1. FCC Lifeline Broadband Pilot Program May 3, 2013 Kimberly Scardino Wireline Competition Bureau Federal Communications Commission

2. 2 Lifeline Broadband Pilot Program The Lifeline Broadband Pilot Program is the first step in transitioning the focus of the low-income fund to include broadband Goals of the Pilot Program (1)Test the impact of a range of differently designed projects to gather data to identify the most cost effective ways to help increase broadband adoption among low-income Americans. (2) Provide an opportunity for tens of thousand of low-income consumers not currently subscribed to broadband to receive broadband at affordable rates by USF funds for the Lifeline Broadband Pilot Program.

3. 3 Overview Using a competitive selection process, the Wireline Competition Bureau selected 14 of 24 applications received covering 21 states + Puerto Rico Selected projects are designed as field experiments to provide high quality data on how Lifeline can help increase broadband adoption Total funding is approx. $13.8 million over 18 months Selected projects will help deliver broadband to up to 74,000 low-income consumers who now lack service Diversity of Projects Selected Technological Diversity 7 wireline broadband projects 5 wireless broadband projects 2 projects offering both wireline/wireless technologies Geographic Diversity 7 projects will test discounted service in rural areas, including 2 on Tribal lands 7 projects will test discounted service in urban and suburban areas Overview of Selected Lifeline Broadband Pilot Projects

4. 4 Testing Range of Subsidy Amounts and Monthly End-User Charges Subsidy range from $5 per month to $39 per month (upper amount on Tribal lands) Testing a range of end-user charges within projects, such as $40, $35 $20 or $10 Every project includes an end-user charge Testing Range of Broadband Speeds and Usage Allowances Usage Allowances- For wireless broadband plans, projects range from 200 MB to 10 GB with speeds of at least 3G or 4G LTE Choices for Broadband Speeds - For wireline projects, applicants offer speeds ranging from 1.5 Mbps download/1 Mbps upload (on Tribal lands) to 100 Mbps download/5 Mbps upload Projects are testing a subsidy on a basic broadband service; also testing whether consumers purchase more speed or larger data plans by paying more out of pocket. Testing Other Important Variables Affecting Broadband Adoption Access to digital literacy training Access to equipment Overview of Selected Lifeline Broadband Pilot Projects (cont’d)

5. 5 18-month Lifeline Broadband Pilot Program is currently underway, which began February 1, 2013. Within most projects, carriers used the first three months to implement back-office functions before marketing their broadband service offerings. During the month of May 2013, all projects are scheduled to market their broadband offerings Interim Workshop will be scheduled for November 2013 when all new subscribers will be enrolled in the Lifeline Broadband Pilot Program Data from the Lifeline Broadband Pilot Projects Commission will make data from the projects public for the benefit of all interested parties, including those that want to use for their own studies and observations Commission will analyze the data from this pilot, along with data from other low-income broadband adoption programs across the country, to ensure full understanding of how Lifeline might help support broadband Examples of other programs include those funded by American Recovery and Reinvestment Act, Comcast Internet Essentials, Centurylink’s Internet Basics, and Connect-to-Compete Timeline for Lifeline Broadband Pilot Program