WEBVTT
00:00:01.380 --> 00:00:03.303
The feed for this streaming
event brought to you ...
00:00:03.303 --> 00:00:06.160
They could be given a
chance to speak by calling
00:00:06.160 --> 00:00:08.860
in or sending their input by email,
00:00:08.860 --> 00:00:10.910
I will provide more
instructions shortly.
00:00:11.850 --> 00:00:15.837
My name is Shonta Bryant
filling in for Llela Tan-Walsh who
00:00:15.837 --> 00:00:18.280
is the Program and Project Supervisor
00:00:18.280 --> 00:00:19.750
of the Communications Division Licensing
00:00:19.750 --> 00:00:24.710
and Compliance Program,
she will be your host for today.
00:00:24.710 --> 00:00:26.630
At this time, please allow me to go
00:00:26.630 --> 00:00:28.470
through some useful
information to get us
00:00:28.470 --> 00:00:29.420
through this event.
00:00:30.610 --> 00:00:32.680
The Commission is
hosting this public events
00:00:32.680 --> 00:00:34.260
to help address whether the transfer
00:00:34.260 --> 00:00:38.240
of control applications filed
by Frontier Communications
00:00:38.240 --> 00:00:41.850
and its California subsidiaries
is in the public interest
00:00:41.850 --> 00:00:45.310
and whether the approval
should be subject to conditions.
00:00:45.310 --> 00:00:48.640
The docket number for the
Frontier transfer application
00:00:48.640 --> 00:00:53.587
is application A.20-05-010.
00:00:55.340 --> 00:00:56.540
The assigned Commissioner
00:00:56.540 --> 00:00:58.990
is Commissioner Martha Guzman Aceves
00:00:58.990 --> 00:01:00.950
and the assigned
Administrative Law Judge
00:01:00.950 --> 00:01:03.023
is ALJ. Peter Rosinski.
00:01:04.270 --> 00:01:06.550
Some of the topics
discussed as today's workshop
00:01:06.550 --> 00:01:09.590
may cover issues related
to Commission proceedings
00:01:09.590 --> 00:01:14.590
other than this
proceedings, A.20-05-010.
00:01:14.650 --> 00:01:17.464
Please refrain from discussing
any Commission proceeding
00:01:17.464 --> 00:01:20.033
other than this proceeding
during this workshop.
00:01:25.570 --> 00:01:28.330
In today's agenda, after a welcome note
00:01:28.330 --> 00:01:30.980
from Commissioner Guzman
Aceves, we will proceed
00:01:30.980 --> 00:01:33.860
with a presentation from
Frontier Communications,
00:01:33.860 --> 00:01:35.200
followed by a presentation
00:01:35.200 --> 00:01:37.740
from communications division staff.
00:01:37.740 --> 00:01:40.040
There will be two panel
discussion sessions
00:01:40.040 --> 00:01:42.240
which will accommodate
time for public input
00:01:42.240 --> 00:01:43.823
via questions or comments.
00:01:47.670 --> 00:01:50.010
Public input during the
actual panel discussion
00:01:50.010 --> 00:01:51.520
can be made by sending an email
00:01:51.520 --> 00:01:56.520
so telco.events@cpuc.ca.gov,
00:01:57.280 --> 00:02:02.280
that t-e-l-c-o dot
e-v-e-n-t-s at cpuc.ca.gov.
00:02:08.650 --> 00:02:11.630
When it is time to go over
the panel Q&A session,
00:02:11.630 --> 00:02:14.100
the phone line will be open
to hear callers who wish
00:02:14.100 --> 00:02:18.700
to provide an input and I
will be back in the emails
00:02:18.700 --> 00:02:21.440
in the order, I'm sorry, I
will read back the emails
00:02:21.440 --> 00:02:23.113
in the order they were received.
00:02:24.050 --> 00:02:26.620
We will do our best to
get through all emails
00:02:26.620 --> 00:02:29.613
within the limited time we have.
00:02:32.830 --> 00:02:36.740
Only if you wish to provide
an input via phone please dial
00:02:36.740 --> 00:02:41.740
into 1-800-857-1917 and
interpass code 7218384
00:02:50.220 --> 00:02:51.773
and press star one.
00:02:52.680 --> 00:02:54.880
You will be placed into
a queue and the operator
00:02:54.880 --> 00:02:56.733
will take your name and organization.
00:02:57.590 --> 00:03:00.270
Due to the high call volume,
00:03:00.270 --> 00:03:01.470
there will be a slight delay
00:03:01.470 --> 00:03:04.610
from the time you
press star one to the time
00:03:04.610 --> 00:03:06.560
the operator asks for your information,
00:03:07.440 --> 00:03:10.020
please be patient and stay on the line.
00:03:10.020 --> 00:03:13.193
You will be called on upon
to speak when it is time.
00:03:15.700 --> 00:03:18.320
After the panel discussion
and a short break,
00:03:18.320 --> 00:03:19.920
we will hear inputs from parties
00:03:19.920 --> 00:03:24.920
of this proceeding including
Public Advocate's office, TURN,
00:03:25.030 --> 00:03:28.500
the Greenlining Institute, CWA,
00:03:28.500 --> 00:03:32.483
CforAT and Rural County of
Representatives of California.
00:03:33.500 --> 00:03:36.010
At or around 3:40 p.m,
00:03:36.010 --> 00:03:38.713
we will begin our public
comment period with ALJ.
00:03:39.583 --> 00:03:42.210
A court reporter will
transcribe participant comments
00:03:42.210 --> 00:03:47.210
and there are no more
comments to be made,
00:03:47.690 --> 00:03:49.313
we will conclude the workshop.
00:03:50.600 --> 00:03:54.400
The public participation
hearing will start at 5:30 p.m.
00:03:54.400 --> 00:03:56.880
The public is given an
opportunity to file comments
00:03:56.880 --> 00:03:59.010
on the application
and it will be transcribed
00:03:59.010 --> 00:04:00.073
by a court reporter.
00:04:05.260 --> 00:04:08.051
Finally, the public can
write written comments,
00:04:08.051 --> 00:04:10.920
public comments while
the proceeding is open.
00:04:10.920 --> 00:04:12.850
Visit the Commission website and search
00:04:12.850 --> 00:04:16.807
for docket number A.20-05-010.
00:04:19.640 --> 00:04:22.880
Use the add public comment
button on the public comment tab
00:04:22.880 --> 00:04:25.290
of the docket card for this proceeding.
00:04:25.290 --> 00:04:27.310
At this time, I would
like to turn your attention
00:04:27.310 --> 00:04:29.320
to Commissioner Martha Guzman Aceves
00:04:29.320 --> 00:04:30.520
for her welcome remarks.
00:04:32.400 --> 00:04:35.920
Thank you Ms. Bryant
and good morning everyone.
00:04:35.920 --> 00:04:38.630
Thank you very much
for being with us today
00:04:38.630 --> 00:04:42.640
for this very important
review of this application.
00:04:42.640 --> 00:04:45.170
I wanna especially
thank all the local leaders
00:04:45.170 --> 00:04:46.990
who have taken the time from I know
00:04:46.990 --> 00:04:51.720
they're very extremely
busy days and time during
00:04:51.720 --> 00:04:55.205
this state of the world
and nation and of course,
00:04:55.205 --> 00:04:58.623
most importantly,
locally here in California.
00:04:59.560 --> 00:05:02.600
This time pandemic of
course has caused a lot
00:05:02.600 --> 00:05:05.130
of human and economic suffering,
00:05:05.130 --> 00:05:09.640
exasperating many inequalities
and access to high quality,
00:05:09.640 --> 00:05:13.360
reliable and reasonably
priced communication service
00:05:13.360 --> 00:05:15.303
is one of those inequalities.
00:05:16.330 --> 00:05:20.500
And the importance of
recognizing that many
00:05:20.500 --> 00:05:24.380
of those served by Frontier
are unfortunately likely
00:05:24.380 --> 00:05:29.130
not able to participate
today so I wanna make sure
00:05:29.130 --> 00:05:31.270
to acknowledge that
the lack of connectivity
00:05:31.270 --> 00:05:35.620
by many communities is
still a barrier especially ironic
00:05:35.620 --> 00:05:37.120
in these types of proceedings.
00:05:38.500 --> 00:05:41.420
As you all know, our
communications division staff released
00:05:41.420 --> 00:05:46.220
a report on Frontier service
quality on September 17th
00:05:47.070 --> 00:05:50.200
which they're going to
present in a little while.
00:05:50.200 --> 00:05:53.200
I know also, that Frontier
has some disputes on the facts
00:05:53.200 --> 00:05:56.560
of that report and we will
obviously be taking a close look
00:05:56.560 --> 00:06:00.580
at those objections but
some things seem impossible
00:06:00.580 --> 00:06:01.413
to dispute.
00:06:02.440 --> 00:06:05.940
First, large portions of
Frontier service territory
00:06:05.940 --> 00:06:08.360
are in rural California.
00:06:08.360 --> 00:06:11.410
Large portions of those areas
00:06:11.410 --> 00:06:14.030
and across their service territory
00:06:14.030 --> 00:06:17.773
have medium household
income below $50,000 a year.
00:06:19.010 --> 00:06:23.530
Large portions of those rural
low-income areas and Frontier
00:06:23.530 --> 00:06:28.530
is the only provider of both
voice service and VoIP service.
00:06:30.490 --> 00:06:33.823
When a customer
reports a service outage,
00:06:33.823 --> 00:06:38.823
a General Order 133 requires
the carrier to repair 90%
00:06:39.200 --> 00:06:41.713
of those outages within 24 hours.
00:06:42.880 --> 00:06:46.870
Since 2014, there have
only been a few months
00:06:46.870 --> 00:06:48.983
when Frontier met that standard.
00:06:50.240 --> 00:06:52.170
I am very concerned that Frontier
00:06:52.170 --> 00:06:54.750
is not providing high quality,
00:06:54.750 --> 00:06:59.020
reliable and reasonably
priced service to many
00:06:59.020 --> 00:07:02.490
of its customers and that
many of those customers
00:07:02.490 --> 00:07:03.853
have no other option.
00:07:04.930 --> 00:07:07.230
In reviewing this application,
00:07:07.230 --> 00:07:11.490
California law requires us to
determine among other things,
00:07:11.490 --> 00:07:15.480
whether granting the
application will maintain
00:07:15.480 --> 00:07:17.883
or improve the quality of service.
00:07:19.140 --> 00:07:22.810
I'm also disappointed that
Frontier seems to be focusing
00:07:22.810 --> 00:07:26.090
on maintenance rather than improvement.
00:07:26.090 --> 00:07:29.010
For example, it writes that
the company will continue
00:07:29.010 --> 00:07:33.100
to provide the same services
at the same rate under
00:07:33.100 --> 00:07:35.310
the same territory terms and conditions
00:07:35.310 --> 00:07:38.570
as it does currently and elsewhere,
00:07:38.570 --> 00:07:42.210
that restructuring will be
for all practical purposes,
00:07:42.210 --> 00:07:44.880
imperceptible to customers.
00:07:44.880 --> 00:07:48.690
In the restructuring plan it
filed with the bankruptcy court
00:07:48.690 --> 00:07:51.230
though, Frontier seems to recognize
00:07:51.230 --> 00:07:53.561
that some of the service
needs to be better.
00:07:53.561 --> 00:07:57.310
It proposed to create
a virtual separation
00:07:57.310 --> 00:07:59.560
under the same ownership structure,
00:07:59.560 --> 00:08:03.490
a select state operations where
the reorganized debtors who
00:08:03.490 --> 00:08:08.490
will conduct fiber deployment
which they called Invesco
00:08:08.820 --> 00:08:11.490
from those state operations
where the reorganized debtor
00:08:11.490 --> 00:08:16.010
would perform broadband upgrades
and operational improvement
00:08:16.010 --> 00:08:17.757
which it called ImproveCo.
00:08:19.670 --> 00:08:24.400
I really do not want this
restructuring to be status quo
00:08:24.400 --> 00:08:27.648
for customers, I want
all Frontier customers
00:08:27.648 --> 00:08:31.270
in California to look
back at this application
00:08:31.270 --> 00:08:33.680
as a moment when they
started getting the service
00:08:33.680 --> 00:08:35.673
they deserve and are paying for.
00:08:36.550 --> 00:08:38.960
I'm deeply concerned
that Frontier intends
00:08:38.960 --> 00:08:42.830
to prioritize fiber
investments in Invesco
00:08:42.830 --> 00:08:44.920
in those parts of the service territory
00:08:44.920 --> 00:08:47.980
that are already highly profitable,
00:08:47.980 --> 00:08:50.920
the wealthier urban and
suburban areas that it serves
00:08:52.050 --> 00:08:55.890
and that Frontier intends
not to prioritize new fiber
00:08:55.890 --> 00:08:59.116
in ImproveCo in those
parts of service territory
00:08:59.116 --> 00:09:02.763
that are more expensive
and less profitable to serve.
00:09:04.010 --> 00:09:07.563
If that happens, the
digital divide will get wider.
00:09:09.230 --> 00:09:12.100
Fortunately, this application
can only be approved
00:09:12.100 --> 00:09:15.810
as a Commission can ensure
not just aspire to or hope
00:09:15.810 --> 00:09:19.840
for but ensure that a
reorganized Frontier provides
00:09:19.840 --> 00:09:23.093
the best service to everyone
in its service territory.
00:09:24.090 --> 00:09:25.500
I would like to know and hear
00:09:25.500 --> 00:09:27.160
from all of our local leadership
00:09:27.160 --> 00:09:29.750
and for those that aren't
here today from Kern County,
00:09:29.750 --> 00:09:32.950
Lassen, Riverside and
all the other counties
00:09:32.950 --> 00:09:33.783
that they serve.
00:09:34.960 --> 00:09:38.360
I wanna challenge everyone
in this meeting and discussion,
00:09:38.360 --> 00:09:42.190
Commission staff, Frontier,
intervenors, panelists,
00:09:42.190 --> 00:09:44.750
members of the
public to think creatively
00:09:44.750 --> 00:09:49.023
and constructively about how
we can do a better Frontier.
00:09:50.070 --> 00:09:53.080
I wanna emphasize that
this workshop is the start
00:09:53.080 --> 00:09:56.320
of a discussion, practically
speaking the way we're going
00:09:56.320 --> 00:09:59.530
to include segments by the
panelists and by the parties
00:09:59.530 --> 00:10:01.840
is do a workshop report
00:10:01.840 --> 00:10:05.190
which our communications
division staff to prepare
00:10:05.190 --> 00:10:08.390
and which we will be
taking party comments on.
00:10:08.390 --> 00:10:12.150
I look forward to this
event but just as importantly,
00:10:12.150 --> 00:10:14.900
I really look forward to
seeing everyone's comments
00:10:14.900 --> 00:10:16.223
on the workshop report.
00:10:17.110 --> 00:10:20.540
So with that, I wanna
thank you and look forward
00:10:20.540 --> 00:10:22.053
to this great discussion.
00:10:26.080 --> 00:10:28.446
Hi, this is Llela, can
everybody hear me now?
00:10:28.446 --> 00:10:30.010
And Ms. Bryant
before you transfer over
00:10:30.010 --> 00:10:32.280
to the first presentation,
00:10:32.280 --> 00:10:35.030
I did wanna see if any of
my fellow Commissioners,
00:10:35.030 --> 00:10:39.230
I see that Commissioner
Rechtschaffen and President Batjer
00:10:39.230 --> 00:10:41.060
and Commissioner Randolph are all
00:10:41.060 --> 00:10:44.810
on and if they had any remarks to make
00:10:44.810 --> 00:10:46.733
before I would open it to them.
00:10:49.620 --> 00:10:51.930
This is Commissioner
Randolph, I don't have any remarks,
00:10:51.930 --> 00:10:53.450
thank you very much for convening
00:10:53.450 --> 00:10:55.733
this workshop Commissioner,
Guzman Aceves.
00:10:58.380 --> 00:11:03.200
This is Commissioner
Rechtschaffen, nothing more except
00:11:03.200 --> 00:11:06.380
to underscore how important
what Commissioner Guzman Aceves
00:11:06.380 --> 00:11:09.890
just said that we're looking at ways
00:11:09.890 --> 00:11:12.210
that the application
will not just maintain
00:11:12.210 --> 00:11:15.010
for service quality but
improve service quality
00:11:15.010 --> 00:11:16.473
that needs to be the metric.
00:11:21.183 --> 00:11:22.016
Test.
00:11:23.473 --> 00:11:25.056
President Batjer.
00:11:31.083 --> 00:11:34.250
Okay, not seeing maybe
she's not on voice yet.
00:11:34.250 --> 00:11:36.450
Okay, Ms. Bryant or Llela if you're back
00:11:36.450 --> 00:11:40.920
on I think we're ready to move
to the Frontier presentation.
00:11:40.920 --> 00:11:42.820
Sounds good, thank
you Commissioner.
00:11:45.033 --> 00:11:47.170
We will go ahead and
move to the presentation
00:11:47.170 --> 00:11:49.593
for Frontier at this time.
00:11:55.910 --> 00:11:57.253
Allison you may begin.
00:11:58.930 --> 00:12:00.010
Sorry, I was on mute.
00:12:00.010 --> 00:12:05.010
I'm just trying to, it
took the presentation
00:12:05.130 --> 00:12:08.453
but I'm trying to, I don't
see how I can advance it.
00:12:10.994 --> 00:12:13.963
I'm not seeing the same
menu on the left hand side
00:12:13.963 --> 00:12:15.573
that you showed me before.
00:12:24.670 --> 00:12:25.503
Can you hear me?
00:12:26.950 --> 00:12:28.024
Yes, we can.
00:12:28.024 --> 00:12:30.794
Yes, we can.
00:12:30.794 --> 00:12:33.643
Rosvall, are you able to
advance the slides themselves?
00:12:34.520 --> 00:12:36.807
Joe Haga can you
advance the slides please?
00:12:41.640 --> 00:12:43.823
Just to the next page, please.
00:12:45.600 --> 00:12:48.150
So as we're doing that, I just
would like to say thank you
00:12:48.150 --> 00:12:50.210
to President Batjer and
the other Commissioners
00:12:50.210 --> 00:12:53.560
for allowing Frontier
the opportunity to present
00:12:53.560 --> 00:12:54.900
it today's event.
00:12:54.900 --> 00:12:58.240
I'm Allison Ellis SVP
of Regulatory Affairs
00:12:58.240 --> 00:12:59.820
on behalf of Frontier we
00:12:59.820 --> 00:13:03.070
also have Kevin Saville
our General Counsel,
00:13:03.070 --> 00:13:06.390
Patrick Rosvall our outside
counsel and Charlie Born who
00:13:06.390 --> 00:13:07.800
is our Director of Government
00:13:07.800 --> 00:13:10.203
and External Affairs here in California.
00:13:11.070 --> 00:13:13.840
Just to start the backdrop
of why we're here today
00:13:13.840 --> 00:13:16.500
as Commissioner Guzman Aceves said,
00:13:16.500 --> 00:13:21.290
Frontier was in a position
where we were facing significant
00:13:21.290 --> 00:13:24.700
and increasingly
unsustainable debt obligations
00:13:24.700 --> 00:13:28.250
that were threatening our future ability
00:13:28.250 --> 00:13:30.040
to provide services.
00:13:30.040 --> 00:13:32.040
We as a company filed
00:13:33.806 --> 00:13:36.730
a Chapter 11 bankruptcy
reorganization proceeding
00:13:36.730 --> 00:13:39.250
in order to address
those financial issues
00:13:39.250 --> 00:13:41.120
that we were having.
00:13:41.120 --> 00:13:43.770
Kevin Saville will talk
about those in more detail
00:13:43.770 --> 00:13:47.500
in a couple of slides but we
have asked the Commission
00:13:47.500 --> 00:13:49.990
to approve a corporate
restructure associated
00:13:49.990 --> 00:13:51.703
with that reorganization efforts.
00:13:53.460 --> 00:13:55.910
In terms of Frontiers
presence in California,
00:13:55.910 --> 00:13:57.800
so we operate three
00:13:57.800 --> 00:14:00.740
incumbent traditional
local exchange carriers,
00:14:00.740 --> 00:14:03.410
Frontier California,
Frontier Communications
00:14:03.410 --> 00:14:04.410
of the Southwest
00:14:04.410 --> 00:14:07.200
and Citizens
Telecommunication of California.
00:14:07.200 --> 00:14:10.120
We've actually been in
the state since the 1930s
00:14:10.120 --> 00:14:15.120
but we took a larger
role in the state in 2016
00:14:15.340 --> 00:14:20.340
when we acquired varieties
landline company there.
00:14:20.540 --> 00:14:22.230
As you can see from the map,
00:14:22.230 --> 00:14:25.540
we have a varied service
territory in California
00:14:25.540 --> 00:14:28.400
that spreads essentially
the entire state.
00:14:28.400 --> 00:14:32.580
We serve some of the most
rural and sparsely populated areas
00:14:32.580 --> 00:14:35.290
of the state as well as
some of the more urban
00:14:35.290 --> 00:14:37.500
and suburban densely
populated communities,
00:14:37.500 --> 00:14:40.270
particularly in the
southern part of the state.
00:14:40.270 --> 00:14:43.260
We have about 2800
employees in California
00:14:43.260 --> 00:14:45.810
and those employees are
supported by a workforce
00:14:45.810 --> 00:14:49.350
of an additional 14,000 people who
00:14:49.350 --> 00:14:52.950
are in our 25 state footprint.
00:14:52.950 --> 00:14:55.813
We offer voice, video
and broadband services.
00:14:56.770 --> 00:14:58.570
Joe, if you could advance it please.
00:15:00.620 --> 00:15:03.130
Although we are a traditional LEC we
00:15:03.130 --> 00:15:07.860
are not a dominant voice
provider in the state anymore.
00:15:07.860 --> 00:15:11.010
Wireless, cable and
Voice over IP providers
00:15:11.010 --> 00:15:13.710
have really captured the voice market,
00:15:13.710 --> 00:15:16.450
what we see in terms of
our subscribership trend
00:15:16.450 --> 00:15:18.480
in California is very consistent
00:15:18.480 --> 00:15:22.160
with what similarly
situated carriers have seen
00:15:22.160 --> 00:15:24.540
across the nation and we at Frontier
00:15:24.540 --> 00:15:27.453
have seen in the rest
of our 25 state footprints.
00:15:31.110 --> 00:15:34.480
Customers are increasingly
selecting wireless services
00:15:34.480 --> 00:15:36.810
and are cutting our cord entirely.
00:15:36.810 --> 00:15:41.140
As the CPUCs 2019 report
showed Frontier now serves
00:15:41.140 --> 00:15:44.980
only about 15% of the 5
million regulated voice lines
00:15:44.980 --> 00:15:48.270
in California and the CDC review
00:15:48.270 --> 00:15:51.433
of voice subscribership backs this up,
00:15:52.960 --> 00:15:57.960
in California only 3.3% of
consumers are wireline only.
00:15:59.000 --> 00:16:02.330
As I said, while we're
a traditional provider,
00:16:02.330 --> 00:16:03.690
we're not a dominant provider,
00:16:03.690 --> 00:16:06.340
we're also no longer
rate regulated in the way
00:16:06.340 --> 00:16:09.420
that income that
LECs traditionally we're,
00:16:09.420 --> 00:16:10.950
we're an earth carrier.
00:16:10.950 --> 00:16:12.220
What that means is that we
00:16:12.220 --> 00:16:15.040
are not guaranteed a recovery
on either our investments
00:16:15.040 --> 00:16:17.903
in the state or the
cost to provide service.
00:16:18.810 --> 00:16:22.960
Yet, we have continued to
focus investment in California
00:16:22.960 --> 00:16:26.270
and since our acquisition
of Verizon in 2016,
00:16:26.270 --> 00:16:29.533
had invested more than a
billion in Capex in the state.
00:16:31.430 --> 00:16:33.953
Joseph if you could please advance.
00:16:35.860 --> 00:16:39.710
We certainly appreciate
as a company that an area
00:16:39.710 --> 00:16:42.080
of substantial interest
and significant interest
00:16:42.080 --> 00:16:45.120
for state and local leaders,
regulators and consumers
00:16:45.120 --> 00:16:49.060
is the availability and
performance of broadband services,
00:16:49.060 --> 00:16:52.140
it is an area of focus
for Frontier as well.
00:16:52.140 --> 00:16:55.840
We have a number of
initiatives that have, you know,
00:16:55.840 --> 00:16:59.690
undertaken a significant
effort to expand
00:16:59.690 --> 00:17:03.040
and enhance broadband
services in California,
00:17:03.040 --> 00:17:08.040
most significantly is the
CAF II initiative where Frontier
00:17:08.130 --> 00:17:11.480
in collaboration with the FCC committed
00:17:11.480 --> 00:17:13.390
to build 10/1 megabit service
00:17:13.390 --> 00:17:17.650
to approximately 90,000
households in some most rural areas
00:17:17.650 --> 00:17:21.340
of the state which were
identified by the FCC.
00:17:21.340 --> 00:17:24.210
Our work to expand
that broadband is ongoing
00:17:24.210 --> 00:17:26.470
and must be completed
by the end of 2021.
00:17:27.930 --> 00:17:31.220
A key thing to note
about the CAF II initiative
00:17:31.220 --> 00:17:34.873
is that prior to our
acquisition of Verizon,
00:17:34.873 --> 00:17:38.640
Verizon was not willing to
accept the FCC obligations
00:17:38.640 --> 00:17:42.437
so by acquiring Verizon and
assuming those obligations
00:17:42.437 --> 00:17:47.230
and Frontier was able
to make the commitment
00:17:47.230 --> 00:17:51.120
to expand broadband
availability in California.
00:17:51.120 --> 00:17:53.910
As of August of 2020, we have completed
00:17:53.910 --> 00:17:57.100
about 74,000 CAF II locations,
00:17:57.100 --> 00:18:01.410
roughly 2400 of those
locations are in tribal areas,
00:18:01.410 --> 00:18:04.030
including the Yurok, Soboba, Morongo
00:18:04.030 --> 00:18:06.830
and Torres-Martinez reservations
00:18:06.830 --> 00:18:10.690
and many other rural
areas across the state.
00:18:10.690 --> 00:18:15.400
We also in connection with
the 2016 acquisition agreed
00:18:15.400 --> 00:18:20.400
to execute on a six year
plan that goes through 2022
00:18:20.670 --> 00:18:25.670
to expand broadband to an
additional 757,000 households,
00:18:26.190 --> 00:18:29.950
we are making significant progress
00:18:29.950 --> 00:18:32.300
on fulfilling that commitment.
00:18:32.300 --> 00:18:37.300
As of the year-end 2019 we
exceeded our annual 2015,
00:18:39.230 --> 00:18:42.850
excuse me, 25/3 megabit commitment
00:18:42.850 --> 00:18:46.380
of meeting 200,000
households by that date.
00:18:46.380 --> 00:18:49.100
There is more to come on the 25/3 front
00:18:49.100 --> 00:18:53.750
with 250,000 households
slated to be connected
00:18:53.750 --> 00:18:56.160
in the next two years.
00:18:56.160 --> 00:19:00.490
We've also performed
well on our 6/1 commitment,
00:19:00.490 --> 00:19:04.410
we actually met that
commitment two years early
00:19:04.410 --> 00:19:07.470
and we're on track with
our 10/1 commitments
00:19:07.470 --> 00:19:11.090
and expect to be completed
with our annual objectives
00:19:11.090 --> 00:19:12.820
by the end of this year.
00:19:12.820 --> 00:19:17.820
These investments and the
work here has expanded new
00:19:18.240 --> 00:19:23.020
and upgraded broadband to
more than 15,000 households
00:19:23.020 --> 00:19:25.730
in tribal areas,
including Agua Caliente,
00:19:25.730 --> 00:19:28.140
Bishop and the Big Pine reservations
00:19:28.140 --> 00:19:31.860
and also again a number of
additional rural communities
00:19:31.860 --> 00:19:36.860
across the state that were
not necessarily reached
00:19:36.870 --> 00:19:41.870
or identified through
the FCCs mechanism.
00:19:41.940 --> 00:19:45.410
The last component of
our broadband expansion
00:19:45.410 --> 00:19:47.820
is that Frontier has
been a big participant
00:19:47.820 --> 00:19:51.710
in the CASF the state's
CASF grant program,
00:19:51.710 --> 00:19:55.860
we have been awarded 13
grants to deploy broadband service
00:19:55.860 --> 00:20:00.860
to over 8600 households and we currently
00:20:00.910 --> 00:20:03.560
have 10 grant applications
00:20:03.560 --> 00:20:05.940
for Fiber-to-the-Premises grants pending
00:20:05.940 --> 00:20:07.150
with the Commission.
00:20:07.150 --> 00:20:10.420
If those are approved, an
additional 3000 households
00:20:10.420 --> 00:20:15.080
will be served with
fiber-to-the-premises facilities
00:20:15.080 --> 00:20:17.910
and it will also connect
many anchor institutions
00:20:17.910 --> 00:20:19.213
in rural areas.
00:20:20.270 --> 00:20:22.483
Next slide please, Joseph.
00:20:24.310 --> 00:20:27.020
We understand that
availability and expansion
00:20:27.020 --> 00:20:29.300
is only one part of the equation,
00:20:29.300 --> 00:20:32.650
however adoption is
another key component,
00:20:32.650 --> 00:20:36.740
Frontier support low-income
access to services,
00:20:36.740 --> 00:20:39.310
we participate in the Lifeline program,
00:20:39.310 --> 00:20:42.103
we offer to affordable broadband.
00:20:44.150 --> 00:20:45.800
Sorry, I'm getting some feedback.
00:20:47.630 --> 00:20:51.390
We offer to affordable
broadband offers and we
00:20:51.390 --> 00:20:52.330
have also partnered
00:20:52.330 --> 00:20:54.940
with the California
Emergency Technology Fund
00:20:54.940 --> 00:20:57.860
on affordable broadband
and adoption initiatives,
00:20:57.860 --> 00:21:01.427
including an initiative to
distribute 50,000 Chromebooks
00:21:01.427 --> 00:21:05.030
to low-income consumers.
00:21:05.030 --> 00:21:08.560
And most recently, we were
very proud of a joint effort
00:21:08.560 --> 00:21:11.730
that we undertook with CETF in response
00:21:11.730 --> 00:21:16.730
to the COVID-19 pandemic,
we work to identify schoolchildren
00:21:17.230 --> 00:21:18.730
in high need school districts
00:21:18.730 --> 00:21:22.380
and have prioritized
distribution of 5000 Chromebooks
00:21:22.380 --> 00:21:23.690
to those students.
00:21:23.690 --> 00:21:26.940
We actually have an
event next week scheduled
00:21:26.940 --> 00:21:31.570
to distribute Chromebooks
to tribal schoolchildren
00:21:31.570 --> 00:21:34.640
so we've worked very hard to try
00:21:34.640 --> 00:21:37.190
to help address some
of the connectivity issues
00:21:37.190 --> 00:21:39.600
that schoolchildren in particular
00:21:39.600 --> 00:21:42.633
have been having as a
result of the pandemic.
00:21:43.570 --> 00:21:48.570
We are also continuing
to focus on and look
00:21:48.620 --> 00:21:51.120
to improve our voice service quality,
00:21:51.120 --> 00:21:55.820
we have met some of
the metrics the 24-hour out
00:21:55.820 --> 00:22:00.820
of service restoral metric
continues to be a challenge,
00:22:00.930 --> 00:22:05.613
however we have consistent
with the CPUCs rules,
00:22:06.870 --> 00:22:09.830
invested it twice the
amount of applicable fines
00:22:09.830 --> 00:22:11.260
for not meeting that metric
00:22:11.260 --> 00:22:15.680
in service quality targeted projects
00:22:15.680 --> 00:22:18.750
and improvement efforts.
00:22:18.750 --> 00:22:22.120
We're on track assuming
that the Commission approves
00:22:22.120 --> 00:22:26.480
our 2019 project proposal
to spend 6.8 million
00:22:26.480 --> 00:22:29.539
in targeted investment
on service quality.
00:22:29.539 --> 00:22:32.510
These projects have all been
reviewed by the Commission
00:22:32.510 --> 00:22:34.940
and approved by the
Commission and, you know,
00:22:34.940 --> 00:22:39.290
are a step that we're taking to ensure
00:22:39.290 --> 00:22:42.550
that we can address some
of the voice quality issues
00:22:42.550 --> 00:22:44.990
that we have had and
some of our, you know,
00:22:44.990 --> 00:22:47.863
more difficult to serve
areas of our footprint.
00:22:48.720 --> 00:22:52.200
And Joe if you could
turn it to the next slide,
00:22:52.200 --> 00:22:56.150
I'd like turn the presentation
over to Kevin Seville who
00:22:56.150 --> 00:22:58.053
can address the next few slides.
00:23:00.240 --> 00:23:03.130
Thank you all Allison and
my name is Kevin Saville,
00:23:03.130 --> 00:23:06.410
I am the General Counsel
at Frontier Communications
00:23:06.410 --> 00:23:08.720
And as Ms. Ellis indicated, you know,
00:23:08.720 --> 00:23:11.640
we do appreciate the opportunity to make
00:23:11.640 --> 00:23:14.390
this presentation to the Commission.
00:23:14.390 --> 00:23:16.470
Ms. Ellis as you know focused on some
00:23:16.470 --> 00:23:19.810
of the California specifics
in terms of our operations
00:23:19.810 --> 00:23:21.770
in the state, I wanna just, you know,
00:23:21.770 --> 00:23:25.940
take it to the Frontier
Communications corporate level
00:23:25.940 --> 00:23:28.630
and provide some additional background.
00:23:28.630 --> 00:23:32.560
So Frontier Communications
with its operating subsidiaries
00:23:32.560 --> 00:23:35.960
is a telecommunications
company providing telephone,
00:23:35.960 --> 00:23:37.870
internet and video services
00:23:37.870 --> 00:23:41.570
in 25 states including California.
00:23:41.570 --> 00:23:44.070
In 2019, the company had revenue
00:23:44.070 --> 00:23:49.070
of approximately $8.1 billion
but we experienced a loss
00:23:49.710 --> 00:23:53.113
of approximately $5.99 billion.
00:23:54.370 --> 00:23:58.340
Frontier also had significant
debt which amounted
00:23:58.340 --> 00:24:03.340
to approximately $17.5 billion
of outstanding funded debt
00:24:03.910 --> 00:24:07.030
and the company was
paying annual interest expense
00:24:07.030 --> 00:24:10.533
of approximately $1.5 billion per year.
00:24:11.520 --> 00:24:15.277
To address these
unsustainable levels of debt
00:24:15.277 --> 00:24:18.360
and to better positioned
Frontier to meet
00:24:18.360 --> 00:24:21.150
its customer needs and
to compete, you know,
00:24:21.150 --> 00:24:24.610
in a changing telecommunications
marketplace, you know,
00:24:24.610 --> 00:24:29.000
Frontier proactively
engaged in a effort to negotiate
00:24:29.000 --> 00:24:32.280
a restructuring of its
debt with his creditors.
00:24:32.280 --> 00:24:35.440
These discussions
culminated in an agreed
00:24:35.440 --> 00:24:38.670
upon restructuring
plan that had the support
00:24:38.670 --> 00:24:43.440
of more than 75% of its
unsecured note holders.
00:24:43.440 --> 00:24:46.920
And turning to Page
Six of the presentations,
00:24:46.920 --> 00:24:49.630
you know, the first bullet point there,
00:24:49.630 --> 00:24:52.440
with that agreed upon restructuring plan
00:24:52.440 --> 00:24:56.230
with the bondholders
Frontier did file for Chapter 11
00:24:56.230 --> 00:25:00.000
on April 14 with the United
States Bankruptcy Court
00:25:00.000 --> 00:25:02.720
in the Southern District of New York.
00:25:02.720 --> 00:25:06.340
The Chapter 11 bankruptcy
filing enables Frontier
00:25:06.340 --> 00:25:10.680
to restructure that
$17.5 billion of debt
00:25:10.680 --> 00:25:13.823
and reduce it to
approximately $6.5 billion.
00:25:15.390 --> 00:25:18.100
With that restructuring,
the senior note holders
00:25:18.100 --> 00:25:20.703
will become the new
shareholders of the company.
00:25:22.040 --> 00:25:24.380
On May 22, we filed an application
00:25:24.380 --> 00:25:28.460
with the Commission asking
that the organizational change
00:25:28.460 --> 00:25:31.240
be approved, the fundamental change
00:25:31.240 --> 00:25:32.620
that is before the Commission
00:25:32.620 --> 00:25:35.991
is replacing our existing shareholders
00:25:35.991 --> 00:25:40.694
with a new widely held
diverse group of shareholders
00:25:40.694 --> 00:25:43.887
and the expectation is that
when we emerge from Chapter 11,
00:25:43.887 --> 00:25:46.283
the company will be publicly traded.
00:25:47.350 --> 00:25:49.640
On August 21st of this year,
00:25:49.640 --> 00:25:54.640
the Bankruptcy Court after
soliciting votes approved
00:25:55.080 --> 00:25:58.760
the plan of reorganization
and one of the key components
00:25:58.760 --> 00:26:01.690
of this plan of reorganization is that,
00:26:01.690 --> 00:26:02.523
with the exception
00:26:02.523 --> 00:26:05.920
of the unsecured note
holders all other creditors
00:26:05.920 --> 00:26:09.270
and third parties engaged in business
00:26:09.270 --> 00:26:12.621
with Frontier have their
claims on impairment.
00:26:12.621 --> 00:26:14.980
What that means is
that effectively, you know,
00:26:14.980 --> 00:26:17.730
all of our collective bargaining
agreements with unions,
00:26:17.730 --> 00:26:19.283
all of our contracts with our vendors,
00:26:19.283 --> 00:26:21.276
all of our third party, you know,
00:26:21.276 --> 00:26:24.060
stakeholders will be
made whole following
00:26:24.060 --> 00:26:25.883
the emergence from the Chapter 11.
00:26:28.380 --> 00:26:31.670
We will emerge from
Chapter 11 after we secure
00:26:31.670 --> 00:26:34.130
the necessary regulatory approvals,
00:26:34.130 --> 00:26:36.923
we're hoping to do that in early 2021.
00:26:38.130 --> 00:26:42.090
The reason for that is the
longer we stay in Chapter 11,
00:26:42.090 --> 00:26:45.560
the more administrative
and legal costs we incur
00:26:45.560 --> 00:26:47.313
in the bankruptcy process and you know,
00:26:47.313 --> 00:26:50.600
the more exposed we
are as a company in terms
00:26:50.600 --> 00:26:54.720
of competitors taking our customers.
00:26:54.720 --> 00:26:57.470
So if I could get you please
to turn to the next slide.
00:26:59.150 --> 00:27:03.030
The benefits of the restructuring
00:27:03.030 --> 00:27:07.057
are that the reorganized
Frontier will be a stronger,
00:27:07.057 --> 00:27:09.560
better capitalized company.
00:27:09.560 --> 00:27:13.570
It allows Frontier to
remain viable and continue
00:27:13.570 --> 00:27:15.680
to offer telecommunications services
00:27:15.680 --> 00:27:19.461
as an alternative option
to California consumers.
00:27:19.461 --> 00:27:22.050
It will also enable the
company to be positioned
00:27:22.050 --> 00:27:25.000
to better respond to the dynamic
00:27:25.000 --> 00:27:30.000
and unanticipated economic
events such as COVID-19 changes
00:27:31.810 --> 00:27:33.867
in the economy and certainly changes
00:27:33.867 --> 00:27:38.403
in a very dynamic competitive
landscape in California.
00:27:39.400 --> 00:27:41.660
As I mentioned, the
restructuring is positive
00:27:41.660 --> 00:27:45.310
for California stakeholders
in that California
00:27:45.310 --> 00:27:49.470
is a very important state
to Frontier and having shed,
00:27:49.470 --> 00:27:51.740
you know, $1 billion a year in interest
00:27:51.740 --> 00:27:53.580
and reducing our debt overall,
00:27:53.580 --> 00:27:56.950
will enable us to have a
stronger financial focus
00:27:56.950 --> 00:27:58.590
in California.
