E-rate modernization continues to be implemented We survived 2015 (more or less) – now what? Today’s session is focused on implementation of changes to E-rate – We will focus on highlights – encourage additional study of changes Seek out experienced assistance as you prepare and work through the next E-rate season Get started early Attend local trainings/read training materials/watch training videos The era of the EPC (EPIC) portal is here – If you are not signed in, you are already behind

Questions & Answers At the end of the presentation ENA is available at your convenience Webinar will be available on the ENA website at

ENA Background A Top 10 E-rate Service Provider Over $500M in E-rate funded Over $140M in 2015 E-rate filings Customer Service & Education Focus z K–12 customized service E-rate expertise E-rate Program Service Provider since Year 1 (1998) Experienced E-rate team led by Rex Miller and April Scott 4 E-rate Service Provider Leader

E-rate News Window Dates Expect opening in January 2016 Closing expected March 2016 —Don’t be surprised that portal issues delay window closing until April Similar to last year Filing early is strongly encouraged 5 Eligible Services List issued for ’16 – ‘17 Minor changes to list Items expected to start in 2016 will occur New 470 and 471 again – provided in the portal National publicity regarding broadband and service costs Item 21 data remains a work in progress, but being released anyway

E-rate Changes Are Here EPC (EPIC) Portal has been released All applicants should be logged in —If not, contact SLD for log-in information All forms will be online and through the portal 470 is already in place – others in process 471 expected to be ready in mid-January 6 EPIC Tips ENA has limited exposure as not an applicant and very little for a vendor to do at this point other than watch Encourage review of SLD training videos on the portal News Feed section will show all your SLD communications —Learn to work with that section —Communications that used to be paper will be delivered by EPIC —RNL, RAL, FCDL, etc. Anything pending – like PIA requests – is supposed to be a “Task” Start early and be patient with portal – it is not going away Stay tuned for more changes and updates

Eligible Services Key Changes Fiber/Broadband Dark fiber and lit fiber now have “equal treatment” —Applicants can request —Lit Fiber —Dark Fiber —Self-provisioned Fiber —If applicants wish to accept bids for dark or self-provisioned, must also accept bids for lit service and compare all on an equal basis/time horizon Construction costs for building fiber can be covered by E-rate —Local costs can be spread over 4 years if procedures followed 7 Firewall Services Firewall services are considered C1 only if not separately priced —If not C1, can be funded as C2 —Consider listing on your 470 under C1 and C2 for flexibility

Eligible Services – Category 2 Budgets Check your remaining budget as you begin planning for E-rate season If you used C2 in 2015, need to make sure you are treated appropriately — Must use Form 500 to return any unused funds or you cannot be approved to get those funds again (even if not spent) Budget calculations have not changed, but this is year two to use budgets

Voice Services Update If bandwidth is dedicated to voice, then it must be allocated between voice and data — QOS or Prioritization is not considered “dedication” This only applies to bandwidth and not to other voice costs — Those voice costs are subject to phase down Bandwidth used to deliver voice services must be evaluated for eligibility Voice including VoIP and cellular/mobile — 40% discount rate reduction for 2016 Phase down of support for Voice, VoIP, and related legacy services continues

New Forms Form 470 Included/Accessed through EPC portal only Completely new interface that is being upgraded as it is being used Be alert for pop-up boxes with alerts and tips New checkbox to request vendors to bid installment plans of up to 4 years for local portion of construction costs for fiber —If you do not check the box, you cannot have this treatment Tip from E-rate training —If you wish to cancel a 470, you can’t do it yourself, but you can have the Client Service Bureau do it —Reach CSB through the portal 10 Form 471 Will be part of portal Expected to be available mid-January –OMB has approved – waiting official release Tip – consider multiple 471s – - SLD continues to be reluctant to fund individual FRNs on a Entire 471 can be held over one FRN that is under review - They seem to have no problem when there are separate 471s

Other Program Forms and Functions PINs are being phased out PINs not used by Portal You will have a Portal Log-In instead —Do not have to file a paper form to get one! 11 BEAR payments direct to applicants Beginning on invoices filed July 1, 2016 —Will require use of portal —Form 498 required to be completed by applicant —Bank info required —Electronic payments to applicants

Portal is new to everyone Category 2 Budget – Year is new and as of yet unknown Item 21 likely to change based on data clean-up results from 2015 Things We Think We Know Form 471 Likely to Require More Time To Complete

Assuming portal does not fail - —Expect quicker approvals for early filers and simple applications Expect slowness for fiber applications following new rules regarding dark vs lit Anticipate that SLD will not complete all by September deadline Timing of 2016 Approvals 2016 year likely to be a mixed bag New Category 2 funding to be approved Integration of significant changes in eligible services Up to three different discount rate matrixes to apply Additional items requiring changes to forms and practices 2015 was more complex than before

471 Timing 14

E-rate Timing Soapbox E-rate continues the trend of the later closing of filing window in March Target early February at the latest Strongly encourage applicants who want to get approved before July 1 to file their 471s as soon as possible PIA will likely start for you before the 471 filing window is closed, so be ready Advantages Earlier approval More time to make the portal work for you No last minute rush to file If you have an error, you can file another 471 before filing deadline and cancel initial incorrect filing – probably easier than using RAL process

Resources Rex Miller – April Scott – Ward Chaffin – Contact ENA 16 SLD – main E-Rate rule site – training/WebEx Fall training slides are available if you did not attend  Specific topic videos posted and to be added  Includes info on EPC and Fiber Go to the SLD website’s training section to sign up Key info provided on changes to the program all year long SLD News Brief – make sure your are signed up for these s Websites z