Frequently Asked Questions about CALNET 2 as it relates to E-rate
 

To view the live session on CALNET 2 and E-rate items (i.e. Tech Plans, etc..), please click on the following link and review the FAQs below.
Webcast of CALNET 2 Session  

 

These answers are provided by AT&T
For specific details, please contact your AT&T account manager.

 Questions regarding the 3 Signatures and DATE:

 

Q1: If the E-Rate applicant uses a CALNET 2 ATO as the contract for filing the Form 471 and there are three (3) signatures on the ATO, is the date of the first signature or the last signature used as the contract date?

 

A1: The Contract Award Date is the last signature, which is the date State of CA DTS signs the contract.  

 

Q2: Another question that has to do with ATO and signature dates:  Which one do they use?  Is it the first signature on the ATO, the last signature on the ATO, or the date of the CALNET 2 contract, January 30, 2007?

 

A2:  The Contract Award Date is the last signature, which is the date State of CA DTS signs the contract.  The applicant is not a party of the CALNET 2 contract until entering into an agreement through the ATO, therefore, the CALNET 2 contract date of January 30, 2007 is not a valid date for the applicant to use. The applicant’s ATO must have the three (3) required signatures in order to be considered fully executed.

 

Q3: We are getting nowhere getting our local account team to get us over the ATO(s), and we could file our Form 471 today, if we had the three signatures. What can we do to get this matter expedited?

 

A3: Escalate to Sales Manager.

 

Q4: What happens if we cannot get all three signatures on the ATO(s) by February 7^th?

 

A4: AT&T will do everything they can to get them processed. If you have not requested your ATO yet, do it today.

 

Q5: Can we file our Form 471 after obtaining the second signature (from service provider) on the ATO?

 

A5: It is both AT&T & the State’s position that the contract is not fully executed until the State signs the ATO.

 

Q6: How will we be advised that DGS has signed our ATO?

 

A6: AT&T account team will be notified once ATO has all 3 signatures, after DTS (3^rd & final signature) has countersigned ATO.  You may contact your Account Team to inquire about status of signatures.   

 

 QUESTIONS regarding SOLE SOURCING – EXCLUSIVITY

 

Q7: I understand there is some exclusivity wording in the CALNET 2 contract. If I sign a CALNET 2 contract, will I be forced to purchase all my telecom services from ATT? Could you please explain?

 

A7: The CALNET 2 ATO states:  “With respect to services ordered under this ATO, Non-State Agency hereby agrees to obtain such services exclusively through the Contract and this ATO for a two (2) year commitment period starting from the effective date of the ATO.”

Q8: Explain the exclusivity provision, especially as it applies to districts who have a non-ATT vendor for GB fiber, but still need their T-1 lines for PRIs.

A8: This would have to be answered on an individual case-by-case basis.

Q9: Will exceptions that are decided on a case-by-case basis be a part of the ATO?

A9: Exceptions will be memorialized in writing.

Q10: The state had originally said that you only had to keep your originally contracted services for two (2) years, and after that time you could cancel without penalty. Is that correct?

 

A10:  The CALNET 2 ATO states: 

“With respect to services ordered under this ATO, non-state agency hereby agrees to obtain such services exclusively through the Contract and this ATO for a two (2) year commitment period starting from the Service Start Date of the ATO, provided that such commitment does not extend beyond the term of the contract, including any extension periods. Any Services ordered subsequent to the end of the two (2) year commitment period shall not extend the two (2) year commitment period.

 

If non-state agency elects to terminate service prior to completion of the two (2) year commitment period, a termination charge may apply. The termination charge may not exceed sixty-five percent (65%) of the non-state agency’s average monthly bill for the disconnected service(s), multiplied by the number of full months remaining in the two (2) year commitment period. If service(s) are terminated after the two (2) year commitment period, no termination liability shall apply.”

 

Q11: If the above is true, is it for only the originally contracted lines/circuits? (i.e., if there were 10 POTs lines and 1 T-1 line at the time the ATO was signed, can the school/library contract with another provider for additional POTS lines or T-1 lines)?

