CTIA Summaries | March 2010

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Table of Contents Broadband Competition and Innovation Policy .......................................................................................... 1

Spectrum ....................................................................................................................................................... 5

Infrastructure ............................................................................................................................................... 9

Universal Service High Cost, Intercarrier Compensation, and Contribution Methodology..................... 11

Universal Service: Low Income .................................................................................................................. 15

Universal Service: E-Rate ........................................................................................................................... 17

Universal Service: Rural Health Care ......................................................................................................... 18

Accessibility for Broadband Adoption ....................................................................................................... 19

Smart Grids ................................................................................................................................................. 21

Public Safety ............................................................................................................................................... 23

The following summaries were compiled by CTIA – The Wireless Association® (“CTIA”) to inform the Board of Directors on issues presented by the National Broadband Plan. This summary focuses on several of the areas of interest to the wireless industry and are those most likely to see FCC action. The Plan covers an extremely wide range of issues, and is more than 350 pages in length. For more information, or if you have any questions, please contact any member of the CTIA policy staff.

Chris Guttman-McCabe Vice President, Regulatory Affairs

The following CTIA policy staff members are subject matter experts on the information presented herein: Universal Service Intercarrier Compensation

Scott Bergmann Assistant Vice President, Regulatory Affairs

SBergmann@ctia.org 202.736.3660

Broadband Competition and Innovation Policy Spectrum

David Redl Director, Regulatory Affairs

DRedl@ctia.org 202.736.3220

Infrastructure Public Safety Smart Grids

Brian Josef Director, Regulatory Affairs

BJosef@ctia.org 202.736.3253

Accessibility for Broadband Adoption Matthew Gerst Counsel, External and State Affairs

MGerst@ctia.org 202.736.3216

Broadband Competition and Innovation Policy

1

Networks The federal government should make more spectrum available for existing and new wireless broadband providers in order to foster additional wireless-wireline competition at higher speed tiers.

Likely to enhance mobile competition.

More spectrum makes possible faster download speeds, which would allow wireless technologies to serve as closer substitutes to fixed broadband providers.

The Federal Communications Commission (“Commission” or “FCC”) and the Bureau of Labor Statistics

should collect more detailed and accurate data on actual availability, penetration, prices, churn and

bundles offered by broadband service providers to consumers and businesses, and should publish

analyses of these data.

Revise Form 477 to collect data relevant to broadband availability, adoption and competition at the census block level.

o Availability for mobile service should be defined by coverage specs determined by FCC. o Include information on spectrum used by facilities-based providers. o Collect broadband service provider ownership and affiliation data.

Transition to collecting location-specific subscribership data by provider, technology, actual speed and offered speed.

o Utilize consumer-driven data collection methods. o To comply with the ECPA, investigate using third-parties to collect, aggregate and

anonymize location-specific subscribership data.

Collect price, switching costs, customer churn and market share information. o Collect data on advertised prices, prices actually paid by subscribers, plans, bundles and

promotions of fixed and mobile broadband services that have material penetration among users by provider and geographic area.

o Collect information related to switching barriers, such as ETFs and contract length. o Collect data on customer churn and providers’ share of gross subscriber additions. o Collect data required to determine whether broadband service is being denied to

potential residential customers based on income in particular geographic areas.

Make the collected data available to the public. o Including via the Internet in a broadband data depository. o Exceptions for copyright-protected and competitively sensitive materials. o Implement processes that make data not accessible to the public available to academic

researchers. o Publish data analysis in existing annual reports (Wireless Competition, 706 reports).

BLS should resume its computer and Internet use supplement.

The FCC and NIST should establish technical broadband performance measurement standards and

methodology and a process for updating them. The FCC should also encourage the formation of a

partnership of industry and consumer groups to provide input on these standards and methodology.

Determine technical standards and methodology to measure performance of fixed broadband connections, including speed and quality-of-service metrics.

Encourage the industry to create a Broadband Measurement Advisory Council to provide input

Broadband Competition and Innovation Policy

2

Key characteristics that may be measured include: o Actual speeds and performance over the broadband service provider’s network. o Actual speeds and performance at peak use times. o Actual speeds and performance achieved with a given probability over a set period that

includes peak use times. o Actual speeds and performance tested against a given set of standard protocols and

applications. The FCC should continue its efforts to measure and publish data on actual performance of fixed

broadband services. The FCC should publish a formal report and make the data available online.

Explore contracts with third parties to complete.

Conduct pilot projects on different measurement and reporting approaches.

Data should be made available on a searchable website.

Publish a formal “State of US Broadband Performance” report that details information about actual performance of top service providers.

The FCC should initiate a rulemaking proceeding by issuing a NPRM to determine performance

disclosure requirements for broadband.

Include both data that a reasonable customer can understand as well as more detailed disclosures for more interested parties.

Improve information availability for consumer decision-making. o Develop a “broadband digital label” that summarizes service performance.

Sample labels are provided in the Plan. o Consider a service performance disclosure item with required speeds for different

applications. o Establish appropriate disclosure standards for contractual commitments. o Conduct consumer research with FTC to identify the disclosure obligations that would

be most useful to consumers. The FCC should develop broadband performance standards for mobile services, multi-unit buildings

and small business users.

For mobile broadband services, create standards of measurement by location, carrier and spectrum band usage as input for future rulemaking.

Maintain and expand initiatives to capture user-generated data on coverage, speeds and performance.

Work with measurement companies, application designers, device manufacturers and carriers to create an online database to help consumers make better choices for mobile broadband and to spur competition, while ensuring privacy protections.

