1. ITA FCC WORKSHOP MARCH 14, 2012

2. Appreciate being here, but... I’d rather be playing Guard for the New York Knicks 2

3. 3 ITA FCC WORKSHOP Indiana Lifeline Assistance Plan (ILAP) Indiana Universal Service Fund (IUSF) Indiana Access Tariffs Eligible Telecommunications Carrier (ETC) Certification Provider of Last Resort (PoLR)

4. FCC Lifeline Order From tiered support to interim flat-rate discount of $9.25 in April 2012 Eligibility 6/1/12: 135% of FPG or Federal Program: Medicaid, SNAP, SSI, Federal Public Housing Assistance, LIHEAP, NSL, TANF “One-per-Household” Rule Link Up support eliminated March 31, 2012 deadline to claim support Phase down and elimination of Toll Limitation Service (TLS) Support $3.00 from 4/1 through EOY. $2.00 in 2013. Eliminated in 2014. ETCs must re-certify Lifeline subscriber base as of June 1, 2012 by end of 2012 and report to USAC (FCC/IURC) by January 31, 2013. Re-certify - in person, writing, phone, text, email, or internet Annual Re-certification. After 2012, ETCs may have USAC administer. Certification signed by an officer and certify that ETC: (1) has procedures to confirm eligibility; (2) in compliance with certification procedures; and (3) obtained a valid certification form. 4

5. FCC Lifeline Order Shift USAC reimbursement from projected to actual counts beginning on July 1, 2012, completed by October 2012. File 497 by 8 th of month and receive disbursement same month Rolling 1-year deadline for claims (from 15 months). Within 6 months of Order effective date, ETC marketing material must make specific consumer disclosures for Lifeline-supported service. De-Enrollment: (1) Ineligibility; (2) Duplication; (3) Re-certification Allow Lifeline discounts for residential plans with voice telephony, including bundles with voice and broadband or optional features. Broadband pilot program: Up to $25 million to ETCs for 18 month pilot program to test impact on broadband adoption. USTA/ITTA/NTCA/OPASTCO/WTA/ERTA Petition for Waiver 5

6. Indiana Lifeline Assistance Plan (ILAP) ILAP Rulemaking RM#10-01 (LSA#10-478) per IC 8-1-36 Adds 170 IAC 7-8 Approval pending IURC Tariff No. T-7 6

7. Indiana Universal Service Fund (IUSF) No immediate effect resulting from the FCC Order: “states have established rate reduction transitions... nothing in this Order impacts such transitions. Nor does this Order prevent states from reducing rates on a faster transition provided that states provide any additional recovery...” Mirroring of intrastate access reaffirmed in Cause No. 42144 Order Benchmark Rates of $17.15 for R1 and $23.60 for B1 Cause No. 42144-S3 Triennial Review 7

8. Indiana Access Tariffs Cause No. 40785 Order: “we find that the existing mirroring policies of this Commission should continue in effect.” Cause No. 42144 Order: “Continuation of Mirroring.” IC § 8-1-2.6-1.5(c): “the commission shall consider the provider’s rates and charges for intrastate switched or special access service to be just and reasonable if the intrastate rates and charges mirror the provider’s interstate rates and charges for switched or special access service.” Concurrence in Communications Corporation of Indiana (CCI) tariff 8

9. Eligible Telecommunications Carrier (ETC) Certification Cause No. 42067 Annual certification by October 1 FCC postpones additional ETC reporting until April 1, 2013 Maintain status quo for 2012 ETC certifications ITA willing to work with Staff to develop future ETC reporting requirements. 9

10. Provider of Last Resort (PoLR) House Enrolled Act (HEA) 1112 Telecom Providers of Last Resort Upon IURC notice, PoLR relief to ILEC PoLR in any part of its service area with at least two CSPs offering voice telephony. After June 30, 2014, upon IURC notice, POLR relief for an ILEC in any part of its service area identified in its notice. Does not affect ILEC obligations under federal law. IURC may declare emergency in an area not served by any CSP offering voice service through any technology or medium. If IURC authorizes CSP to offer voice service, IURC shall permit CSP to offer voice service through any available technology or medium. 10

11. Questions and Comments Alan Matsumoto CenturyLink alan.i.matsumoto@CenturyLink.com (317) 531-0710 11