00:27:58.590 --> 00:28:01.480
And then as I mentioned,
all of the existing contracts
00:28:01.480 --> 00:28:03.570
and arrangements we
have in place, you know,
00:28:03.570 --> 00:28:08.220
will be unimpacted by the
Chapter 11 and, you know,
00:28:08.220 --> 00:28:10.360
our operating subsidiaries will continue
00:28:10.360 --> 00:28:11.960
to operate in accordance
00:28:11.960 --> 00:28:15.190
with their existing regulatory
authorizations issued
00:28:15.190 --> 00:28:16.143
by the Commission.
00:28:17.660 --> 00:28:20.560
Conversely, denying
or delaying the position,
00:28:20.560 --> 00:28:23.470
you know, will
significantly hurt Frontier
00:28:23.470 --> 00:28:27.160
and the public interest
because with the status quo
00:28:27.160 --> 00:28:30.270
as I indicated, the company
has unsustainable levels
00:28:30.270 --> 00:28:33.640
of debt and insufficient
capital resources
00:28:33.640 --> 00:28:37.430
to be able to continue
to fulfill its obligations
00:28:38.340 --> 00:28:41.350
to its customers and to the to the state
00:28:41.350 --> 00:28:46.350
and to really effectively
respond to competitive issues.
00:28:46.761 --> 00:28:49.410
If our application is denied or delayed,
00:28:49.410 --> 00:28:51.830
it would potentially
mean less competition
00:28:51.830 --> 00:28:55.150
within the California
telecommunication marketplace,
00:28:55.150 --> 00:28:59.260
including us providing voice
service as an alternative.
00:28:59.260 --> 00:29:02.120
It will also, you know,
impede our ability to work
00:29:02.120 --> 00:29:04.280
and focus on improving
voice service quality
00:29:04.280 --> 00:29:07.230
which we know is an important
issue for the Commission
00:29:07.230 --> 00:29:10.870
and it will in fact impede our ability
00:29:10.870 --> 00:29:13.100
to fulfill our build out requirements
00:29:13.100 --> 00:29:14.433
with respect to broadband.
00:29:15.890 --> 00:29:20.263
So let me turn to Mr. Rosvall
to cover the last slide.
00:29:24.870 --> 00:29:27.362
Thank you Kevin and
hopefully everyone can hear me
00:29:27.362 --> 00:29:28.823
on the phone here.
00:29:29.890 --> 00:29:32.709
So good morning Commissioners,
00:29:32.709 --> 00:29:35.730
I miss seeing you all in
person but I really do appreciate
00:29:35.730 --> 00:29:37.900
the opportunity to present today
00:29:37.900 --> 00:29:41.380
and provide these opening remarks.
00:29:41.380 --> 00:29:44.670
My my role here is
to provide an overview
00:29:44.670 --> 00:29:47.440
of the statutory
standards and give a sense
00:29:47.440 --> 00:29:50.110
for how Frontier has
applied those standards
00:29:50.110 --> 00:29:54.350
in its application and so as you know,
00:29:54.350 --> 00:29:56.150
what triggers the application here
00:29:56.150 --> 00:29:59.620
isn't the bankruptcy itself
and isn't the restructuring,
00:29:59.620 --> 00:30:02.370
it's the transfer of
control that's involved
00:30:02.370 --> 00:30:06.710
at the parent company level
which involves a substitution
00:30:06.710 --> 00:30:10.920
for the current ownership
for a new set of owners
00:30:10.920 --> 00:30:13.660
which will be similarly
situated to the current ones
00:30:13.660 --> 00:30:15.469
in the sense that they
00:30:15.469 --> 00:30:18.150
will be widely dispersed owners likely
00:30:18.150 --> 00:30:22.490
to be publicly traded just like today.
00:30:22.490 --> 00:30:25.340
But nevertheless, that
that event which is linked
00:30:25.340 --> 00:30:28.290
to the restructuring does
trigger the requirements
00:30:28.290 --> 00:30:31.050
with Public Utilities Code 854
00:30:31.050 --> 00:30:33.910
and so that's the primary
statute, as you know,
00:30:33.910 --> 00:30:35.913
that governs transfers of control.
00:30:37.480 --> 00:30:39.980
Frontier also filed under Section 853
00:30:39.980 --> 00:30:44.250
which permits the Commission
to limit some of the aspects
00:30:44.250 --> 00:30:47.370
of Section 854 where
they aren't applicable
00:30:47.370 --> 00:30:50.020
or aren't appropriate for
that particular transaction
00:30:51.124 --> 00:30:52.457
and indeed, the Commission did
00:30:52.457 --> 00:30:55.670
that here with the scoping
memo excluded a few
00:30:55.670 --> 00:30:59.090
of the subsections of Section 854.
00:30:59.090 --> 00:31:03.720
From the analysis,
notably Section 854(b)(2)
00:31:03.720 --> 00:31:06.900
which is sort of a relic of
rate of return regulation,
00:31:06.900 --> 00:31:11.260
a concept that if the cost
structure of a company changes
00:31:11.260 --> 00:31:14.930
by virtue of typically a
merger or acquisition,
00:31:14.930 --> 00:31:17.870
that there has to be more
of the numerical analysis
00:31:17.870 --> 00:31:20.690
of how to allocate those benefits.
00:31:20.690 --> 00:31:23.000
In this case, we're dealing
with a parent company,
00:31:23.000 --> 00:31:25.790
a company that's in
a deregulatory status
00:31:25.790 --> 00:31:27.383
and so that standard doesn't apply
00:31:27.383 --> 00:31:29.710
and the Commission did
find that in the scoping memo
00:31:29.710 --> 00:31:32.410
and then there are a
couple of other aspects
00:31:32.410 --> 00:31:35.070
that were excluded from a 854.
00:31:35.070 --> 00:31:37.660
And the remaining 854
factors, as you know,
00:31:37.660 --> 00:31:41.900
pertain to issues that
analyze the effects
00:31:41.900 --> 00:31:45.444
of the restructuring and
the transfer of control
00:31:45.444 --> 00:31:50.444
on various aspects
of Frontiers operations,
00:31:50.810 --> 00:31:53.590
the considered unifying concept, though,
00:31:53.590 --> 00:31:57.210
is that all those factors
should relate to the effects
00:31:57.210 --> 00:32:00.690
of the restructuring effect
with the transfer of control.
00:32:00.690 --> 00:32:04.830
And so I guess in light of
that overview of the statute,
00:32:04.830 --> 00:32:07.480
there's a few I think key
points that distinguish
00:32:07.480 --> 00:32:10.070
this matter from probably most matters
00:32:10.070 --> 00:32:12.990
the Commission addresses under 854.
00:32:12.990 --> 00:32:16.100
The first one is just
in the narrow focus
00:32:16.100 --> 00:32:18.950
of the transaction at
issue which is to say
00:32:18.950 --> 00:32:23.050
that we're not talking about
approving the reasonableness
00:32:23.050 --> 00:32:24.600
of the bankruptcy
itself, that's a matter
00:32:24.600 --> 00:32:26.220
for the bankruptcy court.
00:32:26.220 --> 00:32:31.220
We're also not talking
about the effects beyond
00:32:32.370 --> 00:32:35.960
the restructuring, we're just focused
00:32:35.960 --> 00:32:37.960
on there's a transfer of control
00:32:37.960 --> 00:32:39.930
that will effectuate a restructuring
00:32:39.930 --> 00:32:42.380
which has in our mind
pretty clear benefits
00:32:42.380 --> 00:32:45.840
to Frontier into the
State of California.
00:32:45.840 --> 00:32:49.330
And so it's not a situation
where you have a merger
00:32:49.330 --> 00:32:51.990
or acquisition where
you can sort of compare
00:32:51.990 --> 00:32:54.070
the pro forma entity that would come out
00:32:54.070 --> 00:32:58.010
of this existing entity and
ask yourself the question,
00:32:58.010 --> 00:33:00.860
which one is a preferred outcome.
00:33:00.860 --> 00:33:03.840
In this situation, Frontier
has an opportunity
00:33:03.840 --> 00:33:06.720
to shed a level of debt
00:33:06.720 --> 00:33:10.700
that would be crippling going
forward so it's very difficult
00:33:10.700 --> 00:33:13.110
to argue in our view that Frontier
00:33:13.110 --> 00:33:15.410
would be better off
continuing down that path
00:33:15.410 --> 00:33:18.550
and we think that the
facts are pretty clear,
00:33:18.550 --> 00:33:20.020
not just here but throughout the country
00:33:20.020 --> 00:33:22.350
that Frontier will be
far better off if it's able
00:33:22.350 --> 00:33:25.703
to avail itself of this and
we'd be very concerned as,
00:33:26.544 --> 00:33:28.610
you know, we wind
up in a situation where
00:33:28.610 --> 00:33:31.200
that deleveraging does not occur,
00:33:31.200 --> 00:33:32.670
I think it would not be a pretty picture
00:33:32.670 --> 00:33:34.570
for Frontier down the road.
00:33:34.570 --> 00:33:35.460
The second thing
00:33:35.460 --> 00:33:38.810
that's just a complicating
factor procedurally
00:33:38.810 --> 00:33:41.350
but which simplifies
things to some degree
00:33:41.350 --> 00:33:44.490
is just the presence of the bankruptcy
00:33:44.490 --> 00:33:46.320
and the bankruptcy court weighing
00:33:46.320 --> 00:33:48.530
in on the merits of the plan.
00:33:48.530 --> 00:33:51.340
So that's something that's been approved
00:33:51.340 --> 00:33:55.060
that's not a layer that
typically exists in a merger
00:33:55.060 --> 00:33:56.320
and acquisition situation
00:33:56.320 --> 00:34:01.320
which is the typical
854 application structure
00:34:02.930 --> 00:34:07.130
so in this case, we're
now sitting here a month
00:34:07.130 --> 00:34:11.010
or more separated from
the approval of the plan
00:34:11.010 --> 00:34:13.930
which the bankruptcy court
has already determined,
00:34:13.930 --> 00:34:15.980
balanced the interests
of the stakeholders
00:34:15.980 --> 00:34:18.380
that are affected by the plan itself.
00:34:18.380 --> 00:34:20.477
And then the third
thing which Kevin hit on
00:34:20.477 --> 00:34:22.340
and I think just can't be lost here
00:34:22.340 --> 00:34:25.660
is that there are 25
states involved here
00:34:25.660 --> 00:34:26.937
and there are significant benefits
00:34:26.937 --> 00:34:31.937
that will occur if this is
approved and approved quickly
00:34:32.010 --> 00:34:35.040
and so we appreciate very
much the Commission setting
00:34:35.040 --> 00:34:37.760
a schedule that would
allow that to occur
00:34:37.760 --> 00:34:41.372
and holding events like
this and indeed potentially,
00:34:41.372 --> 00:34:45.180
the evidentiary hearings
in a few weeks at a time
00:34:45.180 --> 00:34:47.880
that would allow for timely resolution
00:34:47.880 --> 00:34:50.770
of this matter because the benefits
00:34:50.770 --> 00:34:53.460
are contingent nationwide on getting all
00:34:53.460 --> 00:34:55.740
of the approvals necessary.
00:34:55.740 --> 00:34:58.380
So that's why I wanted to highlight
00:34:58.380 --> 00:35:01.490
some of the unique features
of this particular situation
00:35:01.490 --> 00:35:02.323
that might be different
00:35:02.323 --> 00:35:07.080
than some of your typical
854 situation and I think
00:35:07.080 --> 00:35:09.690
with that we've come to
the end of our presentation
00:35:09.690 --> 00:35:12.850
and we just look forward to
doing some good listening today
00:35:13.840 --> 00:35:17.540
and all of us will be
available for questions
00:35:17.540 --> 00:35:20.730
should that be appropriate
and we'll be here throughout
00:35:20.730 --> 00:35:24.610
the day and into the night
to listen to the feedback.
00:35:24.610 --> 00:35:26.490
Thank you Commissioners.
00:35:26.490 --> 00:35:29.500
Thank you Frontier
for the presentation.
00:35:29.500 --> 00:35:32.080
Commissioner, do you have any questions
00:35:32.080 --> 00:35:35.693
or does the President
would like to say anything?
00:35:38.820 --> 00:35:41.250
Yes, President Batjer
if you had like any,
00:35:41.250 --> 00:35:45.410
I know your sound was
off earlier but it'll just open
00:35:45.410 --> 00:35:47.370
to you now if you'd like.
00:35:47.370 --> 00:35:50.220
Thank you very much
Commissioner Guzman Aceves.
00:35:50.220 --> 00:35:52.670
I don't really have
any questions at all,
00:35:52.670 --> 00:35:54.963
sorry to be late to this forum,
00:35:56.120 --> 00:36:01.120
very helpful presentation
from Frontier so I thank you.
00:36:01.140 --> 00:36:03.840
I think that time is better spent
00:36:03.840 --> 00:36:05.617
with our panelists so thank you.
00:36:08.960 --> 00:36:10.370
Do any of my
fellow Commissioners
00:36:10.370 --> 00:36:12.023
have any follow up questions?
00:36:14.860 --> 00:36:15.773
No, I don't.
00:36:16.790 --> 00:36:19.150
Okay Llela.
00:36:19.150 --> 00:36:20.760
Great, with that
we will now move
00:36:20.760 --> 00:36:23.690
to communication staff presentation led
00:36:23.690 --> 00:36:25.260
by Michaela Pangilinan and Michaela
00:36:25.260 --> 00:36:26.637
is a Senior Regulatory Analyst
00:36:26.637 --> 00:36:28.943
in the Communications Division.
00:36:29.860 --> 00:36:31.613
Michaela, you may start.
00:36:34.020 --> 00:36:37.170
Thanks everybody, good morning.
00:36:37.170 --> 00:36:41.413
Waiting on the slides to
pop up under on the WebEx.
00:36:56.490 --> 00:36:59.490
Please stand by while we
navigate to the slide, thank you.
00:37:36.330 --> 00:37:39.100
Please stand by and we're
gonna splash up the slides
00:37:39.100 --> 00:37:40.200
in just a second here.
00:37:46.250 --> 00:37:49.350
Okay great, it
looks like it's up.
00:37:49.350 --> 00:37:52.900
So can you go back to the
first slide, the previous slide?
00:37:52.900 --> 00:37:55.970
Yes okay, great, thanks.
00:37:55.970 --> 00:38:00.430
So we'll start first with a
quick discussion about Frontier
00:38:01.847 --> 00:38:06.847
the company using a simple
map developed by our GIS team.
00:38:11.490 --> 00:38:16.490
The maps are for illustrative
purposes and not to scale.
00:38:17.250 --> 00:38:18.313
Next slide Joe.
00:38:20.370 --> 00:38:22.633
Just to make sure everybody understands.
00:38:23.800 --> 00:38:25.033
Okay, next slide.
00:38:27.910 --> 00:38:31.880
So here we're showing a
map of the various carriers
00:38:32.750 --> 00:38:37.431
of last resort in California,
one of which is Frontier.
00:38:37.431 --> 00:38:40.440
In 1995, the California
Public Utilities Commission
00:38:40.440 --> 00:38:44.120
granted Frontier the
authority to operate as a carrier
00:38:44.120 --> 00:38:49.070
of last resort and as an
incumbent local exchange carrier.
00:38:49.070 --> 00:38:52.450
So as a carrier of last
resort, Frontier must provide
00:38:52.450 --> 00:38:55.763
the ultimate on
non-discriminatory basis.
00:38:57.630 --> 00:39:00.833
After Frontier acquired
Verizon's assets in 2016,
00:39:02.600 --> 00:39:05.770
Frontier expanded its service footprint
00:39:05.770 --> 00:39:10.770
which now covers 44 California counties.
00:39:11.990 --> 00:39:12.893
Next slide.
00:39:20.470 --> 00:39:21.910
Frontier service territory
00:39:21.910 --> 00:39:25.470
also includes federally
recognized tribal lands
00:39:25.470 --> 00:39:28.187
in 22 counties in California
00:39:28.187 --> 00:39:33.187
and about 21,100 households
reside in these lands
00:39:33.570 --> 00:39:36.103
within Frontiers service territory.
00:39:37.010 --> 00:39:37.843
Next slide.
00:39:42.742 --> 00:39:45.380
Frontier also acquired
the video franchise
00:39:45.380 --> 00:39:47.713
that Verizon previously held.
00:39:48.570 --> 00:39:53.480
The video franchise encompasses
five California counties
00:39:53.480 --> 00:39:56.440
which are Ventura, Los Angeles, Orange,
00:39:56.440 --> 00:39:58.713
Riverside and San Bernardino.
00:40:00.200 --> 00:40:01.740
Representing the same location
00:40:01.740 --> 00:40:05.800
is where Verizon built its Fios network.
00:40:05.800 --> 00:40:09.536
These same counties also
represent the largest concentration
00:40:09.536 --> 00:40:11.820
of Frontier subscribers
00:40:11.820 --> 00:40:15.323
for fixed broadband
Internet access services.
00:40:16.300 --> 00:40:17.133
Next slide.
00:40:23.820 --> 00:40:27.497
For this map, I wanted
to show that Frontier offers
00:40:27.497 --> 00:40:31.610
a higher advertised downstream speeds
00:40:31.610 --> 00:40:34.780
of at least 100 megabits per second
00:40:34.780 --> 00:40:39.030
for fixed broadband
internet access services in,
00:40:39.030 --> 00:40:42.924
looks like, Southern
California and also in pockets
00:40:42.924 --> 00:40:46.724
of Shasta, Kings, Nevada, Butte,
00:40:46.724 --> 00:40:48.483
and Sacramento County.
00:40:49.700 --> 00:40:53.280
Otherwise, Frontier mostly
offers advertised downstream
00:40:53.280 --> 00:40:58.280
speeds of less than 100
megabits per second in California.
00:40:59.750 --> 00:41:00.583
Next slide.
00:41:03.980 --> 00:41:05.730
This map, we want to show
00:41:05.730 --> 00:41:08.070
that the California
Advanced Services Fund
00:41:08.070 --> 00:41:12.750
program subsidizes the
cost of building infrastructure
00:41:12.750 --> 00:41:15.651
to provision broadband
Internet access services
00:41:15.651 --> 00:41:18.750
to underserved households.
00:41:18.750 --> 00:41:22.100
This program has about a
$300 million dollar budget
00:41:22.100 --> 00:41:24.823
to spend on eligible projects in 2022.
00:41:26.560 --> 00:41:27.767
Since November 2018,
00:41:27.767 --> 00:41:31.820
the Commission has approved
CASF infrastructure grants
00:41:31.820 --> 00:41:34.160
for 13 projects for Frontier,
00:41:34.160 --> 00:41:37.800
located in 13 different counties.
00:41:37.800 --> 00:41:40.960
Most of these approved
projects for Frontier consisted
00:41:40.960 --> 00:41:44.070
of last mile type of projects ranging
00:41:44.070 --> 00:41:47.503
in award amounts about
41,000 to $11 million.
00:41:49.600 --> 00:41:51.720
But Frontier receives
a much larger portion
00:41:51.720 --> 00:41:53.213
of government support
00:41:53.213 --> 00:41:55.870
from the Federal
Communications Commission
00:41:55.870 --> 00:41:57.663
Universal Service Programs.
00:41:59.010 --> 00:42:04.010
California's portion of the
money Frontier received
00:42:05.012 --> 00:42:10.012
from this government is a small portion
00:42:10.150 --> 00:42:12.760
of that which we will discuss later.
00:42:12.760 --> 00:42:13.713
Next slide, please.
00:42:17.200 --> 00:42:21.800
The California High Cost
Fund-B program subsidizes
00:42:21.800 --> 00:42:23.610
the cost of basic phone service paid
00:42:24.790 --> 00:42:28.390
by residential households
living in areas in California
00:42:28.390 --> 00:42:29.910
in which the cost
00:42:29.910 --> 00:42:34.350
of provisioning basic
phone service is high.
00:42:34.350 --> 00:42:37.480
So Frontier is one of the two carriers
00:42:37.480 --> 00:42:41.650
of last resort along with AT&T
offering basic phone services
00:42:43.750 --> 00:42:48.750
in areas subsidized by California
High Cost Fund-B program.
00:42:50.850 --> 00:42:55.030
Frontier has about
59% of the total number
00:42:55.030 --> 00:42:57.008
of phone lines supported
00:42:57.008 --> 00:43:00.310
by the California High
Cost Fund-B program
00:43:00.310 --> 00:43:03.670
and as you can see and as
Commissioner Guzman Aceves pointed
00:43:03.670 --> 00:43:07.320
out earlier Frontiers service
stories is well represented
00:43:07.320 --> 00:43:10.620
in highly populated areas
of Southern California,
00:43:10.620 --> 00:43:14.910
and Inland Empire but
a good deal of areas
00:43:14.910 --> 00:43:16.893
are in rural locations.
00:43:18.340 --> 00:43:19.173
Next slide.
00:43:23.460 --> 00:43:28.460
This map represents the
out of service repair interval
00:43:30.610 --> 00:43:35.610
as reported by Frontier
and it includes all three
00:43:38.900 --> 00:43:41.473
of those companies listed there.
00:43:42.860 --> 00:43:46.330
The CPUC establish uniform
minimum standards of service
00:43:46.330 --> 00:43:47.487
and reporting requirements
00:43:47.487 --> 00:43:50.880
for public utility telephone Corporation
00:43:50.880 --> 00:43:54.080
in General Order 133-D.
00:43:54.080 --> 00:43:57.060
The out of service
repair interval measures
00:43:57.060 --> 00:43:58.300
the average interval
00:43:58.300 --> 00:44:02.130
between the time a telephone
Corporation responds out
00:44:02.130 --> 00:44:05.757
of service trouble
report and the restoration
00:44:05.757 --> 00:44:07.810
of the customer service.
00:44:07.810 --> 00:44:10.220
The standard is 90% of the out
00:44:10.220 --> 00:44:14.183
of service trouble reports
restored in 24 hours or less.
00:44:15.020 --> 00:44:19.780
The map reflects the
reported results aggregated
00:44:19.780 --> 00:44:24.310
at the county level and
for the entire year of 2019.
00:44:24.310 --> 00:44:28.220
It does not reflect outages
that occurred on Sundays,
00:44:28.220 --> 00:44:30.640
federal holidays, catastrophic events
00:44:30.640 --> 00:44:34.020
and or declared disasters
because they are excludable
00:44:34.020 --> 00:44:36.690
under General Order 133-D.
00:44:36.690 --> 00:44:41.040
In 2019, just in case
it's difficult to see,
00:44:41.040 --> 00:44:43.420
there is this no county
00:44:43.420 --> 00:44:47.220
in which Frontier reported
meaning out of service standard
00:44:47.220 --> 00:44:49.763
at the county level meaning as you
00:44:49.763 --> 00:44:52.733
can see the map shows there
are no green colored County.
00:44:53.900 --> 00:44:56.030
But most of the
counties Frontier reported
00:44:56.030 --> 00:44:59.660
that it resolved less
than 60% of the outages
00:44:59.660 --> 00:45:01.960
within 24 hours.
00:45:01.960 --> 00:45:02.793
Next slide.
00:45:06.230 --> 00:45:10.540
This map uses Frontiers
reported out of service data
00:45:10.540 --> 00:45:15.010
to show their 2019
average outage duration.
00:45:15.010 --> 00:45:19.180
As with the previous out of
service repair interval map,
00:45:19.180 --> 00:45:22.180
the average outage duration map reflects
00:45:22.180 --> 00:45:26.230
the Frontier's reported
results aggregated
00:45:26.230 --> 00:45:29.613
at the county level and
for the entire year of 2019.
00:45:30.720 --> 00:45:34.600
The map also similarly
excludes outages happening
00:45:34.600 --> 00:45:36.910
on Sundays, federal
holidays, catastrophic events
00:45:36.910 --> 00:45:38.210
and or declared disasters.
00:45:39.200 --> 00:45:42.720
Looking at this map, it
appears that consumers
00:45:42.720 --> 00:45:46.274
in Mendocino, Tahoma, Sutter, Sonoma,
00:45:46.274 --> 00:45:50.750
Santa Clara, Kern and Ventura County,
00:45:50.750 --> 00:45:53.090
experienced along this outage duration
00:45:53.090 --> 00:45:55.713
and service restoration times.
00:45:57.400 --> 00:46:01.510
So I have eight minutes
remaining for this portion
00:46:01.510 --> 00:46:05.170
before we begin panel one
so perhaps it would be best
00:46:05.170 --> 00:46:08.743
to open it up for questions
if anybody has any.
00:46:09.600 --> 00:46:14.120
We have Dion Good our
Mapping Extraordinaire on hand
00:46:14.120 --> 00:46:18.520
to answer questions as needed
as well as Gregory Rubenstein
00:46:18.520 --> 00:46:22.900
from our Service Quality
Team if there are any questions
00:46:22.900 --> 00:46:24.407
that I cannot answer.
00:46:30.165 --> 00:46:32.710
Llela if you wanna prompt.
00:46:32.710 --> 00:46:35.522
Hi, yes, thank you
very much Michaela
00:46:35.522 --> 00:46:36.550
for the presentation.
00:46:36.550 --> 00:46:38.070
Do we have any questions from any
00:46:38.070 --> 00:46:40.063
of our Commissioners at this time?
00:46:45.130 --> 00:46:46.390
No questions, Llela,
00:46:46.390 --> 00:46:50.060
I don't know if there's
anything on the chat,
00:46:50.060 --> 00:46:52.220
any clarifying questions
that we should look
00:46:52.220 --> 00:46:54.423
at from the public.
00:46:55.260 --> 00:46:57.640
We do not have any
questions at this time
00:46:57.640 --> 00:46:59.710
that we've received from the email,
00:46:59.710 --> 00:47:02.713
we can open the phone line if we want.
00:47:03.940 --> 00:47:08.940
Operator do we have
any speakers or any callers
00:47:09.670 --> 00:47:11.003
on the line at this time?
00:47:13.170 --> 00:47:14.210
Yes, thank you.
00:47:14.210 --> 00:47:17.940
I show no callers in the
queue at this time but if you
00:47:17.940 --> 00:47:21.283
would like to ask a question,
you may press star one,
00:47:22.370 --> 00:47:25.270
unmute your phone and record
your name and organization
00:47:25.270 --> 00:47:28.110
when prompted clearly
so I may introduce you.
00:47:28.110 --> 00:47:32.160
Again that is star one to ask a
question or make a comment.
00:47:32.160 --> 00:47:34.440
Please stand by it may take
a few moments for questions
00:47:34.440 --> 00:47:35.273
to come in.
00:47:36.750 --> 00:47:39.650
Thank you operator, we will
check back in a few seconds.
00:47:42.960 --> 00:47:45.060
Well, I have a question
while we're waiting
00:47:45.060 --> 00:47:47.860
and maybe this question also goes
00:47:47.860 --> 00:47:52.020
to the Frontier representative
but one of the areas
00:47:52.020 --> 00:47:55.620
that we have also been
looking at in addition
00:47:55.620 --> 00:47:58.860
to the subsidies from state
and federal government
00:47:58.860 --> 00:48:03.400
that we talked about High
Cost Fund-B and CASF,
00:48:05.340 --> 00:48:09.040
Frontier also receives and participates
00:48:09.040 --> 00:48:12.480
in the lifeline program and I
know that Allison you spoke
00:48:12.480 --> 00:48:13.313
to some of this.
00:48:14.300 --> 00:48:19.160
Can you speak to some of
what you envision for the future,
00:48:19.160 --> 00:48:22.640
particularly for the
broadband participation
00:48:22.640 --> 00:48:23.913
in the lifeline program?
00:48:29.168 --> 00:48:31.790
Well, I can tell you
that we, you know,
00:48:31.790 --> 00:48:35.360
we continue to advertise
the lifeline program
00:48:35.360 --> 00:48:38.792
and to seek to connect
customers with it.
00:48:38.792 --> 00:48:40.993
Let me turn my video back on.
00:48:46.120 --> 00:48:47.930
Sorry, you can see me now, Yes.
00:48:47.930 --> 00:48:50.200
So we continue to
advertise the lifeline program,
00:48:50.200 --> 00:48:52.670
we continue to, you know,
00:48:52.670 --> 00:48:55.490
seek to enroll qualifying customers
00:48:55.490 --> 00:48:57.950
in it but what we have seen over time
00:48:57.950 --> 00:49:00.410
is that participation in the program,
00:49:00.410 --> 00:49:03.343
the rates of participation
continue to go down.
00:49:04.450 --> 00:49:06.580
We took that into account actually
00:49:06.580 --> 00:49:08.160
when we developed
00:49:08.160 --> 00:49:11.440
our Frontier fundamentals
broadband offering
00:49:11.440 --> 00:49:13.067
and we did that in consultation
00:49:13.067 --> 00:49:16.650
with the California
Emerging Technology Fund
00:49:16.650 --> 00:49:20.950
and we actually lowered
the qualification barriers
00:49:20.950 --> 00:49:23.370
and decoupled it from
the lifeline program
00:49:23.370 --> 00:49:25.770
because what we have found
throughout our experiences
00:49:25.770 --> 00:49:29.060
is true not just in
California but in other states
00:49:29.060 --> 00:49:32.340
is that the qualification
process is really quite difficult
00:49:32.340 --> 00:49:35.140
for customers and that in and of itself
00:49:35.140 --> 00:49:40.140
is a gating criteria, you
know, or barrier to utilization
00:49:40.750 --> 00:49:41.583
of the program.
00:49:41.583 --> 00:49:44.860
So, when we developed the
Frontier fundamentals program,
00:49:44.860 --> 00:49:49.623
we streamlined the qualification
process and we mapped
00:49:50.920 --> 00:49:53.810
it to programs where
there was a high amount
00:49:54.728 --> 00:49:57.550
of participation in the
state and it just made
00:49:57.550 --> 00:50:00.430
it a little bit easier to,
not a little bit easier,
00:50:00.430 --> 00:50:04.310
a lot easier to qualify for
without all of the various,
00:50:04.310 --> 00:50:05.710
you know, documentation.
00:50:05.710 --> 00:50:09.690
So, you know, looking into the future
00:50:09.690 --> 00:50:11.330
unless there are significant changes
00:50:11.330 --> 00:50:14.590
with the lifeline program, I
would expect that the rate
00:50:17.231 --> 00:50:19.070
of participation in that
program will continue
00:50:19.070 --> 00:50:22.193
to hold steady if not, you
know, continue to decline.
00:50:27.020 --> 00:50:29.520
Great, thank you Alison.
00:50:29.520 --> 00:50:32.230
Can we check the phone
line one more time to see
00:50:32.230 --> 00:50:33.670
if we have any callers?
00:50:33.670 --> 00:50:35.763
Operator, do we have any callers?
00:50:37.448 --> 00:50:39.610
And I have no caller thank
you at this time but again,
00:50:39.610 --> 00:50:42.010
that is star one if you
would like to ask a question
00:50:42.010 --> 00:50:42.973
or make a comment.
00:50:50.150 --> 00:50:54.891
Okay, it doesn't appear that
we have any callers just yet.
00:50:54.891 --> 00:50:58.010
I think what we can do is
we can take a quick break
00:50:58.010 --> 00:51:01.550
and then we can move on
to the first panel discussion
00:51:01.550 --> 00:51:04.800
at 11 o'clock, is that
okay with everybody?
00:51:04.800 --> 00:51:08.430
So we will take a quick
break and then we will move
00:51:08.430 --> 00:51:13.237
to our panel discussion
at 11, thank you, everyone.
00:53:39.367 --> 00:53:42.610
we'll the public know when
we are open for questions,
00:53:42.610 --> 00:53:44.190
input or comments.
00:53:44.190 --> 00:53:46.300
You may also send your questions
00:53:46.300 --> 00:53:49.700
or input for the panelists
by email by sending
00:53:49.700 --> 00:53:54.633
it to telco.events@cpuc.ca.gov.
00:53:56.380 --> 00:53:57.713
Karen, you're ready?
00:53:59.220 --> 00:54:03.750
I am, thank you Llela
and good morning everyone.
00:54:03.750 --> 00:54:07.370
Our guests for this first
panel have been asked
00:54:07.370 --> 00:54:10.390
to bring their perspectives
on their experience
00:54:10.390 --> 00:54:13.640
with Frontier in their community.
00:54:13.640 --> 00:54:16.380
I will introduce all of the speakers
00:54:16.380 --> 00:54:19.633
and then each will speak
before we take questions.
00:54:20.670 --> 00:54:25.110
Each of them has unique and
very impressive qualifications
00:54:25.110 --> 00:54:29.280
as leaders within their
communities and at this time
00:54:29.280 --> 00:54:32.760
of pandemic and wildfires
I would like to thank each
00:54:32.760 --> 00:54:36.063
of them for taking the
time to be with us today.
00:54:38.150 --> 00:54:40.375
Our first panelist,
00:54:40.375 --> 00:54:43.083
can you advance the chart please, Haga?
00:54:48.710 --> 00:54:49.543
Sorry.
00:54:50.780 --> 00:54:52.467
Thank you, that's
the one I wanna say,
00:54:52.467 --> 00:54:54.480
thank you very much.
00:54:54.480 --> 00:54:58.720
Our first panelist is Dore
Bietz, who is a Northern
00:54:58.720 --> 00:55:03.720
and Southern Me-Wuk and
resides on the Tuolumne ranch area.
00:55:03.740 --> 00:55:06.940
She's a former council
woman who now specializes
00:55:06.940 --> 00:55:10.320
in California Indian land
issues at both the state
00:55:10.320 --> 00:55:12.300
and the federal level.
00:55:12.300 --> 00:55:15.330
Ms. Bietz is a Planner
and Emergency Manager
00:55:15.330 --> 00:55:18.190
for the Tuolumne Me-Wuk Tribal Council
00:55:18.190 --> 00:55:21.500
and this position involves
her in every aspect
00:55:21.500 --> 00:55:25.233
of community development
and emergency preparedness.
00:55:27.360 --> 00:55:30.710
Jose Ramirez is the City Manager
00:55:30.710 --> 00:55:33.020
for the city of Livingston where he
00:55:33.020 --> 00:55:36.930
has been for almost over 17 years.
00:55:36.930 --> 00:55:41.430
He is active in many civic
leadership organizations
00:55:41.430 --> 00:55:44.040
and is also serving as a board member
00:55:44.040 --> 00:55:47.721
on numerous county agencies
for economic development
00:55:47.721 --> 00:55:50.440
and with groups serving
children and families
00:55:50.440 --> 00:55:52.810
and solving housing issues.
00:55:52.810 --> 00:55:54.600
He works with both the
School of Engineering
00:55:54.600 --> 00:55:57.800
and the School of Social
Science at CSU Fresno.
00:55:57.800 --> 00:55:59.210
Early in his career,
00:55:59.210 --> 00:56:02.240
he was an Emergency
Management Coordinator
00:56:02.240 --> 00:56:03.913
for the Bureau of Reclamation.
00:56:05.720 --> 00:56:06.860
Next we'll be hearing
00:56:06.860 --> 00:56:11.520
from Matt Rantanen who
is the Director of Technology
00:56:11.520 --> 00:56:15.760
for the Southern California
Tribal Chairman's Association
00:56:15.760 --> 00:56:19.200
where he has led tribal
digital village network
00:56:19.200 --> 00:56:21.070
for almost 20 years.
00:56:21.070 --> 00:56:24.180
Mr. Rantanen is Cree
from First Nations Canada
00:56:24.180 --> 00:56:27.820
and is also Finish and
Norwegian descent.
00:56:27.820 --> 00:56:31.410
He is the Director of Partnering
and Business Development
00:56:31.410 --> 00:56:33.363
at Arcadian Infracom.
00:56:34.230 --> 00:56:36.377
Mr. Rantanen is very active federally
00:56:36.377 --> 00:56:39.470
where he is the Co-chair
of the Technology
00:56:39.470 --> 00:56:43.370
and Telecom Subcommittee
of the National Congress
00:56:43.370 --> 00:56:46.630
of American Indians
and he is also a member
00:56:46.630 --> 00:56:50.323
of the FCC's Native Nations
Broadband Task Force.
00:56:51.950 --> 00:56:55.260
Now we'll move up to Mono
County where Fred Stump
00:56:55.260 --> 00:56:57.853
is the Supervisor of District Two.
00:56:58.790 --> 00:57:02.930
He was first elected to the
Board of Supervisors in 2012.
00:57:04.970 --> 00:57:07.570
Thank you Joe, if you could
show the overview chart.
00:57:08.490 --> 00:57:12.730
And Supervisor Stump
was reelected in 2016
00:57:12.730 --> 00:57:15.302
and he has a long
career in public service
00:57:15.302 --> 00:57:19.940
and spent over 35 years
with various fire agencies.
00:57:19.940 --> 00:57:23.590
His last fire protection
assignment was as the Chief
00:57:23.590 --> 00:57:26.763
of the Long Valley
Fire Protection District.
00:57:28.230 --> 00:57:31.690
Our last speaker today is Kevin Goss,
00:57:31.690 --> 00:57:33.663
the District Two Supervisor
00:57:33.663 --> 00:57:37.170
from the Plumas County
Board of Supervisors.
00:57:37.170 --> 00:57:40.910
He was first elected
to the board in 2013,
00:57:40.910 --> 00:57:43.490
Supervisor Goss is also
a small business owner
00:57:43.490 --> 00:57:45.770
in Greenville and has experience
00:57:45.770 --> 00:57:48.823
with negotiating infrastructure
builds with public agencies.
00:57:50.060 --> 00:57:53.906
The North Fire Complex
is in Plumas county now
00:57:53.906 --> 00:57:58.906
so I do not know if Supervisor
Goss is with us at the moment
00:58:00.640 --> 00:58:02.490
but I've been in touch with him
00:58:02.490 --> 00:58:06.293
and we certainly
appreciate his time today.
00:58:07.890 --> 00:58:10.440
Joe, can you please
advance to the next slide
00:58:10.440 --> 00:58:12.623
which shows the questions for panelists?
00:58:14.230 --> 00:58:15.280
Excellent, thank you.
00:58:16.330 --> 00:58:18.920
So these are the
questions that the panelists
00:58:18.920 --> 00:58:22.183
have been asked to
consider this morning.
00:58:23.070 --> 00:58:25.030
You can see that we
would like the panelists
00:58:25.030 --> 00:58:27.453
to describe their
experience with Frontier,
00:58:28.370 --> 00:58:33.370
what they have done with that
experience and the suggestions
00:58:33.760 --> 00:58:35.310
and specifics that they might
00:58:35.310 --> 00:58:38.253
have for this Commission going forward.
00:58:39.770 --> 00:58:42.720
That concludes my introduction,
00:58:42.720 --> 00:58:45.320
Ms. Bietz we're ready
to hear from you now.
00:58:45.320 --> 00:58:48.677
Joe will advance the
slides when you ask him
00:58:48.677 --> 00:58:53.677
but if you can speak now and
we'll see if we can hear you.
00:58:55.050 --> 00:58:57.100
Good morning everyone,
can you hear me?
00:58:58.450 --> 00:58:59.283
Yes, we can.
00:59:00.487 --> 00:59:05.340
Alrighty, I think we'll
go to the first slide Joe.
00:59:08.494 --> 00:59:12.760
(speaks in foreign language)
00:59:12.760 --> 00:59:14.330
My name is Dore Bietz on behalf
00:59:14.330 --> 00:59:16.210
of the Tuolumne Me-Wuk Indians,
00:59:16.210 --> 00:59:19.280
I'm here to provide our input not only
00:59:19.280 --> 00:59:21.200
on the historical relationship that we
00:59:21.200 --> 00:59:24.470
have had with Frontier
Communications but some ideas
00:59:24.470 --> 00:59:27.560
of how Frontier can move
forward when providing service
00:59:27.560 --> 00:59:30.340
to not only our tribe but all tribes.
00:59:30.340 --> 00:59:33.290
I serve as the tribes planner
and emergency manager,
00:59:33.290 --> 00:59:37.090
I am a tribal member and I
reside here on tribal lands.
00:59:37.090 --> 00:59:38.387
Next slide please Joe.