Encourage industry to create more transparent and standard disclosures of coverage, speeds and performance for mobile networks.

o Work with industry to identify the unique challenges of mobile disclosure to decrease consumer confusion.

o Follow same roadmap as created for fixed broadband disclosures, including the identification of consumer needs, the standardization of technical measurements and the creation of clear and simple consumer disclosure obligations.

Broadband Competition and Innovation Policy

3

Wholesale Competition Proposals

The FCC should comprehensively review its wholesale competition regulations to develop a coherent

and effective framework and take expedited action based on that framework to ensure widespread

availability of inputs for broadband services provided to small businesses, mobile providers and

enterprise customers.

The FCC should ensure that special access rates, terms and conditions are just and reasonable.

Establish an analytical approach that will resolve these debates comprehensively and ensure that rates, terms and conditions for these services are just and reasonable.

The FCC should ensure appropriate balance in its copper retirement policies.

The FCC should clarify interconnection rights and obligations and encourage the shift to IP-to-IP

interconnection where efficient.

Clarify rights and obligations regarding interconnection to remove any regulatory uncertainty.

Determine what actions it could take to encourage transitions to IP-to-IP interconnection where that is the most efficient approach.

The FCC should move forward promptly in the open proceeding on data roaming.

Encourage mobile broadband providers to construct and build networks.

The industry should adopt voluntary data roaming arrangements.

The FCC should move forward promptly in its open proceeding on roaming obligations for data services provided without interconnection with the public switched network.

Broadband Competition and Innovation Policy

4

Applications Congress, the FTC and the FCC should consider clarifying the relationship between users and their online profiles.

Several questions need to be addressed: o What obligations do firms that collect, analyze or monetize personal data or create

digital profiles of individuals have to consumers in terms of data sharing, collection, storage, safeguarding and accountability?

o What, if any, new obligations should firms have to transparently disclose their use of, access to and retention of personal data?

o How can informed consent principles be applied to personal data usage and disclosures? Congress should consider helping spur development of trusted “identity providers” to assist consumers in managing their data in a manner that maximizes the privacy and security of the information. The FCC and FTC should jointly develop principles to require that customers provide informed consent before broadband service providers share certain types of information with third parties. The federal government should create an interagency working group to coordinate child online safety and literacy work, facilitate information sharing, ensure consistent messaging and outreach and evaluate the effectiveness of governmental efforts. The working group should consider launching a national education and outreach campaign involving governments, schools and caregivers.

Spectrum

5

New Spectrum

500 MHz of spectrum for broadband in the next 10 years

300 MHz in the 225 MHz – 3.7 GHz range in the next 3 years

Band Actions/Timing MHz Reallocated/Repurposed

WCS (2.3 GHz Band) 2010 Order 20

AWS-2/AWS-3

2010 Order 2011 Auction

60

700 MHz D Block 2010 Order 2011 Auction

10

MSS 2010 Order (L-Band and Big LEO) (L Band: SkyTerra and Inmarsat) (Big LEO: DBSD and TerreStar) 2011 Order (S-Band) (S Band: Globalstar and Iridium)

90

Broadcast TV 2011 Order 2012/13 Auction 2015 Band Clearing

120

Total 300

WCS: Revise technical rules to permit broadband use, manage out of band emissions (“OOBE”) and protect adjacent services. The Plan mentions both time division duplexing (“TDD”) and orthogonal frequency division duplexing (“OFDM”) as new technologies that could permit broadband in the band by alleviating interference concerns. AWS-2/AWS-3:

AWS-3 spectrum (potentially including J Block at 2175-2180 MHz) to be paired with spectrum from the Department of Defense’s 1.7 GHz spectrum.

o FCC and NTIA to conduct an analysis on possibility of reallocation of spectrum in 1.7 GHz band by 10/1/2010.

o Unclear what the Plan intends… title calls for 20 MHz, but text discusses up to 25 MHz.

AWS-2 J Block is discussed with respect to synergies with AWS-3 (2175-2180 MHz) and MSS (2020-2025 MHz is adjacent to the DBSD allocation).

AWS-2 H Block not mentioned beyond initial discussion.

700 MHz D Block: Auction for commercial use with technical conditions that will permit (not require) the licensee to enter into an agreement with the public safety broadband licensee.

Must use a common air interface standard, the Plan all but mandates that it be LTE.

Authorized public safety users have roaming rights and priority access rights on D Block.

Licensee must “develop and offer devices that operate both on the D Block and on the neighboring public safety block*.+”

Subject to “commercially reasonable buildout requirements.”

Spectrum

6

Mobile Satellite Service: MSS licensees should be given greater flexibility for terrestrial deployments.

L-Band (SkyTerra and Inmarsat): “accelerate efforts to rationalize ATC-authorized L-Band spectrum to make it suitable for broadband ATC service.”

S-Band (TerreStar and DBSD): “add a primary ‘mobile’ (terrestrial) allocation to the S-Band” to allow providers to offer a stand-alone terrestrial service subject to buildout benchmarks, participation in an incentive auction (CONGRESSIONAL ACTION REQUIRED), or other conditions to account for the increase in the value of the license.

Big LEO Band (Globalstar and Iridium): grant licensees flexibility and make the spectrum permanently suitable for terrestrial broadband.

Broadcast TV: FCC offers five suggestions for extracting efficiencies from broadcasters. 1. Update rules on service area boundaries to reflect DTV reality and repack broadcast spectrum users

under new rules.

“Repacking alone could potentially free up to 36 MHz of spectrum from the broadcast TV bands.”

2. Establish a framework to permit two or more stations to share an existing 6 MHz channel.

Use existing channel for two OTA HD broadcasts or one OTA HD and several OTA SD broadcasts.

