1. MASBO February 11, 2015 Gary Rawson ITS
E-rate
MASBO
February 11, 2015
Gary Rawson
ITS

2. What is E-rate?
It provides discounts on eligible services; discounts range from 20% to 90%
Discounts are determined by poverty level which is determined by students eligible for Free or Reduced lunches
Only schools (public, private, parochial…) and public libraries are eligible entities.

3. What is E-rate?
Eligible Services in two categories: P1 and P2, now C1 and C2
C1 includes WAN circuits, Internet Access, , Cellular Service, Wireless Data, POTS, Long Distance, VOIP and other telecom services
C2 includes Routers, Switches, Wiring, Cable between buildings, WiFi

4. Where does the Funding come from?
10. Federal Universal Service Charge

5. Mississippi E-rate
We are currently in our 17th year of the program and are now entering our 18th year of the program
Committed dollars, including FY2014: $578,475,538.18
Average $ per student, per year: $69.44
(Assuming Student Count of 490,000)
Statewide Average $ per year: $34,027,972.83

6. Is e-rate changing? Yes. Is it being Modernized.
How will the Modernization impact my district?
Available funding
District Discount Calculation
C2 funding, used to be P2 funding
P1/C1 Eligible services that are now ineligible
Eligible services (Voice) being phased out
New services that are now eligible
School Budgets

7. Available Funding
For 17 years the program has been capped at $2.25 billion, increased a few years ago due to inflation to $2.3 billion.
Starting in FY2015, 18th year of the program, the cap will be increased to $3.9 billion
An additional $1 billion has been set aside for C2 (Wi-Fi)
Potentially, we could have $4.9 billion for FY2015!

8. District discount Calculation – Discount Table

9. District Discount Calculation – The way we used to calculate Discounts
SCHOOL
ENTITY U
Student %
Matrix
Wt.
Distr.
NUMBER R
CNT
Eligible
Elig.
Prod.
School 1 1
398
342
86% 90
358
School 2 2
659
472
72% 80
527
School 3 3
321
263
82%
289
School 4 4
161
134
83%
145
School 5 5
317
259
285
School 6 6
314
277
88%
283
School District Name D1
2170
1747
81%
1887
87%

10. District Discount Calculation – The way we NOW calculate Discounts
SCHOOL
ENTITY U
Student %
Matrix
District
C2 Dollars
NUMBER R
CNT
Eligible
Elig.
$150 per
After
Discount
School 1 1
398
342
86%
$ ,700
School 2 2
659
472
72%
$ ,850
School 3 3
321
263
82%
$ ,150
School 4 4
161
134
83%
$ ,150
School 5 5
317
259
$ ,550
School 6 6
314
277
88%
$ ,100
School District Name D1
2170
1747
81% 90
90%
$ ,500
$ 292,950

11. C2 funding, used to be P2 funding
No P2 funding for previous two years
Starting in FY2015, at least $1 billion has been set aside for C2
Emphasis on Wi-Fi (Internal Broadband Service)
No longer eligible as P2/C2
Telephone Components, Video Components
Voice over IP components, Video over IP components
Gateways, Servers, Software, Storage Devices

12. C1/P1 Eligible services that are now ineligible
Telecom
Paging, Custom Calling Services, 900/976 call blocking
Inside Wire Maintenance, Directory Assistance, DID lines
Internet Access
Web Hosting
Voice Mail
Cellular
Text Messaging
Cellular Data Plans
Virtually Ineligible

13. C1/P1 Eligible services (Voice) that are being phased out
Centrex
Circuit capacity dedicated to providing voice service
Interconnected VoIP
Local, long distance, 800 service
POTS
Wireless telephone service including cellular voice
Excludes data and text messaging

14. Voice Services phase out
If you are 90%
2015 = 70% discount (90%-20%)
2016 = 50% discount (90%-40%)
2017 = 30% discount (90%-60%)
2018 = 10% discount (90%-80%)
2019 = 0% discount (ineligible) (90%-100%)

15. New services that are now eligible
Cache Engine (C2)
Managed Wi-Fi (C2)
Direct Connections between two schools or NIF
Direct Connections between a school and a library

16. School Budgets (C2 funding)
Each school gets a budget of $150 per student
NIFs do not get a budget
NIF with classroom does not get a budget
Stand Alone Alternative Schools get a budget
Vocational Schools get a budget
Budgets are pre-discount
80% District has a School with 2000 students
Budget = 2000 * $150 * .80
Budget = $240,000

17. E-rate coordinator has to deal with a lot of changes this year
Services that are no longer eligible
Services that are being phased out
Services that are now eligible
Availability of more funding (C2)
School budgets
New forms
The FCC’s emphasis on data gathering
An open Window