While the benefits of connecting to the NII appear to be significant, many policymakers and educators are concerned about how much it would cost to capture some or all of these benefits. To provide a framework for thinking about the range of options for deploying technology infrastructure in the public K-12 schools, and the costs of those options, we developed a sequence of models for deployment. These models represent prototypical infrastructure deployment choices that schools are actually making; they also illustrate the fundamental economic breakpoints among options.
The models focus on networked computers linked together and to the NII via wireline connections, except in rural locations where wireless connections are more feasible. (22) While deployment would actually take place at varying speeds in different schools and districts, we made the simplifying assumption here that each model will be implemented evenly over either a five-year or ten-year period (i.e., by 2000 or 2005). For each model, we evaluated the costs in detail across six infrastructure elements: (1) the connection to the school (i.e., the wide area networks that will connect schools to each other, to their district offices, and to the NII); (2) the connection within the school (i.e., local area networks that will link computers within the given schools); (3) the hardware, including the computers, printers, scanners, and other equipment needed for full functioning of the technology; (4) content, including software and on-line service subscription charges; (5) professional development for teachers; and (6) ongoing system operations. Both video and voice options were evaluated as add-ons to the computer-based options.
Models of infrastructure deployment (23)
Briefly, the key features and associated costs of the computer-based models are as follows (see Exhibit 3: "Model Features" and Exhibit 4: "Estimated Cost of Deploying and Operating Infrastructure"):
One-time purchase and installation costs for the Lab model-deployed nationwide in all public K-12 schools-would total $11 billion during the five-year deployment period, while ongoing operation and maintenance costs would build over the deploy-ment period to $4 billion per year once the infrastructure is fully in place. Another way of thinking about the cost is that it would represent 1.5% of the public K-12 education budget in the final year of deployment (the year that costs would reach their peak). (24)
One-time purchase and installation costs would total $22 billion during the five-year deployment period, and ongoing operation and maintenance would cost $7 billion per year once the technology is deployed. Costs would represent 3.0% of the public K-12 budget in the year 2000, the final year of deployment.
One-time purchase and installation costs would be $29 billion over the five-year deployment period; ongoing operation and maintenance expenditures would equal $8 billion per year once the technology is deployed. Costs would represent about 3.4% of the public K-12 budget in the year 2000, the final year of deployment.
One-time purchase and installation costs for this model would equal $47 billion over the ten-year deployment period, while ongoing operation and maintenance costs would build over the deployment period to $14 billion pe year once the infrastructure is in place. Costs would represent 3.9% of the public K-12 budget in 2005, the final year of deployment.
Costs for video equipment and operation, and for classroom telephones and voicemail, were calculated separately. Video equipment can deliver a range of educational benefits, from providing students access to educational materials available on videotape or videodisc to enabling classroom "field trips" to museums and historical sites. Distance learning, in which schools use video technology to allow students to participate long-distance in courses offered at other schools or colleges, can be especially valuable for rural or inner city schools (see Drawing: Distance learning).
The cost to provide video varies widely from installation to installation, however. On average, business-quality video, the quality of video most commonly used for videoconferencing today, can be added to computer-based deployment for a relatively nominal amount-for example, an additional 0.3% of the public K-12 budget for the Classroom model (see Exhibit 5: "Dedicated Video Infrastructure"). But some educational experts advocate the use of professional quality video where possible because it is more engaging for students, who can be distracted by the jerky movements common to business-quality video. (25)
Installing high-resolution, professional-quality video increases the cost of deployment significantly. Some schools have spent up to $200,000 on equipment to create state-of-the-art facilities, and arranged for high bandwidth connections to produce better sound and images. For example, the Guilford County School District in North Carolina equipped all 16 of its high schools with high-quality equipment at about $100,000 per room, and connected this equipment to North Carolina's fiber optic information highway. Typically, Guilford County schools use their video system to deliver distance learning of advanced subjects like physics to students in rural areas of the district. Assuming less equipment investment than in the Guilford County example (approximately 35% less), a low-end professional-quality video facility would add approximately 30% to the Classroom computer-based model-or 1.2% of the public K-12 budget in the final year of deployment.
