Post on 03-Mar-2017
transcript
Minnesota Telephone Assistance Plan (TAP) & Federal Lifeline
Program Overview
February 21, 2017Before the Governor’s Task Force on Broadband
Presented byMinnesota Public Utilities Commission
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Purpose Both the FCC’s Lifeline program and Minnesota’s Telephone
Assistance Plan (TAP) provide a discount/credit to the same pool of Minnesota households eligible for assistance
The Public Utilities Commission (PUC) and the Department of Commerce work together, collaborating with other agencies to: Inform eligible households about TAP and Lifeline Facilitate application processing Provide administrative oversight of TAP & the TAP Fund
mn.gov/puc 651-296-0406 1-800-657-3782
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Eligible HouseholdsLow-income threshold (135% of federal poverty
guidelines) or
A household member participating in one of several programs specified in law: Supplemental Nutrition Assistance Program (SNAP), was Food Stamps Medicaid Supplemental Security Income (SSI) Federal Public Housing Assistance (FPHA) or Section 8 Veterans Pension and Survivors Benefit – NEW Tribal Programs (live on federally-recognized Tribal lands)
mn.gov/puc 651-296-0406 1-800-657-3782
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One Application
Households use a single application to apply for both programs
Service providers process a single application to determine eligibility for discount/credit through both programs
Households and service providers are both supported by the Commission’s Consumer Affairs Office (CAO)
mn.gov/puc 651-296-0406 1-800-657-3782
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Federal Lifeline Program Provides monthly service discounts per household for voice service and (as
of December 2, 2016) for broadband service
One of 4 programs the non-profit Universal Service Administration Company (USAC) administers for the FCC along with the $10 billion Universal Service Fund (USF)
The USF is funded through fees paid by telecommunications carriers based on an assessment of their interstate and international end-user revenues Wireline companies Wireless companies Interconnected Voice over Internet Protocol (VoIP) providers, including cable
companies that provide voice service
mn.gov/puc 651-296-0406 1-800-657-3782
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Federal Lifeline ProgramThe Lifeline discount is $9.25/month per household
Lifeline may be used for both mobile and fixed broadband as of December 2, 2016
Support for both mobile and fixed voice-only service will gradually decrease to zero over the next five years
mn.gov/puc 651-296-0406 1-800-657-3782
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FCC Orders Lifeline Reform & Modernization
In June 2015, the FCC made changes to the Lifeline Program in the Lifeline Reform Order
In March 2016, the FCC made substantial additional program changes in the Lifeline Modernization Order
Newly appointed FCC Chair has indicated his intent to revisit the Lifeline Orders, but made no further announcements
mn.gov/puc 651-296-0406 1-800-657-3782
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Lifeline Modernization OrderBroadband included
Fixed and mobile voice-only phased out by end of 2021
Minimum service standardsNational Verifier SystemEligibility and other changes
mn.gov/puc 651-296-0406 1-800-657-3782
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Telephone Assistance Plan (TAP) The Public Utilities Commission’s five Commissioners administer the
TAP program, reimbursing local service providers for credits issued to subscribers and for reasonable administrative expenses (Minn. Stat. §§ 237.69–71)
The Commission determines both the amount of the credits and the amount of the surcharge, subject to statutory maximums (Minn. Stat. § 237.70, subd. 7 (d) (1) and (2))
Commission rules require it to examine credit and surcharge levels at least annually (See Minn. Rules 7817.0500) and authorize it to adjust those levels at any point on 30 days’ notice (Minn. Rules 7817.0700)
mn.gov/puc 651-296-0406 1-800-657-3782
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Telephone Assistance Plan (TAP)Established in 1988TAP offers a monthly credit for eligible telephone
subscribers, currently $3.50 per month
The monthly TAP credit may not exceed the Federal Lifeline Program credit or exceed 50 percent of the local exchange rate charged
mn.gov/puc 651-296-0406 1-800-657-3782
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Telephone Assistance Plan (TAP) TAP is funded through a monthly surcharge, currently $0.03
per month per access line Surcharge has a statutory maximum of $0.10 per access line
(Minn. Stat. § 237.70, Subd. 6) Local service providers remit surcharge revenues to the
Department of Public Safety, along with 911 and Telecommunications Access Minnesota (TAM) fees
DPS deposits the TAP surcharges into the state TAP Fund
The TAP Fund’s target operating balance is $395K
mn.gov/puc 651-296-0406 1-800-657-3782
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Telephone Assistance Plan (TAP) Unlike the Federal Lifeline Program, statutes do not allow
TAP to support broadband services - it is a voice-only program
Under the previous administration, the FCC planned to lower the voice-only Lifeline discount each of 5 years until it was zero, effectively lowering the TAP credits allowed
The new FCC chair has indicated his intent to revisit recent Lifeline program changes but offered no further guidance
