PSC 160.062 (4) (Changes in this section were made after the Council approved the draft rules)
The changes to this section clarify how to determine what the lifeline discount will be under several scenarios. This section is added because of the changing telecommunications market where many customers purchase local service as part of a larger telecommunications service package and it can be unclear as to how to determine what level lifeline discount to apply.
This section also addresses when and how a commercial mobile radio (wireless) service provider establishes its lifeline base rate, from which the monthly lifeline rate adjustment is calculated.
PSC 160.062 (5) (Changes in this section were made after the Council approved the draft rules)
This section includes changes in how the reimbursement level for providers is determined in certain situations, so that changes at the federal level can be accommodated without Commission action. Generally, state USF dollars are not affected, and this change will allow the federal contribution to the lifeline adjustment to be provided to customers automatically. The current rules require an exception from the Commission before providers can increase Lifeline credits in order to match FCC ordered increases in the federal Subscriber Line Charge – even when the FCC increases its reimbursements to cover those increases. Finally, this section changes the calculation of lifeline adjustments.
PSC 160.062 (6)
This section adds provisions related to customers who are eligible for federal USF support as residents of tribal lands.
PSC 160.062 (9) (Changes in this section were made after the Council approved the draft rules)
This section adds provisions that require customer notification before ending lifeline assistance. This gives customers who no longer qualify as low-income under one criteria, but who still qualify under a different criteria, time to show that they qualify under that different criteria. These changes are based on changes adopted by the FCC.
PSC 160.062 (11)
This section is added so that local service providers file timely requests for reimbursements and so charges to the universal fund are not able to accumulate over several years.
PSC 160.063
In this section, the program is changed from a Request for Proposal (RFP) process to a biennial grant program. Offering the grant program will be determined by availability of funding. The grant program will be managed similarly to the other two grant programs in PSC 160, except that this program would be offered biennially. This will simplify the process for this program and will enable organizations that are focused on serving low-income customers to more easily apply for funding.
PSC 163.07
The requirement for a written medical description of special needs has been changed to allow such descriptions to be prepared by medical professionals rather than just by doctors. This change makes the language consistent with similar provisions elsewhere in the rules.
PSC 160.071
Service and Equipment Pricing for Individuals with Special Needs
Some minor editing changes and minor rule changes are made to improve program operation such as requiring eligible equipment lists and identifying processes to modify that list and to handle objections to the equipment lists and eligibility determinations. Specific program changes are discussed below.
PSC 160.071 (1) (b)
The voucher amount for the hard of hearing category is reduced from $200 to $125. This change reflects a determination made by the Commission on September 23, 2004, to reduce the hard of hearing voucher to $125 because the Telecommunications Equipment Purchase Program (TEPP) exceeded its budget in FY04 and FY05.
The Commission based its decision to reduce the voucher maximum for the hard of hearing category on program data from the previous two fiscal years. If program changes were not made and the rate at which the program was growing continued at the pace it was in September 2004, the projected program expenditure was over $4 million while the program budget was $2.3 million. The hard of hearing disability category had experienced the most growth seeing more than a doubling of applications over two years (from 4,110 applications in FY 2003 to 8,274 in FY 2004).
PSC 160.071 (1) (c)
This section is amended to enable low-income speech, mobility or motion impaired voucher recipients to be exempt from the $100 co-payment if they are able to certify that they meet the income requirements of the telecommunications assistance program (TAP), which provides the co-payment for low-income hard of hearing or deaf voucher recipients. In the past, low-income disabled voucher recipients that are speech, motion, or mobility impaired had no program for assistance in paying the $100 co-payment that is required under the TEPP. This has been a barrier for some disabled individuals in obtaining the equipment needed to use the telecommunication system. The number of low-income disabled individuals that would qualify for waiving the $100 co-pay requirement is expected to be small and not expected to significantly affect the TEPP budget.
PSC 160.071 (1) (i)
The addition will the give the Commission the ability to impose consequences on vendors that abuse these programs.
PSC 160.071 (1) (k) 2. and 3.
These additions explicitly allow the purchase of a personal computer under the TEPP to serve as telecommunications equipment for individuals that have a medical statement indicating that such equipment is necessary for that individual to access telecommunications services.
PSC 160.071 (2)
This section deals with leasing specialized customer premises equipment for persons with disabilities. The only change is to make the program optional. While this is a very rarely used option, retaining the concept in the rule will provide flexibility to both providers and customers.
