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2nd Quarter 2015 Prepared by Robinson, McFadden & Moore

FRONTIER ACCEPTS CONNECT AMERICA PHASE 2 FUNDS accepted $283 million from the Connect America Fund to expand and support to over 1.3 million rural customers in 28 states including according to an FCC press release issued June 16, 2015. The Fund will provide support for rural broadband networks in the service area capable of delivering broadband at speeds of at least 10 Mbps for downloads and 1Mbps uploads in over 650,000 homes and businesses nationwide. Frontier’s South Carolina CAF support for 7,205 homes and businesses in this phase totals $2,709,651.

In late 2011 the FCC created the Connect America Fund which modernized the universal service program to support networks for broadband and voice services. Phase 1 of the fund has provided $438 million to expand broad band in 45 states and Puerto Rico, including $133 million to Frontier. Over the next 6 years Phase 2 of Connect America will provide more than $10 billion to expand broadband networks throughout rural America nationwide. The FCC’s map of final eligible areas for the entire country is available at https://www.fcc.gov/maps/fcc-connect-america-phase-ii-final-eligible-areas-map . The South Carolina portion of the map follows. (continued on page 3)……..

INSIDE THIS ISSUE :

News from Executive Director 2

SC Legislative Update 4

FCC Briefs 6

State Issued Certificates 7

2 nd Quarter 2015 SCCTA Newsletter Page 2 2 nd Quarter 2015 SCCTA Newsletter Page 2

From the Executive Director… The first session of the 121st General Assembly (GA) of South Carolina recently ended. While your SC Cable Television Association was monitoring over 200 bills (directly or indirectly affecting the SC cable industry) filed in the Palmetto State, SC Senate Bill 277 was our focus for this past session and will be our main objective for the 2016 session, which commences in January.

S 277 updates existing state telecom law to ensure equitable funding for two programs the Telephone Relay Services (“TRS”) and the (“USF”) that the SC legislature has previously found to be in the public interest. This bill has broad industry support: Incumbent local exchange carriers, including rural LECs, AT&T (largest local carrier and second-largest wireless carrier in the state), Competitive local exchange carriers, VoIP providers & Cable providers. S277 expands the base of contributors to the TRS fund (provides support for programs to assist speech and hearing impaired citizens, as well as closed captioning for legislative proceedings). It likewise expands the base of contributors to the State USF, which is intended to subsidize basic local service to ensure that all citizens can make calls to all locations throughout the state. The bill consolidates the Interim LEC Fund (an access charge replacement fund) into the USF and freezes both funds at current levels. but does not expand the Commission’s jurisdiction with respect to wireless and VoIP. Additionally, it sunsets regulation after 5 years of any remaining lines for carriers who elect deregulation (a provision that only applies to AT&T at this point).

The amended bill passed the SC Senate with certain accountability measures added and currently resides in the SC House Labor Commerce & Industry Committee. Concerns have been expressed regarding new fees for wireless customers even though the bill is revenue neutral. Supporters strongly believe it is fair that all carriers providing similar voice services, including wireless and VoIP should contribute to these programs on the same basis. The bill’s coalition of AT&T, the RLECs and the SCCTA plan to meet in the interim to strategize and discuss next steps to ensure passage in 2016.

On June 4, 2015 the SC General Assembly adjourned. However, the sine die resolution allows SC lawmakers to return to finish the uncompleted annual appropriations bill, conference reports and gubernatorial vetoes. After the horrific Charleston massacre which claimed the life of SC State Senator Clementa Pinckney, the resolution was amended to allow SC lawmakers to vote on removal of the confederate battle flag which resided on statehouse grounds. The confederate battle flag was ceremoniously removed from statehouse grounds on July 10th under the watchful eyes of an international audience. Our deepest sympathies are extended to the family of Senator Pinkney, with whom we sincerely enjoyed working with for quite a few years.

This year, we had a record number of 21 applicants vying to become a 2015 recipient of our SC Cable Scholarship initiative. I thank our selection committee, Mike Mitchell, Dan Jones & Brad Phillips for taking the time away from their busy schedules to review the plethora of paperwork submitted by these fine applicants. I congratulate the 2015 recipients listed in this newsletter.

