Craig J. Nichols, Secretary1

THE STATE OF E-RATE TODAY

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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

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Funding Years 2010-2012

$13,342,595.98 $9,979,152.32

$193,769,652.57

Status of Priority 1 Funding Requests

Amount Denied

Amount Pending

Amount Funded

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Funding Years 2010-2012

$225,737,581.52

$16,946,041.00

$84,425,290.36

Status of Priority 2 Funding Requests

Amount Denied

Amount Pending

Amount Funded

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Funding Years 2010-2012

5.58%

94.42%

Amount Denied

Telecommunications & In-ternet AccessInternal Connections & Connections Maintenence

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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

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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

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E-RATE REFORM

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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

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SETDA

May 2012SETDA 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

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E-Rate 2.0April 11, 2013FCC Commissioner Jessica Rosenworcel:

“Reboot, reinvigorate, and recharge E-Rate.” 2011 FCC Study: 80% of schools & libraries do not

believe their broadband needs are being metFour 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

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ConnectEDJune 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

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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

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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

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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

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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. Introduction2. Goals and Measures3. Ensuring schools and libraries have affordable access to 21st

Century broadband that supports digital learning4. Maximizing the cost-effectiveness of E-Rate funds5. Streamlining administration of the program6. Other outstanding issues

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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

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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

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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

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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

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NPRM Detail

Go to FAEDS presentation

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QUESTIONS?