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Dear Colleagues,
This is similar to what Susan Keitel (the New York Library Assn
lobbyist) told us last Thursday. It varies in some of the details, but
the fundamental points are the same. Public libraries desperately need
this subsidy, and it represents a tremendous saving over the increase in
line charges we will be facing in the coming months and years.
Please write, call, etc. per the instructions below [or in the
attachment]. This one has a huge dollar payoff if it comes to fruition,
and will enable us to do the upgrading of our lines over the next few
years that would otherwise be virtually prohibitive. And it will enable
public libraries to continue to be the safety net for all those who
otherwise could not get access to the Internet.
-- MitchDr. Maurice J. Freedman (914) 592-8214 x223 Director fax: (914) 347-3617 Westchester Library System freedman@wls.lib.ny.us 8 Westchester Plaza Web site: http://www.wls.lib.ny.us Elmsford, NY 10523 ************************************************************************ "I'll be seeing you in all the old familiar places..."
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Return-Path: <Pulisdo-Manager@sals.edu> Received: from sallib.sals.edu by wlsmail (SMI-8.6/SMI-SVR4) id LAA05667; Tue, 25 Mar 1997 11:10:40 -0500 Received: from scls1.suffolk.lib.ny.us by sallib.sals.edu with SMTP; Tue, 25 Mar 1997 11:06:59 -0500 (EST) Received: from bookworm.suffolk.lib.ny.us (bookworm.suffolk.lib.ny.us [199.173.91.81]) by scls1.suffolk.lib.ny.us (8.6.12/8.6.6) with ESMTP id LAA26064 for <PULISDO@sals.edu>; Tue, 25 Mar 1997 11:11:41 -0500 Received: from localhost by bookworm.suffolk.lib.ny.us (SMI-8.6/SMI-SVR4) id KAA03853; Tue, 25 Mar 1997 10:50:20 -0500 Date: Tue, 25 Mar 1997 10:50:20 -0500 (EST) From: Jerry Nichols <jerry@suffolk.lib.ny.us> X-Sender: jerry@bookworm Reply-To: Jerry Nichols <jerry@suffolk.lib.ny.us> To: PULISDO@sals.edu Subject: PSC Discount Program Message-ID: <Pine.SOL.3.95.970325101140.5431D-100000@bookworm> MIME-Version: 1.0 Content-Type: TEXT/PLAIN; charset=US-ASCII
THe Public Service Commission's Committee for Schools & Libraries has issued its Recommended Plan or Discounting Intrastate Telecommunications Services. This plan has been submitted to the PSC's Administrative Law Judge who, in turn, will make her recommendations to the Public Service Commissioners for action at their May 11, 1997 meeting.
This plan is intended to compliment the federal plan covering interstate telecommunications costs, as well as other, non-regulated services such as "inside wiring".
Simply stated, the recommendation provides for significant discounts on existing and future telecommunications services for schools and libraries in New York State. Certification would be a one time process (no annual grant procedure as in the federal model). Your monthly bills would be adjusted and the carriers would be reimbursed from the Schools & Libraries Fund established as part of this program and funded by a .75% surcharge on phone bills.
All libraries and library systems (except school libraries who are eligible under the school program for similar discounts) would receive the highest discount under the program.....80%
We trust that gets your attention!
The only problem we anticipate is that the Commissioners may consider this program too generous. It should be noted that the telecommunications carriers of our State have agreed to this proposal. This is by far the most significant initiative of any State under the Telecommunications Act of 1996.
To assure its implementation we need to let the PSC know how important this will be for the future of New York and its citizens. A copy of the report is appended to this message. (This is an earlier e-mail version and may differ in very minor aspects from the final "formal" report).
Please review this information and send your letters of support to:
Hon. Eleanor Stein N.Y. STate Dept. of Public Service 3 Empire State Plaza Albany, NY 12223
also contact the Public Service Commissioners... you will find their addresses at www.dps.state.ny.us
Thanks for your support!
Jerry Nichols Suffolk Cooperative Library System
4th Draft (3/12)
A RECOMMENDED PLAN FOR
DISCOUNTING INTRASTATE
TELECOMMUNICATIONS SERVICES
FOR SCHOOLS & LIBRARIES
Prepared by:
The New York Committee for Schools and Libraries
TABLE OF CONTENTS
Executive Summary......................................ii
Introduction...........................................
Organizations Represented on the Committee............. Mission Statement......................................
Plan...................................................