The Plan quotes broadcaster claims on the quality of their OTA HD offerings.

Preserves must-carry and will monitor for broadcast ownership consolidation. 3. Determine rules for auction of reclaimed spectrum.

CONGRESSIONAL ACTION REQUIRED

If Congress permits (see Incentive Auctions), stations voluntarily relinquishing spectrum will get a cut of the auction proceeds.

FCC should take actions to mitigate any OTA viewers who lose stations as a result of infrastructure and spectrum sharing through monitoring of the process, with an eye toward localism, diversity and opportunities for new entrants/minorities.

4. If the Commission doesn’t get incentive auction authority – or – broadcasters don’t volunteer

enough spectrum there are other options:

Cellular architecture (CTIA/CEA White Paper).

Auction of overlay licenses for secondary use.

More extensive (required) channel sharing. 5. Additional measures to increase efficiency.

Broadcast spectrum fees.

LPTV DTV Transition.

Clear up VHF reception issues to reduce requests for UHF spectrum.

Trust Fund for public media (see Chapter 15 of the Plan). Additional Considerations:

FCC and NTIA should develop a joint roadmap to identify additional spectrum for reallocation.

FCC should promote flexible allocation criteria through ITU.

FCC should consider the unique needs of tribal communities.

See also, “Free or Low Cost Wireless Service” in the Universal Service: Low Income summary.

Spectrum

7

Spectrum Utilization Information Spectrum Dashboard: http://reboot.fcc.gov/reform/systems/spectrum-dashboard The Spectrum Dashboard is an interactive spectrum map on the FCC’s website that provides information on spectrum use and spectrum licensees from 225 MHz to 3.7 GHz. Ongoing Measurements: The FCC and NTIA should develop systems for ongoing measurement of spectrum use, including potentially mounting spectrum scanners on postal vehicles or other nomadic fleet vehicles. Triennial Assessment of Allocations: The Commission and NTIA should undertake a complete evaluation of spectrum allocations every three years.

Reallocation Mechanisms CONGRESSIONAL ACTION REQUIRED

Incentive Auctions:

The Plan proposes that the Congress grant the Commission the authority to use market-based mechanisms (a portion of auction proceeds or a two-sided auction) to incent inefficient spectrum users to relinquish rights.

Changes to Commercial Spectrum Enhancement Act (CSEA):

Congress should learn lessons from the AWS-1 relocation and permit additional flexibility in reimbursing incumbents for relocation costs.

Promote shared infrastructure through compensation to agencies for using commercial services and non-spectrum-based services in lieu of relocating to other spectrum bands.

Assessment of Spectrum Fees:

Congress should permit the FCC and NTIA to charge fees to spectrum users (commercial and government).

Not applicable to “exclusive flexible use” spectrum.

Cites to U.K. regulator Ofcom’s “Administrative Incentive Pricing” which has been used to incent commercial and government spectrum holders to relinquish rights to spectrum going un- or under-used.

o Fees start low and are raised over time to in response to usage levels.

NO CONGRESSIONAL ACTION REQUIRED Evaluate the Effectiveness of Secondary Markets:

The FCC should examine incentives to secondary markets, reduce transaction costs, and

evaluate emerging technologies for dynamic spectrum use.

Spectrum

8

Wireless Backhaul

Spectrum Sharing Among Part 74, Part 78 and Part 101 Licensees:

The Commission should facilitate sharing between the Broadcast Auxiliary Service, Cable TV

Relay Service, and microwave services.

FCC should consider making all “white spaces” below 1 GHz available for backhaul in rural

markets.

Changes to Technical Rules:

Greater spatial reuse of microwave frequencies (particularly in urban areas).

Modify throughput rules to permit adaptive modulation.

Remove restrictions on antenna size.

Permit use of higher frequencies under Part 101.

Pursuing Innovative Spectrum Access Models

Unlicensed Spectrum:

The Commission should free up a contiguous unlicensed band within the next ten years.

TV White Spaces:

The Commission should resolve the outstanding Petitions for Reconsideration in the white spaces

proceeding in order to remove uncertainty and spur innovation.

Opportunistic Use:

There are actions the Commission can take to spur development:

Permit opportunistic radios to operate in all FCC held spectrum.

Initiate a proceeding to extend the white spaces geo-location database to other spectrum

bands.

o Specifically discusses the fact that user behavior must be predictable for such an

approach to succeed.

Investigate the possibility of opportunistic devices acting as “listening posts” for free or underused spectrum, with reporting in real time to the database.

Infrastructure

9

Improving Utilization of Infrastructure (Pole Attachments) Pole Attachment Rental Rates:

The FCC should establish rental rates for pole attachments that are as low and close to uniform as possible, consistent with Section 224 of the Act, to promote broadband deployment.

o Arcane rate structure of Section 224 results in higher costs for broadband to consumers; has resulted in “near-constant” litigation regarding whether cable vs. telecom rate applies to wireless, VoIP, etc.

o FCC should aim to establish rates as close as possible to cable rate. Reducing Other Costs Associated with Pole Access:

The FCC should adopt rules that will lower the cost of the pole attachment “make-ready” process.

