ITA Weekly Update Thank You ITA 2013 All Event Sponsors: This Week's Headlines: Roger Kregel Receives Award at ITA Video Conference Governor Rejects INS Bids to Purchase ICN USF-ICC Transformation Order Update: FCC Publishes Census Blocks for Round 2, CAF Phase I Apps ITA Joins State Coalition on Rate of Return Comments ...... Iowa LinkedUp Update: Smart-Farm Demo Continues to Highlight Broadband in Media Event to Highlight Technology, Economic Development August 30, 2013 Broadband Update: Education Translates to Higher Likelihood for Broadband IUB Update: Lifeline Awareness Week IUB Allows Clear Lake to Discontinue Service to 2 Customers Western Iowa Telephone to CLEC in Kingsley IUB Cancels Gazelle Link Certificate Compliance Update: FCC Regulatory Fees Due September 20 USAC Publishes FCC Form 481 Industry Update: NECA and ATIS Initiate Call Completion Tests NARUC Updates Federalism Task Force Report USDA Rural Development Hosts Roundtables Video Provider Update: IUB Grants Video Franchise to Hawkeye This Week's Headlines # Roger Kregel Receives Award at ITA Video Conference Congratulations to Roger Kregel of Dumont Telephone Company, who received the ITA Video Committee Person of the year award. Each year we award committee members that have gone over and above the call of duty. Typically we have presented the award at Convention each year but we felt it would be more meaningful to present the award at our event this year. Dave Duncan, Roger Kregel and Video Chair, David Gibson In addition to serving on the video committee Roger has served on the ITA Board, was the 2007 ITA Chairman, he has also served on the ITA manager’s training committee, the broadband council, the legislative committee and the industry relations committee. As you can see Roger is very committed to our industry and we are thankful to have him on our team. Roger has severed on the ITA Video Committee for 5 years. Roger is always quick to volunteer to call speakers, help obtain sponsors and do whatever we need. Back to Top # Governor Rejects INS Bids to Purchase ICN Governor Branstad has agreed with the recommendation of the ITTC to reject both bids by Iowa Network Services to purchase the ICN. The multi-year process set in place by the surprise passage of House File 45 in 2011 directing the ITTC to solicit bids to buy or lease the ICN resulted in two bids from INS, and no bids from any other entity. "Though I appreciate the time and effort it took for Iowa Network Services to develop their bids, I believe the ICN is worth more to the State of Iowa than what the bidder was willing to pay," said Branstad. "Not only were the bids significantly less than the amount the state has invested in the network over the years, the bids were less than the recent $25 million upgrade of the network." "It would be a disservice to the taxpayers of Iowa to sell this important asset for pennies on the dollar," Branstad continued. "The ICN has been an important resource for Iowans over the past two decades, and we believe it can continue to provide an important service to those who depend on it," said the Governor. The Legislature has the authority to override the Governor’s decision, but there are no indications it is inclined to do so. A story about the announcement can be found here from the Des Moines Register. To see a copy of the media release announcing the Governor’s decision, click here. Back to Top USF-ICC Transformation Order Update # FCC Publishes Census Blocks for Round 2, CAF Phase I Apps; Challenges Due September 27th The Wireline Competition Bureau has published a list of all census blocks that price cap carriers have requested funding to serve as part of the second round of Connect America Phase I. The machine readable list of the requested census blocks is available by clicking here. Each census block listing includes the fifteen digit Federal Information Process Standards code for the block, the relevant state, the name of the carrier that submitted the block, and an indication of whether that carrier is challenging the block in question. Interested parties have until September 27th to challenge price cap carriers’ Phase I deployment plans by demonstrating that a block in question is already served by fixed Internet access with the requisite speeds. Parties will then have until October 27th to respond. The FCC reminds that all challenges and responses must be supported by evidence. The challenge process will focus on speed of broadband service and not questions such as latency, capacity, price and availability of voice service. The FCC will use data from the most recent National Broadband Map as evidence in any challenge. Back to Top # ITA Joins State Coalition on Rate of Return Comments ITA joined 23 other state and regional rural associations in filing Reply comments with the FCC last week. The Association comments urged the FCC to reject the staff report issued by the Wireline Competition Bureau staff recommending reductions in the authorized Rate of Return for RLECs from 11.25% down to between 8.06% and 8.72%. The Associations pointed out that of 14 comments filed in the initial round, only two supported the FCC’s