California LifeLine Program Update Low Income Oversight Board May 16, 2013

2 California LifeLine Program Update CA LifeLine Proceeding  All Party Meeting – January 2013  Scoping Memo Issued April 10, 2013 Opening Comments Due May 13 Reply Comments Due May 31  Public Participation Hearings Scheduled May 14 – Rancho Cordova May 15 – San Francisco June 12 – San Diego June 17 – Riverside June 18 – Los Angeles July 17 – Eureka (updated from July 16) July 31 – Fresno August 13 – Salinas

Summary of Basic Service Elements Provider must offer the ability to place and receive voice grade calls over all distances, including access to:  911/Enhanced 911.  Directory Assistance.  Optional white pages directory (or an electronic equivalent). Billing Provisions  The option for customers to purchase a flat-rate plan to receive unlimited incoming calls without a per-minute or per-call charge.  Carriers are required to offer a stand-alone CA LifeLine rate to qualified residential customers.  Customers must have an option to a monthly rate without a contract or early termination penalty.  Carriers must offer stand-alone basic services, without a requirement to purchase additional features/services. Although these options can be offered to the customer.  One-time free blocking for information services and one-time billing adjustments for charges incurred inadvertently, mistakenly, or without authorization. Toll Free Services  At least one basic service option that allows unlimited 800/8YY toll free calls.  The carrier must provide full disclosure of 800 number billing options. Access to Public Programs  Telephone Relay Services for deaf or hearing-impaired persons or individuals with speech difficulties.  Information on the CA LifeLine program. 3

Major Issues in the CA LifeLine Proceeding Service Elements for CA LifeLine:  Should they be changed?  Should they be different than the general Basic Service Elements?  Should they be different for wireless providers? What should be the requirements for wireless (and VoIP) participation in the CA LifeLine program  Will it result in state subsidy in addition to federal subsidy for wireless LifeLine plans?  These may include a minimum number of monthly minutes/texts to qualify. Should there be more rules governing:  Bundled service?  Connection charges?  Contract or early termination fees? 4

Major Issues in the CA LifeLine Proceeding (continued) Administrative changes, including:  Making the process more transparent for consumers, stakeholders, etc.  Should CA LifeLine continue to require applicants to pay retail rates until they qualify (pre-qualification)?  Should the Commission institute a “pre-registration” process whereby applicants can obtain pre-approval of CA LifeLine eligibility before they sign up of service with a carrier of their choice?  Is the program outreach sufficient and effective?  Should the customer rate cap be extended beyond June 30, 2013?  Should the carrier reimbursement process be re-evaluated? 5

6 Direct Application Process and Wireless Current statistics for the DAP program to date (4/24/13):  A total of 19,840 transaction. 15,490 were successful 4,350 errored (customer already existed, usually due to multiple submission attempts) Wireless Participation in LifeLine (4/20/13)  Cricket – 18,428 Approved, 4,604 Pending  Nexus – 76,076 Approved, 20,958 Pending  Telscape Wireless – 181 Approved, 25 Pending  Assurance (Virgin Mobile) – 557 Approved, 140 Pending

7 7 Contact Information Benjamin Schein – LifeLine Implementation (415) Michaela Pangilinan – LifeLine Outreach (415) RHA, Inc. (Outreach Contractor) – Vanessa Anderson (559) Consumer Affairs Branch (800) Xerox State and Local Solutions, Inc. (LifeLine Public Call Center) (866) – English(866) – Korean (866) – Spanish(866) – Vietnamese (866) – Lao/Hmong(866) – Chinese (866) – Khmer(866) – Japanese (866) – Tagalog