[OPLINLIST] eRate Changes FAQ

[Knapp, Mandy]

Please excuse cross-postings

Hello all,

As promised, below is a Frequently Asked Questions (FAQ) about the changes to eRate. I know many of you will have additional questions. I will do my best to answer those I can, but I ask for your patience as I only can relay to you the information that has been provided to me, which at this time is not exhaustive. As mentioned in the FAQ, an in-depth workshop on this topic will be available this fall.

By providing this information, it's my hope that it will assist you in planning for future budget cycles. Also attached to this email is information about the Cooperative Purchasing Program. This is not an endorsement; my only goal in providing this information is to let you know options that are available to you.

Best,
Mandy



What's eRate?

eRate, or Universal Services Schools and Libraries program,  is a discount set by the Federal Communications Commission (FCC) and administered by the Universal Service Administrative Company (USAC) that schools and public libraries receive on telecommunications, internet and internal connections. Depending on a library's organizational structure the director, the fiscal officer and the IT staff may be involved in eRate filing. If you are unsure if your fiscal officer has seen this message, please forward it to him or her as it may affect future budget cycles.

What's happened?

On Friday, July 11, the Federal Communications Commission (FCC) approved an Order and Further Notice of Proposed Rulemaking<http://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0723/FCC-14-99A1.pdf> to make significant changes to the eRate Program. The Order maintains eRate's current budget and makes available additional funds to support Wi-Fi over the next two years.  The program will phase out support for non-broadband services and voice services, such as pagers and phones, in order to use those funds for broadband services.

What does the FCC mean by broadband services?

The FCC is focusing services eligible for Category 2 (formally known as Priority 2) reimbursement on the implementation of Wi-Fi in order to expand broadband service. This includes routers, switches, wireless access points, internal cabling, racks, wireless controller systems, firewall services, uninterruptable power supplies (UPS) and software supporting those components. It also includes equipment that combines functionality such as routing and switching. Further, managed Wi-Fi support and equipment that supports caching or caching functionality is also included. A full list of eligible services will be made available in the fall.

What is included in managed Wi-Fi?

Eligible managed Wi-Fi expenses include the management and operation of the LAN/WLAN, including installation activation and initial configuration of eligible components, and on-site training on the use of eligible equipment.

What does the FCC mean by non-broadband services and voice services?

Voice services includes all costs incurred for the provision of telephone service and circuit capacity dedicated to providing voice services including: local phone service, long distance service, plain old telephone service (POTS), 800 services, Centrex,  wireless telephone service and interconnected VOIP.

Non-broadband services include paging and other services that may use broadband but do not provide it such as email, text messaging, voicemail and web hosting.

When is the phase out of non-broadband services happening?

Beginning in eRate fiscal year 2015, the FCC will no longer provide eRate funding for paging, email, voice mail, web hosting and other services that are not related to providing broadband. Applicants may continue to seek funding for individual data plans and air cards but only when they can demonstrate that that is the most cost-effective way to connect library locations to the Internet.

In addition, the FCC will reduce funding for voice support in each eRate fiscal year by subtracting the discount rate applicants receive for voice services by 20 percent in each funding year. In eRate fiscal year 2015, the discounts applicants receive for voice services will be reduced by 20% from their discounts rates for other eligible services.  In eRate fiscal year 2016, the discounts applicants receive for voice services will be reduced by 40% from their discounts rates for other eligible services.

After the first two years of the phase down of non-broadband service, the Bureau will issue a report evaluating the impact of the reduction in support for voice services. If the FCC takes no further action, the voice services phase down will continue.

eRate Fiscal Year (FY)

Calendar Dates of FY

Phased out

FY2015

July 1 2015-June 30 2016

Voice services funding reduced by 20%; No funding for email, voice mail, web hosting and other non-broadband services.

FY2016

July 1 2016-June 30 2017

Voice services funding reduced by 40%

FY2017

July 1 2017-June 30 2018

Voice services funding reduced by 60%

FY2018

July 1 2018-June 30 2019

Voice services funding reduced by 80%


My library's budget depends on the eRate reimbursement for telephone service. What can we do to plan for the phase out voice services?

Although costs and quality will vary by service provider, generally Voice-Over-IP (VOIP) telephone service is less costly than POTS (regular telephone service). If your library's budget depends on eRate reimbursement for telephone service, you may want to consider moving to a VOIP system. One option available to Ohio public Libraries is to purchase hosted VOIP through the State of Ohio's Cooperative Purchasing Program.  For more information on this State of Ohio's Cooperative Purchasing Program please see the attached document. This document has been compiled purely for informational purposes and should not be seen as an endorsement.

At my library system's branches, broadband needs are very small. Are there any changes that affect it?

The FCC has created an exemption to the competitive bidding rules for Internet access services that offer at least 100 Mbps downstream and 10 Mbps upstream and have a pre-eRate discount price of $3,600 or less annually. This $3,600 annual limit is the pre-discount amount per library branch.  For example a library system with three library branches could qualify for this exemption if it purchased 100 Mbps and 20 Mbps upstream internet access services for each of its three branches at a cost of $250 per month per branch.

How is the funding for Wi-Fi calculated?

Funding for Wi-Fi for public libraries is calculated at $2.30 per square foot or a floor for libraries at or below 4000 square feet of $9,200. This means that if a library is smaller than 4000 square feet, the library would apply for Wi-Fi funding at the same level as a 4000 square foot library. For a detailed explanation of this funding model please see the American Library Association's calculation to the FCC.<http://apps.fcc.gov/ecfs/document/view?id=7521371721> This is a new model that the FCC will be testing for the next two years.

If my library is planning to upgrade our Wi-Fi, is it best to plan this to happen in the next two years?

If a Wi-Fi upgrade in eRate fiscal year 2015 or 2016 makes sense to your library, you might want to ask for the funding in those funding years since a new vote by the FCC commissioners would be required after fiscal year 2016 to allocate funding for Wi-Fi specifically.

Are technology plans still required to be filed with the State Library of Ohio?


No, certified technology plans are no longer required for eRate funding. However, the State Library of Ohio encourages libraries to have a technology plan either in addition to or integrated in to an overall strategic plan. Consultants at the State Library are happy to assist you in future technology planning or to provide feedback on an existing technology plan. Contact Mandy Knapp (aknapp at library.ohio.gov<mailto:aknapp at library.ohio.gov>) for more information.



Other important updates include:



*        A simplified process for multi-year contracts of 5 years or less.

*        Required electronic filing.

*        Clarification on consortium purchasing.

*        Waiver requests available for internet connections between schools and libraries.

*        Update on the definition of rural.

*        Update to include CEP data.



Details about these updates will be covered in the fall eRate Workshops.

I'm overwhelmed by these changes. How can I get assistance?

This year, because of these changes, OPLIN and State Library are planning to do many more eRate workshops in locations around the state and are also looking into improving online delivery of the workshops. As in previous years, Lorrie Germann, State eRate Coordinator, will be the presenter.  Watch for details, including registration, early this fall.




[cid:image002.jpg at 01CFA7E3.A1233E50]
Mandy Knapp
Library Consultant
274 E. 1st Avenue
Columbus, OH 43201
Tel: 614-466-1710
Toll Free:800-686-1532 (Ohio Only)
Fax: 614-466-3584
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