Marsha Spellman, JD Regulatory Director, WST October 17, 2016 ILEC Petition for FCC Marsha Spellman, JD Regulatory Director, WST October 17, 2016

1. History of WST 2. MILESTONES 3. CLEC v. ILEC 4. FCC Petition WARM SPRINGS TELECOM 1. History of WST 2. MILESTONES 3. CLEC v. ILEC 4. FCC Petition 5. What is Next

History of WST Began in 2002 with Needs Assessment, followed by a Strategic Plan Found that the Tribes were lacking in all areas of telecommunications Many residents lacked basic service Little Internet Access About 30% had no telephone service Government Agencies and Businesses lacked broadband of any amount Community Connect Grant RUS grant for communities with no broadband Built small network from a “community center” to the government agency building Built small Mesh Network around the community center Whet the appetite for the Tribes to have more telecom services Tried to negotiate with ILEC/Qwest to improve services

History of WST, con’t Started the Process of creating Tribal Telco Created Business plan showing number of homes and potential financial gains Grants – used to pay for consultants to help develop plan RUS: Business Opportunity and Business Enterprise Grants (now one grant) EDA – Economic Development Administration Need to show that project will create jobs ARRA - Broadband Stimulus Hired Engineering Firm N-Com to help with ARRA grant and then to do all future engineering plans Since Qwest wouldn’t negotiate, started the Regulatory process to become a CLEC Oregon PUC has a USF fund WST could receive $149/line/month for each line it took from Qwest/CL Negotiated during OPUC proceeding to receive $1.5/year / OUSF Applied for and received ETC certification

MILESTONES Corporation Chartered: January 2010 CLEC Status Granted:   January 2010 Received BIP ARRA Award:   July 2010 Ground Breaking Ceremony for Central Office:   April 2011 Receipt of BIP ARRA funding:   August 2011 Certificate of Occupancy for Central Office:   October 2011 Increased broadband capacity on the Reservation from an unlicensed 45 Mbs to a licensed 450 Mbs:   November 2011

MILESTONES, Con’t. Ribbon Cutting - Central Office: January 2012 Received ETC designation:   March 2012 First residential customer:   April 2012 Received OUSF support:   August 2012 Achieved profitability:  September 2013  E-Rate - 100 mbs to new Tribal School: August 2014 Completed ARRA Buildout: December 2014 Achieved gigabit capacity via fiber: March 2015  

CLEC v. ILEC ILEC: INCUMBENT LOCAL EXCHANGE PROVIDER ILEC serves a particular defined service territory Entitled to Federal Universal Service Funding/USF Now called CAF – Connect America Fund Significant changes to fund has limited the amount of funding available Can apply and receive RUS loan funding: long term, low rates SUTA Provision - Substantially Underserved Trust Area Can become ILEC: by merger or acquisition of the named ILEC “By Rule” by FCC More regulatory filing obligations With ETC, company eligible for Lifeline on behalf of eligible customers

CLEC v. ILEC CLEC: COMPETITIVE LOCAL EXCHANGE PROVIDER Certification for entire State, if desired No requirements to type of service that company must offer No COLR obligation to serve Carrier of Last Resort Can “cherry pick” Not eligible for Federal Support – USF/CAF If state has a USF fund, then maybe eligible for state funding, depending on rules of the state fund. Can become an ETC to receive Lifeline funding on behalf of customers that meet low income requirements ETC – Eligible Telecommunications Carrier

FCC Petition for ILEC TIME TO BECOME ILEC WANAPINE Cutbacks to Federal USF and Oregon USF WANAPINE Oregon PUC found area of Reservation without an ILEC assigned Went through process of defining and naming the new area Applied to be ILEC for the area OPUC ruled to create new area Ruled that WST could be ILEC to serve but need FCC approval FCC – more than a year long process before filing petition with FCC At first planned to file just for Wanapine FCC staff encouraged WST to apply for entire area

FCC Petition The Petition as filed with the FCC, asks the commission to re-designate this area based on federal FCC law, which enables the commission, “by rule.” Three Pronged Test: Does the company occupy a market position comparable to the ILEC? Has it “substantially replaced” the ILEC? Does it serve the public interest, convenience and necessity?

Three Pronged Test Does the company occupy a market position comparable to the ILEC? WST now serves 85% of the reservation with broadband and telephone service. 978 residential/761 business lines Built network throughout the 1000 sq mile reservation with fiber, microwave CL serves app 100 lines

Three Pronged Test Has it “substantially replaced” the ILEC? Few residential customers still have CenturyLink service Tribal Admin has moved all its lines from CL Tribal resolution passed requiring all tribal agency offices to use WST CenturyLink did not build to a new neighborhood with new homes. WST serves this new neighborhood.

Three Pronged Test Does it serve the public interest, convenience and necessity? Serves the Needs of the Tribes quickly with local staff Part of Emergency Service Network Set up fire camp phone network for Fire Management during fire season Educational opportunities E-rate funding built fiber to serve new Charter school Kids to do homework JOBS, Business opportunities New jobs with WST Business development, including new Drone Project Convenience includes Customer Service office in central part of the Reservation

What Is Next? Petition filed with the FCC to be the ILEC for the Reservation Public Notice was released Sept. 20 Comments due October 20 Reply comments due Nov. 10 Assuming that the FCC grants the Petition to be the ILEC, Waiver to Serve (Parent Trap) Cost Study Regulatory Filings ETC

For more information: Marsha Spellman Converge Communications, Inc. marsha@convergecomm.com 503-997-1685