E-rate 2.0: Understanding the New Category 2 Services October 29, 2014

Moderator: Noelle Ellerson Associate Executive Director, Policy & Advocacy Presenter: Aleck Johnson Vice President EdTech Strategies, LLC Sponsored by: Presenter: Tim Laubach Program Director, Technology Services Lancaster-Lebanon IU 13

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Background o E-rate 2.0 Order (released 7/14/2014) replaced Priority 1 and Priority 2 with Category 1 and Category 2 o Historically Priority 2 included “Internal Connections” and Basic Maintenance of Internal Connections o No funding for P2 available in FY2013 or FY2014

The New Category 2 o FCC has set a goal of $1B per year in C2 funding for FY2015 and FY2016 o Category 2 eligible services include most of the same services that were eligible in Priority 2 Some devices related to video have been eliminated o Category 2 now subject to budget caps Budget caps will add significant complexity to the process Caps also may allow for funding to reach more applicants

Category 2 vs. Priority 2 Before E-rate 2.0: Priority 2 RoutersUPSes SwitchesPBX Wireless ControllersPVBX Wireless Access PointsVideo Components WiringServers Racks & CabinetsSoftware* FirewallsBasic Maintenance*

Category 2 vs. Priority 2 Before E-rate 2.0: Category 2 RoutersUPSes SwitchesPBX Wireless ControllersPVBX Wireless Access PointsVideo Components WiringServers Racks & CabinetsSoftware* FirewallsBasic Maintenance* Managed Internal Broadband Services Caching

Eligible Category 2 Services o New Services Caching (service or equipment, including servers) Managed Internal Broadband Services o Basic maintenance, Managed Internal Broadband Services, and Caching become ineligible after 2016 unless FCC takes action o Almost guaranteed* target of $1B+ in funding each year for FY2015 and FY2016 No guaranteed funding after FY2016 o Max. discount rate is 85%

The New Category 2: Budget Caps o New budget caps put in place (replacing old 2 in 5 rule) $150/student in prediscount costs over 5 years* -Funding floor of $9,200 per entity (62 students) Prediscount Can spend in one year or over up to five years Can spend beyond cap

The New Category 2: Budget Caps o Budget caps applied per BEN (school) Cannot shift unspent funding from one school to another Shared services can be allocated in tangible fashion with reasonable results among entities sharing service Applicants will need to keep documentation of allocation of funding o Budget caps go away after FY2016 absent FCC action (unless you rec’d funding in FY2015 or FY2016)

The New Category 2: Budget Caps Example o School with 200 students has a pre-discount budget of $150 * 200 = $30,000 over 5 years o School spends $18,000 on new wireless access points in FY2015 o Remaining budget of $12,000 can be spent in some or all of FY2016, FY2017, FY2018, and FY2019 Could purchase additional equipment or maintenance Funding not guaranteed

The New Category 2: Available Funding o FCC goal of $1B per year in FY2015 and FY2016 FCC has “saved” this funding from previous years so it will be available This funding is in addition to the regular $2.4B cap -Could be more than $1B available for C2 depending on C1 demand Unclear if funding will be available after FY2016 -Cuts in C1 will be major funding source -AASA and other groups working hard for a permanent cap increase -Find more information at

Cloud Managed Wireless

Vendors Include: o Meraki o Aerohive o Ruckus o Cisco o Aruba o …and lots of others

Cloud Managed Wireless: Site Survey Critical

Cloud Managed Wireless

Cloud Managed Wireless: Advantages Key Features and Benefits for Managed Wireless Quick Deployment Scalability 24hr Monitoring Simple Management Reporting Self Optimizing Self Healing Directory Authentication Step by Step Problem Analysis Rogue Detection Client Location Managed via Web Browser

Cloud Managed Wireless: IU 13’s Deployment District Requirements o Purchase compatible Cisco access points o Purchase SMARTnet for access points (optional) o Attend Wireless Control System Training IU 13 Requirements o Maintenance on all core wireless systems Wireless controllers WCS upgrades SMARTnet for core equip. Secure Access Control Server All associated licensing o Monitoring up/down for controller and Aps o Technical Support

Cloud Managed Wireless: Costs (without E-rate) Cost for District to Purchase Everything (Based on 100 APs) o Cisco 5760 Controller o Redundant Power Supply o SMARTnet (for controller) o 100 Cisco 3700 APs o Smartnet (for APs) o Cisco Prime Infrastructure o SMARTnet for Cisco Prime o Total First Year Cost o Yearly Maintenance $25,000 $500 $5,100/yr. $56,000 $6,000/yr. $7,800 $2,500 $102,900 $11,100/yr.

Cloud Managed Wireless: IU 13’s Deployment Cost for IU 13 members deploying via IU 13: $65 per access point per year Cost for Access Points = $56, APs x $65 = $6,500/yr Goals: o Affordable o Save districts money on hardware o Bulk purchasing of access points o Save districts’ time on management

Category 2 Summary o Minor changes in eligible services Addition of “managed internal broadband services” and caching services o New budget caps o Significant funding available in FY2015 and FY2016 o Possibility of funding beyond FY2016

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Archived Presentations o 10/15/14– Introduction to E-rate 2.0 o 10/22/14– Understanding the New Category 1 Services o 10/29/14 – Understanding the New Category 2 Services o Archives available on AASA website Send questions to

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Aleck Johnson EdTech Strategies, LLC Questions? Send them to