This will be great month for your association as we meet together for an association board meeting, foundation board meeting and our annual meeting as we prepare for another successful year promoting and protecting our many cable industry interests in South Carolina. I sincerely appreciate everything each of you contributes to these successes. Ray Sharpe

2 nd Quarter 2015 SCCTA Newsletter Page 3

Frontier – CAF PHASE II (continued from page 1)

The FCC offered $1.675 billion annually for six calendar years for rural broadband development to price cap carriers in late April. Funding in Phase 2 is targeted to census blocks where the cost of providing service exceeds $52.50 per month and that are not served by unsubsidized competitors offering service at speeds of at least 4 Mbps downloads / 1 Mbps uploads. AT&T was offered $493 million, CenturyLink $524 million and Windstream $179 million. Carriers receiving support must build out broadband to 40% of funded locations by the end of 2017, 60% by the end of 2018, and 100% by the end of 2020. The Universal Service Fund allocates $4.5 billion annually through various universal service programs.

The FCC’s report listing counties in South Carolina where Connect America Fund Phase 2 will expand broadband include the following:

AT&T Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Berkeley, Calhoun, Charleston, Cherokee, Chesterfield, Colleton, Darlington, Dillon, Dorchester, Edgefield, Fairfield, Florence, Greenville, Kershaw, Lancaster, Laurens, Lee, Lexington, McCormick, Marion, Marlboro, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Sumter, Union, York CenturyLink Abbeville, Allendale, Beaufort, Berkeley, Dorchester, Greenwood, Hampton, Horry, Jasper, Laurens, McCormick, Newberry, Orangeburg, Saluda Frontier Abbeville, Aiken, Allendale, Bamberg, Barnwell, Beaufort, Calhoun, Charleston, Clarendon, Colleton, Darlington, Dorchester, Fairfield, Florence, Georgetown, Greenville, Hampton, Horry, Laurens, Lee, McCormick, Orangeburg, Spartanburg, Sumter, Williamsburg Windstream Calhoun, Chesterfield, Greenville, Kershaw, Lancaster, Lexington, Orangeburg, Spartanburg

CONGRATULATIONS

2015 SC Cable Scholars Recipients

Noah Bruening, Chandler Bruening, Grace Breazeale , Kathleen Kennedy, Dallas Gleaton & Margaret Jolly

Jack Delanty Jason Brantley

2 nd Quarter 2015 SCCTA Newsletter Page 4

SOUTH CAROLINA LEGISLATIVE UPDATE

The following bills of interest were enacted during the General Assembly’s first session:

Act 34 / Senate Bill 590 – Ignition Interlock Devices Employer’s vehicle waiver does not apply to a person convicted of a 2nd or subsequent violation for driving under the influence. http://www.scstatehouse.gov/sess121_2015-2016/bills/590.htm

Act 46 / Senate Bill 350 – SC Economic Development Act Terminates the SC Economic Development Act on June 30, 2020. http://www.scstatehouse.gov/sess121_2015-2016/bills/350.htm

Act 68 / House Bill 3725 – State-Owned Abandoned Buildings Taxpayer may elect a 25% tax credit for making qualified rehabilitation expenditures for certified historic structures in lieu of 10% tax credit, not to exceed $1 million for each historic structure. http://www.scstatehouse.gov/sess121_2015-2016/bills/3725.htm

Act 70 / Senate Bill 11 – Notice of Meetings for Public Bodies This act amends the S.C. Freedom of Information Act concerning the required notice of public bodies. It requires public bodies to post agendas for all regularly scheduled meetings and special meetings. http://www.scstatehouse.gov/sess121_2015-2016/bills/11.htm

Act 77 / Senate Bill 407 – Unemployment Benefits Provides that corporate officers are eligible for unemployment benefits unless the corporation elects to opt out of the coverage. http://www.scstatehouse.gov/sess121_2015-2016/bills/407.htm

Act 80 / House Bill 3305 – Unemployment Benefits Revises range of specimens to be tested for illegal drug use to include oral fluids for purposes of denying unemployment benefits. http://www.scstatehouse.gov/sess121_2015-2016/bills/3305.htm

Act 87 / Senate Bill 379 – County Tax Officials Changes mandatory audits of county auditors and treasurers and revises numerous local tax provisions. http://www.scstatehouse.gov/sess121_2015-2016/bills/379.htm

