2019 Annual Report on Telecommunications NEBRASKA PUBLIC SERVICE COMMISSION 1200 N. Street, Suite 300 Lincoln, Ne 68589 402.471.3101 800.526.0017 www.psc.nebraska.gov ANNUAL REPORT TO THE LEGISLATURE ON THE STATUS OF THE NEBRASKA TELECOMMUNICATIONS INDUSTRY NEBRASKA PUBLIC SERVICE COMMISSION September 30, 2019 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 i 2019 Annual Report to the Legislature Nebraska Public Service Commissioners Rod Johnson Mary Ridder 4th District 5th District Sutton Callaway Vice- Chair Chair Dan Watermeier Crystal Rhoades Tim Schram 1st District 2nd District 3rd District Syracuse Omaha Gretna General Administration Staff Michael G. Hybl-Executive Director Shanicee Knutson-General Counsel & Deputy Director of Policy & Law Matt Effken-Legal Counsel Sallie Dietrich-Legal Counsel Dillon Keiffer-Johnson-Legal Counsel Suzanne Hinzman-Deputy Director of Finance Lynda Roesler-Internal Auditor Brenda Wicken-Business Manager Burdette Schoen-Accountant Laurie Casados-Budget-Finance Manager Deb Collins-Media & Communications Manager John Monroe-Executive Assistant Jennifer Maggart-Personnel Officer Deborah Bertram -Receptionist/Administrative Support Communications-NUSF Department Staff Cullen Robbins-Director Steve Stovall-Accountant Brandy Zierott-Administrative Assistant Susan Horn-Administrative Assistant Cheryl Elton-Affairs Advocate/IT Support Andrea Grell-NTAP Manager Victor Kapustin-Policy Analyst/Telehealth Coordinator Dohee Kim-GIS Specialist State 911 Department Dave Sankey-State 911 Director Jacki Synhorst-Administrative Assistant Tina Bartlett-Administrative Coordinator Kathy Shepard-Accountant I James Almond-Field Coordinator Kea Morovitz-GIS Specialist ii PUBLIC SERVICE COMMISSION COMMISSIONERS: ROD JOHNSON CRYSTAL RHOADES MARY RIDDER TIM SCHRAM DAN WATERMEIER September 30, 2019 We are pleased to produce this annual report on Telecommunications service in the State of Nebraska. This past year, we made great strides in developing Next Generation 911 by setting into motion the 911 Service System Advisory Committee and it’s many sub-committees responsible for areas of the NG 911 plan such as funding, training, GPS, technical, operations, etc. Our new connections-based surcharge went into effect on April 1, and is doing what we intended in capturing dollars which should have been contributed to the Nebraska Universal Service Fund over the past several years and at the same time restoring the fund size. The NUSF saw several big impact changes, including stabilizing the fund, making it predictable, and giving a new look to how those funds are dispersed. All of this matters because it means we can send more money out into the countryside where Nebraskans need and want better broadband. This multi-million dollar fund that benefits our most rural, high cost areas of the state is crucial in reaching those last customers who have no, little or undependable broadband service. At the precise moment that we are assisting carriers in pushing broadband further out into remote areas, we continue to work very closely with carriers whose customers – most especially their voice/land line customers – struggle to receive dependable, affordable, good quality service. And this matters to all of Nebraska, because our state thrives when we all thrive: rural Nebraska’s contribution to our state GDP is central to our state’s success. While NG 911 and our NUSF high cost funds garner much time and attention, we remain focused on funding more mobile wireless towers and determining how to update that application and qualification process, on our programs which assist our vulnerable and low-income citizens, and on what may be coming around the bend from both the Nebraska Rural Broadband Task Force and the Legislature. The Commission accomplished a great deal in 2018-2019. Generally we celebrate for about one minute, then get to work on the next step or goal. We welcome your ideas and opinions as we work to make your communication services in Nebraska among the best in the United States. Sincerely, Mary Ridder Michael G. Hybl, Executive Director Public Service Commission P.O. Box 94927 OFFICE 402-471-3101 FAX 402-471-0254 300 The Atrium, 1200 N Street CONSUMER HOTLINE 800-526 -0017 Lincoln, Nebraska 68509 psc.nebraska.gov iii 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 (NUSF) The Commission took steps to stabilize the Universal Service Fund by implementing a per-connection surcharge mechanism for residential services. The surcharge, starting April 1, and continuing through the 2020 fiscal year, was set at $1.75 per