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

2. 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

3. 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

4. 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

5. 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

6. 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 mbs to new Tribal School: August 2014
Completed ARRA Buildout: December 2014
Achieved gigabit capacity via fiber: March 2015

7. 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

8. 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

9. 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

10. 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?

11. 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

12. 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.

13. 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

14. 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

15. For more information:
Marsha Spellman Converge Communications, Inc