Timely access to poles and delays with rearranging or installing new poles adds cost and delay to broadband deployment. To lower the cost of the make-ready process and to speed it up, the FCC should:

o Establish a schedule of charges for the most common categories of work. o Codify the requirement that gives attachers the right to use space- and cost-saving

techniques (e.g., boxing, extension arms, potentially pole top space) where practical and consistent with pole owners’ use of those techniques.

o Allow attachers to use independent, utility-approved and certified contractors to perform all engineering assessments and make-ready work, as well as independent surveys, under the joint direction and supervision of the pole owner and the new attacher.

o Ensure that existing attachers take action within a specified period (such as 30 days) to accommodate a new attacher (e.g., through mandatory timelines and rules allowing a new attacher to move existing communications attachments if the timeline is not met).

o Tie payments for make-ready work to actual performance, rather than all payment up front. Streamlining Access and Dispute Resolution:

The FCC should establish a comprehensive timeline for each step of the Section 224 access process and reform the process for resolving disputes regarding infrastructure access.

o Time is of the essence and the current process favors pole owners and incumbent communications attacher. Establishment of firm timelines for all steps in access process, from application to final permit is needed.

o FCC should establish a timeline for process of certifying wireless equipment for attachment. o In disputes, awarding compensation dating from denial of access could speed dispute

resolutions.

The FCC should improve the collection and availability of information regarding the location and availability of poles, ducts, conduits and rights-of-way (searchable databases, etc.).

Harmonization of Access / Federalization of Approach:

CONGRESSIONAL ACTION REQUIRED

Congress should consider amending Section 224 of the Act to establish a harmonized access policy for poles. Specifically, the new statutory framework could:

o Establish a minimum set of criteria under federal law. o Give all broadband service providers, whether wholesale or retail, the right to access pole

attachments based on reasonable rates, terms and conditions.

Infrastructure

10

o Provide access within standard timelines established by the FCC, and give the FCC the authority to award damages for non-compliance.

The FCC should establish a joint task force with state, tribal and local policymakers to craft

guidelines for rates, terms and conditions for access to public rights-of-way. o There is wide diversity among state and local policies regarding access to and payment for

accessing public rights-of-way. The FCC should convene a joint task force of state, local and tribal authorities with a six month charge to:

Investigate and catalog state and local rights-of-way practices and fee structures. Identify public rights-of-way and infrastructure policies and fees consistent with the

goal of broadband deployment and those that are inconsistent with that goal. Identify and articulate rights-of-way construction and maintenance practices that

reduce capital and maintenance costs and that avoid unnecessary delays. Recommend guidelines for what constitutes “competitively neutral,”

“nondiscriminatory” and “fair and reasonable” rights-of-way practices and fees. Recommend a process for the FCC to use to resolve disputes under Section 253.

Improving Utilization of Infrastructure (Rights-of-Way)

Rights-of-Way – Maximizing the Impact of Federal Resources:

The U.S. Department of Transportation (”DOT”) should make federal financing of highway, road and bridge projects contingent on states and localities allowing joint deployment of conduits by qualified parties.

The Executive Branch should develop one or more master contracts to expedite the placement of wireless towers on federal government property and buildings.

o Attempt to build on U.S. Government Services Administration (“GSA”) guidelines & National Antenna Program allowing wireless antennas on federal buildings and land.

o Federal government owns 650 million acres (nearly 1/3 of U.S. land area); GSA owns or leases space in 8,600 buildings.

CONGRESSIONAL ACTION REQUIRED

Congress should consider enacting “dig once” legislation applying to all future federally funded projects along rights-of-way (including sewers, power transmission facilities, rail, pipelines, bridges, tunnels and roads).

o Trenching policies offer considerable cost savings because bulk of fiber (e.g., for backhaul) costs come from installation.

o Suggests DOT give 90 days before beginning projects to allow others to join.

Congress should consider expressly authorizing federal agencies to set the fees for access to federal rights-of-way on a management and cost recovery basis.

o Would eliminate instances where agencies must charge higher fees based on land value rather than direct costs.

Universal Service High Cost, Intercarrier Compensation, and Contribution Methodology

11

National Broadband Availability Target

Goal #3 of THE PLAN: “Every American should have affordable access to robust broadband service….”

FCC must set “National Broadband Availability Target” (“NBAT”) to guide public funding.

NBAT: 4 Mbps actual download speed, and 1 Mbps of actual upload speed (with FCC review every 4 years).

NBAT Gap: 14 million people live in 7 million households (“HHs”) that do not have access to NBAT.

FCC estimates $24 billion required to close this broadband availability gap. o Estimated cost to deploy network -- $33.4 billion. o Estimated revenues available from network (incl. voice, data, and video) -- $9.1 billion.

USF High Cost Fund is projected to make outlays of $4.6 billion in 2010.

High Cost Reform Overview Comprehensive Reform Required:

Current USF High Cost and Intercarrier Compensation (“ICC”) framework will not close the availability gap.

Reform should be guided by 4 principles: o Support broadband directly. o Maximize broadband availability (recognize finite resources, and focus on unserved areas). o No flash cuts. o Federal and state coordination.

Reform would take place in three stages over 10 years (see timeline below).

Proposed reforms would enable build-out to 99% of households by 2020.

The Plan states that the FCC should consider its legal authority to promulgate USF High Cost recommendations.

FCC Should Create Connect America Fund (CAF):

Long range goal is to replace all legacy high cost programs with a new program that preserves the connectivity that Americans have today and enables all HHs to have access to a network that satisfies the NBAT.

CAF should provide funding only in geographic areas where there is no private sector business case.

Support should be based on net gap between total costs and total revenues (i.e., forward-looking costs less revenues), and based on “neutral geographic areas” such as Census-based areas.

o Costs include capital expenses and on-going costs, incl. middle mile. o Revenues include voice, data, and video revenues. o Also take into account: impact of ICC reform, ARRA funding, role of state high USF.

Only one subsidized provider of broadband per geographic area (“subsidizing duplicate, competing networks in such areas . . . would impose significant burdens on the USF. . . .”).

Eligibility should be company- and technology-agnostic, as long as it meets FCC specifications.

