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Universal Service To Universal Access
© 1995 - International Research Center

| PREV | CONTENTS | APPENDIX E - STATE-BY-STATE SUMMARIES | NEXT |

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APPENDIX E - STATE-BY-STATE SUMMARIES

State Profile Data Sources

STATE DEMOGRAPHICS:

1. Population: 1993 Residential Population, U.S. Bureau of Census, Current Population Report.
2. Size: 1990 Total Square Mile Area, U.S. Bureau of Census, Census of Population and Housing.
3. Proportion rural: 1990 Urban and Rural Population, U.S. Bureau of Census,

Census of Population and Housing.

1. Population per sq. mile: 1993 Population per Square Mile of Land Area,

U.S. Bureau of Census, Census of Population and Housing.

1. Median household income: 1992 Money Income of Households -- Median Income,

U.S. Bureau of Census, Current Population Report.

1. Percent below poverty: 1992 Persons Below Poverty Level, U.S. Bureau of Census,

Current Population Report.

1. Percent on public assistance: 1992 Public Assistance Recipients (AFDC and SSI),

complied by U.S. Bureau of Census.

TELEPHONE SERVICE DEMOGRAPHICS:

1. Number of lines: 1993 Total Presubscribed Lines,

FCC Statistics of Communication Common Carriers (Table 2.3).

1. Number of LECs: 1994/5 Number of LECs Operating in State, Under Agency Jurisdiction of Not, NARUC Compilation of Utility Regulatory Policy 1994-1995.
2. BOC: State contact
3. Market share of BOC: 1993 Bell Company Percent of Total Lines in State,

FCC Statistics of Communication Common Carriers (Table 2.3).

1. Penetration rate: 1994 (March) Percent of Households with Telephone Service,

FCC Statistics of Communication Common Carriers (Table 1.5).

1. Local exchange competition allowed: 1994 NARUC Report on the Status of Competition in Intrastate Telecommunications.

OPASTCO STUDY:(Keeping Rural America Connected: Costs and Rates in a Competitive Era,

1994. Study of OPASTCO 424 small rural LECs.)

1. Subscribers per sq. mile: 1992 Subscribers Per Square Mile Served for Rural Telephone Companies (Fig 2.1 - Col. E).
2. Difference in non-BOC loop costs: 1993 Percentage Difference Between the UFS Cost per Loop for BOCs and Non-BOC LECs (Fig. 2.6).
3. Monthly revenues per customer: 1992 Local Service Revenues per Subscriber per Month

(Fig 4.4 - Col. A).

1. Revenues if supports eliminated: 1992 Revised Monthly Local Service Revenues if supports mechanisms were eliminated (i.e., DEM weighting, 25% gross allocator to subscriber line usage, USF, and Lifeline/Link-up America programs) (Fig. 4.4 - Col. C).
2. Percent who would disconnect: Percent who said they would disconnect service if local service rates went to revised levels (Fig. 5.2 - Col. C). Based on survey of 1,872 residential subscribers.

TELEPHONE SERVICE TECHNOLOGY:

1. Copper, Fiber, Hybrid Fiber, Microwave, Other Technology: State contact
2. Percent local loop digital: 1993 Percent of Total Equipped Local Loop Circuits (KM) that

are Digital, but does not include interoffice circuits. Computed from FCC Statistics of

Communication Common Carriers (Table 2.2).

State Profile Data Sources (Continued)

ADVANCED TELECOMMUNICATIONS:

1. Cable households: 1994 Cable Households as a Percent of Television Households,

A.C. Nielson Company, Media Research Services Group, US Television Household Estimates.

1. Cable in schools: 1993 Cable in the Classrooms as a percent of Total Schools,

Cable in the Classroom Members, Quality Education Data, Nielson Media Research.

TELEPHONE SERVICE RATES:

1. BOC residential rate(s): State contact and state documents.
2. LEC residential rates: State contact and state documents.

UNIVERSAL TELEPHONE SERVICE PROGRAMS:

1. Status of State Universal Service Program: State contact
2. Targeted groups: State contact and state documents.
3. Definition of basic service: State contact and state documents.

STATE UNIVERSAL SERVICE FUND:

1. Fund Administrator: State contact and state documents.
2. Contributors: State contact and state documents.
3. Basis for contribution: State contact and state documents.
4. Types of subsidies: State contact and state documents.
5. Who draws from fund: State contact and state documents.
6. Is subsidy portable: State contact and state documents.

FEDERAL UNIVERSAL SERVICE FUNDS:

1. Lifeline: State contact and state documents.
2. Link-up America: State contact and state documents.
3. High Cost Fund: State contact and state documents.

PENDING ACTIONS: State contact and state documents.

COMMENTS: State contact and state documents.

ADVANCED TELECOMMUNICATION SERVICES:

1. Programs to Access Video/cable Services: State contact, state documents, and NASTD.
2. Programs to Access to Advanced Information Services: State contact, state documents, and NASTD.
3. Programs for Electronic Access to Government Documents/Records: State contact, state documents, and NASTD.
4. Private/public Partnerships: State contact, state documents, and NASTD.

1995 NTIA/TIIAP GRANTS: Telecommunications & Information Infrastructure Assistance Program (TIIAP), National Telecommunications and Information Administration (NTIA),

U.S. Department of Commerce (DOC).

ALABAMA

Contact: Mary Newmayer, Federal Affairs Advisor

Alabama Public Service Commission

PO Box 991

Montgomery, Alabama 36101

(334) 242-2968 Fax: (334) 242-2041

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 4,187,000 Number of lines: 2,025,288

Size: 52,237 Number of LECs: 34

Proportion rural: 39.6% BOC: BELL SOUTH

Population per sq. mile: 82.5 Market share of BOC: 80.5%

Median household income: $25,891 Penetration Rate: 90.7%

Percent below poverty: 17.1% LEC competition permitted: 8/95

Percent on public assistance: 7.1%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 13.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 46.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $18.94 Percent local loop digital: 18.59%

Revenues if supports eliminated: $30.42 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 65.0% BOC residential rate (s): $15.00-$16.00

Cable in schools: 68.0% LEC residential rates: to

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The APSC currently has a docket and workshop on US. The purpose of the workshop is to determine if there is a need for a USF, who it should address, who would be eligible, and who should contribute. A recent docket put Bell under price cap so rates will be lowered. There are no pending rate cases. South Central Bell rates will be flat or go down in the future. LEC rates will generally go up to the level of Bell. A recent PSC order required non-Bell LECs to upgrade technology, if they go under price cap.

COMMENTS: Alabama is in the beginning stages of determining the need for a US support mechanism. They currently don't have a definition of basic service or US, but this will be addressed in the workshop.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Cable companies are participating in the US workshop. A number schools use cable to provide distance learning. The PSC does not regulate cable.

Programs to access advanced information services: This is not part of the US workshop. Local access to Internet is not an issue in Alabama. It is being taken care of in urban areas, but this may come up in workshop.

Programs for electronic access to public/government records: Some state agencies are on Internet, but not the commission. Commission doesn't currently have access to Internet. The Department of Industrial Relations Job Kiosk Project has two touch screen kiosks to be placed in high traffic areas such as shopping malls.

Public/private partnerships: Some LECs have a classroom tariff to provide distance learning capabilities. They may expand this to include hospitals.

1995 NTIA/TIIAP GRANTS

University of South Alabama Center for Health Information, Community Health Information Network (CHIN) will give doctors and support staff in area hospitals and health centers access to patient records and medical information. This will increase the quality of care available to this remote and poor population. (Total $595K, Federal $225K)

ALASKA

Contact: Phil Trever and Lou Craig

Communication Common Carrier Specialists

Alaska Public Utility Commission

1016 W 6th Ave., Suite 400

Anchorage, Alaska 99501

(907) 276-6222 Fax: (907) 276-0160

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 599,000 Number of lines: 316,873

Size: 615,230 Number of LECs: 23

Proportion rural: 32.5% BOC: na

Population per sq. mile: 1.1 Market share of BOC: 0.0%

Median household income: $41,969 Penetration Rate: 91.6%

Percent below poverty: 10.0% LEC competition permitted: policy barrier

Percent on public assistance: 6.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.3 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: Yes

Monthly revenues per customer: $20.94 Percent local loop digital:

Revenues if supports eliminated: $34.73 Other Technology: Satellite, BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 50.0% BOC residential rate (s): na

Cable in schools: 35.0% LEC residential rates: $5.00 to $30.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) in initial stage of rule making process

Targeted Groups: None

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The APUC has a rule making docket to adopt US. They are recommending that basic service should include 911, 411, 611, single party, touch tone, white page listing, data transmission over voice grade analog lines and access to optional digital services. The statute allows creation of USF for long distance. Some rural areas have very low penetration rate and are likely targets for US. The APUC is recommending that LECs can only draw from USF, if they participate in the federal programs. At this time they are not sure if there will be a fund or if there is a need for one. If they do set up a USF, all providers will contribute to the fund. Alaska 2000 includes development of a statewide telecommunications plan. The PUC had no rate cases before it.

COMMENTS: Alaska is very dependent on Federal support and they have low subscribership rates in some rural areas. They are looking at issue of US and how to increase subscribership. Alaska has such high cost, they are hoping technology will help them solve the problem.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Rural Alaska TV network (RATNET) provided TV to 248 rural villages via satellite, but state support has been cut and the program ended. It has been succeeded by Alaska Rural Communications Service (ARCS) a rural radio network owned and operated by Native Americans with some state support.

Programs to access advanced information services: One of the principals in the APUC's recommendations says rural areas should have access to advanced information services. They have Internet access providers but not in rural areas. University in Alaska provide access to Internet in rural areas. The PUC has an open docket to upgrade to RUS rules to provide certain data services.

Programs for electronic access to public/government records: The Statewide Library Electronic Doorway(SLED) provides free local access to 93% of population and includes government and business information. The Commission has a Web page and bulletin board. The state created a WWW home page and all state agencies are required to create home pages. They are also exploring the possibility of expanding the WWW service to allow for transaction based processing through Internet services (e.g., renew and pay for driver's licensing, motor vehicle registration, and ferry reservations).

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Bethel Broadcasting, Inc. Distance Delivery Consortium will use grant funds to connect the people of the Delta with each other, Alaska and the rest of the world. The project will provide remote Alaskan villages with low-cost, local modem access to a commercially owned and operated network. (Total $734K, Federal $441K).

State of Alaska Division of Libraries, Archives, and Museums, Southeast Alaska Network (SEAkNet) will provide residents of rural Southeast Alaska access to the information highway via the Statewide Library Electronic Doorway (SLED) for residents of seven isolated communities in Southeast Alaska. They will be able to access in Internet, connect to their state library and government offices, and access information on health, education, community services, and commerce. (Total $598K, Federal $223K)

ARIZONA

Contact: Jim Fisher, Executive Consultant

Utilities Division

Arizona Corporation Commission

1200 W. Washington Ave.

Phoenix, Arizona 85007

(602) 542-4251 Fax: (602) 542-5560

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,936,000 Number of lines: 2,066,054

Size: 114,006 Number of LECs: 14

Proportion rural: 12.5% BOC: US West

Population per sq. mile: 34.6 Market share of BOC: 94.0%

Median household income: $29,593 Penetration Rate: 94.1%

Percent below poverty: 15.1% LEC competition permitted: 7/95

Percent on public assistance: 6.4%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 2.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 82.2% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $21.05 Percent local loop digital: 98.47%

Revenues if supports eliminated: $30.69 Other Technology: BETRS

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 56.0% BOC residential rate (s): $13.18

Cable in schools: 53.0% LEC residential rates: $4.50 to $21.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND:

Fund Administrator: BOC (US West)

Contributors: LECs, BOC, IXCs

Basis for contribution: Surcharge per access line for LECs and per minute of use on intrastate toll carriers

Types of subsidies: Rate subsidy

Who draws from fund: LECs with high cost (only one currently)

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The ACC is developing a more structured, rule based US program. ACC staff have developed proposed rules which will be before the Commission during the 1st quarter of 1996. This proposed rules define basic service as access to a one-party voice grade line for residential service with touch tone capabilities, access to interexchange carriers, 911, 411, operator services, a white-page directory listing, and telephone relay services for the hearing impaired. Contributors to the fund will include LECs, the BOC, IXCs, and wireless providers including cellular, paging and Commercial Mobil Radio services. The current fund doesn't require everyone to contribute. Contributions for providers of local exchange service will be based on the number of access lines, while IXCs' contributions will be based on percent of total revenues. Any LEC may seek support from the fund with a rate request. A rate subsidy will be provided based on the LECs costs exceeding an ACC established benchmark cost. US West is the proposed interim administrator of the fund, but that responsibility will shift to an independent third party by July 1996.

COMMENTS: Currently Arizona's US support mechanism is being used by one company. They have a rulemaking proposal that will refine the state's USF, establishing a more structured, rule based US program for Arizona. The state also maintains a telephone assistance program which provides discounted services to the medically needy. The Arizona DES administers the program in cooperation with the ACC and the BOC.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Corporate affiliates of local cable entities are seeking authorization to operate as toll carriers in the state and are being reviewed by the ACC for same. Northern Arizona University's NAUNet is a statewide interactive distance learning network encompassing over 20 independent sites. It is complemented by their NAU Learning Alliance network of more than 100 satellite downlink sites. A metropolitan broadband network, ECNet, has been in trials for several years over existing cable infrastructure as a coalition of Arizona State University, DEC, and Cox Communications aiding Computer Integrated Manufacturing applications.

Programs to access advanced information services: The Governor established the Telecommunications Policy Office to spearhead the effort to promote the development of advanced telecommunication services in Arizona. The Office is responsible for establishing and coordinating statewide telecommunications policy. The Arizona State Public Information Network (ASPIN) is based at Arizona State University (ASU) and has through their statewide backbone connected the three universities, urban and rural community colleges and many other public organizations and communities to the Internet. The Arizona Department of Education (ADE) provides AzEdLink, a program for dial-in Internet access for K-12 schools. AzTeC is the state's Free-Net, currently providing Internet access to over 12,000 and placing public access terminals in the Phoenix area. Arizona Health and Information Network (AZ-HIN) is a non-profit consortium using the Internet to connect hospitals, libraries, teaching and health care institutions.

Programs for electronic access to public/government records: The Corporation commission has a STARPAS program that provides paid access to Commission documents (corporation names, filings, etc.) by local dial-in. They have completed the pilot implementation of a WWW page and will be soon providing public access on the Internet. The Legislature is introducing the Arizona Legislative Information System (ALIS) this session to provide a wide range of Internet accessible legislative information.

Public/private partnerships: The Arizona Telecommunications and Information Council (ATIC) is an economic development foundation providing a forum and facilitation for telecommunications development and advanced applications deployment. Datalink has been a pilot program to discover, catalog and route trade related information that may be further developed.

1995 NTIA/TIIAP GRANTS

City of Phoenix, Information Technology Department, will broaden access to its existing network, PhoenixNet, to three underserved target groups, including elderly, disabled, and economically disadvantaged, in 24 public access computer sites established throughout the city. They will also further develop the range of information and services available by dial-in and Internet access with their "Phoenix at your fingertips" program (Total $572K,Federal $225K).

Navajo Community College Development Office. This project, in coordination with ASPIN, will expand several existing pilot projects by developing a telecommunications infrastructure consisting of a digital microwave system to link seven NCC campuses and T1 data links to connect the college system to the Internet to form a single virtual campus for the Navajo Nation (Total $469K, Federal $225K).

ARKANSAS

Contact: Sam Loudenslager

Sen. Telecommunications Analyst

Arkansas Public Service Commission

1000 Center Bldg.

Little Rock, Arkansas 72201

(501) 682-5821 Fax: (501) 682-5731

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 2,424,000 Number of lines: 1,172,258

Size: 53,182 Number of LECs: 27

Proportion rural: 46.5% BOC: Southwest Bell

Population per sq. mile: 46.6 Market share of BOC: 68.2%

Median household income: $28,893 Penetration Rate: 90.0%

Percent below poverty: 17.4% LEC competition permitted: prohibited

Percent on public assistance: 6.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 9.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 54.6% Fiber : Yes Microwave: No

Monthly revenues per customer: $16.71 Percent local loop digital: 99.41%

Revenues if supports eliminated: $28.66 Other Technology: ISDN

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 60.0% BOC residential rate (s): $14.00

Cable in schools: 64.0% LEC residential rates: $5.00 to $32.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: no

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: BOC (Southwestern Bell)

Contributors: LECs, BOC, wireless, IXC

Basis for contribution: % of retail billed minutes of use

Types of subsidies: Rate subsidy

Who draws from fund: LECs with intrastate NTS costs per loop greater than 115% of statewide weighted average

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Statute gives commission authority to develop USF. Commission hasn't held any hearings since 1986. Fund is to be phased out by 2000 for three companies. Currently there is a Commission order to look at need to continue or change USF. Commission has taken other steps to increase subscribership by participating in Federal programs. GTE rate case - last rate case reduced GTE from $11 to $6. Rates are expected to move upward initially, then back down as competitors start to enter the market.

COMMENTS: Arkansas is keenly aware of importance of universal service, and US will get more attention due to competition. The big question is how do you know if you need fund? They don't want to loose US due to local competition. They want to make sure people continue to have access to telephone services.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The APSC has no authority over cable service and no cable operators have applied for certification to provide voice and data services.

Programs to access advanced information services: Act 737 creates the Telecommunications and Information Technology Fund and establishes the Joint Committee on Advanced Communications and Information Technology to review legislation pertaining to telecommunications and public information access as well as setting up the Governor's Telecommunications and Information Advisory Board. Act 10069 appropriates $2 million from the Telecommunications and Information Technology Fund for grants to public and non-profit entities for the development of a statewide distance learning and telecommunications network.

Programs for electronic access to public/government records: Joint standing committee under Act 737 will look at universal access to government information. Act 1139 creates the Information Network of Arkansas (INA) as a centralized electronic information system by which public information in Arkansas will be provided via dial-in modem and through links to public libraries.

Public/private partnerships: In last SW Bell rate case, over earnings will be used to upgrade infrastructure in hospitals & schools in state.

1995 NTIA/TIIAP GRANTS

Arkansas Delta Housing Development Corporation, Small-Town Anti-Information Redlining (STAIR) project is an 18-month planning project designed to involve local citizens, small-town municipal governments, universities and community organizations in the evolution of the local information infrastructure. (Total $209K, Federal $96K)

CALIFORNIA

Contact: Jack Leviza, Chief of Telecommunication Branch

Advisory & Compliance Division, Room 0323

California Public Utility Commission

San Francisco, California 94102

(415) 703-1060 Fax: (415) 703-1965

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 31,211,000 Number of lines: 18,015,735

Size: 158,869 Number of LECs: 23

Proportion rural: 74.0% BOC: Pacific Bell

Population per sq. mile: 200.1 Market share of BOC: 77.7%

Median household income: $35,173 Penetration Rate: 95.2%

Percent below poverty: 15.8% LEC competition permitted: 7/95

Percent on public assistance: 10.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 5.8 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 74.8% Fiber : Yes Microwave: No

Monthly revenues per customer: $20.64 Percent local loop digital: 9.6%

Revenues if supports eliminated: $48.77 Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 64.0% BOC residential rate (s): $11.25

Cable in schools: 58.0% LEC residential rates: $11.25 to $17.80

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost, Low income/economically disadvantaged

Definition of basic service: Touch tone, voice grade, 911, directory assistance, operator assistance, white pages, long distance, repair service, and privacy protection

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Independent third party

Contributors: LECs, BOC, IXCs, wireless

Basis for contribution: % of billable revenues

Types of subsidies: Rate subsidy for high cost; Company paid difference between rate and subsidy

Who draws from fund: LECs with high cost or eligible subscribers

Is subsidy portable: Yes, for low income

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: No High Cost: Yes

PENDING ACTIONS: California has a major rule making investigation looking at a complete revision of US in response to local competition. State has a US rate statewide that subsidizes individuals. The high cost program will change but not individual subsidy. They plan on being done by the end 1997. They don't want the US program to be less than what exists today, and some are advocating a broader definition. The future US program will target groups that are below statewide penetration rate. They don't currently participate in Lifeline and Link-up America, because they will not validate income. The issue of income validation may be reconsidered. Also, they may eliminate subsidy to non-low income in rural areas. There have been some general rate cases for smaller LECs. There are no new entrants yet, but some are applying - up to 40 new carriers, and 20 resellers. In long run residential rates may go up since the current rate may be too low. Deaveraging of rates may cause some rural rates to go up while urban rates may stay flat. They are investigating wireless technology to serve underserved areas.

COMMENTS: California has the oldest and largest program in the country. It was the model for the Federal programs. Changes in local competition are requiring them to look at a major revision of the program.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The PUC doesn't regulate cable.