The following bills of interest were introduced after the 1st Quarter Newsletter:

Senate Bill 639 / House Bill 3950 – Uniform Anti-discrimination Act Expands definition of discrimination to include discrimination based on sexual orientation and makes it unlawful for an employer to discriminate based on sexual orientation among other actions. http://www.scstatehouse.gov/sess121_2015-2016/bills/639.htm Senate Judiciary http://www.scstatehouse.gov/sess121_2015-2016/bills/3950.htm House 1st Reading

Senate Bill 668 / House Bill 4043– SC Commercial Property Assessed Clean Energy Act Governing bodies may establish a special purpose district for the purpose of promoting and facilitating clean energy improvements within its geographic area. Senate Labor, Commerce & Industry http://www.scstatehouse.gov/sess121_2015-2016/bills/668.htm http://www.scstatehouse.gov/sess121_2015-2016/bills/4043.htm House Ways & Means

Senate Bill 674 – Workers’ Compensation Act Reorganizes Workers Compensation Commission as a division of the SC Dept. of Insurance. http://www.scstatehouse.gov/sess121_2015-2016/bills/674.htm Senate Judiciary

Senate Bill 714 – Filing System Allows Dept. of Revenue to file tax lines via an Internet accessible notice system. http://www.scstatehouse.gov/sess121_2015-2016/bills/714.htm Senate Finance

2 nd Quarter 2015 SCCTA Newsletter Page 5

Legislation (continued….)

Senate Bill 886 – Sine Die Adjournment Allows General Assembly to continue in session June 16 through 18. http://www.scstatehouse.gov/sess121_2015-2016/bills/886.htm Senate Judiciary

House Bill 3948 – Commercial Motor Vehicle Equity & Infrastructure Improvement Act Certain vehicles would be assessed on a road use fee instead of paying a property tax. http://www.scstatehouse.gov/sess121_2015-2016/bills/3948.htm House Ways & Means

House Bill 3949 – Employment Discrimination Amends employment discrimination law to include sexual orientation or gender identity. http://www.scstatehouse.gov/sess121_2015-2016/bills/3949.htm House Judiciary

House Bill 3951 – Prohibition Against Employer Intimidation Act Prohibits persons, organizations, or unions from threatening to injure or coerce a business or its representative with the intent to unlawfully intimidate them. http://www.scstatehouse.gov/sess121_2015-2016/bills/3951.htm House Judiciary

House Bill 3970 – Liens Creates a lien for medical expenses for personal injury damages. http://www.scstatehouse.gov/sess121_2015-2016/bills/3970.htm House Judiciary

House Bill 4152 – Income Tax Reduces income tax rate over several years until eliminated after 2018. http://www.scstatehouse.gov/sess121_2015-2016/bills/4152.htm House Ways & Means

House Bill 4170 – Resolution “Connect SC Day” Urges all communities to complete their own connect SC assessment and technology action plan so their residents can enjoy the benefits of high-speed broadband service. http://www.scstatehouse.gov/sess121_2015-2016/bills/4170.htm House adopted

House Bill 4197 – SC Employee Injury Benefit Plan Alternative Act authorizes new forms of insurance coverage and exemption from the SC Workers’ Compensation Law. http://www.scstatehouse.gov/sess121_2015-2016/bills/4197.htm House Labor, Commerce & Industry

House Bill 4226 – Property Tax Assessments Reduces the assessment ratio for property tax on commercial and other applicable real property from 6% to 5%. http://www.scstatehouse.gov/sess121_2015-2016/bills/4226.htm House Ways & Means

House Bill 4227 – Sales Tax Exemptions Eliminates some sales tax exemptions, but not the exemptions for toll charges for telephone transmissions or supplies and electricity sold to cable television systems. http://www.scstatehouse.gov/sess121_2015-2016/bills/4227.htm House Ways & Means.

House Bill 4228 – Income Tax Eliminates the 4, 5 & 6% income brackets and replaces them with 3.75% bracket. http://www.scstatehouse.gov/sess121_2015-2016/bills/4228.htm House Ways & Means

House Bill 4229 – Property Tax Exemptions Phases in property tax exemptions for manufacturing and business personal property over 4 years. http://www.scstatehouse.gov/sess121_2015-2016/bills/4229.htm House Ways & Means

House Bill 4274 – Sine Die Adjournment General Assembly to return June 16-18. http://www.scstatehouse.gov/sess121_2015-2016/bills/4274.htm

2 nd Quarter 2015 SCCTA Newsletter Page 6

Legislation (continued….)

