1. Gary Rawson MS Dept. of Information Technology Services (ITS) Connect MS 2015 Gulf Coast Conference

2. E-rate What is E-rate? It is a Federal Program administered by the FCC (Federal Communications Commission) Purpose is to provide discounts on advanced telecom services to K-12 schools and libraries Annual budget of $3.9 Billion Not a grant program Discounts on Broadband services – Internet Access, WAN connections, Wi-Fi (internal Broadband) – Currently phasing out voice services

3. Where does the Funding come from? 10. Federal Universal Service Charge 3.42

4. Where does the funding go? Universal Service Administration Company (USAC) – USAC is a non-profit organization established by the FCC USAC administers 4 programs that make up USF – E-rate: broadband to schools and libraries $3.9 billion annual cap – Rural Health: broadband to Rural Health Care Providers $400 million annual cap Dr. Kristi Henderson’s program – Lifeline: phones for low income, migrating toward broadband for low income No Cap, but approved disbursements of $1.6 billion in 2014 – Connect America Fund: migrating from traditional voice networks to broadband networks $4.5 billion annual cap

5. Mississippi and USF: http://www.universalservice.org/_res/documents/about/pdf/annual- reports/usac-annual-report-2014.pdf $189,673,000-CAF $15,087,000- Lifeline $3,371,000-Rural Health $29,993,000-E-rate $238,124,000-Total USF for 2014

6. Mississippi and E-rate 18 th year of the program 97% of public schools have fiber connectivity $585,977,631 e-rate funds and counting Average 85% discount $103,407,817 State match $689,385,448 pre-discount and counting For FY2015 – $62,015,654 e-rate funding request – $75,208,033 pre-discount services

7. Do you have Broadband at your Home or Business? Where is your nearest school? All but 22 schools in Mississippi have fiber Visit your school Find out who the service provider is Call the service provider and ask if you can access that fiber/broadband If you are told “no” then ask yourself why are you being asked to fund something you cannot use

8. Typical E-rate Project

11. Right Way

12. Wrong Way

13. So, where is the weakness in what USF is doing?

14. Service Provider Cloud Service Provider Cloud E-rate Rural Health Lifeline CAFLifeline Your Community

15. After 18 years of E-rate $40 billion in e-rate funding (and counting) We still have schools and libraries without access to affordable broadband Are all rates the same for 1 gig Internet (MIS) – MS SMC = $4,054 – Another state = $34,740 Another example, 1 gig WAN circuit – MS SMC = $750 – Neighboring state = $5,000

16. Wrong Way Self Provisioned Networks

17. Mississippi and USF: http://www.universalservice.org/_res/documents/about/pdf/annual- reports/usac-annual-report-2014.pdf $189,673,000-CAF $15,087,000- Lifeline $3,371,000-Rural Health $29,993,000-E-rate $238,124,000-Total USF for 2014 Who is coordinating these broadband projects and expenditures?

18. Gary.rawson@its.ms.gov