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Annual Report to the Legislature on the Status ANNUAL REPORT TO THE LEGISLATURE ON THE STATUS OF THE NEBRASKA TELECOMMUNICATIONS INDUSTRY NEBRASKA PUBLIC SERVICE COMMISSION September 30, 2016 Nebraska Public Service Commission 300 The Atrium 1200 N Street P.O. Box 94927 Lincoln, NE 68509-4927 (402) 471-3101 (800) 526-0017 www.psc.nebraska.gov The 2016 Annual Report is dedicated to Maurice Gene Hand, Director of the Communications Department, who retired on September 15, 2016, after 40 years of service with the Commission. Gene’s commitment and work on behalf of industry and consumers is greatly appreciated and will be sorely missed. Good luck in retirement, Gene! ii 2016 ANNUAL REPORT TO THE LEGISLATURE Nebraska Public Service Commissioners Tim Schram Rod Johnson 3rd District 4th District Gretna Sutton Chairman Vice-Chairman Frank E. Landis Crystal Rhoades Gerald L. Vap 1st District 2nd District 5th District Lincoln Omaha McCook General Administration Staff Jeff Pursley-Executive Director Shanicee Knutson-General Counsel & Deputy Director of Policy & Law Nichole Mulcahy-Legal Counsel Jamie Reyes-Legal Counsel Suzanne Hinzman-Deputy Director of Finance Brenda Wicken-Business Manager Amy Kavan-Accountant I John Monroe-Executive Assistant Stasha Oborny-Receptionist/Administrative Support Kendra Knauss-Personnel Officer Communications Department Staff Cullen Robbins -Director Steve Stovall-Accountant Cheryl Elton-Consumer Affairs Advocate/IT Support Deena Ackerman-Administrative Assistant Susan Horn-Administrative Assistant Telecommunications Infrastructure & Public Safety Department Staff Sue Vanicek-Director Vacant-Telehealth Coordinator/Program Analyst Laurie Casados-Program Analyst Joan Raffety-E911 Coordinator Kathy Shepard-Accountant Brandy Zierott-Administrative Assistant Sheila Ehrlich-Administrative Assistant Andrea Grell-NTAP Coordinator Jacki Synhorst-NTAP Specialist State 911 Department Dave Sankey-State 911 Director Matt Effken-Legal Counsel iii Nebraska Public Service Commission COMMISSIONERS 300 The Atrium, 1200 N Street, CRYSTAL RHOADES Lincoln, NE 68508 FRANK E. LANDIS P.O. Box 94927, GERALD L. VAP Lincoln, NE 68509-4927 ROD JOHNSON Website: psc.nebraska.gov TIM SCHRAM Phone: (402) 471-3101 Fax: (402) 471-0254 EXECUTIVE DIRECTOR NEBRASKA CONSUMER HOTLINE JEFFREY L. PURSLEY (800) 526-0017 September 30, 2016 It is with great pleasure that I submit the annual report on the status of telecommunications service in the State of Nebraska. This past year has been a year of change and growth in the telecommunications field and at the Commission. The transition from traditional telecommunications networks to networks capable of providing broadband services and beyond continues across Nebraska and the country. With the passage of LB 938 in the 2016 Legislative Session, the Commission has had to hit the ground running to meet the timelines specified in the bill. The bill directed the Commission to hire a state 911 director and staff to prepare a plan to implement a state 911 system. The plan is to be presented to the Legislature on December 1, 2017, after the Commission holds hearings on the proposed plan. The Commission has focused its efforts on creating and staffing the department and is well into the development of the plan. We look forward to working with the Legislature, local governments, providers, and other stakeholders as we move together toward statewide deployment of Next Generation 911. The Commission’s Broadband Program continued in its fifth year awarding $4 million from the Nebraska Universal Service Fund for approved broadband infrastructure projects to further the Commission’s goal of broadband availability throughout the State of Nebraska. The Commission also continued its Broadband Adoption Program to encourage the use of available broadband by citizens in Nebraska. Applications were accepted and $366,000 in grants were awarded for projects aimed at breaking down barriers to broadband adoption. More information about the specific broadband infrastructure and adoption projects awarded grant money is available in the report. If you have any questions about the report or any other issue regarding the Commission, please contact our Commissioners or staff. Sincerely, Tim Schram Chairman iv Executive Summary This report includes information on a multitude of communications issues. The Commission continues its efforts to facilitate the transition to Internet networks and increase the availability of broadband services across the state. A brief overview follows: Nebraska Universal Service Fund - Broadband Program Over $51.3 million for projects to construct new or upgrade existing broadband facilities across Nebraska since 2008. 138 broadband projects approved. Over 145 cellular towers funded in rural areas of Nebraska. $366,000 in support has been awarded in 2016 to fund three broadband adoption projects. Nebraska Universal Service Fund - Telehealth Network Funding for more than 76 Nebraska hospitals. More than $8.4 million in funding for the network since inception. The Commission recently approved additional funding over and above the annual cap for bridge upgrades and increased bandwidth on network backbone lines. Nebraska Universal Service Fund - Nebraska Telephone Assistance Program (NTAP) 7,665 Nebraskans receive assistance from NTAP to assist in affording basic wireless or traditional telephone service. Designed a new NTAP database to increase efficiency in eligibility determinations of applicants and respond to customer inquiries. E911 Mission Critical Partners report on the implementation of Next Generation 911 was submitted to the Transportation and Telecommunications Committee in April 2014. The Commission continues to coordinate with other state agencies, public safety answering points and local governments to facilitate and enable emergency networks across Nebraska. v Broadband Map/Boundary Maps The Nebraska Broadband Map, redesigned after the conclusion of the Broadband Grant program in January 2015, is available at http://broadbandmap.nebraska.gov. Collected broadband deployment data from carriers prior to the March 1 and September 1 FCC Form 477 deadlines to support the broadband map. In 2014, additional functionality was added to the Nebraska Broadband Map that allows users to view NUSF Broadband Grant Locations supported by the Nebraska Broadband Pilot Program between 2012 and 2014. In October 2014 the Commission sent its 10th and final broadband data submission to NTIA under the Broadband Grant program. vi T A B L E O F C O N T E N T S PART I - Overview 1. Brief History of the Commission .................................................................................................................... 3 a. History of Universal Service .......................................................................................................... 3 b. The Telecommunications Act of 1996 ............................................................................................ 3 c. Nebraska Universal Service ............................................................................................................ 4 2. The Changing Face of Communications ....................................................................................................... 4 a. The FCC Connect America Fund Reforms ................................................................................... 5 3. Looking Forward: The State Role ................................................................................................................. 4 PART II - Broadband 1. Broadband Defined ....................................................................................................................................... 10 a. American Recovery and Reinvestment Act of 2009 .................................................................... 11 2. Broadband Mapping ..................................................................................................................................... 11 3. Nebraska Internet Enhancement Fund ....................................................................................................... 16 a. Competitive Marketplace Fund.................................................................................................... 16 4. Low Income Pilot Programs ......................................................................................................................... 16 PART III - Nebraska Universal Service 1. Overview ........................................................................................................................................................ 20 a. Legislative History ......................................................................................................................... 20 b. Purpose ........................................................................................................................................... 20 2. Assessment .................................................................................................................................................... 21 a. Mechanism and Revenues ............................................................................................................. 21 b. Other State Comparisons .............................................................................................................. 21 3. Broadband Program ..................................................................................................................................... 22 a. Purpose ..........................................................................................................................................
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