IUB Deregulation 2017 Impact on Municipal CLECs Consortia Consulting, Inc.

IUB Objectives Iowa Modernization of Chapter 22 Rules Eliminate obsolete or unnecessary requirements Local rates deregulated (no local services tariff since ruling in 2014) Minimize regulatory burden on providers Create regulatory parity on local exchange services for different technologies. TDM vs VoIP Copyright © Consortia Consulting, Inc. 2017. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Presenter Disclosure The following only discusses some specific changes as it relates to Iowa Municipal Utilities offering voice services. Not all changes are covered. Many sections are being reworked or reworded by the IUB. Please contact Consortia Consulting for any questions you may have concerning the IUB August Order of 2017. Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Retail Service Deregulation IUB deregulates most retail local exchange service quality including most customer service requirements. IUB retains authority over customer complaints Retains authority over wholesale services such as Interconnection Agreements, Intrastate access service, service territories. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact on muni start-ups Certification is now voluntary. Until the IUB decides on an alternative mechanism, or narrows new guidelines, the application for certificate of public convenience and necessity is voluntary. We recommend discussing options with your consultant or legal counsel. A registration form is online if registering as a VoIP provider. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact on start-ups The IUB still retains authority over the service territory. Application requires the applicant to state the territory or the exchange (town) the utility will be providing service. Applicant can produce their own service map or boundary, or mirror the existing map of the incumbent provider. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact Applicant must obtain specific numbering resources within the exchange (rate center) for which you apply to serve. The NXX may not be moved across the exchange boundary into another exchange (rate center). Local Number Portability (LNP) is still LOCAL. IUB does not oversee or approve the numbering resources (NPA-NXX-X) to offer local exchange service. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact Catalog of services. (Being revised) CLEC is required to produce a catalog of services which has replaced the local tariff. Until further discussion with the IUB, products, pricing and services should be placed on the utility website and made available from the front office. We expect a new template or format in the next 90 days. This template will replace the current catalog of services. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact IUB eliminated general standards under Chapter 22.3 Printed Directory 22.3(1) 22.4(1)(c) CLECs shall now notify customers annually of where to find an electronic online directory or where to obtain a printed version, free of charge, at a toll free number. This is going to be discussed again with the IUB. More changes to come with this rule, as well. Copyright © Consortia Consulting, Inc. 2017. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

Impact Eligible Telecommunications Carrier (ETC) Status – CLEC must have authority in order to receive any Universal Service Funds or CAF eligibility. No change. IUB will continue to receive any application for ETC and grant them under the FCC rules or framework. No longer have to file Form 481 with the IUB. FCC just eliminated that requirement. The filing is to the FCC only. Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

No Change Deregulation does not change 911 service or dual party relay Intrastate Access Tariff compliance Interconnection activity (wholesale) Registrations for video Copyright Consortia Consulting, Inc. 2013. All rights reserved. This presentation is confidential and may not be used or reproduced without the prior written permission of Consortia Consulting, Inc.

More changes to come. Call with any questions. Thank you! 402.440.5894 Jthornton@consortiaconsulting.com