Identify ways to drive funding to efficient levels, including “market based mechanisms where appropriate” to determine 1) firms that receive support and 2) amount of support.

Universal Service High Cost, Intercarrier Compensation, and Contribution Methodology

12

Recipients of CAF support must be accountable and subject to enforceable timelines. o Broadband provider-of-last resort (“POLR”) obligation. o Timelines for reaching unserved areas. o Subject to service quality and reporting requirements.

FCC Should Create Mobility Fund:

Mobility Fund to provide one-time support for deployment of 3G networks to bring all states to a minimum level of 3G or better mobile service availability.

3G wireless networks cover 98% of US population. “*I+t is not clear that government intervention will be necessary to enable a robust mobile broadband ecosystem in most parts of the country.”

Some states have materially lower 3G deployment (e.g., AK 77% and WV 71%) than the national average.

“The FCC should select an efficient method, such as a market-based mechanism, for supporting mobility in targeted areas.”

FCC Should Identify Opportunities to Shift Funds from Existing Programs to Advance Broadband Goals: The Plan identifies four areas where support can be moved from current use to broadband. THE PLAN estimates that these changes would free $15.5 billion (present value) for new funds over the course of 10 years.

FCC should issue order implementing Verizon Wireless and Sprint phase-downs. ($3.9B PV)

FCC should phase out legacy high cost support to competitive CETCs. ($5.8B PV) o Subsidizing many CETCs for voice support is “inefficient.” o Phase out support to zero over 5 years, completed in Stage 2.

Immediately adopt rule that treats wireless family plans as single line for USF funding.FCC should require rate-of-return carriers to move to incentive regulation. ($1.8B PV)

o Revenue neutral in first year, but freezing per line Interstate Common Line Support (ICLS) would limit growth overtime.

o Notes that FCC would need to determine “new methodology for providing appropriate levels of support to sustain service in areas that already have broadband.”

FCC should redirect Interstate Access Support (IAS) received by price cap ILECs to broadband deployment. ($4B PV)

o Notes that existing IAS recipients would not necessarily receive same funding levels under CAF.

Redirected funds would be used as follows: o $4 billion will go to combination of: Mobility Fund; potential revenue replacement from ICC

reform; expanding Rural Health Care Fund up to cap; indexing E-Rate; and conducting pilot programs for broadband Lifeline program.

o $11.5 billion: redirected to CAF

FCC Should Examine Middle-Mile Costs and Pricing: Cost of 2nd mile and middle mile impacts cost of providing broadband in unserved areas. FCC should review as part of USF/ICC proceedings. Consider Use of Satellite to Reach Hardest to Serve Areas: For the last two-tenths of one percent of unserved housing units, the Commission should consider alternative technological approaches including satellite.

Universal Service High Cost, Intercarrier Compensation, and Contribution Methodology

13

Intercarrier Compensation

FCC Should Adopt Long-Term Framework for ICC Reform: Three key elements.

Establish glide path to reduce (then eliminate) per minute charges. o FCC has authority to establish a new methodology, but Congress could make explicit FCC’s

authority over intrastate rates. o Stage One – reduce intrastate rates to interstate levels in equal increments over period of

time (2-4 years). o Stage Two -- reduce interstate rates to reciprocal compensation levels in equal increments.

Reduce originating access charges. Transition all terminating rates to a “uniform rate per carrier.”

o Stage Three -- Elimination of above cost charges should encourage carriers to negotiate alternative arrangements. FCC should phase out per minute rates. Carefully monitor for market power, particularly in areas without competition.

Provide carriers with opportunity for adequate cost recovery. o FCC should permit gradual increases in subscriber line charges. o FCC should encourage states to complete rebalancing of local rates. o Some carriers may still need USF from reformed funds. FCC could impute “residential local

rates that meet an established benchmark.”

FCC should adopt interim solutions to address arbitrage. o Prohibit carriers from stripping information necessary for a terminating carrier to bill for a

call. o Adopt rules to reduce access stimulation. o Address treatment of VoIP traffic for purposes of ICC.

Contribution Methodology

FCC Should Broaden the USF Contribution Base: Consensus that current base should be broadened,

differing views on how to proceed. Adopt revised methodology so that USF remains sustainable over

time. Minimize opportunities for arbitrage as new products and services developed.

Universal Service High Cost, Intercarrier Compensation, and Contribution Methodology

14

High Cost and ICC Reform Timeline

Issue Stage One (2010-2011)

Stage Two (2012-2016)

Stage Three (2017-2020)

USF – High Cost

Create Connect America Fund and Mobility Fund

Start CAF and Mobility Fund disbursements; determine

on-going support needed for areas that already NBAT;

decide rights/responsibilities where ILEC is not POLR

Eliminate legacy high cost programs

Adopt rules to eliminate IAS and retarget to broadband

Adopt rules to move ROR carriers to incentive regulation

Begin implementation of Sprint/VZW commitments

Adopt rules to phase out CETC support to zero over 5 years

Phase out all remaining CETC support

USF – Contribution

Implement reformed contribution methodology

ICC Adopt framework for long-term reform

Begin ICC reductions Phase out per minute rates

Implement interim measures to curb arbitrage

Additional High Cost Notes

FCC Should Keep Total Size of the USF close to its Current Size: 2010 projected expenses are approximately $8.7 billion. Notes that “the only significant parts of the fund that remain uncapped are the Low Income program” and ICLS for small, ROR carriers. Congress Should Consider Additional Funding for CAF: A few billion $ per year over 2-3 year period would enable country to achieve NBAT faster and to ease glide path for implementing other reforms. FCC Should Improve USF Performance and Accountability: USF revisions should have “accountability and oversight provisions built in from the outset.” FCC should adopt increased data collection and reporting requirements to ensure funds are used effectively. FCC Should Design new USF Funds in “Tax Efficient” Manner. FCC Should Solicit Input from Tribal Governments: Regarding changes to USF and ETC decisions.

