Network Background August 2006

1 Topics  Services  Connected Institutions  Architecture  Operations  Finances/Co-pay  Looking Forward  Services  Connected Institutions  Architecture  Operations  Finances/Co-pay  Looking Forward

2 K-20 Services  Washington State Education Intranet –Distance Learning –Research –Video Conferencing (including multi-point) –Business Applications and Business Continuity  Internet Access –Internet & WWW –Internet 2  Washington State Education Intranet –Distance Learning –Research –Video Conferencing (including multi-point) –Business Applications and Business Continuity  Internet Access –Internet & WWW –Internet 2

3 Currently Connected Institutions K-12 Locations306 Community & Technical College Sites72 Public Baccalaureate Sites40 Public Library Sites26 Telemedicine Sites19 Private College and University Sites7 Tribal Education Centers11 Correctional Facilities3 TOTAL K-20 SITES:484 K-12 Locations306 Community & Technical College Sites72 Public Baccalaureate Sites40 Public Library Sites26 Telemedicine Sites19 Private College and University Sites7 Tribal Education Centers11 Correctional Facilities3 TOTAL K-20 SITES:484

4 Network Responsibilities K-20 ON-GOING COSTS Transport KOCO Maintenance Depreciation INSTITUTION ON-GOING COSTS Video maintenance & depreciation PCs & LANs Training Intra-district infrastructure ISP District/Campus Routers Institution Router K-20 Data Equipment Codec & Video Equipment District/Campus Video Equipment K-20 Network K-20 Network Control (KOCO)

5 K-12 (306) Community/Technical College (72) Public College/University (40) Tribal Education Center/ (11) (includes branch campuses)(includes branch campuses) Tribal College Library (26) Correctional Facility (3) Independent College/University (8) Telemedicine (19)

6  Carrier circuits provide protection switching  SONET only  Ring of Rings  State manages protection  Wave basis/MSPP  Ring architecture  Carrier circuits provide protection switching  SONET only  Ring of Rings  State manages protection  Wave basis/MSPP  Ring architecture Current vs. NGN Architecture Current NGN

7 K20/DIS NGN Benefits  Will efficiently and cost-effectively: –Create a resilient architecture – no single point of failure –Increase the robustness – better scaling –Reduces dependency on carrier’s ability to build resiliency in their networks –Allow state to leverage all state transport resources  Will efficiently and cost-effectively: –Create a resilient architecture – no single point of failure –Increase the robustness – better scaling –Reduces dependency on carrier’s ability to build resiliency in their networks –Allow state to leverage all state transport resources

8 K-20 Operations Cooperative  KOCO: DIS, UW, SBCTC  Monitor Network & Server Status  Troubleshoot Network Problems  Coordinate Problem Resolution  Provide & Analyze Network Performance Data  Provide Technical Support  Manage Video Switched Network and MCUs  Schedule Multipoint Video Resources  Program Office Support  KOCO: DIS, UW, SBCTC  Monitor Network & Server Status  Troubleshoot Network Problems  Coordinate Problem Resolution  Provide & Analyze Network Performance Data  Provide Technical Support  Manage Video Switched Network and MCUs  Schedule Multipoint Video Resources  Program Office Support

9 Internet Traffic and Cost ISP cost per Mbps ISP traffic FY00 FY01FY02FY03FY04FY05 FY06 Mbps

10 Co-pay Basic Principles  Co-pay for the same services is to be independent of geographic location  Co-pay must compete with similar services in low-cost areas  Co-pay must be independent of type of transport  Co-pay must encourage proper management of resources  Co-pay for the same services is to be independent of geographic location  Co-pay must compete with similar services in low-cost areas  Co-pay must be independent of type of transport  Co-pay must encourage proper management of resources

11 Capacity vs. Usage Based Co-pay  Capacity Based: –User charge based upon capacity provided  Usage Based: –User charge based upon usage of the capacity provided, calculated at 95 th % amnoon 6 pm midnight Mbps capacity (10 Mbps) usage (2.5 Mbps)