A. Services Eligible............................
B. Funding Requirements.........................
C. Discounts....................................
D. Fund Administration..........................
Appendix...............................................
A. Organizations Served - Profile of Schools and libraries.......................
B. Examples of Types of Services Eligible........................
C. Committee Members............................
D. Telecommunications Act Provisions............
E. RTC and Frontier dissent..................... EXECUTIVE SUMMARY
The Telecommunications Act of 1996 (the Act) directs the states to establish discounts for schools and libraries on intrastate telecommunications services. To develop and implement the federal requirements in New York, a committee of representatives from the State Education Department, the school and library community, the telecommunications and cable industry, advocacy groups and Commission staff collaborated over the course of several months to craft an intrastate discount plan. The proposed discount plan consists of four areas: services eligible, funding requirements, discounts, and fund administration. Regarding eligible services, the committee recommends that all intrastate regulated telecommunications services be eligible for discounts. To fund this discount, the committee supports instituting an explicit surcharge on each carrier's regulated intrastate telecommunications retail revenues. This surcharge is to be applied on end user billing. The base price to be discounted would be the lowest of either the tariffed rate, a competitively bid rate, or a negotiated rate. The committee further recommends that the proposed discount structure be divided into two categories; all schools and school libraries outside the "Big 5" areas would qualify for a discount of 60%, while the "Big 5" schools and schools libraries, as well as all eligible libraries and library systems would qualify for a discount of 80%. Fund distribution and management would be provided for by the New York Intrastate Access Settlement Pool. The committee also recommends a three year plan with the first year fund estimated at $60 million, with the revenues to be derived through a .75% surcharge on regulated intrastate telecommunications services retail billing. The three year plan increases the fund 20% in Years 2 and 3 to accommodate estimated expected growth in expenditures on telecommunications services by schools and libraries. Any surplus funds would be carried over to subsequent years to ensure against any unforeseen demand. In Years 2 and 3, the level of the surcharge would be capped at 1% with no lower limit. Lastly, the Committee recommends establishing an oversight committee to monitor and evaluate the program as well as to recommend changes to the Commission.
Introduction Our minds want clothes as much as our bodies.
-- Samuel Butler (II)
When the Commission directed staff to develop a plan
for discounted service to schools and libraries, it implicitly
recognized that advanced telecommunication and information
services are the brick and mortar that will enable New Yorkers to
participate fully in every aspect of modern life as we enter the
next millennium. Should the proposal here succeed, we may be
witness to exciting advancements every level in our education and
library systems: youngsters will achieve greater literacy in the
arts and sciences and be better prepared to pursue higher
education and enter the world of work; businesses will draw from
a more prepared workforce; all citizens will have greater access
to more quality information; the walls dividing the haves from
the have-nots will come tumbling down.
This report reflects several months of ground-breaking
work by a committee comprising representatives of the school and
library communities, the telecommunication and cable industries,
and advocacy organizations. Many of those who contributed to
this effort had no prior experience with Commission proceedings
and as a result had to learn the regulatory ropes while trying to
develop sound public policy recommendations. While the
participants did not always agree, all shared a commitment to
committee's overall objective and were willing to invest
extraordinary resources to fashion a discount program that is
fair, workable, and tailored to the needs of New Yorkers.
Before the committee began its work, Judge Stein
directed staff, which serves as her advisor, to engage in a
grassroots information gathering process to determine the needs
of the school and libraries which are the intended beneficiaries
of the discounts. To satisfy this assignment and with the help
of the State Education Department and the New York Library
Association, staff conducted 8 roundtable discussions around the
state in which over 100 parties participated. These discussions
helped sharpen the issues and areas of interest that must be
addressed in the discount plan.
During the course of the roundtable discussions,
several messages resonated with a percussive beat from all
quarters. First, there is enormous pent-up demand on the part of
our schools, libraries and their constituencies for advanced
telecommunication services. Second, any plan must be simple:
both the schools and the libraries strongly recommended that the
Commission eschew imposing complicated "means" tests and
applications procedures on would-be discount recipients since
these would most certainly cripple the ability of institutions --
already strapped for resources -- to participate fully in any
program, however well meaning. Third, the Commission must be
guided by principles of fairness and equity; institutions in the
rural north country should be treated the same vis-a-vis those in
mid-town Manhattan and should not be pitted against each other.
Nonetheless, there may be a need to distinguish schools from
libraries because of the different constituencies they serve and
the way they are funded. Libraries do not receive the same level
of public support as schools and unlike schools, libraries are
open to everyone; people of all ages with every conceivable need.
