Policy Committee Meeting

1
Policy Committee Meeting

• Fiscal Year 2004 Budget Considerations Dark
  Fiber
• November 13, 2002

2
Economics in One Lesson by Henry Hazlitt

• What are the long-term effects versus the
  short-term effects?
• What are the unintended consequences versus the
  intended consequences?
• What is the impact on the many versus the few?

3
Long term vs. Short term Effects

• Short term effects
• Internet2 Access for all Illinois Education
• Lower cost connectivity
• Lower cost equipment
• Higher reliability/more robust network
• Lower cost filtering solutions

4
Long term vs. Short term Effects

• Long term effects
• I2 Exposure and adoption of cutting edge
  pedagogy tools and learning models that allow
  Illinois education to be more effective and
  compete globally.
• Lower cost connectivity Allows the purchase of
  more bandwidth and the provision of connectivity
  and services that will prepare students to
  compete with their peers across the state and the
  nation.
• Lower cost equipment Allows reallocation of
  funds for training and modernization of internal
  networks and equipment.

5
Long term vs. Short term Effects

• Long term effects
• Higher reliability/More robust network Fosters
  reliance by education and use by other entities
  such as healthcare and law enforcement ultimately
  driving costs lower for everyone.
• Low cost filtering solutions Opens the door for
  K-12 schools without technical or economic
  resources to turn on filtering instantaneously
  and become eligible for federal e-rate funds
  bringing more federal dollars into the state.
• Approximately 44 of private and 56 of public
  schools received e-rate funding totaling almost
  170 million in fiscal year 2000.

6
Unintended Consequences vs. Intended Consequences

• Intended Consequences
• Greater access for education
• Increased opportunities for educational delivery
• Aggregate benefits of participation in a
  singular, large scale network

7
Unintended Consequences vs. Intended Consequences

• Unintended Consequences
• Dramatic changes in telecommunications price
  structures in Illinois
• Access to cutting edge applications and methods
• An advocacy role
• An expertise role
• Maintaining an environment that invites
  opportunity
• National leadership and recognition

8
The Impact on the Many vs. the Few

• Educational use and bandwidth demand continues to
  grow at rates of 30 to 433 on individual links.
• Aggregate growth in utilization network-wide is
  approximately 150.
• For the price of one 16 ounce soft drink per
  student, per month, the state has built the
  nations premier education network.
• Truly a case where the ICN expenditure is a
  win-win and the aggregate network reduces overall
  expenses statewide.

9
Benefit Bandwidth Provided For Primary
Constituents Does not include bandwidth purchased
above baseline allocation
Fiscal Year 2003, Based on current utilization
4,352 Connections 7,080 Mbps Provided
216 Connections 1,216 Mbps Provided
467 Connections 726 Mbps Provided
24 Connections 48 Mbps Provided


Summary
Direct ICN Expenditures 31.9
million
Cost Recovery 1.2 million
Estimated Constituent Expenditures
41.5 million (Access and equipment costs)
10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
4,223 K-12 Schools and Administrative Offices
16
277 Higher Education Institutions A recent study
revealed that the 55 private institutions save
approximately 1,319,000 per year including
bandwidth, connections, and equipment.
17
477 Libraries
18
25 Museums (some with multiple locations)
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
Dark Fiber Implementation

• With level funding and internal reallocations,
  the ICN can light up the primary ring
  (Chicago-Peoria-Springfield-Collinsville-Champaign
  -Chicago).
• We estimate that we will need an additional 1-2
  million to implement the Northwestern and Western
  legs in fiscal year 2004 (Chicago-DeKalb and
  Peoria-Macomb).
• As the circuits are turned up, staff estimates
  that continued cost recovery and other
  opportunities will allow implementation of other
  routes with minimal additional funding, if any.
• Dark fiber does not save todays dollars.
• Dark fiber provides increased capacity for the
  same money.