Programs to access advanced information services: This may be part of revised program. PUC is seeking Federal authority to use US funds to support advanced information applications. Local call access to Internet is an issue in the state. Legislation passed to encourage availability of telecommuting as a work option and 2 year pilot program completed. Recently passed digital signature law to encourage electronic commerce.

Programs for electronic access to public/government records: There is a statewide program to make government documents accessible on the Internet. Commission has web page. The Legislature has a widely-acclaimed program for Internet access of Bills, available for tracking and in full text along with Committee activity. All state agencies are mandated to develop timetables and plans to provide basic electronic access to public databases. UC Berkeley's Digital Library Project is developing technologies for intelligent access to massive, distributed collections of multi-media documents.

Public/private partnerships: Smart Valley is an extensive, successful and widely-modeled after public-private consortium. They facilitate development of flagship applications in advanced information and telecommunications areas, advance a regional approach to NII deployment in "Silicon Valley" to create an electronic community, foster economic development and drive public awareness and education. Their Joint Venture: Silicon Valley Network hosts a interactive public presence on the Mercury Center online service. The California Voter Foundation (CVF) provides the California Online Voter Guide on the Internet and AOL describing candidates and issues. CommerceNet is one of the first and perhaps most successful large-scale market trials of electronic commerce on the Internet. In 1993, Pacific Bell created the California Research and Education Network (CalREN), a $25M program to stimulate the development of new applications for high-speed data communications services in telemedicine, online schools, electronic democracy, and new business partnerships and ventures.

1995 NTIA/TIIAP GRANTS

Western Consortium for Public Health Dept. of Technical and Information Services, with a variety of public and private partners, will demonstrate and evaluate the benefits of video conferencing and remote-data entry/information gathering via wireless telecommunications in a rural public health environment (Total $1,581K, Federal $668K).

HandsNet, Inc., currently brings together more than 4500 public interest and human service organizations across the U.S., providing them with useful on-line information and relevant electronic discussions (Total$400K, Federal$200K).

LA County Office of Education Educational Telecommunications Network (ETN) will carry out a comprehensive telecommunications planning process yielding a replicable planning model for schools to use in customizing their infrastructure design (Total$415K, Federal $165K).

Plugged In-Learning Through Technology will introduce electronic networks to address the specific needs of a variety of underserved members of the local communities in less affluent E Palo Alto (Total $440K, Federal $193K).

Information & Referral Federation of L.A. County, INFO-LINE will provide widespread, low-cost, high-speed access to a comprehensive, centralized and standardized database to improve delivery and access to public welfare system (Total $172K, Federal $86K).

Feather Falls Union School District , in an isolated, rural community, will get Internet connectivity to classrooms (Total $30K, Federal $13K).

LA County Unified School District will establish an Internet link with local, state and national museums and the city library, providing a free, interactive exchange of information among students, teachers and parents in central community facilities (Total $417K, Federal $186K).

Sacramento County Office of Education will demonstrate a model program for delivering literacy services to adults through a cost-effective regional network in 15 predominantly rural counties.(Total $2,284K, Federal $764K).

Metropolitan Area Advisory Committee on Anti-Poverty of San Diego County will bring local information and Internet resources to their inner-city community including community organizations (Total $226K, Federal $113K).

Hermandad Mexicana Nacional Legal Center will develop a Mobile Job Bank to circulate in underserved Hispanic communities using employment databases to provide job placement and counseling (Total $782K, Federal $390).

Santa Ana Unified School District will use an existing cable television network to bring the resources of the Internet to over 50,000 low-income, limited English-speaking K-12 students (Total $1,330K, Federal $664K).

Guadalupe Union School District will bring basic Internet connectivity to their isolated, rura school district and community through a communications and information network (Total $56K, Federal $28K).

COLORADO

Contact: Warren Wendling, Chief Engineer

Colorado Public Utility Commission

Logan Tower , Office Level 2

1580 Logan St.

Denver, Colorado 80203

(303) 894-2000 ext.: 377 Fax: (303) 894-2065

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,566,000 Number of lines: 2,071,184

Size: 104,100 Number of LECs: 36

Proportion rural: 17.6% BOC: US WEST

Population per sq. mile: 34.4 Market share of BOC: 8.1%

Median household income: $32,716 Penetration Rate: 95.7%

Percent below poverty: 10.6% LEC competition permitted: 5/95

Percent on public assistance: 5.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 1.4 Copper : Yes Hybrid Fiber: Yes

Difference in non-BOC loop costs: 91.2% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $21.31 Percent local loop digital: 94.04%

Revenues if supports eliminated: $36.10 Other Technology: ISDN on 70% of lines

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 59.0% BOC residential rate (s): $17.82

Cable in schools: 75.0% LEC residential rates: $4.15 to $30.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: Single party, touch tone, voice grade, fax grade, 911, directory assistance, operator assistance, white pages, long distance, modem capable (2400), repair service, privacy protection

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Commission

Contributors: LECs, BOC, IXC

Basis for contribution: 50% based on minutes of traffic for IXCs & 50% based on access charge per line per month

Types of subsidies: Rate subsidy

Who draws from fund: LECs with less than 50,000 access lines with costs above the avg. investment for the traffic

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The CPUC has had a high cost fund in place, and currently they are developing revised rules for the new act. The old version only included small LECs, while the new version includes US West. Under the new bill, US West will be able to draw on the fund and may be receive as much as $20 million. Current data indicates that rates may be too low, so they may be increased. They will have wireless included as contributor in next round of legislation. They are considering a possible telecommunications trust fund to support development of advanced service. Some LECs may drop out or enter depending on investment cycle. No rate cases are currently filled, and there is a freeze on residential rates. Rates can only increase with additional features. They are half way through the five year program to convert all of their analog microwave to digital. Eventually all of the radio will be digital and it will carry many different types of functions. They continue to deploy digital capacity higher and farther out.

COMMENTS: Basic service is defined as a minimum standard that all have to meet, but this may not encompass economic development for advanced features.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Cable providers are not applying now, but they can after new rules are approved.

Programs to access advanced information services: The state is encouraging private competition to bring advanced services to state. If this doesn't work, they may develop other support mechanisms. US West fines for quality of service issues have been applied to fund telecom projects.

Programs for electronic access to public/government records: This is an agency by agency activity. There are government kiosks around the state and many agencies are developing sites on the WWW. The PUC's WWW site features timely news releases including Telecommunication Fund activity. Access Colorado Library and Information Network (ACLIN, created by the Legislature in 1990) is a cooperative project between the Colorado State Library and the Colorado library community. ACLIN seeks to provide electronic access to the information resources of the state's libraries to support the education, business, health, social services, and personal growth activities of the residents of the state.

Public/private partnerships: There is currently a reparation docket underway for US West. They may also set up a telecommunications trust fund to develop infrastructure for distance learning.

1995 NTIA/TIIAP GRANTS

State of Colorado - Colorado Advanced Technology Institute is a partnership of federal, state, local and private entities. They have come together to develop a replicable model of how Geographic Information Systems (GIS) can be put to work in addressing a priority problem facing much of rural America. The goal is to balance economic development and population growth while preserving the rural quality of life and environment (Total $750K, Federal $375K)

Southern Ute Indian Tribe. This project will provide Internet access to the Southern Ute Indian Tribe to enable them to access important information about education, government, culture, health, and economic development (Total $552K, Federal 214K).

CONNECTICUT

Contact: Peter Pescosolido, Supervisor of Technical Analysis of Telecommunications

Department of Public Utility Control

1 Central Park Plaza

New Britain, Connecticut 06051

(860) 827-2616 Fax: (860) 827-2613

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,277,000 Number of lines: 1,856,122

Size: 5,544 Number of LECs: 3

Proportion rural: 20.9% BOC: NYNEX

Population per sq. mile: 676.4 Market share of BOC: 0.0%

Median household income: $41,059 Penetration Rate: 96.4%

Percent below poverty: 9.4% LEC competition permitted: 7/94

Percent on public assistance: 6.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: NA Copper : Yes Hybrid Fiber: Yes

Difference in non-BOC loop costs: Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 90.87%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 83.0% BOC residential rate (s): $12.50

Cable in schools: 85.0% LEC residential rates: $8.00 to $15.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Low income/economically disadvantaged

Definition of basic service: Single party, touch tone, voice grade, 911, directory assistance, operator assistance,

white pages, long distance access, privacy protection, ANI capability, switching access, receive incoming calls,

usage element

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: LECs (changing to independent 3rd party)

Contributors: LECs, BOC, IXCs

Basis for contribution: Total gross revenues as a percent of total state revenues

Types of subsidies: Rate subsidy to carrier but is credited on customer's bill

Who draws from fund: Credits go to eligible low income customers, $3.50 for intrastate and

$3.50 for interstate service

Is subsidy portable: Yes

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: No

PENDING ACTIONS: Currently the Commission has a proposal from the dominate LEC to establish a high cost USF to off set recent price squeezes. The proposal is under review. Nothing else is pending regarding US, since they just issued new US rules in February 1995. Teleco is in for a rate review, but Commission is committed to no rate increases. With competition, rates should go down. Carriers will be deploying Hybrid Fiber Cable throughout state for next 10 years.

COMMENTS: AT&T plans to start offering local phone service early next year and has targeted Connecticut as its first state to enter this market.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Some cable companies are looking to provide local telephone service.

Programs to access advanced information services: Videoconferencing proposals are under evaluation to furnish both educational and administrative agencies with equipment and support services. Connecticut's Joint Committee on Educational Technology (JCET) assists the State Board of Education and the Board of Governors for Higher Education in coordinating more effective and efficient use of educational technology. This committee has oversight responsibility for the distribution of a $10.4M Bond Authorization for Technology Infrastructure for Connecticut Public Schools.

Programs for electronic access to public/government records: There is a law on the books requiring electronic access to all offices, and Connecticut agencies' web sites on the Internet are proliferating. The state library is acting as the coordinator for this effort.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Bridgeport Futures Initiative, Inc. Bridgeport Futures Initiative, and over 20 community partners, will bring the first electronic network (BridgeNet) to the depressed inner-city of Bridgeport, a designated Enterprise Community (EC) Ten community access points will open in eight low-income neighborhoods, social service workers with laptop computers will visit homes to demonstrate how information technology can be used as a problem solving tool, and trainers will serve as recruiters and mentors. (Total $695K, Federal $225K).

National Cristina Foundation. The project will bring together a wide range of non-profits from fifteen states to organize a national system to recycle donated computers. An estimated 80 million personal computers will be "obsolete" by 1998, but by transfer to the public and non-profit sector, may yet be of good use. (Total $1,960K, Federal $561K).

DELAWARE

Contact: John Citrolo, Public Utility Analyst

Delaware Public Service Commission

1560 S DuPont Hwy.

Dover, Delaware 19903-0457

(302) 739-4247 Fax: (302) 739-4849

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 700,000 Number of lines: 427,437

Size: 2,397 Number of LECs: 1

Proportion rural: 27.0% BOC: Bell Atlantic

Population per sq. mile: 358.2 Market share of BOC: 100.0%

Median household income: $35,739 Penetration Rate: 95.8%

Percent below poverty: 7.6% LEC competition permitted: no regulatory barrier

Percent on public assistance: 5.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 100%

Revenues if supports eliminated: Other Technology: ISDN

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 77.0% BOC residential rate (s): $9.40

Cable in schools: 69.0% LEC residential rates: $9.40 (one LEC)

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: Rural/high cost, Low income/economically disadvantaged

Definition of basic service: Rotary, 911, directory assistance, white pages, basic dial tone,

switching access, relay access

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: No High Cost: No

PENDING ACTIONS: The DPSC has pending rules that should be implemented by mid-summer 1996. The rules have been pending since 1993. The rules will apply to new service providers. The PSC's objective is to make sure no group is worse off than they are now. They don't have a USF because the statute says rates should be non-discriminatory. They would have to change the law to set up a USF. The state is very conservative. Eventually, they won't be able to avoid setting up a fund, if they have to establish a carrier of last resort. The carrier of last resort could collect from a USF if it could demonstrate the need and others would have to pay into the fund. They have price cap regulations and three pending filing applications. Some in state think ISDN should be part of universal service.

COMMENTS:

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: They are upgrading their network now, and improving infrastructure into all schools and libraries. The Office of Telecommunications Management is deploying routers in all elementary schools throughout the state to support placing computers in every classroom. They also expect to have ISDN in all schools by Spring 1996. Some in the state talk about information as a public good.

Programs for electronic access to public/government records: Not currently

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

University of Delaware - Center for Applied Science & Engineering program will increase access to all types of educational opportunities for students with disabilities by using the Delaware Assistive Technology Information Network. DATIN will increase the skill level and connectivity of school district personnel, students with disabilities, and their families (Total $447K, Federal $223K).

DISTRICT OF COLUMBIA

Contact: Bob Lowbe, Director Office of Economics

District of Columbia Public Service Commission

450 5th St. NW

Washington, D.C. 20001

(202) 626-5100 Fax: (202) 347-4711

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 578,000 Number of lines: 779,786

Size: 68 Number of LECs: 1

Proportion rural: 0.0% BOC: Bell Atlantic DC

Population per sq. mile: 9,482.8 Market share of BOC: 100.0%

Median household income: $30,357 Penetration Rate: 88.9%

Percent below poverty: 20.3% LEC competition permitted: statutory barrier

Percent on public assistance: 13.3%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 100%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 47.0% BOC residential rate (s): $3.00-$14.60

Cable in schools: 65.0% LEC residential rates: $3.00-$14.60

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: Low income/economically disadvantaged, potential disconnects from long distance

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: No

PENDING ACTIONS: DC is unique because they only have one LEC. While the LEC has an economy service rate for low income of $3.00, there has been a significant decline in the penetration rate. To address this issue, the PSC is looking at US as part of a new rate case. They will be developing a definition of basic service as part of the rate case, and identifying what, if any, additional groups should be targeted for US - schools, health care, etc. There is legislation in front of the DC council currently to allow local competition. If this occurs they may need to set up a USF. Bell Atlantic has promised to keep residential rates frozen until 2000 in the new rate case.

COMMENTS: The PSC has taken significant action regarding the penetration rate to make sure US is available and is investigating what else should be done.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: Providing ISDN at a reasonable rate for schools is an issue in Bell's rate case.

Programs for electronic access to public/government records: There is no formal mandate to do this but some agencies are developing ways to provide public access. There is a lot of interest in making government more accessible to the public.

Public/private partnership: Bell's rate case is looking at this. AT&T recently launched a volunteer partnership initiative to improve two of the city's special education schools with new computers for computer laboratories, building repairs and administrative process improvements, donating equipment and services valued at more than $100K.

1995 NTIA/TIIAP GRANTS

Association of Occupational and Environmental Clinics. This project will allow health care providers to tap into the expertise of specialists in the field of occupational and environmental medicine. Health care providers will be able to send questions about patients' illnesses to an Internet mailing list and receive evaluations from the expert participants (Total $44K, Federal $21K).

Soundprint Media Center, Inc. The Global Public Telecommunications Network (GPTN) is a laboratory of community network services that will provide low-cost public access to on-line information resources, including audio archival materials, radio programs, textual materials associated with the archival resources, and, ultimately, a similar array of video resources (Total $1,700K, Federal $850K).

United Cerebral Palsy Association Community Services Division. This project is designed to connect individuals with disabilities and their families to the National Information Infrastructure. Disabled individuals will also be given the on-line addresses of groups that share the same challenges and situations. (Total $597K, Federal $225K)

FLORIDA

Contact: David Dowds, Supervisor of Economics Section

Division of Communications

Florida Public Service Commission

2540 Shumard Oak Blvd.

Tallahassee, Florida 32399-0850

(904) 413-6542 Fax: (904) 413-6543

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 13,679,000 Number of lines: 8,025,917

Size: 59,988 Number of LECs: 13

Proportion rural: 52.0% BOC: Bell South

Population per sq. mile: 253.3 Market share of BOC: 61.4%

Median household income: $27,456 Penetration Rate: 92.6%

Percent below poverty: 15.3% LEC competition permitted: 7/95

Percent on public assistance: 6.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 13 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: -6.9% Fiber : Yes Microwave: No

Monthly revenues per customer: $16.77 Percent local loop digital: 35.43%

Revenues if supports eliminated: $30.32 Other Technology: 95% digital switches

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 71.0% BOC residential rate (s): $10.65

Cable in schools: 65.0% LEC residential rates: $6.00 to $11.63

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) in initial stage of rule making process

Targeted Groups: None

Definition of basic service: Touch tone, voice grade, 911, directory assistance, operator assistance, long distance, flat rate residential

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The FPSC just completed evidentiary policy making proceedings on an interim US mechanism. Revised Chapter 364, Florida Statutes, mandates an interim US mechanism be in place by 1/1/96. The Commission is to deliver a report to the Legislature and Governor on the need for and possible structure of a permanent mechanism by 1/1/97. The Legislature then has until 1/1/2000 to mandate a permanent mechanism. They are considering what US means (US is not equal to basic service, but US may be more than basic service). They are not sure if a USF will be the mechanism used to protect certain groups. What US is trying to protect is being considered in the current docket. They are not likely to have a broad subsidy. The availability of service is not a problem in Florida, but price is more an issue. The new statue allows LECs to enter the market. Residential rates may be capped for 3-5 years. Some local LECs are trying to do rate rebalancing

COMMENTS: The FPSC receives relatively few complaints involving local exchange companies and almost no complaints on phone service, so quality of service is not an issue. If people want telephone service, they'll get it. They already has low local rates so rates are not a big issue in Florida.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: They don't regulate cable, but they have some cable companies applying for telecommunication service. Cable will be involved in phone service in future. Cable companies may do pretty well in the future since they have a high penetration rate.

Programs to access advanced information services: They expect that competition will take care of expanding access to advanced services. The Department of Management Services offers state and local government and certain other qualifying organizations low cost access to the Internet. Florida has a very active community network alliance and seven regional Free-Nets are currently in operation.

Programs for electronic access to public/government records: State Bills are currently available and one can find out just about anything on the State's web page. The Florida Communities Network helps state and local governments in sharing information and acts to foster economic development by enhancing the telecommunications infrastructure and access to public information, and to improve government efficiency with a more efficient flow of information between agencies. The Information Resource Management Advisory Council (IRMAC) has a Public Access User Advisory Group working on policy development.

Public/private partnerships: Public/private partnerships are illegal in Florida.

1995 NTIA/TIIAP GRANTS

Southeast Florida Library Information Network, SEFLIN will cultivate a network of users-as-guides, helping disadvantaged citizens of the three-county area make full use of this resource. More that 120 corporations, all of the public and several private high schools, libraries, and all local colleges and universities will be able to access this time-sensitive information immediately (Total $509K, Federal $225K)

GEORGIA

Contact: Beverly Knowles, Director Utilities

Georgia Public Service Commission

244 Washington St. SW

Atlanta, Georgia 30334

(404) 656-7266 Fax: (404) 656-2341

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 6,917,000 Number of lines: 3,661,660

Size: 58,977 Number of LECs: 36

Proportion rural: 36.8% BOC: Bell South

Population per sq. mile: 119.4 Market share of BOC: 83.8%

Median household income: $28,889 Penetration Rate: 93.2%

Percent below poverty: 17.8% LEC competition permitted: 7/95

Percent on public assistance: 8.5%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 13.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 30.5% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $18.12 Percent local loop digital: 27.79%

Revenues if supports eliminated: $32.09 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 63.0% BOC residential rate (s): $14.33

Cable in schools: 66.0% LEC residential rates: $4.00 to $18.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: None

Definition of basic service: single party, touch tone, 911, modem grade (9600), 1+ dialing

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The GPSC is in process of developing rules for a USF. All telecommunication providers will contribute to fund and this may include wireless and cable if provide basic service (voice not video/TV). They will specify a percent of revenues in rules and who will administrator fund. A rate subsidy of so much per line will go to providers of US. One cable company has applied for certification, and they will provide phone service over cable network. They currently have one pending rate case.

COMMENTS: Georgia is in the process of developing a new system to accommodate competition so citizens do have universal service. They currently have 92% coverage. Basic service includes single line business.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: One cable company is applying to be a carrier. US West is becoming the first BOC to compete in another BOC's territory, having recently received authority from the Georgia PSC to provide local telephone service over its MediaOne cable systems.

Programs to access advanced information services: This is not now a part of US. AIS would have to be more widely used before this becomes an issue.

Programs for electronic access to public/government records: Yes, but it is not centralized. GeorgiaNet has a number of state agencies that are accessible. They do have campaign funds reporting on the Internet, and more agencies are bringing up a Web presence.

