MOREnet Remains Committed to Service Stability and Quality, FY13 Fees Announced
As you are aware, MOREnet has had its fair share of challenges over the last 24 months. Today we are pleased to announce that thanks to your commitment to the consortium, not only are we where we forecast we would be, but we are ahead of it. Thank you for your support.
Although team members at MOREnet are proud of the service and quality we provide, without you and the trust you have put in us over the last year; our consortium would not be where it is today. Our consortium is strong because of each member. After FY12 options and fees were announced last November, we experienced a 97 percent overall member retention, well above our projections. This speaks volumes to the trust members put in us and the consortium as a whole.
Because of high member retention, successful vendor negotiations and thoughtful expenditure management, MOREnet is pleased to announce that fees for FY13 will either remain flat or be reduced. Our current forecasts for FY14 and FY15 show that with continuing high levels of support from our members, fee increases will not be necessary.
We are committed to providing members with a robust and reliable network and, as a result, MOREnet will be upgrading significant elements of its router network at the four hub sites in St. Louis, Columbia, Kansas City and Springfield. This core upgrade will refresh infrastructure technologies that have been successfully performing for more than a decade, ensuring the MOREnet network will continue to meet the needs of members well into the future.
FY13 subsidies from the Missouri State Library for REAL members will remain the same as FY12 for membership service fees (full and basic) and managed connection fees. Network connectivity and tail circuit subsidized fees will be announced soon. Watch for a separate announcement to REAL members.
Fiscal Year 2013 (FY13) Fee Highlights:
- Network Connectivity Fees will be reduced between 4 percent and 19 percent depending on what bandwidth speed is purchased by your organization.
- Membership Service Packages, both full-service and basic will remain the same for FY13.
- The Managed Connection Fee will change to a flat annual fee of $1,700 (currently $1,900 or $1,700 in FY12) for FY13.
- For FY13, all for-fee services will remain flat with the exception of E-mail Archiving, which is currently under review.
Network Connectivity Fee (NCF)
The Network Connectivity Fee is based on the bandwidth for each connection a member organization receives from MOREnet. In FY11, overall demand for bandwidth grew by 35 percent. Because of the steady growth and our ability to negotiate lower rates on existing backbone and Internet access contracts, MOREnet will be able to reduce the NCF for FY13. Over the last two years, MOREnet has reduced NCF fees between 8 and 68 percent depending on what bandwidth speed is purchased. MOREnet will extend the price reductions to all members, including those that entered into three-year bandwidth commitments.
Membership Service Packages and For-fee Services
MOREnet was pleased with how members received the membership service options and for-fee service offerings in FY12. Nearly 75 percent of the members selected the full-service membership service package for FY12. MOREnet continues to research new service offerings that will benefit consortium members.
Managed Connection Fee
In an effort to reduce the complexity of MOREnet’s fee structure, we will no longer offer one and three-year pricing on our Managed Connection Fee. All members will be offered a price of $1700 annually. This fee, required for each MOREnet connection, includes router management, network security services, connection monitoring, vendor management and circuit procurement services.
Legislative Efforts Underway for FY13
MOREnet still puts priority on one of the core values we established early on in our legislative efforts: to level the playing field for all members in the state of Missouri with regard to the cost of bandwidth and technology opportunities. With this in mind, for FY13 we have requested funding for the member sites that are paying above the median cost for connectivity services. We will provide more details as they develop during this legislative session and will seek support from those who stand to benefit most.
For questions regarding your MOREnet membership or any information in this message, please do not hesitate to contact me or anyone on our Member Relations team.