PSC 160.071 (3)
This section is significantly changed to reflect profound changes in the long distance sector of the telecommunications industry. The existing rule requires long distance companies to provide a discount to eligible disabled customers based on the formerly prevalent time-of-day rate discount schedules. These discounts are now outdated because options for long distance providers services and rates have changed with the advent of competition in long distance markets. The draft rule includes language changes to the required discount program so that it is optional for providers to provide the discount and provides the opportunity for providers to be reimbursed for the discount if certain conditions are met. The basis for providing TTY users with a discount is that for the same “conversation," a TTY user's telephone call lasts many times longer than a non-TTY user's telephone call. This discount helps bring TTY users' long distance costs closer to those of non-TTY users. For providers to be reimbursed, they must offer a discount program that results in a minimum of a 35 percent discount. Three options are included in the rule for how providers are able to offer discounts to TTY users. This allows flexibility for providers to choose how they can best offer a discount program to these customers within the constraints of their established billing systems.
PSC 160.071 (4)
This section of the rule relates to discounted wireless service and is similar in intent to the section above. Offering the discount to special needs customers is also optional. The only difference is that in this subsection the discount is applied to the total wireless bill.
PSC 160.071 (7) (b)
The section has two changes. First, this section enables speech impaired customers to receive, without charge, two-line hearing carryover services. This includes intrastate nonrecurring charges or the monthly rate for the second line. Second, a requirement for timely filing of reimbursement requests is added.
PSC 160.073 Public interest pay telephone
The section under par. (3) is added to ensure that when a provider has approval for installation of a new public interest pay telephone, that the telephone is installed in a reasonable timeframe.
The sections under (4) (d) through (g) and (5) (g) are added to further define where public interest pay telephones may or may not be located and places requirements on the operation of those telephones. The section under (6) was amended to clarify the level of detail required in financial records that public interest pay telephone providers must keep. The section under (7) was changed to allow more flexibility in reporting and the section under (8) (d) was added so that public interest pay telephones are labeled as such.
The section under (9) is added to explicitly provide that the Commission may suspend or reduce payment to providers if there are problems with the operation of the public interest pay telephone.
PSC 160.09 High rate assistance credits
The revised rule clarifies how often the high rate assistance credits need to be calculated and defines how the average price of a one-minute intrastate toll call can be determined. It also eliminates the reference to Wisconsin Department of Workforce as the source for median household income since it does not publish such a number. Instead the revised rule references the figure published by the U. S. Census Bureau or as determined by the Commission. If the Commission determines this figure, there will be an opportunity for public comment.
This section also addresses when and how a commercial mobile radio (wireless) service provider's method of calculating high rate assistance credits will be established. Further, it adds certain FCC authorized charges to the pool of charges that are considered when determining whether a credit is owed.
A requirement for timely filing for reimbursement requests is also added.
PSC 160.092 Alternative universal service protection plans (Changes in this section were made after the Council approved the draft rules)
This section is amended to add plans to ensure interlata and intralata toll service, and other measures approved by the Commission to protect universal service, to the list of alternative plans that may be implemented. The existing “intralata toll provider of last resort" section is being deleted from the rule. This amendment allows the Commission to establish a similar (but experimental and limited) program should it become necessary in the future. Such a plan can only be implemented after notice and opportunity for hearing.
PSC 160.10 Rate shock mitigation
A requirement for timely filing for reimbursement requests is added to this section.
PSC 160.11 Assistance to institutions
The section of the rule for the institutional discount program is eliminated. This program was replaced by TEACH, now know as the Educational Telecommunications Access Program. The existing rule allowed continued funding until October 29, 2002, for institutions already in the program. However, as of the beginning of FY2002, no institutions remained in the program.
PSC 160.115
Medical telecommunications equipment program. The term “medical clinic" is clarified to include clinics and hospitals.
This section now includes the terms “directly or indirectly" to clarify that applications, such as those for equipment that improves the efficiency of the medical clinic and so improve patient health care, are eligible for this grant program.
This section changes “will" to “may" in par. (5)(c) since it may be premature for some applicants to have selected their final vendor when applications are filed.
PSC 160.125 (2) Funding to promote access to telecommunications services.
While funding for the projects is provided on a fiscal year basis, this section is changed so that more than one year of funding may be approved when the Commission is awarding grants. This gives flexibility to the Commission to approve multi-year projects if it determines that the success of the program is dependant upon multi-year funding.
Dates for when applications are submitted and awarded are eliminated to give the Commission more flexibility and to recognize that the biennial budget needs to be approved prior to awarding grants.
The matching fund requirement of grant applicants is reduced from 50 percent to 25 percent. With a less stringent matching requirement, more applicants will be able to apply for the grants. Language is also added to clarify that in-kind goods or services may be used to meet the grant matching requirement.