00:59:41.120 --> 00:59:43.140
We are a federally
recognized tribe located
00:59:43.140 --> 00:59:45.600
in Tuolumne County here in California.
00:59:45.600 --> 00:59:50.100
we oversee and manage
approximately 2000 acres of land,
00:59:50.100 --> 00:59:52.910
some of which is in
tribal trust and other
00:59:52.910 --> 00:59:54.960
that is in trouble fee.
00:59:54.960 --> 00:59:58.307
We have approximately 496 tribal members
00:59:58.307 --> 01:00:02.390
and with 100 homes
currently on tribal trust lands we
01:00:02.390 --> 01:00:05.813
are growing with at least
another 50 homes needed
01:00:05.813 --> 01:00:08.770
or planned in the near future.
01:00:08.770 --> 01:00:10.450
In addition to critical buildings such
01:00:10.450 --> 01:00:12.070
as our tribal government offices,
01:00:12.070 --> 01:00:15.700
tribal public safety which
includes both fire and security,
01:00:15.700 --> 01:00:18.760
our health clinic, we have
several businesses including
01:00:18.760 --> 01:00:23.760
a casino, a hotel, an RV
Resort and a gas station.
01:00:24.210 --> 01:00:28.083
We are the second largest
employer in Tuolumne County.
01:00:29.010 --> 01:00:30.233
Next slide please Joe.
01:00:34.212 --> 01:00:36.520
This is for location purposes,
01:00:36.520 --> 01:00:39.140
this is where we're located
within Tuolumne County
01:00:39.140 --> 01:00:43.140
within California and we
are the pink area of land
01:00:43.140 --> 01:00:45.160
within Tuolumne County.
01:00:45.160 --> 01:00:46.413
Next slide please Joe.
01:00:50.790 --> 01:00:52.353
So I wanna, back one.
01:00:56.837 --> 01:00:57.670
There we go.
01:00:57.670 --> 01:01:00.040
So I wanna talk a little
bit about our experience
01:01:00.040 --> 01:01:02.049
with Frontier.
01:01:02.049 --> 01:01:07.010
I have lived here since 1993,
spent a lot of my summers
01:01:07.010 --> 01:01:09.440
here as a child with my grandparents,
01:01:09.440 --> 01:01:13.050
that I was a resident
that used to use Frontier.
01:01:13.050 --> 01:01:14.380
Since I can remember Frontier
01:01:14.380 --> 01:01:17.250
has consistently provided subpar service
01:01:17.250 --> 01:01:21.860
to our residents and the tribe
and our business endeavors.
01:01:21.860 --> 01:01:23.860
Some of the issues our
tribal government has seen
01:01:23.860 --> 01:01:28.860
over the years include
2004 Frontier was unable
01:01:29.300 --> 01:01:32.570
to provide simple in town
point-to-point T1 service
01:01:32.570 --> 01:01:35.950
to allow telecommunications
to function properly
01:01:35.950 --> 01:01:38.434
at our health clinic which
is located on tribal lands
01:01:38.434 --> 01:01:41.590
in the town of Tuolumne.
01:01:41.590 --> 01:01:44.420
Up until 2005 Frontier
wasn't able to provide
01:01:44.420 --> 01:01:48.050
even common PRI service.
01:01:48.050 --> 01:01:51.410
When we opened our casino in 2005,
01:01:51.410 --> 01:01:53.520
Frontier actually
refused to install fiber
01:01:53.520 --> 01:01:55.380
to our new facility.
01:01:55.380 --> 01:01:58.230
Discovering failure to properly
ground their own gear caused
01:01:58.230 --> 01:02:02.830
a massive outage in 2010,
there were continuing errors
01:02:02.830 --> 01:02:05.330
that were never repaired
on T1 trunk lines used
01:02:05.330 --> 01:02:08.780
for telephone communications
coupled with zero interest
01:02:08.780 --> 01:02:12.683
in upgrading the cable
plan that was actually located
01:02:12.683 --> 01:02:15.200
on the ranch area.
01:02:15.200 --> 01:02:19.970
There was poor installation
of all the equipment,
01:02:19.970 --> 01:02:22.490
not linked circuits, refusal
to ground equipment,
01:02:22.490 --> 01:02:24.520
poor wire management.
01:02:24.520 --> 01:02:28.270
All of these instances
resulted in having no choice
01:02:28.270 --> 01:02:32.798
for tribal government side
and in 2001 we switched all
01:02:32.798 --> 01:02:35.210
of our tribal government
and business communications
01:02:35.210 --> 01:02:38.910
to Comcast leaving only a few POT lines
01:02:38.910 --> 01:02:41.320
and DSL lines as backup.
01:02:41.320 --> 01:02:44.870
It has its issues especially
with power outages
01:02:44.870 --> 01:02:46.444
but it's better than what we
01:02:46.444 --> 01:02:48.494
have had or had been
offered by Frontier.
01:02:49.400 --> 01:02:52.220
Today we still have circuits
coming in from Frontier
01:02:52.220 --> 01:02:53.850
that are purchased via third parties
01:02:53.850 --> 01:02:56.490
to facilitate operation
of their equipment
01:02:56.490 --> 01:03:00.790
on tribal premises,
wide area gaming circuits
01:03:00.790 --> 01:03:04.520
that are still failing
regularly to this day.
01:03:04.520 --> 01:03:08.710
Our business entity side
and the IT departments staff
01:03:08.710 --> 01:03:12.100
are actually pleased to
no longer rely on Frontier
01:03:12.100 --> 01:03:14.800
for communications as
it it was a constant fight
01:03:14.800 --> 01:03:17.670
to get service that was even
capable of facilitating any
01:03:17.670 --> 01:03:18.773
of our business needs.
01:03:20.090 --> 01:03:23.260
On our residential side,
not all of our 100 homes
01:03:23.260 --> 01:03:25.650
have chosen to keep Frontier simply
01:03:25.650 --> 01:03:28.220
because of the low quality of service.
01:03:28.220 --> 01:03:30.410
I am one of those homes
that relies completely
01:03:30.410 --> 01:03:32.360
on self-service only.
01:03:32.360 --> 01:03:35.500
It takes days often to get a
service person to respond,
01:03:35.500 --> 01:03:39.668
the voice quality has
been lacking over the years
01:03:39.668 --> 01:03:43.180
but for emergency services
we support having landlines
01:03:43.180 --> 01:03:46.183
in our homes, especially
for our elders, it's vital.
01:03:47.050 --> 01:03:50.800
We have been left with
little choice and feel stuck
01:03:50.800 --> 01:03:52.523
to do with what we are given.
01:03:54.777 --> 01:03:57.460
To tell a story about my
mother who retired from AT&T.
01:03:57.460 --> 01:04:00.390
In fact, my grandmother
who was tribal chair in the 70s,
01:04:00.390 --> 01:04:03.990
retired from Mabel, she
was a telephone operator
01:04:03.990 --> 01:04:05.510
and worked in Sonora.
01:04:05.510 --> 01:04:09.040
My mother then retired from
AT&T as a systems engineer.
01:04:09.040 --> 01:04:10.750
My mother is often going out to the box
01:04:10.750 --> 01:04:14.503
to fix things herself and
she has 78 years old.
01:04:16.230 --> 01:04:18.830
The most recent impacts of
COVID including distance learning
01:04:18.830 --> 01:04:21.160
and working from home where
parents and kids have to rely
01:04:21.160 --> 01:04:24.520
on the internet and
that has truly taken a toll.
01:04:24.520 --> 01:04:26.430
On weekend some of our
parents have had to drive
01:04:26.430 --> 01:04:28.220
their kids down to our tribal halls,
01:04:28.220 --> 01:04:31.630
sit in the car to use our
business Wi-Fi so that their kids
01:04:31.630 --> 01:04:33.640
can get their work done as they have no
01:04:33.640 --> 01:04:36.530
or inadequate internet
service in their homes provided
01:04:36.530 --> 01:04:38.493
by Frontier through the DSL line.
01:04:39.620 --> 01:04:41.400
What can we do?
01:04:41.400 --> 01:04:42.550
Next slide Joe, please.
01:04:46.410 --> 01:04:48.930
Some of the suggestions
for going forward tribes
01:04:48.930 --> 01:04:52.030
are stakeholders, we are governments
01:04:52.030 --> 01:04:53.983
that should be respected as such.
01:04:55.120 --> 01:04:56.910
Understanding that we have to grow,
01:04:56.910 --> 01:04:59.660
it is our responsibility to
provide for our members,
01:04:59.660 --> 01:05:01.980
we cannot responsibility
to continue to grow
01:05:01.980 --> 01:05:04.510
without providing adequate services.
01:05:04.510 --> 01:05:07.890
It was great to hear that
there has been some areas
01:05:07.890 --> 01:05:10.890
within tribal communities
in California that Frontier
01:05:10.890 --> 01:05:13.810
has done well but we
would like you to work
01:05:13.810 --> 01:05:16.330
with us on identifying those
opportunities and constraints
01:05:16.330 --> 01:05:20.110
and maybe we have solutions
to your problems or vice versa.
01:05:20.110 --> 01:05:22.410
We would like the
opportunity to figure out how we
01:05:22.410 --> 01:05:24.263
can both provide much needed service.
01:05:25.120 --> 01:05:28.230
We wanna create more
opportunities and we would like you
01:05:28.230 --> 01:05:31.310
to be more proactive, don't
just ignore us and think we
01:05:31.310 --> 01:05:35.410
will go away, as a tribe
we are not going anywhere.
01:05:35.410 --> 01:05:40.190
As a service provider, we
think you should include tribes
01:05:40.190 --> 01:05:42.850
when improving or
upgrading your infrastructure.
01:05:42.850 --> 01:05:44.940
We have seen where
you've improved infrastructure
01:05:44.940 --> 01:05:47.953
around us and not included us.
01:05:49.330 --> 01:05:51.160
I run the Planning and
Development Department
01:05:51.160 --> 01:05:54.010
and years ago I met
with a rep from Frontier
01:05:54.010 --> 01:05:56.580
who told me they never
improve the infrastructure simply
01:05:56.580 --> 01:06:01.060
because they didn't see the
value and they were apprehensive
01:06:02.080 --> 01:06:05.270
not understanding how
the bills would get paid
01:06:05.270 --> 01:06:07.460
and so we are beyond that.
01:06:07.460 --> 01:06:08.830
Moving forward Frontier
01:06:08.830 --> 01:06:10.880
could really show meaningful
interest in upgrading
01:06:10.880 --> 01:06:13.180
the Tuolumne area to
facilitate modern levels
01:06:13.180 --> 01:06:16.470
and broadband service
and increase reliability.
01:06:16.470 --> 01:06:18.900
Moving forward if you cannot
provide the service we need
01:06:18.900 --> 01:06:21.500
then it should be made
available to others who will.
01:06:23.090 --> 01:06:25.800
Moving forward we need
fiber to each of our homes
01:06:25.800 --> 01:06:28.500
as fiber deployment
would show proper initiative
01:06:28.500 --> 01:06:30.633
as it is modern and
meaningful upgrade to a network
01:06:30.633 --> 01:06:33.603
that is barely functional
currently today.
01:06:34.620 --> 01:06:35.720
Next slide please Joe.
01:06:38.870 --> 01:06:41.450
In closing, I wanna
thank the Commissioners,
01:06:41.450 --> 01:06:44.490
I wanna thank Karen, I
want to thank all the staff
01:06:44.490 --> 01:06:47.970
and everyone on behalf
of the tribe for inviting us,
01:06:47.970 --> 01:06:52.010
for including tribes in this
discussion in the workshop,
01:06:52.010 --> 01:06:54.010
I'm happy to answer any questions
01:06:54.851 --> 01:06:56.951
and I really do
appreciate the time today.
01:07:02.807 --> 01:07:05.130
Thank you very much Ms. Bietz,
01:07:05.130 --> 01:07:09.050
we will take questions
when all of the speakers
01:07:09.050 --> 01:07:12.163
have finished their presentation.
01:07:13.240 --> 01:07:17.030
Mr. Ramirez, are you
ready for your remarks?
01:07:17.030 --> 01:07:19.200
Absolutely, thank
you very much.
01:07:19.200 --> 01:07:22.270
First of all, I would like
to thank President Batjer
01:07:22.270 --> 01:07:24.771
and Commissioner
Aceves for this opportunity,
01:07:24.771 --> 01:07:26.730
very much appreciated.
01:07:26.730 --> 01:07:29.817
I also would like to start
by saying that we need
01:07:29.817 --> 01:07:34.280
and deserve affordable high
speed and reliable broadband.
01:07:34.280 --> 01:07:37.790
So with that, I would
like to talk a little bit
01:07:37.790 --> 01:07:40.330
about the city of Livingston
so the Commissioners
01:07:40.330 --> 01:07:42.722
and those of you who
are listening online
01:07:42.722 --> 01:07:46.290
can get a little sense of our community.
01:07:46.290 --> 01:07:50.040
We're a very diverse
community, 20% of our population
01:07:50.040 --> 01:07:55.040
is Punjabi, 10% German
Mennonite, 10% Portuguese,
01:07:55.790 --> 01:07:57.780
we have a small population now we used
01:07:57.780 --> 01:07:59.740
to have a bigger population of Japanese,
01:07:59.740 --> 01:08:02.880
this is the original
Yamato Colony startup.
01:08:02.880 --> 01:08:05.870
Our biggest employer
here is Foster Farms,
01:08:05.870 --> 01:08:10.160
Foster Farms it's world
headquarters is located here
01:08:10.160 --> 01:08:13.940
and 3700 employees work not even a mile
01:08:13.940 --> 01:08:16.240
from where my office is currently.
01:08:16.240 --> 01:08:20.480
This is also home to Gallo
cheese and the Gallo family
01:08:20.480 --> 01:08:22.640
and we're also the sweet potato capital.
01:08:22.640 --> 01:08:24.680
So to put all that in perspective,
01:08:24.680 --> 01:08:27.670
we have a lot of immigrants
here constantly going back
01:08:27.670 --> 01:08:29.970
to their home country
back and forth so you
01:08:29.970 --> 01:08:32.190
can see some of the
challenges as it relates
01:08:32.190 --> 01:08:35.430
to just educating them and making
01:08:35.430 --> 01:08:37.790
sure that they have
access to the infrastructure
01:08:37.790 --> 01:08:39.350
' in the highway.
01:08:39.350 --> 01:08:44.350
So I've been here in the
city of Livingston since 2011
01:08:45.590 --> 01:08:49.329
and I've had a lot of
experience back and forth with,
01:08:49.329 --> 01:08:51.780
in this case Frontier.
01:08:51.780 --> 01:08:54.210
I would like to say
and I know that Frontier
01:08:54.210 --> 01:08:57.940
and management and their
new CEO would love for me
01:08:57.940 --> 01:08:59.280
to just communicate what the truth
01:08:59.280 --> 01:09:00.720
is and what the facts are.
01:09:00.720 --> 01:09:04.320
And I would love to say that
we've had a good relationship
01:09:04.320 --> 01:09:07.540
and that we've made a lot of progress,
01:09:07.540 --> 01:09:09.370
I would say that we've
made just a little bit
01:09:09.370 --> 01:09:11.870
of progress and so let
me just kind of lay it out.
01:09:13.842 --> 01:09:18.060
Every week we get some type of complaint
01:09:18.060 --> 01:09:23.060
from our residents as
relates to Frontier service.
01:09:23.300 --> 01:09:26.440
Unfortunately and I know
given and this is pre COVID,
01:09:26.440 --> 01:09:28.640
you know, there's been a lot of closures
01:09:28.640 --> 01:09:31.560
of customer service facilities directly
01:09:31.560 --> 01:09:34.140
in these different municipalities
up and down the state,
01:09:34.140 --> 01:09:35.350
I'm sure.
01:09:35.350 --> 01:09:37.450
And so we understand the challenges
01:09:37.450 --> 01:09:40.450
there but not having that access
01:09:40.450 --> 01:09:45.080
to that customer service
component really brings a lot
01:09:45.080 --> 01:09:48.520
of challenges to us
but now I'm gonna pivot
01:09:48.520 --> 01:09:53.133
and just specifically talk
about the municipality side.
01:09:54.630 --> 01:09:56.950
We've had a lot of different
challenges, you know,
01:09:56.950 --> 01:10:01.950
we've been wanting to have
an open and reliable way
01:10:02.320 --> 01:10:04.050
of communicating information,
01:10:04.050 --> 01:10:09.050
broadcasting our council
meetings and other meetings
01:10:09.130 --> 01:10:12.900
that we have, again, pre
COVID and more importantly now
01:10:12.900 --> 01:10:17.900
and so we've endured
a lot of different issues
01:10:18.120 --> 01:10:19.830
with our connectivity.
01:10:19.830 --> 01:10:23.840
And then back in 2013,
we decided to upgrade
01:10:23.840 --> 01:10:28.840
with T1 line as well and
we got it done but the period
01:10:29.210 --> 01:10:32.440
of time that it took to
actually get that done
01:10:32.440 --> 01:10:33.823
was a challenge.
01:10:35.207 --> 01:10:38.464
So fast forwarding to
now we've, you know,
01:10:38.464 --> 01:10:41.690
I've been trying to
get Frontiers attention
01:10:41.690 --> 01:10:44.050
and so I've used
different ways to do that,
01:10:44.050 --> 01:10:48.320
I've reached out to my
congressman, to former employees
01:10:50.497 --> 01:10:54.290
and finally, I reached
out to CETF and was able
01:10:54.290 --> 01:10:55.470
to make contact with them.
01:10:55.470 --> 01:10:57.660
It was December 18th
01:10:57.660 --> 01:11:02.530
of last year and I basically
reached out to them
01:11:02.530 --> 01:11:05.570
and said look, there's an
opportunity to partner here,
01:11:05.570 --> 01:11:10.570
there's some CASF grants
out there and I would really love
01:11:11.010 --> 01:11:15.739
to find ways where we
can partner up and work
01:11:15.739 --> 01:11:20.739
towards bringing more
reliable high speed broadband.
01:11:20.760 --> 01:11:24.763
So I reached out to or
actually Amy Warshauer who's
01:11:27.110 --> 01:11:30.580
the External Affairs
Manager reached out to me
01:11:30.580 --> 01:11:33.240
and we went back and forth
and the last communication
01:11:33.240 --> 01:11:36.600
that I received from her
was on April 15th of 2020.
01:11:36.600 --> 01:11:38.920
I know that COVID played
a lot of role, you know,
01:11:38.920 --> 01:11:41.510
bringing a lot of havoc
and all these different things
01:11:41.510 --> 01:11:44.860
but going with six months
with no communication
01:11:44.860 --> 01:11:48.550
on my last communication
and checking in,
01:11:48.550 --> 01:11:50.860
I think that is not acceptable.
01:11:50.860 --> 01:11:54.030
However, I wanna move
from here and talk about some
01:11:54.030 --> 01:11:56.753
of the good things that
have happened since then.
01:11:58.070 --> 01:12:00.140
Through CETF, you know,
01:12:00.140 --> 01:12:02.700
they of course they talked
a little bit about providing
01:12:02.700 --> 01:12:04.850
the 50,000 Chromebooks initiatives
01:12:04.850 --> 01:12:09.630
and and so there's been some
movement there to help a lot
01:12:09.630 --> 01:12:12.320
of the school district
needs in this area
01:12:12.320 --> 01:12:14.450
and so I thank them for that.
01:12:14.450 --> 01:12:18.100
I also thank them for
mentioning the potential
01:12:19.118 --> 01:12:23.187
of partnering with the CASF grant
01:12:24.190 --> 01:12:26.890
in the future and that we
might get some investment
01:12:26.890 --> 01:12:31.890
here and I think there's
a lot of opportunities.
01:12:32.403 --> 01:12:34.940
You know, I think the
partnership and collaboration
01:12:34.940 --> 01:12:38.160
as my former colleague
mentioned is the best way
01:12:38.160 --> 01:12:43.160
to go and there are
only provider in this area.
01:12:43.228 --> 01:12:45.800
I'm sure that there's other
competitors but in terms
01:12:45.800 --> 01:12:50.800
of actually investing
here is good, it's a big lift.
01:12:51.470 --> 01:12:56.470
So, again, we value the
opportunity to work with them
01:12:56.700 --> 01:13:01.150
in the near future to
connect broadband to all.
01:13:01.150 --> 01:13:01.983
So thank you.
01:13:10.400 --> 01:13:14.780
Thank you Mr. Ramirez, I
appreciate your comments.
01:13:14.780 --> 01:13:18.140
Mr. Rantanen are you ready to speak?
01:13:18.140 --> 01:13:18.973
Can you?
01:13:18.973 --> 01:13:20.200
I am.
01:13:20.200 --> 01:13:22.200
Perfect we can
hear you just fine too.
01:13:23.600 --> 01:13:27.910
So thank you everyone
for for having me and Karen
01:13:27.910 --> 01:13:32.230
for organizing and
good introduction there,
01:13:32.230 --> 01:13:36.330
I just will have a little bit
of a correction on the intro,
01:13:36.330 --> 01:13:40.330
I was to term member
01:13:40.330 --> 01:13:43.070
of the FCC Native Nations
Broadband Task Force
01:13:43.070 --> 01:13:46.020
and am not currently
active so just wanted
01:13:46.020 --> 01:13:47.000
to make sure people understood
01:13:47.000 --> 01:13:50.190
that but having been at
the national level dealing
01:13:50.190 --> 01:13:53.230
with tribal information,
tribal technology
01:13:53.230 --> 01:13:58.230
and travel opportunity and
policy for the last 18 years,
01:14:00.090 --> 01:14:03.550
you know, building in and
deploying and designing
01:14:03.550 --> 01:14:07.530
a wireless and fiber travel network
01:14:07.530 --> 01:14:12.530
that's over 650 miles
long for the last 19 years
01:14:12.650 --> 01:14:16.770
and I think it's tomorrow
starting my 20th year
01:14:16.770 --> 01:14:18.370
with Tribal Chairman's Association,
01:14:18.370 --> 01:14:22.187
I have had a lot of
experience working in
01:14:22.187 --> 01:14:25.690
and around the telecommunications
issues that tribes face
01:14:25.690 --> 01:14:27.320
on a daily basis.
01:14:27.320 --> 01:14:32.027
And one of the things, you know,
01:14:33.620 --> 01:14:35.476
that I'd like to do is go out of order,
01:14:35.476 --> 01:14:39.320
I would like to go out of
order and talk about today,
01:14:39.320 --> 01:14:41.360
just because I wanna
start on a good note
01:14:41.360 --> 01:14:42.310
and that good note
01:14:42.310 --> 01:14:46.340
is that through the California
Emerging Technology Fund
01:14:47.180 --> 01:14:50.220
during the COVID pandemic
that we've been dealing
01:14:50.220 --> 01:14:54.873
with and with the announcements
of schools being online
01:14:55.880 --> 01:15:00.524
and kids having difficulty
engaging with their education
01:15:00.524 --> 01:15:05.524
and such, the folks at
CETF reached out to me,
01:15:05.850 --> 01:15:09.200
we have a good relationship
in the policy space
01:15:09.200 --> 01:15:13.580
and asked if there were
things that they could do
01:15:13.580 --> 01:15:16.690
to assist in Southern
California Tribal Chairman's
01:15:16.690 --> 01:15:20.130
Association member tribes
and we had a discussion
01:15:20.130 --> 01:15:25.130
about the opportunity to get
access to some Chromebooks.
01:15:25.310 --> 01:15:30.310
And, you know, through some
talking and working on numbers,
01:15:30.540 --> 01:15:32.390
we are going to be the recipient
01:15:32.390 --> 01:15:35.030
or actually are the recipients
of 350 Chromebooks
01:15:35.030 --> 01:15:38.240
for students in the
Southern California Tribal
01:15:38.240 --> 01:15:40.150
Chairman's Association member tribes.
01:15:40.150 --> 01:15:43.533
It fulfills most of the need,
01:15:44.500 --> 01:15:46.370
we got another grant
from San Diego Foundation
01:15:46.370 --> 01:15:49.340
but I did not know that
Frontiers money was supporting
01:15:49.340 --> 01:15:54.340
that so until we actually
got into the conversation
01:15:54.660 --> 01:15:59.660
with with CETF and so that
is a good note that we are,
01:15:59.670 --> 01:16:03.240
you know, receiving some
of that goodwill from Frontier
01:16:03.240 --> 01:16:04.440
to support our students,
01:16:04.440 --> 01:16:09.440
350 of our students and
so I wanted to start with that.
01:16:09.550 --> 01:16:12.788
But now I would like to rewind
and offer some experience
01:16:12.788 --> 01:16:17.440
as well as some constructive
criticism and opportunity
01:16:17.440 --> 01:16:22.440
along the way hopefully for, you know,
01:16:22.450 --> 01:16:26.020
a baseline to work from
for change to be able
01:16:26.020 --> 01:16:30.650
to perform more
effectively and responsibly
01:16:30.650 --> 01:16:32.130
in Indian country.
01:16:32.130 --> 01:16:35.960
So, Southern California
Tribal Chairman's Association
01:16:35.960 --> 01:16:37.913
is all the tribes in San Diego County,
01:16:39.000 --> 01:16:41.460
many of the tribes in
southern Riverside County
01:16:41.460 --> 01:16:43.930
and part of San
Bernardino County as well.
01:16:43.930 --> 01:16:48.930
And back in 2001 we did
not have any opportunity
01:16:51.130 --> 01:16:55.294
to get broadband to
our tribal communities.
01:16:55.294 --> 01:16:58.140
You know, it was on
the cusp of changing over
01:16:58.140 --> 01:17:03.140
from dial-up service to
potentially T1 or found a T1
01:17:03.940 --> 01:17:08.940
and moving into, you know,
DS3 or OC-3, 45 Meg's on copper,
01:17:12.830 --> 01:17:14.790
it was right in that transition period
01:17:14.790 --> 01:17:19.120
of when networks were
starting to step up the game
01:17:19.120 --> 01:17:21.880
to be able to support email
with images and things,
01:17:21.880 --> 01:17:23.540
we were looking for
a solution to be able
01:17:23.540 --> 01:17:27.720
to provide our people with
access to efficient broadband
01:17:27.720 --> 01:17:30.811
of the time and none of the carriers
01:17:30.811 --> 01:17:33.990
in our service areas were doing any
01:17:33.990 --> 01:17:37.710
of this that would support
what we needed to do.
01:17:37.710 --> 01:17:40.940
So the Tribal Digital
Village Network was formed
01:17:43.218 --> 01:17:45.400
and long story short 19 years later,
01:17:45.400 --> 01:17:49.950
650 miles point-to-point,
01:17:49.950 --> 01:17:53.140
point-to-multipoint wireless
network that's supported
01:17:53.140 --> 01:17:58.140
by AT&T fiber on one
end and a CenturyLink fiber
01:17:58.370 --> 01:17:59.343
on the other end.
01:18:00.620 --> 01:18:02.910
And the AT&T fiber is
actually through CENIC
01:18:03.750 --> 01:18:06.580
so we're actually utilizing
California's Research
01:18:06.580 --> 01:18:09.790
and Education Network
and tying into the resources
01:18:09.790 --> 01:18:11.310
that California has provided
01:18:11.310 --> 01:18:13.513
but nowhere involved is Frontier.
01:18:14.390 --> 01:18:16.560
Many times along the
way, we had opportunity
01:18:16.560 --> 01:18:19.590
to work with Frontier
especially after the acquisition
01:18:19.590 --> 01:18:22.010
of Verizon assets in California
01:18:24.000 --> 01:18:27.800
and right when that happened,
01:18:27.800 --> 01:18:30.730
a Frontier representatives claiming
01:18:30.730 --> 01:18:34.980
to be the tribal liaison
came out into Indian country
01:18:34.980 --> 01:18:39.053
in California and was
told to engage with me,
01:18:40.380 --> 01:18:41.570
maybe if you haven't seen me in person,
01:18:41.570 --> 01:18:45.280
I'm six foot four about
270 pounds and that guy,
01:18:45.280 --> 01:18:47.790
I'm easy to spot in the
crowd, talk to that guy.
01:18:47.790 --> 01:18:50.590
So I had you know, I've
been doing this for a long time
01:18:50.590 --> 01:18:52.530
and I've worked with
a lot of tribes in a lot
01:18:52.530 --> 01:18:56.250
of different levels and
she came to me and said,
01:18:56.250 --> 01:19:00.250
hey, you know, we just acquired
these assets in California,
01:19:00.250 --> 01:19:02.093
we want to make a difference,
01:19:03.640 --> 01:19:06.540
we understand that you're
very engaged and very tied up
01:19:06.540 --> 01:19:08.400
with a lot of the different
tribes and the efforts
01:19:08.400 --> 01:19:10.180
that are going on and you
have this network, et cetera,
01:19:10.180 --> 01:19:12.590
et cetera, what are the
things that funds here
01:19:12.590 --> 01:19:15.083
can do to help you moving forward?
01:19:15.963 --> 01:19:17.670
And I have to say I'm, you know,
01:19:17.670 --> 01:19:21.107
I'm kind of over that pitch,
01:19:21.107 --> 01:19:24.750
I've had that pitch from
so many people and I give
01:19:24.750 --> 01:19:27.270
that response and I give
a detailed list of things
01:19:27.270 --> 01:19:31.090
that can happen, low
hanging fruit for Frontier
01:19:31.090 --> 01:19:35.740
to take advantage of
and it just never happens,
01:19:35.740 --> 01:19:36.900
it never materializes.
01:19:36.900 --> 01:19:40.480
So within 45 to 60 days
of meeting with that person
01:19:40.480 --> 01:19:45.330
and giving them multiple
opportunities to make good
01:19:45.330 --> 01:19:48.410
in Indian country to set an example
01:19:48.410 --> 01:19:49.700
of how you're gonna be moving
01:19:49.700 --> 01:19:53.928
through the future as a
vendor to Indian country,
01:19:53.928 --> 01:19:56.290
potentially even a
partner to Indian country
01:19:56.290 --> 01:20:00.587
in the telecommunication
offering, disappeared, gone.
01:20:02.135 --> 01:20:05.930
45 to 60 days that person
evaporated I assume fired
01:20:05.930 --> 01:20:09.820
or moved on maybe because
I gave her too big of a list
01:20:09.820 --> 01:20:12.470
of things to do, I don't
know the circumstances
01:20:12.470 --> 01:20:15.673
but and then you
know, crickets, nothing.
01:20:16.690 --> 01:20:21.113
So, you know, empty promises
and empty requests and empty,
01:20:22.090 --> 01:20:25.530
you know, empty pitches
don't go very far in any country,
01:20:25.530 --> 01:20:30.530
we're pretty used to it and
that needs to be improved
01:20:30.560 --> 01:20:31.460
upon moving forward.
01:20:31.460 --> 01:20:32.580
If you engage a tribe
01:20:32.580 --> 01:20:34.770
and you talk about
solutions and opportunities
01:20:34.770 --> 01:20:37.590
and feel that these are
opportunities that the Frontier
01:20:37.590 --> 01:20:39.884
can be a part of and
partner with a tribe
01:20:39.884 --> 01:20:42.420
to find solutions then, you know,
01:20:42.420 --> 01:20:44.133
follow through is you know,
01:20:45.173 --> 01:20:48.343
the next step to learn in
working with Indian country.
01:20:49.180 --> 01:20:54.180
Another example of issues
with things that have happened
01:20:56.749 --> 01:20:58.670
with Frontier over time,
01:20:58.670 --> 01:21:03.510
Telephony Advanced Services
Fund serves California's efforts
01:21:03.510 --> 01:21:06.770
to try to get broadband
in place for places
01:21:06.770 --> 01:21:10.150
in Indian Country and
other places as well but we
01:21:10.150 --> 01:21:12.930
have some really amazing projects
01:21:12.930 --> 01:21:16.010
that are now full fledged companies,
01:21:16.010 --> 01:21:17.890
we have companies that
have taken on broadband
01:21:17.890 --> 01:21:20.310
that aren't broadband companies,
01:21:20.310 --> 01:21:22.850
we have a lot of different
opportunities that are coming out
01:21:22.850 --> 01:21:25.490
of the woodwork that are
not traditionally the pathways
01:21:25.490 --> 01:21:28.980
that you see communication
solved which is what we need
01:21:28.980 --> 01:21:32.630
in this day and age to solve
the communication problem
01:21:32.630 --> 01:21:35.710
that money has been
put down the same hole
01:21:35.710 --> 01:21:39.490
for the last 25 years and the results
01:21:39.490 --> 01:21:42.060
still haven't cleared Indian country.
01:21:42.060 --> 01:21:43.750
So we're seeing some creativity,
01:21:43.750 --> 01:21:46.020
we're seeing some opportunity
happen and we're seeing
01:21:46.020 --> 01:21:51.020
some real traction in getting
efforts into Indian country.
01:21:52.040 --> 01:21:56.060
But we're also getting
opposition from Frontier,
01:21:56.060 --> 01:21:58.930
this is our service area,
we should be able to serve
01:21:58.930 --> 01:22:03.930
that with our rocket fast
DSL legacy equipment
01:22:04.210 --> 01:22:08.090
that full of flaws and failure
when there are companies
01:22:08.090 --> 01:22:12.320
that are providing
100 Meg's symmetrical,
01:22:12.320 --> 01:22:17.300
true fiber to the home
through a new creative process
01:22:17.300 --> 01:22:19.750
that is not a traditional
broadband company
01:22:21.070 --> 01:22:25.460
and seeking CASF funding
help and getting opposition
01:22:25.460 --> 01:22:28.630
from a company that is
only prepared to deliver 6/1.
01:22:28.630 --> 01:22:33.630
Now the California's fault,
we have not accelerated
01:22:35.560 --> 01:22:37.840
with the times and set a standard
01:22:37.840 --> 01:22:41.700
for broadband sliding
scale to be able to move
01:22:41.700 --> 01:22:46.590
in today's needs for
broadband but legacy equipment,
01:22:48.240 --> 01:22:50.943
not upgrading network, you know,
01:22:52.100 --> 01:22:56.070
fighting against alternative
solutions and competition
01:22:56.070 --> 01:22:59.600
that brings in a much better
product isn't acceptable
01:22:59.600 --> 01:23:02.980
for Indian country, we
have a third world problem
01:23:02.980 --> 01:23:05.640
in Indian country and in rural America.
01:23:05.640 --> 01:23:07.520
We don't want a third world solution,
01:23:07.520 --> 01:23:09.090
we want a first world solution.
01:23:09.090 --> 01:23:13.370
We do not want legacy
equipment to connect us
01:23:13.370 --> 01:23:16.640
on a limping broadband
connectivity opportunity,
01:23:16.640 --> 01:23:20.400
we want to be at the
speed that we should be able
01:23:20.400 --> 01:23:22.763
to be at which is the
standards of today.
01:23:23.720 --> 01:23:26.080
We do not wanna start somewhere back
01:23:26.080 --> 01:23:28.040
in the legacy process moving forward
01:23:28.040 --> 01:23:30.140
to today's standards over time,
01:23:30.140 --> 01:23:33.070
we wanna start today where we are today
01:23:33.070 --> 01:23:35.870
with those standards, we
don't wanna step into history
01:23:35.870 --> 01:23:39.060
and learn the failures along the way,
01:23:39.060 --> 01:23:40.833
we want to be in today's market.
01:23:42.030 --> 01:23:46.207
So hopefully that can
be advice that investment
01:23:47.570 --> 01:23:51.440
in the infrastructure and
support of the infrastructure,
01:23:51.440 --> 01:23:55.440
upgrading gear and
upgrading services is part
01:23:55.440 --> 01:23:58.250
of being a telecommunications company.
01:23:58.250 --> 01:24:00.520
I've run a company for 19 years,
01:24:00.520 --> 01:24:03.910
for 24 different tribes that
are my board of directors
01:24:03.910 --> 01:24:08.610
and we are constantly
evolving with power solutions,
01:24:08.610 --> 01:24:12.130
with connectivity solutions,
with microwave gear solutions,
01:24:12.130 --> 01:24:13.550
with fiber management solutions,
01:24:13.550 --> 01:24:16.830
we are constantly evolving
and we're a small potatoes
01:24:16.830 --> 01:24:19.800
so we expect those larger companies
01:24:19.800 --> 01:24:21.100
to be able to do the same.
01:24:22.450 --> 01:24:26.160
And that on that same
sentiment I've done a lot
01:24:26.160 --> 01:24:27.797
of work nationally to support tribes
01:24:27.797 --> 01:24:32.037
and getting a 2.5 gigahertz
license tribal priority license
01:24:32.037 --> 01:24:33.120
that the FCC.
01:24:34.070 --> 01:24:36.229
Personally touched conversations
01:24:36.229 --> 01:24:41.060
and interacted with about
170 tribes in the process
01:24:41.060 --> 01:24:41.893
of doing that.
01:24:43.970 --> 01:24:46.990
Sadly, I learned about several
situations where Frontier
01:24:46.990 --> 01:24:49.259
is arguing that they are the incumbent,
01:24:49.259 --> 01:24:52.510
they should not have
competition in their space,
01:24:52.510 --> 01:24:55.350
they should not have
to fight against a tribe
01:24:55.350 --> 01:24:57.150
that's building their own
network or partnering
01:24:57.150 --> 01:24:59.240
with somebody to bring in
some solutions to be able
01:24:59.240 --> 01:25:00.400
to bring in broadband,
01:25:00.400 --> 01:25:02.960
when Frontier isn't
actually serving them,
01:25:02.960 --> 01:25:05.680
though they're fighting
medics in their service area
01:25:05.680 --> 01:25:08.320
but take that to heart we're
going to find a solution.
01:25:08.320 --> 01:25:10.700
We'd like to find the solution for you,
01:25:10.700 --> 01:25:14.270
if you can advance your
offerings and bring a solution
01:25:14.270 --> 01:25:15.633
that is relevant today.
01:25:18.070 --> 01:25:23.070
And I guess Lastly, I would
just like to make the comment
01:25:24.380 --> 01:25:29.380
that tribes may be interested
in portions of your network
01:25:30.285 --> 01:25:35.285
in your bankruptcy proceedings
if you're carving sections
01:25:36.240 --> 01:25:41.060
of your network off
or facilities, you know,
01:25:41.060 --> 01:25:43.150
this is a precedent that's been set,
01:25:43.150 --> 01:25:46.060
many times tribes have
taken over components
01:25:46.060 --> 01:25:49.280
of telephone companies
as they dissolved assets
01:25:49.280 --> 01:25:53.740
or broken up monopolies
and different things.
01:25:53.740 --> 01:25:54.900
We have a good example
01:25:54.900 --> 01:25:59.500
in Gila River communities
GRTI acquired a major portion
01:25:59.500 --> 01:26:02.420
of a phone company and
became the service provider
01:26:02.420 --> 01:26:04.260
for their own people as well as some
01:26:04.260 --> 01:26:07.490
of their surrounding
population that are non-tribal
01:26:07.490 --> 01:26:10.910
so consider that in your
dealings moving forward
01:26:10.910 --> 01:26:15.910
that the tribes may become a
partner and actually be poised
01:26:16.070 --> 01:26:18.520
to take over assets that
you're no longer interested
01:26:18.520 --> 01:26:20.790
in managing so that the tribes
01:26:20.790 --> 01:26:23.160
can actually serve themselves.
01:26:23.160 --> 01:26:25.130
So I hope that was informative
01:26:25.130 --> 01:26:28.160
and at least a little bit
constructive moving forward
01:26:28.160 --> 01:26:29.810
for you, thank you for your time.
01:26:33.293 --> 01:26:35.403
Thank you, Mr. Rantanen.
01:26:36.479 --> 01:26:40.460
Our next speaker is Supervisors Stump.
01:26:40.460 --> 01:26:45.370
Joe, Supervisor Stump
has charts available as well
01:26:46.630 --> 01:26:49.990
and Supervisor Stump
can you say something,
01:26:49.990 --> 01:26:51.810
are you ready to go?
01:26:51.810 --> 01:26:54.350
I am ready to go,
can you hear me?
01:26:54.350 --> 01:26:56.770
We can hear you perfect,
thank you, go ahead.
01:26:56.770 --> 01:27:00.370
And good morning, I want
to thank the Commission
01:27:00.370 --> 01:27:01.930
for the opportunity.
