[Hospital_members] E-rate and the Kan-ed Broadband Subsidy Program

[Christina Madden]

Greetings!

This information is provided to you so that you may properly fill out
your e-rate form 471 form to account for the Kan-ed broadband subsidy. 
The information provided through this message should allow you to fill
out your Form 471.  You will apply online, as in past years, for the
broadband subsidy.  A URL to apply online will be sent to you in the
next few weeks and will be available on the Kan-ed website at
www.kan-ed.org on February 1, 2005.

With a limited amount of funds, and the belief that all members should
have high-speed Internet access, Kan-ed will run a broadband subsidy
program for FY2006 (July 1, 2005 through June 30th, 2006).  The online
application window will be February 1 through April 1, 2005.

Kan-ed will request that members take advantage of federal and other
state funding programs.  The federal e-rate program can save libraries
and schools significant internet costs.  

Kan-ed will reimburse carrier/ISP directly for commercial internet
costs estimated at $250/month for up to one T-1 internet line per Kan-ed
member. 

In the event that an institution uses speeds less than T-1, Kan-ed will
reimburse the carrier/ISP for actual costs up to $250 per month, per
Kan-ed member.

Kan-ed will reimburse the carrier/ISP on a monthly, quarterly, or
semi-annual basis (to be determined by Kan-ed), and the carrier/ISP will
sign a memorandum of understanding with Kan-ed.  The carrier/ISP should
agree to incremental long-run pricing for the Kan-ed member for this
program and for enhanced connectivity to connect to the Kan-ed network
for applications and services on the Kan-ed network.  The credit to the
customer should be shown as "Kan-ed Internet Subsidy" on the
customer's billing statement.  

The Kan-ed broadband subsidy program will be available for Kan-ed K-12,
library and hospital members.  Higher Education Kan-ed members will
participate in the Strategic Plan for Higher Education Connectivity on
March 15th, 2005 (information forthcoming), which will identify network
connectivity and other needs through a strategic planning process, and
will not be eligible for this specific broadband subsidy program.

Library branches and school district buildings will not be
differentiated.  A member is defined in statute as the "library" or
"school district", not as a branch or school building.  Kan-ed will
run a separate parity program to address library branch and K-12
segregated building issues (within a district) as warranted.  The parity
program will be developed over the next several months, with funding
allocated for the same period as the broadband subsidy program (July 1,
2005 through June 30th, 2006).  Kan-ed staff and e-rate consultants will
work with members on any e-rate implications around the parity program,
since its development will be after the form 471 window.

A library or school district with remote buildings (without a LAN) CAN
aggregate their branches and buildings I1 costs to maximize the
$250/monthly rate.  In no cases shall the reimbursement be more than
$250/mo per member (for example, $50/mo. cable modem in one building,
$50/mo. DSL in another building*aggregated to $100 per month for Kan-ed
under the member application).

Example of Subsidy Implementation:
						Example 1	Example
2	Example 3	Example 4

Kan-ed Member Internet Fees (per
month):		$800		$125		$2000		$2000

Kan-ed Subsidy Reduction per month (Paid to carrier and 
reflected on Kan-ed member monthly
bill)		-$250		-125		-250		$-250

Federal E-rate discount (65%)			($550  x .65%)	  
$0		($1750 x .65%)	Not eligible
						-$357.50				-$1137.50
	
Cost to member for internet access per month		$192.50		
  $0		$612.50		$1750

What you should do now:
If you have already filed your form 471, you will need to update the
SLD by sending them a letter to decrease the amount of your funding
request by the Kan-ed internet subsidy amount.  If you have questions
about this, you can contact the Kan-ed e-rate consultant, Don Dietrich,
at 314-961-3211.  If you have not submitted your e-rate form 471, make
sure to subtract the Kan-ed subsidy amount from the bid cost that your
provider gives you.  For example, if you receive a bid/quote from vendor
x for internet access for $500 a month, subtract the $250 a month Kan-ed
subsidy and the amount you will request on your form 471 to the SLD is
$250 a month.  The key is to subtract the amount of Kan-ed subsidy from
your contracted providers cost.  

Please check the Kan-ed web site on February 1 for the URL to apply for
your Kan-ed Broadband subsidy. 

Chrisy Madden
Portal & Membership Services Coordinator
1000 SW Jackson, Suite 520
Topeka KS  66612
785-296-2238
www.kan-ed.org