Category Two Opportunities Techplex. Category OneCategory Two Eligible Services ◦ Data...

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E-Rate Changes Category Two Opportunities Techplex
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Transcript of Category Two Opportunities Techplex. Category OneCategory Two Eligible Services ◦ Data...

E-Rate Changes

E-Rate ChangesCategory Two OpportunitiesTechplexAvailable ServicesCategory OneCategory TwoEligible ServicesData Transmission ServicesInternet AccessVoice ServicesProgram provides discounts of 20 to 90%, based on needSubject to phase down on voice servicesEligible ServicesInternal ConnectionsManaged Internal Broadband ServicesBasic Maintenance of Internal ConnectionsProgram provides discounts of 20 to85% based on need.5 Year budget per school, not districtAccess pointsCablingCachingFirewallsSwitchesRoutersRacksUPSWireless LAN ControllersImprovements, upgrades and software necessary to support eligible broadband internal connections componentsEligible Internal Connections

As part of the E-rate Modernization Order, broadband distribution services and equipment that can be virtualized in the cloud are eligible.Eligible Internal Connections: Virtualized and Cloud-Based FunctionalitiesThis includes virtual or cloud based functionalities so long as they support eligible internal connection functions.For example, software virtualizing routing or switching in the cloud is eligible.Equipment and functionalities must still be competitively bid and the most cost-effective solution must be chosen.

Services provided by a third party:Operation Managementand/or monitoring of eligible broadband internal connection componentsManaged Internal Broadband Services (e.g. Managed Wi-Fi)The third party may manage the schools equipment or provide the equipment as part of a lease

Support for basic maintenance of eligible internal connections such as:Repair and upkeep of hardwareWire and cable maintenanceBasic tech supportConfiguration changesBasic Maintenance of Internal ConnectionsSupport for BMIC is limited to actual work performed under the contract.

Basic maintenance does NOT include:Services that maintain ineligible equipmentUpfront estimates that cover the full cost of every piece of eligible equipmentServices that enhance the utility of equipmentNetwork management services, including 24-hr network monitoringOn-site technical supportUnbundled warrantiesOperations and management of eligible equipment not supported as BMIC but eligible as Managed Internal Broadband ServicesBasic Maintenance of Internal ConnectionsEligible ChargesTaxes, surcharges and other similar reasonable chargesLease fees to rent or lease eligible componentsShipping chargesTrainingInstallation and configurationInstallation may be provided by a third party

Miscellaneous ChargesEach school receiving Category Two support between FY2015 and 2019 will have a five-year budget for Category Two products and services.Products and services ordered in excess of an entitys Category Two budget will not receive E-rate discounts.There is no budget for Category One services.

Each individual school has a pre-discount budget.School districts may not average their costs across multiple school budgets.

Category Two BudgetNon-instructional facilities (NIFs) including school NIFs with classrooms and administrative buildings do not have pre-discount budgets.If a NIF is essential for the effective transport of information to or within a school, the applicant must allocate the NIF costs to the entities benefiting from the service while the costs for ineligible services to a NIF should be allocated out.The pre-discount budget for a school is calculated by multiplying the total number of full or part-time students at the school by $150.A minimum of $9,200 if the school has fewer than 62 students.A school with 1,000 students would have a pre-discount budget of $150,000.

Category Two BudgetIf that school with 1,000 students has a discount rate, based on need, of 70%, it can received reimbursements up to $105,000.It can spend up to $150,000.But it will only get back $105,000.It will need to have money in its tech budget for the $45,000 difference.Applying the Discount Rate

The pre-discount budget calculation is for a five-year period, starting with the first funding year in which you receive Category Two support.Budget Time Period

However, you can apportion your pre-discount budget in a manner that best meets your needs.You could spend all of it in FY2016Spend 1/5 each yearor any other combination up to your total.

Any funding commitments made during the five year budget period reduces remaining budget.Overall budget changes year by year with changes in student count.Can go up or downDoes not impact funds already spentCan file Form 500 to restore funds not spent to the budget.Budget Changes

On the FCC Form 471, you indicate how funding should be allocated among entities sharing services.Your allocation can be:Straight-line (all entities share the cost equally)Proportional (based on student count of each entity)Specific (you specify each entitys share)

Cost Allocation

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