01:27:01.930 --> 01:27:04.630
I particularly wish to thank the Chair,
01:27:04.630 --> 01:27:08.490
Commissioner Guzman Aceves
for reaching out to allow me
01:27:08.490 --> 01:27:10.500
to speak on this issue.
01:27:10.500 --> 01:27:15.500
I do have some PowerPoint,
if you can put that up,
01:27:17.160 --> 01:27:18.610
I'm not seeing it on the screen,
01:27:18.610 --> 01:27:20.260
let me know when it's there.
01:27:20.260 --> 01:27:21.483
There we go, yes.
01:27:24.373 --> 01:27:26.940
As stated, I am the District
Two Supervisor in Mono County,
01:27:26.940 --> 01:27:29.870
brief description of
Mono County District Two.
01:27:29.870 --> 01:27:32.903
There is one incorporated
community in Mono County
01:27:32.903 --> 01:27:35.360
that is the Community of Mammoth Lakes,
01:27:35.360 --> 01:27:37.470
I am the only county supervisor
01:27:37.470 --> 01:27:41.510
that does not represent a
portion of that community.
01:27:41.510 --> 01:27:45.210
District Two is large, it is on
the south-end of the county,
01:27:45.210 --> 01:27:49.880
it is very diverse, it contains an area
01:27:49.880 --> 01:27:54.250
that is classified as
officially disadvantaged,
01:27:54.250 --> 01:27:59.250
it contains a tribe and
I did speak yesterday
01:27:59.280 --> 01:28:02.220
with Tribal Chair Sok to confirm
01:28:02.220 --> 01:28:04.670
that I had his permission
to represent the tribe
01:28:04.670 --> 01:28:08.850
and also to make verify that
the issues I am addressing
01:28:08.850 --> 01:28:11.780
are shared by that tribe.
01:28:11.780 --> 01:28:15.390
We have a large
percentage of rural poor,
01:28:15.390 --> 01:28:18.430
we have seniors and
the number of seniors
01:28:18.430 --> 01:28:22.210
on home delivered meals
that are on fixed incomes
01:28:22.210 --> 01:28:26.510
has increased spec tripled
during my time in office
01:28:26.510 --> 01:28:30.690
and so it is a challenging district.
01:28:30.690 --> 01:28:34.730
I'm speaking to you today
because of some of the challenges
01:28:34.730 --> 01:28:37.390
on an old fashioned telephone plugged
01:28:37.390 --> 01:28:42.390
into a Frontier landline
because a I have no cell service
01:28:42.780 --> 01:28:47.780
in the community that I live
in and B other phone failures
01:28:48.470 --> 01:28:51.590
have necessitated to
you so you're get to see
01:28:51.590 --> 01:28:54.760
this little green thing plugged
into my ear as an example
01:28:54.760 --> 01:28:56.870
of what I'm talking about.
01:28:56.870 --> 01:28:58.520
Can I have the next slide please?
01:29:00.410 --> 01:29:03.170
This I will not spend a
lot of time on but my time
01:29:03.170 --> 01:29:05.920
on the board, the county has gone
01:29:05.920 --> 01:29:09.230
into an extensive
strategic planning process,
01:29:09.230 --> 01:29:13.090
this is a representation
of that process.
01:29:13.090 --> 01:29:16.810
Three things to note, item
one is to promote public safety
01:29:16.810 --> 01:29:19.737
and health, item two is
to promote quality of life,
01:29:19.737 --> 01:29:24.102
item three is to try and create as much
01:29:24.102 --> 01:29:28.900
as possible a healthy regional economy.
01:29:28.900 --> 01:29:31.390
We have had successes it is a component
01:29:31.390 --> 01:29:35.000
of our legislative
platform that is extended
01:29:35.000 --> 01:29:37.190
to both our state representatives
01:29:37.190 --> 01:29:38.870
and our federal representatives,
01:29:38.870 --> 01:29:41.930
we have supported the
creation of Digital 395
01:29:41.930 --> 01:29:46.930
as has this Commission for
which we are very grateful.
01:29:47.400 --> 01:29:49.330
We have actually function
01:29:49.330 --> 01:29:51.820
to run the local broadband consortium
01:29:51.820 --> 01:29:55.670
and we have deployed
gigabit broadband to 95%
01:29:55.670 --> 01:30:00.220
of mono households, unfortunately
95% does not include most
01:30:00.220 --> 01:30:01.620
of District Two.
01:30:01.620 --> 01:30:03.273
May I have the next slide please.
01:30:06.760 --> 01:30:09.110
I'm going to cover
three things here today
01:30:09.110 --> 01:30:12.990
and then follow up with some
recommendations and requests,
01:30:12.990 --> 01:30:16.270
reliability, responsiveness
and commitment.
01:30:16.270 --> 01:30:18.620
I think some of my fellow speakers
01:30:18.620 --> 01:30:23.620
have already touched on
these so I'm going to go ahead
01:30:23.660 --> 01:30:25.210
and let's move to the next one.
01:30:30.590 --> 01:30:33.180
The drivers for reliability.
01:30:33.180 --> 01:30:35.500
Much of my district is still served
01:30:35.500 --> 01:30:38.810
by aging copper wire
infrastructure and when I say aging,
01:30:38.810 --> 01:30:42.640
it was there when
Verizon owned the system
01:30:42.640 --> 01:30:46.580
and it is still there, it
has not been improved,
01:30:46.580 --> 01:30:50.123
there has been no effort to upgrade it.
01:30:51.610 --> 01:30:53.610
In fact, in another area of my district
01:30:53.610 --> 01:30:56.910
unfortunately typical of
California this summer,
01:30:56.910 --> 01:31:00.920
there was a wildland fire
that destroyed a whole set
01:31:00.920 --> 01:31:05.060
of above ground lines
and what was replaced
01:31:05.060 --> 01:31:07.960
on those lines to those
affected communities
01:31:07.960 --> 01:31:09.490
was copper wire infrastructure,
01:31:09.490 --> 01:31:13.670
it was not didn't the
opportunity to install fiber optic,
01:31:13.670 --> 01:31:17.570
although it could have been
supported was not taken.
01:31:17.570 --> 01:31:21.370
Second, I wanna say that
there's a lack of route diversity
01:31:21.370 --> 01:31:25.280
and that is primarily
due to Frontiers refusal
01:31:25.280 --> 01:31:29.970
to adopt Digital 395, it
should be used actively,
01:31:29.970 --> 01:31:32.590
it is in both the highway six
01:31:32.590 --> 01:31:35.883
and highway 395
corridors which I represent.
01:31:37.170 --> 01:31:40.500
I am informed that Frontier will bridge
01:31:40.500 --> 01:31:43.950
using Digital 395 manually
if there's an outage,
01:31:43.950 --> 01:31:45.883
however within the last month
01:31:45.883 --> 01:31:50.690
there have been two outages
due to disruptions to the south
01:31:50.690 --> 01:31:55.570
of us and Frontier failed
to make that bridge.
01:31:55.570 --> 01:31:59.120
Power dependent equipment
on the behalf Frontier
01:31:59.120 --> 01:32:00.850
there is no backup.
01:32:00.850 --> 01:32:03.990
When power failures,
particularly in the area served
01:32:03.990 --> 01:32:08.440
by aging copper wire
infrastructure, there is no backup,
01:32:08.440 --> 01:32:10.000
the phones fail.
01:32:10.000 --> 01:32:13.420
And what brought this point home to me
01:32:13.420 --> 01:32:17.230
the most was I've had
two constituent residents
01:32:17.230 --> 01:32:19.120
that have passed away.
01:32:19.120 --> 01:32:23.160
They were discovered and
the person that discovered
01:32:23.160 --> 01:32:26.970
them could not use the
phones they would not work,
01:32:26.970 --> 01:32:28.720
I find that unacceptable.
01:32:28.720 --> 01:32:31.460
911 has to be available particularly
01:32:31.460 --> 01:32:34.640
when you have a rural senior population
01:32:34.640 --> 01:32:38.863
and when it doesn't work
that is not acceptable.
01:32:40.180 --> 01:32:43.850
Results, 911 outages, numerous landline,
01:32:43.850 --> 01:32:47.900
cellular and power
safety shutoff each year
01:32:47.900 --> 01:32:52.890
are affecting the ability
for residents to dial 911
01:32:52.890 --> 01:32:57.237
and it is the only carrier is in many
01:32:58.840 --> 01:33:00.700
of these locations Frontier.
01:33:00.700 --> 01:33:02.300
May have the next slide, please.
01:33:04.240 --> 01:33:07.640
Responsiveness, we've
already heard about a lack
01:33:07.640 --> 01:33:10.450
of follow-through service
issues, customer complaints,
01:33:10.450 --> 01:33:13.223
agency inquiries left hanging.
01:33:13.223 --> 01:33:17.260
I'm not gonna belabor these
points except to say ditto
01:33:18.650 --> 01:33:20.400
in Mono County.
01:33:20.400 --> 01:33:24.410
The county itself
relies on Frontier and all
01:33:24.410 --> 01:33:28.950
of these issues,
particularly for justice,
01:33:28.950 --> 01:33:33.950
dedicated justice lines have
been frequent and reoccurring,
01:33:36.276 --> 01:33:39.190
not to mention what local customers
01:33:39.190 --> 01:33:41.690
have to face when they have an issue.
01:33:41.690 --> 01:33:44.320
It is worth noting that
many of my customers
01:33:44.320 --> 01:33:46.710
have to make long
distance calls in order
01:33:46.710 --> 01:33:50.490
to report an outage, that
in order to make those calls,
01:33:50.490 --> 01:33:53.160
if they do have a cell
phone, they have to travel
01:33:53.160 --> 01:33:56.210
to an area where they have cell service
01:33:56.210 --> 01:34:01.010
and if you're a homebound
senior both those things
01:34:01.010 --> 01:34:05.193
become problematic, COVID
has only made this worse.
01:34:06.560 --> 01:34:10.730
So the ability to resolve
long standing service issues,
01:34:10.730 --> 01:34:13.660
poor quality connections,
inadequate service,
01:34:13.660 --> 01:34:16.890
I do wish to state that
I have personally met
01:34:16.890 --> 01:34:20.350
with Frontier technicians
and they appear to know
01:34:20.350 --> 01:34:21.770
what needs to be done.
01:34:21.770 --> 01:34:25.250
They're just not empowered
to either spend the money
01:34:25.250 --> 01:34:29.720
to do it or to create the
upgraded infrastructure
01:34:29.720 --> 01:34:34.720
to facilitate proper
functioning of the system.
01:34:35.530 --> 01:34:39.130
Lastly, we did hear about
life-line customer issues
01:34:39.130 --> 01:34:41.540
and I have to reference I
have had many complaints
01:34:41.540 --> 01:34:44.300
from my residents about price increases
01:34:44.300 --> 01:34:47.430
and the difficulty in
obtaining life-line service
01:34:47.430 --> 01:34:50.270
as mentioned by one of the
Frontier people themselves
01:34:50.270 --> 01:34:52.960
because of the complexity of the process
01:34:52.960 --> 01:34:55.150
and that all changed after the switch
01:34:55.150 --> 01:34:58.283
from Verizon to Frontier.
01:34:59.590 --> 01:35:01.573
May I have the next slide please.
01:35:05.100 --> 01:35:09.630
Here commitment we have
outside plant investment needs
01:35:09.630 --> 01:35:10.760
obviously going back
01:35:10.760 --> 01:35:13.330
to the aging copper wire infrastructure,
01:35:13.330 --> 01:35:16.510
there is no indication
in those areas that only
01:35:16.510 --> 01:35:19.150
have that as a choice.
01:35:19.150 --> 01:35:22.870
What the long-term plans
are, the communications levels
01:35:22.870 --> 01:35:25.920
from Frontier to the local communities,
01:35:25.920 --> 01:35:29.700
to the county have been minimal at best.
01:35:29.700 --> 01:35:34.700
They are very dismissive
frankly of emails, et cetera.
01:35:35.820 --> 01:35:38.200
Encumbering of CAF II monies.
01:35:38.200 --> 01:35:43.070
Well, I understand that
Frontier as they said earlier today
01:35:43.070 --> 01:35:45.958
has touted some of those movements
01:35:45.958 --> 01:35:50.210
but it has not happened
here and it is impacting
01:35:50.210 --> 01:35:53.600
the ability to bridge
the digital divide network
01:35:53.600 --> 01:35:58.600
in Mono County, again
made worse in the rural areas
01:35:59.370 --> 01:36:04.150
by COVID, requiring
homeschooling online education
01:36:04.150 --> 01:36:07.350
and just the ability to visit.
01:36:07.350 --> 01:36:12.180
Many of our seniors are
homebound and they need
01:36:12.180 --> 01:36:17.000
to be not just isolated
completely but have visits
01:36:17.000 --> 01:36:19.260
and they can't do that with
the current infrastructure
01:36:19.260 --> 01:36:23.920
even using something
like FaceTime or a program
01:36:23.920 --> 01:36:26.370
on the computer if you
don't have high speed internet
01:36:26.370 --> 01:36:27.203
and they don't.
01:36:28.320 --> 01:36:31.850
Lastly, I do want to just
and I'm going to come back
01:36:31.850 --> 01:36:36.490
to this state that I agree
with my previous caller
01:36:36.490 --> 01:36:41.490
that CAF II monies need to
be available to other entities.
01:36:41.770 --> 01:36:46.750
For Frontier to have a veto
power over these two monies,
01:36:46.750 --> 01:36:51.130
this source of funding is just
restricting what can happen.
01:36:51.130 --> 01:36:55.460
I have local groups that
are willing to form nonprofits
01:36:55.460 --> 01:36:58.920
to provide service within
their area but they cannot,
01:36:58.920 --> 01:37:02.610
they're not capitalized
and they are blocked frankly
01:37:02.610 --> 01:37:06.050
by Frontier's veto power
and if you do nothing else
01:37:06.050 --> 01:37:09.960
in this bankruptcy hearing
but remove that veto power,
01:37:09.960 --> 01:37:14.060
you will enable shorter term turnarounds
01:37:14.060 --> 01:37:18.270
by more responsive local entities
01:37:18.270 --> 01:37:22.200
and I really cannot
push that point enough.
01:37:22.200 --> 01:37:23.900
May I have the next slide, please?
01:37:27.120 --> 01:37:29.090
Here are some of our recommendations.
01:37:29.090 --> 01:37:33.750
You know, how do we force
Frontier to resolve issues
01:37:33.750 --> 01:37:36.170
when we appear to get stonewalled?
01:37:36.170 --> 01:37:39.713
The typical response
has been when complaints
01:37:39.713 --> 01:37:44.270
have been made, the individual
issue has been resolved.
01:37:44.270 --> 01:37:46.430
Well the individual issue
may have been resolved
01:37:46.430 --> 01:37:49.170
by looking for an effective
pair of copper wires
01:37:49.170 --> 01:37:52.200
to service residents, however,
01:37:52.200 --> 01:37:57.100
the basic downfall and
antiquity of the system remains.
01:37:58.390 --> 01:38:01.400
Potentially empower
local tech's, Frontier needs
01:38:01.400 --> 01:38:04.573
to empower its local tech's
instead of being so centralized.
01:38:06.745 --> 01:38:09.040
They need to be able to
do what needs to be done
01:38:09.040 --> 01:38:11.440
if they're going to
be left in the position
01:38:11.440 --> 01:38:13.700
of providing the service.
01:38:13.700 --> 01:38:16.310
Create another venue
to provide feedback,
01:38:16.310 --> 01:38:19.900
Government Affairs
representatives are not effective.
01:38:19.900 --> 01:38:22.280
The responses tend to be perfunctory
01:38:22.280 --> 01:38:27.280
and the as my previous speaker said,
01:38:27.536 --> 01:38:30.840
they just kind of disappear
into the woodwork.
01:38:30.840 --> 01:38:35.410
And support non-incumbent
broadband initiatives
01:38:35.410 --> 01:38:37.860
and I'm gonna say
again, require Frontier
01:38:37.860 --> 01:38:40.640
to relinquish CAF monies in geographies
01:38:40.640 --> 01:38:44.370
that are not being used and frankly,
01:38:44.370 --> 01:38:47.050
Mono County was the beneficiary
01:38:47.050 --> 01:38:50.410
of several public utilities
Commission grants
01:38:50.410 --> 01:38:53.790
to an entity called Race Communications.
01:38:53.790 --> 01:38:55.930
Those grants appeared to have slipped
01:38:55.930 --> 01:38:58.740
through during the
Verizon-Frontier transition
01:38:58.740 --> 01:39:01.220
and if Frontier had opposed them,
01:39:01.220 --> 01:39:03.473
none of those projects
would have occurred.
01:39:06.080 --> 01:39:08.010
And I believe that's my last slide,
01:39:08.010 --> 01:39:09.610
I am available for questions.
01:39:09.610 --> 01:39:14.180
I want to extend my
appreciation to my prior speakers
01:39:15.100 --> 01:39:17.870
for covering and
reinforcing many of the points
01:39:17.870 --> 01:39:21.810
that I have addressed
today and I will be available
01:39:21.810 --> 01:39:23.060
for questions, thank you.
01:39:25.590 --> 01:39:27.790
Thank you Supervisor Stump.
01:39:27.790 --> 01:39:31.900
We will go now from Mono
county to Plumas County,
01:39:31.900 --> 01:39:35.270
Supervisor Goss are you
ready for your remarks?
01:39:35.270 --> 01:39:37.070
Yes, good morning.
01:39:37.070 --> 01:39:38.930
Thank you to the
Commission and everybody
01:39:38.930 --> 01:39:41.350
for making this possible and giving me
01:39:41.350 --> 01:39:42.563
an opportunity to speak.
01:39:43.620 --> 01:39:47.500
I am on a landline
because I cannot live stream
01:39:47.500 --> 01:39:50.820
because my internet is too slow so you
01:39:50.820 --> 01:39:52.193
Just get my voice today.
01:39:53.340 --> 01:39:58.340
I do want to go back
and compliment all four
01:39:58.440 --> 01:40:01.240
of the previous
speakers, all of the issues
01:40:01.240 --> 01:40:04.290
that they spoke of are
definitely happening here
01:40:04.290 --> 01:40:06.250
in Indian Valley, Plumas County.
01:40:06.250 --> 01:40:09.973
A little background on
Plumas County, Indian Valley.
01:40:11.480 --> 01:40:14.870
17 to 18,000 people in the
county, one incorporated city
01:40:14.870 --> 01:40:19.870
on the eastern side and old
logging communities, mining,
01:40:19.890 --> 01:40:24.890
which is turned into
basically just the shred
01:40:25.000 --> 01:40:27.100
of what's left over
of mining and logging
01:40:27.100 --> 01:40:30.490
and turned over to governmental
agencies so on and so forth.
01:40:30.490 --> 01:40:33.710
I've been serving on the
board for for eight years,
01:40:33.710 --> 01:40:38.710
I am currently the Plumas
County Representative for RCRC,
01:40:39.530 --> 01:40:41.310
Regional Council Rural
Counties is what used
01:40:41.310 --> 01:40:44.730
to be called but anyhow,
going forward I'd like
01:40:44.730 --> 01:40:47.230
to talk a little bit not
so much about what
01:40:47.230 --> 01:40:48.860
the previous four
speakers, I'm gonna come
01:40:48.860 --> 01:40:52.850
in and angle from are
the small business side
01:40:52.850 --> 01:40:55.350
which we own a
pharmacy here in Greenville
01:40:55.350 --> 01:40:57.120
and for more the governmental side
01:40:57.120 --> 01:41:01.120
and a project that I
worked on for a little over 15
01:41:01.120 --> 01:41:03.873
to 20 years with fellow
supervisor, Robert Meacher.
01:41:04.850 --> 01:41:06.860
We'll start off with the Rule 20 project
01:41:06.860 --> 01:41:09.290
which I'm not sure if
everybody's familiar
01:41:09.290 --> 01:41:13.410
with but it is a cooperative
project with PG&E,
01:41:14.290 --> 01:41:18.210
Frontier, any communications
company and CalTrans
01:41:18.210 --> 01:41:21.390
to beautify your community
with new sidewalks
01:41:21.390 --> 01:41:24.360
and street lighting
and so on and so forth.
01:41:24.360 --> 01:41:27.780
And we had spent 15
to 20 years like I said
01:41:27.780 --> 01:41:30.940
in the in the works
and planning this project
01:41:30.940 --> 01:41:33.740
and we're just getting
ready to break ground
01:41:33.740 --> 01:41:38.120
and set forth with the
project when Frontier decided
01:41:38.120 --> 01:41:42.070
that they were going to
pull out and jeopardize
01:41:42.070 --> 01:41:46.890
the project completely
which was a no go for me
01:41:46.890 --> 01:41:50.580
and a lot of others had
spent so much time on this.
01:41:50.580 --> 01:41:54.040
And went back and forth with Frontier
01:41:54.040 --> 01:41:59.040
for for quite some time,
went to the national level all
01:41:59.390 --> 01:42:03.000
the while as they are
advertising on the radio
01:42:03.000 --> 01:42:05.430
how that they support rural communities
01:42:05.430 --> 01:42:10.430
and have all of these different
contests and everything
01:42:11.380 --> 01:42:15.150
to help out rural
communities and I'm listening
01:42:15.150 --> 01:42:17.390
to our rep saying no,
we're gonna pull the plug
01:42:17.390 --> 01:42:19.893
on a 15 minute $20 million project.
01:42:20.780 --> 01:42:25.780
I worked diligently with
them and we finally came up
01:42:26.670 --> 01:42:31.620
with a compromise which we
had to scale our project back
01:42:31.620 --> 01:42:34.660
to just the highway 89 corridor
01:42:34.660 --> 01:42:37.090
and they reluctantly went ahead
01:42:37.090 --> 01:42:39.170
and put their lines
underground but we weren't able
01:42:39.170 --> 01:42:42.320
to do the whole full
build out on her project
01:42:42.320 --> 01:42:45.390
which was completely
unfortunate because we were trying
01:42:45.390 --> 01:42:49.150
to attract small business
to our town and tourism
01:42:49.150 --> 01:42:50.893
and so on and so forth.
01:42:51.930 --> 01:42:56.930
But that was just a real
prime example of how Frontier
01:42:57.302 --> 01:43:01.250
has been dealing with us
and that's just on that side of it,
01:43:01.250 --> 01:43:04.530
not just the customer
service side so on and so forth.
01:43:04.530 --> 01:43:09.160
But the one thing
that really did it for me
01:43:09.160 --> 01:43:12.930
is when I had a couple of
new businesses come into town
01:43:12.930 --> 01:43:14.550
and set up shopping,
01:43:14.550 --> 01:43:18.590
went to go get their
internet service hooked up
01:43:18.590 --> 01:43:21.230
and they were told that there
were no more blocks available
01:43:21.230 --> 01:43:23.820
and that they would have
to be put on a waiting list
01:43:23.820 --> 01:43:26.023
to be able to get internet.
01:43:28.000 --> 01:43:29.430
Two of those businesses
were right next door
01:43:29.430 --> 01:43:32.330
to my pharmacy which
I extended my wireless
01:43:32.330 --> 01:43:36.660
to them which inevitably
slowed my wireless down
01:43:36.660 --> 01:43:38.470
but until they could get hooked up two
01:43:38.470 --> 01:43:42.460
to three months later because
there's no other providers
01:43:42.460 --> 01:43:45.580
and there is a wireless company
DigitalPath here in the area
01:43:45.580 --> 01:43:49.850
that has some coverage
area but that's just there in front
01:43:49.850 --> 01:43:50.803
of a mountain top.
01:43:51.950 --> 01:43:55.630
So we did work with them and to be able
01:43:55.630 --> 01:43:59.190
to get some internet here but the blocks
01:43:59.190 --> 01:44:00.830
are still unavailable.
01:44:00.830 --> 01:44:01.840
It's like Fred
01:44:01.840 --> 01:44:06.090
was saying earlier all aged
infrastructure copper wire,
01:44:06.090 --> 01:44:07.860
I have heard that there is glass,
01:44:07.860 --> 01:44:09.653
there is fiber optic here in town.
01:44:10.980 --> 01:44:15.980
Going forward for Frontier,
I would strongly suggest
01:44:19.140 --> 01:44:21.716
that you work with your
partners because we
01:44:21.716 --> 01:44:23.990
have on either side of us up
01:44:23.990 --> 01:44:28.770
in Susanville to the north of us PSREC
01:44:28.770 --> 01:44:31.460
which is Plumas-Sierra
Rural Electric Cooperative,
01:44:31.460 --> 01:44:34.250
has pulled fiber optic
cable from Reno all the way
01:44:34.250 --> 01:44:38.210
to the Diamond Mountain
Casino over there and in Quincy
01:44:38.210 --> 01:44:42.070
to Feather River College
but those two cables stopped
01:44:42.070 --> 01:44:45.370
and dead ended because
they couldn't make the circuit
01:44:45.370 --> 01:44:48.410
to connect in the loop through Frontier
01:44:48.410 --> 01:44:51.110
because they would not
allow them to hang anything
01:44:51.110 --> 01:44:52.600
on their lines.
01:44:52.600 --> 01:44:57.330
And so I would strongly
suggest on a plan going forward
01:44:57.330 --> 01:44:59.150
for at least for Plumas County,
01:44:59.150 --> 01:45:01.040
is they make that
connection and make that loop
01:45:01.040 --> 01:45:04.260
because the fire that
happened outside of,
01:45:04.260 --> 01:45:06.660
the Hog Fire fire I believe
is what it was called,
01:45:06.660 --> 01:45:08.680
outside of Susanville burned
01:45:08.680 --> 01:45:12.277
up their copper lines
servicing Plumas county
01:45:12.277 --> 01:45:15.350
and we were down our businesses all down
01:45:15.350 --> 01:45:17.473
for at least I think three days.
01:45:18.500 --> 01:45:19.980
Putting out here at the pharmacy,
01:45:19.980 --> 01:45:21.580
putting out thousand
dollar prescriptions
01:45:21.580 --> 01:45:22.980
not knowing whether
you're gonna get paid
01:45:22.980 --> 01:45:26.410
or not is not exactly a way
you want to do business.
01:45:26.410 --> 01:45:31.190
So it's the redundancy
needs to be upgraded,
01:45:31.190 --> 01:45:35.240
we need to have backup
available as Fred was talking
01:45:35.240 --> 01:45:37.603
is when the power goes
out, we have issues,
01:45:39.000 --> 01:45:40.033
there's no backup.
01:45:41.150 --> 01:45:44.630
The technicians just like
Fred said, know how to fix it,
01:45:44.630 --> 01:45:46.450
they know there's glass here
01:45:46.450 --> 01:45:49.830
but there's no empowerment
available to those folks.
01:45:49.830 --> 01:45:54.410
So, again, you know, I
don't wanna go over all
01:45:54.410 --> 01:45:56.870
of the other comments
from all the other speakers
01:45:56.870 --> 01:45:59.210
and I'd rather get to the questions,
01:45:59.210 --> 01:46:00.380
if you guys have any
01:46:00.380 --> 01:46:04.173
and that will conclude
my comments, thank you.
01:46:06.290 --> 01:46:08.930
Thank you very
much Supervisor Goss
01:46:08.930 --> 01:46:12.370
and for you and all the other panelists,
01:46:12.370 --> 01:46:17.370
we appreciate your detailed
remarks and your examples.
01:46:17.600 --> 01:46:21.390
We'll begin our question
and answer period now.
01:46:21.390 --> 01:46:24.590
First, I will ask the
Commissioners for questions
01:46:24.590 --> 01:46:28.460
and follow up and then
we will go to the phone line
01:46:28.460 --> 01:46:32.240
where each speaker will
have one and a half minutes.
01:46:32.240 --> 01:46:37.100
All five Commissioners
are present now and I'd like
01:46:37.100 --> 01:46:40.180
to take any questions from them.
01:46:40.180 --> 01:46:43.950
President Batjer if you
have any, you know,
01:46:43.950 --> 01:46:45.920
good place to start.
01:46:45.920 --> 01:46:47.760
Well, thank you very much Karen
01:46:47.760 --> 01:46:50.450
and I really appreciate this panel.
01:46:50.450 --> 01:46:52.880
Very interesting, very telling,
01:46:52.880 --> 01:46:56.640
I greatly appreciate the frankness
01:46:56.640 --> 01:46:59.360
and the good recommendations
that have been made,
01:46:59.360 --> 01:47:02.880
I have a question for
both Fred and Kevin.
01:47:02.880 --> 01:47:05.510
One I'd like to know what
community you're calling
01:47:05.510 --> 01:47:10.510
from Fred and and
Kevin too and both Plumas
01:47:11.220 --> 01:47:14.579
and Mono experience PSPS.
01:47:14.579 --> 01:47:16.880
I think Fred you represent
01:47:16.880 --> 01:47:19.790
the southern part of the
county and that part of county
01:47:19.790 --> 01:47:24.620
has had several power
shut offs in the last year
01:47:24.620 --> 01:47:27.160
as well as this year already
01:47:27.160 --> 01:47:30.450
and I'm assuming all lines
go down at the same time
01:47:30.450 --> 01:47:32.730
so you don't have power
and you don't have any kind
01:47:32.730 --> 01:47:35.853
of communications
abilities that is that correct?
01:47:37.100 --> 01:47:39.411
Would you like
me to take that first?
01:47:39.411 --> 01:47:40.611
Yeah, that'd be great.
01:47:41.770 --> 01:47:45.120
First I am calling
from Crowley Lake
01:47:45.120 --> 01:47:48.550
which is on highway
395 about 10 miles south
01:47:48.550 --> 01:47:50.630
of Mammoth Lakes, it's where I live.
01:47:50.630 --> 01:47:53.570
I know 395 very well, I
grew up in Carson City,
01:47:53.570 --> 01:47:55.424
Nevada so ... Okay.
01:47:55.424 --> 01:47:59.190
And my family is
the Pioneering family
01:47:59.190 --> 01:48:03.240
from Smith Valley so I
know and I was a ski racer
01:48:03.240 --> 01:48:05.364
so I spent a lot of my youth at Mammoth.
01:48:05.364 --> 01:48:07.760
(laughs)
01:48:07.760 --> 01:48:11.240
It will be interesting to
see how Mammoth deals
01:48:11.240 --> 01:48:13.363
with COVID in reopening.
01:48:16.950 --> 01:48:20.060
California Public Health as dealing
01:48:20.060 --> 01:48:22.360
with cold weather
environments is something
01:48:22.360 --> 01:48:26.530
that they're having to learn
about as we as we go forward.
01:48:26.530 --> 01:48:28.040
To your other questions, yes,
01:48:28.040 --> 01:48:33.040
several PSPS events circuit information
01:48:34.040 --> 01:48:38.030
through the original ones
was very vague from SCE
01:48:38.030 --> 01:48:40.090
this is an SCE county not PG&E.
01:48:40.090 --> 01:48:44.630
And to their credit,
01:48:44.630 --> 01:48:48.670
SCE has improved that
information quite a bit
01:48:48.670 --> 01:48:52.190
so we know which
circuits will be impacted.
01:48:52.190 --> 01:48:56.100
Some circuits particularly
seem to get hit every single time
01:48:56.100 --> 01:48:59.550
and when the power goes
out in those areas, yes,
01:48:59.550 --> 01:49:04.550
there is if phone service
goes down with it due to a lack
01:49:04.980 --> 01:49:09.040
of power redundancy
in the Frontier system.
01:49:09.040 --> 01:49:12.660
One of the reasons I do
maintain an old landline
01:49:12.660 --> 01:49:15.300
is because I'm fortunate to have one
01:49:15.300 --> 01:49:20.300
of the main original Verizon
offices in my community
01:49:20.579 --> 01:49:24.140
where the old phone
systems still will function
01:49:24.140 --> 01:49:26.010
even if the power's out.
01:49:26.010 --> 01:49:28.470
However many the other communities do
01:49:28.470 --> 01:49:33.470
not have that advantage, if
you will and suffer outages
01:49:35.410 --> 01:49:38.820
and when that happens
if that is in a community
01:49:38.820 --> 01:49:41.500
that also does not have
cell service and much
01:49:41.500 --> 01:49:44.075
of my district does
not have cell service,
01:49:44.075 --> 01:49:48.860
my cell service coverage
in my area is confined
01:49:48.860 --> 01:49:52.430
to one company and I
do not use that company
01:49:52.430 --> 01:49:55.220
because half my district
is on AT&T and half
01:49:55.220 --> 01:50:00.220
is on Verizon so I just
picked AT&T to serve my folks.
01:50:03.510 --> 01:50:06.380
But when you have
no high speed internet,
01:50:06.380 --> 01:50:10.720
you have no voice over potential
even when you have power,
01:50:10.720 --> 01:50:14.290
you have no cell service
and you have no telephone,
01:50:14.290 --> 01:50:17.780
you're down to driving
down to the highway
01:50:17.780 --> 01:50:19.910
and flagging somebody down and hopefully
01:50:19.910 --> 01:50:21.543
they have a satellite phone.
01:50:22.930 --> 01:50:25.020
Hopefully that answered your
question, thank you for asking.
01:50:25.020 --> 01:50:30.020
Yeah, the Commission has
been active in making sure
01:50:30.670 --> 01:50:34.020
that there was good
communication between both Edison
01:50:34.020 --> 01:50:36.460
and telecommunications
companies that serve
01:50:36.460 --> 01:50:41.430
the Edison service area as well asPG&E
01:50:41.430 --> 01:50:45.080
so something that I'll
follow up on and Kevin,
01:50:45.080 --> 01:50:48.766
same question to you regarding the PSPS
01:50:48.766 --> 01:50:53.300
that Plumas county has
experienced and what what happens
01:50:53.300 --> 01:50:57.440
to your community when it
comes to no power and no phones?
01:50:57.440 --> 01:50:58.860
Sure, sure.
01:50:58.860 --> 01:51:00.310
First of all, I'm calling
from Greenville,
01:51:00.310 --> 01:51:03.060
California, pretty much at
the center of Plumas County.
01:51:04.120 --> 01:51:06.530
When the power does go down here,
01:51:06.530 --> 01:51:11.530
whether it's winter storm
related or PSPS related,
01:51:12.470 --> 01:51:14.540
here in Greenville there
is a generator that kicks
01:51:14.540 --> 01:51:19.540
on at Frontiers thing
here that does re-energize
01:51:19.830 --> 01:51:22.740
the line so I will say that
if you have a generator
01:51:22.740 --> 01:51:24.810
and you're available to
get to power up and going
01:51:24.810 --> 01:51:27.610
or you have a old
fashioned princess phone
01:51:27.610 --> 01:51:29.100
that plugs right in, you'll be able
01:51:29.100 --> 01:51:32.440
to call out normally unless
there is some damage
01:51:32.440 --> 01:51:36.440
to lines such as I
alluded to earlier during
01:51:36.440 --> 01:51:38.640
the Hog Fire where
the main line coming out
01:51:38.640 --> 01:51:43.220
of Susanville was completely
damaged and took them three
01:51:43.220 --> 01:51:47.460
or four days to repair with
no redundancy or no backup
01:51:47.460 --> 01:51:49.130
but I will say that there
is a generator here
01:51:49.130 --> 01:51:51.140
that does pop on and so when we are able
01:51:51.140 --> 01:51:53.870
to get our generator up
and going here at our store,
01:51:53.870 --> 01:51:56.280
we do have internet capability
01:51:57.450 --> 01:52:02.360
that would be limited
but yes, it is available.
01:52:02.360 --> 01:52:03.820
And your own generator,
01:52:03.820 --> 01:52:06.230
how much time do you
have on that generator?
01:52:06.230 --> 01:52:07.800
Eight hours.
01:52:07.800 --> 01:52:09.753
Okay, got it, all
right thank you ...
01:52:09.753 --> 01:52:12.119
You know, I have a
refrigerator full of about 50
01:52:12.119 --> 01:52:13.683
to $60,000 worth of medications
01:52:13.683 --> 01:52:16.900
that I also have to
maintain so it's critical
01:52:16.900 --> 01:52:21.680
that I have communications with my modem
01:52:21.680 --> 01:52:22.553
that will start my generator
01:52:22.553 --> 01:52:24.980
because I live about
half an hour out of town
01:52:24.980 --> 01:52:26.804
so you don't have to ever come
01:52:26.804 --> 01:52:31.720
in and manually start
up the system only.
01:52:31.720 --> 01:52:33.403
Okay, thank you
both Fred and Kevin,
01:52:33.403 --> 01:52:34.823
I appreciate your answers.
01:52:36.080 --> 01:52:37.113
That's all Karen.
01:52:37.980 --> 01:52:39.340
Okay, thank you very much.
01:52:39.340 --> 01:52:40.751
Commissioner Guzman Aceves,
01:52:40.751 --> 01:52:43.023
do you have questions for the panel?
01:52:47.230 --> 01:52:50.190
Thank you, Karen and
thank you again to all
01:52:50.190 --> 01:52:52.490
of the speakers and all the dedication
01:52:52.490 --> 01:52:55.530
that you have to your
communities and and all
01:52:55.530 --> 01:52:57.553
the customers that reside there.
01:52:58.510 --> 01:53:01.930
I have a lot of questions
some of them are more
01:53:01.930 --> 01:53:05.890
for trying to understand why Frontier
01:53:05.890 --> 01:53:08.493
has really lacked the follow up here.
01:53:10.750 --> 01:53:14.770
And I certainly I think it was Matt
01:53:14.770 --> 01:53:17.740
that mentioned or maybe it wasn't,
01:53:17.740 --> 01:53:19.380
I can't remember which of you mentioned
01:53:19.380 --> 01:53:24.180
the challenge process,
maybe it was Supervisor Stump
01:53:24.180 --> 01:53:27.210
and how that's an issue that I think
01:53:27.210 --> 01:53:31.680
is particularly
outrageous in that not only
01:53:31.680 --> 01:53:34.620
is there a commitment to
upgrade the infrastructure
01:53:35.643 --> 01:53:39.870
but when there is local
innovation and you're coming
01:53:39.870 --> 01:53:43.430
into to really put a stop to that.
01:53:43.430 --> 01:53:48.430
So I certainly would like to
hear more about those details,
01:53:48.750 --> 01:53:52.550
that doesn't have to be today
because we need to ensure
01:53:52.550 --> 01:53:56.390
that you in this process
or another of our processes
01:53:56.390 --> 01:54:00.120
that we are not allowing
for that innovation to happen
01:54:00.120 --> 01:54:03.253
so that folks can actually get service.
01:54:04.910 --> 01:54:08.210
I did wanna ask perhaps a question,
01:54:08.210 --> 01:54:12.527
I think Matt was one of the
folks who said, you know,
01:54:12.527 --> 01:54:15.880
the Frontiers kind of put
out this concept of ImproveCo
01:54:15.880 --> 01:54:18.522
and Invesco and my biggest fear
01:54:18.522 --> 01:54:22.960
is that the ImproveCo territory
that might frankly overlap
01:54:22.960 --> 01:54:26.480
with your community, may be something
01:54:26.480 --> 01:54:30.610
that they're looking to do less
01:54:30.610 --> 01:54:33.710
with or potentially fell down the line,
01:54:33.710 --> 01:54:36.340
I really don't know but
the fact that they've made
01:54:36.340 --> 01:54:38.840
this bifurcation is concerning.
01:54:38.840 --> 01:54:42.817
And, you know, Matt you
made kind of an offering
01:54:42.817 --> 01:54:47.750
of a discussion of a potential option,
01:54:47.750 --> 01:54:52.610
I wonder for Dore or Fred or
Jose Antonio or anybody else,
01:54:52.610 --> 01:54:56.940
is that's something that
you think is an option for you?
01:54:56.940 --> 01:55:01.940
And I don't know if I'm being
clear here but but maybe Dore
01:55:04.090 --> 01:55:06.933
if you wanna start and
maybe go through lines quickly.
01:55:11.890 --> 01:55:14.950
I mean are we open to
those ideas and suggestions?
01:55:14.950 --> 01:55:19.610
Absolutely and I think
that Matt, you know,
01:55:19.610 --> 01:55:24.610
hit on some very
important key points that we
01:55:25.120 --> 01:55:27.850
have to have those discussions
and how do we do that?
