K-20 Co-pay and ISP Basics

Valid for Fiscal Years 2010 & 2011(July 1, 2009 – June 30, 2011)

Capacity vs. Usage Based Co-pay

Capacity Based charges:– User charge based upon capacity provided

Usage Based charges:– User charge based upon usage of the capacity provided,

calculated at 95th %

ALL K-12 connections to K-20 are billedbased on USAGE, NOT capacity

0

2

4

6

8

10

6 am noon 6 pm midnight

Mbps

capacity (10 Mbps)

usage (2.5 Mbps)

Quarterly Calculation of 95th %

Usage is measured every 5 minutes:– 12 measurements per hour– 24 hours per day– 90 days per quarter– 12*24*90 = 25,920 measurements per quarter

Results are ordered from smallest to largest Top 1,296 results are discarded (5% of 25,920) 6,480 minutes (1,296*5 minutes) of peak traffic are

disregarded and not billed as part of 95th % 1,297th largest result is the 95th % usage amount 108 hours (6,480 minutes) of PEAK traffic

disregarded each quarter for billing purposes

Quarterly Costs: Co-pay

Established by legislatively-approved budget every two years

Co-pay is amount needed from connected institutions after state subsidy and E-rate reimbursements

Much lower than actual cost to provide service Current data connection co-pay

– Based on quarterly utilization at the 95th percentile

0.00 – 1.00 Mbps = $ 4001.01 – 6.00 Mbps = $ 400/Mbps> 6 Mbps = $2,400 (6 * $400) + $60/Mbps for use over 6 Mbps

Quarterly Co-pay for Data Connections (based on usage at the 95th percentile)

Internet Service Provider (ISP) Fees

K-20 is statewide INTRA-net K-20 Network does not directly procure INTER-net

access for customers OSPI contracts for ISP on behalf of connected K-12

sites No state subsidy for ISP No legislatively set co-pay

– Estimates provided by OSPI at beginning of year– Actual cost determined at end of year, based on actual, total

cost of service– Includes E-rate discounts

ISP Fee Basics (cont’d)

University of Washington invoices OSPI for ISP fees– Rate based on aggregate K-20 sector usage– Greater aggregate usage means lower per Mbps cost for

individual sites

ISP fees per Megabit have declined dramatically over the years – 2000 – 2001: OSPI spent over $623,000 on ISP.

Highest quarterly usage that year was 110 Mbps

– 2010 – 2011: OSPI estimates ISP to total less than $225,000. Current quarterly usage is over 2.5 Gigabits!

K-12 Costs for K-20 Connections2010 – 2011 MAX COST Summary

For sites with usage less than 6 Mbps:– $430/Mbps

($400/Mbps Co-pay + $30/Mbps ISP)

For sites with usage greater than 6 Mbps:– $2,580 for first 6 Mbps

($2,400 Co-pay + $180 ISP)

– $90/Mbps for any usage beyond 6 Mbps($60/Mbps Co-pay + $30/Mbps ISP)