2006

1. 2006

2. HISTORY • Schools and Libraries Support Mechanism started providing discounts as of January 1, 1998 • Telecommunications Act of 1996 • Congress directed the FCC to “establish competitively neutral rules . . . to enhance, to the extent technically feasible and economically reasonable, access to advance telecommunications and information services for all public and non-profit elementary and secondary school classrooms . . . and libraries.” First Report and Order (FCC 97-157)

3. Where does e-rate money come from?

4. Who Administers E-rate? • FCC • Federal Communications Commission • Creates program rules and sets policy • USAC • Universal Services Administrative Company • Created by FCC to run E-rate and other universal service programs • Schools and Libraries Division (SLD) • Entity within USAC that runs the E-rate Program • Interprets FCC policy - Makes no policy decisions • http://www.universalservice.org/sl/ • http://www.universalservice.org/default.aspx

5. INTRODUCTION • Schools and Libraries Program • Provides discounts to eligible schools and libraries for Telecommunications Services, Internet Access, Internal Connections, and Basic Maintenance • Applicants can be schools, libraries, or consortia, but only eligible recipients of service can receive discounts • Applicants must apply for discounts each year (Form 471 application filing window) • Funding cap each year is $2.25 billion • One of four programs in the Universal Service governed by the Federal Communications Commission

6. Step 1 Determine Eligibility • Step 2 Develop a Technology Plan • Step 3 Open a Competitive Bidding Process • Step 4 Select a Service Provider • Step 5 Calculate the Discount Level • Step 6 Determine Your Eligible Services • Step 7 Submit Your Application • Step 8 Undergo Application Review (PIA & SR) • Step 9 Receive Your Funding Decision (FCDL) • Step 10 Begin Receipt of Services • Step 11 Invoice USAC • Step 12 Audits & Compliance Reviews

7. OVERVIEW • Application process • Eligibility • Technology planning • Competitive bidding / Form 470 • Calculating discounts • Funding requests / Form 471 • Application review / Funding commitments • Starting services / Form 486 • Invoicing USAC / Form 472 or Form 474

8. FUNDING PRIORITIES: Established by the FCC in June 1998 for use when demand for E-rate discounts exceeds available funding PRIORITY ONE: Telecommunications Services and Internet Access All approved funding requests will be funded at all discount levels if funds are available PRIORITY TWO: Internal Connections Internal Connections - Funded twice in a five year period Internal Connections - Basic Maintenance Funds go first to neediest applicants (90% discount level), then to others in order of discount until funds are exhausted PROGRAM OVERVIEW

9. ELIGIBLE ENTITIES • Eligible Entities--Schools • Schools must meet the statutory definition of an elementary or secondary school found in the Elementary and Secondary Education Act of 1965 • Must not operate as a for-profit business and have an endowment exceeding $50 million

10. SCHOOLS: Administrative buildings School bus barns and garages Cafeteria offices Facilities associated with athletic activities LIBRARIES: Administrative buildings Bookmobile garages Interlibrary loan facilities Library technology centers ELIGIBILITY • Examples of Non-instructional Facilities (NIFs) that can receive Priority 1 services

11. ELIGIBLE ENTITIES • Consortium: (NC Statewide Discount Rate is ~ 62%) • Of Eligible Schools and/or Libraries • Of Eligible and Ineligible Entities • Ineligible Entities would pay the lower pre-discount prices • Only Eligible Schools and Libraries would receive the added benefit of universal service discount mechanisms

12. (NCIH) Consortium: • (NC Statewide Discount Rate is ~ 62%) • North Carolina Information Highway • 75 - K-12 Sites Funded • NC ITS Managed/Supported • 29 Network Providers for 115 LEAs

13. ELIGIBLE PURPOSE • Educational purpose is defined as: • “The primary purpose of the services for which support is sought must be the delivery of services into classrooms or other places of instruction at schools and libraries that meet the statutory definition of an eligible institution. Support for the administrative functions of a library or education program is permitted so long as the services are part of the network of shared services for learning. Universal service support will be limited to services delivered to the onsite educational facility or facilities. Services at a personal residence or at locations that do not host places of instruction or are not accessible to library patrons, with the exception of a centralized district office or similar facility, are not eligible for support.”

14. ELIGIBLE SERVICES • Priority 1 – funded first • Telecommunications Services • Basic telephone service — wire line or wireless phone service (local, cellular/PCS, and/or long distance) • Voice mail • Transmission services (T-1, DSL) • Internet Access • Basic conduit access to the Internet • VoIP Services

15. ELIGIBLE SERVICES • Priority 2 (2005 – 81%, waiting on 80% Schools) • Internal Connections (switches, hubs, routers, wiring) • Basic Maintenance on Internal Connections • Internal Connections funded in only two out of five funding years. • Priority 1 funded first, then Priority 2 begins with neediest applicants (90% first, then 89%, 88%, etc.).

16. ELIGIBILITY • Educational Purposes – Priority 1 • Wireless Telecommunications Services used offsite may be eligible. For example, • School bus drivers delivering children to and from school • Library staff providing library services on a library’s mobile library unit van • Teachers or other school staff accompanying students on a field trip or sporting event.

17. ELIGIBILITY • Educational Purposes – Priority 2 • Priority 2 services to NIFs are NOT eligible unless those internal connections are essential for the effective transport of information to an instructional building of a school or to a non-administrative building of a library.