01:55:27.850 --> 01:55:30.330
Yeah, absolutely, we
would be open to that.
01:55:34.930 --> 01:55:36.890
Commissioner Aceves,
this is Jose Antonio.
01:55:36.890 --> 01:55:40.030
Absolutely I'm open to that as well,
01:55:40.030 --> 01:55:44.950
I think that there's been
a lot of lessons learned
01:55:44.950 --> 01:55:47.574
through this conversation
and it's pretty tough
01:55:47.574 --> 01:55:50.700
to hear some of the
comments but communicating
01:55:50.700 --> 01:55:54.172
the truth and then using that
as the base to move forward.
01:55:54.172 --> 01:55:59.172
My other concern for me
is, you know, it's Frontier,
01:55:59.720 --> 01:56:01.350
if we're not to move
forward and Frontier
01:56:01.350 --> 01:56:04.380
was to start selling
things off, you know,
01:56:04.380 --> 01:56:06.280
would we be in a better spot?
01:56:06.280 --> 01:56:08.920
I don't know, I don't
know if that'll be the case
01:56:08.920 --> 01:56:13.717
so that's why I made a comment
online here about the MOU
01:56:14.830 --> 01:56:18.789
between Frontier and
CETF and the public benefits
01:56:18.789 --> 01:56:23.210
and getting them back to
towards economic health
01:56:23.210 --> 01:56:24.610
so I'm definitely open.
01:56:32.130 --> 01:56:32.963
Is it my turn?
01:56:35.370 --> 01:56:37.670
Matt, did you have
something to say on that?
01:56:40.568 --> 01:56:42.640
Yeah, I can expand
on that a little bit.
01:56:42.640 --> 01:56:47.640
So I think the biggest
fear is that the we're going
01:56:48.960 --> 01:56:50.860
to see two different parts of Frontier,
01:56:50.860 --> 01:56:51.973
the parts that they
support and the parts
01:56:51.973 --> 01:56:56.973
that they don't support and
the failure and the widening
01:56:57.520 --> 01:57:00.980
of the digital divide in that
area where you're trapped
01:57:00.980 --> 01:57:03.827
in a Frontier property
that doesn't have support
01:57:03.827 --> 01:57:05.413
and it doesn't have a feature.
01:57:06.370 --> 01:57:10.570
So we would be more
interested in having discussions
01:57:10.570 --> 01:57:14.520
with Frontier about, you
know, closing off that asset
01:57:14.520 --> 01:57:16.830
and right away and the opportunity
01:57:16.830 --> 01:57:20.770
there to maybe do
something locally instead
01:57:20.770 --> 01:57:23.450
of have it become dormant
but still part of a company
01:57:23.450 --> 01:57:25.850
that's fighting against
you bringing innovation.
01:57:30.350 --> 01:57:32.880
Thank you, Supervisors
Stump, we will go to you next.
01:57:32.880 --> 01:57:37.880
Yeah, I would in fact
concur with those comments.
01:57:38.090 --> 01:57:41.060
When you talk about Frontiers future,
01:57:41.060 --> 01:57:45.280
checking share price
today it's 26 cents a share,
01:57:45.280 --> 01:57:49.203
Verizon on the other
hand is 5966 a share,
01:57:50.670 --> 01:57:54.363
calls into question the viability
of the company as a whole.
01:57:55.866 --> 01:57:58.700
My concern is as they
spin off potentially pieces
01:57:58.700 --> 01:58:03.700
that are not producing
for them that the situation
01:58:05.480 --> 01:58:09.400
just described by Matt could occur.
01:58:09.400 --> 01:58:11.430
From a county perspective,
we are interested
01:58:11.430 --> 01:58:15.870
in any discussion that
will enable any resident
01:58:15.870 --> 01:58:20.870
to have high speed internet
and reliable phone service
01:58:21.250 --> 01:58:22.293
and Communications.
01:58:24.510 --> 01:58:27.890
Thank you Supervisor Goss,
would you like to take part
01:58:27.890 --> 01:58:28.840
of that question?
01:58:28.840 --> 01:58:30.430
Yeah, I would
concur with everybody
01:58:30.430 --> 01:58:34.000
that spoke but I will
also say that we we too
01:58:34.000 --> 01:58:37.940
would be interested at a
county level of any kind of a,
01:58:37.940 --> 01:58:40.270
maybe an independent district
or an independent company
01:58:40.270 --> 01:58:41.103
or something.
01:58:41.103 --> 01:58:43.080
I mean, I don't think
the county wants to get
01:58:43.080 --> 01:58:46.030
into the internet
business, not necessarily,
01:58:46.030 --> 01:58:51.030
not right now anyway
but it would be proactive
01:58:51.891 --> 01:58:56.891
and productive conversation
to be able to have with some
01:58:56.980 --> 01:59:00.130
of our partners and
have Frontier at the table,
01:59:00.130 --> 01:59:02.630
willing to maybe carve
some of their stuff out
01:59:04.394 --> 01:59:08.023
or carve their sections
of their infrastructure out
01:59:09.160 --> 01:59:12.190
to be able to give the
citizens of Plumas County,
01:59:12.190 --> 01:59:13.800
good, fast, reliable internet.
01:59:13.800 --> 01:59:16.840
I know that a lot of folks
I'm running for reelection
01:59:16.840 --> 01:59:19.590
and one of individuals
that's running against me
01:59:19.590 --> 01:59:24.590
is really high on the wireless
aspect of providing internet
01:59:24.860 --> 01:59:28.550
up here which has its
drawbacks as well but I think
01:59:30.450 --> 01:59:33.500
if we can get some good
fiber up here or activate
01:59:33.500 --> 01:59:37.460
the fiber that's already here
and connect the, you know,
01:59:37.460 --> 01:59:38.800
other companies together to us,
01:59:38.800 --> 01:59:41.980
I think would be so beneficial
and we would look forward
01:59:41.980 --> 01:59:43.163
to those conversations.
01:59:46.070 --> 01:59:46.903
Thank you.
01:59:46.903 --> 01:59:49.310
Commissioner do you want to maybe go
01:59:49.310 --> 01:59:52.840
to the other Commissioners
and then come back to you?
01:59:52.840 --> 01:59:54.530
Yes, please.
01:59:54.530 --> 01:59:57.540
Okay, Commissioner
Rechtschaffen,
01:59:57.540 --> 01:59:59.853
do you want to go with the question?
02:00:01.640 --> 02:00:03.070
Thank you.
02:00:03.070 --> 02:00:07.500
I don't know if we have
the ability to have Allison
02:00:07.500 --> 02:00:12.500
or Kevin from Frontier respond
to some of what we've heard,
02:00:12.970 --> 02:00:15.880
if so I would like if they
could respond briefly,
02:00:15.880 --> 02:00:20.880
Dore and Matt raised
some very troubling concerns
02:00:20.930 --> 02:00:21.763
which of course,
02:00:21.763 --> 02:00:24.740
are not new but
particularly highlighted vividly
02:00:25.930 --> 02:00:29.240
how the lack of investment
and the opposition
02:00:29.240 --> 02:00:31.310
that Frontier has been interposing
02:00:31.310 --> 02:00:36.310
to new creative approaches
and service configurations
02:00:37.790 --> 02:00:42.790
to provide a modern internet
speed wall while arguing
02:00:45.100 --> 02:00:47.660
for all legacy solutions.
02:00:47.660 --> 02:00:50.590
I don't know if Allison
or Kevin are still on,
02:00:50.590 --> 02:00:52.850
if they could respond
in particular to Matt
02:00:52.850 --> 02:00:54.880
because Matt criticisms
02:00:54.880 --> 02:00:59.070
and also Supervisor Stump
who indicated that Frontier
02:00:59.967 --> 02:01:01.980
has not only been not proactive
02:01:01.980 --> 02:01:05.163
but it's actively
blocking other solutions.
02:01:06.420 --> 02:01:10.511
If not, we can ask
them to respond offline
02:01:10.511 --> 02:01:12.630
after this hearing.
02:01:13.730 --> 02:01:15.943
This is Allison Ellis,
can you hear me?
02:01:16.950 --> 02:01:18.940
Yes, we can Alison.
02:01:18.940 --> 02:01:21.870
Yes, I'm happy to
Commissioner to give him a bit
02:01:21.870 --> 02:01:22.703
of a response.
02:01:22.703 --> 02:01:25.280
I mean, I think at the high level,
02:01:25.280 --> 02:01:28.480
the speakers are all illustrating
some of the challenges
02:01:28.480 --> 02:01:30.990
that we face in serving
some of our rural
02:01:30.990 --> 02:01:34.000
and low density
footprint and the expense
02:01:34.000 --> 02:01:36.370
and difficulty associated
with doing that is,
02:01:36.370 --> 02:01:38.543
you know, quite frankly
one of the reasons we
02:01:38.543 --> 02:01:41.690
have found ourselves
in financial distress
02:01:41.690 --> 02:01:43.670
and needing to avail ourselves
02:01:43.670 --> 02:01:47.530
of the Chapter 11 bankruptcy
reorganization process.
02:01:47.530 --> 02:01:51.100
We have, you know, worked to
deploy services independently
02:01:51.100 --> 02:01:55.027
where we could and we have
also utilized a CAF II funding
02:01:55.027 --> 02:01:58.290
and CASF funding where
that's been permissible.
02:01:58.290 --> 02:02:00.960
And I think in all of the
areas represented today,
02:02:00.960 --> 02:02:04.890
there have been some, you
know, CAF II investments.
02:02:04.890 --> 02:02:06.737
I guess I would just
remind the Commission
02:02:06.737 --> 02:02:10.210
and the participants that
it's the FCC who identifies
02:02:10.210 --> 02:02:12.770
those locations, not Frontier,
02:02:12.770 --> 02:02:16.690
in terms of eligibility where
the money can be deployed
02:02:16.690 --> 02:02:19.830
and sort of similarly
with CASF, you know,
02:02:19.830 --> 02:02:22.360
it's the Commission that
makes the determination
02:02:22.360 --> 02:02:27.360
of whether the program, you
know, the project is, you know,
02:02:28.130 --> 02:02:29.420
should be funded.
02:02:29.420 --> 02:02:31.670
I can tell you that from Frontiers Part,
02:02:31.670 --> 02:02:35.910
we typically focus our CASF
grant proposals on you know,
02:02:35.910 --> 02:02:39.150
really those areas that
are rural and underserved
02:02:39.150 --> 02:02:42.280
and where we are looking
to be able to maximize
02:02:42.280 --> 02:02:47.170
the impact of the, you know,
of the of the state funding
02:02:47.170 --> 02:02:50.030
and really be a good
steward of that funding.
02:02:50.030 --> 02:02:54.670
We, you know, have made
improvements and projects,
02:02:54.670 --> 02:02:59.670
improvements and broadband
projects in many of these areas.
02:03:00.030 --> 02:03:04.540
You know, just actually the
summer in Tuolumne we upgraded
02:03:04.540 --> 02:03:07.653
this, you know, very old sonnet network,
02:03:08.580 --> 02:03:10.830
the speaker is correct, there
was some old facilities there.
02:03:10.830 --> 02:03:15.180
We upgraded it to deploy
a 10 gig circuit and that,
02:03:15.180 --> 02:03:17.460
you know, will be a big
improvement for that area.
02:03:17.460 --> 02:03:21.210
It expensive Ethernet
access and capabilities
02:03:21.210 --> 02:03:25.050
there and it also relieves
broadband congestion and,
02:03:25.050 --> 02:03:28.410
you know, that's just one
example there are other projects
02:03:28.410 --> 02:03:30.360
in other areas.
02:03:30.360 --> 02:03:33.380
You know, in Plumas County
we have a two phase project
02:03:33.380 --> 02:03:35.580
and that in the northeast area,
02:03:35.580 --> 02:03:38.100
one has already been
funded by the Commission
02:03:38.100 --> 02:03:39.850
but then there's another project that we
02:03:39.850 --> 02:03:43.800
have actually pending before
the Commission for approval,
02:03:43.800 --> 02:03:46.877
this is one of our fiber to
the premises projects and,
02:03:46.877 --> 02:03:49.020
you know, that has the ability,
02:03:49.020 --> 02:03:50.910
if funded to provide
02:03:50.910 --> 02:03:55.180
some significant additional
capabilities in that community.
02:03:55.180 --> 02:03:58.910
So, you know, I definitely
hear the panelists,
02:03:58.910 --> 02:04:01.410
I'm not discounting
the panelists frustration
02:04:01.410 --> 02:04:03.870
or experience with Frontier in the past
02:04:03.870 --> 02:04:06.930
but I do think it's illustrative
just to point out that,
02:04:06.930 --> 02:04:10.420
you know, these are very
difficult areas to serve and,
02:04:10.420 --> 02:04:12.797
you know, we take our, you know,
02:04:13.700 --> 02:04:18.520
responsibility to do our
best given the constraints
02:04:18.520 --> 02:04:21.840
that we just have as a private
company that doesn't get,
02:04:21.840 --> 02:04:25.950
you know, a return on every
investment that we make
02:04:25.950 --> 02:04:29.593
to improve services and
expand them where we can.
02:04:31.350 --> 02:04:33.253
Thank you Ms. Ellis.
02:04:35.036 --> 02:04:38.360
Commissioner Randolph,
I'm looking at you,
02:04:38.360 --> 02:04:40.263
would you like to take a question?
02:04:41.427 --> 02:04:46.427
Yes, one of the things I
found striking about some
02:04:47.810 --> 02:04:51.700
of the comments was particularly
Matt's comments about sort
02:04:52.609 --> 02:04:54.270
of the stop and start of the contact,
02:04:54.270 --> 02:04:56.700
like we're gonna be really
enthusiastic about working
02:04:56.700 --> 02:04:59.283
with you and then and
then we're gonna disappear.
02:05:00.210 --> 02:05:05.210
Do any of the panelists
have examples of companies
02:05:07.970 --> 02:05:09.490
that are doing it correctly,
02:05:09.490 --> 02:05:13.870
that might be sort of ones
that you could recommend
02:05:13.870 --> 02:05:18.220
to Frontier in terms of good examples
02:05:18.220 --> 02:05:22.350
of community engagement from companies
02:05:22.350 --> 02:05:24.810
because I gotta tell you,
most feedback we get
02:05:24.810 --> 02:05:27.890
is that nobody seems to
be doing this all that well
02:05:27.890 --> 02:05:30.570
so I would love to know
if there's anybody who
02:05:30.570 --> 02:05:35.373
is more effectively
doing this kind of work.
02:05:36.970 --> 02:05:40.220
This is Matt, I'll chime
in on that real fast,
02:05:40.220 --> 02:05:41.466
thank you Commissioner.
02:05:41.466 --> 02:05:45.620
The experience we've
had with all of the carriers
02:05:45.620 --> 02:05:49.840
in our region in Southern
California has, you know,
02:05:49.840 --> 02:05:53.770
not been 100% what we've
been interested in dealing with,
02:05:53.770 --> 02:05:57.180
it's been very difficult
to get to the right people
02:05:57.180 --> 02:06:00.060
at an organization to actually
have meaningful conversations
02:06:00.060 --> 02:06:02.670
where we can find
solutions for, you know,
02:06:02.670 --> 02:06:04.730
getting access to, you know,
02:06:04.730 --> 02:06:06.840
bigger broadband pipe especially
02:06:06.840 --> 02:06:08.220
for the tribal digital village network
02:06:08.220 --> 02:06:09.730
where we build our own resources
02:06:09.730 --> 02:06:11.813
because they're not building out to us.
02:06:13.370 --> 02:06:15.520
Where we've had our best traction
02:06:15.520 --> 02:06:17.993
is through the State Department,
02:06:19.280 --> 02:06:24.280
the CTO and the CIO offices of the state
02:06:24.670 --> 02:06:27.300
and having those relationships
02:06:27.300 --> 02:06:31.280
and having those departments
help us establish meetings
02:06:31.280 --> 02:06:35.260
and establish interaction
with those carriers that we wish
02:06:35.260 --> 02:06:40.260
to engage with and Carlos
Ramos back in the day extended
02:06:43.320 --> 02:06:46.490
the state's broadband pricing to tribes
02:06:46.490 --> 02:06:51.250
and negotiation support in
getting into those meetings
02:06:51.250 --> 02:06:55.050
and we've taken absolute
advantage of that offer back
02:06:55.050 --> 02:07:00.050
in the day and it's how we
have the the connections
02:07:00.420 --> 02:07:02.550
that we we have now.
02:07:02.550 --> 02:07:05.860
We have a connection to
AT&T which has migrated
02:07:05.860 --> 02:07:09.250
over to a CENIC network
connection which is, you know,
02:07:09.250 --> 02:07:12.200
far advantageous to us
being on the CENIC network
02:07:12.200 --> 02:07:15.330
and having access to all the
resources of CENIC as well.
02:07:15.330 --> 02:07:17.890
But even with CenturyLink,
in the in the southeast part
02:07:17.890 --> 02:07:21.800
of the county, the department
helped us get in the door
02:07:21.800 --> 02:07:26.690
with CenturyLink and
negotiates the state's rates
02:07:26.690 --> 02:07:29.350
and even then build a relationship
02:07:29.350 --> 02:07:32.880
where I can negotiate further
with without organization
02:07:32.880 --> 02:07:36.010
so I've always just said
it's done a lot of work
02:07:36.010 --> 02:07:38.980
with us to be able
to get a better result
02:07:38.980 --> 02:07:41.460
than I could get getting
through the front door.
02:07:41.460 --> 02:07:43.343
I felt like I never got to the people
02:07:43.343 --> 02:07:47.923
that could make these deals
without that assistance so,
02:07:49.385 --> 02:07:51.660
you know, none of them are perfect,
02:07:51.660 --> 02:07:54.853
some of them once engaged
are much better than others.
02:07:56.940 --> 02:07:59.730
Do any of the other
panelists have an example
02:07:59.730 --> 02:08:01.793
for Commissioner Randolph?
02:08:03.050 --> 02:08:06.340
This is a Fred
stump and thank you
02:08:06.340 --> 02:08:08.110
for asking that question.
02:08:08.110 --> 02:08:12.170
We do have a local entity that serves
02:08:12.170 --> 02:08:16.240
as tapped into the Digital
395 fiber optic system
02:08:16.240 --> 02:08:19.610
has actually constructed
fiber optics to homes
02:08:19.610 --> 02:08:21.610
that's raised communication,
02:08:21.610 --> 02:08:25.900
grant funding from the
CPUC enabled that company
02:08:25.900 --> 02:08:29.500
to reach out in several of
the county communities,
02:08:29.500 --> 02:08:34.500
their pricing is reasonable
and in terms of functionality
02:08:35.040 --> 02:08:38.110
and reliability,
they're clearly superior
02:08:38.110 --> 02:08:39.950
to the areas served by Frontier.
02:08:39.950 --> 02:08:43.250
Frontier does advertise
DSL in some communities
02:08:43.250 --> 02:08:47.360
but that DSL relies
again on old infrastructure
02:08:47.360 --> 02:08:50.200
and does not reach
or has a limited reach
02:08:50.200 --> 02:08:53.430
from where the point of origin is.
02:08:53.430 --> 02:08:58.430
And the back to the Digital
395 component, it is there,
02:09:00.450 --> 02:09:04.230
it is this not being utilized
currently by this company
02:09:04.230 --> 02:09:07.410
in a way that could
alleviate some of the issues
02:09:07.410 --> 02:09:08.593
that I spoke about.
02:09:11.150 --> 02:09:13.840
I'll just chime in
real quick Kevin Goss,
02:09:13.840 --> 02:09:16.190
just talking about the fiber optic
02:09:16.190 --> 02:09:19.517
that I was mentioning
that was up to Susanville
02:09:19.517 --> 02:09:23.450
and out to Pluma Feather River College
02:09:23.450 --> 02:09:26.420
was put in by Plumas-Sierra
Rural Electric Cooperative who
02:09:26.420 --> 02:09:31.420
was a electrical company
mainly and then went
02:09:32.010 --> 02:09:36.600
into the digital arena with the funds
02:09:36.600 --> 02:09:40.260
and was able to bring that
fiber optic to Plumas County,
02:09:40.260 --> 02:09:44.000
whereas a sense has
just stopped on either side
02:09:44.000 --> 02:09:48.329
of Indian Valley, Chester-Lake
Almanor and Lake Almanor is,
02:09:48.329 --> 02:09:50.610
you know, one of the huge
areas that is underserved
02:09:50.610 --> 02:09:54.610
as well and is one of
our most growing areas
02:09:54.610 --> 02:09:57.500
as far as folks coming
up from the valley
02:09:57.500 --> 02:10:00.260
and us growing our county populations.
02:10:00.260 --> 02:10:02.230
But anyway Plumas-Sierra
Rural Electric I think
02:10:02.230 --> 02:10:04.863
would be a good contact, a good example.
02:10:07.510 --> 02:10:08.873
Thank you very much.
02:10:09.850 --> 02:10:11.063
Commissioner Shiroma ...
02:10:11.909 --> 02:10:15.513
That's good to hear that
it can be done, thank you.
02:10:19.070 --> 02:10:20.070
Commissioner Shiroma,
02:10:20.070 --> 02:10:22.030
do you have a question you'd like to ask
02:10:22.030 --> 02:10:24.273
the panelists or multiple questions?
02:10:26.940 --> 02:10:31.770
Actually, this
question is for Frontier,
02:10:31.770 --> 02:10:36.500
is Allison is still on
the line or Kevin?
02:10:36.500 --> 02:10:41.500
So I live in Sacramento
and years ago Frontier
02:10:45.390 --> 02:10:47.560
was in the South County area,
02:10:47.560 --> 02:10:51.870
Elk Grove and anecdotally even then,
02:10:51.870 --> 02:10:55.440
we just hear a lot of complaints
02:10:55.440 --> 02:10:59.090
and at that time I was
serving as an elected
02:10:59.090 --> 02:11:03.770
on the Sacramento
Municipal Utility District Board
02:11:03.770 --> 02:11:05.873
and we launched an initiative
02:11:05.873 --> 02:11:10.723
to garner 95% customer
satisfaction from our customers.
02:11:12.710 --> 02:11:16.460
So my question is, for Frontier,
02:11:16.460 --> 02:11:20.240
do you have a written policy
02:11:20.240 --> 02:11:25.240
on customer service slash
satisfaction slash experience?
02:11:28.690 --> 02:11:32.977
And you've heard the
complaints and the complaints
02:11:32.977 --> 02:11:37.200
have been going on for
years and our Cap unit
02:11:37.200 --> 02:11:39.843
has received thousands of complaints,
02:11:41.160 --> 02:11:46.160
do you have a root cause
analysis or what's going
02:11:47.230 --> 02:11:51.330
on other than just putting
up with complaints?
02:11:51.330 --> 02:11:56.330
Yes and have you done
a root cause assessment
02:11:56.350 --> 02:12:01.223
of yourself on what is causing
it and what needs to change?
02:12:02.550 --> 02:12:06.180
If you haven't, that's the
ultimate answer to the question.
02:12:07.909 --> 02:12:08.780
You know, written policies
02:12:08.780 --> 02:12:13.200
and also have you done
a deep root cause analysis
02:12:13.200 --> 02:12:15.020
on what's going on with ...
02:12:15.020 --> 02:12:16.863
Ms. Ellis, are
you still with us?
02:12:17.890 --> 02:12:21.180
Yes, I am and and I have
actually turned on my video,
02:12:21.180 --> 02:12:22.013
can you see me?
02:12:23.823 --> 02:12:24.656
Yes.
02:12:24.656 --> 02:12:25.489
Okay, perfect.
02:12:25.489 --> 02:12:29.634
So, yes, generally, I mean,
02:12:29.634 --> 02:12:32.440
we do look at the
complaints that we get,
02:12:32.440 --> 02:12:37.160
we do a deep dive on
various complaints to identify
02:12:37.160 --> 02:12:42.160
that areas and the issues that
consumers are having with us.
02:12:42.561 --> 02:12:45.220
As you can imagine because our service
02:12:45.220 --> 02:12:47.740
is so particularized and you know,
02:12:47.740 --> 02:12:51.440
a situation is different based
on somebody's distance
02:12:51.440 --> 02:12:54.700
to our equipment,
sometimes but the complaints
02:12:54.700 --> 02:12:59.700
are often quite specific
to a specific customer.
02:12:59.880 --> 02:13:03.130
We do value customer service,
02:13:03.130 --> 02:13:08.130
we do value providing good
customer service and, you know,
02:13:10.320 --> 02:13:14.320
we measure ourselves on what customers
02:13:14.320 --> 02:13:16.570
are saying about
their experience with us
02:13:16.570 --> 02:13:18.570
in the marketplace.
02:13:18.570 --> 02:13:21.240
We have had a variety of initiatives
02:13:21.240 --> 02:13:23.210
over the last several years to work
02:13:23.210 --> 02:13:27.660
to improve how customers
perceive their interactions
02:13:27.660 --> 02:13:30.840
with us, we've introduced
a number of additional tools
02:13:30.840 --> 02:13:34.410
that enable customers to
communicate with us in formats
02:13:34.410 --> 02:13:37.440
that they are increasingly
at least in the more urban
02:13:37.440 --> 02:13:41.383
and suburban areas wanting
to utilize such as through chat.
02:13:42.480 --> 02:13:45.780
You know, with our our new CEO,
02:13:45.780 --> 02:13:49.210
we have been implementing
some additional focus
02:13:49.210 --> 02:13:52.060
on customer service so, you know,
02:13:52.060 --> 02:13:53.730
it absolutely is something
that we care about,
02:13:53.730 --> 02:13:56.140
it's something that we
train our representatives on,
02:13:56.140 --> 02:13:59.860
it's something that we value
as a company but you know,
02:13:59.860 --> 02:14:01.690
I think people can appreciate
02:14:01.690 --> 02:14:03.830
from their own personal experience,
02:14:03.830 --> 02:14:05.305
it can be highly frustrating
02:14:05.305 --> 02:14:09.540
when your telecommunication
services don't work because,
02:14:09.540 --> 02:14:12.100
you know, we are
all increasingly reliant
02:14:12.100 --> 02:14:16.277
on various forms of
communications and that leads
02:14:18.220 --> 02:14:21.240
to a high level of complaint,
whether it's about Frontier
02:14:21.240 --> 02:14:24.667
or any other telecommunications provider
02:14:24.667 --> 02:14:27.530
and just as an industry, you know,
02:14:27.530 --> 02:14:30.450
it's an industry where
there is a high level
02:14:30.450 --> 02:14:34.170
of customer dissatisfaction
versus customer satisfaction.
02:14:34.170 --> 02:14:36.880
And I'm certainly not using
that as an excuse in any way
02:14:36.880 --> 02:14:40.630
but just giving it as a
context that if you look
02:14:40.630 --> 02:14:45.310
at how all communications
carriers perform, the, you know,
02:14:45.310 --> 02:14:47.150
the customer ratings of their service
02:14:47.150 --> 02:14:49.610
or their experience with
the company, you know,
02:14:49.610 --> 02:14:53.220
are generally not as positive as any
02:14:53.220 --> 02:14:54.570
of the carriers would like.
02:14:56.920 --> 02:14:58.087
Thank you Ms. Ellis.
02:14:58.968 --> 02:15:01.180
And have a policy,
I mean, actually,
02:15:01.180 --> 02:15:05.820
where your board of
directors has adopted a policy
02:15:05.820 --> 02:15:10.820
on customer service as a priority?
02:15:14.767 --> 02:15:16.250
We don't have, to my knowledge,
02:15:16.250 --> 02:15:20.630
we don't have a board level
approved customer service policy
02:15:20.630 --> 02:15:22.280
but as I said, you know,
02:15:22.280 --> 02:15:25.280
it is something that we
train our representatives
02:15:25.280 --> 02:15:26.850
and technicians too,
02:15:26.850 --> 02:15:30.010
it's a part of our strategic initiatives
02:15:30.010 --> 02:15:32.610
and so in that sense it's
something that management
02:15:32.610 --> 02:15:36.528
is very much aware of and
very much focused on and,
02:15:36.528 --> 02:15:40.770
you know, we have been seeing
incremental improvements year
02:15:40.770 --> 02:15:42.340
over year, you know, month over month,
02:15:42.340 --> 02:15:44.360
year over a year but we're certainly
02:15:44.360 --> 02:15:47.540
not at the level where
we want to be quite yet,
02:15:47.540 --> 02:15:50.520
that restructuring is
actually a very important part
02:15:50.520 --> 02:15:52.450
of our ability to deliver
02:15:52.450 --> 02:15:57.129
an improved customer service
experience to our customers.
02:15:57.129 --> 02:16:02.129
With the financial pressures
that we have been shouldering
02:16:02.940 --> 02:16:05.130
for the last several years,
you know, obviously,
02:16:05.130 --> 02:16:07.030
that puts a lot of pressure
on the organization
02:16:07.030 --> 02:16:09.400
just generally puts
pressure on, you know,
02:16:09.400 --> 02:16:12.420
the ability to go above
and beyond and do
02:16:12.420 --> 02:16:15.410
for the customer what we, you know,
02:16:15.410 --> 02:16:17.390
would otherwise be able to do
02:16:17.390 --> 02:16:19.490
if we didn't have the
financial constraints
02:16:19.490 --> 02:16:24.303
that we are currently
trying to eliminate frankly.
02:16:26.050 --> 02:16:27.580
Thank you, Commissioners,
02:16:27.580 --> 02:16:31.860
I know that you have many
more questions and follow up
02:16:31.860 --> 02:16:36.860
but we have planned for
time from the phone lines
02:16:38.160 --> 02:16:43.160
and email for questions for
this panel and we have many,
02:16:43.170 --> 02:16:44.580
many people on the phone.
02:16:44.580 --> 02:16:46.330
So with your permission,
02:16:46.330 --> 02:16:49.800
I'd like to move to the
to the phone part now
02:16:49.800 --> 02:16:50.700
if you don't mind.
02:16:56.691 --> 02:16:59.550
We will now open this
time for public input question
02:16:59.550 --> 02:17:00.383
or comment.
02:17:00.383 --> 02:17:02.450
Each speaker on the phone
02:17:02.450 --> 02:17:05.720
will have one and a
half minutes to speak
02:17:05.720 --> 02:17:09.980
or ask questions of the panel
so you will hear a bell sound
02:17:09.980 --> 02:17:14.300
when your time is up and I
ask you to please to respect
02:17:14.300 --> 02:17:17.060
that time because there
are many of you there.
02:17:17.060 --> 02:17:20.140
I will ask Llela to help
me with the emails
02:17:20.140 --> 02:17:22.623
after the callers have spoken.
02:17:23.470 --> 02:17:26.533
Operator, can you please
announce the first caller?
02:17:27.870 --> 02:17:30.220
The first caller is
Christine Marques,
02:17:30.220 --> 02:17:31.473
your line is now open.
02:17:33.710 --> 02:17:36.770
Good morning Commissioners
and good morning panelists.
02:17:36.770 --> 02:17:39.220
Thank you so much for the panel.
02:17:39.220 --> 02:17:42.620
It's been a wonderful conversation
02:17:44.451 --> 02:17:45.284
to really get you all together.
02:17:45.284 --> 02:17:48.950
Just a couple of thoughts and
hopefully questions actually.
02:17:48.950 --> 02:17:53.880
So TURN is, I guess
what I hear is a theme
02:17:53.880 --> 02:17:56.080
that the Commissioners
commented on as well
02:17:56.080 --> 02:17:59.440
which is a lack of
cooperation by Frontier
02:17:59.440 --> 02:18:01.360
with third party projects.
02:18:01.360 --> 02:18:03.390
All of you are thinking creatively,
02:18:03.390 --> 02:18:05.360
all of you are working to try to resolve
02:18:05.360 --> 02:18:07.980
the situation locally
and there does appear
02:18:07.980 --> 02:18:10.670
to be definitely a lack of
cooperation by Frontier
02:18:10.670 --> 02:18:13.180
on many levels and that is troubling.
02:18:13.180 --> 02:18:16.090
TURN is sympathetic to the high cost
02:18:16.090 --> 02:18:18.500
and the caller obligations
that frankly faces
02:18:18.500 --> 02:18:20.740
to serve these areas, we're cognizant
02:18:20.740 --> 02:18:22.300
of those and we are sympathetic
02:18:22.300 --> 02:18:25.003
to those but we also believe
that there's lots of tools
02:18:25.003 --> 02:18:28.200
that Frontier has to
address the high cost
02:18:28.200 --> 02:18:29.730
of serving these areas.
02:18:29.730 --> 02:18:32.664
There's funding,
federal and state funding
02:18:32.664 --> 02:18:36.200
and work that the Commission
has done and we all
02:18:36.200 --> 02:18:39.450
have done to try to help
Frontier serve these areas
02:18:39.450 --> 02:18:42.320
and yet we're still hearing
about lack of willingness
02:18:42.320 --> 02:18:44.570
to engage in local projects.
02:18:44.570 --> 02:18:49.250
So I have two questions
related to the restructuring.
02:18:49.250 --> 02:18:51.280
I wanna make sure that this issue,
02:18:51.280 --> 02:18:54.170
this lack of willingness
to cooperate is solved
02:18:54.170 --> 02:18:58.240
by this restructuring and that
this new group of investors,
02:18:58.240 --> 02:19:01.880
the new board of
directors is coming in willing
02:19:01.880 --> 02:19:06.797
to cooperate and in making
their investment decisions
02:19:06.797 --> 02:19:09.740
that issue.
02:19:09.740 --> 02:19:13.960
I wanna make sure that part
of the invest code decision
02:19:13.960 --> 02:19:17.110
is to bring in these folks
that are talking today
02:19:17.110 --> 02:19:20.760
and others to have the
investment being joint
02:19:20.760 --> 02:19:22.210
with these organizations
02:19:22.210 --> 02:19:26.240
and therefore I'm hoping
this docket can document both
02:19:26.240 --> 02:19:29.810
the right of first refusal
in CASF applications
02:19:31.380 --> 02:19:35.470
that Frontier has done plus
other less formal refusals
02:19:36.580 --> 02:19:38.210
to work with these organizations,
02:19:38.210 --> 02:19:40.530
we can document them here and ensure
02:19:40.530 --> 02:19:42.730
that the investment decisions being made
02:19:42.730 --> 02:19:46.490
at the management level
address those, thank you.
02:19:46.490 --> 02:19:48.085
Thank you Ms. Marques.
02:19:48.085 --> 02:19:49.835
Can we have the next caller please?
02:19:50.830 --> 02:19:53.333
I'm showing no further
callers at this time.
02:19:54.970 --> 02:19:59.970
Llela, can you please
look at the email?
02:20:02.650 --> 02:20:05.250
Absolutely, we have two emails.
02:20:05.250 --> 02:20:07.210
One, let me start with the first one,
02:20:07.210 --> 02:20:09.780
this is a question for Dore Bietz,
02:20:09.780 --> 02:20:12.280
I'm gonna read verbatim here.
02:20:12.280 --> 02:20:15.860
This is Cameron Reed with
the public Advocate's Office.
02:20:15.860 --> 02:20:19.970
Just a clarifying question
regarding Comcast service.
02:20:19.970 --> 02:20:23.560
You said you went to
Comcast for Internet service
02:20:23.560 --> 02:20:26.540
for the Me-Wuk
government and businesses.
02:20:26.540 --> 02:20:29.990
Does Comcast Offers residential
service to the households
02:20:29.990 --> 02:20:34.180
in your area or is it only
providing business service?
02:20:35.500 --> 02:20:40.000
If it does, how many households
can get Comcast service?
02:20:40.000 --> 02:20:41.373
That's the first question.
02:20:44.400 --> 02:20:49.400
So the business entity
side went after our switchover
02:20:51.950 --> 02:20:55.783
to Comcast because that
was their really only alternative
02:20:55.783 --> 02:21:00.783
and Comcast has not
come into the residential side
02:21:01.310 --> 02:21:06.140
which each individual
then is responsible.
02:21:06.140 --> 02:21:10.640
So we have not looked
at extending the Comcast
02:21:10.640 --> 02:21:15.363
into the tribal residential
area currently right now.
02:21:17.870 --> 02:21:20.870
Great and there's an additional
comment from Cameron Reed.
02:21:22.670 --> 02:21:24.160
I just want to thank the panelists
02:21:24.160 --> 02:21:25.790
for their insightful comments,
02:21:25.790 --> 02:21:29.670
I also want to say I appreciate
Mr. Rantanen's choice
02:21:29.670 --> 02:21:31.053
of background image.
02:21:31.890 --> 02:21:34.253
We have a second set of question here,
02:21:36.240 --> 02:21:38.190
let me just open this <v
->Go ahead Llela.
02:21:38.190 --> 02:21:41.820
Okay, so this question
is from Robert Langer,
02:21:41.820 --> 02:21:43.030
to whom it may concern.
02:21:43.030 --> 02:21:47.020
On behalf of the Communications
Workers of America, CWA,
02:21:47.020 --> 02:21:48.100
District Nine,
02:21:48.100 --> 02:21:50.100
we would like to submit
the following questions
02:21:50.100 --> 02:21:53.620
for any of the panelists on
the panelists discussion one,
02:21:53.620 --> 02:21:56.820
community experiences
and needs to answer.
02:21:56.820 --> 02:22:00.740
Number one, has Frontier
informed you if your areas
02:22:00.740 --> 02:22:05.320
will be considered Invesco or ImproveCo
02:22:05.320 --> 02:22:07.570
if this bankruptcy is approved?
02:22:07.570 --> 02:22:11.650
Second question, what is
your view of how Frontier
02:22:11.650 --> 02:22:14.550
is planning to separate
California regions
02:22:14.550 --> 02:22:17.586
into Invesco and ImproveCo?
02:22:17.586 --> 02:22:20.169
That's the end of the question.
02:22:23.620 --> 02:22:28.193
Okay, do any of the panelists
have any answers for that?
02:22:29.380 --> 02:22:32.313
Supervisor Stump here, I
can answer those quickly.
02:22:33.250 --> 02:22:35.390
Question one, the answer's no.
02:22:35.390 --> 02:22:39.550
No information from Frontier
on either one of those points.
02:22:39.550 --> 02:22:43.263
Question two, unknown because
of the answer to question one.
02:22:45.021 --> 02:22:45.854
Thank you.
02:22:45.854 --> 02:22:48.997
Supervisor Goss, answer
to the first question is no.
02:22:48.997 --> 02:22:50.650
Answer to the second question again
02:22:50.650 --> 02:22:53.043
is unknown because of the first answer.
02:22:56.490 --> 02:22:59.923
Panelist Ramirez, the
answer is no and then no.
02:23:03.687 --> 02:23:04.520
Ms. Bietz?
02:23:06.540 --> 02:23:10.053
Yes, the answer is no and
unknown as the other panelists.
02:23:12.450 --> 02:23:13.283
Dido.
02:23:13.283 --> 02:23:14.188
Thank you.
02:23:14.188 --> 02:23:15.021
(laughs)
02:23:15.021 --> 02:23:15.854
Okay.
02:23:15.854 --> 02:23:19.487
Do you have a follow up with that Llela?
02:23:19.487 --> 02:23:20.896
I have another question,
02:23:20.896 --> 02:23:23.394
not really a question
but a comment received
02:23:23.394 --> 02:23:24.227
Excuse me.
02:23:24.227 --> 02:23:25.060
Go ahead.
02:23:25.060 --> 02:23:27.870
Llela, sorry to interrupt
but just before we go
02:23:27.870 --> 02:23:28.750
to the next question,
02:23:28.750 --> 02:23:32.610
I wonder if we can get a
commitment from Allison to,
02:23:32.610 --> 02:23:35.870
at minimum for the
panelists here with us today,
02:23:35.870 --> 02:23:39.870
if you could get that notice to them
02:23:39.870 --> 02:23:42.380
as to whether or not
each of their communities
02:23:42.380 --> 02:23:45.483
are a part of ImproveCo or Invesco.
02:23:46.460 --> 02:23:48.630
As obviously this is a
communications company
02:23:48.630 --> 02:23:51.180
that we're dealing with so
communication is utmost.
