MEMORANDUM

TO:    Department and Agency Heads, Deans, Vice Presidents, and Provosts

FROM: Walt Magnussen, Ph.D., Director for Telecommunications

SUBJECT: FY 2009/2010 rate increase

 This memorandum serves as advanced notification that the Telecommunications Department has proposed a 5% rate increase effective September 2009.

 Telecommunication bills consist of overhead, which funds the operation of the Telecommunications Department, as well as charges for outsourced services that are passed through to the vendor.  In January 2009, the Telecommunications Department billed 3,590 separate accounts with an average monthly bill of $356.27.  A 5% overhead increase will result in an average bill increase of $17.81 per month per department.

 This rate increase, only the third within the past 20 years, is caused by several factors.  The primary factor is the increased demand for core infrastructure, funded by Telecommunications, but not billed to the departments.  This infrastructure includes communications facilities construction, facilities renovation, and installation of fiber optic cable. 

 This 5% increase will impact all services billed by the Telecommunications Department with the exception of the “APIT network connection charge,” set by Computing and Information Services (CIS) and reflected on the Telecommunication bill.