inacol 2013-07-25 e-rate 101: basics for education advocates

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www.inacol.org E-Rate 101: Basics for Education Advocates Susan Patrick, President and CEO, iNACOL Lisa Hone, Deputy Division Chief, Telecommunications Access Policy Division, FCC Jon Bernstein, Co-Chair, EdLINC John Bailey, Executive Director, Digital Learning Now July 25, 2013

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www.inacol.org

E-Rate 101: Basics for Education Advocates

Susan Patrick, President and CEO, iNACOL

Lisa Hone, Deputy Division Chief, Telecommunications Access Policy Division, FCC

Jon Bernstein, Co-Chair, EdLINCJohn Bailey, Executive Director, Digital

Learning Now

July 25, 2013

www.inacol.org

Welcome & Introductions

Susan PatrickPresident & CEO, iNACOL

Susan PatrickPresident and CEO, iNACOL

John BaileyExecutive Director, Digital Learning Now!

Jon BernsteinCo-Chair, EdLINC Coalition

Lisa HoneDeputy Division Chief, Telecommunications Access Policy Division, Wireline Competition Bureau, Federal Communications Commission

Panelists

About iNACOL• Premier K-12 nonprofit in online learning dedicated to an important student-centric

mission: that all students have access to a world-class education and quality online and blended learning opportunities that prepare them for a lifetime of success.

• Leadership, advocacy, research, training, and networking with experts in K-12 online learning.– 4400+ members in K-12 online and blended learning in over 50 countries– Annual conference – iNACOL Blended and Online Learning Symposium: Orlando,

FL in October 28-30, 2013• Our strategic areas of focus in online and blended learning:

1. Policy2. Quality3. New Learning Models

Overview• Goal: Empower education advocates to

get involved in the E-rate discussion

• Topics:– Program basics– Legislative and regulatory history– E-rate 2.0: what to watch for & how to get

involved– Discussion with Lisa Hone of the FCC

www.inacol.org

E-Rate Basics

Susan PatrickPresident & CEO, iNACOL

John BaileyExecutive Director, Digital Learning Now!

Where we are now

• News Flash: FCC launches update of E-Rate 7/19/2013

• E-Rate Established in 1996 Telecom Act– E-Rate providing discounts on

telecommunications services/Internet access and connections to libraries and schools.

– Schools apply for E-Rate Funding USAC

USF• E-rate is one of four Universal Service Fund

(USF) programs

• Administered by the Universal Service Administration Company (USAC)

• USF is funded not out of general tax revenues but from a contribution fee system imposed on certain telecommunications carriers.

What E-rate Funds

• Provide more than $2 billion in annual discounts to help schools and libraries obtain telecommunications and Internet access.

• Discounts range from 20 to 90%.

• Schools and libraries can apply on their own or in consortia.

Eligible Services & Prioritization

• Priority 1 (funded first)– Telecommunications Services– Telecommunications– Internet Access

• Priority 2 (funding cap- not fully funded)– Internal Connections (eligible products)– Basic Maintenance of Internal Connections

(repair and upkeep of eligible products)

Digital Learning Now!Digital Learning Now! is a national campaign under the Foundation for Excellence in Education with the goal of advancing state policies that will create a high-quality digital learning environment to better equip all students with the knowledge and skills to succeed in this 21st-century economy.

• Advocacy: Building the broad public and political will needed to support policy change in legislation, regulation, and other policy levers to support digital learning.

• State Capacity Building: Assisting states in developing digital learning strategies for approving online courses or schools, defining quality criteria, developing funding structures, or providing flexibility to allow room for innovation with new school models.

• Collaboration: Leveraging the work of other thought leaders and organizations.

• Thought Leadership: Using white papers, convenings, and other resources, we seek to help make digital learning issues more aligned to the education reform community.