02:23:54.960 --> 02:23:57.760
So, Commissioner this is
Patrick Rosvall for Frontier.
02:23:58.730 --> 02:24:02.490
I think, to the extent
that that question
02:24:02.490 --> 02:24:04.920
that you'd like an answer to
the question about ImproveCo
02:24:04.920 --> 02:24:08.240
and Invesco, I think Kevin
Seville might be the right person
02:24:08.240 --> 02:24:11.150
for it so if he's still on the line we
02:24:11.150 --> 02:24:13.893
can probably get on ...
I'm here Patrick.
02:24:15.640 --> 02:24:18.940
So Commissioners, in terms
of the question, you know,
02:24:18.940 --> 02:24:21.333
the the differentiation between Invesco
02:24:21.333 --> 02:24:23.360
and ImproveCo I know, you know,
02:24:23.360 --> 02:24:26.390
to some that has a
negative connotation but,
02:24:26.390 --> 02:24:28.490
you know, our expectation
is, is that, you know,
02:24:28.490 --> 02:24:32.890
California is a very important
state to us and we intend to,
02:24:32.890 --> 02:24:36.130
you know, invest in the
state of California and to bring,
02:24:36.130 --> 02:24:38.070
you know, fiber to additional households
02:24:38.070 --> 02:24:39.680
to the extent we can.
02:24:39.680 --> 02:24:42.100
You know, the reality
is, is that no company,
02:24:42.100 --> 02:24:44.639
it hasn't happened to date
and it probably won't happen
02:24:44.639 --> 02:24:48.220
in the foreseeable future,
has enough capital resources
02:24:48.220 --> 02:24:51.370
to deploy fiber to
every single household.
02:24:51.370 --> 02:24:56.230
There is, you know, a need to
evaluate where it makes sense
02:24:56.230 --> 02:25:00.760
from a financial and
practical standpoint to expand,
02:25:00.760 --> 02:25:04.150
you know, deployment
of investment and fiber
02:25:04.150 --> 02:25:07.720
and that being said, the
areas that don't get, you know,
02:25:07.720 --> 02:25:11.130
new fiber deployment are
not necessarily going to be,
02:25:11.130 --> 02:25:12.340
you know, neglected.
02:25:12.340 --> 02:25:14.910
Those areas are also
going to receive investment
02:25:14.910 --> 02:25:17.530
and enhancements
that will improve service.
02:25:17.530 --> 02:25:22.377
So this delineation between
Invesco and ImproveCo,
02:25:22.377 --> 02:25:25.707
clearly California is going
to be a state we invest
02:25:25.707 --> 02:25:30.330
in and the areas that don't
get expanded fiber will get,
02:25:30.330 --> 02:25:33.360
you know, improvements in terms
02:25:33.360 --> 02:25:36.330
of identifying the specific areas.
02:25:36.330 --> 02:25:39.220
One of the things we need
to do is when we're relieved
02:25:39.220 --> 02:25:43.230
of the debt obligations
that we have today in terms
02:25:43.230 --> 02:25:47.705
of through the bankruptcy
process is our new, you know,
02:25:47.705 --> 02:25:51.650
board and management is
going to undertake an evaluation
02:25:51.650 --> 02:25:55.430
and do engineering
analysis and detailed review
02:25:55.430 --> 02:25:59.392
to determine, you know, where, you know,
02:25:59.392 --> 02:26:04.300
it can deploy additional
resources in terms
02:26:04.300 --> 02:26:06.440
of either fiber or just improving.
02:26:06.440 --> 02:26:10.070
So we haven't made that
determination yet so with respect
02:26:10.070 --> 02:26:14.700
to the panelists we can't,
you know, today go and say,
02:26:14.700 --> 02:26:17.390
you know, this area is
going to get, you know, fiber,
02:26:17.390 --> 02:26:18.620
this area is only coming
02:26:18.620 --> 02:26:21.883
to see you improve broadband deployment,
02:26:21.883 --> 02:26:24.053
those decisions have not yet been made.
02:26:28.530 --> 02:26:31.133
Thank you, Mr. Seville.
02:26:32.813 --> 02:26:35.307
Llela, we are just a few
minutes over time now
02:26:35.307 --> 02:26:38.810
and I would like to be
respectful of everyone's time.
02:26:38.810 --> 02:26:43.810
I think that we had a
plan for further questions
02:26:43.810 --> 02:26:46.710
and emails to be
answered later in the day,
02:26:46.710 --> 02:26:51.485
is that correct or is there
just a small number less now?
02:26:51.485 --> 02:26:54.940
Yes, we can have
any additional questions
02:26:57.660 --> 02:26:59.790
during the public
comments in the afternoon
02:26:59.790 --> 02:27:02.515
so if we don't get to all
the questions right now we
02:27:02.515 --> 02:27:04.817
will give them an opportunity to say
02:27:04.817 --> 02:27:09.150
that or they can also send
a public written comment.
02:27:11.035 --> 02:27:14.385
Okay, thank you very
much then Llela, I will turn
02:27:14.385 --> 02:27:16.552
this back over to you now.
02:27:19.150 --> 02:27:21.470
Sounds good, thank you.
02:27:21.470 --> 02:27:23.467
I think we're having
technical difficulties
02:27:23.467 --> 02:27:25.197
which is timing because we are going
02:27:25.197 --> 02:27:27.426
to move to our lunch break.
02:27:27.426 --> 02:27:31.640
We will resume our program at 1:30
02:27:32.930 --> 02:27:36.897
and we will degenerate panel
two discussion, thank you.
02:27:38.360 --> 02:27:41.920
May I quickly say I have
an additional meeting,
02:27:41.920 --> 02:27:44.230
this afternoon I will
have to log off of this,
02:27:44.230 --> 02:27:46.210
thank you again for the opportunity
02:27:46.210 --> 02:27:48.480
to address the Commission.
02:27:48.480 --> 02:27:50.130
My meeting this afternoon deals
02:27:50.130 --> 02:27:53.533
with another very
non-controversial topic of water.
02:27:55.770 --> 02:27:58.300
Thank you Supervisor
and thank you all so much
02:27:58.300 --> 02:28:00.440
for the panelists that made the time
02:28:00.440 --> 02:28:03.003
with so many crises they're facing
02:28:03.003 --> 02:28:06.930
and I really do hope we
can continue this dialogue.
02:28:06.930 --> 02:28:07.893
Have a good lunch.
02:28:09.210 --> 02:28:10.610
Thank you Commissioner.
02:28:10.610 --> 02:28:13.430
This streaming event brought
to you by Admin Monitor...
02:28:13.430 --> 02:28:18.430
Patients provided by communications
division and Frontier.
02:28:18.600 --> 02:28:22.510
We are now going to move to
our second panel discussion.
02:28:22.510 --> 02:28:25.630
Michael Minkus is with the
Communications Division
02:28:25.630 --> 02:28:28.580
and will be moderating this panel group.
02:28:28.580 --> 02:28:31.480
Public input during the
active panel discussion
02:28:31.480 --> 02:28:35.763
can be made by sending an
email to telco.events@cpuc.ca.gov.
02:28:38.410 --> 02:28:41.640
When it's time to go
over the panel question
02:28:41.640 --> 02:28:44.460
and answer session,
the phone line will be open
02:28:44.460 --> 02:28:47.400
to hear callers who
wish to provide an input
02:28:47.400 --> 02:28:50.620
and I will read back
the emails in the order
02:28:50.620 --> 02:28:51.830
that they are received.
02:28:51.830 --> 02:28:55.360
We will do our best to
get through the emails
02:28:55.360 --> 02:28:58.300
within the limited time we have.
02:28:58.300 --> 02:28:59.133
Michael.
02:29:01.050 --> 02:29:03.823
Hi, thanks Llela and
Haga the next slide please.
02:29:05.010 --> 02:29:06.960
So hello everyone, I'm Michael Minkus,
02:29:06.960 --> 02:29:08.120
I'm a Policy Advisor
02:29:08.120 --> 02:29:11.020
in the Public Utilities Commission
Communications Division
02:29:11.020 --> 02:29:14.620
and as Llela noted, I will
be moderating this panel.
02:29:14.620 --> 02:29:17.340
I'll introduce the three
panelists and share some
02:29:17.340 --> 02:29:18.490
of their backgrounds.
02:29:18.490 --> 02:29:20.120
Each panelist will get a chance to make
02:29:20.120 --> 02:29:23.660
some relatively brief
introductory remarks or response
02:29:23.660 --> 02:29:27.650
to a question and then we'll
take more general questions.
02:29:27.650 --> 02:29:30.080
One panelist, Blair
Levin will be joining us
02:29:30.080 --> 02:29:33.270
about 30 minutes late and
may make some remarks
02:29:33.270 --> 02:29:34.630
when he joins.
02:29:34.630 --> 02:29:37.833
So with that, can we
get the next slide please?
02:29:39.880 --> 02:29:44.880
Joanne Hovis is President
of, and one more slide please,
02:29:45.250 --> 02:29:47.850
President of CTC Technology & Energy,
02:29:47.850 --> 02:29:52.530
she's a nationally recognized
expert on broadband markets
02:29:52.530 --> 02:29:55.050
and the evolving role of
public-private partnerships
02:29:55.050 --> 02:29:58.130
in the provision of communication
services to the public.
02:29:58.130 --> 02:30:00.707
She leads a team that advises states,
02:30:00.707 --> 02:30:03.373
cities and statewide broadband networks.
02:30:05.520 --> 02:30:06.870
Next slide please.
02:30:06.870 --> 02:30:09.763
William Wallace is Chair
of the Board at Us Ignite.
02:30:10.960 --> 02:30:14.700
He brings a background in
telecommunications from years
02:30:14.700 --> 02:30:16.590
in the industry most
recently as the co-founder
02:30:16.590 --> 02:30:19.490
of DigitalBridge Communications
02:30:19.490 --> 02:30:21.250
a venture-backed startups dedicated
02:30:21.250 --> 02:30:23.990
to bringing 4G
broadband wireless service
02:30:23.990 --> 02:30:26.760
to underserved portion of the US.
02:30:26.760 --> 02:30:29.290
Previously, Bill was co founder and CEO
02:30:29.290 --> 02:30:31.100
of OnePoint Communication
02:30:31.100 --> 02:30:35.230
which was purchased by
Verizon Communications in 2000.
02:30:35.230 --> 02:30:38.810
OnePoint and its successor
company Verizon Avenue provided,
02:30:38.810 --> 02:30:41.800
excuse me, provide bundled
communication services
02:30:41.800 --> 02:30:44.490
to concentrated communities nationwide
02:30:44.490 --> 02:30:46.000
including apartment communities,
02:30:46.000 --> 02:30:48.513
military bases and rural areas.
02:30:49.770 --> 02:30:50.720
Next slide, please.
02:30:53.160 --> 02:30:54.733
And one more please.
02:30:58.640 --> 02:31:02.270
Yes, let's go back one,
I'll introduce Blair Levin
02:31:02.270 --> 02:31:05.890
so that we don't need
to go over when he joins.
02:31:05.890 --> 02:31:10.280
So Blair Levin as an attorney
02:31:10.280 --> 02:31:12.080
and currently a nonresident fellow
02:31:12.080 --> 02:31:14.150
at the Metropolitan Policy Program
02:31:14.150 --> 02:31:16.220
at the Brookings Institution.
02:31:16.220 --> 02:31:19.190
He also serves as
executive director of Gig.U,
02:31:19.190 --> 02:31:22.030
The Next Generation
Network Innovation Project,
02:31:22.030 --> 02:31:24.900
an initiative of three dozen
leading research university
02:31:24.900 --> 02:31:28.890
communities supporting educational
and economic development
02:31:28.890 --> 02:31:32.010
by accelerating next
generation network deployment.
02:31:32.010 --> 02:31:34.860
Prior to that, at the Federal
Communications Commission,
02:31:34.860 --> 02:31:38.270
Blair oversaw the development
of the National Broadband Plan
02:31:38.270 --> 02:31:42.830
in approximately 2009
to 2010, after eight years
02:31:42.830 --> 02:31:46.930
as an analyst at Legg
Mason and Stifel Nicolaus.
02:31:46.930 --> 02:31:49.280
Before that, Blair was chief of staff
02:31:49.280 --> 02:31:53.610
to FCC Chair Reed Hundt from 1993 to 97,
02:31:53.610 --> 02:31:56.250
where his work included
overseeing implementation
02:31:56.250 --> 02:31:59.890
of the 1996
Telecommunications Reform Act
02:31:59.890 --> 02:32:02.263
and the first spectrum of options.
02:32:03.240 --> 02:32:04.840
So with that next slide, please.
02:32:07.960 --> 02:32:12.760
I'm going to read through
the questions from panel one
02:32:12.760 --> 02:32:15.940
and those one background
slide also and then lead
02:32:15.940 --> 02:32:19.570
to the panelists to share some remarks.
02:32:19.570 --> 02:32:24.160
So two questions both related
to ensuring the merged company
02:32:25.710 --> 02:32:27.390
can serve all communities.
02:32:27.390 --> 02:32:31.230
The Frontier application
discusses a virtual separation
02:32:31.230 --> 02:32:32.896
of assets into Invesco
... Michel.
02:32:32.896 --> 02:32:33.950
Yeah.
02:32:33.950 --> 02:32:36.370
Sorry to interrupt, we're
having a fire alarm go off
02:32:36.370 --> 02:32:38.990
right now in the
auditorium in San Francisco,
02:32:38.990 --> 02:32:40.190
can you please stand by.
02:32:41.301 --> 02:32:42.468
Standing by.
02:33:05.630 --> 02:33:07.480
It appears to be a
real fire alarm Michael
02:33:07.480 --> 02:33:09.430
so we're gonna have to
head out of the building.
02:33:09.430 --> 02:33:12.593
Please stand by and if you
can announce to the public.
02:33:14.380 --> 02:33:15.223
Okay, thanks.
02:33:16.520 --> 02:33:17.353
Keep us posted.
02:33:26.380 --> 02:33:31.380
If there's a safe way Joe
for you to transfer your ...
02:33:32.030 --> 02:33:33.360
This is the
conference operator,
02:33:33.360 --> 02:33:34.960
the conference has now convened.
02:33:45.860 --> 02:33:48.290
Okay, thank you
everybody, we're ready to start.
02:33:48.290 --> 02:33:49.793
Michael, please continue.
02:33:51.600 --> 02:33:54.180
Absolutely so I was
going to go briefly.
02:33:54.180 --> 02:33:57.252
So sorry everyone for the interruption,
02:33:57.252 --> 02:34:00.230
I'm gonna go briefly through
the two high level questions
02:34:00.230 --> 02:34:03.910
that the panelists will
speak to and then Blair Levin
02:34:03.910 --> 02:34:06.560
the third panelists will
join us in about 10 minutes.
02:34:07.600 --> 02:34:11.060
The questions are one,
do you have creative
02:34:11.060 --> 02:34:13.670
thoughts about how to
ensure high quality continuity
02:34:13.670 --> 02:34:17.370
of service in ImproveCo
areas that may include rural,
02:34:17.370 --> 02:34:19.870
tribal and low income areas?
02:34:19.870 --> 02:34:22.210
Question two is, what mechanisms such
02:34:22.210 --> 02:34:25.770
as high cost funds support,
capital costs subsidies
02:34:25.770 --> 02:34:28.760
or others, might best
enable the creative solutions
02:34:28.760 --> 02:34:30.010
that have been discussed?
02:34:31.150 --> 02:34:36.150
So with that, Joanne if you could speak
02:34:36.270 --> 02:34:37.920
to some of these questions first.
02:34:40.440 --> 02:34:43.503
Great, thank you Michael
and good afternoon everyone,
02:34:43.503 --> 02:34:46.790
it's a pleasure to be with you.
02:34:46.790 --> 02:34:48.950
Let me share from my perspective
02:34:48.950 --> 02:34:53.950
as someone who develops
strategies for public entities
02:34:54.330 --> 02:34:56.660
at the state and local level,
02:34:56.660 --> 02:35:00.930
including tribes and someone
who works pretty extensively
02:35:00.930 --> 02:35:03.350
on public-private collaboration,
02:35:03.350 --> 02:35:07.830
I would recommend
very serious consideration
02:35:07.830 --> 02:35:09.709
of what it looks like in areas
02:35:09.709 --> 02:35:14.220
where there's reasonable concern
02:35:14.220 --> 02:35:18.730
about the long term prospects
for adequate broadband
02:35:18.730 --> 02:35:22.760
for these communities
in light of the challenges
02:35:22.760 --> 02:35:25.870
and the chronic underinvestment to date
02:35:25.870 --> 02:35:30.640
and the current situation
that Frontier is in and its plans.
02:35:30.640 --> 02:35:33.400
In light of that I would
recommend consideration
02:35:33.400 --> 02:35:36.010
of what it might look like
for the local communities,
02:35:36.010 --> 02:35:40.150
the tribes and their partners
to have the opportunity
02:35:40.150 --> 02:35:43.610
to take over ownership
and control at a local level
02:35:43.610 --> 02:35:45.783
of the local assets and operations.
02:35:46.850 --> 02:35:50.190
It's really impossible
to think of any entity
02:35:50.190 --> 02:35:54.220
with a bigger stake or more motivation
02:35:54.220 --> 02:35:56.740
than the local community when it comes
02:35:56.740 --> 02:36:01.740
to this broadband future
or lack of broadband future.
02:36:02.410 --> 02:36:07.410
We were at that geographic
area and a takeover of assets
02:36:07.420 --> 02:36:10.480
and operations would enable
that community or the tribe
02:36:10.480 --> 02:36:15.470
to prioritize as it sees fit
including economic development,
02:36:15.470 --> 02:36:18.040
student well-being,
health care, the other kinds
02:36:18.040 --> 02:36:20.620
of policy priorities
that are so foundational
02:36:20.620 --> 02:36:23.240
to why communities are concerned
02:36:23.240 --> 02:36:25.458
about broadband to begin with.
02:36:25.458 --> 02:36:29.520
That local ownership
and control also enables
02:36:29.520 --> 02:36:32.580
a concentration of spending locally
02:36:32.580 --> 02:36:35.350
with all the associated
economic benefits that comes
02:36:35.350 --> 02:36:40.120
from that and the long
term multiplier effect
02:36:40.120 --> 02:36:42.205
that comes from that as well.
02:36:42.205 --> 02:36:47.205
That said, this is not
necessarily a very straightforward
02:36:47.480 --> 02:36:51.800
or easy path even without the
requirement of profit margins,
02:36:51.800 --> 02:36:54.420
communities will find
these economics challenging
02:36:55.580 --> 02:36:59.370
and in large part and
not in substantial part
02:36:59.370 --> 02:37:04.370
because the networks
have seen so little investment
02:37:04.500 --> 02:37:06.580
and there are so many challenges,
02:37:06.580 --> 02:37:08.561
so much need for upgrade
02:37:08.561 --> 02:37:12.920
and so such high
operating costs associated
02:37:12.920 --> 02:37:16.590
with supporting legacy infrastructure.
02:37:16.590 --> 02:37:20.830
And the communities and
tribes if they were interested
02:37:20.830 --> 02:37:23.090
in this kind of initiative
and I would anticipate many
02:37:23.090 --> 02:37:25.785
would be, wouldn't have
any of the scale advantages
02:37:25.785 --> 02:37:28.430
of a company of Frontier size.
02:37:28.430 --> 02:37:31.320
So I wouldn't assume that
they can necessarily be able
02:37:31.320 --> 02:37:33.190
to do this more cheaply and I'll talk
02:37:33.190 --> 02:37:34.714
in a minute about
the things that I think
02:37:34.714 --> 02:37:38.230
it would be enormously
helpful for them to have in order
02:37:38.230 --> 02:37:41.540
to be able to do it better
so they might not be able
02:37:41.540 --> 02:37:43.160
to do it more cheaply than Frontier
02:37:43.160 --> 02:37:44.960
but they will certainly
be more motivated
02:37:44.960 --> 02:37:46.930
and they would operate the network
02:37:46.930 --> 02:37:49.240
and they would upgrade
the network differently
02:37:49.240 --> 02:37:51.270
than any publicly traded company,
02:37:51.270 --> 02:37:56.270
there's simply no way that
a distantly owned company
02:37:58.420 --> 02:38:00.630
that has all of the considerations
02:38:00.630 --> 02:38:04.330
of a publicly traded
corporation is going to make
02:38:04.330 --> 02:38:07.810
the same kinds of decisions
that a local community would.
02:38:07.810 --> 02:38:10.520
So I would say that
it's just critical to put
02:38:10.520 --> 02:38:15.076
in place tools to
support the communities,
02:38:15.076 --> 02:38:19.090
these kinds of efforts and to
make successful operations
02:38:19.090 --> 02:38:21.230
and critically the upgrades
02:38:21.230 --> 02:38:23.520
to better infrastructure more viable.
02:38:23.520 --> 02:38:27.870
Let me share with you
what I think those those tools
02:38:27.870 --> 02:38:31.100
would be and I'll just very
briefly run through the things
02:38:31.100 --> 02:38:32.680
that I think are important,
02:38:32.680 --> 02:38:37.607
that in my experience have
identified as the frustrations
02:38:39.350 --> 02:38:42.124
or the impediments that
can be easily put in the way
02:38:42.124 --> 02:38:45.670
of a successful public initiative,
02:38:45.670 --> 02:38:49.610
what are the ways that those
impediments can be removed?
02:38:49.610 --> 02:38:52.530
That's what I'll speak
to and I'll give the caveat
02:38:52.530 --> 02:38:57.130
to that some of these would
be in the control of a Frontier,
02:38:57.130 --> 02:38:58.500
others would be in the control
02:38:58.500 --> 02:39:01.745
of different state level entities.
02:39:01.745 --> 02:39:04.090
The first thing would be pole access,
02:39:04.090 --> 02:39:08.680
utility pole access with
certainty guarantees regarding
02:39:08.680 --> 02:39:11.750
the opportunity to
overlash and cost ceilings
02:39:11.750 --> 02:39:15.000
around make ready so
that the timing and cost
02:39:15.000 --> 02:39:18.422
of make ready could
not be a means of slowing
02:39:18.422 --> 02:39:23.422
or making infeasible or
more challenging an initiative.
02:39:24.160 --> 02:39:27.860
Second thing would be
rural interconnect obligations
02:39:27.860 --> 02:39:32.680
on the part of Frontier to
enable locally owned networks
02:39:32.680 --> 02:39:35.610
to connect to major
internet points of presence
02:39:35.610 --> 02:39:38.630
in the urban parts of
California or elsewhere
02:39:38.630 --> 02:39:42.020
and long-haul pricing at reduced
02:39:42.020 --> 02:39:46.490
or reasonable costs calculated
to actually enable success
02:39:46.490 --> 02:39:49.390
by the local communities.
02:39:49.390 --> 02:39:52.300
In short really making
sure that they do not end up
02:39:52.300 --> 02:39:55.350
with an island, that they
actually have a network
02:39:55.350 --> 02:39:57.400
that is connected at reasonable cost
02:39:57.400 --> 02:39:58.650
to the rest of the world.
02:40:00.302 --> 02:40:02.520
Third, in a perfect world we
02:40:02.520 --> 02:40:05.120
wanna see state broadband
funding stream structure
02:40:05.120 --> 02:40:08.710
to support and enable
community and tribe involvement
02:40:08.710 --> 02:40:10.990
and that's a number of different things.
02:40:10.990 --> 02:40:12.680
The first is that the localities
02:40:12.680 --> 02:40:15.160
and the tribes must be eligible entities
02:40:15.160 --> 02:40:17.393
for public funding for broadband.
02:40:17.393 --> 02:40:20.640
We are frankly all over the country past
02:40:20.640 --> 02:40:22.680
the point where it's
feasible to exclude them
02:40:22.680 --> 02:40:24.480
but certainly given
what we're talking about
02:40:24.480 --> 02:40:26.070
here it would be a critical
02:40:26.070 --> 02:40:28.570
that they have the same
opportunity to compete
02:40:28.570 --> 02:40:31.740
for public funding than
any other entity does.
02:40:31.740 --> 02:40:34.570
Second, the state funding
programs should be structured
02:40:34.570 --> 02:40:37.390
so that they can be used
as a match for federal grants,
02:40:37.390 --> 02:40:40.210
allowing the communities
and the tribes to compete
02:40:40.210 --> 02:40:42.320
for federal grants more ably.
02:40:42.320 --> 02:40:47.320
And as part of that I'd also
recommend consideration
02:40:47.840 --> 02:40:51.230
of structuring the state
grants so that the federal grants
02:40:51.230 --> 02:40:53.740
can then once attained
also serve as match
02:40:53.740 --> 02:40:55.235
for the state funding.
02:40:55.235 --> 02:40:59.140
This in my view and
experience is a best practice,
02:40:59.140 --> 02:41:01.310
it's been done very successfully,
02:41:01.310 --> 02:41:03.290
most recently by the state of Maryland
02:41:03.290 --> 02:41:07.210
that has an enabled tapping
into substantial federal dollars
02:41:07.210 --> 02:41:10.924
by enabling endless matching mechanism.
02:41:10.924 --> 02:41:14.380
Third, public private
collaboration should be eligible
02:41:14.380 --> 02:41:19.010
for state funds so public
applicant such as a county
02:41:19.010 --> 02:41:22.240
or a town or a tribe
wouldn't have to commit
02:41:22.240 --> 02:41:24.540
to that it will serve in
all roles but it can work
02:41:24.540 --> 02:41:26.300
with private partners who for example,
02:41:26.300 --> 02:41:30.070
might be a network operator
or an ISP on the network
02:41:30.070 --> 02:41:33.857
with the public entity as the owner
02:41:33.857 --> 02:41:34.947
of the infrastructure who will maintain
02:41:34.947 --> 02:41:37.133
and upgrade the infrastructure.
02:41:38.700 --> 02:41:43.100
Fourth, we wanna see a very
reasonable phase transfers
02:41:43.100 --> 02:41:46.180
with performance
obligations that facilitate
02:41:46.180 --> 02:41:51.090
an effective transfer that
enables the public entity
02:41:51.090 --> 02:41:52.960
to take over in a way that maximizes
02:41:52.960 --> 02:41:54.963
the chances for success.
02:41:57.690 --> 02:42:00.330
Fifth, it'll critical for Frontier
02:42:00.330 --> 02:42:02.290
to have data sharing obligations
02:42:02.290 --> 02:42:05.220
at the most granular level possible,
02:42:05.220 --> 02:42:09.090
ideally the address level,
when there's any consideration
02:42:09.090 --> 02:42:12.870
of this scenario in which a
community or a tribe takes
02:42:12.870 --> 02:42:16.670
over the assets just so that
sufficient data is available
02:42:16.670 --> 02:42:18.370
to make that determination.
02:42:18.370 --> 02:42:22.350
And then finally and it
deserves a little very brief
02:42:22.350 --> 02:42:26.270
and could each stand up
many hours of discussion
02:42:26.270 --> 02:42:28.620
but the final item is
that to enable everything
02:42:28.620 --> 02:42:31.217
that I've just discussed,
ideally the communities
02:42:31.217 --> 02:42:33.810
and the tribes would
have the opportunity
02:42:33.810 --> 02:42:37.560
to get state support for
planning and also mechanisms
02:42:37.560 --> 02:42:40.080
to achieve efficiencies in procurement
02:42:40.080 --> 02:42:44.580
for labor materials and
services through aggregation
02:42:44.580 --> 02:42:48.710
and those, as I see, it would
be some of the ingredients
02:42:48.710 --> 02:42:53.710
that could make for a
feasible way of securing
02:42:54.080 --> 02:42:56.420
the broadband future
of some of the areas
02:42:56.420 --> 02:42:59.963
that are otherwise likely
to struggle for a long time.
02:43:04.480 --> 02:43:06.280
Thank you and
greatly appreciated.
02:43:07.160 --> 02:43:09.130
Bill if you'd like to take a few minutes
02:43:09.130 --> 02:43:11.033
to speak to those same two questions.
02:43:11.890 --> 02:43:14.550
Sure, I agree wholeheartedly
with what Joanne
02:43:14.550 --> 02:43:19.250
had to say and we've just
finished a study at US Ignite
02:43:19.250 --> 02:43:24.200
that looks at alternative
models for deploying broadband
02:43:24.200 --> 02:43:25.870
and creative ways.
02:43:25.870 --> 02:43:28.210
There are five models,
it looks at taking a part
02:43:28.210 --> 02:43:30.360
of network into its five
components, you know,
02:43:30.360 --> 02:43:32.615
the rights of way that a city
may or community may own,
02:43:32.615 --> 02:43:35.420
the middle mile, the last mile,
02:43:35.420 --> 02:43:37.310
operating the infrastructure
and then servicing
02:43:37.310 --> 02:43:41.260
the customer and if you
look at the network that way,
02:43:41.260 --> 02:43:43.160
of course, there's a
full municipal model
02:43:43.160 --> 02:43:45.700
or full tribal model
where everything is done
02:43:45.700 --> 02:43:48.810
by the municipality or the tribe.
02:43:48.810 --> 02:43:49.770
But there are other models
02:43:49.770 --> 02:43:52.440
that have been successfully
deployed around the country.
02:43:52.440 --> 02:43:54.253
In fact, we've looked at roughly 1000
02:43:54.253 --> 02:43:56.843
what we call municipally enabled models.
02:43:57.780 --> 02:44:00.070
One extreme is the full municipal model,
02:44:00.070 --> 02:44:02.340
one of the other stream
is a full private model
02:44:02.340 --> 02:44:05.280
with some more active
municipal involvement
02:44:05.280 --> 02:44:07.460
but a second model we've looked at,
02:44:07.460 --> 02:44:09.793
which might be applicable in
some cases around California
02:44:09.793 --> 02:44:13.080
is what we call a publicly
owned, privately-serviced model.
02:44:13.080 --> 02:44:15.120
It's been deployed in
Westminster, Maryland,
02:44:15.120 --> 02:44:18.040
where the community
has actually, of course,
02:44:18.040 --> 02:44:20.730
owned the rights of way
but also owns the middle mile
02:44:20.730 --> 02:44:23.520
and the last mile but
then as a service provider,
02:44:23.520 --> 02:44:25.850
in this case, company
called Ting providing
02:44:25.850 --> 02:44:29.500
the operating infrastructure
and providing the servicing
02:44:29.500 --> 02:44:31.920
and last mile activities.
02:44:31.920 --> 02:44:33.980
A third model is a
hybrid ownership model
02:44:33.980 --> 02:44:35.790
which has been deployed
in Lincoln, Nebraska,
02:44:35.790 --> 02:44:39.280
where the community or
tribe does the rights of way,
02:44:39.280 --> 02:44:41.650
of course, owns the
middle mile but then brings
02:44:41.650 --> 02:44:45.520
in increased service providers
to provide the last mile,
02:44:45.520 --> 02:44:49.630
operate the infrastructure
and service the customer.
02:44:49.630 --> 02:44:52.130
Yet a fourth model which
we're seeing in Washington,
02:44:52.130 --> 02:44:54.460
California is called the private
developer open access model
02:44:54.460 --> 02:44:58.010
where the, of course, the
public entity owns the rights
02:44:58.010 --> 02:45:01.163
of way but then a private
developer puts in the middle mile,
02:45:01.163 --> 02:45:03.510
puts in the last mile,
operation infrastructure
02:45:03.510 --> 02:45:06.983
it has and open access to
internet service providers.
02:45:08.090 --> 02:45:09.330
This is an up and coming model,
02:45:09.330 --> 02:45:11.480
we haven't seen many of
them around the country.
02:45:11.480 --> 02:45:15.208
It also lends itself to
innovative wireless technologies,
02:45:15.208 --> 02:45:17.800
it's kind of a neutral
hosting point where you
02:45:17.800 --> 02:45:20.560
would be able to bring
in alternative wireless,.
02:45:20.560 --> 02:45:23.940
All of these, as Joanne
said, are potentially expensive,
02:45:23.940 --> 02:45:25.660
potentially complex but we're about
02:45:25.660 --> 02:45:29.220
to release a decision tree
model that communities
02:45:29.220 --> 02:45:32.040
can use to decide which one
of these five models might make
02:45:32.040 --> 02:45:35.000
the most sense for them
given the assets they have,
02:45:35.000 --> 02:45:38.390
the availability of internet
service providers, the capital,
02:45:38.390 --> 02:45:40.220
the partnership options
and the willingness
02:45:40.220 --> 02:45:42.870
to take some risk versus
not take some risks.
02:45:42.870 --> 02:45:45.200
So it's a model that I
think could help some
02:45:45.200 --> 02:45:47.870
of these communities mix
and match their own assets
02:45:47.870 --> 02:45:50.100
or the municipal assets, tribal assets,
02:45:50.100 --> 02:45:53.720
with some private assets
to pursue creative models
02:45:53.720 --> 02:45:57.793
to make sure it ensure levels
are increased in these areas.
02:45:59.220 --> 02:46:03.460
This is something that I also
agree with Joanne in terms
02:46:03.460 --> 02:46:07.143
of tapping in the state funding,
02:46:08.120 --> 02:46:10.020
I'm not as close to the specifics
02:46:10.020 --> 02:46:12.580
of the state funding models
I think as Joanne and Blair
02:46:12.580 --> 02:46:15.710
are but my sense is that if
you involve the community
02:46:15.710 --> 02:46:17.523
in a public-private partnership,
02:46:18.450 --> 02:46:21.410
we might be much better
able to tap into exactly
02:46:21.410 --> 02:46:25.230
which public funds are needed where,
02:46:25.230 --> 02:46:27.140
I have a sense that it's
pretty much top down
02:46:27.140 --> 02:46:29.640
from carriers down today but
if you involve the community,
02:46:29.640 --> 02:46:31.970
I think the communities
may be able to define
02:46:31.970 --> 02:46:33.041
where the networks should go
02:46:33.041 --> 02:46:37.620
but also how some of these
high cost funds could be applied,
02:46:37.620 --> 02:46:42.070
the lifeline funds could be
applied and more optimize use
02:46:42.070 --> 02:46:44.729
of these local funds both
federal and state and local.
02:46:44.729 --> 02:46:49.000
So I guess Michael, to
summarize my view in the first set
02:46:49.000 --> 02:46:49.833
of questions,
02:46:49.833 --> 02:46:52.780
I think there are creative
public-private models
02:46:52.780 --> 02:46:55.750
that can be deployed creatively.
02:46:55.750 --> 02:46:57.620
I think there are creative offshoots
02:46:57.620 --> 02:47:00.000
to these models often involving wireless
02:47:00.000 --> 02:47:02.020
that if you have a public-private model,
02:47:02.020 --> 02:47:05.295
the more likely to be
able to tap into and I think
02:47:05.295 --> 02:47:07.950
there are playbooks
perhaps that communities
02:47:07.950 --> 02:47:09.830
can be given in terms of how to work
02:47:09.830 --> 02:47:11.030
with their local provider
02:47:11.030 --> 02:47:13.270
or when they become a
local provider themselves,
02:47:13.270 --> 02:47:16.803
to tap into the California
Public Policy Programs.
02:47:19.240 --> 02:47:21.140
Thanks, that's
greatly appreciated.
02:47:21.140 --> 02:47:24.530
So there'll be a chance
for questions in a little bit.
02:47:24.530 --> 02:47:27.363
Joe if we could go to the next slide.
02:47:28.610 --> 02:47:31.143
I think we'll actually
wanna go two slides ahead.
02:47:34.009 --> 02:47:39.009
And Blair so this is a
link to the US Ignite report.
02:47:39.430 --> 02:47:42.840
Blair Levin has joined us,
and we'll do one more slide,
02:47:42.840 --> 02:47:43.673
sorry Joe.
02:47:45.420 --> 02:47:50.160
And we have another series
of questions and these relate
02:47:50.160 --> 02:47:55.160
to the practicalities in a
transfer or merger proceeding,
02:47:55.432 --> 02:47:58.063
what conditions might be imposed,
02:47:59.080 --> 02:48:02.530
how they might be
monitored and or enforced.
02:48:02.530 --> 02:48:07.530
So with that, I'm glad to read
through them but I am glad
02:48:09.220 --> 02:48:11.230
to pass the baton to Blair,
02:48:11.230 --> 02:48:13.349
if you'd like to go through some
02:48:13.349 --> 02:48:15.220
of your high level responses
to some of these questions
02:48:15.220 --> 02:48:18.003
or make some general remarks.
02:48:23.220 --> 02:48:26.593
Blair I think you're muted, we
can't hear you at the moment.
02:48:31.060 --> 02:48:32.823
Is that on my end or your end.
02:48:33.710 --> 02:48:36.110
Now you're coming
through loud and clear.
02:48:36.110 --> 02:48:37.803
Okay great, hank you very much.
02:48:38.680 --> 02:48:41.330
Again, let me apologize
for being a few minutes late.
02:48:43.490 --> 02:48:45.563
I think every transaction,
02:48:47.060 --> 02:48:51.010
even the ones that are quite
successful have a problem
02:48:51.010 --> 02:48:54.490
with the enforcement of conditions.
02:48:54.490 --> 02:48:57.200
If you look, for example,
at the history of the FCC
02:48:57.200 --> 02:49:01.550
with merger conditions
it reminds me of that line
02:49:01.550 --> 02:49:04.760
from Pirates of the Caribbean
where someone says,
02:49:04.760 --> 02:49:06.020
you know, here's the rule book,
02:49:06.020 --> 02:49:09.493
you're violating the code
and the other guy says,
02:49:09.493 --> 02:49:12.770
well, it's really more like
guidelines and you could look
02:49:12.770 --> 02:49:15.250
at a number of different
transactions where the FCC
02:49:15.250 --> 02:49:17.430
has approved it with
a number of conditions
02:49:17.430 --> 02:49:20.629
and then those conditions
either get cropped
02:49:20.629 --> 02:49:22.550
or they get mitigated
because the incentives
02:49:22.550 --> 02:49:24.900
to promise anything in the context
02:49:24.900 --> 02:49:27.100
of a legal proceeding like a merger
02:49:27.100 --> 02:49:30.060
or bankruptcy proceeding,
that's pretty great.
02:49:30.060 --> 02:49:33.480
And the company knows,
and I'm not saying it's doing
02:49:35.090 --> 02:49:37.330
it in bad faith, but the
company understands
02:49:38.839 --> 02:49:43.560
that whatever obligations
they need to take on to get
02:49:43.560 --> 02:49:47.164
the transaction done, they
can take on in the full knowledge
02:49:47.164 --> 02:49:49.550
that over time they will be able
02:49:49.550 --> 02:49:53.578
to extensively re-litigate those issues.
02:49:53.578 --> 02:49:58.397
And so I think aligning
the incentives the right way,
02:50:01.110 --> 02:50:04.810
it's difficult and I
think we should face
02:50:04.810 --> 02:50:07.010
that difficulty square on.
02:50:07.010 --> 02:50:09.044
There are a number of
conditions that I think people
02:50:09.044 --> 02:50:12.710
would like, certainly there
are built out conditions,
02:50:12.710 --> 02:50:15.860
certainly there are service obligations,
02:50:15.860 --> 02:50:20.070
certainly there are obligations
to meet a certain standard
02:50:20.070 --> 02:50:22.163
for outages and things like that.
02:50:23.360 --> 02:50:27.310
The problem is that
when things go south,
02:50:27.310 --> 02:50:29.700
that is to say if
things aren't going well
02:50:29.700 --> 02:50:32.200
or if there's some event
like COVID which changes
02:50:32.200 --> 02:50:34.389
the economy in various ways,
02:50:34.389 --> 02:50:37.330
it's pretty easy for the company
02:50:37.330 --> 02:50:41.090
to say whereas I have
obligations to multiple parties,
02:50:41.090 --> 02:50:46.040
my first obligations
are returning revenues
02:50:46.040 --> 02:50:48.633
to shareholders through whatever means,
02:50:49.800 --> 02:50:51.910
whatever kinds of distributions they do
02:50:52.790 --> 02:50:55.650
and the public obligations
tend to go to the end.