position, yet neither of those provided any facts or data supporting any reduction in the RoR. In contrast many of the other commenters opposing the RoR reduction provided detailed data analysis showing that the authorized RoR should be kept at 11.25% or even raised. Click here to read the comments. In related news, a coalition of NECA, NTCA, USTelecom, ERTA and WTA filed Reply comments arguing that the FCC should not reduce the rate of return without specifying a procedure for giving all parties a full opportunity for hearing. The parties also said the FCC should firsts develop methods to analyze the cost of capital for RLECs that reflect the diverse, highly competitive, and increasingly uncertain telecommunications environment faced by RoR carriers. The presence of USTelecom in these comments was noteworthy in support of the rural arguments. Click here to read the National Associations’ comments. Back to Top Iowa LinkedUp Update # Smart-Farm Demo Continues to Highlight Broadband in Media Last week’s Iowa LinkedUp smart-farm demonstration continues to get positive media coverage with more to come in the near future. In order to highlight the importance of broadband connectivity in rural communities and agriculture, the Iowa LinkedUp PR Team hosted a media event to demonstrate the use of the new "Clear2there" smart-farm technology on Wednesday of last week. Hosting the event simultaneously from a farm in Emerson with a Clear2there customer along with a videocast of the demonstration at Iowa Network Services, several journalists in attendance are now filing stories highlighting our message. Here are links to recent stories resulting from this event that appeared in the Des Moines Register, on the Brownfield Radio Network and KCCI-TV. Back to Top # Ft. Dodge Event to Highlight Technology, Economic Development The Iowa LinkedUp PR Team has partnered with the Greater Ft. Dodge Growth Alliance for a showcase event to highlight technology, telecommunications and innovation in economic development. Iowa's Crossroads of Global Innovation industrial park project will serve as the back drop for a series of presentations that ties the importance of broadband connectivity to economic growth projects in Iowa’s communities. This regional economic development workshop is scheduled from 10:00 am to 2:00 pm on Thursday, October 3 at the Bioscience Center on the campus of Iowa Central Community College. Steven Collier, Vice President Business Development of Milsoft Utility will be the keynote speaker at this event. Collier’s experience in the world of utilities and economic development is broad and he has a passion for rural telecommunications. Luke Palmer, General Affairs Manager for the CJ BIO America facility in Ft. Dodge will share his story about the role technology played in their location. Managers are encouraged to attend this important forum. The registration fee is $30. Click here to register for the event. Back to Top Industry Update # NECA and ATIS Initiate Call Completion Tests This week, NECA and the Alliance for Telecommunications Industry Solutions (ATIS) announced they will launch a voluntary Joint National Call Testing Project (JNCTP). The test will allow IXCs, mobile carriers and VoIP providers to identify call completion issues on calls destined to areas served by volunteer local exchange carriers. It also will allow these providers to capture network and routing data relative to call failures and to enhance internal network performance and/or underlying carrier performance as needed. Click here to access the Joint National Call Testing Project webpage. Back to Top # NARUC Updates Federalism Task Force Report The National Association of Regulatory Utility Commissioners (NARUC) published an update to its 2005 report on Federalism and telecom laws and regulations. NARUC states that much has changed since its original years, including texting, computer based calling, VoIP, and expanded FCC jurisdiction. NARUC notes that as the nation moves forward with the transition from traditional, regulated TDM7 wireline networks to IP-enabled services, wireless, and other new forms of communications, the States and NARUC members support a continued focus by all parties on: Protecting consumers; Ensuring that networks remain ubiquitous and interconnected regardless of communications technology or end user location; Ensuring public safety by maintaining universally available, robust, and reliable networks regardless of communications protocol or end user device; Ensuring that voice and broadband service are ubiquitously available to all citizens at rates that are affordable and reasonably comparable and with reasonably comparable functionality, regardless of technology. Click here to read the Report. Back to Top # USDA Rural Development Hosts Roundtables Rural Development State Director Bill Menner continues his frequent roundtable meetings with local residents, business owners and community leaders to share thoughts about opportunities and challenges in rural Iowa. Menner has scheduled the following meetings that are open to the public: September 12th from 9:00 am to 10:30 am in the Civic Center/City