PUBLIC NOTICE Federal Communications Commission 445 12 th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: http://www.fcc.gov TTY: 1-888-835-5322 DA 16-1425 Released: December 21, 2016 WIRELINE COMPETITION BUREAU AUTHORIZES ALASKA PLAN SUPPORT FOR 13 ALASKAN RATE-OF-RETURN COMPANIES WC Docket Nos. 10-90 and 16-271 On August 23, 2016, the Federal Communications Commission (Commission) adopted the Alaska Plan Order. 1 In the Alaska Plan Order, the Commission provided a one-time opportunity for Alaskan rate-of-return carriers to elect to receive support frozen at adjusted 2011 levels for a 10-year term in exchange for meeting individualized performance obligations — offering voice and broadband services meeting specific service obligations at specified minimum speeds by five-year and 10-year service milestones to a specified number of locations. Today, in accordance with the Alaska Plan Order, the Wireline Competition Bureau (Bureau) approves the individualized performance obligations and authorizes support amounts as described in the appendices. 2 The individualized performance obligations we approve today were submitted by the Alaska Telephone Association on behalf of its member companies on May 9, 2016, supplemented on May 12, 2016, and further revised/clarified after the Order’s adoption. 3 Consistent with the Commission’s direction, the Bureau finds it is in the public interest to approve these performance obligations. 1 Connect America Fund, et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 10139 (2016) (Alaska Plan Order). 2 The approved yearly support amounts are provided in Appendix A to this Public Notice. See also 47 CFR § 54.306(c). The approved individualized performance obligations are provided in Appendix B to this Public Notice. See also 47 CFR § 54.306(b). 3 Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 10-90, at Attach (filed May 9, 2016) (ATA May 9 Letter); Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 10-90, at Attach. (filed May 12, 2016) (ATA May 12, 2016 Letter); Letter from Stephen Merriam, Federal Advocate, Arctic Slope Telephone Association Cooperative, Inc., to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket Nos. 10-90, 16-271 (filed Nov. 17, 2016) (ASTAC Nov. 17, 2016 Letter); Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket Nos. 10-90, 16-271 (filed Nov. 22, 2016); Letter from Julie A. Veach, Counsel to General Communications, Inc., to Marlene H. Dortch, Secretary, FCC, WC Docket No. 16-271 (filed Nov. 29, 2016); Letter from Dave Goggins, President/GM TelAlaska, Inc. to Marlene H. Dortch, Secretary, FCC, WC Docket Nos. 10-90, 16-271 (filed Dec. 1, 2016) (TelAlaska Dec. 1, 2016 Letter); Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 16-271 (filed Dec. (continued…) 2Certain carriers, due to limited access to middle-mile facilities, committed to maintaining service at existing levels without deploying new service or upgrading existing locations. The Commission required carriers that commit to only maintaining existing Internet access service at existing speeds to explain why they are unable to commit to upgrade their existing service or deploy service to new locations. 4 Based on our review of the information submitted, consistent with the Commission’s direction, we approve those plans today. We remind those carriers that they are required to certify in their annual reports that they are providing service in accordance with their approved plan. 5 As directed by the Commission, we will review these carriers’ plans on a biennial basis and adjust the plans based on any changed circumstances. 6 Further, we remind all carriers on the Alaska Plan that they are required to report as new backhaul becomes available, which certain carriers anticipate will happen during the 10- year support term. 7 Both Summit Telephone Company of Alaska, Inc. d/b/a Summit Telephone Company and Alaska Power & Telephone, on behalf of its rate-of-return carrier subsidiaries, Bettles Telephone Company (SAC 613002), Alaska Telephone Company (SAC 613017), and North Country Telephone Company (SAC 613026), have indicated their interest in receiving Alternative Connect America Model (A-CAM) support. 