House Bill 4307 – Home Security System – Elderly Provides a 120 day period for which a resident over 70 may terminate contracts for security system or home medical devices. http://www.scstatehouse.gov/sess121_2015-2016/bills/4307.htm House Labor, Commerce & Industry

House Bill 4351 – Sine Die Adjournment Allows General Assembly to consider infrastructure improvement bill prior to adjournment. http://www.scstatehouse.gov/sess121_2015-2016/bills/4351.htm Passed House, Senate Judiciary Committee

FCC BRIEFS The following documents can be downloaded from the FCC’s website at http://www.fcc.gov On June 22, 2015, the FCC issued a report and order On May 22, 2015, the Wireline Competition Bureau establishing a process to authorize interconnected VoIP released its Low-Income Broadband Pilot Program Staff providers to obtain NANP telephone numbers directly Report. The Pilot studied the effects of varying subsidy from the Numbering Administrators rather than 3rd amounts, hardware costs, access to digital literacy, party carriers. (FCC 15-70) technology offered, and service characteristics. (DA 15- 624) On June 18, 2015, the FCC issued its most recent Lifeline Reform Order and further notice seeking On May 21, 2015, the FCC adopted rules to ensure blind comments on adopting minimum service standards for individuals can quickly access critical information on both voice and broadband service, whether broadband television in the event of an emergency. The FCC also should be a required offering of Lifeline providers, how seeks comment on other possible accessibility issues to encourage more competition to improve price and facing the blind in this proceeding. (FCC 15-56). service, and how to encourage more participation by On May 12, 2015, the FCC announced that Verizon will the states among others. The Order also makes pay $90 million and Sprint $68 million to settle immediate reforms to reduce waste, fraud and abuse. investigations that the companies billed customers (FCC 15-71). millions in unauthorized 3rd party premium text On June 18, 2015, the FCC adopted a proposal to messaging services. protect consumers against unwanted robocalls and On April 29, 2015, AT&T and SNET paid $10.9 million spam texts. (FCC 15-72) fine for overbilling the Federal Lifeline program to The FCC announces its plans to fine AT&T Mobility $100 resolve the FCC investigation. The investigation showed million for misleading consumers about unlimited that AT&T and its affiliates continued to provide service mobile data plans and violating transparency to landline Lifeline customers without recertifying their obligations on June 17, 2015. eligibility as required. On June 3, 2015, the FCC issued its 6th Report and Order On April 16, 2015, the Wireline Competition Bureau to improve the Emergency Alert System by establishing announced the 2015 rate floor of $21.22 for incumbent specific operational standards for use during future ETCs. tests and emergencies. (FCC 15-60) On April 8, 2015, AT&T agreed to pay $25 million In a letter dated June 1, 2015, AT&T voluntarily settlement to resolve an investigation into consumer committed to expand and enhance broadband privacy violations of its call centers in Mexico, Colombia availability to 15 million locations as part of its and the Philippines. The data breach involved proposed DIRECTV merger. AT&T indicated that unauthorized disclosure of almost 280,000 customers’ Connect America Funds would not be used to deploy names, social security numbers and unauthorized broadband as part of the transaction. access to CPNI.

2 nd Quarter 2015 SCCTA Newsletter Page 7

STATE-ISSUED CERTIFICATES OF FRANCHISE AUTHORITY As of June 3, 2015, the South Carolina Secretary of State has issued the following certificates of franchise authority. Metrocast Communications’ certificate was transferred to Sandhill ConNEXTions in April. Changes from the last newsletter are highlighted in red:

ATLANTIC BROADBAND…………….… Aiken, Aiken County, Allendale, Allendale County, Bamberg, Bamberg County, Barnwell, Barnwell County, Blackville, Burnettown, Denmark, Elko, Fairfax, Jackson, New Ellenton, Orangeburg County, Perry, Salley, Snelling, Springfield, Wagner, Williston BALDWIN COUNTY INTERNET/…..… Beaufort County, Charleston County, Greenville, Greenville County DSSI SERVICE, LLC