02:50:55.650 --> 02:50:58.420
So what I would suggest
is a couple of means,
02:50:58.420 --> 02:51:02.397
a couple of ways to make
sure that the public obligations
02:51:02.397 --> 02:51:04.116
and we can talk more
about what they should be,
02:51:04.116 --> 02:51:07.800
but the public obligations
are met are, number one,
02:51:07.800 --> 02:51:12.182
the PUC has to have very timely data
02:51:12.182 --> 02:51:15.470
on really an ongoing basis.
02:51:15.470 --> 02:51:18.600
As a practical matter, you
know, companies report
02:51:18.600 --> 02:51:20.920
to Wall Street on a quarterly basis
02:51:20.920 --> 02:51:23.400
But as a practical
matter in today's world,
02:51:23.400 --> 02:51:25.780
they're getting data
a lot faster than that.
02:51:25.780 --> 02:51:27.810
And I think there's
an interesting question
02:51:27.810 --> 02:51:32.240
of whether and to what
extent the public sector,
02:51:32.240 --> 02:51:34.240
particularly in the situation
where someone's coming out
02:51:34.240 --> 02:51:38.220
of bankruptcy and so
the economics where one
02:51:38.220 --> 02:51:40.803
can be optimistic about
it are nonetheless tricky,
02:51:41.850 --> 02:51:45.000
whether that can be access
to much more timely data
02:51:45.000 --> 02:51:49.507
so that you get advanced
warning of when there's likely
02:51:50.740 --> 02:51:55.620
to be a problem or certain
benchmarks and can be met.
02:51:55.620 --> 02:51:58.340
The other thing is the
process of enforcement
02:51:58.340 --> 02:51:59.860
and I would simply say,
02:51:59.860 --> 02:52:03.100
I think this is one where
what you wanna avoid
02:52:03.100 --> 02:52:05.850
is a situation where the company knows
02:52:05.850 --> 02:52:09.150
that they can essentially
tie up the PUC in court
02:52:09.150 --> 02:52:12.410
for a long time and so by the time all
02:52:12.410 --> 02:52:15.560
of the normal legal
proceedings are done,
02:52:15.560 --> 02:52:17.560
lots of negative things
have happened and kind
02:52:17.560 --> 02:52:22.280
of the equities in the ground
are already more problematic.
02:52:22.280 --> 02:52:24.190
And so the question
whether it's a special match
02:52:24.190 --> 02:52:27.440
or some kind of vehicle
that allows the PUC
02:52:27.440 --> 02:52:32.440
to more directly and
quickly force the company
02:52:33.810 --> 02:52:37.513
to live up to its obligations
may well be called for.
02:52:38.570 --> 02:52:42.393
And then Joanne mentioned
in her comments something
02:52:42.393 --> 02:52:46.550
that is certainly worth
considering which is,
02:52:46.550 --> 02:52:49.070
if they don't meet the
obligations are there parties
02:52:49.070 --> 02:52:51.560
that can step in,
particularly public parties
02:52:51.560 --> 02:52:54.520
that can step in and take
over and for that to be able
02:52:54.520 --> 02:52:57.280
to happen, there are certain
things like data sharing
02:52:58.445 --> 02:53:00.695
that the company needs
to be obligated to do.
02:53:04.640 --> 02:53:06.740
Thanks, that's
helpful and appreciated.
02:53:06.740 --> 02:53:08.590
Joanne or Bill would you like to speak
02:53:08.590 --> 02:53:09.943
to any of these topics now?
02:53:19.810 --> 02:53:21.996
Go ahead Joanne, go ahead.
02:53:21.996 --> 02:53:24.130
Bill, you first.
02:53:24.130 --> 02:53:26.977
I was just saying,
considering offer, I think Joanne
02:53:26.977 --> 02:53:29.960
and I were in terms of local
community involvement,
02:53:29.960 --> 02:53:32.660
I think and also during Dore Bietz
02:53:32.660 --> 02:53:36.323
from Tuolumne band earlier today,
02:53:38.180 --> 02:53:40.564
this is maybe something has
never been done but forcing
02:53:40.564 --> 02:53:45.260
in the case of ImproveCo
forcing requirement
02:53:45.260 --> 02:53:49.570
or enforcement that there'll
be a community participant
02:53:49.570 --> 02:53:51.970
in a planning process to decide
02:53:51.970 --> 02:53:55.780
how they're gonna provide
broadband to the right parts
02:53:55.780 --> 02:53:56.890
of the full community, right?
02:53:56.890 --> 02:54:00.490
So that you have a
comprehensive plan locally
02:54:00.490 --> 02:54:03.760
that can be used to
guide either the public
02:54:03.760 --> 02:54:07.140
or the private deployment of facilities
02:54:07.140 --> 02:54:09.880
but also to apply to the
various state funds that exist,
02:54:09.880 --> 02:54:14.460
the federal funds like CAF
and others and then take part
02:54:14.460 --> 02:54:16.940
of the Rural Digital
Opportunity Fund option.
02:54:16.940 --> 02:54:18.463
I think having some requirements
02:54:18.463 --> 02:54:22.130
that there is local
participation particularly
02:54:22.130 --> 02:54:23.930
in an ImproveCo would go a long way.
02:54:28.430 --> 02:54:33.430
And let me echo that by
saying I completely agree.
02:54:33.700 --> 02:54:35.130
As I look around the country,
02:54:35.130 --> 02:54:37.970
particularly at state funding programs,
02:54:37.970 --> 02:54:42.970
the ones that incorporate an
even mandates local involvement
02:54:43.640 --> 02:54:47.280
are just more successful
and frankly, federal programs
02:54:49.086 --> 02:54:51.568
that do that are as well.
02:54:51.568 --> 02:54:53.702
And there's just a very
significant difference
02:54:53.702 --> 02:54:57.530
between an entity making
a decision to invest dollars,
02:54:57.530 --> 02:55:01.100
federal state or its own in
a community that it knows
02:55:01.100 --> 02:55:04.592
and has spoken to and one
where it has never set foot
02:55:04.592 --> 02:55:07.330
but has simply applied
through an auction process
02:55:07.330 --> 02:55:09.200
with the FCC.
02:55:09.200 --> 02:55:12.060
There are very different outcomes,
02:55:12.060 --> 02:55:17.060
they have their own benefits
and negatives but generally
02:55:17.188 --> 02:55:22.188
that public involvement will
have a significant difference
02:55:22.678 --> 02:55:24.540
in terms of outcome.
02:55:24.540 --> 02:55:28.460
Let me add just a couple
more thoughts about conditions
02:55:28.460 --> 02:55:33.460
and I defer to Blair
entirely on the realities
02:55:34.960 --> 02:55:37.600
of what gets enforced and
what doesn't other than to say
02:55:37.600 --> 02:55:41.090
that it looks odd just
as someone who works
02:55:41.090 --> 02:55:42.727
with communities
and states all the time,
02:55:42.727 --> 02:55:45.130
that's not all that much gets enforced
02:55:45.130 --> 02:55:47.890
but if I were looking
at things that I thought
02:55:47.890 --> 02:55:49.190
would really make a difference,
02:55:49.190 --> 02:55:51.940
I've already talked about
open interconnect obligations
02:55:51.940 --> 02:55:54.584
and rural areas and
that doesn't just mean
02:55:54.584 --> 02:55:56.482
that fiber going through then
02:55:56.482 --> 02:56:00.361
is an interconnection
obligation in San Francisco.
02:56:00.361 --> 02:56:03.120
It means that there's an
interconnection obligation
02:56:03.120 --> 02:56:05.930
in that rural community
where that fiber passes
02:56:05.930 --> 02:56:10.930
and and that potentially
involves more cost
02:56:10.960 --> 02:56:13.110
and challenge for companies,
02:56:13.110 --> 02:56:17.310
there's no question about
it but it also has a qualitative
02:56:17.310 --> 02:56:21.230
and quantitative difference
in terms of potential outcomes.
02:56:21.230 --> 02:56:23.813
The address level data
we talked about already,
02:56:26.040 --> 02:56:28.440
just general transparency requirements
02:56:28.440 --> 02:56:31.580
would be enormously helpful.
02:56:31.580 --> 02:56:35.990
And the final thing that I
spent a lot of time observing
02:56:35.990 --> 02:56:39.636
in terms of rural upgrade patterns
02:56:39.636 --> 02:56:43.400
and then the various ways
that the funding streams flow
02:56:43.400 --> 02:56:48.400
is that there's the way
this mechanisms are set up,
02:56:49.200 --> 02:56:51.950
the incentives are for
incremental spending
02:56:51.950 --> 02:56:55.050
not for large significant
investment upfront,
02:56:55.050 --> 02:56:58.320
do it once, do it right,
you've got fiber instead.
02:56:58.320 --> 02:57:01.800
We have ongoing
incremental, costly spending
02:57:01.800 --> 02:57:04.560
that in the medium term,
not even the long-term
02:57:04.560 --> 02:57:06.410
but in the medium
term it is more expensive
02:57:06.410 --> 02:57:09.160
than doing it right in the first place.
02:57:09.160 --> 02:57:14.160
And as a result it
becomes highly profitable
02:57:14.680 --> 02:57:17.907
to not upgrade in a significant way
02:57:17.907 --> 02:57:19.630
and that's a national observation,
02:57:19.630 --> 02:57:22.969
I'm not speaking to
Frontier in California
02:57:22.969 --> 02:57:27.969
but I would say that if I
were creating requirements
02:57:29.090 --> 02:57:34.090
based on public benefit or
otherwise granting the requests
02:57:36.310 --> 02:57:39.410
of larger companies, I might wanna think
02:57:39.410 --> 02:57:42.158
about what the upgrade
path needs to look like.
02:57:42.158 --> 02:57:44.630
I might also want to think
02:57:44.630 --> 02:57:48.610
about the geographic differentiation
02:57:48.610 --> 02:57:52.057
as between the areas that
the company might want
02:57:52.057 --> 02:57:54.303
and the areas that it doesn't want
02:57:54.303 --> 02:57:56.580
and spread it among those two,
02:57:56.580 --> 02:57:58.980
rather than allowing for cherry picking
02:57:58.980 --> 02:58:02.150
where the economics then
become that much more challenging
02:58:02.150 --> 02:58:05.310
for the areas that are
not considered desirable.
02:58:05.310 --> 02:58:09.613
So something more requiring spending
02:58:12.830 --> 02:58:15.980
across a larger area
effectively normalizing
02:58:15.980 --> 02:58:18.750
across a larger area for the economics
02:58:18.750 --> 02:58:23.290
rather than allowing
selection based on what
02:58:23.290 --> 02:58:25.020
is most desirable.
02:58:25.020 --> 02:58:26.520
I'll stop there on that topic.
02:58:30.870 --> 02:58:32.960
Great and thank you,
I have some follow up
02:58:32.960 --> 02:58:34.440
but I will save those for a moment
02:58:34.440 --> 02:58:36.723
and goes into question
and answer portion.
02:58:38.804 --> 02:58:40.260
So I know we had some
little bit of an excitement
02:58:40.260 --> 02:58:42.390
there when we were offline for a moment
02:58:42.390 --> 02:58:45.990
but I was planning to ask
the Commissioners first
02:58:45.990 --> 02:58:48.170
for any questions and
follow up and then we'll go
02:58:48.170 --> 02:58:50.900
to the phone lines and email questions.
02:58:50.900 --> 02:58:53.700
So with that Commissioner Guzman Aceves
02:58:53.700 --> 02:58:56.700
or other Commissioners, do
you have any follow up questions?
02:58:58.260 --> 02:59:00.450
Thank you and thanks
again for the panelists
02:59:00.450 --> 02:59:05.040
for their patience on
another 2020 lively event
02:59:05.040 --> 02:59:07.500
is keeping us going and I'm glad
02:59:07.500 --> 02:59:09.163
it was just a false alarm there.
02:59:10.890 --> 02:59:15.450
Actually, you know, some
of this was you were starting
02:59:15.450 --> 02:59:17.913
to answer Joanne towards the end here.
02:59:19.830 --> 02:59:23.110
In a question I have, I
think you you've all laid out
02:59:23.110 --> 02:59:26.988
some great visions about
the options and opportunities,
02:59:26.988 --> 02:59:31.300
I'd like the term publicly enabled,
02:59:31.300 --> 02:59:33.240
you might say that, right?
02:59:33.240 --> 02:59:38.110
And all the options that
exist and again it's kind
02:59:38.110 --> 02:59:41.213
of bringing it back to this
transaction in particular,
02:59:42.365 --> 02:59:46.560
what are some key
obligations that you think
02:59:46.560 --> 02:59:47.690
should be put in place?
02:59:47.690 --> 02:59:51.400
And you've mentioned some
but two really great suggestion
02:59:51.400 --> 02:59:54.890
on having community participation
and community presence
02:59:54.890 --> 02:59:56.273
in the planning process,
02:59:57.440 --> 03:00:01.310
timely data and what are
some of the others, you know,
03:00:01.310 --> 03:00:06.310
in terms of, you know, how
we functionally do some of this,
03:00:08.860 --> 03:00:11.000
create these opportunities better.
03:00:11.000 --> 03:00:12.620
I know, it's still a general question,
03:00:12.620 --> 03:00:14.479
but if you could maybe kind of narrow
03:00:14.479 --> 03:00:19.017
into the transaction points
and any further thoughts
03:00:19.017 --> 03:00:20.684
that you have there.
03:00:24.477 --> 03:00:26.187
Maybe Joanne can
you speak to that first
03:00:26.187 --> 03:00:27.633
and then Blair and Bill?
03:00:30.051 --> 03:00:32.623
Okay, yes, thank
you, Commissioner.
03:00:34.420 --> 03:00:39.390
So, let me put a caveat on this,
03:00:39.390 --> 03:00:44.390
that I am a broadband
analyst and business strategist
03:00:44.860 --> 03:00:49.450
so I can't speak to what can actually,
03:00:49.450 --> 03:00:52.340
as a legal matter, be done.
03:00:52.340 --> 03:00:55.200
I can speak from a business
standpoint about the kinds
03:00:55.200 --> 03:00:56.993
of things I would want to see.
03:00:58.796 --> 03:01:03.030
As, you know, with the
hope that enforcement
03:01:03.030 --> 03:01:08.030
can be vigorous, we'd want to see medium
03:01:08.930 --> 03:01:13.550
to long-term plans around
upgrade and investments,
03:01:13.550 --> 03:01:18.550
including commitments about
how federal funds are spent
03:01:18.750 --> 03:01:23.750
and in the event that those
benchmarks are not reached
03:01:27.460 --> 03:01:31.220
that the opportunity for
local communities to step
03:01:31.220 --> 03:01:36.220
in and take over would
be the consequence.
03:01:41.200 --> 03:01:43.890
And ideally, from a business standpoint,
03:01:43.890 --> 03:01:47.030
the funding mechanisms
that would otherwise support
03:01:47.030 --> 03:01:51.560
the company would
then be part of the solution
03:01:51.560 --> 03:01:56.560
for the local community or the tribe.
03:01:56.560 --> 03:01:58.200
Again, I can't speak to what's feasible
03:01:58.200 --> 03:02:02.363
from a legal standpoint but certainly
03:02:02.363 --> 03:02:07.363
from a kind of business
incentives standpoint
03:02:08.560 --> 03:02:13.560
that seems like it might be
a reasonable path forward.
03:02:16.900 --> 03:02:21.570
I also, just coming back to
the point I made at the end
03:02:21.570 --> 03:02:23.970
of my last set of remarks around
03:02:23.970 --> 03:02:28.970
that normalization effectively
as an economic matter,
03:02:29.050 --> 03:02:34.050
that the upgrade path
can't be only in the areas
03:02:34.650 --> 03:02:37.250
or the neighborhoods
that are most desirable
03:02:37.250 --> 03:02:39.260
because it makes the ones that are left
03:02:39.260 --> 03:02:41.920
that are less economically viable,
03:02:41.920 --> 03:02:45.670
less and less economically
viable as a result
03:02:45.670 --> 03:02:48.300
and that I think speaks to
what one of the panelists
03:02:48.300 --> 03:02:53.300
on the last panel said
about the strong likelihood
03:02:53.870 --> 03:02:57.740
that we're going to see our
digital devices as nation grow.
03:02:57.740 --> 03:03:00.700
In coming years, we are
not narrowing the divide,
03:03:00.700 --> 03:03:04.180
we are actually exacerbating
them pretty significantly
03:03:04.180 --> 03:03:08.840
and if the requirements and obligations
03:03:08.840 --> 03:03:12.040
on the company going
forward are for things
03:03:12.040 --> 03:03:14.060
that are economically very attractive
03:03:14.060 --> 03:03:19.060
to it but also matched by the pieces
03:03:20.050 --> 03:03:25.050
that are less attractive, that
would potentially normalize
03:03:25.060 --> 03:03:28.183
across that particular set
of economic challenges.
03:03:33.320 --> 03:03:36.120
And Blair to you and
Commissioner Aceves you
03:03:37.210 --> 03:03:40.143
can paraphrase the
question again as a refresher.
03:03:42.620 --> 03:03:44.870
Okay, well, I wasn't
sure look like Bill
03:03:44.870 --> 03:03:47.593
was not ready to go on it, no?
03:03:47.593 --> 03:03:48.426
Okay.
03:03:52.170 --> 03:03:54.938
I generally agree with
what you said and I think that,
03:03:54.938 --> 03:03:59.340
that point about if you take an area
03:03:59.340 --> 03:04:02.940
and you say we're
gonna now serve 60% of it,
03:04:02.940 --> 03:04:05.250
the remaining 40% actually
becomes more difficult
03:04:05.250 --> 03:04:07.330
to serve is a really important point,
03:04:07.330 --> 03:04:11.550
I would also just note and
I've got a bunch of writing
03:04:11.550 --> 03:04:13.060
in bookings about this.
03:04:13.060 --> 03:04:18.060
As we see things like 5G
rollout in the wealthier areas,
03:04:18.100 --> 03:04:22.857
as we see things like fiber rollout
03:04:22.857 --> 03:04:26.160
and these are good developments
but they're gonna roll out
03:04:26.160 --> 03:04:29.330
in the wealthier areas,
they're gonna lower the price
03:04:29.330 --> 03:04:34.330
of the high end product in those areas
03:04:34.531 --> 03:04:37.280
but in the lower income areas,
03:04:37.280 --> 03:04:39.000
you're gonna have fewer choices,
03:04:39.000 --> 03:04:40.310
the quality we brought,
03:04:40.310 --> 03:04:42.540
and you actually will
ironically get a situation
03:04:42.540 --> 03:04:44.870
where the prices may be higher
03:04:44.870 --> 03:04:46.260
because of that lack of competition.
03:04:46.260 --> 03:04:49.620
So I think that's a major
public policy problem
03:04:49.620 --> 03:04:51.120
that frankly we've been addressing
03:04:51.120 --> 03:04:53.710
ever since the breakup of AT&T.
03:04:53.710 --> 03:04:57.030
With a monopoly, you can
just kind of regulate them
03:04:57.030 --> 03:05:00.580
in various ways, you get a
lot of benefits of competition
03:05:00.580 --> 03:05:03.560
but competition tends
to drive starts with kind
03:05:03.560 --> 03:05:05.569
of a cherry picking element,
03:05:05.569 --> 03:05:08.910
I don't mean that in a
kind of a negative way,
03:05:08.910 --> 03:05:11.070
I'm just saying the law
of economics means
03:05:11.070 --> 03:05:14.170
that new competitive
companies are gonna go
03:05:14.170 --> 03:05:17.580
to the areas where they
can get the greater return
03:05:17.580 --> 03:05:19.980
and public policy so I understand that.
03:05:19.980 --> 03:05:24.980
I would just add to what
Joanne said in that light,
03:05:25.780 --> 03:05:29.730
that now again, you have
like larger build out obligations,
03:05:29.730 --> 03:05:31.945
service quality obligations,
03:05:31.945 --> 03:05:35.460
I think it's really important
that the company agreed
03:05:35.460 --> 03:05:40.460
to some kind of low
price entry level product
03:05:40.540 --> 03:05:42.450
for low income persons.
03:05:42.450 --> 03:05:43.960
There a variety of
different ways of doing it,
03:05:43.960 --> 03:05:45.700
frankly a lot of companies are doing
03:05:45.700 --> 03:05:47.350
it on a volunteer basis,
03:05:47.350 --> 03:05:49.880
Comcast probably most significantly
03:05:49.880 --> 03:05:52.840
with its Internet Essentials Program.
03:05:52.840 --> 03:05:54.910
There are good economic reasons to do
03:05:54.910 --> 03:05:58.610
it but the big point that I would make
03:05:58.610 --> 03:06:00.940
is when we're putting government money
03:06:00.940 --> 03:06:03.521
into various companies
or we're allowing them
03:06:03.521 --> 03:06:07.000
to exit bankruptcy
in the case of Frontier
03:06:07.000 --> 03:06:09.450
where there's a lot of rural entities,
03:06:09.450 --> 03:06:12.530
they do have certain kinds
of pricing power in the way
03:06:12.530 --> 03:06:17.340
at least that and Joanne
and Bill are welcome to join in.
03:06:17.340 --> 03:06:22.340
If you price optimize
or for purposes of return
03:06:22.530 --> 03:06:26.930
on investment, you want pricing do 100%,
03:06:26.930 --> 03:06:29.586
you really are pricing to about 70,
03:06:29.586 --> 03:06:33.120
80% depends on the
demographics of the area
03:06:33.120 --> 03:06:34.430
and it doesn't terribly bother you
03:06:34.430 --> 03:06:38.180
that you're not getting
the additional folks
03:06:38.180 --> 03:06:41.600
because in order to get them,
you'd have to lower your price
03:06:41.600 --> 03:06:43.844
and then you would bring
all of your revenues down.
03:06:43.844 --> 03:06:47.245
So what various companies have realized
03:06:47.245 --> 03:06:50.390
is if they can do an offering
that's really just oriented
03:06:50.390 --> 03:06:54.640
for low income folks,
there is some benefit
03:06:54.640 --> 03:06:58.740
to the companies but there
is a significant public benefit
03:06:58.740 --> 03:06:59.830
and indeed, I think if we look
03:06:59.830 --> 03:07:02.460
at Comcast Internet
Essentials I would argue
03:07:02.460 --> 03:07:04.920
that in some ways it's
even more successful
03:07:04.920 --> 03:07:07.950
than the FCC Lifeline program.
03:07:07.950 --> 03:07:09.420
They're kind of doing different things,
03:07:09.420 --> 03:07:12.200
one is really doing a
mobile voice service
03:07:12.200 --> 03:07:15.130
but I think it's really
important for purposes
03:07:15.130 --> 03:07:16.730
of what's called the homework gap
03:07:16.730 --> 03:07:19.570
but it's really much more
than the homework gap,
03:07:19.570 --> 03:07:21.880
it's a digital learning gap.
03:07:21.880 --> 03:07:26.880
So to do that, we often need
to have much lower prices
03:07:28.725 --> 03:07:30.215
for that in home broadband.
03:07:30.215 --> 03:07:32.980
The same is gonna
be true for telehealth,
03:07:32.980 --> 03:07:35.430
one of the most interesting
things that come out of COVID
03:07:35.430 --> 03:07:39.650
is we've gone from
approximately less than 1%,
03:07:39.650 --> 03:07:42.530
the visits to medical
professionals being
03:07:43.450 --> 03:07:46.803
over communications networks
to now somewhere between 20
03:07:46.803 --> 03:07:49.560
and 30% and that number
is gonna keep going up.
03:07:49.560 --> 03:07:52.470
So people don't have
broadband in their homes
03:07:52.470 --> 03:07:54.240
with devices that are really capable
03:07:54.240 --> 03:07:59.110
of quality two-way
video and mobile phones
03:07:59.110 --> 03:08:02.690
can do some things but
they can't do a lot of things.
03:08:02.690 --> 03:08:05.180
If you don't have that,
you're gonna be cut off
03:08:05.180 --> 03:08:07.060
from a lot of what
medicine in the next five
03:08:07.060 --> 03:08:09.100
to 10 years will be doing.
03:08:09.100 --> 03:08:11.050
Another one that I
think is really important
03:08:11.050 --> 03:08:14.010
is when someone becomes
unemployed whether
03:08:14.010 --> 03:08:17.383
it's because of COVID or
not or whatever the reason is,
03:08:18.300 --> 03:08:21.030
if you wanna train for
a job, search for job,
03:08:21.030 --> 03:08:23.563
apply for a job, you're doing it online.
03:08:24.950 --> 03:08:29.110
And in deed, there's research
to suggest that people who
03:08:29.110 --> 03:08:33.370
are online get jobs faster
03:08:33.370 --> 03:08:35.560
because of that they've
had that ability to train,
03:08:35.560 --> 03:08:38.530
search and apply much more readily
03:08:38.530 --> 03:08:40.890
so from a system
perspective, we want everyone
03:08:40.890 --> 03:08:42.110
to stay on line.
03:08:42.110 --> 03:08:45.236
So those are the kinds
of things that are that I
03:08:45.236 --> 03:08:49.360
would be looking to
make public obligations.
03:08:49.360 --> 03:08:53.860
There are some cost to
the companies but I think
03:08:53.860 --> 03:08:57.020
those are reasonable
requests to make sure
03:08:57.020 --> 03:08:59.760
that particularly in areas where there
03:08:59.760 --> 03:09:01.443
is very limited competition.
03:09:03.730 --> 03:09:06.180
Yeah, Blair I would
agree, I would just add that,
03:09:06.180 --> 03:09:07.900
when I was talking about
community involvement,
03:09:07.900 --> 03:09:12.900
I think the obligation should
be a community involved plan
03:09:14.520 --> 03:09:16.860
to address access, right?
03:09:16.860 --> 03:09:21.860
Where are the gaps in access
to address device shortages
03:09:22.270 --> 03:09:25.050
and also to address
digital literacy issues
03:09:25.050 --> 03:09:28.450
so we're a holistic plan
but also with a focus
03:09:28.450 --> 03:09:31.441
on funding sources
whether it's federal or state,
03:09:31.441 --> 03:09:36.441
agreed to between ImproveCo
locally and the local community.
03:09:38.030 --> 03:09:41.320
Again, very much like what Ms.
Bietz said the Tuolumne band,
03:09:41.320 --> 03:09:42.770
she was just saying,
listen to our needs,
03:09:42.770 --> 03:09:44.060
listen we are stakeholders,
03:09:44.060 --> 03:09:46.210
let's work collaboratively
because I think
03:09:46.210 --> 03:09:48.810
often the communities
don't know, my experience,
03:09:48.810 --> 03:09:52.010
they don't know even what
the local like Internet Essential
03:09:52.010 --> 03:09:53.573
is from Comcast, how to get into it,
03:09:53.573 --> 03:09:54.780
it's tricky sometimes
03:09:54.780 --> 03:09:56.602
but when they learn
they're better at it.
03:09:56.602 --> 03:09:58.560
Same thing with some
of the California programs,
03:09:58.560 --> 03:10:01.800
Lifeline and other
podcast for being ones.
03:10:01.800 --> 03:10:05.300
These may be a simple
playbook coming out of this plan
03:10:05.300 --> 03:10:06.870
that would help the community
03:10:06.870 --> 03:10:10.500
and the existing provider
work deciding what parts
03:10:10.500 --> 03:10:11.930
can be politically parts can be private
03:10:11.930 --> 03:10:13.503
and then how to make it happen.
03:10:15.750 --> 03:10:16.950
Thanks for the question.
03:10:20.800 --> 03:10:22.970
Thanks so much Bill.
03:10:22.970 --> 03:10:27.210
I don't see other
Commissioners on, do you have,
03:10:27.210 --> 03:10:29.420
at at least Commissioner Shiroma.
03:10:29.420 --> 03:10:32.251
Are there questions from
other Commissioners?
03:10:32.251 --> 03:10:34.001
Commissioner Shiroma.
03:10:35.390 --> 03:10:37.660
Thank you, thank
you to the panel.
03:10:37.660 --> 03:10:42.660
Well, let me start with,
let's advice with again,
03:10:49.450 --> 03:10:54.443
in terms of, we have a
company that's in Chapter 11,
03:10:55.723 --> 03:11:00.723
that purchased sizable assets
from Verizon a few years ago,
03:11:02.700 --> 03:11:06.530
half an extensive infrastructure network
03:11:07.544 --> 03:11:12.544
through some areas that are very rural
03:11:14.590 --> 03:11:19.515
and also urban and we
heard from representatives
03:11:19.515 --> 03:11:24.515
from Frontier that they
are in dire financial straits
03:11:27.320 --> 03:11:30.350
in terms of how to balance the books.
03:11:30.350 --> 03:11:33.943
Now in navigating bankruptcy and what we
03:11:40.470 --> 03:11:43.027
as Commissioners need to do to look out
03:11:43.027 --> 03:11:46.522
for the customers and I am
the assigned Commissioner now
03:11:46.522 --> 03:11:50.870
on Lifeline and how do we,
03:11:50.870 --> 03:11:54.603
as I think Matt said in the last panel,
03:11:57.698 --> 03:12:02.698
any advice on navigating
that while also looking
03:12:03.900 --> 03:12:08.347
to lift customers who are on
Lifeline because, you know,
03:12:08.347 --> 03:12:13.000
there's been the structure of reality
03:12:13.000 --> 03:12:18.000
that customers get
dragged to the cheapest stuff,
03:12:19.890 --> 03:12:24.530
the lowest customer service,
the least amount of bandwidth
03:12:25.660 --> 03:12:29.510
and it doesn't happen on
the energy side of things.
03:12:29.510 --> 03:12:31.247
The energy side of things,
03:12:31.247 --> 03:12:35.870
electricity is electricity
and a discount
03:12:35.870 --> 03:12:38.673
or the care customers on electricity,
03:12:39.580 --> 03:12:44.580
it's not on a lesser grade,
what's on to the house so forth.
03:12:48.340 --> 03:12:53.340
So kind of a big ticket
question but really from in terms
03:12:53.640 --> 03:12:56.393
of you all being the sort panel,
03:12:58.694 --> 03:13:02.530
any advice to throw our way
03:13:02.530 --> 03:13:04.823
on that as we navigate the bankruptcy?
03:13:07.646 --> 03:13:08.927
I don't know if any panelist
has an immediate response
03:13:08.927 --> 03:13:12.360
but I'll prefer to alphabetical
order by first name,
03:13:12.360 --> 03:13:15.070
Blair if you have anything.
03:13:15.070 --> 03:13:15.903
Thank you.
03:13:17.660 --> 03:13:22.660
Look, I'm gonna say
something which is not often said
03:13:22.835 --> 03:13:25.690
but I believe to be true which is,
03:13:25.690 --> 03:13:28.780
we think of Lifeline as
being the program by
03:13:28.780 --> 03:13:31.500
which we're gonna connect
everyone to broadband,
03:13:31.500 --> 03:13:33.170
that is not the history of lifeline,
03:13:33.170 --> 03:13:34.923
that's not the reality of lifeline.
03:13:36.130 --> 03:13:39.440
Lifeline was developed in the 1980s
03:13:39.440 --> 03:13:42.410
under the former president
who was the former Governor
03:13:42.410 --> 03:13:45.760
of California to make
sure that everybody
03:13:45.760 --> 03:13:47.800
had a voice connection.
03:13:47.800 --> 03:13:50.640
And that's really what
the program has been,
03:13:50.640 --> 03:13:52.310
that is the way it is used today,
03:13:52.310 --> 03:13:55.470
most people who have it
have some small amount
03:13:55.470 --> 03:14:00.470
of data but when we when we
talk about what we want people
03:14:00.620 --> 03:14:01.963
to be able to do on broadband
03:14:01.963 --> 03:14:06.630
that has public positive
externalities like kids being able
03:14:06.630 --> 03:14:11.630
to learn, like people
who can't travel about,
03:14:11.730 --> 03:14:14.110
people whom traveling to visit a doctor
03:14:14.110 --> 03:14:16.520
is very arduous being
able to take advantage
03:14:16.520 --> 03:14:19.453
of telehealth to be able
to monitor their health.
03:14:21.090 --> 03:14:24.480
Again, unemployed
people doing job training,
03:14:24.480 --> 03:14:29.480
those are things for which
lifelines can solve that problem.
03:14:30.490 --> 03:14:31.968
And if what you say to low income people
03:14:31.968 --> 03:14:36.968
is you have to make a choice
between in home broadband
03:14:37.410 --> 03:14:41.520
which allows you to do
certain things or mobile voice,
03:14:41.520 --> 03:14:43.450
it is my perception on the basis of lots
03:14:43.450 --> 03:14:46.430
of conversations with various
people who are working
03:14:46.430 --> 03:14:47.690
with low income communities
03:14:47.690 --> 03:14:51.910
as most people choose
our mobile voice with kind
03:14:51.910 --> 03:14:55.180
of limited data but they'll
use their money that way,
03:14:55.180 --> 03:14:57.220
totally understandable.
03:14:57.220 --> 03:14:59.210
In terms of staying
connected all the time,
03:14:59.210 --> 03:15:01.660
there lots of safety
and security reasons,
03:15:01.660 --> 03:15:02.493
if you're driving in a car you
03:15:02.493 --> 03:15:04.353
wanna be able to do that, et cetera.
03:15:05.350 --> 03:15:10.350
Blair, sorry, maybe you
are not aware but again,
03:15:12.290 --> 03:15:14.680
today's Wednesday, tomorrow I would love
03:15:14.680 --> 03:15:19.510
to get a vote on a proposed decision
03:15:21.809 --> 03:15:26.809
that judging issues
which includes a free
03:15:28.240 --> 03:15:32.010
and low cost broadband option Lifeline
03:15:32.010 --> 03:15:37.010
and to be subsidized
by our lifeline budget,
03:15:37.270 --> 03:15:41.820
this is brand new and
again, I think you and the fact
03:15:41.820 --> 03:15:44.340
that there have been
broadband offerings,
03:15:44.340 --> 03:15:49.340
bundle offerings
provided by US companies
03:15:50.630 --> 03:15:52.810
in some of this rural areas.
03:15:52.810 --> 03:15:56.030
Our last one subsidy
has been for the voice
03:15:57.610 --> 03:16:01.700
but we are proposing for the first time
03:16:01.700 --> 03:16:04.333
to include databases.
03:16:05.780 --> 03:16:09.280
Companies can get a subsidy from us,
03:16:09.280 --> 03:16:10.923
proposed not put it out yet,
03:16:12.093 --> 03:16:15.140
get a free offer and a low cost option.
03:16:15.140 --> 03:16:19.300
So earlier on our Governor
issued an executive order
03:16:19.300 --> 03:16:20.750
on broadband for all
03:16:20.750 --> 03:16:22.810
and my colleague
conditions Commissioners
03:16:22.810 --> 03:16:25.110
and myself are just adding up
03:16:25.110 --> 03:16:30.110
the order instituting
rulemaking on broadband for all.
03:16:30.680 --> 03:16:33.510
So there's a long
journey, that's for sure.
03:16:33.510 --> 03:16:34.343
Are you all right?
03:16:34.343 --> 03:16:35.543
Yeah.
03:16:35.543 --> 03:16:36.810
Once there was a
survey so everyone
03:16:36.810 --> 03:16:40.240
has purchased phone and
you know, when I was born,
03:16:40.240 --> 03:16:42.400
my parents did not have a phone.
03:16:42.400 --> 03:16:44.370
We're farm worker family, we were living
03:16:44.370 --> 03:16:47.175
in a converted barn, no indoor plumbing
03:16:47.175 --> 03:16:52.175
and the landlord crossed
away at the phone and you know,
03:16:52.450 --> 03:16:54.843
it's hard to even
imagine days like those.
03:16:56.309 --> 03:17:00.156
If I cut you off but I think
what yo were saying is ...
03:17:00.156 --> 03:17:01.764
No no, Commissioner
that's great.
03:17:01.764 --> 03:17:06.020
Is that gonna be in blue
or does the individual
03:17:06.020 --> 03:17:09.140
have a choice between the mobile voice
03:17:09.140 --> 03:17:11.440
and the in home broadband
or do they get both?
03:17:12.920 --> 03:17:15.200
I have one interjection,
03:17:15.200 --> 03:17:18.160
if we can try and steer
things as much as possible
03:17:18.160 --> 03:17:21.260
to the the proceeding at hand especially
03:17:21.260 --> 03:17:23.600
with the vote pending tomorrow.
03:17:23.600 --> 03:17:25.643
Thank you Michael,
I really am not able
03:17:25.643 --> 03:17:27.880
to talk any further above.
03:17:27.880 --> 03:17:30.490
I just wanted to update
you on what we're doing.
03:17:30.490 --> 03:17:33.150
But we're talking about
the Frontier of bankruptcy,
03:17:33.150 --> 03:17:34.550
I guess no further question.
03:17:38.450 --> 03:17:43.450
From a policy perspective
, what principles we look
03:17:48.650 --> 03:17:53.050
at to have in place in
this bankruptcy proceeding
03:17:54.525 --> 03:17:56.520
to ensure that, you
know, we're upward trend,
03:17:56.520 --> 03:18:00.010
not a downward trend
and the outer bankruptcy
03:18:00.010 --> 03:18:03.873
on the quality of
service for a while I can.
03:18:10.491 --> 03:18:11.900
I'll go back to Blair
on the other panelists
03:18:11.900 --> 03:18:15.963
but Allison Ellis, I believe
you had some input?
03:18:17.670 --> 03:18:20.637
Well, yes, I do feel
it's important to say that,
03:18:20.637 --> 03:18:22.910
you know, a lot of the discussion today
03:18:22.910 --> 03:18:24.600
has centered around
the need for broadband
03:18:24.600 --> 03:18:27.967
in rural areas and trying
to bridge the digital divide
03:18:27.967 --> 03:18:31.003
and we agree that rural
broadband is needed.
03:18:33.253 --> 03:18:36.060
You know, we have been
a big part of this addressing
03:18:36.060 --> 03:18:38.542
that need in the state of California.
03:18:38.542 --> 03:18:41.470
California, the FCC , other states
03:18:41.470 --> 03:18:44.100
have enacted programs
specifically designed
03:18:44.100 --> 03:18:47.550
to help broadband
deployment in these rural areas
03:18:47.550 --> 03:18:49.900
and these programs are
needed as I think everyone
03:18:49.900 --> 03:18:52.980
on these panels
understand because this type
03:18:52.980 --> 03:18:56.970
of investment is not
economically feasible without them.
03:18:56.970 --> 03:19:00.960
And, you know, broadband
is not a regulated service
03:19:00.960 --> 03:19:02.650
and when Frontier makes deployment,
03:19:02.650 --> 03:19:05.310
it's not guaranteed a
return on its investment.
03:19:05.310 --> 03:19:07.490
For its part Verizon
before we purchased,
03:19:07.490 --> 03:19:10.610
it didn't participate in
these programs but Frontier
03:19:10.610 --> 03:19:14.173
has and even though
it's not obligated to do so.
03:19:16.180 --> 03:19:18.880
As I said earlier, Frontier recognizes
03:19:18.880 --> 03:19:21.880
that there is a desire
for broader availability
03:19:21.880 --> 03:19:25.600
in many communities
in California and I want
03:19:25.600 --> 03:19:29.050
to emphasize that at the
time of the 2016 transaction,
03:19:29.050 --> 03:19:30.960
we voluntarily agreed
03:19:30.960 --> 03:19:33.470
to significantly build out commitments.
03:19:33.470 --> 03:19:38.430
And as of today, we've connected
more than 650,000 homes
03:19:38.430 --> 03:19:41.280
in California since
we took over in 2016,
03:19:41.280 --> 03:19:43.030
just four years ago.
03:19:43.030 --> 03:19:47.730
In tribal areas as of 2020,
Frontier has leveraged CAF II
03:19:47.730 --> 03:19:52.153
to deploy broadband and
CASF programs to deploy
03:19:52.153 --> 03:19:55.070
both broadband in this
tribal communities and,
03:19:55.070 --> 03:19:58.070
you know, reach more
than 15,000 households.