Public/private partnerships: Georgia Distance Learning & Telemedicine Act of 1992 (SB 144) authorizes and directs DOAS to develop a statewide distance learning & telemedicine network. It creates a procedure for funding of new distance learning and telemedicine systems and provides an initial fund source and creates a governing board. The resultant Georgia Statewide Academic and Medical System (GSAMS) currently has 227 installed distance learning sites and 60 telemedicine sites making it the largest videoconferencing system in the world.

The Georgia Center for Advanced Telecommunications Technology (GCATT) is a division of the Georgia Research Alliance (GRA). Their recently completed 150,000 square foot facility was funded by $24M in state allocations and $5M in private matching funds. It will provide a meeting ground where academia, business leaders, government representatives, and researchers can collaborate on emerging technologies and will house technology demonstrations during the 1996 Centennial Olympic Games showcasing Georgia's achievements in advanced telecommunications.

Bell South must make infrastructure investments of $500 million per year for five years for infrastructure improvement which include distance learning and telemedicine.

1995 NTIA/TIIAP GRANTS

Southeastern Library Network will address the general problem of integrating such distributed data by demonstrating that existing standards for electronic records, network protocols and software tools can be used to develop a model regional information system. It will produce a decentralized on-line system for the Southeast region of the nation (Total $852K, Federal $419K).

HAWAII

Contact: Mike Azama

Staff Attorney

Hawaii Public Utilities Commission

465 South King St., #103

Honolulu, Hawaii 96813

(808) 586-2020 Fax: (808) 586-2066

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,172,000 Number of lines: 595,817

Size: 6,459 Number of LECs: 1

Proportion rural: 11.0% BOC: na

Population per sq. mile: 182.4 Market share of BOC: 0.0%

Median household income: $42,171 Penetration Rate: 94.5%

Percent below poverty: 11.0% LEC competition permitted: 6/95

Percent on public assistance: 5.9%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: Yes

Monthly revenues per customer: Percent local loop digital: 72.23%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 84.0% BOC residential rate (s): $14.40

Cable in schools: 82.0% LEC residential rates: $14.40 (one LEC)

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted groups: Rural/high cost, Economically disadvantaged/low income, Users with disability

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: No (see pending)

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: No

PENDING ACTIONS: The HPUC has opened a docket and issued draft rules on competition and US. The definition of basic service in the draft rules includes single party, touch tone, voice grade, 911, directory assistance, operator, white pages, and relay service. The draft rules include a USF, and both high cost and low income groups are targeted. For low income groups the subsidy would be 50% of the basic rate. The law allows for direct distribution of the subsidy to customers based on need. All telecommunication providers would contribute to the USF including LECs, BOC, wireless and cable. "Telecommunication provider" is broadly defined in law. Non-telecommunication providers may have to contribute to the fund if they directly benefit from the telecommunication infrastructure and directly compete with telecommunication providers. In high cost program, the subsidy would go to carrier if the difference in cost is greater than 120% of basic rate. The program would be administered by the Commission.

COMMENTS:

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Telecommunication service excludes cable TV, but telecommunication carrier could include cable provider if they provide local service. One cable company, Oceanic, has applied for local service.

Programs to access advanced information services: As part of draft rules they will review definitions of basic service from time to time. The Commission is actively involved in updating the network. Hawaii has pioneered the provision of government and other information of interest in electronically accessible and online forms with their Hawaii FYI established in 1991. Due to a current fiscal crisis, Hawaii Inc. was not funded as of June 30, 1995, but the State Dept. of Budget and Finance continues to operate the popular service, Hawaii FYI, with its links to Hawaii related businesses, education, government, non-profit organizations, and visitor industry information systems. The High Technology Development Corporation (HTDC) is and agency of the state's Dept. of Business, Economic Development and Tourism (DBEDT), who not only facilitates the development and growth of commercial high technology industry in Hawaii, but assists various state and local agencies in getting up on the Internet.

Programs for electronic access to public/government records: This is not under the HPUC's jurisdiction. Contact Office of Information Practices (808) 586-1400.

Public/private partnerships: See Hawaii Inc. above.

1995 NTIA/TIIAP GRANTS

State of Hawaii - Dept. of the Attorney General. The Juvenile Justice Information System (JJIS), using leased telephone lines and computer equipment, enables law enforcement officials throughout the islands to share important information about juvenile offenders (Total $714K, Federal $222K)

State of Hawaii - Dept. of Business, Economic Development. HI-TIME will provide the state government with public principles, strategic objectives, and a plan of recommended actions to guide decision making on telecommunications and information technology infrastructure (Total $361K, Federal $177K).

IDAHO

Contact: Eileen Benner, Telecommunication Section Supervisor

Idaho Public Utilities Commission

PO Box 83720

Boise, Idaho 83720-0074

(208) 334-0354 Fax: (208) 334-3762

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,099,000 Number of lines: 535,604

Size: 83,574 Number of LECs: 16 (regulated)

Proportion rural: 12.6% BOC: US West

Population per sq. mile: 13.3 Market share of BOC: 75.5%

Median household income: $27,784 Penetration Rate: 94.8%

Percent below poverty: 15.0% LEC competition permitted: prohibited (residential)

Percent on public assistance: 3.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.7 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 87.1% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $14.51 Percent local loop digital: 98.91%

Revenues if supports eliminated: $37.37 Other Technology: 95% digital switches

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 54.0% BOC residential rate (s): $11.61

Cable in schools: 63.0% LEC residential rates: $9.40 to $17.20

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost (not states but implicit)

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Independent 3rd party

Contributors: LECs, BOC, IXCs

Basis for contribution: Surcharge on all local access lines, and each intrastate toll minute

Types of subsidies: Bulk check to carrier

Who draws from fund: LECs are eligible if 1) LEC rate for 1-party single line is in excess of 125% of weighted statewide average and 2) average charge per minute for MTS/WTS access service is in excess of 100% of statewide average. 7 LECs currently draw from fund.

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The IPUC has no pending actions regarding US, but a task force is looking at Idaho's telecommunications law. They hope to get a change in lifeline fund requirements and come up with a different eligibility mechanism. Currently there is no need to define basic service, but it may be an issue in the future. US may be reconsidered if local competition occurs. Currently there is a monopoly. US West rates are under review. US West rates may go up $1 per year with improvements in service quality. US West prefers residential rates go up and business rates go down. Under the current alternative regulation plan settlement proposal, residential rates will go up but business rates won't go down.

COMMENTS: Idaho has a good mechanism now and the USF insures an affordable rate for most, but not all. They still have some pockets with very low penetration. Also, local call doesn't give enough service, extended area service is the challenge.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable providers are included under the current law, but they are on task force looking at change in law.

Programs to access advanced information services: There is so much private activity that they aren't sure they need to get involved. The Commission has insured all customers are served by one-party, touch tone, electronic switches (nearly all digital) and nearly all interoffice routes are digital.

Programs for electronic access to public/government records: Some departments have WWW page, but not all. The Information Technology Division of the Department of Administration manages and coordinates all Internet access for Idaho state government through a contractual agreement with NorthWestNet, for Domain. The Division also maintains the state's WWW presence. The PUC has a homepage with downloadable versions of their Rules available as well as biographies of the Commissioners and various meeting agendas and minutes. A task force (InfoTech 96) is looking at linking state offices on the Internet.

Public/private partnerships: It is difficult to achieve such partnerships under current law.

1995 NTIA/TIIAP GRANTS

Lewis-Clark State College - Institute for Community Development, is developing a regional network of community-based networks that will make access to advanced information services affordable. Twelve Idaho communities and over 25 partners are participating in this project to identify specific information needs in the areas of adult education, K-12 education, and medical and other services. (Total $486K, Federal $225K)

Southern Idaho Medical Information Network, a Community Health Information Network (CHIN)

called SIMIN will provide integrated clinical information systems to the health care providers in the area, enabling them to share patient information and "best practice" approaches to patient care. (Total $6,796K, Federal $1,699K)

ILLINOIS

Contact: Charlotte Terkeurst, Director of Telecommunication Programs

Office of Policy & Planning

Illinois Commerce Commission

Leland Building PO Box 19280

Springfield, Illinois 62794-9280

(217) 524-2160 Fax: (217) 782-1042

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 11,697,000 Number of lines: 6,743,917

Size: 57,918 Number of LECs: 56

Proportion rural: 15.4% BOC: Ameritech

Population per sq. mile: 210.4 Market share of BOC: 82.8%

Median household income: $31,707 Penetration Rate: 93.5%

Percent below poverty: 15.3% LEC competition permitted: 1988

Percent on public assistance: 7.9%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 9.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 62.1% Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 95.26%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 57.0% BOC residential rate (s): $11.20

Cable in schools: 64.0% LEC residential rates: $5.40 to $28.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules,

fund in place (IL has two funds)

Targeted Groups: Low income/economically disadvantaged customers (EDF); Rural/high cost areas (HCF)

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: (EDF) Non-profit organization; (HCF) LEC Association

Contributors: (EDF) Customers voluntary contributions; (HCF) IXC, primary toll carriers

Basis for contribution: (EDF) Voluntary; (HCF) Intrastate minutes of use

Types of subsidies: (EDF) Waiver of $10 installation charge; (HCF) Subsidy to carrier based on cost above a sliding scale percentage above statewide average costs

Who draws from fund: (EDF) Goes to carrier based on the number of eligible public assistance customers requesting: (HCF) Small LEC, based on average cost per access line versus the statewide average

Is subsidy portable: (ED) yes; (HCF) no

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: Staff is filing proposals for US and proposed rules. They are to be done by April 1996. Basic service will be defined as part of staff proposal. They are not sure if the USF will be directed at high cost and/or low income. To date they have been more focused on high cost, but have targeted low income. Subscribership rates are declining in some areas of the state. They have adopted price cap regulations so residential rates will be frozen for 5 years. Rates for smaller LECs may go up with deaveraging.

COMMENTS: Illinois is committed to keeping rates at an acceptable level in the future. The legislature is reluctant to subsidize low income, even though subscription rates are declining in some low income areas. As they continue to deaverage cost, new companies will have to pay to compensate those who built the infrastructure. LECs don't participate in the Federal Lifeline program because the Commission can't require the LECs to match funds.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The statewide telecommunications "Illinois Video Network"(IVN) presently provides interactive 384kbs video transmission to 36 sites throughout the state, and it should more than double in size in the next two years. MCI is involved in a two year trial using cable to deliver telephone service.

Programs to access advanced information services: As part of staff proposal they might look at advanced information services and requiring existing lines be modem capable lines (14.4 baud). The Illinois State Board of Education (ISBE) is currently expanding their 800 number toll-free program for K-12 school Internet connectivity and planning to eventually supply each school with a high speed connection.

Programs for electronic access to public/government records: There is some access, but not on a statewide basis. They will be expanding this is future.

Public/private partnerships: The National Center for Supercomputing Applications (NCSA) at the University of Illinois at Champaign-Urbana developed Mosaic, a software application, which in its ability to graphically navigate the WWW, has nourished the international explosion in Internet use. Illinois stresses high technology companies in its economic development activities and over 1,000 information technology companies are now located within a 150 mile radius of Chicago, the "Silicon Prairie."

1995 NTIA/TIIAP GRANTS

West Central Illinois Educational Telecommunications Corp. CONVOCOM is upgrading and extending an existing microwave infrastructure from analog to digital, the project will provide industries, non-profit organizations, government offices, and private individuals in Quincy, IL, the opportunity to partake in educational training and face-to-face meetings at a multitude of teleconferencing destination sites throughout Illinois and the rest of the country (Total $486K, Federal $225K).

Governors State University - Center for Extended Learning & Communications. The Learning in Community On-line Network (LINCOLN) will serve underserved rural counties and suburban areas south of Chicago. The project will use the Internet, local information access, audio conferencing, and video conferencing to support citizens' efforts to improve their communities (Total $801K, Federal $388K).

INDIANA

Contact: Sandy Ibaugh

Asst. Chief of Engineering Division

Indiana Utility Regulatory Commission

Indiana Government Center South

302 W Washington St., Suite E 306

Indianapolis, Indiana 46204

(317) 232-2523 Fax: (317) 232-6758

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 5,713,000 Number of lines: 2,910,142

Size: 36,420 Number of LECs: 43

Proportion rural: 35.1% BOC: Ameritech

Population per sq. mile: 159.3 Market share of BOC: 61.7%

Median household income: $28,663 Penetration Rate: 92.9%

Percent below poverty: 11.7% LEC competition permitted: no regulatory bar

Percent on public assistance: 5.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 12.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 30.0% Fiber : Yes Microwave: No

Monthly revenues per customer: $16.19 Percent local loop digital: 99.46%

Revenues if supports eliminated: $24.75 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 59.0% BOC residential rate (s): $13.50

Cable in schools: 63.0% LEC residential rates: $3.00 to $25.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: BOC

Contributors: LECs, BOC, wireless, IXCs

Basis for contribution: Intrastate carrier common line access minutes - originating & terminating

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement, Opportunity Indiana waives hook-up

Who draws from fund: LECs eligible if intrastate NTS costs are above the statewide average;

14 LECs draw from fund.

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: They are in the middle of a local exchange workshop looking at local competition --due to finish by 1/15/96. Currently, they have a high cost fund, but some want revised US program to target low income. Target groups and definition of basic service will be discussed in workshop. Contributors to fund will include all telecommunication companies. Ameritech administers current USF but this role will have to go to 3rd party in revised program. There are no pending rate cases. Last year they did a review of rates, and Ameritech phased down end user charges and touch tone charges. They may need to do some rate rebalancing with smaller LECs.

COMMENTS: From the staffs' analysis, the penetration rate (94%) looks good and they know areas where they need to improve. It is hard to predict where they'll be since they're in a state of change.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: They don't regulate cable and cable companies don't have the infrastructure to provide telephone service at this time. So far, no cable companies have applied for certification. Indiana is in the process of building a business case for statewide video conferencing. They plan to implement 5 to 8 video conference sites around the state.

Programs to access advanced information services: They are not sure if these will be included as part of US. Indiana Higher Education Telecommunication System (IHETS) is a state-funded consortium of all 39 public and private universities and colleges (77 campus sites) for the sharing of voice, video and data networks. IHETS manges INDnet (Indiana's Internet backbone), Indiana Partnership for Statewide Education (collaborative development and delivery of distance learning) and ACCESS Indiana (state-led partnership to expand telecommunications infrastructure and assure information access for all citizens). Indiana has a Rural Datafication Project championing Internet connectivity for rural communities.

Programs for electronic access to public/government records: Through the "Access Indiana" program Ameritech will provide access to government documents. Indiana is setting up Internet access for government agencies and community networks. The Legislature has a unique program providing portable computers and a wireless LAN for members of the Indiana General Assembly to help cut the cost of operations and improve Legislative and constituent services.

Public/private partnerships: Ameritech and the IURC came to an agreement with Ameritech's referred to as "Opportunity Indiana." The agreement calls for over $130 mil. in infrastructure deployment, a major grant program for distance learning and a moratorium on local measured service. Through "Opportunity Indiana" Ameritech will spend $5M/year to help school, library and government agencies. They will identify needs, upgrade infrastructure, and provide grant money. Also see ACCESS Indiana above. Indiana is considering outsourcing for a majority of its state government data processing needs.

1995 NTIA/TIIAP GRANTS

None.

IOWA

Contact: Sandra Makeeff, Supervisor of Telephone Section

Bureau of Rates & Safety Evaluation

Iowa Utilities Board

Lucas State Office Building 5th Floor

Des Moines, Iowa 50319

(515) 281-4034 Fax: (515) 281-5329

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 2,814,000 Number of lines: 1,415,328

Size: 56,276 Number of LECs: 160

Proportion rural: 39.4% BOC: US West

Population per sq. mile: 50.4 Market share of BOC: 65.4%

Median household income: $28,880 Penetration Rate: 96.3%

Percent below poverty: 11.3% LEC competition permitted: 5/95 (never prohibited)

Percent on public assistance: 5.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 8.5 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 85.1% Fiber : Yes Microwave: No

Monthly revenues per customer: $13.92 Percent local loop digital: 92.3%

Revenues if supports eliminated: $24.40 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 59.0% BOC residential rate (s): $11.05-13.05

Cable in schools: 73.0% LEC residential rates: $2.00 to $24.78

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: House File 518 has directed the Utilities Board to look at universal service but it did not mandate US. They have had a workshop and currently have a rule making docket. They are looking at US as part of local competition. If they establish a fund, they would develop definitions for basic service and consider target groups, but they're not sure they need a USF. A USF would probably be targeted to both high cost and low income groups. US West recently filed a rate rebalancing case. US West wants to increase residential rates by $2 and lower access charges and toll rates. Iowa just enacted legislation that allowed companies to go under price cap.

COMMENTS: Iowa is looking at necessity of a USF as competition develops. They are not sure of need one now, but increased competition may create the need.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable providers have applied for certification.

Programs to access advanced information services: The Iowa Communication Network (ICN) provides a two-way interactive broadband network for long distance learning and access to the Internet to all schools and each county seat. Iowa has used $114.5M in bond initiatives (plus a $4M U.S. DOE grant and other allocations now totaling $180M) to install 2800 miles of fiber optic backbone throughout all 99 counties to 126 end points. Currently, all citizens are within 12 miles of a video classroom and next year they plan on connecting 317 high schools followed by some 500 municipal libraries, various teaching hospitals and public television stations. The state expects to save $11M per year in transmission costs when it moves its government data traffic to the fiber network.

Programs for electronic access to public/government records: A state network hooks county and state agencies but is not accessible to the public. There is a limited state government WWW presence hosted by the Iowa Public Telecomputing Network (IPTN), a regional Free-Net.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Harlan Municipal Utilities. Through this project citizens of rural Shelby County, Iowa, will have access to an advanced communications network. Fifteen sites throughout the county will be linked to provide a variety of services. City, county, school, and library information will be available to people at computers in the public library (Total $460K, Federal $200K).

Youth & Shelter Services, Inc. The Rural Home Youth Communications Project will use electronic telecommunications technology -- videophones, computers and Internet access -- to connect therapists to their clients, no matter how far apart they are physically during their sessions. Five service centers will have video-phone systems connected to the main center where the therapists will be located (Total $379K, Federal $189K).

Luther College will construct a fully interactive video classroom, enabling its nursing students and patients living in rural and economically depressed Decorah County to gain access to the training and expertise available at the Mayo Clinic (Total $225K, Federal $121K).

KANSAS

Contact: Ross Miller, Telecommunications Analyst

Kansas Corporation Commission

1550 SW Arrowhead Rd

Topeka, Kansas 66604-4027

(913) 271-3100 Fax: (913) 271-3354

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 2,531,000 Number of lines: 1,350,551

Size: 82,282 Number of LECs: 45

Proportion rural: 30.9% BOC: Southwestern Bell

Population per sq. mile: 30.9 Market share of BOC: 83.3%

Median household income: $30,447 Penetration Rate: 94.2%

Percent below poverty: 11.0% LEC competition permitted: no statutory barrier

Percent on public assistance: 4.6%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 4.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 68.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $13.55* Percent local loop digital: 100.0%

Revenues if supports eliminated: $28.07* Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 67.0% BOC residential rate (s): $11.00

Cable in schools: 68.0% LEC residential rates: $3.50 to $13.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating Universal Service (US); an active docket is under consideration by the commission

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: The KCC has a universal service docket. They've talked about life-line and a one time forgiveness program, but nothing is set. The decision should be in place by March 1997. They expect they will have a USF. They will define basic service which is likely to include single party, touch tone, digital, access to 911, installation, 24 hour repair, dial tone, and directory listing . They are likely to target low income with the lifeline program. High cost/rural areas will be handled differently. They're trying to come up with a way to subsidize high cost areas. They will also have to be some rate balancing. They're pushing for a single package covering rates and US.

COMMENTS: They want telephone service to be just as affordable and accessible as it is today, nothing less than they have now. * OPASTCO rates are based on 6 LECs in study.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Cable is unregulated in the state. Cable companies might become competitor with LECs in the future. Satellite TV and dish seems the most likely solution for rural areas rather than cable. Video teleconferencing continues to be a major state project including teleconferencing for distance learning, telemedicine, and administrative teleconferences.

Programs to access advanced information services: A consumer advocacy group has asked the Commission to look at universal access to Internet. They are early in the investigation of the Internet and there is a cooperative venture between Kinnet and Computerland to provide Internet access.

Programs for electronic access to public/government records: They have internal sharing now between agencies, but are going to provide access to the public. The State of Kansas created Information Network of Kansas (INK) in 1990, funded by user fees, to provide electronic access to state, county , local and other governmental information for Kansas citizens. Some 400 information resources are available (including data from 55 state agencies), accessible through an 800 number or over the Internet for a $50 annual subscription fee and $.40 per minute. Annual revenues range from $4 to $5M, with most of the money going back to state agencies.

