ILEC Petition for FCC Marsha Spellman, JD - PowerPoint Presentation

Slide1

ILEC Petition for FCC

Marsha Spellman, JDRegulatory Director, WSTOctober 17, 2016

WARM SPRINGS TELECOM1. History of WST

2. MILESTONES3. CLEC v. ILEC4. FCC Petition5. What is Next

History of WSTBegan in 2002 with Needs Assessment, followed by a Strategic Plan

Found that the Tribes were lacking in all areas of telecommunicationsMany residents lacked basic serviceLittle Internet Access About 30% had no telephone serviceGovernment Agencies and Businesses lacked broadband of any amountCommunity Connect GrantRUS grant for communities with no broadbandBuilt small network from a “community center” to the government agency buildingBuilt 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

History of WST, con’t

Started the Process of creating Tribal TelcoCreated Business plan showing number of homes and potential financial gainsGrants – used to pay for consultants to help develop planRUS: 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

MILESTONESCorporation Chartered:   January 2010

CLEC Status Granted:   January 2010Received BIP ARRA Award:   July 2010Ground Breaking Ceremony for Central Office:   April 2011Receipt of BIP ARRA funding:   August 2011Certificate of Occupancy for Central Office:   October 2011Increased broadband capacity on the Reservation from an unlicensed 45 Mbs to a licensed 450 Mbs

:   November 2011

MILESTONES, Con’t.

Ribbon Cutting - Central Office: January 2012Received ETC designation:   March 2012First residential customer:   April 2012Received OUSF support:   August 2012Achieved profitability:  September 2013 E-Rate - 100

mbs

to new Tribal School: August 2014

Completed ARRA Buildout: December 2014

Achieved gigabit capacity via fiber: March 2015

CLEC v. ILECILEC: INCUMBENT LOCAL EXCHANGE PROVIDER

ILEC serves a particular defined service territoryEntitled to Federal Universal Service Funding/USFNow called CAF – Connect America FundSignificant changes to fund has limited the amount of funding availableCan apply and receive RUS loan funding: long term, low ratesSUTA Provision - Substantially Underserved Trust AreaCan 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

CLEC v. ILECCLEC: COMPETITIVE LOCAL EXCHANGE PROVIDER

Certification for entire State, if desiredNo requirements to type of service that company must offerNo COLR obligation to serveCarrier of Last ResortCan “cherry pick”Not eligible for Federal Support – USF/CAFIf 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 requirementsETC – Eligible Telecommunications Carrier

FCC Petition for ILECTIME TO BECOME ILEC Cutbacks to Federal USF and Oregon USF

WANAPINEOregon PUC found area of Reservation without an ILEC assignedWent through process of defining and naming the new areaApplied to be ILEC for the areaOPUC ruled to create new areaRuled that WST could be ILEC to serve but need FCC approvalFCC – more than a year long process before filing petition with FCCAt first planned to file just for WanapineFCC staff encouraged WST to apply for entire area

FCC PetitionThe 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?

Three Pronged TestDoes 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 linesBuilt network throughout the 1000 sq mile reservation with fiber, microwave CL serves app 100 lines

Three Pronged TestHas it “substantially replaced” the ILEC?

Few residential customers still have CenturyLink serviceTribal Admin has moved all its lines from CLTribal resolution passed requiring all tribal agency offices to use WSTCenturyLink did not build to a new neighborhood with new homes. WST serves this new neighborhood.

Three Pronged TestDoes it serve the public interest, convenience and

necessity?Serves the Needs of the Tribes quickly with local staffPart of Emergency Service NetworkSet up fire camp phone network for Fire Management during fire seasonEducational opportunitiesE-rate funding built fiber to serve new Charter schoolKids to do homeworkJOBS, Business opportunitiesNew jobs with WSTBusiness development, including new Drone ProjectConvenience includes Customer Service office in central part of the Reservation

What Is Next?Petition filed with the FCC to be the ILEC for the ReservationPublic Notice was released Sept. 20

Comments due October 20Reply comments due Nov. 10Assuming that the FCC grants the Petition to be the ILEC, Waiver to Serve (Parent Trap)Cost StudyRegulatory FilingsETC

For more information:Marsha Spellman

Converge Communications, Inc.marsha@convergecomm.com503-997-1685