K20 Copay and ISP Basics

1
K-20 Co-pay and ISP Basics

• Valid for Fiscal Years 2008 2009
• (July 1, 2007 June 30, 2009)

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CO-PAY
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K-20 Co-Pay Basic Principles

• Co-pay for the same services is to be independent
  of geographic location
• Co-pay must compete with similar services in
  low-cost areas
• Co-pay must be independent of type of transport
• Co-pay must encourage proper management of
  resources

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K-20 Co-pay Model
377 sites
Data - co-pay billed on usage
189 sites
ISDN Video co-pay 625/quarter/T1
32 sites
Data Branch to Main Campus co-pay
625/quarter/T1
48 sites
Dedicated Circuit co-pay 1,250/quarter/T1
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Co-pay Invoicing

• Co-pay invoices are for transport services
• Co-pay invoiced quarterly
• Baccalaureate invoices sent directly to
  institutions
• Other entities invoiced at the sector level
• State Board for Community and Technical Colleges
• Office of the Superintendent of Public
  Instruction
• Washington State Library

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Capacity vs. Usage Based Co-pay

• Capacity Based
• User charge based upon capacity provided
• Usage Based
• User charge based upon usage of the capacity
  provided, calculated at 95th

capacity (10 Mbps)
Mbps
usage (2.5 Mbps)
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Quarterly Co-pay Costs

• ISDN video connection co-pay
• 625 per T1 per quarter (2,500 annually)
• Data connection co-pay
• Based on quarterly utilization (measured at 95th
  percentile)
• 0.00 1.00 Mbps 400
• 1.01 6.00 Mbps 400/Mbps
• gt 6 Mbps 2,400 60/Mbps over 6

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Quarterly Co-pay for Data Connections (based on
usage)
15,000
12,500
previous co-pay
10,000
Annual Fee
7,500
5,000
new co-pay for 07-09
2,500
0
0.0
1.5
3.0
4.5
6.0
7.5
9.0
10.5
12.0
13.5
15.0
95th Percentile Usage (Mbps)
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Quarterly Calculation of 95th

• Usage is measured every 5 minutes
• 12 measurements per hour
• 24 hours per day
• 90 days per quarter
• 122490 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 (1,2965 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

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INTERNET SERVICE PROVIDER FEES
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ISP Fee Basics

• K-20 is statewide INTRA-net
• K-20 Network does not directly procure INTER-net
  access for customers
• Connected institutions/sectors contract directly
  with Pacific Northwest GigaPOP for Internet
  Service
• SBCTC, OSPI, and WSL contract for ISP at the
  sector level
• Baccalaureates have individual contracts
• No state subsidy for ISP

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ISP Fee Basics (contd)

• GigaPOP invoices for ISP fees quarterly
• 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 steadily since
  K-20 began
• In 1999, ISP cost 1,768/Mbps/quarter
• In 2006, ISP cost less than 200/Mbps/quarter

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Internet Traffic and Cost
ISP cost per Mbps
ISP traffic