Growth in Priority 1 discounts is being driven by demand for broadband telecommunications and Internet access services. A review of Form 470 solicitations posted by E-rate applicants from FY2009 to FY2013 shows a dramatic shift with a growing percentage of forms indicating higher speed connections.
For broadband Internet access:
- The portion of Form 470s requesting 1 Mbps or 1.5 Mbps connection speeds declined from 52.6% in FY2009 to 17.9% in FY2013.
- The portion of Form 470s requesting 1 gigabit or fast connection speeds increased from 6.9% in FY2009 to 16.6% in FY2013.
For broadband telecommunications services:
- The portion of Form 470s requesting 1 Mbps or 1.5 Mbps connection speeds declined from 81.3% in FY2009 to 60.6% in FY2013.
- The portion of Form 470s requesting 1 gigabit or faster connection speeds increased from 3.0% in FY2009 to 11.8% in FY2013.
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The following two tables show the specific percentage of broadband solicitations for each funding year, based on the speeds referenced in the Form 470
Early indications are that these trends are continuing in FY2014.
