1. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 1 Zeller and Associates, LLC This presentation is available at www.zellerandassociates.com/erate Click on “Presentation: Joliet: May 7, 2014”Presentation: Joliet: May 7, 2014 The e-Rate Program

2. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 2 1.Overview 2.Timelines 3.Changes 4.Help Agenda The e-Rate Program

3. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 3 The e-Rate Program Overview

4. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 4 Federal Communications Commission (FCC), an independent U.S. government agency, established and oversees the E-rate program Universal Service Administrative Company (USAC), a not-for-profit, administers the E-rate program along with three other programs Schools and Libraries Program (SLD) is the part of USAC with responsibility for E-rate E-rate Organization Overview

5. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 5 Congress directed the FCC to establish the E-rate program in 1996 The FCC sets rules and policies through orders USAC and the Schools and Libraries Division develop procedures for specific actions, such as how to process applications E-rate Rules Overview

6. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 6 Commitments for E-rate are made by the funding year (FY), which runs from July 1 through the following June 30 USAC refers to the funding year as the year in which most services will begin, e.g., FY2014 is July 1, 2014 to June 30, 2015 Funding Year Overview

7. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 7 The FCC has set the E-rate fund at $2.25 billion for each funding year. However, beginning in FY 2010, the cap is now adjusted for inflation each year Once each year, FCC can roll over unused funds from previous funding years into the current funding year Budget Overview

8. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 8 Who is eligible for E-rate funding? – Schools and school districts Non-traditional facilities (conditionally by state) – Libraries and library systems – Consortia – groups of eligible entities that band together to aggregate demand and negotiate lower prices Eligibility Overview

9. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 9 Discounts are 20-90 percent of eligible costs Discount level for a school or library depends on: – Percentage of students who are eligible for National School Lunch Program (NSLP) in (for a school) the school (for a library) the school district in which the library is located – Urban or rural location of the school or library Discounts Overview

10. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 10 Discount Matrix Overview INCOME % of students eligible for NSLP URBAN LOCATION Discount RURAL LOCATION Discount If the % eligible is......and you’re in an URBAN area, your discount will be......and you’re in a RURAL area, your discount will be... Less than 1%20%25% 1% to 19%40%50% 20% to 34%50%60% 35% to 49%60%70% 50% to 74%80% 75% to 100%90%

11. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 11 Priority 1 (P1): funded first – Telecommunications Services – Internet Access – Telecommunications (leased dark fiber) Priority 2 (P2): funding starts with neediest applicants – Internal Connections – Basic Maintenance of Internal Connections Categories of Service Overview

12. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 12 Internet Phone Category of Service Priority One (P1) Funded First

13. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 13 Category of Service Priority Two (P2) funded beginning with neediest applicants X X X

14. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 14 Overview Process

15. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 15 The e-Rate Program Timelines

16. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 16 Timelines Overview

17. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 17 e-Rate Changes

18. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 18 Estimate of Demand: FY 2013

19. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 19 Estimate of Demand: FY 2014

20. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 20 Within five years, connect 99 percent of America’s students to high speed wireless within their schools and libraries at speeds no less than 100 Mbps with a target of 1 Gbps. Obama’s ConnectED Initiative Changes

21. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 21 1.Increase broadband connectivity 2.Improve the cost-effectiveness of e-Rate funds 3.Streamline the Program Goals Changes

22. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 22 Decrease/end support for analog voice Devise new methods of funding Internal Connections – Per student? Tech Planning? Increase broadband connectivity Changes

23. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 23 Consortia – Diocese? – ICN: sorta… – MiCTA Cost-effectiveness of e-Rate Funds Changes

24. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 24 Eliminate the 470??? Streamlining the Program Changes

25. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 25 e-Rate Zeller and Associates, LLC

26. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 26 We prepare the documents and file the forms You inform us of changes and additions in advance You provide us with the information we need You make the decisions You keep the records Full Service Zeller and Associates, LLC

27. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 27 Group Filing Sessions – 470 in October – 471 in January Guidance Documents – 486 – 472 (BEAR) Available for questions By “Form” Service Zeller and Associates, LLC

28. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 28 Phone: (888) 203-8100 Fax: (888) 276-8736 Website: www.usac.org/slwww.usac.org/sl With questions, please contact USAC! Contacts

29. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 29 Gerry Zeller V:847.828.4606 F:847.729.5240 E:gzeller@zellerandassociates.com Zeller and Associates, LLC Or Zeller and Associates, LLC

30. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 30 Questions?

31. Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 31 Thank you!