California Teleconnect Fund Program Technical Meeting CPUC Auditorium September 5, :15 a.m. to 2:30 p.m.

2 R Background –5/25/06 – Commission opened this rulemaking to conduct review of PPP – CTF, ULTS, Payphone, DDTP –Although the CTF is working well to advance universal goals, the Commission believed that review of these programs was long overdue given vast changes in communications marketplace due to state and federal laws mandating competition. –The Commission conducted public participation hearings, and after several rounds of comments, the Commission issued Decision

3 D On June 12, 2008, D was issued and ordered several key changes to the CTF as follows: –Inclusion of California Community Colleges, California Telehealth Network participants and non-profit CBOs providing Information and Referral Services –Removal of the CTF tariff requirements for all carriers that provide CTF-eligible services on a detariffed or non-regulated basis –Expansion of CTF-eligible services to include Internet Access service

4 Community Colleges (CCs)– New CTF Participants The Commission believes that extending CTF to CCs meets the statutory goals of CTF. CCs serve 2.5 million adults per year, 30% of which are low income students. CCs increased access to advanced telco communications technology will help the CCs to better train and serve their students and bridge the digital divide in communities served by such CCs. Budget cap of $7.874 is mandated to ensure that other CTF participants are not negatively impacted.

Information and Referral Services (Non-Profit CBOs ) D clarified that are eligible for CTF D , p. 38, FoF 4, provides that dialing has the potential to provide Californians easy access to information concerning child care services, housing assistance, physical and mental health resources, aging and hospice services, educational and other programs.

6 California Telehealth Network (CTN) Participants CTN is comprised of a large and diverse group of partners that will connect California’s rural communities to a broad range of technology-enhanced services to improve the quality of healthcare CTN can also be used as a resource for emergency and disaster preparedness It will connect more than 300 rural sites with each other, and with a network of specialty providers at academic medical centers and other non profit and for-profit health care providers statewide. Ultimately link California providers to a nationwide broadband network dedicated to health care. In November 2007, the FCC approved $22.1 million over three years to help develop the CTN and will fund 85% of the costs. CTF will fund 50% of the remaining 15% of CTF-eligible monthly recurring costs, or 7.5% of the total monthly recurring CTF costs.

7 Effective Date of CTF Discount for New Participants Community Colleges – Date of application, but no earlier than 12/1/08 (tentative) for new and existing CTF-eligible services. Non-Profit CBOs providing Information and Referral Service – date of application filing CTN Participants - upon completion of infrastructure.

8 FY Budget for Expansion CTN$ million CCs$ million Internet Service$ million FY Budget Expansion $ million

9 Who Can Provide Internet Access and File Claims All certificated and registered wireless carriers with the Commission ISPs, wireless and cable providers (that are not registered/certificated by the Commission) through partnership with certificated and registered wireless carriers.

10 Who and What Services can be Detariffed Carriers: AT&T, Verizon, SureWest, and Frontier CLECs IXCs Carriers may voluntarily detariff certain CTF-eligible services, with some limitations, per D (please see page 50). Examples of detariffed services: 1 MB, Switched 56, ISDN, PBX Trunks, Centrex, etc. (carriers’ filings subject to Commission’s review and approval) Carriers that offer CTF services on a detariffed basis or voluntarily participating non-regulated providers are required to include rates that were in effect at the time of the provisioning of the services for which the claim is submitted or an electronic link with such information.

11 Topics for Discussion/Input Method of informing carriers and community colleges regarding fund availability Internet Access Definition Discount on MPLS Wireless Internet Cell Phone Connection Limit of 5 Per Entity 1 MB Discount Elimination