 

A11: During the two (2) year commitment period – no.

 

Q12: I noticed that the ATO specifies penalties for terminating services before the completion of the two (2) year commitment period. What happens if you have a school close or some other reason necessitates that you have to terminate services, do you still have to pay a penalty?

 

A12: This will be addressed on a case-by-case basis.   Your AT&T Account Manager will assist you with this.

 

 TIMING OF ATO (CALNET – July 1, December 4)

 

Q13: If I sign a CALNET 2 contract in this E-rate Cycle, does it have to start on July 1, or can I have it start on December 4, 2008, the day after my CALNET I contract expires:

 

A13: Applicants can enter either date (July 1, 2008 or December 4, 2008) on their Form 471 application as the start date. We have 2 new ATOs developed especially for E-rate. One starts July 1, 2008; the other starts December 4, 2008.

 

Provide scenarios.

 

Q14: Can you have some categories of service on CALNET 2 start July 1, 2008 and some start at a later date?

 

A14: This can be done by MSA – for example, MSA 2 could start July 1, 2008 and MSA 1 could start 12/4/08, since MSA 2 services were not available under CALNET I.

 

Q15: Can we put a specific start date for the CALNET 2 contract other than July 1, 2008? Can CALNET 2 start when CALNET 1 ends, December 3, 2008? Do you then need to file two FRN requests for the same services; one for the CALNET 1, covering July 1, 2008-December 3, 2008; and a second FRN for CALNET 2, covering December 4, 2008 – June 30, 2009?

 

A15: There are only two choices for the CALNET 2 effective date:  either 7/1/2008 or 12/4/2008.  Based on the second part of the question, our understanding is that you would only need two FRNs if you were not moving all of the service to CALNET 2 on 7/1/2008.  Any final decision on how you file for E-rate Discounts is up to you. 

 

Q16: We are being told that to start a CALNET 2 contract on July 1, 2008 when a CALNET contract is in place that runs through December 2008 that a district must take all services on the current CALNET contract for the entire term of the CALNET 2 contract or pay significant penalties.  Must all services transfer to the new contract to avoid penalties in this scenario?

 

A16: A customer can have services on both CALNET contracts (CALNET 1 & CALNET 2)  but must adhere to terms and conditions of each CALNET contract, including any termination liability for the duration of either contract. 

 

 TRANSFER FROM CALNET 1 TO CALNET 2

Q17: The state’s Form 470 #267290000544188 appears to be an extension of the old CALNET contract that was posted because the state was behind schedule in awarding CALNET 2. The state did not post a subsequent Form 470 to cover the actual bidding on CALNET 2.  Do you know whether USAC/SLD will permit us to cite the state’s Form 470 when we apply for funding?

A17: The state’s Form 470 #267290000544188 was posted in conjunction with the bidding and award of the CALNET 2. It is in no way related to CALNET 1. The SLD has approved the use of this Form 470 as the establishing Form 470 for the CALNET 2 Contract. (See CALNET Grid from SLD @ http://www.k12hsn.org/files/erate/CDE/CALNET_Grid_1.pdf) You can use the State’s Form 470, citing the CALNET 2 as the awarded contract, or you can post your own Form 470 and use the CALNET 2 contract as a response to your posted Form 470.

Note: ISP services and Basic Maintenance were not listed on the State Form 470

Q18: I can't seem to find out who to contact at AT&T and Verizon to help me with the state’s Form 470s for voice, long distance and cellular. Do I have to initiate something to get these "ATO's" going? Or are the Telco’s supposed to start these for me? I would like a little more explanation of how the State Form 470 process fits into the whole E-Rate calendar, and who is supposed to do what.

 

A18: See response A17 – Be sure to note that ISP services were not listed on the State 470; an applicant wishing to purchase ISP on CALNET 2 would need to post their own 470 at any rate. For help, see the AT&T website or call the Business Office. The ATO should be requested from the Account Team after filing their own Form 470 or deciding to use the state’s form.  Also, please note that “cellular” service is not offered under CALNET 2 by either AT&T or Verizon.