Public/private partnerships: Through "Tele-Kansas" SW Bell has upgraded party lines within its services territory. SW Bell is also providing "interactive video" for all schools in its territory. United Telephone developed a plan for modernization and upgrading to one party services to all offices with its services territory and is working ahead of schedule on the associated upgrades.

1995 NTIA/TIIAP GRANTS

Hays Medical Center Office of Rural Health. This project will link medical centers and hospitals with 100 home health patients. The program will interactively monitor a patient's general health, medication, diabetic condition, blood pressure, diet, hygiene and mental health status (Total $608K Federal $301K).

Western Kansas Community Services Consortium. This project will create 36 public access and community college sites throughout western Kansas. In addition to the huge variety of data available on the Internet, these sites will allow local educational networking for students, faculty, and staff at the seven colleges (Total $535K Federal $225K).

KENTUCKY

Contact: Bill Strack, Manager of Financial Analysis and Telecommunications

Kentucky Public Service Commission

730 Schenkel Lane

Frankfort, Kentucky 40602

(502) 564-3940 Fax: (502) 564-3460

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,789,000 Number of lines: 1,736,972

Size: 40,411 Number of LECs: 20

Proportion rural: 48.2% BOC: Bell South

Population per sq. mile: 95.4 Market share of BOC: 58.3%

Median household income: $23,567 Penetration Rate: 89.9%

Percent below poverty: 19.7% LEC competition permitted: policy barrier

Percent on public assistance: 9.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 15.7 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 11.8% Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 17.7%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 64.0% BOC residential rate (s): $18.00

Cable in schools: 72.0% LEC residential rates: $5.00 to $18.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: No

PENDING ACTIONS: The KPSC has a docket on local competition that includes US and a USF. They expect to be done in 1997. Part of the docket will defining basic service. The docket will determine whether support goes to the carrier or directly to the customer. Target groups most likely will be low income. They may make US a separate part of the docket. There are no rate cases pending. Bell South is under a rate cap plan, so rates will be frozen for 3 years.

COMMENTS: Kentucky's penetration rate is not as good as some states. In part this is due to the rural nature of the state. They will be exploring US in the current docket. The Commission ruled against Lifeline program because getting on the network was the problem not staying on it.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable carriers have applied for certification at this point. The Kentucky TeleLinking Network (KTLN) provides state government with 22 interactive videoconferencing sites that will expand to 48 sites.

Programs to access advanced information services: The Kentucky Education Technology System (KETS) was mandated by the legislature to provide a data/video communications network, including Internet access to all school districts (176) and schools (1366). A consortium of firms was selected to provide Kentucky with an "Information Highway," the contract calling for fixed cost access to the "highway" with a network terminal at every public switched wire center.

Programs for electronic access to public/government records: The Department of Information Systems was established to assist agencies that want Internet nodes for agency specific information dissemination.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Appalachian College Association. This grant will create a plan to bring information infrastructure to its 33 member colleges and universities, and create a comprehensive strategy for distance learning including the development of Rural Information Services Centers (RISC) (Total $101K, Federal $50K).

Forward in the Fifth. The Eastern Kentucky Access to Telecommunications (EKAT) project seeks to rebuild a traditionally underserved region through education, training, and provision of access to a computer network linking

individuals, communities, and schools. EKAT will establish eight satellite downlink sites and offer inexpensive local connections to the Internet (Total $346K, Federal $225).

Federation of Appalachian Housing Enterprises. The FAHE will connect 21 rural community-based housing providers to HandsNet (the national housing and human services information network) and to the Internet (Total $21K, Federal $10K).

Jefferson County Public Schools Educational Technology Department. Project RUN (Rural Urban Network) will create a fiber optic, metropolitan wide area network that will provide all partners with access to information networks. This project will provide the first network access for the inner city residents of Louisville and the rural residents of Pike County (Total $1,972K, Federal $800K).

Center for Kentucky Rural Economic Development will develop an information network to support entrepreneurs, small and new businesses, and the expansion of the region's existing industries. The Center will house videoconferencing and distance learning facilities, connected to the Kentucky Information Highway through

a high-speed telephone line (Total $960K, Federal $396K).

LOUISIANA

Contact: Gayle Kellner, Senior Staff Attorney

Louisiana Public Service Commission

PO Box 91154

Baton Rouge, Louisiana 70821-9154

(504) 342-4085 Fax: (504) 342-4087

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 4,295,000 Number of lines: 2,051,434

Size: 49,650 Number of LECs: 21

Proportion rural: 31.9% BOC: Bell South

Population per sq. mile: 98.6 Market share of BOC: 92.8%

Median household income: $25,479 Penetration Rate: 91.5%

Percent below poverty: 24.2% LEC competition permitted: prohibited

Percent on public assistance: 10.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 10.7 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 80.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $21.95 Percent local loop digital: 10.58%

Revenues if supports eliminated: $44.24 Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 68.0% BOC residential rate (s): $10.97- $15.05

Cable in schools: 60.0% LEC residential rates: $9.00 to $18.50

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: None

Definition of basic service: Single party, touch tone, 911, directory/operator assistance, white page, long distance service, affordable line connection, telephone relay, and customer support

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: No High Cost: Yes

PENDING ACTIONS: The PSC has proposed regulations for competition with a mandate for US. They are to be before the Commission by 1/9/96. There are no target groups, because they want to make telephone service affordable to all -- not limited to economically disadvantaged. Basic statement about mandate for US is included in regulations but specifics of USF are not detailed. All TSP (telecommunication service providers) must contribute to USF, but it is not yet been determined how fund will operate except that subsidies will go to carriers. Commission has a rate case with Bell South who has been on incentive regulation since 1990. Bell South has asked to be regulated under price regulation. Initially residential rates are likely to go up, due to be deaveraging - urban rates will go down and rural rates will go up. But, they will establish fund to address this. As competition enters the market rates should come down.

COMMENTS: The PSC is progressing toward implementation of a US program. They have started -- now they need to finish. The biggest hurdle was defining what US means, the biggest challenge is getting competitive rules approved. There is very low participation in the Federal Lifeline program because there are no state matching funds and participation is not mandated.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Two cable providers are just beginning to apply for certification. The state is using videoconferencing activities in distance learning, telemedicine and judicial applications.

Programs to access advanced information services: Louisiana has a Goals 2000 Technology Plan currently funded at $2M to develop a systemic statewide plan to increase the use of state-of-the-art technologies in classrooms and school libraries in order to enhance educational curricula.

Programs for electronic access to public/government records:

Public/private partnerships: Bell South has grants for hospitals and they provide reduced rates for schools, libraries, and medical schools. They also wave link-up costs for high speed lines to these organizations. Senate Bill 774 creates the Coordinating Council on Telemedicine & Distance Education in the Office of the Governor to promote and ensure communications between public agencies in the areas of telecommunications.

1995 NTIA/TIIAP GRANTS

University of New Orleans - Business/higher Education Council will create a model for developing, funding, managing, and expanding a regional WWW community network site with public and private partners. Education is a key focus for the project, and will include technical training, multimedia training modules, and non-credit certification programs in information technology (Total $781K, Federal $369K).

MAINE

Contact: Joe Sukaskas and Peter Ballou

Maine Public Utility Commission

242 State St., State House Station 18

Augusta, Maine 04333

(207) 287-3831 Fax: (207) 287-1039

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,239,000 Number of lines: 685,438

Size: 33,741 Number of LECs: 24

Proportion rural: 55.4% BOC: NYNEX

Population per sq. mile: 40.2 Market share of BOC: 83.8%

Median household income: $29,705 Penetration Rate: 95.0%

Percent below poverty: 13.4% LEC competition permitted: no regulatory barrier

Percent on public assistance: 7.6%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 11 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 14.3% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $11.09 Percent local loop digital: 14.2%

Revenues if supports eliminated: $25.63 Other Technology: BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 65.0% BOC residential rate (s): $10.50 - $12.50

Cable in schools: 41.0% LEC residential rates: $4.75 to $14.50

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) in initial stage of

rule making process

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributor:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The MPUC is considering policies to establish local competition. Currently, they have a statewide rate that doesn't vary, but with local competition they will have deal with US issues. Defining basic service is beyond scope of the current docket. They are considering an access element that would maintain current geographic cross-subsidies in order to keep rates at current levels. Anyone who competes where costs are higher will get a subsidy, and anybody who competes were costs are lower will contribute. NYNEX just went through a rate case for an alternative form of regulation. This may lead to a decrease in residential toll rates, and a small increase in basic rates.

COMMENTS: Most people in Maine have telephone service -- rates are stable and there are few complaints. But change in competition may cause rates to change. Universal access approach allows for access to advanced information services. They have a special program for hearing impaired who get a 70% reduction in intrastate toll calls.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable companies have applied for certification.

Programs to access advanced information services: There are library and school programs to provide access to Internet. NYNEX rate case included improving infrastructure to provide access in Internet. NYNEX was ordered to reduce rates by $14M per year, with $4M per year earmarked for education. State has objective to provide affordable access to AIS. The Maine Telecommunications and Information Technology Planning Project has issued its final draft report and recommendations. A General Fund Bond Issue for $15M has been authorized to expand telecommunications capabilities and student learning opportunities in Maine schools. The establishment of a Maine statewide Free-Net, MaineCAN, is under discussion.

Programs for electronic access to public/government records: The state has WWW page, and a number of initiatives under way, and a State Information Service Policy Board to address this issue. They also are setting up kiosks throughout state for job bank information and driver licenses. The PUC hosts a homepage with access to state and federal resource materials.

Public/private partnerships: A toll agreement was reached with NYNEX (they expect independent companies to follow shortly) to provide schools and libraries with substantial savings.

1995 NTIA/TIIAP GRANTS

The University of Maine System. This grant is designed to reduce disparities in access to telecommunications in several different rural regions of the state. The end result will be a statewide "network of networks", including school districts, universities and colleges, libraries, hospitals and rural health clinics, municipal governments, courts and legal aid organizations, economic development agencies, and state government departments (Total $1,731K, Federal $850K).

MARYLAND

Contact: Ann Dean, Regulatory Economist

Maryland Public Service Commission

6 St. Paul St., 19th Floor

Baltimore, Maryland 21202-6806

(410) 767-8053 Fax: (410) 333-6495

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 4,965,000 Number of lines: 2,860,375

Size: 12,297 Number of LECs: 2

Proportion rural: 18.7% BOC: Bell Atlantic

Population per sq. mile: 507.9 Market share of BOC: 99.8%

Median household income: $37,287 Penetration Rate: 95.5%

Percent below poverty: 11.6% LEC competition permitted: 1994

Percent on public assistance: 6.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 77.1 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: Yes

Monthly revenues per customer: Percent local loop digital: 100%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 62.0% BOC residential rate (s): $9.52 -11.17

Cable in schools: 65.0% LEC residential rates: to

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributor:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: No

PENDING ACTIONS: US may be a commission case in future due to local competition, but not now. Bell will be filing to go under price cap, and more companies will be entering into residential service.

COMMENTS: US hasn't been a problem before, but it may be now with deregulation.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Commission doesn't regulate cable, but some cable companies may apply for certification. Maryland has a Video Distance Learning initiative to connect community/junior colleges, high schools, and cultural institutions for distance learning.

Programs to access advanced information services: This may become an issue but not now.

Programs for electronic access to public/government records: With the Maryland Electronic Capital project, the state is establishing the infrastructure to allow state, county, and municipal governments, as well as the private sector, to share resources and information., with an emphasis on citizen access.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Goodwill Industries International, Inc. will create a support network for other social service organizations to communicate with each other and their clients. It will also provide an opportunity for clients to receive training in the use of information technology (Total $599K, Federal $245K).

MASSACHUSETTS

Contact: Jaime Dalmeida, Telecommunications Analyst

Massachusetts Department of Public Utilities

100 Cambridge St., Room 1209

Boston, Massachusetts 02202

(617) 727-8627 Fax: (617) 723-8812

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 6,012,000 Number of lines: 3,714,730

Size: 9,241 Number of LECs: 5

Proportion rural: 15.7% BOC: NYNEX

Population per sq. mile: 767.1 Market share of BOC: 99.9%

Median household income: $36,558 Penetration Rate: 96.2%

Percent below poverty: 10.0% LEC competition permitted: 1986

Percent on public assistance: 7.5%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 91.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 41.2% Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 6.95%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 76.0% BOC residential rate (s): $16.85

Cable in schools: 80.0% LEC residential rates: to

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: Unlimited calling within the local exchange calling area and within municipalities

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: US is part of a pending docket on local competition. They have finished evidenture phase, and should have a decision in March 1996. They have not yet adopted a definition for basic services. Low income groups would be most likely target. They did not have a fund before because they had one dominate carrier, NYNEX (99% of market), who made internal adjustments to cover high costs areas and equalize rates. Open docket on local competition will address USF issue, but they are not likely to set up a fund immediately. NYNEX is going to price access so it will still be able to cover its costs. NYNEX basic residential rates are frozen for six years.

COMMENTS: Local competition docket will give them an opportunity to reassess US. It is hard to assess how much a company needs a subsidy. They would rather let carriers recover costs from other customers. If they do have local competition, they will need to find some way to fund US.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Cable companies are active in docket to enter the competitive market.

Programs to access advanced information services: Massachusetts Access to Government Network, MAGNet, is a statewide high speed communications network that will link together government agencies, libraries, schools, and businesses throughout the state. MAGNet will include 20,000 desktop computers for the state's own information workers, 2500 public access points in libraries and schools as well as from kiosks, potentially 300,000 business clients, and an estimated 2,000 municipal employees. Citizens will be able to perform "self service" government inquiries and transactions from home computers, the Internet or public access kiosks and library workstations.

Programs for electronic access to public/government records: Massachusetts Access to Government Information Services (MAGIS) will make information available by the secretary of the commonwealth, including the citizen's guide, facts and figures, and the commonwealth's goods and services bulletin, with details on pending state services and goods acquisitions. They also have set up kiosks helping to make government more accessible. These will allow users a single point of entry into government services and provide one-stop shopping.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Quality Educational Scholastic Trust, Inc. connects 40 public schools and colleges to the Internet, and will provide network access to the 139,000 residents and 20,000 students in geographically isolated Berkshire County (Total $579K, Federal $225K).

Shrewbury's Community Cablevision. This project will make the bookmobile a mobile on-line public access center, giving the computer terminals on the bookmobile instant access via the fiber network to the main library, a statewide library system of over 100 other libraries, and the Internet (Total $34K, Federal $17K).

MICHIGAN

Contact: Ron Choura, Dept. Director of Policy

Michigan Public Service Commission

6545 Merchantile Way

Lansing, Michigan 48509

(517) 334-6240 Fax: (517) 882-4640

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 9,478,000 Number of lines: 5,239,540

Size: 96,705 Number of LECs: 38

Proportion rural: 29.5% BOC: Ameritech

Population per sq. mile: 166.8 Market share of BOC: 84.4%

Median household income: $32,347 Penetration Rate: 95.5%

Percent below poverty: 13.5% LEC competition permitted: 1991

Percent on public assistance: 9.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 11.7 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 40.1% Fiber : Yes Microwave: No

Monthly revenues per customer: $11.31 Percent local loop digital: 99.96%

Revenues if supports eliminated: $19.87 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 61.0% BOC residential rate (s): $10.38

Cable in schools: 76.0% LEC residential rates: $3.76 to $12.30

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US), but a legislative task force is looking at it.

Targeted Groups: None

Definition of basic service: White page listing and dial tone

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributor:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: There is nothing pending now regarding US. The Commission doesn't regulate anything but basic telephone service. They have an unregulated market but there is little or no local competition. However, seven companies are authorized to provide local service. Currently, they are operating under Michigan Telecommunications Act (SB722) of 1995. The revised act requires LECs to provide low income with a 20% discount if income is 150% of poverty level and 65+ get a 10% discount. It is not likely they will develop a USF since they are a low cost state and given the present political climate. The legislature is not concerned about underserved areas but has convened a task force to look at the issue. Ameritech says cost are $18, so rates are likely to go up in the future, and costs will be moved to the local loop.

COMMENTS: Michigan may have peaked with respect to US. They will try new experiment in competition and see what it happens. It may mean that there won't be any modernizing of infrastructure and penetration

rates may fall. Intercity penetration rates are declining now.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: They have a program linking all schools to Internet using Ameritech excess earnings. TCI Continental and other cable companies are installing 2-way broadband systems to link schools to the Internet. In many cases, this service is free or provided at very low rates. This includes some two-way video.

Programs for electronic access to public/government records: There is a move to put all documents on the Internet. The state government has a web page with a number of agencies on it.

Public/private partnerships: There are grants to schools to provide distance learning. They used Ameritech excess earning to connect schools to Internet and all schools are now wired. Michigan Information Network is a collaborative effort to link Michigan residents to the "Information Superhighway." The governor wants to connect business, citizens, and education with a collaborative effort of the state and private sector telecommunications companies.

1995 NTIA/TIIAP GRANTS

Delta-Schoolcraft Intermediate School District - Northwoods Math-Science Center will provide the K-12 schools in the south central Upper Peninsula of MI with full Internet capability, integrating of the project's existing distance learning video and audio network with Internet access (Total $551K, Federal $224K).

Greater Kalamazoo - Telecity USA, is linking local businesses, institutions and citizens to the national and global information infrastructure. It will create a network of networks (CommunityNET, LearnNET, CollegeNET, HealthNET, BizNET, and JobNET) benefiting as many as 200,000 end users (Total $2,016K, Federal $650K).

MINNESOTA

Contact: Mark Oberlander, Telecommunications Manager

Minnesota Public Utility Commission

121 7th Place East Suite 350

St. Paul, Minnesota 55101

(612) 296-1335 Fax: (612) 297-7073

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 4,517,000 Number of lines: 2,459,839

Size: 86,943 Number of LECs: 103

Proportion rural: 30.1% BOC: US West

Population per sq. mile: 56.7 Market share of BOC: 75.3%

Median household income: $31,077 Penetration Rate: 96.4%

Percent below poverty: 12.8% LEC competition permitted: 8/95

Percent on public assistance: 5.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 6.8 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 54.4% Fiber : Yes Microwave: No

Monthly revenues per customer: $15.25 Percent local loop digital: 99.78%

Revenues if supports eliminated: $23.02 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 51.0% BOC residential rate (s): $14.10

Cable in schools: 66.0% LEC residential rates: $5.00 to $30.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated universal service (US) in initial stages of rule making process

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: In 1995, the legislature required the Commission to develop rules for US. The statutory deadline is August 1997. They will be defining basic service as part of the rule making process. They are not sure about target groups since they are very early in process. They will be developing a USF or some other mechanism. Contributors will be defined as widely as possible to include any telecommunication provider. The

LECs are doing well, so rates will get lower. They have already had some rate reductions for LECs. The Commission has ordered all companies to have digital switch and fiber optic lines between all exchanges.

COMMENTS: Telephone service is good today and they want to keep it that way. They want to make sure Minnesota don't loose US due to changes in local competition.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No state agency regulates cable, but both major cable providers have been granted telecommunication licenses. MNet state video network has 52 sites in and working, with another 23 to be installed in the next 6 months. The Legislature appropriated $10.5 million in grant money to expand distance learning using interactive video technology to all school districts currently without it and providing Internet access to all school districts and libraries.

Programs to access advanced information services: Internet is not a telecommunication service, so the PUC is not addressing it in rule making. Access Minnesota seeks to increase the public's awareness of the Internet throughout the state by making it more accessible using existing network infrastructures. Public access terminals will be located in county extension offices in 60 communities throughout the state. They received a $425K grant in 1994 from the NTIA/TIIAP program. The Minnesota Government Information Access Council is developing principles and recommendations for future action.

Programs for electronic access to public/government records: Government Information and Access Council is looking at how this should be done. Contact is Lee Larson (612)296-1334

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Independent School District 318. This project will benefit the Northern Minnesota community of Grand Rapids by connecting five major buildings in this rural school district (over 2,000 square miles) to the Internet (Total $411K, Federal $190K).

