using the funding for

2. Line item detaila) Quantity, service description, unit cost, eligible and ineligible non-

recurring cost, eligible and ineligible non-recurring cost, total cost as you calculate it to be

3. Any additional detailsa) Where will the service be provided, is this the same service as last

year, is it under a multi-year contract

– And yes, you can get service provider assistance in providing Item 21 attachment

– And yes, always get a quote from your vendor.

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Item 21sDigital transmission services.

• This FRN is for 4 Wide Area Networking Circuits:– 3 existing Metro-e circuits.

• 100 meg to Elementary school @$mm per month recurring charge• 100 meg to Middle School @$mm per month recurring charge• 100 meg to High School @$mm per month recurring charge

– The installation of 1 Metro-e upgrade at the District Office• 500 meg @ $xx per month recurring charge• $yy non-recurring charge for infrastructure buildout of this one circuit

Note: Except for the circuit upgrade, this service is the same service as last year, 471#*****, FRN#**** and is covered under a multi-year contract with CAD of mm/dd/yy and CED of mm/dd/yy.

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Item 21sThings to remember

• It is always important to specify the bandwidth/speed on all Internet Access FRN’s (e.g., T-1, T-3, DS-1, 50 meg metro-e, 24 meg MPLS, etc.).

• If any of your FRN’s include web hosting, include third party documentation that sufficiently describes the exact services that are being provided as part of the web hosting service.

• Applicants should check the USAC website (not the vendors) to understand the eligibility requirements for the products and services being requested.

• If any portion of your phone bill or other vendor documentation submitted with your Item 21 Attachments includes “miscellaneous charges”, please provide an explanation of what these charges are (e.g., wiring jacks, faceplates, taxes, or required fees).

• If ineligible components or features are provided that require cost allocation, the Item 21 Attachment should include appropriate details to allow efficient review. Detail the cost allocation.

• If you are ordering server racks or equipment cabinets, please specify the make and model of the server or equipment being housed in the racks or cabinets and the intended use of the server or equipment.

• The most complete Item 21 Attachments will indicate compliance with the conditions of eligibility. For example: – "The Web hosting service has cost allocated xx percent to remove the ineligible content creation tools/services." – "The multiple T-1 lines are not redundant or duplicative and are required for the bandwidth needs of the applicant." – Handsets are not included with the Hosted VOIP service as shown in the contract, page xx. “The handsets must be

purchase through a separate billing process and the cost is not included with the VOIP Hosted Solution.”

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Item 21sOn Premise Priority One Equipment

• 1. Is the leased on-premise equipment an integral component of a Telecommunications or Internet Access

service? X Yes ___ No

• 2. Will the leased on-premise equipment be provided by the same service provider that provides the associated Telecommunications Service or Internet Access service? X Yes ___ No

• 3. Does responsibility for maintaining the equipment rest with the service provider? X Yes ___ No

• 4. Will ownership of the equipment transfer to the school or library in the future? ___ Yes X No

• 5. Does the relevant contract or lease include an option for the applicant to purchase the equipment? ___ Yes X No – 5a. If Yes, do you intend to exercise this option. Yes ____No____.

• 6. Will the leased equipment be used at the applicant site for any purpose other than receipt of the eligible Telecommunications Services or Internet Access of which it is a part? ___ Yes X No

• 7. Will the school’s or library’s internal communication systems (e.g., LAN, video, phone, or other communication system) continue to work if the component is disconnected? X Yes ___No.

• 8.Are there any contractual, technical, or other limitations that would prevent the service provider from using its network equipment, in part, for other customers? ___Yes X No

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Item 21sOn Premise Priority One Equipment

On Premise Priority One Equipment is provided by “vendor” and is part of a service that includes the leased circuit and router. The Router is a “Manufacturer” router model “Model”, with SKU “SKU”. The router is an integral component of my telecommunications/internet access service. Both circuit and router are provided by “vendor”. The responsibility for maintaining the equipment rests with “vendor”. The ownership of the router will never transfer to me or my district. The contract does not include an option for me to purchase the router. The router will be used solely for the receipt of the eligible Telecommunications Services / Internet Access of which it is part. My internal LAN will continue to operate if I unplug or disconnect the router. And, there is nothing in my contract and there is no technical or other reason that would prevent “vendor” from using the router for any other customer.

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Cloud

Elementary

“Vendor Network”

Middle

High

100 meg100 meg

500 meg (upgrade circuit)

100 meg

My School districtBEN:471:FRN:Item 21 Attachment: WAN Circuits

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When should I file multiple 471s?

• P1 vs P2• Complex procurement or project• High dollars in P2• High one-time charge in P1• New Hosted VOIP solution• Schools or districts merging

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When should I file multiple FRNs?

• Different Contracts or MTM• Different SPIN• Different Services (TC and IA)• Different locations (for your benefit)

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