Q19: Under CALNET 2, how much of the service category must a district maintain to still get CALNET 2 rates? Under CALNET 1 it was 50%.

A19: There is no percentage.  Customers must adhere to exclusivity clauses in the CALNET 2 ATO, as follows:   

“With respect to services ordered under this ATO, non-state agency hereby agrees to obtain such services exclusively through the Contract and this ATO for a two (2) year commitment period starting from the Service Start Date of the ATO, provided that such commitment does not extend beyond the term of the contract, including any extension periods.

 

If non-state agency elects to terminate service prior to completion of the two (2) year commitment period, a termination charge may apply. The termination charge may not exceed sixty-five percent (65%) of the non-state agency’s average monthly bill for the disconnected service(s), multiplied by the number of full months remaining in the two (2) year commitment period. If service(s) are terminated after the two (2) year commitment period, no termination liability shall apply.”

 

Q20: I understand in the CALNET 1 contract, AT&T was not able to charge finance charges. Is that true with CALNET 2 as well?

 

A20: The CALNET 2 ATO states:  “Non-state customers shall be subject to a late payment fee if payment is issued after the late payment date. The late payment date shall be forty-five (45) calendar days after receipt of an undisputed invoice. The amount of the late payment fee shall be as set forth in Government Code Sections 927.6 and 927.7.”

 

Q21: Switching to CALNET 2 also involves also moving to a new billing system. I understand the billing numbers will be changing slightly. Will this require a shift in what happens when the FUSF Center sends out grids each year?

 

A21: The only part of the Bill Telephone Number that is changing is the 3-digit customer code (the last 3 digits of the customer’s BTN).

·      If GRID paperwork is returned by applicant before August 30, 2008, GRID paperwork should be reviewed and returned “Business as Usual”.

·      If GRID paperwork is returned by applicant after applicant has been converted to CALNET 2 billing system, customer should return the GRID paperwork with the updated customer code information on the GRIDs.

·      If applicant has converted over to CALNET 2 billing system, but submits GRID paperwork without updating the customer code, AT&T will resubmit the GRIDs with updated CALNET 2 customer code information, on behalf of our CALNET 2 customers, to our systems for processing for E-rate discounts.

 

Q22: What is the correct step-by-step way to go from CALNET 1 to CALNET2?

 

A22: A non-state agency simply signs the CALNET 2 MSA 1or 2 ATO with an effective date that is either July 1, 2008 (supersedes CALNET I) or December 4, 2008 to start upon expiration of their CALNET I ATO.

 

Q23: CALNET 1 had a wonderful website.  What is the web resource for CALNET 2?

 

A23: http://www.dts.ca.gov/stnd/calnet-II/calnetII.asp

 

Q24: Can you sign CALNET 2 and still get tariff rate services in the same category as those covered by CALNET 2?

 

A24:  This will be addressed on a case-by-case basis. Your AT&T Account Manager will assist you with this.

 

Q25: Can you reduce the number of services when you transition to CALNET 2, i.e. if you had 50 T-1s on CALNET I, but only want to carry over 35 onto CALNET 2?

 

A25: Yes, as long as reducing number of lines/services does not interfere with customer’s sole source contractual obligations under either CALNET 1 or 2. 

 

Q26: (Question 30) Under CALNET 2 do high speed fiber connections fall under the Data Transmission Services or under Gigabit Ethernet Metropolitan Area Network (MAN)?

 

A26:  Gigabit Ethernet Metropolitan Area Network (MAN), MSA 1.

 

Q27: Is there a MSA for voice wireless?

 

A27: Not in the CALNET 2 contract.

 

Q28.  We’ll be switching to CALNET 2 on many services on July 1, 2008.  Our Year 10 E-Rate is currently still in PIA.  What happens with transition to ACUS (clearing legacy balance?) if FCDL comes close to end of Year 10?

