We have four discussion topics at this time…

1. We have four discussion topics at this time… • FCC NPRM that proposes many major changes to e-rate. • Continued commitment on the part of MDE to pay for district circuits • The award of an infrastructure grant to Inline to build out fiber infrastructure in Mississippi. • PQAs – Payment Quality Assurance

2. 1. FCC’s NPRM • Notice of Proposed Rule Making • Published in the FR June 9th • Initial Comments due July 9th • Reply Comments due July 26th • Announcement expected September 16th • www.fjallfoss.fcc.gov/ecfs/comment_search/input?z=z71sm • 02-6 in the proceeding box • From Date should be 7/1/2010

3. INTRODUCTION • In this Notice of Proposed Rulemaking (NPRM), we initiate one in a series of rulemaking proceedings to implement the National Broadband Plan’s (NBP) vision of improving and modernizing the universal service programs. The Joint Statement on Broadband, released with the National Broadband Plan, identifies comprehensive universal service fund (USF) reform as an essential goal for the Federal Communications Commission (Commission). Upgrading the E-rate program (more formally known as the schools and libraries universal service support mechanism), the second largest component of USF, represents a significant initiative to meet that goal. With more than a decade of experience with the current E-rate program and a national imperative to maximize the utilization of broadband, it is time to re-examine what is working well and what can be improved in the current program. This NPRM also seeks comment on several potential reforms that would cut red tape by eliminating rules that have not effectively served their intended purpose, while continuing to protect against waste, fraud, and abuse.

4. SECA’s Initial Comments : Recommends the abolishment of the current E‐rate mandated technology planning requirement for all funding requests – priority one and priority two. The form 470 should be abolished altogether or a simplified form 470 should be redesigned for the use and benefit of all applicants. When codifying the general rule governing the competitive bidding requirement, specific examples of inappropriate or appropriate conduct should not be included.

5. PAGE 2 • Electronic filing and access of forms and all notifications and processes should be implemented. • Supports the recommended simple average discount calculation for school districts. • The current method for the rural/urban designation should be updated and continued. • The form 471 application should be substantially revised and streamlined to reflect the simplified average discount approach and to insure that applicants are not required to provide unnecessary information.

6. PAGE 3 • The funding of wireless services outside of school through the E‐rate program must be carefully coordinated with other universal service support mechanisms. • Dark fiber service should be eligible. • Eligibility of services to residential areas of schools should be approved. • Web hosting should be eliminated from the list of eligible services. • The framework for evaluating and determining eligibility of priority two services and equipment should adopt the OSI model. • Various components and services that are currently eligible for priority two funding should be made ineligible.

7. PAGE 4 • In order to meet the goals of providing more applicants with internal connections funding and ensuring a predictable amount of funding for applicants , SECA recommends a two pronged approach: • Utilize a priority two funding “formula;” • Establish a process of funding “down” the discount levels until all applicants and discount levels are funded. • Basic maintenance of internal connections should be eliminated from eligibility. • Basic phone services should continue to be eligible. • Indexing the annual cap to inflation should be adopted. • Equipment disposal should be permitted under certain conditions but reporting the information to the Administrator should not be required.

8. 2. Continued commitment on the part of MDE to pay for district circuits • Toby Frazier: “Nothing has changed…”. • Should you panic? • Yes, if you like the attention • Should you update your budget? • Yes, if you want to be prepared for the worst case scenario • Should you file a Form 470? • Yes, if you might change from ITS contract 4000

9. The award of an infrastructure grant to Inline to build out fiber infrastructure in Mississippi. • Congratulations to Inline • Derrick will be providing you will details • Does this affect RFP 4000? • No, this is no different from any other contract with any other provider • Does this affect your local service or long distance? • No, as far as I know voice services will not be affected

10. New Process – Payment Quality Assurance (PQA) • The PQA Program starts in August 2010. • PQA assessments are not audits. They are not performed by auditors. They do not require on-site work by USAC staff. They take significantly less time than audits. They are meant only to gather information about individual payments and generate estimates of program-wide rates of improper payments. Audits, on the other hand, focus on annual payment amounts. • USAC contracts with an outside firm to provide staff to conduct PQA assessments. USAC exercises program management and oversight responsibility of the PQA program. • It will take participants varying periods of time to gather the requested documents, depending on the volume and accessibility of documents requested. When fewer documents and/or simpler data are requested and beneficiaries have ready access to the information, gathering the materials should take a matter of hours. With more documents, more complicated data, and/or more difficulty getting access to them, beneficiaries will need more time to comply with the request. High Cost and Low Income beneficiaries have 15 business days to provide documents, and Rural Health Care and Schools and Libraries beneficiaries have 10 business days.

11. Now… • What do you think?