Universal Service: Low Income

15

Low Income – Key Findings FCC Recommendations Seek to Address “Cost Barriers” To Adoption:

65% of Americans use broadband at home. The other 35% are generally older, poorer, less educated, more likely to be a racial or ethnic minority, or have a disability.

36% of non-adopters list “cost” as primary reason.

40% of adults with HH incomes less than $20k have broadband at home v. 93% of HHs with income over $75k.

Approximately 29% of eligible HHs participate in current USF low income programs.

Expand USF Lifeline and Link-Up to Make Broadband More Affordable FCC Should Revise Lifeline and Link-Up to Make Broadband More Affordable:

Low Income USF support should be available for service bundles with voice. FCC and States should require eligible telecommunications carriers (ETC s) to offer Lifeline discounts for any bundled service that includes voice. Enabling subsidies to flow to bundles that include data services will make broadband more affordable.

Expand provider eligibility to include any broadband provider that “meets the criteria established by the FCC.”

FCC Should Facilitate Pilot Programs with Low Income Support For Broadband:

FCC should facilitate pilot programs with different elements and provide information on how to implement the most efficient and effective long-term broadband support mechanism.

o FCC should permit consumers to apply Lifeline discounts to any service offering a broadband service that meets the “standards established by the FCC.” [Note: NBAT is 4 Mbps downlink, 1 Mbps up – does this apply to Lifeline recommendations, as well?]

o Pilot programs could experiment with: Levels of subsidy. Minimum payment requirements for consumers. Subsidies for installation. Subsidies for customer premises equipment (“CPE”).

FCC And States Should Lower Barriers To Participation In Low Income Programs: FCC should integrate the expanded Lifeline and Link-Up programs with other state and local e-government efforts.

Universal Service: Low Income

16

Consider Free or Low Cost Wireless Broadband FCC Should Consider Using Special Spectrum Rules as “Inducement” to Provide Free – or Low Cost – Wireless Broadband:

License spectrum through auction, “conditioned” on offering of free or very low cost broadband.

Advertising-supported service.

Similar to free over-the-air broadcast television service.

Sufficient connectivity for basic package of services.

Consumer would need to purchase device.

May be unlikely to compete with paid services.

Service could reduce the USF contributions needed to fund Lifeline broadband service.

Must give special attention to whether there is a suitable band for this purpose.

[Note: Summary does not include numerous other adoption proposals (e.g. National Broadband Clearinghouse) that are not directed specifically at wireless.]

Universal Service: E-Rate

17

E-Rate Funding for Wireless Connectivity to Portable Learning Devices FCC Should Initiate Rulemaking to Fund Wireless Connectivity to Portable Learning Devices:

On-line learning can occur anywhere, anytime. Demand for wireless services in education is growing rapidly.

Students and teachers should be allowed to take wireless devices off campus so they can continue learning outside school hours.

E-Rate should provide Priority 1 discounts for these services.

FCC should consider a pilot program to determine demand levels and cost-effectiveness.

Other E-Rate Recommendations to Modernize Educational Broadband Infrastructure

FCC Should Act on Other Recommendations to Amend E-Rate Program to Help Modernize Educational Broadband Infrastructure:

Act on pending NPRM to allow free use of school broadband networks for community and other non-educational purposes.

Initiate NPRM to raise the annual cap on E-Rate Program funding to account for inflation.

Initiate NPRM to set broadband connectivity goals for schools and libraries based upon speed, quality of service, number of peak active users, and services used.

Provide more E-Rate Program funding for requests for internal connections.

Provide schools and libraries more flexibility to purchase the lowest-cost, highest-value broadband service, regardless of whether it is a fully leased or a mixed lease/own solution.

Initiate NRPM to streamline the E-Rate Program application process.

Modify E-Rate forms to allow for collection, analysis and publication of additional quantifiable and standardized data about how schools and libraries connect to the Internet.

Encourage E-Rate Program applicants to use state, regional, tribal and local networks and resources to make E-Rate purchases more cost efficient.

FCC should award some E-Rate Program funds using a competitive process for proposals that best incorporate broadband into educational plans.

CONGRESSIONAL ACTION REQUIRED

Congress should explore ways to remove legal and technical barriers that may prevent tribal libraries from receiving E-Rate Program support.

Congress should consider providing additional funds to public community colleges for broadband connectivity.

Universal Service: Rural Health Care

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USF RHC – Key Findings FCC and Congress Should Close Health IT Broadband Connectivity Gap:

Health care providers’ broadband needs largely driven by rapidly increasing amount of digital health-related data.

Small health providers can achieve satisfactory results with 4 Mbps, while large providers need substantially more bandwidth.

Need more data on state of broadband connectivity for health care providers.

Current USF RHC program is underutilized: less than 25% of 11,000 eligible institutions participate.

Proposals to Ensure Sufficient Connectivity For Rural Health Care FCC and Congress Should Ensure Sufficient Connectivity for Health Care Delivery Locations:

FCC should replace the existing Internet Access Fund (25% discount) with a Health Care Broadband Access Fund that would:

o Support bundles of services. o Provide discount levels based on:

Price discrepancies for similar services. Ability to pay. Lack of access. Public or safety net status.