MISSISSIPPI

Contact: Nielsen Cochran, Commissioner

Mississippi Public Service Commission

PO Box 1174

Jackson, Mississippi 39205

(601) 961-5430 Fax: (601) 961-5469

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 2,643,000 Number of lines: 1,116,718

Size: 48,286 Number of LECs: 20

Proportion rural: 52.9% BOC: Bell South

Population per sq. mile: 56.3 Market share of BOC: 93.9%

Median household income: $20,585 Penetration Rate: 88.7%

Percent below poverty: 24.5% LEC competition permitted: policy barrier

Percent on public assistance: 11.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 8.2 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 51.3% Fiber : Yes Microwave: No

Monthly revenues per customer: $21.40 Percent local loop digital: 16.44%

Revenues if supports eliminated: $39.36 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 58.0% BOC residential rate (s): $14.85 - $19.00

Cable in schools: 63.0% LEC residential rates: $11.50 to $18.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: BOC administers fund, state oversees

Contributors: LECs and BOC

Basis for contribution: Minutes of use

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement

Who draws from fund: 13 LECs, mostly independents and Bell South a small amount

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The Commission has opened a docket for competition that will include US. They should hold hearings in early 1996. They will discuss the definition of basic service in the docket. They may also target the fund at rural communities where there is a lack of competition. The docket will change the current USF. The new pool will have all parties participate in the USF, not just LECs. The docket will also change the formula for determining contributions. In the revised US program, a subsidy may be available for some but not others. The Commission recently ordered a price cap on Bell South residential rates and some charges will be eliminated. The Commission wants small LECs to provide Bell like services before reducing rates. They have refrained from intervening in infrastructure development, and expect new competitors will bring in new infrastructure technology and fiber.

COMMENTS: Basic telephone service is available throughout Mississippi -- services are available at reasonable price. They are looking at US, and how to maintain it in Mississippi.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable providers have applied for certification since it is against state law. The Commission is reconsidering allowing cable in through a dual certification program. The state has installed two video conferencing rooms in the north and central (capitol) sections of the state. They will also connect 20 sites provided by the community colleges and 12 distance learning sites.

Programs to access advanced information services: From the PUC's perspective, advanced services will not be included in US unless there is some directive from Washington. MS Senate Bill 2945 established the Council for Education Technology to oversee and approve the implementation of new and enhanced technology infrastructures for the educational community. The state is providing Internet access in conjunction with the distance learning network, ultimately to some 1200 schools and district offices.

Programs for electronic access to public/government records:

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Mississippi Dept. of Education - Office of Educational Technology. The Mississippi Family Math and Science Network Project is a learning partnership among parents, children, schools, libraries, and communities that will bring five low-income rural MS communities access to computer information networks (Total $1,615K, Federal $800K)

MISSOURI

Contact: John Van Eschen, Manager Telecommunication Department

Missouri Public Service Commission

PO Box 360

Jefferson City, Missouri 65102

(314) 751-5525 Fax: (314) 751-1847

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 5,234,000 Number of lines: 2,810,915

Size: 69,709 Number of LECs: 42

Proportion rural: 31.3% BOC: Southwestern Bell

Population per sq. mile: 76.0 Market share of BOC: 74.8%

Median household income: $27,490 Penetration Rate: 92.1%

Percent below poverty: 15.6% LEC competition permitted: prohibited

Percent on public assistance: 6.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 9.0 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 125.9% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $13.91 Percent local loop digital: 94.93%

Revenues if supports eliminated: $26.02 Other Technology: fixed cellular

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 53.0% BOC residential rate (s): $7.55 - $12.50

Cable in schools: 66.0% LEC residential rates: $4.00 to $16.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: Single line, dual tone, 911, digital interoffice transmission, availability of

custom calling features, access to long distance service

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Commission has a docket on intraLATA presubscription and local competition. US may come up in that docket. They are looking at safe guards to protect US, nothing has happened yet. US was not an issue in the past, but now it is given local competition. Definition of basic service may be part of docket, if additional services require additional costs. It is too early to tell what groups might be targeted or if there will be a USF. These issues are part of the docket. Participation in the Lifeline program may also become an issue if rates start to go up. There are pending rate cases involving smaller LECs before the Commission. Generally residential rates are going up, and the impact to subscribers is mixed. Rate increase, however, have included the provision of additional services.

COMMENTS: There currently is not a problem with US in Missouri. Local exchange rates have been low. If rates start to go up, Commission may have to do something to keep them affordable. The average residential rate in Missouri is $9.50.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: One cable provider applied for certification.

Programs to access advanced information services: United is conducting an experiment to allow toll free access to Internet, but may not expand this program, since AT&T is opposed to it. Missouri Distance Education Research Network (MoDERN) drives educational networking and distance learning Applications. The Missouri Research and Education Network (MOREnet), a consortium affiliated with the University of Missouri - Columbia, has become the defacto public state network for Internet services. They provide Internet access to 42 higher education institutions and are working to connect all 530 school districts. Their Project REAL: Remote Electronic Access for Libraries will bring all 136 public libraries online and they support an active group of Community Information Networks around the state.

Programs for electronic access to public/government records: Several state agencies have a home page, but not the PSC at this time. The state's Office of Administration is working in cooperation with MOREnet to develop a Network Information Plan to assist agencies in the selection, collection, and publishing of information via the Internet.

Public/private partnerships: SW Bell as part of settlement agreement will fund special projects including a "Telecommunity Center" for video conferencing, etc. in 5 locations in the state.

1995 NTIA/TIIAP GRANTS

Community Resource Network (CRN). The Neighborhood Network is to disseminate high-value city data that supports neighborhood revitalization efforts, and to support computer access without requiring costly computer purchases by the largely volunteer neighborhood organizations. It will provide such information as property ownership, dangerous building status, water shut-off records, housing court dockets and crime statistics.

(Total $787K, Federal $385K).

Public Television 19, Inc. Every school district in Kansas and Missouri will have access to a video information network to be created by Kansas City Public Television (Total $319K, Federal $159K).

Ozarks Regional Information On-line Network (ORION). The NeighborNet project will bring small communities in rural southwest Missouri community information networks -- places where the general public can access information, including local information, on-line (Total $273K, Federal $129K).

MONTANA

Contact: Bob Rowe

Montana Public Service Commission

1701 Prospect Ave.

Helena, Montana 59620

(406) 444-6167 Fax: (406) 444-7618

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 839,000 Number of lines: 435,594

Size: 147,046 Number of LECs: 8

Proportion rural: 47.5% BOC: US West

Population per sq. mile: 5.8 Market share of BOC: 77.6%

Median household income: $26,602 Penetration Rate: 95.4%

Percent below poverty: 13.7% LEC competition permitted: not prohibited

Percent on public assistance: 5.4%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.5 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 66.3% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $13.39 Percent local loop digital: 76.27%

Revenues if supports eliminated: $31.70 Other Technology: Digital radio, BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 57.0% BOC residential rate (s): $13.84

Cable in schools: 53.0% LEC residential rates: $7.10 to $16.38

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: There is a task force looking at the issue of US. The Commission is interested in finding out effects of local competition on universal service in the state. They will address this issue as part of local competition. What constitutes basic service under local competition will also be an issue as well as target groups. There is considerable interest in discounted rates for schools and libraries. A USF is not an immediate issue. PTI is in for substantial rate increase. The increase is driven by a change in Federal USF subsidies due to PTI's increased size. The smaller LECs have joined together to upgrade their infrastructure and provide advanced technologies.

COMMENTS: Most of the network is in good shape. Urban areas have access but the real problem of penetration is in rural areas. If one defines US more broadly, then the rural problem is much bigger. The current rates for local service are reasonable but there will be upward pressure. The real problem is customer service with

US West.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: The Capitol Complex Fiber Backbone reaches all major buildings in the capitol complex for government network support. The state's Information Services Division is expanding SUMMITNET to include Internet access and serve state agencies, local government agencies, institutions of education, libraries, tribal colleges, and qualifying non-profit organizations. The Kootenet Project involves three rural communities which are upgrading their communities telecommunication infrastructure, and four small phone companies which are providing local call access to the Internet.

Programs for electronic access to public/government records: Department of Administration is working on this. The contact is Tony Herbert (406)444-2700. Currently, access is only for state offices but they may be accessible to the public in the future.

Public/private partnerships: The University of Montana has a program that provides the community access to the Internet. There have also been projects involving an educational bulletin board, local tribal colleges, and distance medicine.

1995 NTIA/TIIAP GRANTS

City of Hardin Economic Development. This project will develop local and wide area networks to provide computer access to the Internet for Big Horn County residents. This will improve and enhance information currently available to teachers, students, library patrons, medical patients, business people, and government officials. Citizens will have access to a "virtual library collection" (Total $25K, Federal $12K).

Montana State University-Northern will use existing telecommunications networks to deliver coursework to 30 extremely rural communities. They will provide K-12 courses, advanced placement high school classes, college and graduate level courses, in-service training to teachers, and consultations with medical personnel (Total $1,578K, Federal $695K).

NEBRASKA

Contact: John Burvainis, Department Director of Commission

Nebraska Public Service Commission

300 The Atrium, 1200 North St.

Lincoln, Nebraska 68509

(402) 471-0240 Fax: (402) 471-0254

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,607,000 Number of lines: 862,718

Size: 77,359 Number of LECs: 42

Proportion rural: 33.9% BOC: US West

Population per sq. mile: 20.9 Market share of BOC: 53.9%

Median household income: $30,177 Penetration Rate: 96.9%

Percent below poverty: 10.3% LEC competition permitted: not prohibited

Percent on public assistance: 4.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 2.3 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 28.5% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $12.90 Percent local loop digital: 72.15%

Revenues if supports eliminated: $32.83 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 65.0% BOC residential rate (s): $14.90

Cable in schools: 52.0% LEC residential rates: $4.00 to $15.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: The Commission has opened a docket to look at the need for a USF. They are in the comment stage and no hearings have been set. The driver behind this issue is local competition. US was not an issue in a regulated market. They have a separate docket on local competition. The docket on USF will address the definition of basic service, target groups, and funding mechanisms. Targeted groups could be both high cost and low income, but more toward high cost. They expect that all carriers will contribute to the USF, and it will probably be a rate subsidy based on cost. They are not sure if it will go to the carrier or customer. Residential rates are likely to go up. They may use cellular or radio in some very rural to provide US.

COMMENTS: The Commission is interested in seeing if there's a need for a USF.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable companies. have applied for certification, but they may get into the PCS market.

Programs to access advanced information services: Nebraska has a program to get Internet services to all schools - but not to all communities. This program is funded by tax dollars. The Nebraska legislature has created a Commission on Informational Technology to develop a statewide telecommunications strategy for state services while providing a synergetic partnership with business and industry. Local access to Internet is an issue that may be addressed in the future.

Programs for electronic access to public/government records: Nebraska on-line was set up through the Library Commission.

Public/private partnerships: Nebraska has programs to build a frame relay throughout state for a interactive video network and some distance learning projects. Through Data Network over 150 K-12 school districts will be connected to the Internet via a frame relay. Sandhills technology/ Telecommunications Educational Project (STEP) is constructing this network within several US West local exchanges to provide distance learning and access to advanced information applications.

1995 NTIA/TIIAP GRANTS

Gage County District 15 Beatrice Public Schools. The Beatrice Connection will allow the entire city and the surrounding area to be linked effectively through electronic communication. It will provide Internet training and a WWW server (Total $581K, Federal $230K).

City of Lincoln - Department of Finance/Data Processing Division. InterLinc is designed to assist the city's urban and Lancaster County's rural communities place computers in low income or rural areas to reduce gaps between information "haves" and "have-nots." Dial-up, toll-free access will be available to citizens with computers and modems and government departments and agencies will build interactive WWW content (Total $548K, Federal $185K).

NEVADA

Contact: Sharon Thomas, Manager Rates and Regulatory Analysis

Nevada Public Service Commission

727 Fairview Drive

Carson City, Nevada 89710

(702) 687-6034 Fax: (702) 687-6110

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,389,000 Number of lines: 855,382

Size: 110,567 Number of LECs: 13

Proportion rural: 11.7% BOC: Nevada Bell

Population per sq. mile: 12.6 Market share of BOC: 28.8%

Median household income: $32,026 Penetration Rate: 92.8%

Percent below poverty: 14.4% LEC competition permitted: 5/95

Percent on public assistance: 3.6%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.5 Copper : Yes Hybrid Fiber: Yes

Difference in non-BOC loop costs: -32.2% Fiber : Yes Microwave: No

Monthly revenues per customer: $15.56 Percent local loop digital: 10.36%

Revenues if supports eliminated: $30.86 Other Technology: Fixed cellular and BTRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 66.0% BOC residential rate (s): $10.00

Cable in schools: 71.0% LEC residential rates: $5.75 to $16.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: Touch tone, voice grade, 911, white pages, long distance access, and dial tone

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Independent third party

Contributors: All telecommunication providers

Basis for contribution: % of intrastate retail revenues

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement

Who draws from fund: Small LECs if rate of return is below commission set level

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The Commission has no pending actions with respect to US since they just adopted new omnibus telecommunication regulations that includes a Universal Service Fund. They are transitioning from a state wide fund to a universal service fund. No money is in state USF, but they will collect money for fund when they get funding request.

COMMENTS: Nevada is a very rural state, and it still has some rural residents with toll station service and some party line customers (300-350). Providing US is clearly a staff objective, especially to rural areas.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The Commission doesn't regulate cable. Small direct TV dishes are more likely solution in rural areas than is cable.

Programs to access advanced information services:

Programs for electronic access to public/government records: The states's Department of Information Services (702-687-4091) is working on this. The Commission currently has access to the Internet, but their information is not currently provided on the Internet.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

University and Community College System of Nevada, (UCCSN) will create a system of information brokers who will train end users in remote, rural communities to find and use on-line resources, creating a human infrastructure for end user support. Members of ten rural communities will be empowered to be brokers of on-line user support services that already exist in their community. Local dial-up access will also be provided in the communities served (Total $881K, Federal $427K).

NEW HAMPSHIRE

Contact: Chris Nurse, Utility Analyst

New Hampshire Public Utility Commission

8 Old Suncook Road

Concord, New Hampshire 03301-7319

(603) 271-2431 Fax: (603) 271-8828

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,125,000 Number of lines: 660,804

Size: 9,283 Number of LECs: 14

Proportion rural: 49.0% BOC: NYNEX

Population per sq. mile: 125.5 Market share of BOC: 93.8%

Median household income: $39,644 Penetration Rate: 95.8%

Percent below poverty: 8.6% LEC competition permitted: 8/95

Percent on public assistance: 3.4%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 30.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 5.7% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $11.20 Percent local loop digital: 12.92%

Revenues if supports eliminated: $22.04 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 73.0% BOC residential rate (s): $18.00

Cable in schools: 46.0% LEC residential rates: $6.00 to $9.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) in the initial stage of the

rule making process

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: Yes

PENDING ACTIONS: NHPUC has a docket on local competition (DRM 9591) and they are currently doing background research. They have a mandate to finish by the end of 1996. The definition of basic service is not an issue in NH since all LECs are updated. They don't believe they need to define a higher standard than is currently in place. Target groups also are not real issue in NH. There is no evidence that LECs need a USF because they currently have adequate capital and earnings. But the need for a USF will have to be considered in the rule making process. Any USF would be revenue neutral and would apply to all carriers. They will have to realign rates soon so rates match costs -- urban rates need to come down and rural rates need to go up. Fiber in interoffice connections and digital switching have reduced the difference between rural and urban telephone service.

COMMENTS: US is less of an issue in NH than other states. They are in a state of change. They don't

want to set up a USF until they see what happens in market. They don't need a USF now, and they hope to benefit from the experience of other states. NH doesn't participate in Lifeline because of the matching funds required.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: Local call access to Internet is a big problem in certain areas of the state. There are large rural areas without toll free access. The NHPUC has a docket that may expand local calling areas to address this problem. There is also pressure from the education system to get free Internet access and distance learning. Schools want the phone company to subsidize access and equipment. The Postsecondary Technical Education Department (PSTE) currently contracts for Internet access with NEARNET. Both the state library and the Department of Education have implemented Internet access through the PSTE connection.

Programs for electronic access to public/government records: The NHPUC has a Web page, and they are moving to make Commission orders available. The state is also considering alternatives to allow electronic access to state and federal government information. Public access may be serviced and billed monthly by the local telephone service carrier.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Children's Alliance of New Hampshire, Inc. - Benefits Access Network. SafetyNet will increase access to public and private assistance programs for children, families, and individuals of all ages in the state of New Hampshire through the use of computer networking technologies. Benefit Outreach Screening Software (BOSS), a new software program, will offer families an on-screen questionnaire, determine eligibility, and generate completed application forms for those services (Total $207K, Federal $83K).

NEW JERSEY

Contact: Patricia Campbell

New Jersey Board of Public Utilities

Two Gateway Center

Newark, New Jersey 07102

(201) 648-7694 Fax: (201) 648-4298

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 7,879 Number of lines: 5,212,937

Size: 8,215 Number of LECs: 3

Proportion rural: 10.6% BOC: Bell Atlantic

Population per sq. mile: 1,062.0 Market share of BOC: 96.9%

Median household income: $39,227 Penetration Rate: 93.9%

Percent below poverty: 10.0% LEC competition permitted: under consideration

Percent on public assistance: 6.1%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 387.2 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 42.6% Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 99.98%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 77.0% BOC residential rate (s): $7.00 - 8.00

Cable in schools: 79.0% LEC residential rates: $5.30 to $7.80

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: Single party, multi-party, rotary, voice grade line, 911, white page listing,

long-distance service, repair service, privacy protection

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: Yes High Cost: No

PENDING ACTIONS: Nothing is currently pending regarding US in New Jersey. The Board is initiating an investigation into local competition. A generic proceeding on US is forecasted for the future and rule making may occur at that time.

COMMENTS: Telephone rates in NJ have remained one of the lowest in the country making service affordable to most customers.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: There is a cooperative distance learning project with the New Jersey Institute of Technology, Burlington County College, and OTIS to provide classroom presentations remotely via the Garden State Network.

Programs to access advanced information services: Kiosks are being installed throughout the state to enhance public access to information. Anticipated uses are travel and tourism, employment opportunities, and motor vehicles.

Programs for electronic access to public/government records: Internet access is expanding with a number of agencies expressing interest in both access and providing information to the Internet. A web server has been installed for this use, and a coordinated home page is in development. The intent is to present a single image of the state on the Internet.

Public/private partnerships: See Mercer CCC/MercerNet below.

1995 NTIA/TIIAP GRANTS

Newark Board of Education, in a partnership with the New Community Corporation and the University of Medicine and Dentistry - New Jersey, will expand its Making Healthy MUSIC project by extending access to a greater number of residents in an inner-city neighborhood in Newark. The primary goal is to improve the delivery of primary health care to community residents by empowering the community to manage their own health issues (Total $180K, Federal $100K).

Mercer County Community College. MercerNet is a 14 member consortium that will use Comcast Cablevision to build an interactive wide area network (WAN) to link eight specially equipped high school classrooms, a science center, a vocational-technical school, nine libraries and the community college. The network will provide interactive television for distance learning, access to the Internet, and an interface for multimedia video (Total $2,623K, Federal $700K).

NEW MEXICO

Contact: Ken Solomon, Director of Telecommunication Department

New Mexico State Corporation Commission .

PO Drawer 1269

Santa Fe, New Mexico 87504-1269

(505) 827-4496 Fax: (505) 827-4417

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,616,000 Number of lines: 752,959

Size: 121,598 Number of LECs: 14

Proportion rural: 27.0% BOC: US West

Population per sq. mile: 13.3 Market share of BOC: 86.0%

Median household income: $26,158 Penetration Rate: 88.6%

Percent below poverty: 21.0% LEC competition permitted: 1985

Percent on public assistance: 8.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.5 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 104.7% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $16.26 Percent local loop digital: 99.02%

Revenues if supports eliminated: $63.22 Other Technology: BETRS

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 57.0% BOC residential rate (s): $10.96 to $15.86

Cable in schools: 58.0% LEC residential rates: $10.96 to $15.86

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost, Low income/economically disadvantaged

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Commission established board

Contributors: No one now but everyone was suppose to

Basis for contribution: Revenues

Types of subsidies: Rate subsidy

Who draws from fund: No one is currently drawing from the fund

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: No

PENDING ACTIONS: They will be opening a docket on local competition which may involve US. USF will most likely be targeted to high cost and will involve a rate subsidy. There are no official rate cases currently but US West wants rate rebalancing -- to increase residential and lower business rates.

COMMENTS: New Mexico doesn't have US.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The NM SCC has the authority to regulate two-way voice and data.

Programs to access advanced information services: US West is installing ISDN lines that will make it possible.

With improved infrastructure, advanced information services may become a reality.

Programs for electronic access to public/government records: Corporation Commission data is available on the Internet

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Cooperative Educational Services Albuquerque is a joint planning grant for small and remote rural communities to create an infrastructure development plan that provides a road map for information highway access that is affordable, sustainable and reflective of community needs and interests (Total $33K, Federal $16K).

University of New Mexico - University Affiliated Program/Training Unit, UNM Health Sciences Center working in partnership with rural NM communities and state agencies, will use grant funds to develop a multilevel interactive telecommunications model project called TeleCommunity HELP: Health Education Links Project. The project will provide health and education related support for five rural, underserved communities in NM (Total $530K, Federal $245K).