connection. Business services remain at least temporarily, on a revenues-based surcharge mechanism, and assessed at 6.95% of assessable revenues. The Commission, through its NUSF-108 proceeding, continued to modify the allocation mechanisms to promote and incentivize broadband buildout in area that lack service. The Commission provided support for the construction of eight mobile wireless towers in areas that lack sufficient coverage. The Commission continues to support low-income residents through its Nebraska Telephone Assistance Program (NTAP). More than 5,700 residents were supported through this program in 2019. The Commission continued its participation on the Rural Broadband Task Force, which aims to examine technologies and strategies to bring broadband to high cost rural areas. The Commission initiated a rulemaking proceeding that could result in a reverse- auction mechanism to reallocate universal service support in areas that lack broadband. State 911 On December 13, 2017, the Commission presented the 911 Service System, NG911 Master Plan to a joint session of the Legislature’s Transportation and Telecommunications and Appropriations Committees. LB993, introduced by Senator Curt Friesen, created the 911 Service System Advisory Committee, consolidated funds into the 911 Service System Fund and authorized the implementation of Next Generation 911 (NG911) in Nebraska as of July 1, 2018. The 911 Service System Fund will support implementation, coordination, deployment, management and maintenance of 911 Service System, NG911 Master Plan. iv Executive Summary Continued…. The State 911 Department is working with the 911 Service System Advisory Committee to develop and issue a Request For Proposal (RFP), for a vendor hosted statewide Emergency Services Internet Protocol Network (ESInet) and Next Generation 911 Core Services (NGCS). The creation and maintenance of NG911 Specific 911 Geographic Information System (GIS) data remains a high priority so that 911 calls in the NG911 environment can be located and routed geospatially. Legislative Action- 2019 LB 184- The goal of this bill was to facilitate efficient and uniform siting practices for small cell wireless facilities. LB268- This bill modifies one of the tests for which a boundary change may be approved to be whether the applicant is receiving or able to receive, at the time of the application, broadband from the incumbent provider. LB462- This bill made modifications to the authority of the Commission to regulate certain aspects of Voice over Internet Protocol (VoIP), Interexchange (LXC), mobile wireless, and paging services, and modified the requirements for filing tariffs. LB 641- This bill provided the Commission with a mandate to create and administer a grant process for a 211 Information and Referral Network. v T A B L E O F C O N T E N T S PART I - Overview 1. Brief History of the Commission ................................................................................ 2 a. The Telecommunications Act of 1996 ............................................................. 2 b. History of Universal Service .......................................................................... 3 2. The Changing Face of Communications ..................................................................... 3 a. The FCC Connect America Fund Order………………………………………………………5 b. Intercarrier Compensation……………………………………………………………………...6 3. Looking Forward: The State Role………………………………………………………………………...6 a. Cooperative Federalism…………………………………………………………………………..7 PART II - Telecommunications 1. Overview…………………………………………………………………………………………………………. 9 2. Broadband Mapping…………………………………………………………………………………………. 9 a. Broadband Mapping Various Examples…………………………………………………10-13 3. Nebraska Internet Enhancement Fund .................................................................... 14 a. Competitive Marketplace Fund .................................................................... 14 4. Competitive Local Exchange Carriers………………………………………………………………….15 5. Interconnection Agreements……………………………………………………………………………..15 6. Exchange Boundaries………………………………………………………………………………………..16 7. Tariffs……………………………………………………………………………………………………………...17 8. ETC’s………………………………………………………………………………………………………………..17 9. Deaf and Hard-of-Hearing/Telecommunications Relay Services……………………………18 a. Nebraska Specialized Equipment Program………………………………………………….19 b. Federal Issues Impacting Telecommunication Relay Services……………………….19 c. Telecommunications Relay Service Statistics and Table…………………………..19-20 10. Area Code Overlay and Other Numbering Issues………………………………………………….21