As the FCC prepares to issue its Notice of Proposed Rulemaking (NPRM), and with the recent announcement of President Obama's ConnectED initiative, education stakeholders are starting to rev up advocacy to improve access to broadband for schools and inform policy makers of connectivity needs around E-Rate. Another driver for broadband adoption in schools is that, particularly in rural and poor areas, our nation's schools are not ready to deliver online assessments by the 2014 deadline. Schools need high-speed Internet access for delivery of blended, online and digital learning strategies as they recognize the potential to personalize learning to close the achievement gap and get students college and career ready. Join education and broadband telecommunications leaders (including an official from the FCC and two former US Department of Education Directors of Educational Technology) for this first in a series of iNACOL E-Rate 101 webinars to educate and empower education advocates to engage in the E-Rate reform discussion. (http://inacol.org)

1. www.inacol.org
E-Rate 101: Basics for
Education Advocates
Susan Patrick, President and CEO, iNACOL
Lisa Hone, Deputy Division Chief,
Telecommunications Access Policy Division,
FCC
Jon Bernstein, Co-Chair, EdLINC
John Bailey, Executive Director, Digital Learning
Now
July 25, 2013

2. www.inacol.org
Welcome & Introductions
Susan Patrick
President & CEO, iNACOL

3. Susan Patrick
President and CEO, iNACOL
John Bailey
Executive Director, Digital
Learning Now!
Jon Bernstein
Co-Chair, EdLINC Coalition
Lisa Hone
Deputy Division Chief,
Telecommunications Access
Policy Division, Wireline
Competition Bureau, Federal
Communications Commission
Panelists

4. About iNACOL
• Premier K-12 nonprofit in online learning dedicated to an important student-centric
mission: that all students have access to a world-class education and quality online and
blended learning opportunities that prepare them for a lifetime of success.
• Leadership, advocacy, research, training, and networking with experts in K-12 online
learning.
– 4400+ members in K-12 online and blended learning in over 50 countries
– Annual conference – iNACOL Blended and Online Learning Symposium:
Orlando, FL in October 28-30, 2013
• Our strategic areas of focus in online and blended learning:
1. Policy
2. Quality
3. New Learning Models

5. Overview
• Goal: Empower education advocates to
get involved in the E-rate discussion
• Topics:
– Program basics
– Legislative and regulatory history
– E-rate 2.0: what to watch for & how to get
involved
– Discussion with Lisa Hone of the FCC

6. www.inacol.org
E-Rate Basics
Susan Patrick
President & CEO, iNACOL
John Bailey
Executive Director, Digital Learning Now!

7. Where we are now
• News Flash: FCC launches update of E-
Rate 7/19/2013
• E-Rate Established in 1996 Telecom Act
– E-Rate providing discounts on
telecommunications services/Internet access
and connections to libraries and schools.
– Schools apply for E-Rate Funding USAC

8. USF
• E-rate is one of four Universal Service Fund
(USF) programs
• Administered by the Universal Service
Administration Company (USAC)
• USF is funded not out of general tax revenues
but from a contribution fee system imposed on
certain telecommunications carriers.

9. What E-rate Funds
• Provide more than $2 billion in annual discounts
to help schools and libraries obtain
telecommunications and Internet access.
• Discounts range from 20 to 90%.
• Schools and libraries can apply on their own or
in consortia.

10. Eligible Services & Prioritization
• Priority 1 (funded first)
– Telecommunications Services
– Telecommunications
– Internet Access
• Priority 2 (funding cap- not fully funded)
– Internal Connections (eligible products)
– Basic Maintenance of Internal Connections
(repair and upkeep of eligible products)

11. Application Process
Source: http://www.gao.gov/new.items/d09253.pdf

12. Digital Learning Now!
Digital Learning Now! is a national campaign under the Foundation for Excellence in
Education with the goal of advancing state policies that will create a high-quality digital
learning environment to better equip all students with the knowledge and skills to succeed in
this 21st-century economy.
• Advocacy: Building the broad public and political will needed to support policy change
in legislation, regulation, and other policy levers to support digital learning.
• State Capacity Building: Assisting states in developing digital learning strategies for
approving online courses or schools, defining quality criteria, developing funding
structures, or providing flexibility to allow room for innovation with new school models.
• Collaboration: Leveraging the work of other thought leaders and organizations.
• Thought Leadership: Using white papers, convenings, and other resources, we seek to
help make digital learning issues more aligned to the education reform community.
Annual Summit bringing together 800 state leaders, innovators, and education reformers.
Oct. 17-18 in Boston

13. • Questions?