Santa Fe Community College. This project will determine how telecommunications can help solve problems in the fields of health care and education in locations where there is limited access to a wide range of government and social services (Total $50K, Federal $24K).

La Plaza Telecommunity Foundation, Inc. will set up an electronic plaza in the rural Taos region, where students, seniors, Hispanics, Native Americans, Anglos, and others can meet, communicate, and get information important to their daily lives. La Plaza will provide access to the arts, education, government, health care, business and other information and communication resources free of charge for everyone via public access computers and dial-in connections (Total $2,551K, Federal $450K).

NEW YORK

Contact: Angelo Rella, Principal Valuation Engineer.

New York Public Service Commission

3 Empire Plaza

Albany, New York 12223

(518) 486-2807 Fax: (518) 474-5616

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 18,197,000 Number of lines: 10,623,181

Size: 53,989 Number of LECs: 40

Proportion rural: 15.7% BOC: NYNEX

Population per sq. mile: 385.3 Market share of BOC: 89.8%

Median household income: $31,254 Penetration Rate: 93.5%

Percent below poverty: 15.3% LEC competition permitted: 1992

Percent on public assistance: 9.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 21.8 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 3.3% Fiber : Yes Microwave: No

Monthly revenues per customer: $16.33 Percent local loop digital: 8.41%

Revenues if supports eliminated: $26.15 Other Technology:

Percent who would disconnect: 12.90%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 63.0% BOC residential rate (s): $12.45 - $22.27

Cable in schools: 62.0% LEC residential rates: $3.84 to $17.92

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: None

Definition of basic service: Touch tone, exchange access, statewide relay, non-published service, and

direct inward dialing (see pending)

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: DPS has a docket on local competition, and one part of it involves US. Staff is recommending changes in basic service to include voice grade line, tone dialing, access to local/toll calling, emergency services, operator/directory assist., statewide relay service, directory listing, privacy protection. Two types of programs are to be funded - social programs ("Targeted Accessibility Fund") and high cost ("High Cost Fund"). Every state regulated telecommunication provider will contribute to USF based on each providers revenues. The "TAF" fund distribution will be based on subscription levels of targeted groups. The "HCF" fund distribution will be based on each providers revenues. The fund should be administered by an independent third party. They have a number new local carriers and applications, and some cable companies have applied. NYNEX and RTC have their rates are frozen for 5 years, so rates will be flat for 95% of the state. Rates for the 5% smaller LECs may rise.

COMMENTS: New York has US today except for some pockets. The DPS is looking at the best way to maintain US in the future. SBC has received authority from the PSC for its Southwestern Bell Mobile Systems subsidiary to provide local telephone service in Rochester.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The Cable Commission is being eliminated and its functions are being placed under the Public Service Commission. Cable companies are seeking certification. The state is composing a strategic plan to deploy video conferencing in government agencies.

Programs to access advanced information services: A number of telephone companies are providing local access to Internet. PSC may expand the definition of basic service later to include advanced information services.

Programs for electronic access to public/government records: There is nothing being mandated, but the Public Service Commission will go on the Web in February 1996.

Public/private partnerships: They are looking at ways to use public/private partnerships to build ISDN lines for all schools and to provide discounted rates to schools. The New York Thruway approved a 20 year agreement to allow MFS Network Technology to build a fiber optic network along the toll road system. The state will receive 20% of the gross revenues and stimulation to state-wide economic development as the fiber infrastructure is made accessible to communications carriers.

1995 NTIA/TIIAP GRANTS

NY State Office for the Aging Policy and Program Development. The NY State Office for the Aging and its network of Area Agencies on Aging (AAAs), in partnership with the Administration on Aging, the Social Security Administration, NYSERNet, IBM, NYNEX, and others, will develop the Aging Services Network (ASNet). Fifty-nine Area Agencies on Aging will receive full Internet access. This project will create a new system - Client Based Service - that brings together many existing databases in a coherent manner (Total $3,786K, Federal $1,249K).

Bronx Community College Continuing Education. The Bronx GATEWAY, a consortium of 47 providers, will get information about employment opportunities, job training programs, education programs, and city and state services to people who desperately need it and serve as a tool for economic and social development in the Bronx (Total $113K, Federal $55K).

Beth Israel Medical Center Chemical Dependency Institute. This project will provide 23 Methadone Maintenance Treatment Programs (MMTP) video conferencing access to link nurses and para-professionals with senior physicians to ensure appropriate diagnosis and referral (Total $1,369K, Federal $650K).

Community School District #4 Office of Funded Programs. This grant will provide students in 13 inner-city NY schools with access to computer, information, and Internet technologies (Total $871K, Federal $225K).

Otsego County Chamber of Commerce. The OtsegoNet Social Service will provide county residents with equitable and affordable access to the entire range of information resources of a fully networked community. Currently, less that 1% of the population has local Internet access (Total $622K, Federal $225K).

NORTH CAROLINA

Contact: Gene Clemmons, Director Communications Division

North Carolina Utilities Commission

430 N Salisbury St., Dobbs Bldg.

Raleigh, North Carolina 27602

(919) 733-4249 Fax: (919) 733-9565

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 6,945,000 Number of lines: 3,672,712

Size: 52,672 Number of LECs: 20

Proportion rural: 49.6% BOC: Bell South

Population per sq. mile: 142.6 Market share of BOC: 50.3%

Median household income: $27,835 Penetration Rate: 92.8%

Percent below poverty: 15.7% LEC competition permitted: 1995

Percent on public assistance: 7.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 30.0 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: -13.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $19.07 Percent local loop digital: 23.00%

Revenues if supports eliminated: $23.94 Other Technology:

Percent who would disconnect: 4.30%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 61.0% BOC residential rate (s): $9.94 to $13.94

Cable in schools: 68.0% LEC residential rates: $2.56 to $18.26

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: YesPENDING ACTIONS: NC House Bill 161 is on local competition. The NCUC has established a docket on competitive local service (P-100, Sub 133) which will address the issue of US in June of 1996. Interim rules are to be in place by 12/31/96 and final rules by 7/1/98. In the interim rules, basic service is defined as single party, touch tone, voice grade line, and flat rate local calling. Target groups will be part of the docket, but not interim rules. Interim rules said the Commission should consider need and the type of subsidy, but that they will establish a USF. They have no pending rate cases.

COMMENTS: NC has universal service -- telephone service is available statewide at affordable rates to all, and all service is single party.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: One cable provider has applied for certification and will use cable for telephone transmission. Other cable companies will be seeking certification to provide local competitive service.

Programs to access advanced information services: North Carolina Information Highway (NCIH) includes SONET/ATM which is a broadband network delivering two way interactive video and advanced data communications services. There are approximately 132 operational sites with a planned expansion in the coming year. The NCIH uses fiber-optic phone lines and state of the art switching technology to transmit data, voice, and video faster than ever. Eventually every citizen will have access through a local public library. Private industry is expected to account for 75% of use by 1999.

Programs for electronic access to public/government records: The Department of Administration is working on this (919) 733-6887. Some state agencies are providing access, but it is not a statewide program.

Public/private partnerships: The use of public/private partnerships may come up in the current docket. NC has not relied on pubic/private partnerships in the past.

1995 NTIA/TIIAP GRANTS

Land-of-Sky Regional Council MAIN Board of Directors. The Mountain Area Information Network (MAIN) will bring information resources to the twenty-two isolated and economically depressed counties of Western NC. Only two of these counties have local Internet access despite the growth of the NC Information Highway. In addition to distance education, the network will also provide valuable agricultural data, weather information, economic information, child development instruction, as well as access to an on-line library (Total $3,119K, Federal $800K).

Public Library of Charlotte and Mecklenburg County. Charlotte's Web is a free access, interactive, multimedia, regional network, created by the Public Library of Charlotte and Mecklenburg County and a broad coalition of public and private agencies, for information, education, and communication. Charlotte's Web will demonstrate new

ways of hooking up rural communities at low-cost, using a "mini-hub" of donated 286 computers (Total $1,280K, Federal $500K).

North Carolina State University. The NC University Libraries will deploy a model system for interlibrary loan and document ordering and delivering to students, faculty and staff. At the heart of the project is an intelligent system capable of receiving requests from authorized users anywhere on the Internet, determining available suppliers, and delivering documents electronically or physically (Total $475K, Federal $188K).

Southern Rural Development Initiative. Twenty-four SDRI Consortium members will participate in the development of a plan to provide affordable access to information resources for small and minority farmers and businesses (Total $471K, Federal $210K).

NORTH DAKOTA

Contact: Illona Jeffcoat-Sacco, Director of Public Utility Division

North Dakota Public Service Commission

600 E Boulevard, 12th Floor

Bismarck, North Dakota 58505

(701) 328-2407 Fax: (701) 328-2410

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 635,000 Number of lines: 337,998

Size: 70,704 Number of LECs: 29

Proportion rural: 46.7% BOC: US West

Population per sq. mile: 9.2 Market share of BOC: 71.6%

Median household income: $27,105 Penetration Rate: 96.3%

Percent below poverty: 11.9% LEC competition permitted: no regulatory barrier

Percent on public assistance: 4.3%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 1.4 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 48.6% Fiber : Yes Microwave: No

Monthly revenues per customer: $14.22 Percent local loop digital: 84.82%

Revenues if supports eliminated: $38.45 Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 61.0% BOC residential rate (s): $12.00

Cable in schools: 58.0% LEC residential rates: to

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statute, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: Essential services are defined in statute.

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Nothing is pending regarding US, and the NDPSC has no rate of return jurisdiction over telecommunications. They have a list of essential services but not basic services. They have had no rate cases in the last 10 years. Cooperatives and small independents are exempt from all regulation except price caps (or rate of return if elected) for access. US West is price-capped for educational services.

COMMENTS: The situation is very different in ND than in any other state since telecommunications is only marginally regulated in the state. So, the PSC can't do much about US until the law is changed to give the them regulatory authority. PSC does have authority to grant or deny certificates of public convenience and necessity over all telecommunication companies, and service quality over US West and some LECs.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: ND completed a study looking at the need for advanced information services, but nothing is going on now.

Programs for electronic access to public/government records: Several state agencies are on the Internet, but it is not a formalized process.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Minot State University - North Dakota Center for Disabilities. MSU will develop a communications network that will make training, human services, and research available to some of the most isolated residents of rural North Dakota. They are developing a computer wide area network, comprised of seven sites connected to MSU. Sites include the local schools in seven small communities, which are often the focal point for the community (Total $1,600K, Federal $800K).

OHIO

Contact: Hollie Mion and Roger Montgomery, Chief of Operations and Chief of Rate Section

Telecommunication Department,

Ohio Public Utility Commission

180 E Broad St.

Columbus, Ohio 43215

(614) 644-7867 Fax: (614) 752-8353

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 11,091,000 Number of lines: 5,625,041

Size: 44,828 Number of LECs: 42

Proportion rural: 25.9% BOC: Ameritech

Population per sq. mile: 270.8 Market share of BOC: 58.9%

Median household income: $31,479 Penetration Rate: 94.6%

Percent below poverty: 12.4% LEC competition permitted: 8/95

Percent on public assistance: 8.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 17.8 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 29.3% Fiber : Yes Microwave: No

Monthly revenues per customer: $18.31 Percent local loop digital: 96.88%

Revenues if supports eliminated: $21.88 Other Technology: ISDN

Percent who would disconnect: 4.30%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 65.0% BOC residential rate (s): $15.25

Cable in schools: 77.0% LEC residential rates: $2.70 to $22.90

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: None

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: OPUC has an open docket on local competition with US as a key issue in the docket. Staff is now awaiting comments. The staff has proposed that basic service include single party, touch tone, voice grade, 911, directory assistance, operator assistance, white page listing, long distance, modem grade (14400), repair service, privacy protection, usage packet of 400 minutes, and telecommunication relay services. The target for the US program would be residential subscribers in high cost areas. Economically disadvantaged are taken care of through the Federal programs. In staff recommendations, contributors would include all carriers of local service including cellular and paging companies, and contributions would be based on total intrastate revenues from the past year. Disbursements would go to carriers, not end users. Any carrier serving residential subscribers in high cost area could draw from the USF. They will develop benchmark costs. Carriers' subsidies would be based on the number of lines. Small carriers could get dollar for dollar subsidy, if they reduce access charges. They haven't decided who should administer the fund. Ameritech went to deaveraging of rates. In two years or less, Ohio will have local competition, and in those competitive areas rates may be lower.

COMMENTS: Ohio is committed to the goal of US and is contemplating specific regulations for Ohio. The OPUC recognizes that most citizens do have access. They want to make sure they will continue to have access under the new competitive environment.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: People are becoming more dependent on advanced information services, but the commission doesn't want to over regulate. Access to advanced information services may take care of itself. The issue for OPUC is when to get involved. Ohio SchoolNet is "Ohio's commitment to bring telecommunications and computer technology to the classroom over the next five years." The plan is to wire every classroom to allow for voice, video, data, and interactive distance learning.

Programs for electronic access to public/government records: Some state agencies are putting information on the Internet, and a recent state report recognized this need, but nothing formal is in place now. Access would probably occur through libraries.

Public/private partnerships: Some carriers have implemented educational and distance learning programs.

1995 NTIA/TIIAP GRANTS

Appalachian Center for Economic Networks. ACENet is a community-based on-line system providing Internet access and local and regional information to community members. The grant will enable three groups to access to new information technologies: people moving from welfare to work; small manufacturing firms participating in flexible manufacturing networks; a community-based support organizations (Total $208K, Federal $90K).

Franklin County Department of Human Services Employment Consortium. JOB-LINK is an innovative training, outreach, and information sharing program that will use standard information processing and Internet tools. Specifically, the project will create a shared electronic database on job seekers, training, and employment opportunities; fourteen community access points and a central training classroom; and a program to instruct and train job seekers in basic computer literacy (Total $591K, Federal $289K).

National Emergency Number Association. NENA plans to develop and maintain a highly accurate, interactive database of Public Safety Answering Points, commonly know as 911 centers, to identify areas of the country where 911 is not available, and then help those states and counties implement the service (Total $133K, Federal $66K).

OKLAHOMA

Contact: Larry Schroeder, Deputy Director Public Utilities

Oklahoma Corporation Commission

500 Jim Thorpe Bldg.

Oklahoma City, Oklahoma 73105

(405) 521-2518 Fax: (405) 522-3371

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,231,000 Number of lines: 1,632,674

Size: 69,903 Number of LECs: 47

Proportion rural: 32.3% BOC: Southwestern Bell

Population per sq. mile: 47.1 Market share of BOC: 82.5%

Median household income: $25,363 Penetration Rate: 93.3%

Percent below poverty: 18.4% LEC competition permitted: no regulatory barrier

Percent on public assistance: 6.4%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 4.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 70.2% Fiber : Yes Microwave: No

Monthly revenues per customer: $13.94 Percent local loop digital: 99.70%

Revenues if supports eliminated: $33.84 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 60.0% BOC residential rate (s): $9.50-$13.00

Cable in schools: 62.0% LEC residential rates: $5.00 to $20.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders

mandating Universal Service (US)

Targeted Groups: None

Definition of basic service: Single party, touch tone, 911, white pages, modem capable, custom call feature

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: There is no specific mandate for US, but US is a general principal/concept embraced by the Commission. They have a docket on local competition and draft rules (RM9500019). US and a USF are part of this docket. They are looking at creating a USF to ensure rates are affordable. In the revised draft rules they will add directory and operator assistance to the definition of basic service. They also have a docket on access charges which may require the establishment of a separate high cost fund. All telecommunication service providers will contribute to both funds and this may eventually include cellular providers. The funds will be administered by a 3rd party. The basis for determining carriers contributions to the USF has not been determined. For the high cost fund the assessment will be based on minutes of use. The high cost fund will provide a rate subsidy to carriers based on a Commission benchmark rate of return. They have not developed the mechanism for the USF. In a recent GTE rate case, the Commission reduced GTE's rates eliminating touch tone charges and mileage charges. They have certified a new carrier and another is applying. They expect that rates will stay flat in the future.

COMMENTS: Currently OK has a high level of telephone service. Carriers are improving technology, and they will continue to bring in new technology as the market expands. It is hard to predict the effects of local competition on the introduction of new information technology . OK is beginning to position itself for the new competitive environment.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: Oklahoma is trying to make sure all schools have access to Internet. Oklahoma OneNet is a digital voice, data and video network designed to utilize a combination of Public/private facilities. One Net will link schools, hospitals, libraries, and government offices to the Internet. $6.6M in bond money is funding the first regional hub site location.

Programs for electronic access to public/government records: Oklahoma is putting government information on line and have provided grant money to do some trial programs. They are also putting a number of kiosks into the community to provide access to government agencies.

Public/private partnerships: SW Bell will fund Internet access and infrastructure upgrades to schools as part of their recent rate case.

1995 NTIA/TIIAP GRANTS

Oklahoma Department of Commerce will provide advanced telecommunication services to 15 rural communities in Oklahoma. Children in public school will have access to the Internet and the WWW for homework assignments. Specialized services such as teleradiology and video conference calls will give residents access to higher quality medical care (Total $9,836K, Federal $1,495K).

OREGON

Contact: Scott Girard, Administrator of the Telecommunications Division

Oregon Public Utility Commission

550 Capital St. NE

Salem, Oregon 97310

(503) 378-6119 Fax: (503) 373-7752

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,032,000 Number of lines: 1,611,579

Size: 97,093 Number of LECs: 33

Proportion rural: 29.5% BOC: US West

Population per sq. mile: 31.6 Market share of BOC: 69.0%

Median household income: $32,114 Penetration Rate: 96.2%

Percent below poverty: 11.3% LEC competition permitted: 1993

Percent on public assistance: 5.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 2.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 21.4% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $15.99 Percent local loop digital: 98.63%

Revenues if supports eliminated: $29.31 Other Technology: BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 60.0% BOC residential rate (s): $12.80

Cable in schools: 72.0% LEC residential rates: $8.00 to $16.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost, Low income/economically disadvantaged

Definition of basic service: Single party, touch tone, voice grade, 911, directory assistance, operator assistance,

white pages, long distance, toll blocking, relay services

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: LEC Assoc. (OECA)

Contributors: All telecommunication providers (LECs, BOC, IXCs)

Basis for contribution: Percent of gross revenues

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement

Who draws from fund: LECs who show a cost shift would cause residential rates to exceed $15.00

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: OPUC has completed Phase I of the docket. Phase II of the docket will create the specific mechanisms to fund the program, putting the commission's order to work. Phase II will also establish programs for low income, adding two other categories to OR's US program (Category 1 is their current program). Categories 2 and 3 will be or low income. In these programs, the customer will receive a subsidy based on a maximum monthly charge set by the Commission. Category 2 and 3 subsidies are portable. Eligibility criteria for these programs will be part of Phase II. Pending legislation may also add radio common carriers as contributors to the USF. In addition, there is currently a proposal in front of commission to adopt a policy to eliminate the distinction between "use" and "user". This could lead to equalization of rates for business and residential service.

COMMENTS:

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: Local call access to the Internet is not addressed in the current docket, but the Commission might revisit this issue in two years. The Oregon Telecommunications Forum held 21 regional meetings throughout the state for intensive discussion of telecommunication issues. Connectivity, training and ongoing support requirements are being assessed in preparation for issuing a statewide contract for Internet access. Oregon has established a Governor's Office of Telecommunications, the contact is Lori Itkins.

Programs for electronic access to public/government records: The Department of Administrative Services is working on setting up pages on the Web for state agencies.

Public/private partnerships: Oregon has used public/private partnerships to provide Internet access in libraries. State Bill 994, 1995 gave the Telecommunications Section responsibility to coordinate the consolidation and operation of telecommunications systems used by all state agencies, including emergency services networks.

1995 NTIA/TIIAP GRANTS

Columbia River Inter-Tribal Fish Commission. CRITFC will plan the development of a community network to link Indian tribes in the Columbia River basin. This grant will enable the tribes to develop the technical specifications for a system to meet a variety of telecommunication needs, including management of the fisheries of the Columbia River System (Total $77K, Federal $46K).

Portland Public Schools, District No. 1. The Community Access/Telecommunications Services Project is designed to provide local and enhanced access to community and governmental services. The resulting network will then be used to provide adult education classes; basic adult literacy programs; health, nutrition and other services for senior citizens; a telecommunications skills enhancement program for K-12 students; and access to city, county, and school district on-line services (Total $1,170K, Federal $450K).

Salem Public Library. This project will develop an electronic information network, the Oregon Public Electronic Network, designed to enhance the exchange of information between government and citizens and to provide the infrastructure for regional businesses and organizations to market their products and services via the WWW (Total $482K, Federal $232K).