12 Co-pay for Data Circuits 95th Percentile Usage (Mbps) Quarterly Fee $- $625 $1,250 $1,875 $2,500 $3,125 $3,750 $4,375 $5,

13 K-20 Board – Budget Responsibilities RCW  Prepare a budget for network development, operation, and expansion including: –Network transport and equipment –Co-payments for public entities connected to the network –Charges to non-governmental entities connected to the network  Prepare a budget for network development, operation, and expansion including: –Network transport and equipment –Co-payments for public entities connected to the network –Charges to non-governmental entities connected to the network

14 K-20 Office Develops Draft Detailed Budget Budget Reviewed and Approved by NTSC and Finance Subcommittee Budget Development Process Technical Subcommittee Develops Network Design Updates Budget Recommended To K-20 Board Support Organizations Develop Support Costs Educational Sectors Assess Needs

15 K-20 Operations Categories of Expense (07-09) Maintenance & Depreciation $7.3 M (27%) KOCO $9.0 M (34%) Transport $8.7 M (32%) Program Office $2.0 M (7%) $27 M in Expenses

16 K Revenue Sources State General Fund$20.2 M Participant Co-Pay6.0 M Qwest (Libraries).8 M $27.0 M State General Fund$20.2 M Participant Co-Pay6.0 M Qwest (Libraries).8 M $27.0 M

17 K-20 Intranet Traffic FY 00 FY 01 FY 02FY 03FY 04 FY 05FY 06 FY 07FY 08FY 09 billions of bytes

18 K-20 Expense $ 60 M $ 50 M $ 40 M $ 30 M $ 20 M $ 0 $ 10 M FY 00 FY 01 FY 02FY 03FY 04 FY 05FY 06 FY 07FY 08FY 09 billions of bytes $ 27.8 M$ 27.0 M$ 28.2 M$ 26.3 M$ 27.0 M

19 State General Fund Requests $ 60 M $ 50 M $ 40 M $ 30 M $ 20 M $ 0 $ 10 M FY 00 FY 01 FY 02FY 03FY 04 FY 05FY 06 FY 07FY 08FY 09 billions of bytes $ 22.8 M$ 22.6 M 1 $ 20.9 M$ 19.8 M 2 $ 20.2 M (1) includes $11.3 M provided by K-20 accumulated cash(2) includes $3 M Qwest Settlement Funds; $3.1 M K-20 accumulated cash

20 Capital Purchases  Budget includes estimated capital purchases –Replacement of aging network equipment –Continued phase-in of IP-based video –Equipment to support updated architecture and migration to high-speed Ethernet –Network management capabilities  Purchases to be made from K-20 revolving fund (accumulated depreciation)  Budget includes estimated capital purchases –Replacement of aging network equipment –Continued phase-in of IP-based video –Equipment to support updated architecture and migration to high-speed Ethernet –Network management capabilities  Purchases to be made from K-20 revolving fund (accumulated depreciation)

21 K-20 Revolving Fund (07-09) Estimated cash position 6/30/07$2.1 M Revenues –GF state appropriation20.2 M –Co-pay6.0 M –Qwest library funds0.8 M Operating expenses (less depreciation)(22.1 M) Capitalized purchases(4.7 M) Estimated cash position 6/30/09$2.3 M Estimated cash position 6/30/07$2.1 M Revenues –GF state appropriation20.2 M –Co-pay6.0 M –Qwest library funds0.8 M Operating expenses (less depreciation)(22.1 M) Capitalized purchases(4.7 M) Estimated cash position 6/30/09$2.3 M

22 Looking Forward  Board Subcommittee for Program –Biennial report –Value stories –New website; education focused  FY08/FY09 Budget Process –Approved by the K-20 Board –Will submit to OFM in August  Next Generation Network –Procurement Summer & Fall 2006 –Construction Winter 2006; Transition 2007  Board Subcommittee for Program –Biennial report –Value stories –New website; education focused  FY08/FY09 Budget Process –Approved by the K-20 Board –Will submit to OFM in August  Next Generation Network –Procurement Summer & Fall 2006 –Construction Winter 2006; Transition 2007