Further, libraries often must pick up where schools leave off by
being available to the student who must rely on the public
library for after-school access to the "on-line" world because he
or she has no such access from home. At the same time, school
teachers are among the last to have immediate access to
telephones; there are schools in this state that serve hundreds
of students while having only single line telephone service to
their administrative offices; for these institutions, ready
access to the world of advanced information without financial
assistance is akin to dreaming of finding life on Mars.
Once the roundtable discussions were concluded, staff
invited all interested parties to tackle the more focused work of
crafting a discount proposal. The committee of approximately 45
members (attachment C) first met on December 19, 1996. After the
initial kick-off meeting, committee members drafted a mission
statement (Page xxxxY), and set an aggressive schedule so that it
could meet Judge Stein's deadline of March 14 to present its
report. As the work progressed, issues requiring more focused
discussions, such as the nuts and bolts of how the plan would be
administered on a daily basis, were delegated by the full
committee to subcommittees. The subcommittee work progressed on
a parallel track to that of the full committee.
Throughout the committee discussions the
telecommunication industry reminded the committee that the
discount plan is not intended to be nor could it be a panacea for
an under-funded education system, that all ratepayers will
shoulder the burden of paying for the discounts, that there would
likely be a backlash if the fund is perceived as being too large,
no matter how worthy its purpose, and that the industry will
cooperate to make the program a success but must be mindful of
the impact of hitting consumers with what amounts to another tax
on their telephone bills. The industry brought its larger
concerns to the table -- its need to be responsive to the
changing telecommunication environment -- as it urged
participants to act responsibly when calculating the size of the
fund and the means with which it would be collected from
ratepayers.Staff assumed a facilitator/advisor role to the
committee. It ensured that the committee kept to its schedule,
stayed focused on its tasks, had the material necessary to do its
work, and gave technical assistance in those areas with which
committee members would not likely have expertise such as
Commission policies and procedures and the status of the FCC's
proceeding to implement the Telecommunication Act of 1996. In
addition, staff established a page on the Commission's Web site
which it updated weekly with minutes of all meetings and a
complete listing of committee members. By doing so, the
committee was open to all comers.
NYNEX generously made its video teleconference
facilities available for the weekly committee meetings so that
those who wished to participate could do so without extended time
away from their homes and offices.
The result of this collaborative effort and hard work
is the plan described in this document: it elegant in its
simplicity while at the same time addresses the different -- and
sometimes competing -- concerns expressed by parties throughout
the process. And while the Committee did not achieve consensus
on every issue, it did on those that are most pressing; the size
of the fund during the plan's initial three years, the levels of
the discounts, and the manner in which the dollars should be
collected from ratepayers. If this plan is adopted, there will
be no burdensome application process. Institutions eligible for
discounts will fall into one of two easily distinguishable
categories. There is a process in place to monitor and analyze
the discount plan and make recommendations for changes to
accommodate unforeseen events such as an unanticipated demand on
the funds resources.
The Committee looks forward working with the Commission
to bring its plan to fruition.
ORGANIZATIONS REPRESENTED ON THE COMMITTEE
ALLTEL Archdiocese of New York Schools AT&T Big 5 School Districts Cable TV & Telecom Association of New York City University of New York Citizens Telecom. Co. Communications Carriers for Latinos, Inc. Dutchess County BOCES IBM Libraries for the Future MCI New York City Board of Education New York Library Association New York Public Library NY State Conference of Library Systems New York State Library New York State School Board Assoc. NYCSLS - NYC Schools NYNEX NYSERNET New York State Telephone Association Public Library System Directors Organization of NY State Rochester Telephone Corporation State Education Department Suffolk County Cooperative Library System Time Warner/LLGM US Sprint Winstar Communications
MISSION STATEMENT
The Schools and Libraries Committee will propose a plan to foster full, equitable and affordable access to telecommunications services for eligible New York State schools (k-12) and libraries. This plan will be consistent with the requirements of the Telecommunications Act of 1996 and, to the extent possible, will: be flexible to meet the changing and various needs of schools and libraries, recognize the changing telecommunication environment, and provide for advances in technology. Task In the context of the Public Service Commission's universal service proceeding (Case 94-C-0095), and consistent with the requirements of the Telecommunications Act of 1996, the Schools and Libraries Committee will develop a plan for establishing discounts on intrastate telecommunications services for schools and libraries. Goals To achieve this task, the Committee shall develop a state plan consistent with the following principles: o Encourage universal access to advanced telecommunications services for all schools and libraries. o Serve the needs of the schools and libraries equitably and efficiently. o Be competitively neutral to providers, both in terms of eligibility for funding and in terms of financial contributions. o Consider the financial burden on providers and their customers. o Complement the federal discount plan for ease of administration and consistency. o Be simple to implement and administer.
