
					Rod R. Blagojevich, Governor

Cost Recovery Information for Fiscal Year 2004 (July 1, 2003 - June 30, 2004)

The ICN Cost Recovery Policy has been revised after an annual review. The revisions were approved at the November 13, 2002 meeting of the ICN Policy Committee. The revisions are effective July 1, 2003 (Fiscal Year 2004) unless otherwise noted.

If you have further questions please contact the ICN at 877.844.2724 or e-mail us at for answers within one workday. Information in this section is subject to change without notice in accordance with ICN policy and funding.

	FY 2004 Cost Recovery Pricing Structure
	Primary and Non-primary constituents
	Primary Constituent Information
	Directly Connected Non-Primary Constituent Information
	Indirectly Connected Non-Primary Constituent Information
	ICN Certified Content Partner Program
	ICN Services

Primary Constituents and Non-primary constituents

Primary constituents are K-12 schools (public and private), institutions of higher education, libraries and museums.
Non-Primary constituents are all others including State agencies, units of local government and other local entities that provide services to Illinois citizens.

Primary Constituent Information

Each primary constituent receives a baseline amount of transit across the network for which there is no charge. Transit above the baseline is charged at a rate based on actual costs (determined annually). The FY2004 rate varies according to the quantity of bandwidth purchased. The chart below shows bandwidth pricing for FY2004. Primary constituents with a single T1 connection or less are completely within their baseline. Institutions with larger access connections may request to have the throughput of their connection limited to their institution's baseline or whatever amount of bandwidth they determine to be appropriate based on their institutional priorities and budget.

Public and private K-12 institution baseline bandwidth is determined by published enrollment figures provided by the Illinois State Board of Education.
Public and private higher education baseline bandwidth is determined by published student FTE (Full Time Equivalent) headcount provided by the Illinois Board of Higher Education and the Illinois Community College Board.
Public libraries and public museums baseline bandwidth is set at 1.5 Mbps plus consideration for additional bandwidth or colocation services as a Certified Content Partner.

Baseline Transit Amounts for Public Primary Constituent Direct Connections
Institution(s) (FTE) Headcount	ICN Provided Base Bandwidth/Transit (Mbps)	Total Bandwidth
Less than 1,000	1.5 Mbps	1.5 Mbps
1,000 - 13,999	1.5 Mbps per 1,000 Enrollment or FTE	3 - 21 Mbps
14,000 - 22,000	1.0 Mbps per 1,000 Enrollment or FTE	22 - 30 Mbps
Additional Bandwidth Costs	Purchase at FY2004 Cost Recovery Rates listed below	Over 30 Mbps

Fiscal Year 2004 Bandwidth Pricing
Bandwidth Provided	Fiscal Year 2004 Cost per Mbps
Less than 10 Mbps	$250
10 - 24 Mbps	$225
25 - 44 Mbps	$200
45 - 99 Mbps	$175
100 Mbps and above	$150

Each constituent pays for the circuit to connect to the network (as is the case in connecting to any Internet Service Provider). Each constituent also pays for the equipment required at their location to maintain the connection. Port charges may also apply for additional circuits above those required to provide baseline bandwidth.

Bills are sent by the ICN on a monthly basis. Advance notice of changes in baseline bandwidth and cost per megabit per month will be given to all constituents no later than November of each year to allow sufficient time to plan and budget.

Directly Connected Non-Primary Constituent Information

Non-primary constituents will pay for all transit at rates listed in the Fiscal Year 2004 Bandwidth Pricing table above per month in addition to their access circuit cost and in some cases port fees may apply. In locations where the ICN provides subsidized access to the network, non-primary constituents will also be charged a proportionate share of these costs. The port charge for a T1 is $55 month effective January 1, 2003.

Non-primary constituents will enter into a Service Agreement and will be limited by mutual agreement to a specific amount of bandwidth to meet particular needs. Charges for transit are separate from access circuit costs, which represent an agreement between the constituent and the local telecommunications provider.

Volume discounts are now available to ICN non-primary constituents.

Bills are sent by the ICN on a monthly basis.

Indirectly Connected Non-Primary Constituent Information

Indirectly connected non-primary constituents (sites connected by aggregate networks, connected to the ICN through another entity, or etc.) will be charged the current Fiscal Year 2004 Bandwidth Pricing listed in the table above or a minimum flat fee of $187.50. The flat fee of $187.50 will be applied in situations where the constituent requires less bandwidth than is currently available, but it is not possible for the ICN to apply a rate limit. The fee is based on the bandwidth of ½ T1, which is a reasonable estimate of the bandwidth most constituents use.

If the ICN is able to rate limit a non-primary constituent connection, the ICN will apply the rate limit requested by the constituent, and will apply all applicable cost recovery charges based on the Fiscal Year 2004 Bandwidth Pricing listed in the table above. Port charges will be assessed where applicable. When an indirectly connected non-primary constituent requests ICN management of their router for the purpose of applying rate limits, the ICN will provide management, where technically possible, at the current rate of $20 per month.

When a primary constituent connection provides the direct connection to ICN, the ICN provided baseline for that constituent will be increased by the amount purchased by the indirectly connected non-primary constituent(s). In this way, a primary constituent's baseline bandwidth is not negatively impacted.

Volume discounts are now available to ICN non-primary constituents.

This policy is effective immediately for all new connections, and will become effective July 1, 2003 for all existing connections. Advance notice will be given to all constituents allowing time to plan and budget accordingly. Bills are sent by the ICN on a monthly basis.

ICN Certified Content Partner Program

The ICN seeks to provide a network environment that encourages and promotes high quality, shared content for use by Illinois education. The concept of the Certified Content Partner Program, first proposed by the Advanced Engineering Taskforce, was well received by ICN constituents at recent regional meetings held around the state. The ICN will seek input from a broad range of constituents in the formation of the criteria. More information will be posted as it becomes available.