State of Oregon Governor's Office will develop a comprehensive statewide infrastructure plan to provide all residents of Oregon with the benefits of advanced communications and information services and will implement recommendations from the 1994-95 Oregon Telecommunication Forum (Total $432K, Federal $204K).

PENNSYLVANIA

Contact: Al Kohler, Asst. Council

Pennsylvania Public Utility Commission

PO Box 3265

Harrisburg, Pennsylvania 17105-3265

(717) 772-8840 Fax: (717) 783-3458

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 12,048,000 Number of lines: 6,777,520

Size: 45,759 Number of LECs: 38

Proportion rural: 31.1% BOC: Bell Atlantic

Population per sq. mile: 268.8 Market share of BOC: 77.4%

Median household income: $29,985 Penetration Rate: 97.2%

Percent below poverty: 11.7% LEC competition permitted: no (yes, informally)

Percent on public assistance: 6.9%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 36.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 31.9% Fiber : Yes Microwave: No

Monthly revenues per customer: $12.09 Percent local loop digital: 99.20%

Revenues if supports eliminated: $24.96 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 72.0% BOC residential rate (s): $8.20-12.95

Cable in schools: 61.0% LEC residential rates: $3.25 to $17.73

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: Rural/high cost

Definition of basic service: Single party, touch tone, voice grade, 911, directory assistance, operator assistance,

white pages, long distance, disability service, access to incoming and outgoing calls

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost : Yes

PENDING ACTIONS: The PPUC has three US dockets, one is on the record (I-00940035). They expect to have their US policy in place by summer 1996. The program will focus on high cost, since Lifeline takes care of low income. A second docket will address the US funding mechanism. All telecommunication providers they have jurisdiction over will contribute to the fund including resellers. Cellular is not included now, but may be add later. Contributions to the fund will be based on the carriers share of total intrastate revenues (business and residential). Rate subsidies will be paid to any carriers, if they provide local service. The formula for distributing funds is currently being developed. The USF will be administered by a independent third party. They may address US for low income groups later. The PPUC has no rate cases pending, and recently certified four new LECs.

COMMENTS: PA is committed to US, and the PPUC has put US on the front burner to move PA forward into the new competitive environment. They believe one of the purposes of US is to create competition, and that PA's US program should stimulate competition in rural areas.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The Pennsylvania Rural Health Telecommunication Network (PA HealthNet) provides 2-way video and audio exchange of information for health care delivery purposes including examination, diagnosis, consultation, and treatment. As part of PAHealthNet, physicians in rural areas are linked with other physicians using desktop video.

Programs to access advanced information services: The commission is discussing what should be included in US as part of the rule making process. Pennsylvania is making its private voice network (PANET) available to all 501 schools districts and 29 intermediate units for distance learning programs.

Programs for electronic access to public/government records: This has been a priority, and the Commission has a bulletin board that is accessible to the public.

Public/private partnerships: As part of regulatory reform, Bell has to hook up schools and hospitals to advanced information services.

1995 NTIA/TIIAP GRANTS

National Adoption Center. The National Adoption Exchange will provide Internet access to its existing bulletin board and database system, giving NAE users instant access to adoption information, without searching, and providing them with a gateway to other on-line computer networks (Total $231K, Federal $116K).

Research for Better Schools. RBS will create the Mid-Atlantic Telecommunications Alliance (MATA), a multi-state consortium of business and educational stakeholders, to plan for more equitable student/teacher access to Internet resources. MATA will focus on high-need urban and rural schools (Total $278K, Federal $135K).

University City Science Center LibertyNet will apply telecommunication technology solutions to community development in the region's Empowerment Zone. Five computing centers will have at least ten computers with the capability to search the network. They are designed to promote reinforcement of learning among low income residents by developing telecommunication technology skills, providing opportunities to participate in community life, and connecting them with job information (Total $853K, Federal $400K).

Allegheny-Singer Research Institute. The Allegheny Health, Education and Research Foundation will use grant funds to enhance its telemedicine health care applications through an advanced telecommunication network for real-time sharing of medical information among urban-rural partners. The program will permit remote diagnosis and treatment of patients in outlying, rural areas; medical image distribution; continuing medical education and support of rural physicians and medical students at multiple sites; and on-line medical research and library, e-mail and Internet access (Total $1,129K, Federal $450K).

Borough of Munhall Department of Police. The Technology Utilization Pilot Project for Enhancing Resources (TUPPER) is a cooperative project between seven municipalities' police departments to provide a more visible community police presence and afford greater access to investigative information and data for police officers

(Total $102K, Federal $50K).

RHODE ISLAND

Contact: Brian Kent

Rhode Island Public Utility Commission

100 Orange Street

Providence, Rhode Island 02903

(401) 277-3500 Ext.: 143 Fax: (401) 277-6805

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,000,000 Number of lines: 550,593

Size: 1,231 Number of LECs: 1

Proportion rural: 14.0% BOC: NYNEX

Population per sq. mile: 956.9 Market share of BOC: 100.0%

Median household income: $30,636 Penetration Rate: 96.2%

Percent below poverty: 12.0% LEC competition permitted: yes

Percent on public assistance: 8.0%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: Fiber : Yes Microwave: No

Monthly revenues per customer: Percent local loop digital: 9.57%

Revenues if supports eliminated: Other Technology:

Percent who would disconnect:

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 69.0% BOC residential rate (s): $7.50-$22.00

Cable in schools: 80.0% LEC residential rates: $7.50 to $22.00 (one LEC)

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: No High Cost: No

PENDING ACTIONS: RI PUC has a docket on local competition but has nothing pending on US. They have low loop costs because of the density of the state. Consequently, US has not been an issue in the state and they do not participate in the Federal High Cost program. RI has one LEC, and no new carriers have applied for certification.

COMMENTS:

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services:

Programs for electronic access to public/government records: The PUC is starting a bulletin board to provide information and services on the Internet.

Public/private partnerships: Rhode Island has established a library network system for sharing and interlibrary cooperation.

1995 NTIA/TIIAP GRANTS

None.

SOUTH CAROLINA

Contact: Jim McDaniels, Utilities Engineer

South Carolina Public Service Commission

PO Drawer 11649

Columbia, South Carolina 29211

(803) 737-5105 Fax: (803) 737-5199

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 3,643,000 Number of lines: 1,731,751

Size: 31,189 Number of LECs: 28

Proportion rural: 45.4% BOC: Bell South

Population per sq. mile: 121.0 Market share of BOC: 67.6%

Median household income: $27,667 Penetration Rate: 87.7%

Percent below poverty: 18.9% LEC competition permitted: no regulatory barrier

Percent on public assistance: 6.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 25.8 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: -18.4% Fiber : Yes Microwave: No

Monthly revenues per customer: $18.37 Percent local loop digital: 25.01%

Revenues if supports eliminated: $24.80 Other Technology:

Percent who would disconnect: 4.30%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 59.0% BOC residential rate (s): $14.20 - $16.90

Cable in schools: 53.0% LEC residential rates: $3.00 to $16.90

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: SC PSC has a task force looking at local competition that will address US. They are just forming this task force. The task force will consider a definition for basic service and US funding mechanisms. They have no rate cases pending, but there is an earnings review underway to determine if there are excess earnings.

COMMENTS: SC has a good penetration rate but the PSC will be examining issues related to US and a USF as the state moves into local competition.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The PSC doesn't regulate cable, and no cable providers have applied for certification. Some cable companies have been involved in their proceedings. Four AT&T Vistium desktop video units are being ordered and will be used by the Department of Mental Health to evaluate the use of this technology for interactive sessions with clients in remote locations.

Programs to access advanced information services: Advance information services are not likely to be part of task force's deliberations. It's not an issue, and local exchange companies are trying to make access easier. The state government is also trying to connect libraries to the Internet.

Programs for electronic access to public/government records: The development of a state home page is near completion. Providing access to data/information contained within state government is critical to the success of the network. South Carolina has received some grants to develop local area networks so consumers can have access to government agencies.

Public/private partnerships: Bell South has offered discounted rates to school for access to Internet. Two telemedicine projects are currently underway to evaluate the use of this technology to improve rural health care. Applications being evaluated include consultations, tele-radiology, health education, LAN connectivity, etc. Local exchange carriers are participating in these projects by providing T-1 facilities.

1995 NTIA/TIIAP GRANTS

Office of Information Resources. This project will establish statewide connectivity to the state's forty-six counties and to the ten Councils of Government and to the municipal associations, association of counties in addition to connection to the central network HUB (1994 NTIA/TIIAP grant, Federal $430K).

Piedmont Technical College Academic Affairs. The Piedmont region of SC will create a telecommunication network and lease a fiber optic "backbone" network from six different telephone companies. The resulting network will connect 17 fully interactive video classrooms, delivering a wide variety of educational offerings. This network will also connect to other statewide networks and the Internet (Total $744K, Federal $225K).

SOUTH DAKOTA

Contact: Harlan Best, Department Director Fixed Utility

South Dakota Public Utility Commission

500 E Capital Ave.

Pierre, South Dakota 57501

(605) 773-3201 Fax: (605) 773-3809

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 715,000 Number of lines: 355,257

Size: 77,121 Number of LECs: 31

Proportion rural: 50.0% BOC: US West

Population per sq. mile: 9.4 Market share of BOC: 77.6%

Median household income: $26,351 Penetration Rate: 94.8%

Percent below poverty: 14.8% LEC competition permitted: yes

Percent on public assistance: 4.6%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 1.4 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 65.5% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $11.85 Percent local loop digital: 66.30%

Revenues if supports eliminated: $28.20 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 59.0% BOC residential rate (s): $12.00 to $15.20

Cable in schools: 49.0% LEC residential rates: $5.25 to $15.75

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) in initial stage of

rule making process

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: SDPUC has nothing pending on US. They don't expect to do anything on US unless the Federal programs are changed. US West has requested price regulation for non-competitive products, and will upgrade infrastructure if their request is granted.

COMMENTS: Based on coverage of 96% of the state, US is not an issue in SD. Areas lacking US have improved dramatically. Local competition is currently an issue in SD.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable providers have applied for certification as telecommunication providers. The RDT Network has 79 satellite downlinks located in high schools across the state. They will be able to broadcast from any of 18 interactive sites or turn around broadcasting from anywhere in the world and resend it to any or all downlink locations.

Programs to access advanced information services: In the current rate case, US West would provide local call access to the Internet throughout US West's exchange area (75% of the state). The PUC hosts an Internet Web page with limited background and news.

Programs for electronic access to public/government records:

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

City of Aberdeen. Dakota Interconnect will use fiber optic and microwave technologies to link existing networks and future networks with compatible audio, video, and data connections. Included in this infrastructure are distance learning clusters, encompassing eight school districts in a three county area; a data connection, through the local cable company, among local government, educational institutions, and non-profit organizations; and a statewide two-way interactive video conferencing network (Total $2,472K, Federal $900K).

Mni Sose Intertribal Water Rights Coalition, Inc. This group represents 23 Indian tribes located in five states. Through this grant they will develop a plan to build a communications network that will link the tribes to each other, as well as to critical state and governmental information concerning water and other natural resource management (Total $344K, Federal 233K).

TENNESSEE

Contact: Dr. Chris Klein, Director of Utility Rate Division.

Tennessee Public Service Commission

460 James Robertson Pkwy

Nashville, Tennessee 37243-0505

(615) 532-9750 Fax: (615) 741-2336

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 5,099,000 Number of lines: 2,695,772

Size: 42,145 Number of LECs: 18

Proportion rural: 39.1% BOC: Bell South (80%) of state

Population per sq. mile: 123.7 Market share of BOC: 80.5%

Median household income: $24,339 Penetration Rate: 92.8%

Percent below poverty: 17.0% LEC competition permitted: 1995

Percent on public assistance: 8.6%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 16.0 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: -1.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $16.67 Percent local loop digital: 19.96%

Revenues if supports eliminated: $22.83 Other Technology: ISDN

Percent who would disconnect: 4.30%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 61.0% BOC residential rate (s): $7.50 - $12.15

Cable in schools: 67.0% LEC residential rates: $6.00 to $13.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) actively involved in

rule making process

Targeted Groups: None

Definition of basic service: Touch tone, voice grade line, emergency services, white page listing, access line, telecommunication relay services, and educational discounts

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The TPSC established a proceeding on local competition and is in the process of developing rules on US as part of that case. The Commission has to issue an order by 1/1/96. What groups to target for US is an issue in the case. They are looking at US funding mechanisms and expect that all telecommunication service providers will contribute to the fund, including LECs and long-distance carriers, but not cellular. They aren't sure there will a USF, and if there is it won't be in place until 1997. They want to keep rates at current levels. The TPSC is going through a review of rates for Bell South. Over the next four years prices will be flat under new regulations, after that rates may increase.

COMMENTS: US hasn't been a problem in the past because they had low residential rates and access was not a problem. The TPSC is in the process of investigating the cost of US and need for a USF.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services:

Programs to access advanced information services: There is nothing in the statute on advanced information services. Tennessee Education Network (TEN) has been implemented through a partnership with the Department of Education and the Board of Regents. It will be used to provide telecommunication training classes statewide. The Tennessee Information Infrastructure (TNII) is developing a statewide infrastructure for the public and private sector for delivery of social services, health care, library services, and community information.

Programs for electronic access to public/government records: Agencies are being encouraged to place their material on the state's WWW server. The first information of this type has been provided by the Department of Tourism in the form of the 1995 Tennessee travel guide.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Southwest Tennessee Development District Economic and Community Development. This grant will develop a video conferencing center for use by local governments, businesses, educational institutions and non-profit agencies throughout an eight-county area (Total $185K, Federal $92K).

University of Tennessee Center for Literacy Studies will address the problems of low educational achievement and unemployment by using information technology to create "one-stop shops" for adult education and training in a four-county area. TRIMS will link a wide variety of programs into a single system to serve adults with limited literacy skills (Total $457K, Federal $200K).

LeMoyne-Owen College Division of Research and Sponsored Programs. Residents of a public housing project will gain access to a wide variety of courses through the LeMoyne-Owen Distance Learning Community Center

(Total $294K, Federal 165K).

TEXAS

Contact: John Gillespie, Asst. Manager of Accounting

Financial Review Section

Texas Public Utility Commission

7800 Shoal Creek Blvd.

Austin, Texas 78757

(512) 458-0341 Fax: (512) 458-8340

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 18,031,000 Number of lines: 9,372,622

Size: 267,277 Number of LECs: 58

Proportion rural: 19.7% BOC: Southwestern Bell

Population per sq. mile: 68.8 Market share of BOC: 77.7%

Median household income: $28,282 Penetration Rate: 91.5%

Percent below poverty: 17.8% LEC competition permitted: 1995

Percent on public assistance: 6.3%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 2.4 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 53.2% Fiber : Yes Microwave: No

Monthly revenues per customer: $15.55 Percent local loop digital: 99.00%

Revenues if supports eliminated: $42.94 Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 57.0% BOC residential rate (s): $8.15 - 11.05

Cable in schools: 52.0% LEC residential rates: $5.05 to $19.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost (High Cost Fund), Low income/economically disadvantaged (Tel-Assistance) , Users with disabilities (Dual party Relay Services)

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Independent 3rd party (TECA)

Contributors: LECs, BOC, IXCs

Basis of contribution: Access minutes of use

Types of subsidies: Tel-Assistance program: LECs are reimbursed lost revenues for each qualified resident (below poverty level) -- eligible residents receive a 65% reduction in rates; Dual Party Relay Service: LECs are reimbursed for hearing impaired customers; High Cost Fund: LECs with high cost who show cause

Who draws from fund: LECs who are eligible or have eligible subscribers

Is subsidy portable: Tel-Assistance and Dual Party Relay, Yes; High Cost Fund, No.

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: No Link Up: No High Cost: Yes

PENDING ACTIONS: The TPUC is currently revising the rules for the high cost (HC) program. The Tel-Assistance and Dual Party Relay service programs are going to stay the same. Changes in the High Cost program are taking place and will include who pays into fund and who gets subsidies. They will also have to flush out what a "telecommunication provider" means to determine who contributes to the HC fund. Contributions and distributions are made from each of the three funds. The TPUC has rate cases before it. There have been a number of filings related to new telephone services. One cable company has applied for certification. They expect to see a few rate increases.

COMMENTS: Texas is in a state of change in relation to how the USF will be used.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The General Services Commission has completed the design of a statewide video conferencing network in which agencies will be offered access to switched video services.

Programs to access advanced information services: The current docket requires LECs to make ISDN service available within all exchanges with more than 50,000 population by July 1996. Special access services are available when used in conjunction with telemedicine applications similar to a 25% discount currently available for educational applications. The TEX-AN network provides long distance calling, voice conferencing, and bandwidth (circuits) needed for data, facsimile and video conferencing of state government.

Programs for electronic access to public/government records: Texas has major initiatives in information and service delivery, Texas Information Highway (TIH) for public access to government agencies and Texas-ONE to offer low-cost access to high quality information and services targeted to small and medium size manufacturers. The TPUC has an Internet home page with agendas of pending meetings, notices of hearings, rules, legislative bills and news.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Texas A&M Research Foundation. This grant will demonstrate five different models for extending the information infrastructure into underserved, economically disadvantaged communities using both data and video conferencing services (Total $2,792K Federal $850K).

Corpus Christi Public Library Foundation will establish the Library Information Network for Corpus Christi (LINCC) to link public high school libraries through a shared computer network (Total $622K, Federal $180K).

University of Texas-Pan American Center for Entrepreneurship and Economic Development will develop and operate a NETmobile, which will travel to rural areas in south Texas to train and inform rural business owners, farmers, students, government officials, and residents about the Information Superhighway (Total $344K, Federal $172K).

County of El Paso Consolidated Data Processing will use their grant to construct a video-teleconferencing network that will provide video, audio and data conferencing capabilities to enhance the efficiency and effectiveness of these agencies in addressing crime-related issues in the three-state area (Total $843K, Federal $421K).

Region 19 Education Service Center Division of Technology Services. The Electronic Learning Network Alliance (ELENA) is an effort to implement distance learning in rural school districts. Families will be able to take advantage of courses and information on preventative health issues and social services (Total $470K, Federal $225K).

Holland Independent School District and other members of the Central Texas Collaborative will develop an advanced communications and information network linking the local school, library, and health center with university libraries, major hospitals and the Internet (Total $282K, Federal $130K).

Federation of State Medical Boards of the U.S. - Research and Development. This planning project will develop a model licensure process for the practice of interstate telemedicine and work with state medical boards to implement the model (Total $159K, Federal $75K).

UTAH

Contact: Dave LaFrance, Telecommunication Analyst

Utah Public Service Commission

160 E 300 South Street

Salt Lake City, Utah 84145

(801) 530-6781 Fax: (801) 530-6796

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,860,000 Number of lines: 830,417

Size: 84,904 Number of LECs: 14

Proportion rural: 13.0% BOC: US West

Population per sq. mile: 22.6 Market share of BOC: 95.9%

Median household income: $34,433 Penetration Rate: 96.6%

Percent below poverty: 9.3% LEC competition permitted: 1995

Percent on public assistance: 3.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 132.2% Fiber : Yes Microwave: No

Monthly revenues per customer: $12.60 Percent local loop digital: 98.03%

Revenues if supports eliminated: $29.13 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 50.0% BOC residential rate (s): $3.50 - 7.98

Cable in schools: 66.0% LEC residential rates: $10.00 to $12.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Commission

Contributors: LECs, BOC, wireless, IXCs

Basis for contribution: 1/2 cent/minute NTS traffic

Types of subsidies: Direct infrastructure reimbursement, Cost of service subsidy

Who draws from fund: LECs (except US West) whose rates equal or exceed a target rate set by the UPSC

I s subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Utah continues to have a USF, but only on an interim basis. The objective is to replace it by September 1996 (Docket 93-999-05). The interim USF was an extension of what was in place since 1989. Defining basic service will be part of the revision. They want to do a much better job targeting of high cost areas and plan on breaking study areas into census groups so only those areas needing subsidy get it. They don't see changing who contributes but may lower the 1/2 cent charge since they have excess money in the USF. Distribution of money from the fund will be based on a Commission established "target rate" for local exchange service. They recently certified three new providers and just finished a US West rate case involving rate rebalancing case. US West wanted to raise residential rates by $5 per line. As a result of the rate case, US West was required to keep residential rates flat and lower business rates. LEC rates will go up in the short run, but new entrants will drive down rates. If rates are too low, then no competitors will enter the market. Wireless loop technology will become a factor in high cost areas in the future given Utah's geography.

COMMENTS: Utah's penetration rate is ahead of the national average. The Commission has been proactive and has tried to keep people on the phone system. UPSC policy prohibits disconnecting service because subscriber hasn't paid their long distance bill. They have also been proactive in extending service to non-covered areas using infrastructure reimbursements, and they have the Lifeline program for low income residents.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable providers have applied for certification, but they are watching process.