THE DISCOUNT PLAN
The discount plan consists of the following sections:
A. Services eligible B. Funding requirements C. Level of discounts D. Administration.
A. Services Eligible for Discounts The Committee recommends that any intrastate telecommunications service that is regulated by the Commission should be eligible for discounts (Appendix A provides examples of such services that would be eligible for discounts). With the exception of Internet access and inside wiring (a.k.a. internal connections), the Committee's recommendation is consistent with that of Federal-State Joint Board, which recommended that all interstate and intrastate telecommunications services be eligible for discounts. The Committee excludes interned access from its eligible services list because it recognized that the Commission can order discounts only on those services which are regulated by the Commission. Therefore, intrastate discounts would be available for the subscription fee paid to an ISP but will apply to any telecommunications service used to access an Internet Service Provider (ISP) such as 1MB, 56K, T1 and T3. Regarding inside wiring, discounts would be available only for regulated inside wiring services. Thus, routers, servers and hubs, which were included under the Joint Board's recommendation, would not be eligible for discounts under New York's plan. Although installation and maintenance of inside wiring is provided as a regulated service by NYNEX, Frontier and some other LECs, only the installation and maintenance of simple twisted pair wiring is regulated. Thus, installations of high capacity wiring such as category 5 wire would not be included as a regulated or discounted service. While the Committee supports discounts on any intrastate telecommunications service purchased by a school or library, an issue arose regarding whether the inclusion of some services would have an adverse impact on competition. Specifically, the Committee identified: (1) vertical services/"custom calling" features; (2) voice messaging; (3) Centrex: and (4) inside wire as services that are provided as both regulated and unregulated services. Some members of the group are concerned that non- regulated telecommunications services with features and functionalities similar to regulated services will not be eligible for discounts, which could put at a competitive disadvantage providers of those non-regulated services. For example, vendors who provide PBX service (an alternative to CENTREX) might have a difficult time offering their services to schools and libraries in competition with providers of regulated Centrex service who can offer their services at a discount rate. At this juncture the committee agrees to flag these four services and delegate to the oversight committee the task of evaluating the impact this program has on the competitive marketplace. B. Funding Deriving Fund Revenues The Committee discussed four possible methods of deriving the funds necessary to support the discount plan; 1) Explicit surcharge on end users bill 2) Supplement the fund with fine/penalty monies 3) Assess carriers gross revenues 4) Combination of numbers 1 and 3. The majority of the Committee supports the concept of generating the fund by implementing a surcharge on the intrastate retail revenues of telecommunications carriers regulated by the PSC. This would exclude carrier to carrier billing such as access charges. The Committee also agrees that the surcharge should be competitively neutral and imposed uniformly on each carrier's intrastate end user retail revenues, thereby ensuring that each carrier contributes equitably into the fund. Every carrier that contributes into the fund would be eligible to withdraw from the fund, to the extent they provide services eligible for discounts. Establishing a Baseline Service After considerable discussion, the Committee agreed that it should not establish a baseline or minimum level of connectivity that it would strive to obtain for each institution. Developing such a benchmark would introduces complex micromanagement to the program. Nonetheless, the committee believes that the program should be evaluated at various intervals to ensure that the technology poor institutions are participating. If the technology poor institutions are not benefiting, the program should be modified to ensure these institutions are not neglected. Determining a Base Price Competitive Environment In a competitive environment where schools and libraries may be able to purchase service from more than one carrier, the base price to be discounted will be the lowest of either: the tariff rate, a rate achieved through a competitive biding process, or a negotiated rate. Non-Competitive Environment In a non-competitive environment where there is only one carrier able to provide a specific service, the base price to be discounted will be the lowest of the tariff rate or a negotiated rate. Additionally, competition will be encouraged and methods used to promote competition such as aggregation will be accommodated in the administration of the program. In this respect, third parties such as associations, universities, and other consortia, that act on behalf of schools and libraries as aggregators will be eligible to participate in the discount program for those regulated telecommunications services that are used by schools and libraries. The details will be worked out by the administrative subcommittee. Size of the Fund The fund size was derived through a collaborative negotiating process with the parties expressing concern over striking the balance between keeping the fund at a reasonable size with respect to a surcharge on end user bills, and establishing a meaningful discount that will promote the necessary level of connectivity for schools and libraries. The final funding recommendations offered here represent a compromise of the parties' initial positions except for the RTC/Frontier administrative process (see Appendix E). It should be noted that the Carriers' support of the fund size is contingent on approval of the surcharge on end user billing. Should the Commission reject the surcharge, the Carriers would want to revisit the fund size and associated issues. The Committee recommends a three-year plan as outlined below.