18. ELIGIBLE SERVICES • No end user equipment (phones, fax machines) • Telecommunications Services • Basic Telecommunications Services (local & long distance voice services) • Advanced Telecommunications Services (T-1, ATM, Frame Relay, etc.) • See eligible services list for more detail

19. ELIGIBLE SERVICES • Internet Access Services: • Special Rules regarding Internet Content: • Generally: no content supported • Bundled: must show that approach is most cost-effective • See eligible services presentation and list for more detail

20. Internal Connections: Wiring Routers Switches Network servers (WEB & E-Mail) System software Wireless LANs Private branch exchange (PBX) Video CODECs VoIP Equipment (not phone sets) Internal Connections Basic Maintenance ELIGIBLE SERVICES

21. ESTABLISHING DISCOUNT • National School Lunch Program Eligibility • Information needed for each school • Usually available at school district level OR from state • Libraries use data from local school district(s) in which they are located

22. ESTABLISHING DISCOUNT • Officially sanctioned measures exist for alternative methods of determining poverty levels. • Temporary Assistance for Needy Families (TANF) • Need-based tuition assistance programs that rely on family income data comparable to NSLP • Medicaid • Food stamps • Supplementary Security Income • Federal public housing assistance (Section 8) • Low Income Home Energy Assistance Program • New Surveys

23. 1026 < 50% 1231 => 50% 2257 LEAs ESTABLISHING DISCOUNT http://www.universalservice.org/sl/applicants/step05/discount-matrix.aspx

24. ESTABLISHING DISCOUNT Rural Status http://www.universalservice.org/sl/applicants/step05/urban-rural/default.aspx

25. TECHNOLOGY PLAN • Five SLD technology plan criteria • Goals and Objectives • Professional Development • Needs Assessment • Budget • Evaluation • Vendors cannot write or approve technology plans • No Tech plan required for basic telephone services • Tech plans approved for no more than 3 years • Plans must be started before filing and approved before start of service

26. TECHNOLOGY PLAN

27. BID EVALUATION

28. CIPA • Schools and libraries • Must hold a public hearing and then adopt “Internet Safety Policy” that addresses specified issues • Schools • Must operate a “technology protection measure” on computers that access the Internet • Must block or filter “visual depictions” that are “obscene, child pornography or harmful to minors” • Filtering software, per-se, not eligible for support

29. STARTING SERVICES • Obligation to Pay Non-discount Share • Applicants are required to pay their share of the cost (the “non-discount” portion or share) — this share cannot be donated, forgiven or ignored by the vender. • Service providers cannot waive or credit the applicant’s share. • Offers to reduce price must be incorporated into the “total pre-discount amount.” • Service provider must bill the applicant for non-discount share of services.

30. E-RATE • In • North Carolina • What are we going to do?

31. Connectivity is Essential • Instructional Applications & Research • 21st Century Skills, New High Schools, Virtual School, etc. • ILS, IMS, etc. • Curriculum Content area • Lesson Plans • Multi Media, On-line Learning, Distance Learning • NC WiseOwl • On-Line Testing • Many others • Administrative • NC WISE, CECAS • Physical plant devices • Security • Finance, Purchasing, e-Procurement • Others WHY?

32. Maintain internal DPI working group • Support from Financial Services • Instructional Technology regional consultants • Support person from Deputies office • Infrastructure consultant from technology area • Advisor from ITS • DPI Communications Support • WEB • List Serve • Meeting agendas • Direct Communications • Meeting Opportunities • Etc. • Similar LEA E-Rate Team Proposed

33. Communication • WEB • Email & ListServ • Phone • Visits • Regional meetings • Support • Trainings, Video Conf. • Liaison with SLD & Venders • Consulting • Reporting of Data • Participation in SECA

34. Provide Just in Time Training Opportunities • SLD Workshop • State Workshops • Regional Meetings • Leadership Sessions • Provide Support and Liaison services • Telephone • e-Mail • LEA visits • State-wide meetings • Technical Consulting for Infrastructure

37. Timelines are often short: • 470 / 471 Window (28 day 470) • This year November 14, 2006 to February 7, 2007 • Rules change often right before filing period opens

38. Q &A

39. Contact Info: • Benny E. Hendrix • E-Rate / School Connectivity • State Education E-Rate Coordinator • NC Dept. of Public Instruction • Educ. Bldg., Rm. 5079 • 301 N. Wilmington St. • Raleigh, NC 27601-2825 • 6364 Mail Service Center, Raleigh, NC 27699-6364 • Office: 919-807-3422 • Cell: 919-306-6013 • Fax: 919-807-3290 • PDF/Fax: 919-882-9996 • email: bhendrix@dpi.state.nc.us • WEB: http://www.ncwiseowl.org/erate

40. SLD - Schools and Libraries Division of Universal Services Administration Company • USAC - Universal Services Administration Company • SECA – State E-Rate Coordinators Alliance in US • LEA- Local Education Agency (Authority) • PIA – Program Integrity Assurance by SLD • SR – Selective Review by SLD • MCNC – Microcomputer Center of NC (also known as NCREN – NC Research and Education Network) • e-NC – Rural Internet Access Authority at the NC Rural Center – Jane Smith Patterson and team