CTS Long Distance Services April 22, 2014 Dan Davis

Agenda  Background  Objective  Milestones  User Impacts  Current Status

Background Long Distance Services  SCAN is a CTS owned and operated long distance service in operation for over 30 years.  Provides service to 86,000 subscribers  Over 350 locations  Diverse customer base: State agencies, Cities, Counties, Tribes  The long distance market has become increasingly competitive and it is no longer cost effective to operate our own long distance network.  Existing CTS long distance contract can be used to provide similar service at competitive market rates.

PROJECT OBJECTIVE Long Distance Services Convert SCAN long distance service to a commercial long distance provider by July 2014 Reduce long distance charges

Project Milestones Long Distance Conversion  Convert or Eliminate high cost circuits/services  Implement Expanded Free calling area on the Avaya PBX network – Estimated 80% of long distance is in State  Convert systems owned by non State agencies  Convert dedicated State agency owned systems (CTS, L&I, DOC, DSHS, DOT, ESD, DOR)  Convert Shared systems (CTS PBXs and Centrex offerings)

New Switched Long Distance (SLD) - User Impacts  What Changes  Dial Plan - Access Codes:  Avaya PBX network: digits + Auth number (if prompted – constant tone) PBX makes routing decision.  Century Link Centrex: digits + Auth number  Frontier Centrex (Free Domestic LD): digits  Reduced Rates:  Dedicated circuits: 3.5 cents per minute  Switched circuits/Centrex: 4.9 cents per minute  What doesn’t change  Authorization (SCAN) numbers: Numbers don’t change  International service - controlled by Auth numbers  Travelling Auth Numbers – no change  Billing Statements - Minimal change

Current Status  Completed  287 of 353 sites complete (81%)  Implemented expanded Free Calling Area on Avaya PBX Network – Currently includes 206, 253 & 425 Area Codes + Spokane, Vancouver, Olympia & Yakima.  In Process  Complete conversion of Avaya PBX network – May 8  70 Centrex offerings - 25 complete  70 LTS PBXs (serving 148 locations) – 49 complete  Scheduled Completion – May 30, 2014  Long Distance Charges reduced by $2.2 Million to date

Questions/Discussion