Year 1 $60 million estimated fund collected from a .75% surcharge. Plan to be reviewed monthly to adjust for yr 2. Year 2 $72 million maximum collection target using a surcharge that cannot exceed 1%. Any carryover is available to be spent during year two. The factors that will determine the surcharge: 1) The amount collected in year one as well as the estimated revenue growth, and 2) The discount expenditures in year one. These discount expenditures may substantiate lowering or raising the surcharge up to a 1% cap. Review plan monthly to adjust for yr 3 Year 3 $86 million maximum collection target using a surcharge that cannot exceed 1%. Any carryover is available to be spent. There are two factors that will determine the surcharge: 1) The amount collected in year two as well as the estimated revenue growth and 2) The discount expenditures in year two. These discount expenditures may substantiate lowering or raising the surcharge up to a 1% cap. The fund size in Year 1 is based on estimated regulated intrastate telecommunications expenditures for K-12 of $80 million. (1996 estimated expenditures were $66. Million) The application of the recommended discounts results in a year one fund size of approximately $60, Million. Estimates for Years 2 and 3 reflect a 20% increase per year expenditures on telecommunications services. This 20% stimulation is an estimate based on the Committee's belief that such increases are likely as schools and libraries take advantage of the discounts to purchase new telecommunications services. In addition, any surplus after the first or second year will be carried over to the following year to accommodate any unexpected demand. Any shortfall will not be the obligation of the carriers and will be managed through fund administrative measure to be worked out by the administrative subcommittee as it continues its work. The Committee also recommends that the surcharge in Year 1 be set at .75%, based on current intrastate retail telecommunications revenues of $8 billion per year. The Committee projects the surcharge level in Years 2 and 3 would be capped at 1%, depending on the growth in total intrastate retail revenues and whether funds would be carried over from the previous year. While the committee has recommended a fund size during the first three years; funding for subsequent years must be continued to ensure ongoing support for the plan's discounts. YearFund Size targetSurcharge1$60 million.75%2$72 million< 1.0%3$86 million< 1.0% C. Discounts Criteria o Simple to administer o Equitable Considerations Schools outside "Big 5" areas get first instance state aid of 36% to 90% of expenses, including telecommunications expenses, depending upon poverty and need factors. Therefore, they are able to recoup more of their telecommunication related expenses through state aid funding formulas. "Big 5" schools (NYC, Rochester, Buffalo, Syracuse, and Yonkers) are generally urban low income schools. Libraries receive minimal state funding and in many cases will depend exclusively on the discount to make purchase of telecommunication services affordable. Recommended Formula Schools & school libraries (non "Big 5" areas) = x% "Big 5" schools & libraries & all public libraries= x% + 20
ADMINISTRATIVE
Fund Administrator The Committee recommends that the New York Intrastate Access Settlement Pool administer the fund. Library Eligibility Eligibility to be determined by Library Services and Technology Act (LSTA). The administrative subcommittee interpreted this to include: Public Academic Research (not part of a higher education institution and resources available to the public for scholarly purposes and not otherwise available) Private (member of a Library System and not for-profit) Library Systems (74 Headquarters) Although not included within LSTA definition, the Committee agreed that the New York State Library should be included on this list. Requiring further clarification: Not-for-profit foundation libraries. Certification Process SED will identify to the fund administrator those schools and libraries eligible for discounts and the level of discounts to which those institutions are eligible. Program Monitoring and Evaluation An Oversight Committee will be established to monitor and evaluate the program. Two subcommittees are to work with the Oversight Committee: 1) Fund Administration (to monitor the fund administrator and other administrative details), and 2) Schools and Libraries Program Review (can be subdivided, if necessary). Recommended Membership of Subcommittees: voluntary, self-selected, and reflective of Oversight Committee membership. In particular, carriers and non-carriers should be represented on both subcommittees. Membership The Oversight Committee will be composed of the following stakeholder groups. Memberships could be rotated. PSC Staff SED Staff Education (6 representatives) - New York City - "Big 5" - BOCES - Non-public - Public School System (non "Big 5" and non BOCES) - Higher Education Libraries (5 representatives) - NYLA - SED Division of Library Development - School Libraries - Academic/Special School Library Systems - Public Libraries/Library Systems Telecommunications Carriers (6 representatives) - Local Exchange Carriers (2) - CLECS - Long Distance Carriers - Cable TV Providers - Cellular SED PSC
