E-rate 2.0: Understanding the
New Category 2 Services
October 29, 2014
Moderator:
Presenter:
Presenter:
Noelle Ellerson
Associate Executive
Director, Policy &
Advocacy
Aleck Johnson
Vice President
EdTech Strategies, LLC
Tim Laubach
Program Director,
Technology Services
Lancaster-Lebanon IU 13
Sponsored by:
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Background
o E-rate 2.0 Order (released 7/14/2014) replaced
Priority 1 and Priority 2 with Category 1 and
Category 2
o Historically Priority 2 included “Internal
Connections” and Basic Maintenance of Internal
Connections
o No funding for P2 available in FY2013 or FY2014
The New Category 2
o FCC has set a goal of $1B per year in C2 funding for
FY2015 and FY2016
o Category 2 eligible services include most of the
same services that were eligible in Priority 2
• Some devices related to video have been eliminated
o Category 2 now subject to budget caps
• Budget caps will add significant complexity to the
process
• Caps also may allow for funding to reach more
applicants
Category 2 vs. Priority 2
Before E-rate 2.0: Priority 2
Routers
UPSes
Switches
PBX
Wireless Controllers
PVBX
Wireless Access Points
Video Components
Wiring
Servers
Racks & Cabinets
Software*
Firewalls
Basic Maintenance*
Category 2 vs. Priority 2
Before E-rate 2.0: Category 2
Routers
UPSes
Switches
PBX
Wireless Controllers
PVBX
Wireless Access Points
Video Components
Wiring
Servers
Racks & Cabinets
Software*
Firewalls
Basic Maintenance*
Managed Internal Broadband
Services
Caching
Eligible Category 2
Services
o New Services
• Caching (service or equipment, including servers)
• Managed Internal Broadband Services
o Basic maintenance, Managed Internal Broadband
Services, and Caching become ineligible after 2016
unless FCC takes action
o Almost guaranteed* target of $1B+ in funding
each year for FY2015 and FY2016
• No guaranteed funding after FY2016
o Max. discount rate is 85%
The New Category 2:
Budget Caps
o New budget caps put in place (replacing old
2 in 5 rule)
• $150/student in prediscount costs over 5 years*
- Funding floor of $9,200 per entity (62 students)
• Prediscount
• Can spend in one year or over up to five years
• Can spend beyond cap
The New Category 2:
Budget Caps
o Budget caps applied per BEN (school)
• Cannot shift unspent funding from one school to
another
• Shared services can be allocated in tangible fashion
with reasonable results among entities sharing service
• Applicants will need to keep documentation of
allocation of funding
o Budget caps go away after FY2016 absent FCC
action (unless you rec’d funding in FY2015 or
FY2016)
The New Category 2:
Budget Caps Example
o School with 200 students has a pre-discount
budget of $150 * 200 = $30,000 over 5 years
o School spends $18,000 on new wireless access
points in FY2015
o Remaining budget of $12,000 can be spent in
some or all of FY2016, FY2017, FY2018, and
FY2019
• Could purchase additional equipment or maintenance
• Funding not guaranteed
The New Category 2:
Available Funding
o FCC goal of $1B per year in FY2015 and FY2016
• FCC has “saved” this funding from previous years so it
will be available
• This funding is in addition to the regular $2.4B cap
- Could be more than $1B available for C2 depending on C1
demand
• Unclear if funding will be available after FY2016
- Cuts in C1 will be major funding source
- AASA and other groups working hard for a permanent cap
increase
- Find more information at http://www.aasa.org/aasablog.aspx
Cloud Managed Wireless
Cloud Managed Wireless
Vendors Include:
o Meraki
o Aerohive
o Ruckus
o Cisco
o Aruba
o …and lots of others
Cloud Managed Wireless:
Site Survey Critical
Cloud Managed Wireless
Cloud Managed Wireless:
Advantages
Key Features and Benefits for Managed Wireless
• Quick Deployment
• Directory Authentication
• Scalability
• Step by Step Problem
Analysis
• 24hr Monitoring
• Rogue Detection
• Simple Management
• Client Location
• Reporting
• Managed via Web Browser
• Self Optimizing
• Self Healing
Cloud Managed Wireless:
IU 13’s Deployment
District Requirements
IU 13 Requirements
o Purchase compatible Cisco o Maintenance on all core
wireless systems
access points
• Wireless controllers
o Purchase SMARTnet for
• WCS upgrades
access points (optional)
• SMARTnet for core equip.
o Attend Wireless Control
• Secure Access Control Server
System Training
• All associated licensing
o Monitoring up/down for
controller and Aps
o Technical Support
Cloud Managed Wireless:
Costs (without E-rate)
Cost for District to Purchase Everything (Based on 100 APs)
o Cisco 5760 Controller
$25,000
o Redundant Power Supply
$500
o SMARTnet (for controller) $5,100/yr.
o 100 Cisco 3700 APs
$56,000
o Smartnet (for APs)
$6,000/yr.
o Cisco Prime Infrastructure $7,800
o SMARTnet for Cisco Prime $2,500
o Total First Year Cost
$102,900
o Yearly Maintenance
$11,100/yr.
Cloud Managed Wireless:
IU 13’s Deployment
Cost for IU 13 members deploying via IU 13:
$65 per access point per year
Cost for Access Points = $56,000
100 APs x $65 = $6,500/yr
Goals:
o Affordable
o Save districts money on hardware
o Bulk purchasing of access points
o Save districts’ time on management
Category 2 Summary
o Minor changes in eligible services
• Addition of “managed internal broadband services” and
caching services
o New budget caps
o Significant funding available in FY2015 and FY2016
o Possibility of funding beyond FY2016
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Archived Presentations
o 10/15/14– Introduction to E-rate 2.0
o 10/22/14– Understanding the New Category
1 Services
o 10/29/14 – Understanding the New
Category 2 Services
o Archives available on AASA website
Send questions to erate@aasa.org
Comments/Questions
Send questions to erate@aasa.org
Aleck Johnson
EdTech Strategies, LLC
ajohnson@edtechstrategies.net
Questions? Send them to
erate@aasa.org