Annual Summit bringing together 800 state leaders, innovators, and education reformers. Oct. 17-18 in Boston

• Questions?

www.inacol.org

Historical context on FCC regulation and E-Rate

Jon BernsteinCo-Chair, EdLINC Coalitionhttp://www.edlinc.orgPresidentBernstein Strategy Group

EdLiNC

• Most major k-12 public and private education associations + ALA belong

• Established to pass the E-Rate prior to Telecom Act of 1996

• Has participated in every E-Rate rulemaking since 1996

• Goal: preserve and protect the E-Rate

History of E-Rate

• From Telecom Act 1996 to today• Key Issues:

– Program Goals– Priorities– Applications for discounts– Role of providers– Matrix of services and emerging technologies– Advocates and constituencies involved

E-Rate Issues of Yore…• Sound a lot like its issues today

– Funding• 1998: EdLiNC report indicates 15% of P2 applicants turned

away• 2000: $1.14 billion for internal connections/no P2 below 80%• 2012: $543 million for internal connections/no P2 below 90%• 2013: Possibly no money for P2

– Goals• 1998-Today: Public school classroom connection rates• 2005: EdLiNC proposes measures based on speed• 2013: Obama/Rosenworcel propose broadband goals• Education-related goals opposed by EdLiNC as contrary to

statute and program’s mission

Same as it ever was– Waste, Fraud and Abuse Protections

• Early Program Problems: Puerto Rico, Chicago, Atlanta, Ysleta• USAC Protections:

– Audits,– Site visits– Whistleblower hotline– Prosecution agreement w/DOJ– Debarment– HATS visits– Federal Gift Rules

– Structure• Discount matrix adjustments• Per pupil caps

– Application Process Streamlining• 1997: one napkin• 1998: dozens of paper forms• 2013: online applications• EdLiNC supports multi-year applications for P1 services

Song remains the same

– Appeals Backlog• Program Year 2011: over 1,800 appeals to USAC,

about 3 months to resolve appeals

– Increasing/reducing services• Voice• Leasing dark fiber

– 1998-2003: eligible– 2004-2010: ineligible pending ruling on FCC power to

regulate dark fiber– 2011- : eligible

Questions?

www.inacol.org

E-rate 2.0

John BaileyExecutive Director, Digital Learning Now!

E-rate 2.0

• New demands for broadband– PARCC/SBAC and other online assessments– Digital learning– Blended and Online learning

• Program Effectiveness– Can it be strengthened? – Can the process be simplified and streamlined?– What should the program support, for whom, and

for how much?

E-rate 2.0

Source: Funds for Learning

Opportunity to Update E-Rate

• FCC voted unanimously on Friday to move forward with NPRM to reform the E-rate.

• NPRM spells out three goals for modernization:1. Increased Broadband Capacity;

2. Cost-Effective Purchasing

3. Streamlined Program Administration

FCC Vote

Comments Due

Reply Comments Final Rule

Sept 16July 12 Oct 16

Increased Broadband Capacity

• Simplifying rules on fiber deployment to lower barriers to new construction

• Prioritizing funding for new fiber deployments that will drive higher speeds and long-term efficiency

• Phasing out support for services like paging and directory assistance

• Ensuring that schools and libraries can access funding for modern high-speed Wi-Fi networks in classrooms and library buildings

• Allocating funding on a simplified, per-student basis

Cost Effective Purchasing

• Increasing consortium purchasing to drive down prices• Creating other bulk buying opportunities and increasing

pricing transparency • Increasing transparency on how E-rate dollars are spent• Improving the competitive bidding process• Creating a pilot program to incentivize and test more

cost-effective purchasing practices

Streamlined Program Administration

• Speeding review of E-rate applications• Providing a streamlined electronic filing system and

requiring electronic filing of all documents • Increasing the transparency of USAC’s processes• Simplifying the eligible services list and adopting more

efficient ways to disburse E-rate funds • Streamlining the E-rate appeals process

Other Issues

• The applicability of the Children’s Internet Protection Act (CIPA) to devices brought into schools and libraries, and to devices provided by schools and libraries for at-home use

• Adjusting to changes to the National School Lunch Program that affect E-rate

• Additional measures for protecting the program from waste, fraud and abuse

• Wireless community hotspots

www.inacol.org

FCC & E-Rate: NPRM & Process

Lisa HoneDeputy Division Chief Telecommunications Access Policy Division Wireline Competition Bureau Federal Communications Commission

www.inacol.org

Q&A

Please submit your questions in the chat box

Resources

– USAC Schools & Libraries Program (E-Rate Administrator) http://www.usac.org/sl/

– iNACOL http://www.inacol.org– Digital Learning Now!

http://www.digitallearningnow.com/

www.inacol.org

Thank you!Follow up questions about this webinar?

Contact:

Maria Worthen

Vice President for Federal & State Policy, iNACOL

[email protected]

Register now for the next e-Rate Webinar “e-Rate 2.0” on Tues. August 6 at 4 EST: http://bit.ly/19kGyEy