The oversight committee will seek involvement from various interest groups not represented on the committee such as parents, teachers, students, etc. Oversight Committee Responsibilities The responsibilities of the Oversight Committee are generally defined below. In addition, the Committee recommends that the Administrative Subcommittee continue to meet with Commission staff and members of the Access Pool to refine these responsibilities within the scope of the program. o Monitor and advise (i.e. non-binding recommendations) on disputes that may arise between schools/libraries and carriers over eligibility, discount rates, and program procedures. This role will in no way supersede the Commission's dispute resolution process. Rather, it may help to avoid complaints where straightforward clarification may be all that is called for. o Review fund administrator's summary reports and other related data requested by Oversight Committee. o Evaluate and propose annual adjustments to level of funds and service demands. o Analyze level of participation and propose administrative and public information initiatives to encourage broadest possible participation. o Review and advise on certification process. o Review and advise on definitions of just, reasonable, and affordable prices, including comparability between urban and rural rates. o Evaluate level of services in order to determine whether agencies are taking advantage of advanced telecommunications and information service. Evaluation may be used to develop possible maintenance of effort provisions. o Work with Commission staff to determine effect of program on competition. o Review, compare, and coordinate summary report results with stated program outcomes of existing federal and state education/research programs. o Administrative procedures will ensure that the application of discounts does not preclude schools and libraries from changing carriers. Elements of Fund Administration under Capped Scenario The operative principle is to minimize first come/first serve implications and maximize equity. Action to be taken to minimize the first come/first served effect are: Statistical Analysis/Administration Actions: Quarterly reports, including status of fund; projected withdrawals; forecasts, etc. o Periodic notification of fund status. o Year One fund: capped, but estimated on projected use with any unspent monies to be carried over from year to year. Authority, delegated by Oversight Committee through PSC, given to specific entity for efficient decision-making. Maintenance of Effort There will be no maintenance of effort requirement. Oversight Committee will be given responsibility to determine and, if necessary, make recommendations on level of effort. The operative principle is to ensure that discounts are being used to encourage use of advanced telecommunications and information services.
Administrative Subcommittee meeting Schedule The Administrative Subcommittee will continue to meet once every three weeks to continue refinement of administrative procedures.
Appendix A Page 1 of 1
PROFILE OF NEW YORK'S SCHOOLS AND LIBRARIES
Schools
Public Schools (K-12)
School Sites 4,016 Students 2.7 million Non-Public Schools (K-12)
School Sites 2,155 Students 0.5 million
Totals
School Sites 6,171 Students 3.2 million
"Big 5" schools: NYC, Buffalo, Rochester, Syracuse, & Yonkers
1.4 million students
Remainder of the state 1.8 million students
Libraries
Public 741 Public (including branches) 1,180 School libraries - Public 3,881 School libraries - Non-public 1,864
Total Public & School 6,925
It should be noted that libraries often obtain their telecommunications services through the various associations and interconnected systems that exist in New York state.
Appendix B Page 1 of 2
Examples of Current Services Eligible for Discounts
Telecommunications Services
o 1 MB - installation (non-recurring charge) - usage - monthly access fee
o Vertical services/"custom calling" features
o Leased Lines (56K to T3) - mileage charges - usage (per minute) - installation
o ISDN (basic & primary rate)
o Inside wire - maintenance (where provided by LEC) - installation
o Video services - such as multi-channel video
o ADSL
o ATM and Frame Relay
o Internet access - Connection to ISP (only loop, local & toll usage), Not including any ISP charges.