PSC 160.13 Designation of eligible telecommunication carriers (Changes in this section were made after the Council approved the draft rules)
A change is made to (1) (a) to clarify that commercial mobile radio service providers can be designated as eligible telecommunication carriers (ERCs). Section (1) (e) is created to merge the existing pay telephone requirements in Wis. Admin. Code chs.
PSC 160 and
PSC 165. It also allows multiple ETCs to share in the provision of the required pay telephone.
A change was also made to the section defining the territory for which a provider is designated as an ETC. It is changed to indicate that in a non-rural territory the area may not be smaller than a wire center. For rural companies it is changed to indicate that it cannot include only a portion of a wire center. These changes are made to conform with FCC orders.
PSC 160.14 Intralata toll service provider of last resort
This section is deleted. This issue is dealt with in the amendment to PSC 160.092.
PSC 160.15 Identification of charges
This section is amended to conform with existing law concerning identification of the portion of local exchange rates that are for recovery of certain mandatory USF contributions. A new provision is also created stating that adjustments to local exchange rates made more than four months after a new USF assessment rate goes into effect will not be considered to be for the purpose of recovering contributions to the USF. This provision precludes a company from representing on customer bills that a rate adjustment is due to an increase in its USF assessment if the rate increase occurs too long after the actual change in assessment.
PSC 160.17 Fund budget and assessment rates.
A requirement is added that, like it does with the department of administration and the TEACH program, the Commission must consult with the department of public instruction (DPI) before determining the amount budgeted for certain programs DPI administers.
PSC 160.18 Collection of universal service fund monies
The language that established the procedure for the (now passed) initial USF assessment of commercial mobile radio service providers is deleted.
Clarification is added regarding the procedure for objecting to an assessment and how assessment collections will be “trued up" from year to year as customer numbers and company revenues change.
PSC 160.19 Universal Service Fund Council
The requirement for institutional representatives on the USFC has been removed. This was a vestige of the time when the universal service fund rules included an “aid to institutions" program.
Changes to rules other than PSC 160
PSC 161.05 (4)
This provision is deleted because the rule section it references is being repealed,
PSC 165.043 (4)
This provision is amended to add a requirement that notice be provided to customers, in situations where line power is not provided to the network interface device, that service may be affected if there is a power failure. Historically, customers that have their telephone line through telephone wiring in a home are accustomed to telephones functioning even if there is a commercial power outage. This addition would provide notice to those customers that loss of electric power may also affect telephone service. While in early rule drafts this was located in the list of “essential services" in s.
PSC 160.03(2), it was decided that it made more sense to locate this in the consumer protection rules.
PSC 165.088
This provision is being deleted. The issue is dealt with through PSC 160.13 (1) (e).
PSC 171.06 (1)
This provision is amended to clarify that cable television telecommunications service providers are subject to s.
196.218, Stats. This updates the provision to conform with existing law.
Comparison with Existing or Proposed Federal Regulations
There is both a state USF and a federal USF. The state and federal funds and programs are complementary rather than duplicative.
“Eligible Telecommunications Carriers" (ETCs) are designated by the Commission and are, thereafter, eligible for funding from the federal USF and for certain funding from the state USF. ETC status was created by the FCC, and codified in 47 U.S.C. § 214 (e) (2). Under FCC rules, the state Commissions are required to designate providers as ETCs.3
Designation as an ETC is required if a provider is to receive federal USF funding. ETC designation is also required to receive funding from some, but not all, state universal service programs. The FCC established a set of minimum criteria that all ETCs must meet. These are codified in the federal rules.
4 The 1996 Telecommunications Act states that “States may adopt regulations not inconsistent with the Commission's rules to preserve and advance universal service."
5 A court upheld the states' right to impose additional conditions on ETCs in
Texas Office of Public Utility Counsel v. FCC,
183 F.3d 393, 418 (5
th Cir. 1999). Therefore, while states must examine the federal requirements, they are allowed to create additional requirements. Wisconsin has done so. The Commission's requirements for ETC designation clarify and expand upon the more basic FCC rules.
The federal USF provides funding to ETCs that are found to serve high-cost areas. That funding is to be used to help cover the costs of expanding infrastructure into those areas. Doing so should help ensure that rates in those areas stay lower since rates need not provide the funds for that expansion. The Wisconsin USF provides funding to providers with high rates for credits provided to customers. The federal USF also includes lifeline and link-up programs. The Wisconsin Lifeline and Link-Up programs are structured to take maximum advantage of the available federal lifeline and link-up funds.
The federal USF assessment applies to all carriers, including wireless carriers, and is assessed based on interstate revenues. The state USF assessment applies to all providers, including wireless providers (although that assessment is currently suspended) and is assessed based on intrastate revenues. Wisconsin exempts certain providers from assessment, such as those with under $200,000 in intrastate revenues.