8 These companies previously had submitted proposed Alaska Plan performance plans. For administrative convenience, the Bureau briefly defers action on the performance plans for these companies, pending resolution of whether these carriers are ultimately authorized for A-CAM support. In the meantime, they will continue to receive support under the reformed legacy support mechanisms. We also authorize Adak Eagle Enterprises, LLC (Adak) (SAC 610989) for Alaska Plan support. While Adak has indicated its interest in receiving A-CAM support, in the Alaska Plan Order, the Commission noted that those Alaska rate-of-return carriers that are unable to offer even 4/1 Mbps service would not be permitted to elect A-CAM support. 9 Adak is unable to meet a 4/1 Mbps service obligation; 10 as such, it is not eligible to elect A-CAM support. 11 For each of the carriers whose plans we approve today, by December 29, 2016 an officer of the company must submit a letter in WC Docket No. 16-271 certifying that the carrier will comply with the public interest obligations adopted in the Alaska Plan Order and the deployment obligations set forth in the adopted performance plan. 12 (Continued from previous page) 6, 2016); Letter from Daniel B. Lindgren, Assistant KPU Telecommunications Division Manager, to Marlene H. Dortch, Secretary, FCC, WC Docket Nos. 10-90, 16-271 (filed Dec. 8, 2016). 4 Alaska Plan Order, 31 FCC Rcd at 10146, para. 18. 5 47 CFR § 54.313(f)(1)(i). 6 Alaska Plan Order, 31 FCC Rcd at 10158, para. 62 7 47 CFR § 54.313(f)(3). See ASTAC Nov. 17, 2016 Letter and TelAlaska Dec. 1, 2016 Letter. See also Quintillion, System, http://qexpressnet.com/system/ (last visited Dec. 21, 2016). 8 See Wireline Competition Bureau Announces Results of Rate-Of-Return Carriers That Accepted Offer of Model Support, WC Docket No. 10-90, Public Notice, DA 16-1246 (WCB Nov. 2, 2016). 9 Alaska Plan Order, 31 FCC Rcd at 10142, n.18. 10 See ATA May 9, 2016 Letter; ATA May 12, 2016 Letter (indicating access to only satellite middle-mile facilities at speeds less than 4/1 Mbps). 11 See Connect America Fund, WC Docket No. 10-90, Report and Order and Further Notice of Proposed Rulemaking, FCC 16-178, para. 16 (Dec. 20, 2016). 12 Alaska Plan Order, 31 FCC Rcd at 10154, para. 45. 3Finally, we remind the carriers approved to receive Alaska Plan support of the requirements related to tariffs. 13 They must refile their special access tariffs removing the costs of Consumer Broadband-only Loops (CBOL) from the Special Access category, consistent with the 2016 Rate-of- Return Order. 14 They are permitted—but not required—to assess a wholesale consumer broadband-only loop charge that does not exceed $42 per line per month. Alternatively, they may detariff such a charge. Moreover, carriers receiving support pursuant to the Alaska Plan are not required to offer a separate CBOL service, on either a tariffed or detariffed basis. Alaska Plan recipients must also exit the National Exchange Carrier Association (NECA) Common Line pool, while they have the option of continuing to use NECA to tariff their Common Line and CBOL charges. The affected Alaska carriers shall coordinate with NECA on making any required tariff filings in order to ease the administrative burden associated with implementation of any changes. Once the Universal Service Administrative Company confirms that the carriers have notified NECA of their intention to exit the Common Line pool, support under the Alaska Plan may be disbursed. 15 For additional information on this proceeding, contact Alexander Minard, alexander.minard@fcc.gov, or Jesse Jachman, jesse.jachman@fcc.gov of the Wireline Competition Bureau, Telecommunications Access Policy Division, (202) 418-7400. - FCC - 13 See id. at 10154-55, para. 46 14 See Access Charge Tariff Filings Introducing Broadband-only Loop Service, Order, Docket No. 16-317, 31 FCC Rcd 11017 (WCB Oct. 6, 2016) (Broadband-only Loop Service TRP Order); see also Access Charge Tariff Filings Introducing Broadband-only Loop Service, Order on Reconsideration, Docket No. 16-317, 31 FCC Rcd 12007 (WCB Nov. 4, 2016). The waiver the Bureau granted in Connect America Fund et al., WC Docket No. 10-90 et al., Order, DA 16-1383 (WCB Dec. 14, 2016), limiting the amount of CBOL costs that must be shifted from the Special Access category to the Consumer Broadband-only Loop category also applies to carriers receiving support pursuant to the Alaska plan. We also clarify that carriers receiving support pursuant to the Alaska plan must impute an Access Recovery Charge on Consumer Broadband-only Loops, consistent with the Bureau clarification in Connect America Fund et al., WC Docket No. 10-90 et al., Order, DA 16-1384 (WCB Dec. 14, 2016). 