
					Rod R. Blagojevich, Governor

Cost Recovery Information for the remainder of Fiscal Year 2007 (Sept. 1, 2006 - June 30, 2007)

The ICN Cost Recovery rates have changed effective September 1, 2006. Please see the Policy Committee item from the September 18 meeting.

October 2, 2006 Press Release on Cost Recovery Changes

If you have further questions please contact the ICN at 877.844.2724 or e-mail us at costrecovery@illinois.net. Information in this section is subject to change without notice in accordance with ICN policy and funding.

	FY 2007 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 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 FY2007 rate varies according to the quantity of bandwidth purchased. The Bandwidth Pricing chart shows bandwidth pricing for FY2007. 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 8 Mbps

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.

An additional 3 Mbps is available to those constituents that demonstrate compliance with the E-rate program to the ICN each year.

Institution(s) Student FTE Headcount	Current Allocation (Mbps)	New Allocation (Mbps)	New Allocation with E-rate
1 - 999 (and entities without FTE)	1.5	8	11
1,001 - 1,999	3	8	11
2,000 - 2,999	4.5	8	11
3,000 - 3,999	6	8	11
4,000 - 4,999	7.5	10	13
5,000 - 5,999	9	12	15
6,000 - 6,999	10.5	14	17
7,000 - 7,999	12	16	19
8,000 - 8,999	13.5	18	21
9,000 - 9,999	15	20	23
10,000 – 10,999	16.5	22	25
11,000 – 11,999	18	24	27
12,000 – 12,999	19.5	26	29
13,000 – 13,999	21	28	31
14,000 – 14,999	22	30	33
15,000 – 15,999	23	32	35
16,000 – 16,999	24	34	37
17,000 – 17,999	25	36	39
18,000 – 18,999	26	38	41
19,000 – 19,999	27	40	43
20,000 – 20,999	28	42	45
21,000 – 21,999	29	44	47
22,000 and above	30	45	48

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 Bandwidth Pricing table 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.

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.

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 Bandwidth Pricing table above based on amount purchased.

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 current 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.

Bills are sent by the ICN on a monthly basis.