o Intrastate toll services
o Voice messaging
o WATS/Toll-free service
o Centrex
o WAN/LAN connections (leased/tariffed facilities)
o Wireless - access - internal connections (leased facilities)
Appendix B Page 2 of 2
Examples of Services Not Discounted (not regulated by PSC)
o Inside wire (non-LEC provided)
- installation - purchase - maintenance
o Inside wire (other than twisted pair)
o Modems
o Routers/servers/hubs
o Fiber optics - LAN connections (non-leased facilities) - Dark fiber
o Wireless - internal connections (non-leased facilities)
o Internet access - ISP fee
o Direct Broadcast Satellite (DBS)
Appendix C Page 1 of 1
TELECOMMUNICATIONS ACT OF 1996
The Telecommunications Act of 1996 provides the authority and mandate for establishing a discount on telecommunications for schools and libraries. Specifically, Section 254(b)(6) states that:
Elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications services as described in subsection (h)
In addition, Section 254(h)(1)(B) requires that:
All telecommunications carriers serving a geographical area shall, upon a bonafide request for any of its services that are within the definition of universal service under section (c)(3), provide such services to elementary schools, secondary schools, and libraries for educational purposes at rates less than the amounts charged for similar services to other parties. The discount shall be an amount that the Commission, with respect to interstate services, and the state with respect to intrastate services, determine is appropriate and necessary to ensure affordable access to and use of such services by such entities. A telecommunications carrier providing service under this paragraph shall--
(i) have an amount equal to the amount of the discount treated as an offset to its obligation to contribute to the mechanisms to preserve and advance universal service, or
(ii) notwithstanding the provisions of subsection (e) of this section, receive reimbursement utilizing the support mechanisms to preserve and advance universal service. Appendix D Page 1 of 4
Schools and Libraries Committee List
Jim Brennan David Lamendola NYSERNET, Inc. NYNEX (518) 283-3584 (Phone) (518) 396-1086 (Phone) (518) 283-3588 (Fax) (518) 436-0141 (Fax) JBrennan@NYSERNET.ORG notes.DLamendo@NYNEX.Com
Bob Puckett Gregg Sayre NYSTA Rochester Telephone (518) 443-2700 (Phone) (716) 777-7270 (Phone) (518) 443-2810 (Fax) (716) 546-7823 (Fax) NYSTA1@taconic.net GSayre@ccm.frontiercorp.com
Vin Callahan Darrell Mennenga NYNEX ALLTEL (914) 644-6252 (Phone) (501) 661-5651 (Phone) (914) 694-8035 (Fax) (501) 661-5679 (Fax)
Helen Birenbaum Susan Spear CUNY MCI (212) 642-2984 (Phone) (914) 933-6923 (Phone) (212) 642-2959 (Fax) (914) 251-2287 (Fax) helen_birenbaum@fc1.nycenet.edu SSpear @mcimail.com
Charles Stockdale Walker Crewson Cable TV & Telecom. Assn. of NY State Education Dept. (518) 463-6676 (Phone) (518) 486-5832 (518) 463-0574 (Fax) wcrewson@mail.nysed.ed cttany@albany.net
Chuck DeVoe Steve Kohn State Education Department NYNEX (518) 486-5832 (Phone) (212) 395-2255 (Phone) (518) 474-2004 (Fax) (516) 997-2054 (Fax) cdevoe @ mail.nysed.gov steve_kohn@smtp.nynex.com
Susan Zimmerman Maureen Bednarski NYNEX NYNEX (518) 396-1016 (Phone) (212) 395-0555 (Phone) (518) 465-8488 (Fax) (212) 221-6941 (Fax)
Appendix C Page 2 of 4
Brian Fitzgerald Ken Prohaniak LLGM/Time Warner Sprint (518) 465-1500 (Phone) (202) 828-7455 (Phone) (518) 465-1585 (Fax) kenneth.m.prohoniak@mail. B FitzGer @ LLGM.com sprint.com
Edith Allen Stacey Harwood Staff Staff (518) 486-2159 (Phone) (518) 473-0276 (Phone) eaa@dps.state.ny.us sdh@dps.state.ny.us
Mary Monaco Wayne Cornelius Staff Staff (518) 486-2830 (Phone) (518) 474-5878 (Phone) (518) 474-5616 (Fax) (518) 486-5727 (Fax) mbm@dps.state.ny.us wac@dps.state.ny.us
Eleanor Stein Terry Monroe Administrative Law Judge Staff (518) 474-7663 (Phone) (518) 486-2818 (Phone) ees@dps.state.ny.us (518) 486-5727 (Fax) txm@dps.state.ny.us
Duane Hutton Joseph Salvati Dutchess County BOCES NYC Board of Education (914) 486-4800 (Phone) (718) 935-2545 (Phone) (914) 486-4981 (fax) (718) 935-2549 (Fax) salvati@earthlink.com