The FCC should establish a Health Care Broadband Infrastructure Fund to subsidize network deployment to health care delivery locations where existing networks are insufficient.

o Builds on FCC’s current RHC Pilot Program. o Criteria for selecting applicants: need, sustainability, state or region-wide networks, build on

existing technology. o Participants must make at least a 15% match. o Simplify administration and application.

The FCC should authorize participation in the Health Care Broadband Funds by long-term care facilities, offsite administrative offices, data centers and other similar locations.

To protect against waste, fraud and abuse in the Rural Health Care Program, the FCC should require participating institutions to meet outcomes-based performance measures to qualify for Universal Service Fund subsidies, such as HHS’s meaningful use criteria.

CONGRESSIONAL ACTION REQUIRED

Congress should consider providing support for for-profit institutions that serve particularly vulnerable populations.

Congress should consider authorizing an incremental sum (up to $29 million per year) for the Indian Health Service (“HIS”) for the purpose of upgrading its broadband service to meet connectivity requirements.

Note: Summary focuses solely on USF RHC program and does not include numerous other proposals seeking to harness broadband to advance health care goals.

Accessibility for Broadband Adoption

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Accessibility Findings Key Findings: The adoption survey conducted for the Plan found that among people with disabilities only 42%

have adopted broadband, and 39% of all non-adopters have a disability, much higher than the 24% of overall survey respondents.

The Plan recommends that accessibility be addressed principally through a combination of expanding the scope of the FCC’s disabilities regulations covering broadband-related services and encouraging a more expansive role for the federal government in promoting the development of accessibility technologies.

Executive Branch Recommendations Broadband Accessibility Working Group (“BAWG”): Establish a federal inter-agency working group to monitor and report on agency compliance with

Section 508. Explore whether public funds may be use to establish a network-based delivery system for assistive

technology (“AT”) applications to allow users to “call up” accessible features anytime, anywhere, and on any device. (See Chapter 9, FN 132, citing that the use of Medicare is limited to “durable medical equipment.”)

Report on the state of broadband accessibility biennially using information obtained from surveys under the Broadband Data Improvement Act (“BDIA”).

Accessibility Innovation Forum: An industry and consumer advocacy forum to discuss and make recommendations on emerging

accessibility issues, including learning from consumers, sharing best practices, demonstrating new products or solutions and presenting an annual Accessibility and Innovation Award.

Develop an online/new media portal to allow individuals to seek information about accessibility issues in order to increase the potential for easily resolved complaints.

U.S. Department of Justice Regulatory Reforms Americans with Disabilities Act (“ADA”) Applies to the Internet: The U.S. Department of Justice should amend its regulations to clarify that commercial websites

must comply with the ADA to make reasonable accommodations for persons with disabilities. Recommend the U.S. Attorney General “carry out his statutory duty” to submit a biennial report to

the President and Congress on agency compliance with Section 508.

Accessibility for Broadband Adoption

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FCC Regulatory Reforms CONGRESSIONAL ACTION REQUIRED

Video Programming Accessibility: Congress should clarify the FCC’s authority to impose the Video Description rules. Universal Service Fund: Congress should authorize the FCC to apply up to $10 million per year to support AT for individuals

who are deaf or blind and apply up to $10 million per year for competitive awards for developers who offer accessible solutions.

NO CONGRESSIONAL ACTION REQUIRED Section 255 Requirements for Advanced Communications Services: Extend Section 255 rules to require “advanced services” providers and manufactures of end-user,

network equipment and software to make their products accessible as defined in H.R. 3101. The Plan states that H.R. 3101 uses the “undue burden” standard which “should be a starting point”

with respect to the FCC’s assessment of its current jurisdiction over non-interconnected VoIP, text-based and video communications service providers and manufacturers.

Hearing Aid Compatibility (“HAC”) Rules: Extend HAC requirements to cover any device that provides voice communications via a built-in

speaker typically held to the ear. NOTE: The FCC is already under an obligation to update the HAC rules in 2010.

Real-Time Text Standard for VoIP: Open a proceeding to implement a standard to ensure real-time text communication is available

anytime VoIP is available and supported. This proceeding should be coordinated with the FCC’s proceedings on NG911.

Video Programming Accessibility: Determine the FCC’s jurisdiction to require accessibility of video programming distributed over the

Internet, the devices used to display such video programming, related guides and menus. This may likely include requirements for closed captioning and video description.

Telecommunication Relay Services (“TRS”) and Fund: Establish a separate subsidy program for broadband services and AT under the TRS Fund. Determine whether IP-based TRS services should qualify for the TRS Fund.

Smart Grids

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Smart Grids Key NBP Observations Regarding Smart Grids:

Lack of mission-critical, wide-area broadband networks capable of meeting the requirements of Smart Grids threatens to delay implementation.

Utilities’ traditional, private narrowband networks, while highly reliable, are not able to support the growing number of endpoints.

Commercial networks are not ubiquitous and utilities have not historically used them for mission-critical applications.

Commercial wireless networks can become congested or may fail completely.

The nation should pursue three parallel tracks to address the threat of delayed deployment:

1. Hardening commercial networks to support mission-critical applications.

FCC should begin a proceeding to explore reliability and resiliency of commercial broadband communications networks.

The North American Electric Reliability Corporation (“NERC”) should revise its Critical Infrastructure Protection (“CIP”) security requirements to provide utilities guidance on the use of commercial and shared networks for critical communications.

2. Providing utilities access to the public safety mobile broadband network for mission-critical communications.

CONGRESSIONAL ACTION REQUIRED

Congress should consider amending the Communications Act to enable utilities to use the proposed public safety 700 MHz wireless broadband network.

3. Empowering utilities to build and operate their own mission-critical broadband networks.

The National Telecommunications and Information Administration (“NTIA”) and the FCC should continue their joint efforts to identify new uses for federal spectrum and should consider the requirements for Smart Grid.

