California Teleconnect Fund Handbook

California
Teleconnect Fund
Handbook
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CONTENTS
Summary.......................................................................................................Page 2
Step One – Obtain Certification with the California Public Service Commission......Page 3
Step Two – Collect and Remit Surchares.............................................................Page 4
Step Three – CTF Eligible Services and Pricing....................................................Page 5
Step Four - Submit Claim Form..........................................................................Page 6
Attachments....................................................................................................Page 8
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Service Provider Process for California Teleconnect Fund
Summary
As part of their commitment to universal service, the California Teleconnect Fund
(CTF) was established in 1996 (Decision 96-10-066) by the California Public Utilities
Commission in accordance with state and federal directives. The program is funded
through a surcharge on all customers that purchase intrastate telecommunications
services. The surcharge rate is established annually.
The CTF program provides a 50% discount on select communication services to schools,
libraries, hospitals, and other non-profit organizations. Schools and libraries have
the option to also participate in the FCC’s E-Rate program in conjunction with the CTF
program.
This document will focus primarily on the service provider’s responsibilities in order to
participate in the program.
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Step One – Obtain Certification with the
California Public Service Commission
The first step in being able to participate in the CTF program as a service provider is to obtain
certification from the California Public Utilities Commission. Certification is needed in order to file
a CTF claim however; non-certified or registered service providers can participate by partnering
with a certificated/registered CTF participating service provider.
If a service provider does not already hold a CPCN or Registration they should follow the process
to obtain certification/registration. Detail on this process can be found on the California Public
Utilities Commission’s website at www.cpuc.ca.gov. Click on Communication Services and then
Service Providers (both at the top of the page). From there you will find a link on the left hand
side of the page called “Apply to become a Telecommunications Provider”.
Prior to any claim being paid from the fund, the service provider must have a Payee Data Record,
Form STD. 204, on file with the Commission (Attachment A). A completed STD. 204 is required
by all non-governmental agencies for any payments they are to receive. The form is kept on file
by the State agency who the service provider is working with. If a service provider is working
with multiple State agencies a form must be on file with each of them.
Instructions on how to complete the Payee Data record are also included in Attachment A.
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Step Two – Collect and Remit Surcharges
Once a service provider obtains certification or is registered they must collect and remit
surcharges to various agencies. In addition to city and county utility taxes, 911 surcharges, and
federal excise tax, California has several programs that service providers are responsible for
paying into. Currently, there are six (6) CPUC mandated telecommunications supporting various
public programs in California. The surcharge rates vary from program to program and they are
adjusted periodically based on the forecasted demand of the programs. Below is a summary of the
“6 Funds” that service providers pay into.
1. ULTS (Universal Lifeline Telephone Service)-This is the California Lifeline Program which
provides discounted home phone and wireless services to qualified households.
2. DDTP (Deaf and Disabled Telecommunications Program)-The program provides
telecommunication devices to deaf or hearing impaired consumers. The program has two
components – California Relay Service and the California Telephone Access Program.
3. CHCF-A (California High Cost Fund-A)-Provides funds to approximately 13 local exchange
companies who provide service to customers in rural areas at an affordable rate. The purpose
of the funds is to minimize the rate difference between rural and metropolitan areas.
4. CHCF-B (California High Cost Fund-B)-The purpose of the fund is to provide subsidies to
carriers of last resort (COLRs). These carriers provide service to residential customers in
high-cost areas.
5. CTF (California Teleconnect Fund)- The program provides a 50% discount on select
communication services to schools, libraries, hospitals, and other non-profit organizations.
6. CASF (California Advanced Services Funds) - The fund supports the deployment of highquality advanced communications services to customers in California. Funds collected are
allocated to four CASF accounts:
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•
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•
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Broadband Infrastructure Grant Account
Rural and Regional Urban Consortia Account
Broadband Infrastructure Loan Account
Broadband Public Housing Account
Step Three – CTF Eligible Services and Pricing
Services that are eligible for the CTF discount are as follows:
• Measured Business Service Lines
• Switched 56 Lines
•ISDN
• T-1, DS-3 up to and including OC-192 services
• Internet Access *
• Multi-Protocol Label Switching (MPLS) **
• Functional equivalents of the above mentioned services***
* The CTF uses the Universal Service Administrative Company’s E-Rate definition of Internet
Access, with certain exceptions. The CTF discount applies to both landline and wireless
modalities of Internet Access, including cellular data plans and laptop cards.
