Transcript Priority 2 Funding: An Applicant’s Guide

E-rate 2.0 Reforms
Preview of Possible Changes
February 11, 2014
Presented by:
Julie Tritt Schell
PA E-rate Coordinator
[email protected]
Agenda
History of E-rate Reform - 2010
Summary of Major NPRM Topics –
2013
Details of FCC Chairman Wheeler’s
E-rate Blueprint – Feb 2014
What It All Means...
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2010 E-rate Reforms
In September 2010, FCC adopted these E-rate reform
measures:
 Allowed applicants to lease fiber from any provider (not just
telecommunications carriers)
 Allowed applicants to lease unlit existing fiber
 Allowed the community to use E-rate eligible services after
hours – on school campus
 Allowed E-rate funded services to be provided to most dorms
 Create a 1-yr pilot competitive pilot program that provided
funding for off-campus wireless connectivity through mobile
devices
 Increased the E-rate funding cap to annual inflation (it is
currently capped at $2.25 billion)
 Eliminated the E-rate tech plan requirement for Priority 1
services
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ConnectED
• In June 2013, President Obama introduced the
ConnectED initiative:
 Within 5 years, connect 99% of schools to 100 mbps, with
a target of 1 Gbps
 Provide high-speed wireless connectivity within their
schools and libraries
• Called on the FCC to make this happen
 FCC can change E-rate without Congressional approval
 We know they are working closely on reform and funding
efforts
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E-rate 2.0 NPRM
 In July 2013, FCC released E-rate 2.0 Notice of Proposed
Rulemaking (NPRM).
 Massive - 175 pages, 616 questions and 357 ideas on which
comments were requested
 17 major topics identified
 Sought comments from stakeholders
 Initial Comments were due September 2013; replies due November
2013
 1250+ initial comments; 94 replies submitted
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Major NPRM Topics
• Change E-rate priorities so that high-capacity broadband and
the associated equipment needed to disseminate that
broadband to and within those buildings becomes Priority 1
• Phase out support for paging, text messaging, directory
assistance, custom calling features, inside wiring
maintenance plans, call blocking, 800 number services
• Consider phasing out, de-prioritizing or eliminating:
◦ All voice services (presumably basic telephone service, local and long
distance
◦ Internet access provided via cellular data plans, including aircards
◦ Web hosting and hosted e-mail services
◦ Basic maintenance of internal connections
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Major NPRM Topics
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CIPA-related questions
Streamline the administration of the E-rate program
Consider increasing $2.25 billion funding cap
Consider reforming the competitive bidding process
Encourage consortium purchasing
Increase the transparency of prices for E-rate supported
services
 Provide direct BEAR reimbursement to applicants
 Consider extending document retention requirements
from five to ten years
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Major NPRM Topics
Possible Funding Distribution Options:
1) Revise the discount matrix?*
2) Incorporate a per-student or per-building
cap on funding into the discount matrix?
3) Provide more equitable access to Priority
2 funding?
4) Allocate funds through a fixed dollar
amount before the funding year begins?
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ConnectED
• On February 4th, President Obama announced major
corporate contributions of over $750 million to his
ConnectEd initiative that aims to connect 99% of the
nation's schools to high-speed broadband
technology within five years. The contributions will
not be part of the E-rate program but instead will be
coordinated by the US Department of Education
– No details on when this separate initiative will be rolled
out
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FCC Chairman, Tom Wheeler, Speech
• On February 5, 2014, FCC Chairman Wheeler gave
major speech about E-rate reform in which he
announced it was one of his top priorities
• Some details given, but most details will come in a
Public Notice (PN) that will be released in the next
few weeks, seeking comment on a very targeted set
of issues (unlike the broad NPRM)
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Funding
• Double the amount of E-rate funds available to
support broadband to $1 billion per year over the
next 2 years
– Unknown whether this is additional money or a
redistribution of existing funds
• He is open to a future funding increase but noted,
“any funding change must be preceded by an
assessment of the use of current funds along with a
fact-base analysis of the needs of the program.”
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Immediate Changes
• All Priority 1 requests will be funded for FY 2014
• No program changes to FY 2014
• Acceleration of broadband consortia application
reviews
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Future Changes
• Public Notice being released in next few weeks that
will propose specific changes
– How to prioritize broadband services
• Increase focus (prioritization) of WIFI equipment and broadband
wiring needed to support WIFI
– How to appropriate phase out legacy services
• Low-bandwidth connections, dial-up, e-mail, paging
• Unknown what this means for voice
– Long-term modernization including fundamental structural
and administrative changes to make program more userfriendly
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Timing
• Public notice to be released in the next month
– Short comment cycle
– May not be a reply comment cycle
• Order will then be released announcing final changes
– Chairman wants it issued over the summer
– Some changes will become effective for FY 2015; others
will become effective for FY 2016
– Some hints at a possible fall 2014 window
• Don’t know if this would be for FY 2015 or would be a special
‘broadband’ or ‘wifi-only’ window
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What About Priority 2 for FY 2014?
• No funding available for Priority 2 in FY 2013
• FCC staff specifically said this does not mean that P2
is gone forever
• If no additional money is added to cap, it is unlikely if
there will be much, if any, P2 money available for FY
2014
– FCC ‘rolled-over’ $450 billion just to fund all Priority 1
requests for FY 2013
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What About Priority 2 for FY 2014?
• But if they DO identify additional funding, they
could...
– A) Use it to fund some P2 for FY 2014
– B) Establish a separate pilot program or application
window (perhaps in fall 2014) that focuses on WIFI
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What Should You Do Now
• Never hurts to apply for P2
– Especially if you need WIFI equipment or broadband equipment
• PEPPM not eligible for FY 2014
– Post your own 470 before February 26
• Be sure to include the words “or equivalent”
– Bid in local newspapers
– Sign E-rate contingent contract
• Can be as little as signing/dating the vendor quote
– File 471 before March 26
• File P2 on separate Form 471 than P1 requests
• Make sure your technology plan is approved
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Summary
• Changes coming for FY 2015, maybe 2016
• Much will depend on stakeholder comments to Public Notice
• Priorities will be changing, if they exist at all
• Eligible services and eligible equipment will be changed
• More applicants will qualify for equipment purchases
• Unknown what happens to voice services
• Program will be more applicant friendly
• FCDLs will come much faster (starting with FY 2014)
• Major emphasis on consortia (starting with FY 2014)
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Questions?
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