New broadband networks in such identified bands should meet standards of interoperability, customer data accessibility, privacy and security; use of identified networks for Smart Grid should not be mandated to avoid stranded investments.

The U.S. Department of Energy (“DOE”), in collaboration with the FCC, should study communications requirements of utilities.

Smart Grids

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Encouraging Energy Efficiency in Homes and Businesses

by Making Energy Data Available

Every state public utility commission should require regulated utilities to provide consumers access to, and control of, historical consumption price and usage data over the Internet by the end of 2010; every investor-owned utility should implement this capability by the end of 2011.

CONGRESSIONAL ACTION REQUIRED

If states fail to develop policies in the next 18 months, Congress should consider legislation.

States should give federal government limited access to utility bills from homes receiving energy efficiency funds; consider how parties may access aggregate, anonymous data for research purposes.

FERC should adopt model consumer digital data accessibility and control standards.

DOE should consider consumer data accessibility policies when evaluating Smart Grid grant applications, report on the states’ progress toward enacting consumer data accessibility and develop best practices for states.

U.S. Department of Agriculture’s Rural Utilities Service should prioritize Smart Grid loans to electric cooperatives and favor Smart Grid projects from states and utilities with strong consumer data accessibility policies.

Public Safety

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Nationwide Interoperable Public Safety Wireless Broadband Network Creation of a Public Safety Wireless Broadband Network:

Authorize public safety licensees to partner with commercial operators in construction and operation of networks, and allow non-public safety entities (e.g., utilities) to use spectrum on a secondary basis, with monies reinvested in public safety network.

o Immediately begin rulemaking to require CMRS providers to give public safety users the ability to roam on 700 MHz commercial networks and potentially other bands; grant priority access rights for public safety entities on that spectrum; and provide reasonable compensation for commercial operators for such access.

o Quickly license D Block for commercial use, subject to the same technology as public safety broadband licensees (FCC should consider mandating LTE), and new roaming and priority access requirements.

o Require D Block and potentially other 700 MHz licensees to offer devices capable of providing service using all 700 MHz spectrum in 3GPP Band 14, and identify path toward large-scale production of devices available across all 700 MHz bands.

o Give commercial licensees the same statutory liability protection for public safety roaming/priority access communications as is available for 911 calling.

o With Department of Homeland Security (“DHS”) and U.S. General Services Administration (“GSA”), provide rate schedules for access to commercial networks and equipment.

o Redesign “Project Roll Call,” which is used to determine the operational status of wireless and broadcast communications and help restore operations.

CONGRESSIONAL ACTION REQUIRED

o Consider imposing a “minimal public safety fee” on all broadband users to provide

sustainable and reasonable funding sufficient to support the operation and evolution of the public safety broadband network.

o With appropriations from Congress, create Emergency Response Interoperability Center (“ERIC”) to work with DHS and National Institute of Standards and Technology (“NIST”) to develop interoperability and operating standards.

o Principally through Congress, fund a grant program to improve public safety networks via, e.g., in-building fixed and mobile microcells, subject to ERIC standards compliance.

o Prior to start of 2010 hurricane season, amend Stafford Act to permit limited assistance for public and for-profit entities, including broadcasters and communications providers, to maintain/restore critical broadband communications services during major disasters.

Additional federal government efforts to support public safety broadband network: o Survey public safety broadband wireless infrastructure and devices through support of

Federal Emergency Management Agency (“FEMA”) data collection efforts. o Ensure that broadband satellite service is a part of federal agencies’ emergency

preparedness programs.

Public Safety

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Promoting Cybersecurity and Protecting Critical Infrastructure

Issue a cybersecurity roadmap within 180 days of release, in coordination with Executive Branch, establishing a two-year plan with milestones for FCC action.

Initiate a proceeding to expand outage reporting requirements to broadband service providers (ISPs and interconnected VoIP).

Create a voluntary cybersecurity certification regime, including audits.

With DHS, create a cybersecurity information reporting system (“CIRS”) to accompany the FCC’s Disaster Information Reporting System (“DIRS”).

Begin an inquiry to evaluate commercial broadband network resilience under physical failures or severe overload, including in the last mile to residential access networks.

With the National Communications System, create and manage priority network access and routing for broadband communications to protect critical information from loss or delay.

Leveraging Broadband Technologies to Enhance

Emergency Communications With the Public

Next Generation 911 (NG911):

By December 1, 2011, National Highway Traffic Safety Administration (“NHTSA”) should prepare a report to identify nationwide NG911 deployment costs across platforms, Public Safety Answering Point (“PSAP”) readiness, and disabilities access for VoIP and Real Time Text standards.

Address IP communications devices, applications and services by expanding existing FCC rulemaking proceeding to explore NG911 and location accuracy; reevaluate consumer expectations for non-voice 911 communications and initiate an additional proceeding to address how NG911 can accommodate non-voice devices and services.

CONGRESSIONAL ACTION REQUIRED

Congress should consider a federal framework that removes jurisdictional barriers and inconsistent legacy regulations, further curtails non-911 use of 911 funds, and restores the E911 Implementation Coordination Office.

Alert Systems:

Launch a comprehensive next-generation alert system inquiry, considering the Emergency Alert Service, Commercial Mobile Alert Service (“CMAS”) and especially FEMA’s Integrated Public Alert & System (“IPAWS”), while moving to a ubiquitous alert transmission system for multiple platforms and participation by all public and private sector stakeholders.

Executive order or similar means to clarify each federal agency’s responsibility in next-generation alerting systems, including milestones and benchmarks.