View from the 8 th Floor August 7, 2012 Angie Kronenberg, Wireline Legal Advisor Office of FCC Commissioner Mignon Clyburn

2 Discussion Overview Update on Implementation of USF Reforms -High-Cost  HCLS Benchmarks  CAF Phase I/Phase II  Mobility Fund Phase I -ICC: Interstate Access Tariffs -Lifeline -Rural Healthcare Rural Call Completion

Reform Objectives Meet consumer needs (and expectations) that broadband and voice services are available and affordable. Address criticisms of the programs. Obtain the information we need to ensure that the programs are meeting our new goals (improved accountability). Collaborative Reform Process. 3

4 High-Cost Reform Petitions for Reconsideration -Four Orders on Reconsideration To Date -Issues Are Being Batched -More Orders on Reconsideration Are Expected HCLS Benchmarks -Two Boundary Data Streamlined Waivers Filed and Granted -Issues Raised in Petitions for Reconsideration Are Under Consideration -Study Area Boundaries Process Rate-of-Return Carrier Waivers Update

5 High-Cost Reform (cont.) and Access Charge Tariffs (ICC) CAF Phase I -Approximately $115 million accepted -Conditional Acceptances by Two Carriers CAF Phase II—Cost Model in Process Mobility Phase I -Short-form applications filed and under review -Expected Bureau Public Notice -Auction is scheduled for Sept. 27 Bureau’s Work on Interstate Access Tariffs (ICC Reform)

6 Lifeline Reform and Modernization Goals for Reform -Meet low-income consumer needs Collaborative Process Implementation of Reform (The Highlights): -Duplicates Resolution Process Continues -National Lifeline Accountability Database Is Underway -Collaboration with Other Agencies on Eligibility Database -Broadband Pilot in Process  24 Applications Received, Covering 25 States, Puerto Rico, and the Virgin Islands -Bureau Report on Meeting $200 Million Savings Target Released -Consumer Education and Outreach Efforts -USAC Training

7 Updates on Other Proceedings Rural Healthcare Reform Proceeding -Working To Complete Proceeding By End Of The Year. -Public Notice Seeking Further Comment On Issues Raised In The Proceeding Released Last Month. Rural Call Completion -Task Force Formed -USF/ICC Reform Order -Bureau Declaratory Ruling - box for Carriers to Alert FCC of Specific Failed Calls -Web Page for Consumers to Use: wireless-calling-rural-areas  It Links to Consumer Complaint Form: -Investigations Continue—Use of In-Box Is Helpful (And Encouraged)