Classroom telephones and voice mail can also be added to the computer-based models relatively inexpensively (see Exhibit 6: "Dedicated Voice Infrastructure"). If the wiring for the telephone system is installed at the same time the local area network for the computers is installed, the additional costs are low. Telephones would add less than 0.1% to the funding challenge for the Classroom model if installed in conjunction with classroom wiring for computers, and voice mail would add even less than the costs incurred for telephones. Installing the telephones separately, however, would raise the overall price tag substantially.
The models illustrate clearly that the biggest financial tradeoff hinges on how far into the school the technology is deployed-to the lab, the classroom, or all the way to each student's desk. But perhaps the most important finding from analyzing these models is that connecting public K-12 schools to the NII seems financially feasible. Connecting a computer lab to the NII in every public K-12 school by the year 2000 would require only 1.5% of the expected K-12 education budget in 2000 (the peak year of expenditures). By comparison, about 1.3% of public K-12 spending is already devoted to similar technology today. Thus, the Lab model could be deployed at a cost of 0.2% more than the public K-12 schools are currently spending on technology. Even connecting every classroom of every public K-12 school by the year 2005 would require only 3.9% of the expected K-12 education budget in 2005.
Analysis of these models reveals some other key insights about deployment costs, regardless of which model is selected (see Exhibit 7: "Cost Components"):
While we believe that the models selected for analysis define a useful spectrum for consideration, they are only a few of many options. Individual schools and districts might choose other models and make different trade-offs between costs and potential benefits (see Exhibit 8: "Possible Lower-Cost Modifications to Classroom Model"). With all such choices, schools should carefully consider whether cost reductions will be sufficient to warrant the accompanying loss of educational benefits. For example, purchasing lower cost computers could substantially reduce initial deployment costs. However, computer capabilities dictate the range of applications students and teachers can use. Likewise, reductions in funding for teachers' professional development could significantly reduce the largest source of ongoing costs during the deployment timeframe, and yet teacher skill building is one of the most essential elements of effective implementation. Trade-offs could also be made between exploiting current technology versus experimenting with or waiting for more advanced technology.
Footnotes
22 Although at a later point in the dissemination of broadband technology to residential communities interactive television sets may rival networked computers as a base for connecting to the NII, we focused on computer-based technology because it is widely available today. By the same token, although satellite and cable both represent important alternatives for connection, we focused on telephone connections because they offer two-way interactivity and are ubiquitous. 23 A detailed description of the models, their underlying assumptions, and the methodology for estimating costs may be found in Appendix A. 24 The final year of deployment represents the largest funding challenge. In the final year, the school is incurring the full load of ongoing operations and maintenance costs, in addition to the final installment of the one-time purchase and installation costs. Accordingly, costs in the final year of deployment represent the highest level that costs reach. For three of the four computer-based models presented in this report, the final year of deployment is 2000; for the Classroom model, it is 2005. Appendix A contains two more ways to represent the costs of deployment: per school and per enrolled student (see Exhibit 17: "Different Representations of Model Costs"). 25 Videoconferencing allows an image from a remote site to be displayed on a local party's television or computer screen, while a local camera simultaneously transmits an image to the remote party's screen, somewhat like a TV phone call. Business-quality videoconferencing typically features full-screen images, although these can be slightly fuzzy and may exhibit jerky motion, which some argue can fatigue viewers. Professional-quality videoconferencing, by comparison, features full-screen, full-motion, crisp video images. Unfortunately, it is also substantially more expensive than business-quality videoconferencing. Another video application, desktop conferencing, is growing increasingly popular. In desktop conferencing, individuals have video windows on their computer screens, with slightly fuzzy images and jerky motion. Desktop video is best used when face-to-face contact is required or body language is important, but it is too limited for classroom uses such as distance learning. 26 For example, in certain states, some schools may find it more cost-effective to implement 5 ISDN lines instead of 10 POTS lines. The 5 ISDN lines, like the 10 POTS lines, permit 10 concurrent users-but with double the performance capability and the ability to handle video. Depending on the state tariffs, the 5 to 10 year cost for this additional capability could be fairly minimal-in fact, the extra $4000 in installation charges above that for telephone lines is likely to be quickly recouped in lower usage charges.