** MPLS is eligible when used in conjunction with another CTF-eligible service.
*** Prior to applying the discount, all functional equivalents must be approved by the CTF.
As an example, Voice Over Internet Protocol (VOIP) is eligible as a functional equivalent to
Measured Business Service Lines, and is a service that: (1) enables real-time, two-way voice
communications; (2) requires broadband connection from the user’s location; (3) requires IPcompatible customer premises equipment; and (4) permits users generally to receive calls that
originate on the public switched telephone network and to terminate calls to the public switched
network.
Providers that are regulated by the commission and who are required to file tariffs must list
pricing on the CTF-eligible services they provide showing the 50 percent discount on the monthly
recurring charges.
The CTF tariff requirements for all carriers that provide services on a detariffed basis or providers
that are not regulated by the Commission was eliminated in Decision 08-06-020. However, these
providers must submit the rate of the services on their claim form or an electronic link to the
website where this information can be found.
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Step Four – Submit Claim Form
Claims are processed on a Claim Form provided by the CPUC. The average process time for a
claim is 5-8 weeks and the first one can take even longer as the CPUC needs to set the provider
up in the system. The provider has one year and 45 days from the time of service to submit a
claim. The claim is usually submitted as an Excel File on a CD Rom along with a hard copy with
the claim form being signed by the appropriate contact. The file name should include the utility
name and number and the month and year. Some send on PDF and while it is scanned and
shows the signatures, they cannot extract numbers for analysis.
The Claim form (Attachment B) is submitted on a monthly basis to ensure timely receipt of
payment. Below is a summary of the components reported on the claim:
1.
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•
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Cover Letter – Lists the following:
Company Name
Total reimbursement requested broken out by customer type (i.e. school, library, etc.)
Customer name, title, and telephone number
2.
•
•
•
Claim Form
California assigned U number
Summary of reimbursement
More detailed contact information for Company
3. Customer Report
• Breakdown of every customer who you are requesting reimbursement for as well as the
amount you are requesting. This is based on the services you are providing that are eligible
for reimbursement. Customer must have a code associated with them which means they are
approved. List of customer codes can be found at http://www.cpuc.ca.gov/PUC/Telco/
Public+Programs/CTF/Eligibility.htm
4. Customer Report (Affiliate)
• Provides detail if the carrier who is requesting reimbursement provides the service with the
assistance of another carrier
5. Service Report
• Provides breakdown of all services provided to approved customers and portion of total
reimbursement requested. As an example – your total requested reimbursement is $1, 000.
On this tab you would list the services that make up the $1,000. If you are providing internet
services to 5 schools at $200 per school – you would list “Internet Access” as the service type
and $1,000 under the SCL category.
6. Service Report (Affiliate)
• Same exercise as Tab 5 but if you are using another carrier to provide it would be listed on
this tab.
7. Variance Report
• This tab is used to provide a month over month review and the opportunity to explain and
spikes (i.e. – over 10% increase because of new customers, etc.)
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8. Rate Report
• Provide a rate “range” of the type of services you are claiming for. Going back to the
example for Tab 5. Perhaps you are charging School 1 $125 for Internet Access, School 2 $200, and School 3 - $350, etc. – the Service rate listed for Internet Access would be $125$350
• Provide link to company website for pricing (this is needed when there is no tariff)
9. Rate Report (Affiliate)
• Same as all other affiliate reports – if you are using another carrier – what are their service
rates?
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Attachments
Attachment A – Payee Data Record – Form STD 204
Attachment B – Claim Form
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Attachment A
Payee Data Record - Form STD 204
(Form and Instructions)
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Attachment B
California Teleconnect Fund - Claim Form
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