Programs to access advanced information services: Utah has proposed a Technology 2000 initiative to invest $120M in a state information highway. Technology 2000 will revolutionize education by training teachers and professors and developing technology-delivered courses on the largest wide area network of its kind in the world.

To promote telecommuting, 33 state employees will be provided with voice and data connections and equipment sufficient to perform their work from home from one to five days per week. Utah is also experimenting with satellite radio communication is remote areas to determine the feasibility of this new technology.

Programs for electronic access to public/government records: Utah has an Information Technology Commission that is setting up a state network. The state also has a Web Server/Bulletin Board to provide nationwide access to state government, and the establishment of news, list, gopher, and proxy server interfaces to the Internet is being pursued.

Public/private partnerships: The Technology 2000 initiative has significant private sector involvement and impact. Utah recently became the first state to establish digital signature rules to aid and encourage Electronic Commerce.

1995 NTIA/TIIAP GRANTS

Southern Utah University Department of Continuing Education is involved in a planning project to look at how information infrastructure can improve economic development, as well as K-12 education in the area. The plan calls for an emerging "Electronic Village" to provide introductions to the Internet, and will demonstrate examples of such villages through the WWW (Total $21K, Federal $11K).

Utah Department of Health Office of Strategic Planning and Evaluation will expand access to the Utah Public Health Information Network to the satellite public health offices that serve the 15 rural and frontier counties that make up the southern half of Utah (Total $514K, Federal $222K).

VERMONT

Contact: Peter Bluhm, Policy Analyst

Vermont Public Service Bureau

112 State St., Drawer 20

Monttelier, Vermont 05620-2701

(802) 828-2358 Fax: (802) 828-3351

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 576,000 Number of lines: 327,517

Size: 9,615 Number of LECs: 9

Proportion rural: 67.8% BOC: NYNEX

Population per sq. mile: 62.2 Market share of BOC: 83.4%

Median household income: $32,829 Penetration Rate: 94.7%

Percent below poverty: 10.4% LEC competition permitted: no regulatory barrier

Percent on public assistance: 7.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 23.1 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 2.1% Fiber : Yes Microwave: No

Monthly revenues per customer: $15.15 Percent local loop digital: 14.27%

Revenues if supports eliminated: $28.68 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 58.0% BOC residential rate (s): $12.75

Cable in schools: 34.0% LEC residential rates: $6.00 to $16.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost, Low income/economically disadvantaged, Emergency services (911)

Definition of basic service: Touch tone, voice grade line, enhanced 911 services, directory assistance,

modem capable, telecommunication relay service

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: LEC Assoc. (NECA)

Contributors: LECs, BOC, wireless, resellers

Basis for contribution: 2% surcharge on all bills including interstate, cellular, directory assistance, 2-way cable, and, PCN service

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement

Who draws from fund: Telecommunication Relay Service: Subsidy given to provider of TRS service/contractor; Lifeline: Rate subsidy to the carrier for eligible customers; 911: Direct infrastructure reimbursement to carrier

Is subsidy portable: Lifeline: Yes, Others: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The VPSB is currently trying to decide how to distribute high cost funds. The legislation mandates US for high cost areas, and they are currently developing the formula for distributing high costs funds. They may try to expand the definition of basic service to include white page listing. They have a rate case with NYNEX who wants a 5% increase in residential rates. NYNEX also wants to go under a price cap. Rates are going up for local LECs, but LECs are required to expand services with rate increases. With deaveraging the statewide average rate will stay the same, but rural rates will go up. NYNEX was ordered to put in digital switches and the PSB disallowed the use of copper in the loop.

COMMENTS: NECA administers the Vermont USF.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: The Vermont Common Core initiative seek to utilize new digital and video technologies for use in assessment, instruction, remediation and enrichment activities.

Programs to access advanced information services: The state is expanding Internet to schools and people in rural areas can call schools to access the Internet.

Programs for electronic access to public/government records:

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Castleton State College. Through this grant representatives of the private sector, local government, and education will develop a telecommunication infrastructure plan for west-central Vermont (Total $116K, Federal $54K).

VIRGINIA

Contact: Katie Cummings, Senior Telecommunications Specialist

Division of Communications

Virginia State Corporation Commission

PO Box 1197

Richmond, Virginia 23209

(804) 371-9650 Fax: (804) 371-9069

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 6,491,000 Number of lines: 3,479,506

Size: 42,326 Number of LECs: 21

Proportion rural: 70.6% BOC: Bell Atlantic

Population per sq. mile: 163.9 Market share of BOC: 76.1%

Median household income: $38,223 Penetration Rate: 94.6%

Percent below poverty: 9.4% LEC competition permitted: 1995

Percent on public assistance: 4.8%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 15.0 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 28.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $13.05 Percent local loop digital: 99.74%

Revenues if supports eliminated: $25.94 Other Technology:

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 62.0% BOC residential rate (s): $8.51 - $14.82

Cable in schools: 65.0% LEC residential rates: $6.00 to $16.35

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: None

Definition of basic service: None

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: VCC doesn't have a docket on US now, but they will after they issue rules on local competition. The draft rules require that they define basic service in the planned US docket. Target groups and funding mechanisms may also be part of that docket. Draft rules also say VCC can consider a USF, and requires participation of all telecommunication providers in any US program. GTE has filed a rate case requesting a substantial rate increase. They can't have new entrants until after the new rules are approved. Three companies under currently price cap for 3-5 years, so rates should be flat.

COMMENTS: The VCC is approaching US thoroughly and cautiously. VA has a high penetration rate, affordable rates, and the companies are making money. They're not sure a subsidy is needed and don't want to intervene if there is no problem.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: One cable company has been certified and will become a LEC on 1/1/96.

Programs to access advanced information services: The Virginia Information Technology Infrastructure Task Force is tasked to promote the establishment of a modern, state-of-the-art telecommunications and information technology network, fully utilized by state agencies and institutions, as well as local governments and the general public. Some smaller LECs are trying to support advanced information services by giving a flat rate for local call access to Internet. They are also trying to get more ISDN lines installed.

Programs for electronic access to public/government records: The Department of Information Technology has set up Virginia On-Line. The Commission plans on being on the Internet in the future.

Public/private partnerships: Some LECs have created special grants for education programs. Virginia wants to use more public/private partnerships in future to address its telecommunication needs.

1995 NTIA/TIIAP GRANTS

Blacksburg Electronic Village (BEV), Inc. This grant will bring high capacity Internet-based services into the daily activities of an underserved and disadvantaged, rural Appalachian population by replicating the model of the Blacksburg Electronic Village in Radford, VA. Government information, social services, public education, and local business information will be disseminated to homes, schools, public libraries, and places of work (Total $548K, Federal $267K).

Rockbridge Regional Library. This project is designed to bring citizens access to advanced communications and information services through computers located in public libraries. The libraries will be able to share information by computer links and members of the public can use the Internet and the world-wide information network (Total $606, Federal $225).

WASHINGTON

Contact: Kathryn L. Thomas, Asst. Director of Telecommunications

Washington Utilities and Transportation Commission

1300 S Evergreen Park Dr. SW, PO BOX 47250

Olympia, Washington 98504-7250

(360) 586-6588 Fax: (360) 586-1150

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 5,255,000 Number of lines: 2,946,010

Size: 70,637 Number of LECs: 26

Proportion rural: 23.6% BOC: US West

Population per sq. mile: 78.9 Market share of BOC: 65.6%

Median household income: $34,064 Penetration Rate: 95.7%

Percent below poverty: 11.0% LEC competition permitted: 1994

Percent on public assistance: 6.9%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 11.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 48.6% Fiber : Yes Microwave: No

Monthly revenues per customer: $13.10 Percent local loop digital: 97.93 %

Revenues if supports eliminated: $25.94 Other Technology: ISDN, BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 66.0% BOC residential rate (s): $8.75-12.75

Cable in schools: 74.0% LEC residential rates: $7.00 to $26.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund in place

Targeted Groups: Rural/high cost

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: LEC Association (WECA)

Contributors: LECs, BOC, IXCs

Basis for contribution: Carriers proportion of total state access minutes

Types of subsidies: Rate subsidy to eligible carriers

Who draws from fund: LECs whose unsupported loop cost is greater than 115% of the state-wide average

Is subsidy portable: Not at present

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Washington Independent Telephone Association has requested the WUTC define US and the WUTC is developing a position paper on how US should be funded on a competitively neutral basis. This will eventually lead to an order from the Commission. Some in the state have argued that the commission has no authority in this matter. As part of this position paper, they will define basic service, and modem capability is one issue. They are hoping to coordinate their efforts with current FCC initiatives. They don't regulate wireless, but they would include cellular and cable to the USF if they offer telephone service. The WUTC wants to make sure the distribution of funds, the subsidies, reflect the carrier's actual cost. US West currently has a rate case before the UTC, and GTE and United are making a series of draft filing in lieu of rate cases. US West has requested to increase residential rates to $26. The UTC is not sure rates should go up, even though carriers think so. They expect to see much more wireless used in the future, especially in remote areas.

COMMENTS: The WUTC is trying to be specific about what is being subsidized and how the subsidies will be used.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable companies have applied for certification, but they would participate in the USF if they provide local service.

Programs to access advanced information services: The Commission does not regulate information service providers. There are areas in the state that lack Internet providers, making access a problem in outlying areas. The Commission hopes it won't have to intervene and that competition will expand accessibility. A state Public Information Access Policy Task Force is currently seeking public comment on its draft report. A final report is due December 1, 1996.

Programs for electronic access to public/government records: Washington was the first commission to put documents on the Internet. The Governor has a. task force in place to examine this issue. What should be on line and how it should be paid for are unanswered questions.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

Alliance of Information and Referral Systems Contracts and Grants Division. This grant will establish standards for cataloging emergency resource information. It will also widen the array of information access paths available to disaster professionals, planning groups, and community residents by installing WWW sites to house and protect data structures from disruption (Total $592K, Federal $269K).

Community Technology Institute, located in Seattle, will create access to telecommunications for an additional 15,000 homeless and phoneless poor people by adding four cities - Miama, Phoenix, New Orleans, and Austin - to the national federation of Community Voice Mail programs (Total $183K, Federal $79K).

Northwest Regional Primary Care Association will develop a plan for a Regional Electronic Primary Care Network to serve the region. The project is designed to link primary care health care providers who serve medically underserved populations (Total $49K, Federal $24).

Urban League of Metropolitan Seattle. A team of high school sophomores will plan, design, and initiate a community information network and will, in turn, assist with training succeeding teams. Participants in the project will visit high technology firms in the Seattle area. Mentors from area high tech firms will be assigned to students for a "job shadowing" experience (Total $371K, Federal $181K).

WEST VIRGINIA

Contact: Todd Carden, Manager Telecommunications Section

West Virginia Public Service Commission

PO Box 812

Charleston, West Virginia 25323

(304) 340-0364 Fax: (304) 340-0325

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 1,820,000 Number of lines: 815,728

Size: 24,232 Number of LECs: 9

Proportion rural: 63.9% BOC: Bell Atlantic

Population per sq. mile: 75.6 Market share of BOC: 83.5%

Median household income: $20,301 Penetration Rate: 90.5%

Percent below poverty: 22.3% LEC competition permitted: no regulatory barrier

Percent on public assistance: 9.7%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 8.9 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 26.7% Fiber : Yes Microwave: No

Monthly revenues per customer: $25.56 Percent local loop digital: 100%

Revenues if supports eliminated: $49.37 Other Technology:

Percent who would disconnect: 44.70%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 71.0% BOC residential rate (s): $15.80

Cable in schools: 64.0% LEC residential rates: $22.00 to $36.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: No statutes, regulations, or commission orders mandating

Universal Service (US)

Targeted Groups: Low income/economically disadvantaged

Definition of basic service: None (see pending)

STATE UNIVERSAL SERVICE FUND: No

Fund Administrator:

Contributors:

Basis for contribution:

Types of subsidies:

Who draws from fund:

Is subsidy portable:

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: WV has not needed a USF in the past because US was embedded in the rate structure. But they are now considering a US program as part of a local competition docket (94-1102-T-GI). Currently, they have a task force looking at US. The task force has defined basic service to include a telephone number, white page listing, local call switching, access to 911, operator, directory assistance, telecommunication relay service, and access to a long distance carrier. They plan on staying focused on economically disadvantaged, but a high cost subsidy will be added with new legislation. In the new legislation all carriers will contribute to the USF including wireless. They are in the process of determining the subsidy level. The fund will be administered by an independent third party. Any subsidies will go to the carriers, not the customer. There are no pending rate cases and Bell's flat rate is going down to $15.00 on 1/1/96.

COMMENTS: WV's US program is just now being a formulated and will be quantified in the coming year. They are defining what US means under local competition. They expect the need for a USF is less of a problem in WV. They have statewide rates, and the rural nature of the state (i.e., not much business) means there may be less local competition than in other states.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Cable companies are participating in the task force on local service, but none have applied for certification.

Programs to access advanced information services: Some LECs have linked schools to the Internet, and eventually all schools should have access. West Virginia has been awarded a $2 million grant from IBM for a project aimed at harnessing the Internet for public education instruction. The Library Infomine provides for enhanced communication capabilities at 176 remote libraries around the state, including libraries in 55 public schools.

Programs for electronic access to public/government records:

Public/private partnerships: WV has a Tel-Assistance program that provides a tax credit to carriers for low income subscribers certified as eligible by the Health Department. The World School initiative provides high capacity information access capability to WV public education sites that fall within Bell Atlantic's service area.

1995 NTIA/TIIAP GRANTS

West Virginia Library Commission Cultural Center. This project will enable users in isolated, rural mountain communities to access information services available from electronic sources by merely visiting their local public libraries (Total $501K, Federal $225K).

West Virginia Community Action Directors Association. This planning grant will organize and educate community agencies in the use of the information infrastructure (Total $10K, Federal $5K).

WISCONSIN

Contact: Gary Evenson, Asst. Administrator for Policy

Wisconsin Public Service Commission

PO Box 7854

Madison, Wisconsin 53707

(608) 266-6744 Fax: (608) 266-3957

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 5,038,000 Number of lines: 2,738,591

Size: 80,371 Number of LECs: 86

Proportion rural: 34.3% BOC: Ameritech

Population per sq. mile: 92.8 Market share of BOC: 66.3%

Median household income: $33,415 Penetration Rate: 97.0%

Percent below poverty: 10.8% LEC competition permitted: yes

Percent on public assistance: 6.9%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 13.6 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 41.4% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $13.49 Percent local loop digital: 96.22%

Revenues if supports eliminated: $17.45 Other Technology:

Percent who would disconnect: 4.30%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 53.0% BOC residential rate (s): $5.40

Cable in schools: 71.0% LEC residential rates: $2.90 to $25.00

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with approved rules, fund not in place

Targeted Groups: Rural/high cost; Low income/economically disadvantaged; Users with disabilities; Schools, health care, and libraries (subsidy for advanced services); Homeless (free voice mail)

Definition of basic service: Single party, touch tone, emergency services, long distance access, fax grade line, modem capability (9600), telecommunication relay services, reasonably adequate calling area, white page listing, annual directory, operator and directory assistance, and toll blocking

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Independent 3rd party

Contributors: All providers of telecommunication services with over $200,000 in revenues

Basis for contribution: % of gross revenues

Types of subsidies: Rate subsidy, Direct infrastructure reimbursement, and Equipment reimbursement

Who draws from fund: Rate subsidy or voucher to customer - High rate assistance credit based on percent (2%) of median income in area; Low income based on individual eligibility; Users with disability get equipment voucher

Is subsidy portable: Yes for low income and users with disability

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: Wisconsin statute (S 196.218) mandated USF to start January 1996. The PSC has submitted rules to the legislation for approval. The new USF covers more programs than the past program. They have not set the % of gross revenues that will be used to determine contributions to USF, and have to hire an administrator. Other than this there are no pending changes. They do have to review the rules every 2 years. They have no cases pending. AMERITECH and GTE are under price regulation so their rates won't change much. They are seeing more and more fiber installed.

COMMENTS: WPSC is very close to implementing Wisconsin's new US program. They have a good program ready to go, but the legislature may not like the rules. They need to hire an administrator. The problem they may have is collecting money for the fund from resellers since some of them are located out of state.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: Some cable companies are providing point-to-point communication, and some have recently been approved to provide distance learning. The state is implementing its own statewide compressed videoconferencing and delivery network.

Programs to access advanced information services: The US program will provide advanced services to schools, libraries, homeless and health care organizations. Schools and library will receive 10-30% rate subsidies for advanced services from the USF. Homeless will have access to free voice mail. When Ameritech and GTE went under price regulation, they were required to install fiber to all secondary schools in Wisconsin. The Wisconsin Community Information Partnership (WiCIP) is developing a prototype for local community information networks that it hopes to deploy statewide.

Programs for electronic access to public/government records: There is currently a study underway to investigate this issue in the Department of Administration.

Public/private partnerships: Wisconsin Advanced Telecommunication Foundation supports the development of public/private partnerships. An Educational Technology Board is also being implemented to facilitate public/private partnerships. These are grant and/or loan programs.

1995 NTIA/TIIAP GRANTS

State of Wisconsin Department of Administration Bureau of Technology, Policy and Planning. The expansion of "Badger Dial" Internet access will provide cost-effective, universal Internet access for K-12 schools everywhere in Wisconsin providing an affordable base-line connection option to every school in the state (Total $742K, Federal $224K).

Milwaukee County Sheriff's Department is developing a method for delivering timely, accurate photographic information to the police officer on the street. The end result will be a telecommunications network capable of delivering high quality, photographic images to more than 3,500 officers (Total $83K, Federal $41K).

WYOMING

Contact: Ivan Williams, Staff Attorney

Wyoming Public Service Commission

700 W 21st St.

Cheyenne, Wyoming 82002

(307) 777-7427 Fax: (307) 777-5700

STATE DEMOGRAPHICS TELEPHONE SERVICE DEMOGRAPHICS

Population: 470,000 Number of lines: 249,188

Size: 97,819 Number of LECs: 14

Proportion rural: 35.0% BOC: US West

Population per sq. mile: 4.8 Market share of BOC: 83.0%

Median household income: $30,379 Penetration Rate: 92.6%

Percent below poverty: 10.3% LEC competition permitted: 1995

Percent on public assistance: 5.2%

OPASTCO STUDY TELEPHONE SERVICE TECHNOLOGY

Subscribers per sq. mile: 0.2 Copper : Yes Hybrid Fiber: No

Difference in non-BOC loop costs: 35.5% Fiber : Yes Microwave: Yes

Monthly revenues per customer: $16.05 Percent local loop digital: 67.96%

Revenues if supports eliminated: $35.26 Other Technology: Fixed cellular, BETRS

Percent who would disconnect: 27.10%

ADVANCED TELECOMMUNICATIONS TELEPHONE SERVICE RATES

Cable households: 72.0% BOC residential rate (s): $12.64 - $14.64

Cable in schools: 63.0% LEC residential rates: $5.75 to $16.80

UNIVERSAL TELEPHONE SERVICE PROGRAMS

Status of State Universal Service Program: Mandated Universal Service (US) with proposed rules, fund not in place (Final adoption of rules is anticipated in early December, 1995)

Targeted Groups: Rural/high rate

Definition of basic service: Single party, voice grade, 911, long distance, residential or business flat or measured

STATE UNIVERSAL SERVICE FUND: Yes

Fund Administrator: Commission

Contributors: LECs, BOC, IXCs, wireless

Basis for contribution: % of gross retail revenues

Types of subsidies: Rate subsidy to carriers with credit listed on customer bill

Who draws from fund: LECs with rate above 130% of weighted statewide average

Is subsidy portable: No

FEDERAL UNIVERSAL SERVICE FUNDS: Lifeline: Yes Link Up: Yes High Cost: Yes

PENDING ACTIONS: The PSC is nearly finished with the rule making process for US. The Governor will sign the rules within 60 days of final adoption, and they will begin implementing the program. If no one draws from the fund, the commission can suspend it. US West has filed a price regulation plan that includes some substantial rate increases. There is also some discussion about upgrading the infrastructure.

COMMENTS: The WPSC has a heightened awareness of US in light of recent transitions in local competition. Deregulation makes US more important, and the key to US is implementation of a funding mechanism that insures availability and affordability.

ADVANCED TELECOMMUNICATION SERVICES

Programs to access video/cable services: No cable companies have applied for certification.

Programs to access advanced information services:

Programs for electronic access to public/government records: Ferret is a state sponsored bulletin board that allows public access to government records. The Commission is in process of setting up its own bulletin board.

Public/private partnerships:

1995 NTIA/TIIAP GRANTS

None.

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