E-Rate Modernization &
Montana’s Libraries
Montana Telecommunications Association
Annual Meeting
Jennie Stapp, State Librarian
August 6, 2014
State Library’s Mission
The Montana State Library is committed to strengthening
libraries and information services for all Montanans through
leadership, advocacy, and service.
Montana State Digital Library Division
Library
Information
Services
Statewide Library Resources
Talking Book Library
Library Development
Statewide Projects
State Library services require robust broadband
Libraries in Montana
Montana Libraries and E-rate
In FY 2013 61 or 71% of Montana public libraries submitted Erate applications and received $84.7K in funding commitments.
10% of the requests came from libraries serving populations of
25,000 or more
30% came from libraries serving populations of less than 2,000.
None of the individual requests was over $5,000
5% were over $2,500
79% of the funding requests were under $1,000
In FY 2014 54 Montana public libraries submitted E-rate
applications and requested $98K in funding commitments; to
date not all have been funded
A new national broadband standard for libraries?
E-Rate Modernization Goal 1.
Ensuring schools and libraries have affordable access to
sufficient high-speed broadband:
37. With respect to libraries, we initially adopt as a
bandwidth target the American Library Association’s
recommendation that all libraries that serve fewer than
50,000 people have broadband speeds of at least
100 Mbps and all libraries that serve 50,000 people
or more have broadband speeds of at
least 1 Gbps.
How do Montana libraries stack up?
E-Rate Modernization Order and Montana libraries
Beginning in FY 2015, E-rate funding will no longer be available
for services like telephone, voice over IP, and voicemail.
Discounts for phone services will be phased out by 20%/year
beginning in FY 2015. This program change will be evaluated
after FY16.
The phase out of POTS funding will hit Montana libraries hard
We estimate that approximately $54K was requested for POTS
E-Rate Modernization Order and Montana libraries
The FCC has identified $1B in FY 2015 and FY 2016 from savings
from reduced eligible services (POTS and others) and reserve
funds to support Category 2 applications for WiFi connectivity
and enhancement (capped at $2.30/sq foot for libraries)
• The $2.4B annual program allocation will still fund Category 1
applications
•
Historically, very few Priority 2 applications have been funded because
available funds are only adequate to cover most of the Priority 1
applications
• Only two Montana libraries report not providing WiFi
• Montana libraries almost never apply for Priority 2 (now
Category 2) funding
E-Rate Modernization Order and Montana libraries
In comments submitted to the FCC in response to the initial
NPRM, the Montana State Library suggested that the FCC
create a separate, additional amount of funding in the Erate program specifically directed to supporting the capital
investment costs of deploying high-capacity broadband to
libraries in areas like Montana where it is not currently
available.
The Modernization Order addresses broadband capacity to
the building in the Further Notice of Proposed Rule Making.
E-Rate Modernization Order and Montana libraries
E-Rate Modernization Goal 2.
Maximizing the cost-effectiveness of E-rate spending,
focusing on broadband and related services.
The FCC will work with USAC to prioritize review of
consortium applications.
Currently no Montana libraries apply for E-rate as a
consortium.
How can we encourage consortiums in Montana?
E-Rate Modernization Order and Montana libraries
E-Rate Modernization Goal 3.
Making the E-rate application and follow-up processes fast, simple and
efficient.
The need for technology plans for Category 2 services has been
eliminated.
The changes allow for a more stream-lined application process.
There will be no need to receive competitive bids if a library purchases
commercially available, business-class internet service from a provider
that offers bandwidth speeds of at least 100 Mbps downstream and 10
Mbps upstream for a pre-discount price of $3,600 or less annually?
It is not clear to us how this change applies to libraries that cannot
afford or do not have access to service speeds of 100 Mbps.
E-Rate Modernization Order and Montana libraries
E-Rate Modernization Goal 3.
Making the E-rate application and follow-up processes fast,
simple and efficient.
Beginning with funding year 2015, schools and libraries
located in rural areas, as defined by the most recent
decennial Census, will be considered rural for the purposes
of the E-rate program.
This change should benefit some libraries in Montana like
Belt and Seeley Lake which, under old rules were classified
as urban.
E-Rate Modernization Order and Montana libraries
The Further Notice of Proposed Rulemaking asks for public
input to build the record on five specific issues:
1. Meeting future funding needs
2. Ensuring that multi-year contracts are efficient
3. Standardizing the collection of National School Lunch
Program data
4. Encouraging consortia participation
5. Ensuring support for libraries is sufficient
Specifically, the Commission asks for data that shows the
gap between current connectivity levels in libraries and
schools and the capacity goals adopted in the Order.