Bruce Gardner Susan Keitel IBM NY Library Association 518 487-6762 (Phone & Fax) (518) 432-6952 (Phone) bruce_gardner@vnet.ibm.com (518) 427-1697 (Fax) skeitel@transit.nyser.net
Catherine Carver Dunn Jerry Nichols NY Public Library Suffolk County Cooperative (212) 930-0841 (Phone) Library System cdunn@nypl.org (516) 286-1600 (Phone) (516) 286 1647 (Fax) jerry@suffolk.lib.ny.us
Deborah Horowitz Tim Graham Rochester Telephone Winstar Communications 716 777-4593 (Phone) (212) 687-7577 (112) Phone 716 325-1355 (Fax) (212) 922-1637 (Fax) dhorowitz@ccm.frontiercorp.com TGraham@wcii.com
Appendix C Page 3 of 4
Phyllis Fisher Bob Barry NYCSLS - NYC Schools NYNEX 718 935-4037 (Phone) (518) 396-1022 (Phone) 718 522-1896 (fax) (518) 465-0385 (Fax) NYCSLIB2@metgate.metro.org
Sharon Siekowski Carol Desch Staff NYS Library 518 486-2857 (Phone) (518) 486-9358 (Phone) ses@dps.state.ny.us (518) 486-5254 (Fax) cdesch@mail.nysed.gov
Jamie McClelland John Nasci Libraries for the Future Citizens Telecom. Co. 212 352-2330 (Phone) (518) 773-6777 (Phone) 212 352-2342 (Fax) (518) 773-8814 (Fax) jaimiem@lff.org jnasci@czn.com
Judith Levine Karen McSharry NY State Library NYS School Board Assn. 518 486-4853 (Phone) (518) 465-3474 (Phone) 518 486-5254 (Fax) (518) 465-3481 (Fax) jlevine@mail.nysed.gov nyschoolbd@aol.com
Jason Henry Saul M. Abrams Big 5 School Districts PSC Staff 119 Washington Avenue (518) 474-7579 (Phone) Albany, NY 12210 (518) 473-7081 (Fax) (518) 465-4274 (Phone) SYA@dps.state.ny.us (518) 465-0638 (Fax) nyschoolbd@aol.com
Jim Mahoney Arthur Navarro Archdiocese of New York Schools Communication Carriers for 212 371-1000 x 2882 (phone) Latinos, Inc. adnygovtprog@connectinc.com 212 327-0213 (Phone) 212 996 0999 (Fax) Myles Mathews anava95734@aol.com Communications Carriers for Latinos, Inc. Lisa Fleck 212 862 0920 (Phone) NYNEX 212 862 8115 (Fax) 212 597-5045 (Phone) mylesmm@netcom.com 212 575-7853 (Fax) Lisa_Fleck@smtp.nynex.com
Appendix C Page 4 of 4
Jack Costoso Bob Zinnecker NYC Board of Education NYSTA 718 328-2310 (Phone) 518 443-2700 (Phone) 718 617-8383 (Fax) 518 443-2810 (Fax)
Patrick McGuire AT&T 212 387-4734 (Phone) 212 387-5839 (Fax)
Appendix E Page 1 of 1
Additional Comments on the Recommended Plan for Discounting Intrastate Telecommunication Services for Schools and Libraries by Rochester Telephone Corp. (RTC) Frontier Communications of Ausable VAlley, Inc. (FC of AVT) Frontier Communication of New York, Inc. (FC of NY) Frontier Communications of Seneca-Gorham, Inc.(FC of SGT) Frontier Communications of Sylvan Lake, Inc. (FC of SLT)
RTC, FC of AVT, FC of NY, FC of SGT and FC of SYL (hereafter referred to as Frontier), have compromised their initial positions with regard to the funding recommendations with the exception of the administrative process for the distribution of the funds. In the spirit of compromise, RTC and Frontier would be willing to be a conduit for funding in the proposed amount indicated in the report, provided that the fund is administered by and distributed to the institutions that would directly benefit from the discount program, with no further carrier responsibility. The telecommunication providers would implement the designated surchage and pass along the billable revenues less uncollectibles to the fund administrator. The fund administrator would then disburse the funds as determined by the oversight and administrative subcommittees. The schools and libraries would be allowed a greater amount of flexibility regarding the level of discount and which institutions would be recipients of the funds. This type of collection process by the carriers has been successful in the past, as demonstrated by the implementation of the E911 program as established by the state legislature in July 1989.
If the RTC and Frontier administrative process, coupled with the remaining elements of the discount program described in the report are not adopted in its entirety, RTC and Frontier reserve the right to withdrawal of their support of this proposal.
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