K-20 Co-pay and ISP Basics Valid for Fiscal Years 2010 & 2011 (July 1, 2009 – June 30, 2011)

Capacity vs. Usage Based Co-pay  Capacity Based charges: –User charge based upon capacity provided  Usage Based charges: –User charge based upon usage of the capacity provided, calculated at 95 th % ALL K-12 connections to K-20 are billed based on USAGE, NOT capacity amnoon 6 pm midnight Mbps capacity (10 Mbps) usage (2.5 Mbps)

Quarterly Calculation of 95th %  Usage is measured every 5 minutes: –12 measurements per hour –24 hours per day –90 days per quarter –12*24*90 = 25,920 measurements per quarter  Results are ordered from smallest to largest  Top 1,296 results are discarded (5% of 25,920)  6,480 minutes (1,296*5 minutes) of peak traffic are disregarded and not billed as part of 95th %  1,297th largest result is the 95th % usage amount  108 hours (6,480 minutes) of PEAK traffic disregarded each quarter for billing purposes

Quarterly Costs: Co-pay  Established by legislatively-approved budget every two years  Co-pay is amount needed from connected institutions after state subsidy and E-rate reimbursements  Much lower than actual cost to provide service  Current data connection co-pay –Based on quarterly utilization at the 95th percentile 0.00 – 1.00 Mbps = $ – 6.00 Mbps = $ 400/Mbps > 6 Mbps = $2,400 (6 * $400) + $60/Mbps for use over 6 Mbps

Quarterly Co-pay for Data Connections (based on usage at the 95 th percentile)

Internet Service Provider (ISP) Fees  K-20 is statewide INTRA-net  K-20 Network does not directly procure INTER-net access for customers  OSPI contracts for ISP on behalf of connected K-12 sites  No state subsidy for ISP  No legislatively set co-pay –Estimates provided by OSPI at beginning of year –Actual cost determined at end of year, based on actual, total cost of service –Includes E-rate discounts

ISP Fee Basics (cont’d)  University of Washington invoices OSPI for ISP fees –Rate based on aggregate K-20 sector usage –Greater aggregate usage means lower per Mbps cost for individual sites  ISP fees per Megabit have declined dramatically over the years –2000 – 2001: OSPI spent over $623,000 on ISP.  Highest quarterly usage that year was 110 Mbps –2010 – 2011: OSPI estimates ISP to total less than $225,000.  Current quarterly usage is over 2.5 Gigabits!

K-12 Costs for K-20 Connections 2010 – 2011 MAX COST Summary  For sites with usage less than 6 Mbps: –$430/Mbps ($400/Mbps Co-pay + $30/Mbps ISP)  For sites with usage greater than 6 Mbps: –$2,580 for first 6 Mbps ($2,400 Co-pay + $180 ISP) –$90/Mbps for any usage beyond 6 Mbps ($60/Mbps Co-pay + $30/Mbps ISP)