A28: 

• If GRID paperwork is returned by applicant before August 30, 2008, GRID paperwork should be reviewed and returned “Business as Usual”.

·      If GRID paperwork is returned by applicant after applicant has been converted to CALNET 2 billing system, customer should return the GRID paperwork with the updated customer code information on the GRIDs.

·      If applicant has converted over to CALNET 2 billing system, but submits GRID paperwork without updating the customer code, AT&T will resubmit the GRIDs with updated CALNET 2 customer code information, on behalf of our CALNET 2 customers, to our systems for processing for E-rate discounts.

 

 Other CALNET 2/E-rate Questions

 

Q29: It appears our account team listed services on our ATO(s) that we don’t currently have and we don’t want. What do we need to do to fix the ATO(s)?

 

A29: Has the ATO been signed and processed already?  If so, the ATO is a legal and binding document.  Any proposed changes would need to be reviewed on an individual case basis.  If not, services would only apply if they are initialed. Don’t initial those services that you don’t want.  We also recommend that you cross out the X in the “Services Selected” column and initial just to the left of their correction on the Attachment 1 page. 

 

Q30: With the new contract there will be new commitments?  Is it true that we will only be held to the contract for the first term of two (2) years?  Will we have to do another Form 470, if we want to extend the first two years?  Will we be able to sign the contract and pick the services we want now along with potential services for later?  Will we have to file a new Form 470 each time we add services?

 

A30: The CALNET 2 contract is a five (5) year contract with a two year initial commitment starting from the Service Start Date identified in the ATO.  At the end of the two year initial commitment, customers can terminate their CALNET 2 ATO with no penalty.  Customers wishing to use CALNET 2 contract, should enter contract expiration date of “1/29/2012” on their Form 471, Block 5, Question 20B.

 

Customers wishing to continue with their ATO after the initial 2 year term are not required to “extend their ATO” at the end of the two year term.  Customers will not have to issue another Form 470 if they enter 1/29/2012 as the contract expiration date on their Form 471, Block 5, Question 20B as described in previous paragraph. 

 

Customers will be able to sign CALNET 2 ATO contract and pick services wanted now along with potential services for later; however, once selected, the customer is obligated to obtain all such services exclusively from AT&T under CALNET 2. 

 

Q31: New services desired after initial ATO/470 – Will that require a new ATO for the specific new service, or an entirely new ATO?

 

A31: Customer will have to sign new ATO & either reference their own Form 470 or reference State’s Form 470.

                                                             

Q32: Does the State Form 470 allow for future extensions?

 

A32: No, you must issue your own Form 470. 

 

Q33: Can we request an ATO prior to the end of the 28-day Form 470 period, in order to review and consider the options?

 

A33: If you are submitting your own Form 470, wait until the 28 day period is completed before requesting ATO. If you are submitting using the state’s Form 470, submit request now.

 

Q34: Do we have to work with an ATO original document as opposed to PDF file copy or faxed copy?

 

A34: You should start your process early enough to ensure that you can work with original document.

 

Q35: Will the FUSF Center be able to send out the Year-11 grids out by July 1, 2008 so these can be filled out and returned sooner?

 

A35: Steps have been taken to get the GRID paperwork earlier each year.

 

Q36: I understand there may be two AT&T SPINs as a part of MSA 2 from what we are hearing from our AT&T account team but they haven’t helped us know how much money goes to each SPIN.

 

A36: CALNET 2 local toll charges and long distance charges are delivered via AT&T under MSA 2 & will require customers to assign AT&T SPIN for those services as shown below. 

 

MSA 1

CALNET 2 Local Usage = Pac Bell SPIN # 143002665

(this category is for intralata local calls, sometimes referred to as ZUM 1, 2 & 3 calls

 

MSA 2

• CALNET 2 Local Toll Usage = AT&T SPIN # 143001192

(this is for intralata toll calls that go beyond ZUM 3)

 

• CALNET 2 Long Distance Usage = AT&T SPIN # 143001192

 

 

Customer can identify the dollar amounts for AT&T local usage, local toll & long distance services by reviewing their existing bills.   

