E-rate 2.0 Overview
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Transcript of E-rate 2.0 Overview
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-RATE OVERVIEW
What is E-Rate? What is Changing?
Presented by – Dan Rivera [PSC Group]– Kezia Gollapudi [Aruba Networks]
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
Aruba Networks
HQ: Sunnyvale, CA
Founded in February of 2002
$730M in Revenue
2,000 Employees
Leader in Unified Access & NAC
40,000 Customers World-wide
NASDAQ: ARUN
Comprehensive list of Industry Partners
Ecosystem • Channel • Distribution
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
Addressing the Needs of Digital Learning
SECURE & SIMPLE NETWORK ACCESSProvide differentiated access to network & enable BYOD
INTELLIGENT APPLICATION HANDLINGBring curriculum to life with interactive & multimedia apps
FLEXIBLE SOLUTIONSInvest in architecture & management right for your schools
SIMPLE CLASSROOM MANAGEMENT Empower teachers in digital classrooms
CLASSROOM-READY WI-FIBoost 1:1 learning on mobile devices
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
What is E-Rate?
Created in the Telecommunications Act of 1996
First funding year in 1998 (Year 1)
Funding years are July 1 through June 30 (FY2014: July 1, 2014 – June 30,
2015)
Provides subsidies of up to 90% for eligible services
Available to schools and libraries
Administered by the Universal Service Administration Company
(USAC)
Specifically, the Schools & Libraries Division (SLD)
Universal Service Program overseen by FCC
Original Funding Cap of $2.25B, adjusted for inflation
Currently at $2.4 Billion (Funding Year 2014)
Funding committed to Category 1, then (if funding remains) Category 2
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-Rate Eligible Services
CATEGORY 1 SERVICES (Formerly Priority 1)Telecommunications servicesTelecommunicationsInternet access services
CATEGORY 2 SERVICES (Formerly Priority 2)Broadband internal connectionsManaged internal broadband servicesBasic maintenance of eligible broadband internal connections
E-Rate Process
• ESL Released• Application
Window Announced
• Form 470/RFP Filed
Bids Submitted
• Bids Reviewed• Service Provider
Selected
Form 471 Filed • PIA Review
• FCDL Issued• Form 486 Filed
Service Starts
• Invoices Submitted (BEAR or SPI)
Funding Disbursed
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-Rate FY2015 Timeline
1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul
1 Jul
7 Aug
3 Sep
18 Sep
25 Oct
1 Jan
20 Mar
1 Apr
1 Jul
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order (E-rate 2.0) Highlights
Focus on Wi-Fi
Reorientation of Services
Category Two Budgets
Maximum amounts set
Eligible Services
Significant changes to the ESL
Discount MethodsCalculations / Classifications
Cost-Effective Purchases
Pricing Transparency
Preferred Master Contracts
Consortia Purchasing Encouraged
Streamlined Application
Process
Multi-year Form 470/471
Tech Plan Eliminated
Competitive Bid Exemptions
Electronic Filing Requirement
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-Rate Modernization Order (E-rate 2.0)
Change in Nomenclature Priority 1, now Category 1Priority 2, now Category 2
$2 Billion Additional Funds for FY2015 & FY2016
– Category 2 has annual target budget of $1B; Keyword “Target”
5-Year Category 2 Budget Maximum for Applicants
– Schools: $150/student ; Libraries: $2.30/sq.ft
– Rolling Budget, eliminates 2-in-5 rule
Flexible spending patterns
Subscription-based pricing
Fresh start in FY2015
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order (E-rate 2.0)
School # of Students
Pre-Discount Cat2 Budget
Post-Discount Cat2 Budget
Elementary School
500 500*150 = $75,000 $63,750
Middle School 750 750*150 = $112,500 $95,625
High School 1000 1000*150 = $150,000
$127,500
Cont. HS 50 50*150 = $9,200 (floor)
$7,820
District Office 0 $0 (NIFs don’t qualify) $0 (NIFs don’t qualify)
Category Two Budget ExampleSample School with a Discount Rate of 85%
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order (E-rate 2.0)
NEW DISCOUNTING
Category 2 maximum discount
reduced to 85%
FASTER RESPONSE
Target FCDL issue date of
Sept.1 of each funding year
FUNDING FLOOR
Establishes a funding floor of
$9,200 in Category 2 support
ADDS & REMOVES
(+) Managed internal
broadband eligible in FY2015
(Managed LAN & WLAN)*
(--) Voice & Video components
removed from Cat-2 in
FY2015 ESL
PRICING TRANSPARENCY
Item 21 embedded in Form
471* Per Draft ESL. Subject to change.
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order (E-rate 2.0)
PREFERRED MASTER CONTRACTSBureau will designate specific national contracts as “Preferred Master Contracts”Allows applicants to bypass the Form 470 filing requirementFor equipment purchases only; no labor services
EARLY INSTALLATIONS
Category 2 installations can begin on April 1 of
funding year
Eliminate RFP process
Choose pre-negotiated contracts
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
Aruba Product Eligibility*
Access Points Controllers Switches
ClearPassCentralAirwave**?
*Per Draft ESL. Subject to change. ** When purchased as a managed service.
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order
Voice services being phased down beginning FY201520-Point reduction each year. FY2015 max discount 70%, FY2016 max discount 50%, etc.
Legacy telephone features eliminatedPaging, Text, Directory Assistance, Inside wire maintenance
Email, Web Hosting, Voice Mail eliminated
Wireless Data Plans and Air Cards eligible in certain circumstances only
Only eligible when proven to be most cost-effective way to connect students
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
E-rate Modernization Order
Discount Method Modified Discounts are District-Wide Urban/Rural status now determined for entire school district or library system New rules for Discount Surveys
Document retention increased to 10-Years from last date of
install Contract signature requirements eased Appeals must be filed with USAC first Applicants can receive BEAR disbursements directly from
USAC Invoice deadline extensions will be automatically granted
one-time for 120-DaysNo other extensions will be granted
CONFIDENTIAL © Copyright 2014. Aruba Networks, Inc. All rights reserved
IMPORTANT LINKS
USAC E-Rate Modernization Resources
http://www.usac.org/sl/tools/modernization-order/default.aspx
FCC (E-Rate Specific) Website
http://www.fcc.gov/guides/universal-service-program-schools-and-libraries
E-Rate Modernization Order
http://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0723/FCC-14-99A1.pdf
Draft ESL
http://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0804/DA-14-1130A1.pdf
http://www.usac.org/about/tools/TrainingArchive/SeriesDetails.aspx?ID=150