mn.gov/puc 651-296-0406 1-800-657-3782
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TAP Fund Oversight 234 telephone companies submit reports regarding
1,727,935 lines (June 2016)
26,913 telephone subscribers receive TAP credits (June 2016)
Service providers with 100 subscribers or more submit TAP reports on a monthly or quarterly basis (93 % of lines; 98% of subscribers)
Others report annually
mn.gov/puc 651-296-0406 1-800-657-3782
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TAP Administrator Administers operations including program compliance with governing law
and the creation and update of program web content
Ensures filing compliance by 234 companies
Compiles company reports of subscriber lines, surcharge payments, and credit reimbursement
Tracks revenue transfer from DPS to the TAP Fund
Tracks disbursements to companies from the TAP Fund
Helps present fund activity, fund balance and surcharge/credit recommendations to the Commissioners for review and decision at least annually
mn.gov/puc 651-296-0406 1-800-657-3782
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Consumer Affairs Office (CAO)Part of the Minnesota Public Utilities
CommissionPrepares web and printed program information Conducts outreach activitiesResponds to phone and email inquiries from
the public, service providers and other agencies
mn.gov/puc 651-296-0406 1-800-657-3782
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Collaborative HubThe CAO is a collaborative hub among:
Staff at the PUC and at the Department of Commerce
Other state agencies working with potentially eligible households (such as Human Services)
Federal entities, such as the FCC and USAC Service providers, such as the Minnesota
Telecom Alliance and individual companies
mn.gov/puc 651-296-0406 1-800-657-3782
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Outreach ActivitiesTAP and LifelineCold Weather RuleGas Affordability ProgramsLow Income Electric Discount ProgramsUtility Customer Protections
mn.gov/puc 651-296-0406 1-800-657-3782
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Outreach Activities State and federal elected officials (211) County Human Services Departments (87) Community Action Agencies (24) Long term care facilities (400) Industry groups (telecom, energy) Salvation Army Distribute 20,000 brochures each year
mn.gov/puc 651-296-0406 1-800-657-3782
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Lifeline Changes & UncertaintyThe FCC anticipates revisiting the previous
administration’s Lifeline orders but has provided no further clarification at this time
The following highlights from the FCC’s 2016 order remain in place
mn.gov/puc 651-296-0406 1-800-657-3782
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Support Level PhasedownLifeline Modernization Order
mn.gov/puc 651-296-0406 1-800-657-3782
Date Mobile Voice-Only
Fixed Voice-Only
Mobile Broadband
Fixed Broadband
December 2, 2016 $9.25 $9.25 $9.25 $9.25
December 1, 2017 $9.25 $9.25 $9.25 $9.25
December 1, 2018 $9.25 $9.25 $9.25 $9.25
December 1, 2019 $7.25 $7.25 $9.25 $9.25
December 1, 2020 $5.25 $5.25 $9.25 $9.25
December 1, 2021 0* 0* $9.25 $9.25
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Minimum Service StandardsLifeline Modernization Order
Date Mobile Voice
Mobile Broadband
Fixed Broadband
12/2/2016 500 Minutes
500 MB Speed: 10/1 MbpsUsage Allowance: 150 GB
12/1/2017 750 Minutes
1 GB Speed: Updating Mechanism Usage Allowance: CAF Standard or Bureau
Determination 12/1/2018 1000
Minutes 2 GB Speed: Updating Mechanism
Usage Allowance: CAF Standard or Bureau Determination
12/1/2019 1000 Minutes
Updating Mechanism
Speed: Updating Mechanism Usage Allowance: CAF Standard or Bureau
Determination 12/1/2020 1000
Minutes Updating
Mechanism Speed: Updating Mechanism
Usage Allowance: CAF Standard or Bureau Determination
12/1/2021 1000 Minutes
Updating Mechanism
Speed: Updating Mechanism Usage Allowance: CAF Standard or Bureau
Determination
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National VerifierEnvisions consolidating Lifeline application
and recertification processes into one central organization for all 50 states
Discussions on this large effort are underway
The Commission and Department of Commerce are taking part in these discussions
mn.gov/puc 651-296-0406 1-800-657-3782
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Staff & Resources PUC Telecom & Energy Manager, Michelle Rebholz, manages TAP
administration and support of customer applications for TAP and Lifeline
PUC TAP Administrator, Theresa Staples, administers programmatic and financial aspects of TAP
PUC Utility Analyst, Mike McCarthy, administers TAP/Lifeline related dockets before the Commission, typically with supporting information submitted by the Department of Commerce
PUC Programs Coordinator, Tracy Smetana, addresses customer and service provider inquiries, creates outreach materials and coordinates with other agencies
Department of Commerce Telecom Manager, Greg Doyle, supervises staff providing analysis and filings in Commission dockets and coordinates TAP/Lifeline issues with DHS and with NARUC
mn.gov/puc 651-296-0406 1-800-657-3782
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Questions?Mike McCarthyUtility AnalystPublic Utilities CommissionMichael.McCarthy@state.mn.us651-201-2208
Tracy SmetanaPrograms CoordinatorPublic Utilities CommissionTracy.Smetana@state.mn.us651-296-0406
mn.gov/puc 651-296-0406 1-800-657-3782