15 Alaska Plan Order, 31 FCC Rcd at 10154, para. 46 (citations omitted). APPENDIX A Approved Support Amounts for Rate-of-Return Carrier Alaska Plan Recipients January 1, 2017 to December 31, 2026 1 Aggregated to Holding Company Level State Holding Company Rate-of- Return Carrier Study Area Code Yearly Support Amount ($) AK Adak Eagle Enterprises, LLC ADKG 610989 333,000 AK American Broadband Communications et al. AMRC 613011 613016 5,391,870 AK Arctic Slope Telephone Association Cooperative, Inc. ARCT 613001 3,135,240 AK Bristol Bay Telephone Cooperative BRST 613003 1,136,604 AK Bush-Tell, Inc. BSHT 613004 783,048 AK Circle Telephone & Electric CRCL 613005 38,532 AK Copper Valley Telephone Cooperative CPPR 613006 11,307,498 AK Cordova Telephone Cooperative, Inc. CRDV 613007 2,316,234 AK City of Ketchikan CTYF3 613013 4,217,490 AK Matanuska Telephone Association, Inc. MTNS 613015 18,720,342 AK Nushagak Electric & Telephone Cooperative, Inc. NSHG 613018 1,545,198 AK OTZ Telephone Cooperative, Inc. OTZT 613019 1,925,544 AK General Communication, Inc. GNRL 613023 613025 3,525,624 1 See 47 CFR § 54.306(c). 2APPENDIX B Approved Plans for Carriers Committing to Newly Deployed/Upgraded Service Carrier Study Area Code Rate-of- Return Carrier Code Backhaul Speed Minimum Data Usage Newly Deployed/Upgraded Locations by December 31, 2021 Newly Deployed/Upgraded Locations by December 31, 2026 Bristol Bay Tel Coop 613003 BRST Microwave 4/1 Mbps 40 GB 0 10 Copper Valley Tel 613006 CPPR Hybrid Microwave / Fiber 25/3 Mbps 150 GB 97 97 Fiber 25/3 Mbps 150 GB 786 786 Fiber 50/5 Mbps 150 GB 668 668 Fiber 100/5 Mbps 150 GB 590 1101 Fiber 1GB/ 100 Mbps 150 GB 708 1769 Cordova Tel Coop 613007 CRDV Fiber 25/3 Mbps 150 GB 17 17 Fiber 50/5 Mbps 150 GB 255 255 Fiber 100/5 Mbps 150 GB 425 850 3Interior Tel Co Inc. 1 613011 AMRC Fiber 10/1 Mbps 150 GB 1,616 1,616 Fiber 25/3 Mbps 150 GB 652 1,332 Ketchikan Public Ut. 613013 CTYF3 Fiber 25/3 Mbps 150 GB 71 71 Fiber 50/5 Mbps 150 GB 72 216 Fiber 100/5 Mbps 150 GB 502 933 Matanuska Tel Assoc 613015 MTNS Fiber 25/3 Mbps 150 GB 15,027 19,540 Fiber 50/5 Mbps 150 GB 8,518 15,500 Fiber 100/5 Mbps 150 GB 1,500 4,000 Nushagak Elec & Tel 613018 NSHG Microwave 6/1 Mbps 40 GB 146 195 1 In addition to the newly deployed/upgraded locations, Interior Tel Co Inc. committed to maintain existing service throughout the 10-year term to 2,518 locations with access to only satellite backhaul with speeds of 1Mbps/256kbps. See Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket Nos. 10-90, 16-271 (filed Nov. 22, 2016). 4Otz Tel Cooperative 2 613019 OTZT Fiber 25/3 Mbps 150 GB 694 1,249 United Utilities Inc. And Yukon Tel Co Inc. 613023 613025 GNRL Satellite 1Mbps/256 kbps 7 GB 1,063 1,063 Microwave 10/1 Mbps 40 GB 4,311 8,621 Fiber 25/3 Mbps 150 GB 324 324 2 OTZ Tel Cooperative will also provide 4/1 Mbps service via satellite backhaul throughout the 10-year term. The number of locations receiving service via satellite backhaul will decrease proportionally to number of newly deployed fiber locations. See Letter from Christine O’Connor, Executive Director, Alaska Telephone Association, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 10-90, at Attach (filed May 9, 2016) (May 9, 2016 Ex Parte). 5Approved Plans for Carriers Maintaining Service at Current Levels 3 Carrier Rate-of- Return Carrier Code Study Area Code Backhaul Speed Data Usage Locations Passed Adak Tel Utility ADKG 610989 Satellite 1Mbps/256kbps 4 GB 346 Arctic Slope Tel ARCT 613001 Satellite 1Mbps/256kbps Unlimited 2,509 Hybrid Microwave- Fiber 4/1 Mbps Unlimited 206 Bush-Tell Inc. BSHT 613004 Microwave 6/1 Mbps 25 GB 1,109 Circle Utilities CRCL 613005 N/A N/A 4 N/A 40 Mukluk Tel Co Inc. AMRC 613016 Satellite 1Mbps/256kbps 12 GB 2,628 3 These carriers have committed to maintaining existing service, and therefore are subject to a biennial review per the Commission’s Alaska Plan Order. See Alaska Plan Order, 31 FCC Rcd at 10158, para. 62. 4 Circle Utilities states it does not have the facilities in place to provide any Internet access services; it does not have access to terrestrial backhaul and the cost of satellite backhaul is too much for the served community. See May 9 Ex Parte at Attach.