14. www.inacol.org
Historical context on FCC
regulation and E-Rate
Jon Bernstein
Co-Chair, EdLINC Coalition
http://www.edlinc.org
President
Bernstein Strategy Group

15. EdLiNC
• Most major k-12 public and private
education associations + ALA belong
• Established to pass the E-Rate prior to
Telecom Act of 1996
• Has participated in every E-Rate
rulemaking since 1996
• Goal: preserve and protect the E-Rate

16. History of E-Rate
• From Telecom Act 1996 to today
• Key Issues:
– Program Goals
– Priorities
– Applications for discounts
– Role of providers
– Matrix of services and emerging technologies
– Advocates and constituencies involved

17. E-Rate Issues of Yore…
• Sound a lot like its issues today
– Funding
• 1998: EdLiNC report indicates 15% of P2 applicants turned
away
• 2000: $1.14 billion for internal connections/no P2 below 80%
• 2012: $543 million for internal connections/no P2 below 90%
• 2013: Possibly no money for P2
– Goals
• 1998-Today: Public school classroom connection rates
• 2005: EdLiNC proposes measures based on speed
• 2013: Obama/Rosenworcel propose broadband goals
• Education-related goals opposed by EdLiNC as contrary to
statute and program’s mission

18. Same as it ever was
– Waste, Fraud and Abuse Protections
• Early Program Problems: Puerto Rico, Chicago, Atlanta, Ysleta
• USAC Protections:
– Audits,
– Site visits
– Whistleblower hotline
– Prosecution agreement w/DOJ
– Debarment
– HATS visits
– Federal Gift Rules
– Structure
• Discount matrix adjustments
• Per pupil caps
– Application Process Streamlining
• 1997: one napkin
• 1998: dozens of paper forms
• 2013: online applications
• EdLiNC supports multi-year applications for P1 services

19. Song remains the same
– Appeals Backlog
• Program Year 2011: over 1,800 appeals to
USAC, about 3 months to resolve appeals
– Increasing/reducing services
• Voice
• Leasing dark fiber
– 1998-2003: eligible
– 2004-2010: ineligible pending ruling on FCC power to
regulate dark fiber
– 2011- : eligible

20. Questions?

21. www.inacol.org
E-rate 2.0
John Bailey
Executive Director, Digital Learning Now!

22. E-rate 2.0
• New demands for broadband
– PARCC/SBAC and other online assessments
– Digital learning
– Blended and Online learning
• Program Effectiveness
– Can it be strengthened?
– Can the process be simplified and streamlined?
– What should the program support, for whom, and
for how much?

23. E-rate 2.0
Source: Funds for Learning

24. Opportunity to Update E-Rate
• FCC voted unanimously on Friday to move forward with
NPRM to reform the E-rate.
• NPRM spells out three goals for modernization:
1. Increased Broadband Capacity;
2. Cost-Effective Purchasing
3. Streamlined Program Administration
FCC
Vote
Comments
Due
Reply
Comments
Final Rule
Sept 16July 12 Oct 16

25. Increased Broadband Capacity
• Simplifying rules on fiber deployment to lower barriers to
new construction
• Prioritizing funding for new fiber deployments that will
drive higher speeds and long-term efficiency
• Phasing out support for services like paging and
directory assistance
• Ensuring that schools and libraries can access funding
for modern high-speed Wi-Fi networks in classrooms
and library buildings
• Allocating funding on a simplified, per-student basis

26. Cost Effective Purchasing
• Increasing consortium purchasing to drive down prices
• Creating other bulk buying opportunities and increasing
pricing transparency
• Increasing transparency on how E-rate dollars are spent
• Improving the competitive bidding process
• Creating a pilot program to incentivize and test more
cost-effective purchasing practices

27. Streamlined Program Administration
• Speeding review of E-rate applications
• Providing a streamlined electronic filing system and
requiring electronic filing of all documents
• Increasing the transparency of USAC’s processes
• Simplifying the eligible services list and adopting more
efficient ways to disburse E-rate funds
• Streamlining the E-rate appeals process

28. Other Issues
• The applicability of the Children’s Internet Protection Act
(CIPA) to devices brought into schools and libraries, and
to devices provided by schools and libraries for at-home
use
• Adjusting to changes to the National School Lunch
Program that affect E-rate
• Additional measures for protecting the program from
waste, fraud and abuse
• Wireless community hotspots

29. www.inacol.org
FCC & E-Rate:
NPRM & Process
Lisa Hone
Deputy Division Chief
Telecommunications Access Policy Division
Wireline Competition Bureau
Federal Communications Commission

30. www.inacol.org
Q&A
Please submit your questions
in the chat box

31. Resources
– USAC Schools & Libraries Program (E-Rate
Administrator) http://www.usac.org/sl/
– iNACOL http://www.inacol.org
– Digital Learning Now!
http://www.digitallearningnow.com/

32. www.inacol.org
Thank you!
Follow up questions about this webinar?
Contact:
Maria Worthen
Vice President for Federal & State Policy, iNACOL
mworthen@inacol.org
Register now for the next e-Rate Webinar “e-Rate
2.0” on Tues. August 6 at 4 EST:
http://bit.ly/19kGyEy