BELLSOUTH TELECOMMUNICATIONS, …Aiken, Anderson, Anderson County, Arcadia Lakes, Bamberg County, Belton, INC. d/b/a AT&T SOUTH CAROLINA Berkeley County, Blythewood, Burnettown, Calhoun County, Camden, Cayce, Central, Chapin, Charleston, Charleston County, Cheraw, Cherokee County, Chesterfield County, Clemson, Clover, Colleton County, Columbia, Cordova, Dorchester County, Duncan, Easley, Edgefield County, Edisto Beach, Elgin, Fairfield County, Folly Beach, Forest Acres, Fountain Inn, Gaffney, Gaston, Goose Creek, Greenville, Greenville County, Greer, Hanahan, Hollywood, Irmo, Isle of Palms, James Island, Kiawah Island, Kershaw County, Laurens County, Lexington County, Liberty, Lincolnville, Little Mountain, Lyman, Marlboro County, Mauldin, McConnells, Mount Pleasant, Newberry, Newberry County, North Augusta, North Charleston, Oconee County, Orangeburg, Orangeburg County, Pelzer (incumbent portions), Pickens, Pickens County, Pine Ridge, Ravenel, Reidville, Richland County, Rockville, Seabrook Island, Seneca, Six Mile, South Congaree, Spartanburg, Spartanburg County, Springdale, Sullivan’s Island, Summerville, Travelers Rest, Union, Union County, Walhalla, West Columbia, West Pelzer, Westminster, Williamston, York, York County

BERKELEY CABLE TV, INC…………….Berkeley County, Bonneau, Charleston, Goose Creek, Harleyville, Jamestown, Moncks Corner, North Charleston, St. Stephens, Summerville BROADBAND EXPERIENCE d/b/a FAMILY VIEW … ……Central, Clemson, Pickens County CAMDEN CORPORATE INVESTMENTS LLC, d/b/a TRUVISTA………………………. City of Camden

CAROLINA TELECOM SERVICES……. Hickory Grove, Sharon, York CATAWBA SERVICES, LLC ……………Rock Hill , LLC…..Abbeville, Anderson County, Belton, Campobello, Central Pacolet, Cherokee County, Chesnee, Clinton, Cowpens, Duncan, Easley, Gray Court, Greer, Greenville, Greenville County, Honea Path, Inman, Iva, Jonesville, Landrum, Laurens, Laurens County, Lockhart, Mauldin, Newberry County, Oconee County, Pelzer, Pickens County, Reidville, Salem, Simpsonville, Six Mile, Spartanburg, Spartanburg County, Starr, Travelers Rest, Union, Union County, Wellford, West Pelzer, Whitmire, Williamston, Woodruff CHESNEE COMMUNICATIONS………Cherokee County, Chesnee, Spartanburg County CHESTER COMMUNICATIONS, LLC d/b/a TRUVISTA………………………….Chester, Richburg

COMCAST CABLE COMMUNICATIONS MANAGEMENT, LLC ……………………. Brunson, Colleton County, Folly Beach, Hampton, Jasper County, Kiawah Island, North Charleston, Ravenel, Rockville, Walterboro, Yemassee

COMCAST OF CAROLINA…………….. Berkeley County, Charleston, Dorchester County, Edisto Beach, Goose Creek, Hampton County, Hanahan, Isle of Palms, James Island, Mount Pleasant, Sullivan’s Island, Summerville COMCAST OF GEORGIA/SC II…………Beaufort County, Charleston, Edisto Beach, Hampton County, Hollywood, Meggett, Mount Pleasant, Town of Seabrook Island

COMCAST OF GEORGIA/SC INC………Aiken County, Burnettown, Hampton County, North Augusta COMCAST OF THE SOUTH……………..Calhoun Falls, Prosperity ELK COMMUNICATIONS, LLC………… Gaston, Lexington County, Swansea FAIRVIEW COMMUNICATIONS d/b/a TRUVISTA…………………………Blythewood, Richland County, Ridgeway, Winnsboro

2 nd Quarter 2015 SCCTA Newsletter Page 8

State-Issued Certificates of Franchise Authority continued…

FARMERS TELEPHONE…………………Andrews, Clarendon County, Coward, Florence County, Georgetown County, COOPERATIVE Greeleyville, Lane, Lee County, Lynchburg, Mayesville, Paxville, Pinewood, Scranton, Sumter, Sumter County, Turbeville, Williamsburg County

