1. 1 What is CTF? California Teleconnect Fund (CTF) is a state program, administered by the California Public Utilities Commission. The current budget for fiscal year 07-08 is $25,057,000. CTF discount applies on CTF-eligible services after applying the E-rate discount for schools and libraries.

2. 2 What currently are CTF-eligible services? Measured business line or its functional equivalent Switched 56 or its functional equivalent Integrated Services Digital Network (ISDN) or its functional equivalent T-1 line DSL - even though this is a CTF-eligible service, the CPUC cannot mandate carriers to offer the discount because the State is preempted from regulating broadband internet services, pursuant to FCC 05-150, released on 8/5/05. OC 3 – OC 192 (fiber transfer that has a bandwidth of up to 1 Gbps) Functional equivalents vary between service providers

3. 3 What charges are not discounted by CTF? Generally, non-recurring charges (e.g. installation charge) except from 1/1/07 to 6/30/08 $2 Million is appropriated for CBO’s advanced service installation charge discount of up to 100%. Usage charges

4. 4 What are the charges/taxes/fees eligible for CTF discount? Monthly recurring charge Company specific surcharge/surcredit CPUC user fee -.11% Federal Excise Fee - 3% 911 Fee -.72% Local/City Tax – Varies by locality

5. 5 What are the taxes/surcharges/surcredits covered by the CTF Program? The taxes and surcharges or surcredits covered by the CTF Program are based only on the approved CTF discount amounts.

6. 6 No resale or sharing of CTF discounted services The CTF discount services cannot be resold to, or shared with, any other non-qualifying entity or person.

7. 7 Review of PPP - CTF R.06-05-028 – Rulemaking to Review the Telecommunications Public Policy Programs (CTF, ULTS, DDTP, and Payphone)

8. 8 SB 1102 – PU Code Section 884.5 (Statewide Average is 69% and 68% for FY 06-07 and FY 07-08, respectively.) E-rate Discount Application - Five Categories: 1) CTF participant with pending E-rate application – apply the statewide average E-rate discount before applying the CTF discount. The E-rate and CTF discounts will be trued up to the effective date of the E-rate. 2) CTF participant that has not filed for E-rate – apply the current statewide average discount before applying the CTF discount (69% for FY 06-07 and 68% for FY 07-08). 3) CTF participant that applied for E-rate discount, but denied – 0% must be shown on the funding commitment letter. Apply the 50% CTF discount to CTF-eligible services. 4) CTF participant that is a necessary small school as defined in Section 42283 of the Education Code – apply the 50% discount to CTF-eligible services unless the customer presents the actual E-rate discount. In that case, apply the E- rate discount before applying the CTF discount. 5) CTF Participant that has been approved for E-rate for the entire fiscal year, but the dollar amount granted is not sufficient to cover all the CTF eligible services for the entire fiscal period. Apply the actual E-rate discount before applying the CTF discount.

9. 9 CTF Application Process CTF Application and guidelines can be downloaded from the CPUC website at: http://www.cpuc.ca.gov/static/telco/public+programs/ctf_faq.htm__ http://www.cpuc.ca.gov/static/telco/public+programs/ctf_faq.htm__ Steps: 1. Applicant completes and mails the application to the CPUC. 2. TD reviews the application. 3. TD sends the approval letter to the applicant. 4. Applicant notifies the carrier within 30 days of the approval letter. 5. Customer informs carrier their approved application number. 5. Carrier sends the applicant the discounted application form. 6. Customer completes and mails the discounted application service form to the carrier. 7. Carrier reviews the form and it may take at least 3-4 months for the customer to see the credit on their bill.

10. 10 CTF Application Process Ensure that the name, address, and California Department of Education (CDE) Code # are identical to the affidavit sent to you by the CDE. To check your records, visit www.cde.ca.govwww.cde.ca.gov

11. 11 Required Information: A.Public School – California Department of Education Code Number and Sponsoring District’s Name. B.Category 1: Private, Catholic School – 1.California Department of Education Code Number; 2.Copy of 501(c)(3) IRS tax exempt status letter addressed to the Assistant General Counsel, United States Conference, WA, D.C.; 3.Cover page copy of the Official Catholic Directory; and 4.Copy of the page in the directory listing the name of the church and/or school.

12. 12 Required Information: B.Category 2: Private, Religious (other than Catholic) 1.California Department of Education Code number, and 2.501(c)(3) IRS tax exempt status letter addressed directly to the school. If the IRS tax exempt status letter was not addressed directly to the school, please submit the following: 1.Letter from the church stating that your school is the church’s subunit; 2.Copy of the church directory or similar directory cover page; and 3.Page in the directory listing the name of the church and/or school.

13. 13 Required Information: B.Category 3: Private, Non-Religious School 1. CDE Code #; and 2. 501(c)(3) IRS tax exempt status letter addressed directly to the school. C.Library – must be certificated by the California State Library.

14. 14 No need to re-apply for CTF discounts once approved. For new CTF customer, the effective date of the CTF discounts will be the date the Telecommunications Division date stamped your application, IF You contact your telephone service provider (TSP) within 30 days of the approval letter, otherwise your CTF discount will be effective on the date of contact. For existing CTF customer, the effective date of the CTF discount on additional CTF service will be the date you placed your order if you inform them that you are a CTF participant.

15. 15 Where to file the application? California Public Utilities Commission Communications Division – CTF Program 505 Van Ness Avenue San Francisco, CA 94102 For further questions or information, please contact: Fe N. Lazaro at fnl@cpuc.ca.govfnl@cpuc.ca.gov