K-20 Education Network Update for the NWESD Districts

1. K-20 Education Network Updatefor theNWESD Districts May 9, 2013

2. Overview • K-20 Governance Changes/Audit • Network Architecture Upgrade • K-20 Connectivity Costs

3. K-20 Governance

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

5. 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

6. Network Architecture Upgrade

7. 450 Sites Connected K-12 District/ESD (302) Community/Technical College (65) Public College/ University (33) Public Library (24) Telemedicine Site (5) Tribal Education Center/ Tribal College (11) Independent College/ University (7) TVW Olympia KCTS 9 Seattle 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

8. Seattle Spokane Olympia Yakima Pullman Vancouver Statewide Fiber Optic Backbone(2005) Library School District University or College

9. K-20 40 Gbps Network: Gen 3(2013)

10. Current Node Site Architecture

11. Future Node Site Architecture

12. 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

13. Internet Service Provider (ISP) Fees

14. 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

15. ISP Usage and Cost History for K-12

16. ISP Cost per Megabit Billed to Endsites

17. K-20 Connectivity Costs

18. 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

19. 2011 – 2013 K-20 Budget Federal E-rate 24% ($7.2M)

20. 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

21. 2012 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

22. Proposed Quarterly Co-pay Reduction(approved by K-20 Network Consortium May 8, 2012) $50/Mbps $40/Mbps $25/Mbps (currently 174 sites) (currently 34 sites) (currently 17 sites) $400/Mbps (currently 199 sites) Cost per Quarter 45 95 5 95th% usage (Mbps)

23. 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

24. 2013 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-discountportion 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

25. K-20 Contact Information Tom Carrolltomc@k20wa.org (360) 725-5102Susan Tenkhoffsusant@k20wa.org (360) 725-5103