FTC DIVERSIFIED SERVICES, LLC……Bishopville, Clarendon County, Florence County, Georgetown County, Hemingway, Kingstree, Lake City, Lee County, Manning, Olanta, Summerton, Sumter, Sumter County, Williamsburg County

GREAT FALLS CABLEVISION, INC……Town of Great Falls d/b/a TRUVISTA CATV CO., INC…………….…Bluffton, Estill, Hampton, Hardeeville, Hilton Head Island, Jasper County, Ridgeland HARGRAY, INC………………………….. Beaufort, Beaufort County, Port Royal HORRY TELEPHONE COOPERATIVE…Conway, Horry County, Georgetown County, Surfside Beach HPI ACQUISITION CO., LLC………….…Anderson, Anderson County, Donalds, Due West OF CHARLESTON, INC……City of Charleston, Charleston County, Dorchester County, Hanahan, James Island, Lincolnville, Mount Pleasant, North Augusta, North Charleston, Summerville MANAGED SERVICES INC……………. Berkeley County, Horry County, Jasper County, Richland County NORTHLAND CABLE TELEVISION……Abbeville County, Central, Clemson, Edgefield, Greenwood, Greenwood County, Hodges, Johnston, Laurens County, Ninety Six, Norris, Oconee County, Pendleton, Pickens, Pickens County, Saluda, Saluda County, Seneca, Six Mile, Walhalla, Ware Shoals, West Union, Westminster PALMETTO CABLE TV, LLC…………… Fort Mill, Lancaster County, Tega Cay PALMETTO RURAL TELEPHONE….… Bamberg County, Colleton County, Cottageville, Lodge, Smoaks, Walterboro, COOPERATIVE, INC. Williams PASSPORT COMMUNICATIONS………Fort Mill PINE TREE CABLEVISION……………Aiken County, Bamberg County, Barnwell County, Bethune, Cottageville, Gaston, Jefferson, Kershaw County, Lamar, McBee, Orangeburg County, Perry, Salley, Wagener PBT COMMUNICATIONS………………Gilbert, Lexington, Lexington County, Monetta, Pelion, Ridge Springs, Saluda County, Summit, Wagener RST COMMUNICATIONS, INC…………Gaffney SANDHILL TELEPHONE COOPERATIVE..Bethune, Chesterfield County, Jefferson, Kershaw County, McBee, Mount Croghan, Pageland, Patrick SANDHILL ConNEXTions, LLC……….. McColl, Marlboro County SOUTHERN COASTAL CABLE, LLC…..Georgetown, Georgetown County SOUTHERN CABLE COMMUNICATIONS…Georgetown, Georgetown County TECHCORE CONSULTANTS II………...Bowman, Dorchester County, Earhardt, Eutawville, Holly Hill, Orangeburg County , ………………. Andrews, Batesburg-Leesville, Beaufort County, Bishopville, Bluffton, Calhoun SOUTHEAST, LLC County, Cayce, Charleston County, Cheraw Clover, Chesterfield County, Columbia, Conway, Cordova, Darlington County, Dillon, Dillon County, Eastover, Elgin, Florence, Florence County, Forest Acres, Fort Mill-rescinded, Georgetown, Georgetown County, Goose Creek, Hardeeville, Hemingway, Hilton Head, Horry County, Irmo, Jasper County, Kingstree, Lakeview, Lane, Latta, Lee County, Lexington, Lexington County, Manning, Marion County, McBee, Moncks Corner, Myrtle Beach, Nichols, North Myrtle Beach, Orangeburg, Orangeburg County, Pamplico, Paxville, Pawleys Island, Pine Ridge, Quinby, Richland County, Saluda County, South Congaree, Springdale, St. Matthews, Surfside Beach, Summerville, Sumter, Sumter County, Timmonsville, West Columbia, Williamsburg County, York County

VIDEO VISION, INC………………………Fort Lawn, Heath Springs, Kershaw, Lancaster, Lancaster County YRT2, INC……………………………….…Berkeley County, Columbia, Dorchester County, Greenville, Greenville County, Horry County, Myrtle Beach, Summerville