• CALNET 1 customers currently using SBC Long Distance for their long distance services today, can find local toll + long distance charges on their SBC Long Distance bill. 
• CALNET 1 customers currently using Verizon for long distance services today, can find local toll + long distance charges on their Verizon Long Distance bill.

 

AT&T account teams can assist customers to identify costs by SPIN, if you need additional assistance. 

Here is a listing of AT&T SPIN#s: http://www.k12hsn.org/files/erate/ATT_Spins_2008.pdf

 

Q37: The AT&T CALNET 2 contract (last page) appears to have a "notation" that indicates "there may be a per line charge for all lines that migrate to a new plan/service provider"? We asked AT&T to confirm that there will be NO charges. Is there a charge for this?

 

A37:  There are no charges to go from another Long Distance carrier to CALNET 2 MSA 2.   

 

Q38. Does the 28 days apply if you are not filing any of your own 470's? We're only using state 470 (or extending multi-year 471s).

 

A38: No, the 28 days has expired for state Form 470, so if using that form, you can take ATO steps now.

 

Q39: If you choose to include a Selected Service category on the ATO of CALNET 2, do you have to order all services under that category from CALNET 2?

 

A39: Yes.

 

Q40: Can you order AT&T long distance service via CALNET 2 on local lines provided by Verizon?

 

A40: Yes.

 

 TECH PLAN QUESTIONS 

 

Q41:   I have just submitted our District's new Technology Use Plan, and I was wondering about the supplemental budget analysis required for E-Rate.  Where and when is this analysis filed? Is the budget analysis supposed to assure that there is adequate funding for the entire technology plan, or just for the pieces that relate to the E-Ratable items in it?  In our case, the only E-Rate things we are doing (besides voice telephone services) are for existing T-1 data lines and new OptEMan high-speed data lines.  I am assuming that I just need to describe the infrastructure, hardware, software, etc. that relate to these data lines. 

A41: 

Q: Where and when is this analysis filed?

A. The supplemental budget analysis is required only for approved EETT technology plans. It is maintained ***Locally*** with the local educational agency's approved EETT technology plan at the point in time a local educational agency decides to use an approved EETT technology plan for E-rate purposes.

Q. Is the budget analysis supposed to assure that there is adequate funding for the entire technology plan?

A. Yes. Assuring that there is adequate funding for the entire technology plan is a primary purpose of the supplemental budget analysis. The supplemental budget analysis shows that the local educational agency has the necessary resources to utilize e-rate discounts and secure the financial resources it will need to implement the entire technology plan including those portions of the technology plan not covered by e-rate discounts.

Source of information: Paragraph 59 of the Schools and Libraries Fifth Order, states that the Universal Service Administrative Company (USAC) has:
"been treating technology plans approved under the [United States] Department of Education's Enhancing Education Through Technology (EETT) as acceptable technology plans subject to one qualification. Consistent with the [Federal Communications] Commission requirement that program applicants demonstrate that they have the necessary resources required to utilize e-rate discounts, USAC has required that the EETT technology plans be supplemented by an analysis that indicates that the applicant is aware of and will be able to secure the financial resources it will need to achieve its technology aims, including technology training, software, and other elements outside the coverage of the Commission's support program."

  

Q42:  An applicant cites the state contract Form 470 as the establishing one for them for telecom.  SLD says, given that situation, the technology plan now has to be written before filing Form 471.  The word "written" is still causing problems.  

 

A42: For USAC's definition of "WRITTEN" see slide 13 "Important Terminology" at: http://www.usac.org/_res/documents/sl/ppt/Approving-Technology-Plans.ppt

USAC says: Written (same as created): When the tech plan first contains the five required elements in sufficient detail to support the services requested on the associated Form 470. The technology plan does not have to be received by the approving agency in order to be considered “WRITTEN”.