Small Rural Providers NTCA’s membership is made up of about 850 independent telecommunications and broadband providers. Small telcos like those in NTCA members serve rural customers in 46 states, delivering services to approximately 35% of the nation’s landmass. Not Frontier, Windstream, Consolidated – much smaller. NTCA member companies’ average customer density is less than seven subscribers per square mile.

Technology Transitions in Rural America All Offering Broadband, But Not All Broadband is Equal Platforms – 41% FTTP; 45% DSL; 12% Cable; 1% Fixed Wireless Speeds – 67% >25 Mpbs; 20% >10 Mbps; 10% >4Mbps “Middle Mile”/Transit/Peering Challenges Average 68 miles from Tier 1 ISP connections Approx. 30 states with state networks Access to Capital Issue, Business Case Issue, Bit of Both? Challenge of 3 D’s is a Catch 22

How Do Rural Networks Get Built? ($) USF – key to business case; does NOT finance networks Reasonably comparable services and rates CAF Phases 1 & 2, CAF-BLS/HCLS, Mobility 1 and 2, etc. [$4.5B ann.] Rural Utilities Service – banker for many rural BB projects Finances networks (like other banks), but does not subsidize rates Broadband Loan, Telecom Infrastructure, Community Connect, etc. “Infrastructure Package” Omnibus “Down Payment” - $600M for loans/grants Other plans? Not just funding; permitting/tax incentives too . . .

Interconnection Issues Voice TDM – straightforward (other than call completion), declining IP – lack of rules/structure a help or hinderance? Network Compensation & “Network Edges” – distance challenges Data/Broadband Netflix & other disputes 2015 Wheeler Open Internet Rules 2018 Pai Internet Freedom Rules Prospect of legislation?

Nationwide Number Portability Largely driven by small mobile operators Counter to capabilities offered on nationwide networks Cost/Interconnection Issues Who does dips (and bears costs for that)? Who routes calls to where (and bears costs for that)? New architectures (gateways, more transit, etc.)? New governance needed?

Spectrum Increasing Concentration CBRS 5G 700 MHz secondary market activity – one-direction 600 MHz Partitioning? CBRS Use cases License sizes 5G Small cells in rural markets = FTTH?