New Jersey

1
George Laskaris
New Jerseys College Universities integrating
technologies into instruction, research and
public service through an enhanced statewide
data/video network
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Current Challenges

• Overwhelming demand for access from our K-12
  community
• Efforts to reform New Jerseys Telecom taxes and
  fees and to create a Telecommunications Trust
  Fund for the education and library community
• Improving H.323 video and extending QoS across
  our campus networks

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Fostering K-20 Collaboration

• Established a grassroots K-20 advisory group that
  is actively developing joint projects intended to
  increase systemic collaboration between these
  communities
• Extended I2 SEGP access to a growing number of
  interested K-12 districts
• Looking at alternate organizational models to
  meet the requirements of a K-20 state education
  network
• Engaging in dialogue with the leadership and
  governance structures of both communities.

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Reform of Telecom Taxes and Fees

• Changes in the telecom industry have led to a
  major erosion in state revenues (Ford
  Foundation Grant)
• Taxation statutes are based on older models of
  telephony which treated service providers as
  distinct and separate entities with little
  overlap in the range of services provided
• Convergence in the industry has removed these
  boundaries and any service provider can
  technically and legally provide many or all
  telecom and cable communications services

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Some Examples

• Verizon, as the owner of local loop, is the only
  provider paying taxes for local exchange and
  regional toll even though the FCC has mandated
  that they provide their cable infrastructure to
  competitors like ATT Qwest, and Sprint.
• Wireless and Direct Broadcast Satellite pay no
  taxes
• DBS avoids all right-of-way and franchise fees
• Cable companies providing phone service not taxed
• Issues poorly understood by the legislature.

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Draft Reform Measures

• Would repeal current tax statues
• Impose an across the board 5 gross receipts tax
  for telecommunications and cable services and a
  2 franchise fee for use of public rights-of-way
• Would establish a Telecommunication Trust Fund
  for the use of advanced telecom services by New
  Jersey schools, colleges, libraries and public
  sector entities.

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Potential Impact from 12.5B Base

• Could generate 540M in new State Tax revenue
• Could generate about 230M for municipalities
• Could generate about 135M for a Telecom Trust
  Fund

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Issues and Current Status

• Legislative concerns over impact of tax changes
• Providers have learned to take advantage of the
  situation and are actively lobbying against the
  effort
• Current 4B deficit has re-opened discussions and
  consideration of reform measures
• Best political climate now exists for enactment

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Improving H.323 Video

• Efforts to change the two campus cultures of data
  and video into a converged collaborative one
• Providing leadership to extend QoS across our
  member campus networks
• Established a formal site certification process
  for video which identifies and helps to solve
  many sources of problems.
• Created a web-based clearinghouse for advice and
  troubleshooting information

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More Information

• http//www.njedge.net