New Telephone and Network Rate Structure for FY08
IS&T and the Office of Budget Operations will post updates as questions arise and new information is available.
Current Update: July 6, 2007
Effective July 2007 DLCs will no longer see individual charges for monthly recurring IP address, monthly recurring
telephone, long distance and international calling, and Tether services. Beginning in FY08 these voice and data
services will be bundled and billed using a proxy pricing methodology based on modified FTE. The new proxy charges
will not be posted until January 2008 at the earliest so no immediate action is required at this time. This change
will not affect the Institute’s policy of funding all research-related telephone and network costs.
The proxy calculation and total proxy cost for each DLC will be determined as follows:
IS&T and the Office of Budget Operations will take a snapshot of the FTEs in each DLC as of October 31st of
each fiscal year. If an appointment is 50% or more, the proxy count is 1. If an appointment is less than 50%, the
proxy count is zero. Each DLC’s proxy cost is determined by their total proxy count times the rate per proxy
(for FY08, we expect the proxy rate to be approximately $1,250).
One-time base budget adjustments will be made in FY08 and will be determined as follows:
To ensure that no DLC is adversely affected by the pricing methodology change, the Office of Budget Operations will
calculate the new proxy cost for every DLC, compare it to what the DLC paid for the same services in FY07 (or an
average of FY06 and FY07) plus 10% (as DLCs are being asked to absorb a 10% price increase), and make any necessary
budget adjustments. The Office of Budget Operations will provide a general budget allocation to make up the difference
for DLCs that pays more under the new methodology and they will "scoop" budget dollars from any DLCs who
pay less. Since these budget adjustments will be made at the school level, the Assistant Dean for each school will
determine how these adjustments are handled within their school (these decisions have not yet been made by the Assistant
Deans).
In January 2008, the new proxy charges will likely begin. The first charge will cover the first 7 months of the
fiscal year and subsequent charges will occur monthly based on 1/12th the total proxy cost.
Please contact Angie Milonas (milonas@mit.edu or 3-0773) or John Donnelly (jdonnely@mit.edu or 3-2734) if you have any questions.
Previous Update: June 4, 2007
With the FY07 close fast approaching, most MIT Departments, Labs, and Centers (DLCs) review current IP address
and telephone charges in order to make billing changes for the new fiscal year. This is no longer necessary.
Beginning in FY08 most voice and data services (including IP address, telephone, long distance and international
calling, and Tether) will be billed on a proxy pricing methodology. As a result, DLCs will no longer see individual,
monthly charges for IP address, private subnet, analog or ISDN telephone, long distance and international calls,
and Tether, starting with the July monthly statements. IS&T will provide more details about the proxy rate structure
change in the near future, so stay tuned.
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