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ANNUAL REPORT TO THE LEGISLATURE ON THE STATUS OF THE NEBRASKA TELECOMMUNICATIONS INDUSTRY NEBRASKA PUBLIC SERVICE COMMISSION September 30, 2015 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 2015 Annual Report to the Legislature is dedicated to Deputy Director John Burvainis (1948-2015) who served the Commission from 1977 to 2015. You will be missed John. ii 2015 ANNUAL REPORT TO THE LEGISLATURE Nebraska Public Service Commissioners Gerald L. Vap Tim Schram 5th District 3rd District McCook Gretna Chairman Vice-Chairman Frank E. Landis Crystal Rhoades Rod Johnson 1st District 2nd District 4th District Lincoln Omaha Sutton General Administration Staff Jeff Pursley-Executive Director Shanicee Knutson-General Counsel & Deputy Director of Policy & Law Nichole Mulcahy-Legal Counsel Jamie Reyes-Legal Counsel Brenda Wicken-Business Manager Amy Kavan-Accountant I Kathy Lahman-Executive Assistant Stasha Oborny-Receptionist/Administrative Support Communications Department Staff Gene Hand-Director Steve Stovall-Accountant Cullen Robbins-IT/Telecom/GIS Analyst Cheryl Elton-Consumer Affairs Advocate/IT Support Deena Ackerman-Administrative Assistant Susan Horn-Administrative Assistant Telecommunications Infrastructure & Public Safety Department Staff Sue Vanicek-Director Krystal Klicko-Telehealth Coordinator/Program Analyst Laurie Casados-Program Analyst Joan Raffety-E911 Coordinator Kathy Shepard-Accountant Brandy Zierott-Administrative Assistant Sheila Ehrlich-Administrative Assistant/NTAP Specialist Andrea Grell-NTAP Coordinator Jacki Synhorst-NTAP Specialist 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, 2015 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 continues across Nebraska and the country. The Commission’s Broadband Program for the fourth year awarded $8 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. New this year, the Commission implemented a Broadband Adoption Pilot Program to encourage the use of available broadband by citizens in Nebraska. Applications were accepted and $500,000 in grants awarded for projects aimed at breaking down barriers to broadband adoption. More information about the specific broadband infrastructure and adoptions projects awarded grant money is available in the report. The Commission was fortunate to host Federal Communications Commissioner Ajit Pai in June for a workshop regarding Multi-Line Telephone Systems and access to 911 services. The event was held at the University of Nebraska’s Innovation Campus and was a great opportunity for industry members and stakeholders to consider solutions to a pressing public safety issue. Discussions continue regarding Next Generation 911 in Nebraska. The Commission submitted its report on infrastructure issues, GIS data requirements, and the cost of implementation of Next Generation 911 in Nebraska to the Transportation and Telecommunications Committee in April 2014 and remains involved as the Next Generation 911 issues evolve. If you have any questions about the report or any other issue regarding the Commission, please contact our Commissioners or staff. Sincerely, Gerald L. Vap 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. 54,050 Nebraskans gained access to improved internet services. Over 145 cellular towers funded in rural areas of Nebraska. $533,000 in support has been awarded in 2015 to fund five broadband projects. Nebraska Universal Service Fund - Telehealth Network Funding for more than 76 Nebraska Hospitals. More than $7.6 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) 9,399 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 annual review, certification, and submission of phone company study area data to the FCC was completed on June 29, 2015. This submission included changes prior to that date, including boundary changes approved by the Commission. The Nebraska Broadband Map created from the Broadband Grant program is available at http://broadbandmap.nebraska.gov. Added functionality 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 .................................................................................................................... 1 a. History of Universal Service .......................................................................................................... 1 b. The Telecommunications Act of 1996 ............................................................................................ 1 c. Nebraska Universal Service ............................................................................................................ 2 2. The Changing Face of Communications ....................................................................................................... 2 a. The FCC Connect America Fund Reforms ................................................................................... 3 3. Looking Forward: The State Role ................................................................................................................. 4 PART II - Broadband 1. Broadband Defined ......................................................................................................................................... 6 a. American Recovery and Reinvestment Act of 2009 ...................................................................... 7 2. Broadband Mapping ....................................................................................................................................... 7 3. Nebraska Internet Enhancement Fund ....................................................................................................... 15 a. Competitive Marketplace Fund.................................................................................................... 15 4. Low Income Pilot Programs ......................................................................................................................... 15 PART III - Nebraska Universal Service 1. Overview ........................................................................................................................................................ 17 a. Legislative History ......................................................................................................................... 17 b. Purpose ........................................................................................................................................... 17 2. Assessment .................................................................................................................................................... 18 a. Mechanism and Revenues ............................................................................................................. 18 b. Other State Comparisons .............................................................................................................. 18 3. Broadband Program ..................................................................................................................................... 19 a. Purpose ........................................................................................................................................... 19 b. Application Process ......................................................................................................................
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