Hall, 200 1st Street NE in Waverly September 12th from 1:00 pm to 2:30 pm at the Upper Explorerland Conference Room, 134 W Greene Street in Postville September 17th from 1:00 pm to 2:30 pm in the Center for TownCraft – second floor meeting room, 1124 Willis Avenue in Perry Back to Top Broadband Update # More Education Translates to Higher Likelihood for Broadband Connection According to a recent study released by the Pew Internet & American Life Project, the higher education a consumer has, the higher the likelihood the consumer has a broadband connection at home. The study showed that nearly 90 percent of college graduates have high-speed Internet, compared to 37 percent of those who have not graduated from high school. By contrast, Connect Iowa says that in Iowa, 82 percent of college grads have adopted a high speed Internet connection. The Pew study also showed those under 50 and who make at least $50,000 are also most likely to have a high-speed connection. The Pew study found that nearly 80 percent of Americans have either a broadband connection, a smartphone, or both. For more information on the Pew study, click here for a story from www.pcmag.com. Back to Top IUB Update # Lifeline Awareness Week The IUB is promoting Lifeline Awareness Week again this year, from September 9th through the 15th. The effort seeks to expand awareness of Lifeline benefits to potentially eligible Iowans. In order to satisfy ETC requirements, ITA members must publicize the availability of Lifeline, and this is a good way to do so. Click here to see the 2013 Lifeline Awareness Poster and click here for a Lifeline Awareness Fact Sheet. Next week, the IUB will be issuing a news release about Lifeline Week. Back to Top # IUB Allows Clear Lake to Discontinue Service to Two Non-Responding Customers The IUB has granted the request by Clear Lake Telephone to discontinue service to two customers who would not allow Clear Lake to install FTTH on their property. One customer insisted that the ONT be attached on a particular location on that customer's premises, but Clear Lake established via an independent electrician that the location does not meet the electrical code. The other customer posted a sign on his property stating "Keep Out" and refuses to communicate with Clear Lake. Despite repeated attempts by letter, phone and in person, those two customers would not allow the conversion. After investigation, the IUB approved the discontinuance of service to the two customers effective August 30, 2013, and requires Clear Lake to file a status report on that date and include a copy of the final discontinuance letter it is sending out. Click here to read the Order. Back to Top # Western Iowa Telephone to CLEC in Kingsley Western Iowa Telephone filed an Application for Certificate of Public Convenience and Necessity modification to initiate competitive local exchange carrier service in the Frontier exchange of Kingsley, Iowa. Western Iowa Telephone requests an effective date of October 1, 2013. Click here for more. Back to Top # IUB Cancels Gazelle Link Certificate Since receiving its certificate in 2007, Gazelle Link has regularly filed annual revenue reports with the IUB stating that it does not have any revenues or access lines in Iowa. The IUB determined that since it does not appear that Gazelle Link is providing local exchange service in Iowa, its certificate should be cancelled, and it ordered the company to withdraw its tariff within 30 days. The IUB will also close the docket examining Gazelle Link’s application for ETC designation. Back to Top Compliance Update # FCC Regulatory Fees Due September 20 The FCC has issued a Public Notice stating that it must receive regulatory fee payments from all regulated entities for fiscal year 2013 by the end of the day on September 20th. Annual fee filers are encouraged to begin the filing process as soon as possible; late filings are subject to a penalty of 25% of the fee amount. Filers should visit the FCC’s "fee filer system" website for specific information about their FY 2013 regulatory fees, and to begin the filing and payment process. All companies must access their online FCC's Fee Filer system with their FCC registration number (FRN) and password to determine the total fee amount. # USAC Publishes FCC Form 481 USAC has published the electronic version of Form 481 which all ETCs must file by October 15th. Form 481 is the new annual report including financial and operations information that is used to validate the recipient companies’ support eligibility for high cost or low income funds. Click here to go to the USAC Forms page. Back to Top Back to Top Video Provider Update # IUB Grants Video Franchise to Hawkeye The IUB has issued a state-issued video franchise to Hawkeye Telephone to provide video service to the unincorporated rural areas of Chickasaw, Fayette, Clayton, Bremer, Buchanan, Delaware, Dubuque, Howard, Winneshiek, and Allamakee counties. Hawkeye states its service area will not include any area within the corporate limits of any municipality. Hawkeye intends to commence video service in the proposed service area no later than October 1, 2013. Back to Top