03:19:58.070 --> 03:20:01.230
So I just wanna keep
insight that, you know,
03:20:01.230 --> 03:20:03.340
and bring us back to
sort of the core question
03:20:03.340 --> 03:20:05.580
that's before the Commission
03:20:05.580 --> 03:20:08.120
which is whether the
Commission should approve
03:20:08.120 --> 03:20:09.850
the corporate restructuring of Frontier
03:20:09.850 --> 03:20:11.760
that will allow it to continue
03:20:11.760 --> 03:20:14.540
to provide regulated
voice services in the state,
03:20:14.540 --> 03:20:19.230
continue to be a competitor
and continue to be, you know,
03:20:19.230 --> 03:20:22.110
involved in building out
broadband to some of the areas
03:20:22.110 --> 03:20:26.801
in California that are most
in need and the alternative
03:20:26.801 --> 03:20:31.710
is a status quo and that
status quo means that Frontier
03:20:31.710 --> 03:20:34.380
will remain a financially
distressed company
03:20:34.380 --> 03:20:37.140
with unsustainable levels
of debt with, you know,
03:20:37.140 --> 03:20:40.580
significant interest
obligations on an annual basis
03:20:40.580 --> 03:20:42.040
and that would potentially
mean that, you know,
03:20:42.040 --> 03:20:45.620
it would be unable to offer
competitive services going
03:20:45.620 --> 03:20:49.630
into the future voice
services, broadband services
03:20:49.630 --> 03:20:51.040
and further broadband deployment.
03:20:51.040 --> 03:20:54.330
So I just sort of wanted
to make sure that I put
03:20:54.330 --> 03:20:57.183
that in perspective because, again,
03:20:58.681 --> 03:21:00.870
we agree that rural
broadband and bridging
03:21:00.870 --> 03:21:03.860
the digital divide is a
very important goal and,
03:21:03.860 --> 03:21:05.380
you know, that's why
we've been working toward
03:21:05.380 --> 03:21:08.830
it and I am proud that in four years,
03:21:08.830 --> 03:21:10.600
we have expanded broadband
03:21:10.600 --> 03:21:13.360
to more than 650,000
California households
03:21:13.360 --> 03:21:16.260
and I don't think that that
should go without recognition.
03:21:19.330 --> 03:21:20.163
Thank you for that,
03:21:20.163 --> 03:21:22.590
coming back to the
panelists in question.
03:21:22.590 --> 03:21:25.040
So I will paraphrase the question,
03:21:25.040 --> 03:21:30.040
then go back to Blair
and if Joanne or Bill you
03:21:30.530 --> 03:21:33.550
had any point in present of
paraphrasing in the context
03:21:33.550 --> 03:21:35.850
of the Frontier transfer,
03:21:35.850 --> 03:21:38.961
should some conditions or evaluation,
03:21:38.961 --> 03:21:42.310
look at whether or not low income
03:21:42.310 --> 03:21:46.360
or certain customers
receive the same service
03:21:46.360 --> 03:21:50.350
as customers and other
parts of the service territory.
03:21:50.350 --> 03:21:52.700
So with that, did you
have for the follow up
03:21:52.700 --> 03:21:54.193
on your remarks at all Blair?
03:21:55.421 --> 03:21:58.891
I would simply
say, again, you know,
03:21:58.891 --> 03:22:01.197
there's a relationship
between all of these things
03:22:01.197 --> 03:22:04.410
and what the California
PUC is thinking about
03:22:04.410 --> 03:22:05.690
in terms of in home broadband,
03:22:05.690 --> 03:22:08.160
I surely congratulate
you for understanding
03:22:08.160 --> 03:22:10.193
that the current Lifeline program
03:22:10.193 --> 03:22:13.980
is from the federal
level didn't solve a lot
03:22:13.980 --> 03:22:17.620
of the problems to create
those kind of public goods
03:22:17.620 --> 03:22:20.750
that we really look the
communications networks to do.
03:22:20.750 --> 03:22:24.800
So I would argue that
part of the conditions
03:22:26.260 --> 03:22:28.513
should include a low cost offering.
03:22:29.370 --> 03:22:31.740
I don't appreciate
the point that Allison
03:22:31.740 --> 03:22:36.187
is making about that
they are in a business
03:22:37.440 --> 03:22:40.400
in which they're trying
to do certain things
03:22:40.400 --> 03:22:43.270
and sometimes the
plans work and sometimes
03:22:43.270 --> 03:22:45.660
they don't and what the
purpose of bankruptcy
03:22:45.660 --> 03:22:48.257
is to be able to come out
with the financial resources
03:22:48.257 --> 03:22:51.560
that would enable them to build out
03:22:51.560 --> 03:22:53.800
and build higher quality services.
03:22:53.800 --> 03:22:58.610
I don't think that a low cost
offering jeopardizes that,
03:22:58.610 --> 03:23:02.810
I think it helps deliver
those kinds of like I said,
03:23:02.810 --> 03:23:05.373
public positive externalities.
03:23:07.823 --> 03:23:11.530
But that that's a
debatable point, I guess.
03:23:11.530 --> 03:23:14.754
Well, sorry
Michael if I can just...
03:23:14.754 --> 03:23:15.800
I guess we can go
to the other Panelists.
03:23:15.800 --> 03:23:18.240
I just did wanna jump in
on that because, you know,
03:23:18.240 --> 03:23:20.330
Blair was not at the earlier panel
03:23:20.330 --> 03:23:22.759
and so I just wanna make
sure it's clear to everyone
03:23:22.759 --> 03:23:26.740
that Frontier does
have a low income offer,
03:23:26.740 --> 03:23:29.100
we actually have two, we
have affordable broadband
03:23:29.100 --> 03:23:31.430
and Frontier fundamentals and in terms
03:23:31.430 --> 03:23:35.570
of the Frontier fundamental
offering in particular,
03:23:35.570 --> 03:23:38.440
it's not a low speed,
second class type connection,
03:23:38.440 --> 03:23:42.713
we offer some of the higher
speed tiers to those customers
03:23:43.740 --> 03:23:46.220
that qualify for Frontier fundamental,
03:23:46.220 --> 03:23:49.120
we have also taken
affirmative steps to lower
03:23:49.120 --> 03:23:50.700
the access bars so they don't
03:23:50.700 --> 03:23:55.230
have to go through that
laborious Lifeline qualification
03:23:55.230 --> 03:23:58.080
process which, you
know, frankly I find it difficult
03:23:58.080 --> 03:24:00.910
to make sure all of the
questions are answered correctly
03:24:00.910 --> 03:24:05.430
and, you know, the correct
documentation is provided.
03:24:05.430 --> 03:24:08.570
So, you know, on the
Frontier fundamental front
03:24:08.570 --> 03:24:11.013
where customers qualify for ...
03:24:12.100 --> 03:24:15.970
Sorry, Allison, I'm sorry,
just to keep us on track,
03:24:15.970 --> 03:24:18.160
we did provide time
for Frontier already,
03:24:18.160 --> 03:24:21.833
I really would prefer to
hear from the panelists.
03:24:21.833 --> 03:24:23.520
I appreciate that Blair
03:24:23.520 --> 03:24:26.820
was not here but this is not for Blair,
03:24:26.820 --> 03:24:31.330
this is for us and I just wanna
ask you to please the panel,
03:24:31.330 --> 03:24:32.980
you have your opportunity,
03:24:32.980 --> 03:24:35.520
you actually were afforded
more time than other parties
03:24:35.520 --> 03:24:38.910
so we've already received
some valid criticism for
03:24:38.910 --> 03:24:40.280
that because you could just ...
03:24:40.280 --> 03:24:41.820
I understand.
03:24:41.820 --> 03:24:43.260
Okay, thank you.
03:24:43.260 --> 03:24:44.543
Michael please continue.
03:24:45.920 --> 03:24:48.750
With that, Joanne or
Bill did you have any input
03:24:48.750 --> 03:24:51.830
on this question of making
sure that all customers
03:24:51.830 --> 03:24:52.803
are well served?
03:24:58.138 --> 03:24:59.888
I think you're muted.
03:25:02.280 --> 03:25:03.113
What I would share
03:25:03.113 --> 03:25:06.490
is just my experience
watching deployment
03:25:06.490 --> 03:25:11.490
patterns nationally is that
when it comes to upgrades,
03:25:12.660 --> 03:25:17.070
income levels are without
question one of the factors that,
03:25:17.070 --> 03:25:22.070
you know, are part of what
might sometimes be complex,
03:25:22.430 --> 03:25:25.230
sometimes a very simple
formula that has to do
03:25:25.230 --> 03:25:28.950
with build out costs or upgrade costs
03:25:28.950 --> 03:25:32.080
on a per customer basis
and potential revenues
03:25:32.080 --> 03:25:35.930
on a per customer basis and
an income level fit into that.
03:25:35.930 --> 03:25:40.930
There's no question because
different potential revenues
03:25:41.488 --> 03:25:46.430
will be a factor depending
on the income level
03:25:46.430 --> 03:25:49.833
of the community, it is
absolutely not the only factor,
03:25:50.850 --> 03:25:53.033
deployment costs are
going to be pretty significant
03:25:53.033 --> 03:25:56.127
so and other kinds of demographics
03:25:56.127 --> 03:26:00.630
but that will be an
issue and it is something
03:26:00.630 --> 03:26:03.330
that is concerned
because there are patterns
03:26:03.330 --> 03:26:06.610
in some part of the country
and I'm speaking nationally
03:26:06.610 --> 03:26:09.270
in generalizations here
and give you examples
03:26:09.270 --> 03:26:10.910
from other parts of
the country if you'd like.
03:26:10.910 --> 03:26:12.970
But there are definitely
some parts of the country
03:26:12.970 --> 03:26:15.680
where in urban areas, we
see wealthy neighborhoods
03:26:15.680 --> 03:26:18.830
being upgraded to
fiber and gigabit speeds
03:26:18.830 --> 03:26:20.810
and very low income areas
03:26:20.810 --> 03:26:24.920
are still at outrageously
slow DSL speeds
03:26:24.920 --> 03:26:29.010
of a few megabits per second
downstream and kilobits
03:26:29.010 --> 03:26:30.900
in the upstream direction.
03:26:30.900 --> 03:26:32.490
Even if it's five times that much,
03:26:32.490 --> 03:26:35.180
it's still not what any of
us would consider sufficient
03:26:35.180 --> 03:26:38.150
to call broadband where we'd
be happy within our homes
03:26:38.150 --> 03:26:41.810
and those patterns
frequently align with income
03:26:41.810 --> 03:26:45.296
and it is without
question, very concerning
03:26:45.296 --> 03:26:48.660
and worthy of consideration.
03:26:48.660 --> 03:26:50.700
I do know that it's a
concern when it comes
03:26:50.700 --> 03:26:52.610
to things like customer service,
03:26:52.610 --> 03:26:55.410
customer service is
something that is delivered
03:26:56.730 --> 03:26:58.900
on a centralized basis and whether you
03:26:58.900 --> 03:27:00.170
are calling customer service
03:27:00.170 --> 03:27:01.270
from a low income neighborhood
03:27:01.270 --> 03:27:02.850
or a higher income neighborhood,
03:27:02.850 --> 03:27:05.095
you're likely to get
03:27:05.095 --> 03:27:08.000
the same customer
service representatives
03:27:08.000 --> 03:27:10.570
and receive roughly the
same treatment although
03:27:10.570 --> 03:27:12.371
if you're a big dollar customer,
03:27:12.371 --> 03:27:15.263
like an enterprise or
business class customer,
03:27:16.900 --> 03:27:18.620
you might see different
kinds of treatments
03:27:18.620 --> 03:27:20.360
that you're buying different products.
03:27:20.360 --> 03:27:21.800
For the consumer level, though,
03:27:21.800 --> 03:27:23.590
It's not gonna be that different
03:27:23.590 --> 03:27:25.880
but when it comes to deployment
03:27:25.880 --> 03:27:29.282
and as Blair pointed
out pricing and speed,
03:27:29.282 --> 03:27:31.590
these are critical factors.
03:27:31.590 --> 03:27:34.270
They're economically entirely rational,
03:27:34.270 --> 03:27:35.970
this is not slamming any company,
03:27:35.970 --> 03:27:39.490
these are companies that
are making very thoughtful,
03:27:39.490 --> 03:27:41.670
smart choices in the best interests
03:27:41.670 --> 03:27:44.910
of their shareholders but
from a policy standpoint
03:27:44.910 --> 03:27:48.020
they are devastating
because as Blair also pointed
03:27:48.020 --> 03:27:49.890
out a few minutes ago,
03:27:49.890 --> 03:27:52.121
in a 5G world and a fiber upgrade world,
03:27:52.121 --> 03:27:57.121
we are going to a significantly
greater a digital divide
03:27:57.870 --> 03:27:59.943
than we have been in the past.
03:28:02.200 --> 03:28:03.530
Thanks and Bill.
03:28:03.530 --> 03:28:04.363
Any Yeah,
03:28:04.363 --> 03:28:06.770
I would just add that
Allison it's great to hear about
03:28:06.770 --> 03:28:10.053
the Pioneer affordable broadband plans.
03:28:11.220 --> 03:28:12.730
We've been working
with a lot of communities
03:28:12.730 --> 03:28:15.220
around the country and they're finding
03:28:15.220 --> 03:28:17.830
that understanding the
the guts of those plans
03:28:17.830 --> 03:28:19.720
really helps them to
communicate to their citizens
03:28:19.720 --> 03:28:20.850
how to apply.
03:28:20.850 --> 03:28:24.060
Sometimes it's tricky, I would
just urge the Commission
03:28:24.060 --> 03:28:26.660
and Frontier to keep pushing
those plans particularly
03:28:26.660 --> 03:28:29.100
if they sound like
they're very equivalent
03:28:29.100 --> 03:28:31.100
to other customers in terms of speed
03:28:31.100 --> 03:28:33.210
which is wonderful
but there's often a gap
03:28:33.210 --> 03:28:34.360
in knowledge about how to apply
03:28:34.360 --> 03:28:36.610
and I would just
encourage you to keep it up.
03:28:37.940 --> 03:28:39.590
Well, thank you
and we do partner
03:28:39.590 --> 03:28:43.229
with the California
Emerging Technology Fund
03:28:43.229 --> 03:28:45.310
and they have been really
instrumental in helping
03:28:45.310 --> 03:28:49.313
to bring that information
to low income consumers.
03:28:50.650 --> 03:28:53.610
So with that, I'd
like to go to questions
03:28:53.610 --> 03:28:57.123
from the phone line and
then if other Commissioners
03:28:57.123 --> 03:29:00.130
have joined someone
just please, excuse me,
03:29:00.130 --> 03:29:02.690
please bring that to my
attention but questions
03:29:02.690 --> 03:29:04.750
from the phone line operator,
03:29:04.750 --> 03:29:07.080
if we have any and then Llela
03:29:07.080 --> 03:29:09.230
after that we will take
any email question.
03:29:10.960 --> 03:29:14.073
I'm sorry, no questions on
the phone lines at this time.
03:29:15.230 --> 03:29:18.032
Thank you, Llela
any email questions?
03:29:18.032 --> 03:29:22.580
Right, so we are expecting
to receive two callers
03:29:22.580 --> 03:29:26.500
so as soon as they are
ready, we will go back to them
03:29:26.500 --> 03:29:28.773
but for now, let me check the email.
03:29:29.740 --> 03:29:32.750
We do not have any
emails at this time that we
03:29:32.750 --> 03:29:36.800
have received questions
but we were informed
03:29:36.800 --> 03:29:40.650
that there will be two
callers that will be calling
03:29:40.650 --> 03:29:42.740
in shortly so operator.
03:29:42.740 --> 03:29:44.630
Great, I'll come back.
03:29:44.630 --> 03:29:45.463
Thank you.
03:29:47.410 --> 03:29:49.440
And with that Commissioner
Guzman Aceves
03:29:49.440 --> 03:29:50.810
or Commissioner Shiroma do you
03:29:50.810 --> 03:29:52.473
have any additional questions?
03:29:53.354 --> 03:29:55.793
I didn't let you ask many.
03:30:00.010 --> 03:30:02.730
Hearing none immediately,
I'll ask one follow up question
03:30:02.730 --> 03:30:04.480
that occurred to me
during the panel discussion
03:30:04.480 --> 03:30:06.328
and then we can come
back to the Commissioners.
03:30:06.328 --> 03:30:10.000
And that was Joanne, you had pointed out
03:30:10.979 --> 03:30:12.300
that there were some
federal and state programs
03:30:12.300 --> 03:30:17.040
that did a particularly good
job of community engagement
03:30:17.040 --> 03:30:20.330
and, you know, not to put
you on the spot but can you
03:30:20.330 --> 03:30:23.750
to speak to any examples,
either in terms of the process,
03:30:23.750 --> 03:30:28.720
what worked or a actual program where
03:30:28.720 --> 03:30:32.820
that was particularly successful
and might be duplicable
03:30:32.820 --> 03:30:35.103
or be able to be
duplicated in California?
03:30:37.880 --> 03:30:40.190
Yeah, I'd be happy
to and I'll struggle
03:30:40.190 --> 03:30:42.060
to keep it brief because this is one
03:30:42.060 --> 03:30:45.210
of my areas of greatest
interest and passion
03:30:45.210 --> 03:30:47.910
but let me give you a couple
of really quick examples.
03:30:48.770 --> 03:30:51.150
I mentioned that I
thought Maryland presents
03:30:51.150 --> 03:30:55.200
a best practice, the state of Maryland
03:30:55.200 --> 03:31:00.200
has a pretty robust or they're
relatively new grant program
03:31:01.140 --> 03:31:05.020
for rural broadband expansion.
03:31:05.020 --> 03:31:08.780
The grants are
primarily going to benefit
03:31:08.780 --> 03:31:13.738
from entities who are building
and operate primarily fiber
03:31:13.738 --> 03:31:17.044
with them but the grants are not awarded
03:31:17.044 --> 03:31:21.660
to local government in our
case in Maryland counties
03:31:21.660 --> 03:31:25.610
that are the dominant
government unit particularly
03:31:25.610 --> 03:31:29.010
on the rural side.
03:31:29.010 --> 03:31:30.610
But unless that county government
03:31:30.610 --> 03:31:33.390
is a clear partner strongly in support
03:31:33.390 --> 03:31:35.475
and deeply integrated into the funding,
03:31:35.475 --> 03:31:38.480
private company will not get a grant
03:31:38.480 --> 03:31:41.430
and what this means
is that the companies
03:31:41.430 --> 03:31:44.640
that are most engaged
with the communities
03:31:44.640 --> 03:31:47.170
and are regarded by the communities
03:31:47.170 --> 03:31:49.790
as trusted partners and who
are responsive to the needs
03:31:49.790 --> 03:31:53.560
of the communities are
at a massive advantage
03:31:55.209 --> 03:31:56.042
in applying for the state grants.
03:31:56.042 --> 03:31:59.560
And companies located seven states away
03:31:59.560 --> 03:32:01.500
that has limited interest,
03:32:01.500 --> 03:32:03.400
even if they might have nearby at them
03:32:04.683 --> 03:32:07.750
are simply disadvantaged by that unless
03:32:07.750 --> 03:32:09.788
they make a whole lot more effort to get
03:32:09.788 --> 03:32:11.479
to know the local community.
03:32:11.479 --> 03:32:15.628
That example has
resulted in very successful
03:32:15.628 --> 03:32:17.963
because of this relatively
03:32:17.963 --> 03:32:20.744
non controversial federal example,
03:32:20.744 --> 03:32:23.411
recently with USDA grant program
03:32:26.701 --> 03:32:30.093
is required substantial
showings of support
03:32:30.093 --> 03:32:31.800
from public entities.
03:32:31.800 --> 03:32:33.650
It makes grants to public entities
03:32:33.650 --> 03:32:38.650
but they're much fewer than
the grants to private ISPs.
03:32:41.160 --> 03:32:45.724
But the grants to those
ISPs are the applications
03:32:45.724 --> 03:32:48.990
become competitive, if
there is a showing of support
03:32:48.990 --> 03:32:53.150
from the local community in
the form of broad based letters
03:32:53.150 --> 03:32:57.600
of support from businesses,
from elected officials,
03:32:57.600 --> 03:33:01.970
government and various
other elements of civil society.
03:33:01.970 --> 03:33:05.760
They see that as a sign of the viability
03:33:05.760 --> 03:33:08.602
and the stability of the applicant,
03:33:08.602 --> 03:33:11.970
the community support
is seen as speaking
03:33:11.970 --> 03:33:15.520
to the sustainability
and the likely success
03:33:15.520 --> 03:33:17.140
of the private entity and that's why
03:33:17.140 --> 03:33:21.510
it's a factor in making
decisions about grants
03:33:21.510 --> 03:33:26.041
and I think it takes a lot of
work to get those grants out.
03:33:26.041 --> 03:33:29.006
It's a lot of analysis and time,
03:33:29.006 --> 03:33:31.200
it's not as simple as an auction process
03:33:31.200 --> 03:33:35.480
but there are some
real rewards associated
03:33:35.480 --> 03:33:37.223
with that level of work.
03:33:39.120 --> 03:33:41.270
Thank you and I don't
wanna bar other panelists
03:33:41.270 --> 03:33:43.210
from responding but I believe
Commissioner Shiroma did you
03:33:43.210 --> 03:33:45.923
have a further question?
03:33:51.310 --> 03:33:55.073
Yes, when we navigated
the PG&E bankruptcy,
03:34:02.730 --> 03:34:05.880
we and the Governors
but we substantially focused
03:34:05.880 --> 03:34:08.760
on the makeup of the board of directors
03:34:08.760 --> 03:34:13.760
and the governing board
and looking for diversity
03:34:14.191 --> 03:34:16.358
and now that we have moved
03:34:18.081 --> 03:34:20.748
on from diversity of viewpoints.
03:34:26.390 --> 03:34:31.390
And also, we ended up
with a 20% of the California
03:34:50.370 --> 03:34:54.700
assessment in looking at
a new Frontier coming out
03:34:55.809 --> 03:34:59.253
of the top level of the policymakers.
03:35:06.523 --> 03:35:09.720
If you don't have a sense of
that, you know, that's okay.
03:35:09.720 --> 03:35:12.590
I mean, I think
Commissioner I would say that,
03:35:12.590 --> 03:35:15.920
to the extent, you can
ask our board members
03:35:15.920 --> 03:35:20.920
to be consistent in talking to
them the community approach
03:35:22.150 --> 03:35:25.800
to planning and applying for
some of these grant programs
03:35:25.800 --> 03:35:27.880
to meet the needs of
local communities, again,
03:35:27.880 --> 03:35:30.163
focused on improving, that
would be great, you know,
03:35:30.163 --> 03:35:33.410
my experience is
having a diverse and a lot
03:35:33.410 --> 03:35:35.763
of companies affiliated
with this company
03:35:36.632 --> 03:35:39.593
and it's good for the
citizens getting grumpy.
03:35:43.070 --> 03:35:46.070
And Blair so anything
to add and if not,
03:35:46.070 --> 03:35:48.160
I will go back to the phone line to see
03:35:48.160 --> 03:35:49.633
if we have callers now.
03:35:50.868 --> 03:35:52.760
I would just say, you know,
03:35:52.760 --> 03:35:56.320
there have been
various proposals by folks
03:35:56.320 --> 03:35:58.090
that have given kinds of representations
03:35:58.090 --> 03:35:59.940
on boards of directors.
03:35:59.940 --> 03:36:02.670
I don't wanna weigh in
on that but I would note
03:36:02.670 --> 03:36:05.543
that other countries do
make that requirements.
03:36:07.300 --> 03:36:10.750
In this particular case,
if there has to be public
03:36:10.750 --> 03:36:13.380
which you might think of
as a public member it would,
03:36:13.380 --> 03:36:16.000
of course, have to represent
a constituency far larger
03:36:16.000 --> 03:36:18.650
than California and
I think that's tricky.
03:36:18.650 --> 03:36:21.040
I think there's some
merit to thinking about
03:36:21.040 --> 03:36:24.933
it but how you get that
kind of public representative,
03:36:26.540 --> 03:36:28.100
when there are multiple states involved
03:36:28.100 --> 03:36:31.150
and multiple communities
I think is tricky.
03:36:31.150 --> 03:36:34.580
But that's why I go
to, I think that the state
03:36:34.580 --> 03:36:37.570
is entitled to certain
kinds of information
03:36:37.570 --> 03:36:39.980
on a more timely basis
than one might have thought
03:36:39.980 --> 03:36:40.813
of in the past.
03:36:44.940 --> 03:36:45.773
Thanks panelist.
03:36:45.773 --> 03:36:47.440
And Llela can we check to see
03:36:47.440 --> 03:36:51.513
if are there any questions
on the phone line?
03:36:53.210 --> 03:36:56.477
I'm sorry, no questions on
the phone lines at this time.
03:36:56.477 --> 03:36:58.130
Okay, thanks operator.
03:36:58.130 --> 03:36:59.542
So with that Commissioner Guzman Aceves
03:36:59.542 --> 03:37:00.943
any follow up questions?
03:37:03.640 --> 03:37:04.597
Sure, thank you.
03:37:06.490 --> 03:37:10.810
And, again, I think there's
a couple of thoughts here
03:37:10.810 --> 03:37:13.380
that are merging together,
one with your point Blair
03:37:13.380 --> 03:37:17.270
on the information, more
timely information we heard
03:37:17.270 --> 03:37:20.100
in our earlier panel,
everything from requests
03:37:20.100 --> 03:37:24.900
of where potential fiber
is in their community
03:37:24.900 --> 03:37:28.490
that could be, you know,
potentially accessed
03:37:28.490 --> 03:37:31.350
and then Joanne you
mentioned an obligation
03:37:31.350 --> 03:37:35.590
to have open access to
that, to have information
03:37:35.590 --> 03:37:37.263
on the points of presence.
03:37:38.860 --> 03:37:41.980
Just thinking about
what could that look like?
03:37:41.980 --> 03:37:46.980
Could there be, you know,
some sort of quarterly update
03:37:47.550 --> 03:37:51.740
for communities that are
still looking to get broadband,
03:37:51.740 --> 03:37:56.380
to have access to how they
can best partner with Frontier
03:37:56.380 --> 03:37:59.930
and this is kind of a very
tangible idea that you guys
03:37:59.930 --> 03:38:03.350
have presented in terms
of having that access,
03:38:03.350 --> 03:38:06.703
other examples like that?
03:38:08.820 --> 03:38:11.697
The infrastructure or even, you know,
03:38:12.930 --> 03:38:14.570
there's a lot of you
guys have said that's kind
03:38:14.570 --> 03:38:18.690
of out of our hands, certainly
any other federal funding
03:38:18.690 --> 03:38:22.810
but also, there's a lot of
great ideas for us to consider
03:38:22.810 --> 03:38:26.060
in other proceeding, Lifeline
or our broadband program
03:38:26.060 --> 03:38:27.650
or public purpose programs.
03:38:27.650 --> 03:38:32.040
But just in relation
to kind of actualizing,
03:38:32.040 --> 03:38:35.330
putting the pieces
together with this, you know,
03:38:35.330 --> 03:38:38.300
this application before us is that,
03:38:39.690 --> 03:38:41.670
and by the way we've
done a similar thing
03:38:41.670 --> 03:38:44.640
as Commissioner Shiroma
mentioned on the electricity side
03:38:44.640 --> 03:38:48.979
where we have a new
portal for local government
03:38:48.979 --> 03:38:52.630
to be able to access where, you know,
03:38:52.630 --> 03:38:55.393
this key distribution infrastructure is,
03:38:56.760 --> 03:38:58.370
key points of communication.
03:38:58.370 --> 03:39:01.600
There's a now a local
government interface
03:39:01.600 --> 03:39:06.600
that includes a live portal where people
03:39:06.640 --> 03:39:11.130
can update everything where
substations being upgraded,
03:39:11.130 --> 03:39:13.560
whether it's putting up
back up generations.
03:39:13.560 --> 03:39:18.180
So that's very fairly new
on the electricity side,
03:39:18.180 --> 03:39:21.670
is there something
similar like that where you
03:39:21.670 --> 03:39:25.193
could just imagine the level
of collaboration that could be,
03:39:26.621 --> 03:39:29.970
you know, the level of progress
that could be made simply
03:39:29.970 --> 03:39:34.610
by a deeper access as you
say, generally to the data
03:39:34.610 --> 03:39:37.324
so what could it look like?
03:39:37.324 --> 03:39:40.010
Could it look like that, you
know, local government portal
03:39:40.010 --> 03:39:43.270
as we've done on the
electricity side or, you know,
03:39:43.270 --> 03:39:46.920
is it this planning process
that they're obviously gonna go
03:39:46.920 --> 03:39:49.723
through to define their Invesco areas?
03:39:50.810 --> 03:39:51.860
Any thoughts on that.
03:39:57.690 --> 03:40:00.180
I defer to the panelists
if anyone wants to take
03:40:00.180 --> 03:40:03.500
that first, maybe Joanne
and then Blair if you wanted
03:40:03.500 --> 03:40:05.600
to amplify or clarify any
03:40:05.600 --> 03:40:07.933
of your earlier
comments about reporting.
03:40:10.330 --> 03:40:13.720
I guess I would say
that more information
03:40:13.720 --> 03:40:18.720
is always a plus and there's
so much hunger and concern
03:40:20.970 --> 03:40:24.690
and even desperation
at the local level of office
03:40:24.690 --> 03:40:28.130
and communities are
going to great lengths
03:40:28.130 --> 03:40:30.530
and in many cases,
spending a lot of money
03:40:30.530 --> 03:40:32.050
to develop information
03:40:32.050 --> 03:40:35.330
that is at the fingertips of companies.
03:40:35.330 --> 03:40:38.380
And it's just to know,
where do we really stand
03:40:38.380 --> 03:40:42.113
and what are our options and
what prospects do we have.
03:40:43.230 --> 03:40:45.970
And then many of
them find, and this is true
03:40:45.970 --> 03:40:48.690
in very rural areas throughout
the country, they find Well,
03:40:48.690 --> 03:40:50.780
the prospects are actually very slim
03:40:50.780 --> 03:40:53.370
and they don't have a lot
of tools at their disposal.
03:40:53.370 --> 03:40:58.370
Although I am optimistic that
more expansive federal funding
03:40:59.050 --> 03:41:00.620
will help to change that,
03:41:00.620 --> 03:41:04.073
as well public-Private
collaboration, merging with that.
03:41:05.120 --> 03:41:08.000
New information is always
good, more information is good,
03:41:08.000 --> 03:41:12.490
availability of information
is good and as I said much
03:41:12.490 --> 03:41:16.140
of this information is at the
fingertips of many companies.
03:41:16.140 --> 03:41:18.800
Companies know exactly
where they can provide services
03:41:18.800 --> 03:41:21.710
because they take orders
all the time and their websites
03:41:21.710 --> 03:41:24.600
can tell us immediately
when we plug in an address
03:41:24.600 --> 03:41:27.010
whether they can serve us or not.
03:41:27.010 --> 03:41:27.990
There's some exceptions
03:41:27.990 --> 03:41:29.840
to that but they're
relatively infrequent,
03:41:29.840 --> 03:41:32.440
certainly when it comes
to fixed wire line networks.
03:41:34.830 --> 03:41:36.800
But at the same time, I
wanna be really honest
03:41:36.800 --> 03:41:40.720
that information is good, it's helpful,
03:41:40.720 --> 03:41:45.310
it supports a planning
process but it's not really a flip
03:41:45.310 --> 03:41:48.590
that we can switch a word or a lever
03:41:48.590 --> 03:41:52.580
for unlocking new opportunity.
03:41:52.580 --> 03:41:56.627
That takes capital access to, you know,
03:41:59.237 --> 03:42:03.770
access all of that and
in the communities
03:42:03.770 --> 03:42:06.500
having more information
doesn't necessarily put them
03:42:06.500 --> 03:42:10.820
in a position to be able to
enable or support Frontier
03:42:10.820 --> 03:42:12.930
any more than they're already doing.
03:42:12.930 --> 03:42:17.000
I think just based on my
experience in other parts
03:42:17.000 --> 03:42:19.540
of the country, it's probably
safe to say that many
03:42:19.540 --> 03:42:21.250
of these communities have been meeting
03:42:21.250 --> 03:42:23.760
with every single company they can find,
03:42:23.760 --> 03:42:26.910
including the incumbent and
saying, what can we do to help,
03:42:26.910 --> 03:42:28.360
will you upgrade?
03:42:28.360 --> 03:42:31.040
We're desperate, this is so important,
03:42:31.040 --> 03:42:32.170
what's our role?
03:42:32.170 --> 03:42:33.433
How do we help you?
03:42:33.433 --> 03:42:37.470
It's not like they haven't
tried that so I would say all
03:42:37.470 --> 03:42:39.810
of those things are
designed to be really useful,
03:42:39.810 --> 03:42:43.370
they move us in the right
direction but the the movement
03:42:43.370 --> 03:42:45.850
is relatively modest
relative to the distance we
03:42:45.850 --> 03:42:46.743
have to travel.
03:42:50.470 --> 03:42:51.770
Thanks Joanne and Blair?
03:42:52.797 --> 03:42:56.130
I basically just I
agree with Joanne
03:42:57.760 --> 03:43:02.540
and don't have anything to
add other than the follow up
03:43:02.540 --> 03:43:04.550
on her point about
future federal funding,
03:43:04.550 --> 03:43:07.070
I would just note that
the House Democrats
03:43:07.070 --> 03:43:11.930
have already passed 100
billion dollar broadband package
03:43:11.930 --> 03:43:14.220
as part of a broader
infrastructure package
03:43:14.220 --> 03:43:18.780
and even Republicans like
Jeb Bush the other day came out
03:43:18.780 --> 03:43:21.890
in favor of $100 billion
broadband package.
03:43:21.890 --> 03:43:23.997
So I think there is
the possibility of that,
03:43:23.997 --> 03:43:26.660
that's not necessarily
related to the bankruptcy
03:43:26.660 --> 03:43:30.110
but I do think that it's
good for the California PUC
03:43:30.110 --> 03:43:34.230
to be thinking about,
how could a package like
03:43:34.230 --> 03:43:37.073
that help address the
state's broadband needs?
03:43:38.889 --> 03:43:41.100
And a quick follow up
just while we're on this topic,
03:43:41.100 --> 03:43:43.580
I understood your earlier
comments about reporting,
03:43:43.580 --> 03:43:46.130
partly to be about
reporting financial and sort
03:43:46.130 --> 03:43:47.830
of business operations information
03:43:50.325 --> 03:43:52.020
and I understood
using the same potential
03:43:52.020 --> 03:43:55.080
even more frequently
than quarterly to sort
03:43:55.080 --> 03:43:57.993
of see if there's smoke at some point.
03:43:59.000 --> 03:44:02.450
Right, well it's really what
the company is planning
03:44:02.450 --> 03:44:04.440
on doing a variety of things.
03:44:04.440 --> 03:44:07.340
Companies are constantly
reevaluating their plans
03:44:09.590 --> 03:44:12.133
to the extent that they are
not getting the benchmarks
03:44:12.133 --> 03:44:14.610
that will enable them to
meet the commitments based
03:44:14.610 --> 03:44:19.370
and in terms of the California
PUC coming out of bankruptcy,
03:44:19.370 --> 03:44:22.390
the earlier you know,
the better the options
03:44:22.390 --> 03:44:23.863
are for dealing with it.
03:44:25.385 --> 03:44:27.890
If you don't find out until the
day that you were supposed
03:44:27.890 --> 03:44:30.310
to have the network
built, that the network
03:44:30.310 --> 03:44:32.800
is at least two years
delayed, obviously,
03:44:32.800 --> 03:44:34.390
your options are worse.
03:44:34.390 --> 03:44:37.150
So getting earlier information
03:44:37.150 --> 03:44:39.967
is part of the key to that I think.
03:44:41.360 --> 03:44:42.508
Right, thanks.
03:44:42.508 --> 03:44:44.290
And Commissioner Shiroma.
03:44:44.290 --> 03:44:46.970
Yes, I just wanted
to thank everyone,
03:44:46.970 --> 03:44:50.950
I need to exit to go to
another meeting but thank you
03:44:50.950 --> 03:44:55.440
to all of panelists for an
interesting conversation.
03:44:55.440 --> 03:44:56.940
Thank you Commissioner Guzman Aceves
03:44:56.940 --> 03:45:01.390
for hosting this workshop
and all best wishes
03:45:01.390 --> 03:45:06.313
for the patient part of
this evening and hopefully,
03:45:07.528 --> 03:45:10.180
you know, a good number of folks to call
03:45:10.180 --> 03:45:14.930
in to take advantage of
providing a public comment.
03:45:14.930 --> 03:45:16.470
So thank you very much.
03:45:16.470 --> 03:45:17.303
Thank you.
03:45:17.303 --> 03:45:18.570
Thank you Commissioner Shiroma.
03:45:18.570 --> 03:45:22.910
And with that, Llela could
you go to the email question?
03:45:22.910 --> 03:45:26.793
And and operator, we could
check the phone queue after that.
03:45:27.730 --> 03:45:30.060
Absolutely, thank you Michael.
03:45:30.060 --> 03:45:34.533
So we have a common
question from Scott Farmer
03:45:35.680 --> 03:45:37.417
from Sonoma Coast MAC.
03:45:38.980 --> 03:45:42.290
There is every indication
from what is said
03:45:42.290 --> 03:45:45.840
that Frontier will not
serve rural areas differently,
03:45:45.840 --> 03:45:48.440
not well, what will change?
03:45:48.440 --> 03:45:49.743
That is the question.
03:45:57.810 --> 03:45:58.790
Wasn't that to the panelists?
03:45:58.790 --> 03:46:00.830
Do you have the, you know,
03:46:00.830 --> 03:46:03.330
in paraphrasing and
interpreting a little bit
03:46:03.330 --> 03:46:07.260
with the question,
what might be conditions
03:46:07.260 --> 03:46:11.610
and we've talked about
some but to ensure that service
03:46:11.610 --> 03:46:13.410
is upgraded and it's not the same
03:46:13.410 --> 03:46:18.410
as it was from the
Verizon the Frontier transfer
03:46:18.920 --> 03:46:22.563
or today from Frontier
pre and post bankruptcy.
03:46:27.530 --> 03:46:30.019
I would just reiterate what
I think we've said a couple
03:46:30.019 --> 03:46:33.500
of times is that a commitment to work
03:46:33.500 --> 03:46:35.841
with the community
develop a plan to bring broad
03:46:35.841 --> 03:46:37.825
to the spots in the community
03:46:37.825 --> 03:46:40.430
that don't have it and
a comprehensive plan
03:46:40.430 --> 03:46:42.756
that tells you how
the community is going
03:46:42.756 --> 03:46:44.200
to have to do that in
partnership with Frontier
03:46:44.200 --> 03:46:47.330
or ImproveCo would
be essential and I think
03:46:47.330 --> 03:46:49.010
that could make a big difference.
03:46:51.559 --> 03:46:56.559
And I would just add
that absent obligations,
03:46:56.970 --> 03:46:59.270
there's no reason to think
anything would change
03:46:59.270 --> 03:47:01.970
and that's not because I am privy
03:47:01.970 --> 03:47:05.790
to any internal discussions
or strategy of Frontier
03:47:05.790 --> 03:47:10.790
but the economics of
broadband in rural areas are going
03:47:10.940 --> 03:47:13.880
to be the same after this proceeding
03:47:13.880 --> 03:47:18.410
as they were before this
proceeding and any company
03:47:18.410 --> 03:47:21.000
has only a limited
number of dollars to invest,
03:47:21.000 --> 03:47:24.410
even when that's a lot
of dollars it's still finite
03:47:24.410 --> 03:47:26.690
and it's going to go to
the places where the return
03:47:26.690 --> 03:47:29.847
is highest and certain in rural areas
03:47:29.847 --> 03:47:33.010
and particularly certain
low-income rural areas
03:47:33.010 --> 03:47:36.010
are not going to be
where return is highest
03:47:36.010 --> 03:47:39.120
so those dollars will not go
there and that doesn't change
03:47:39.120 --> 03:47:42.783
unless there's some kind of
a legal obligation to go there.
03:47:46.030 --> 03:47:48.820
That's just the basic laws of economics
03:47:48.820 --> 03:47:53.700
and how infrastructure
deployment that is financed
03:47:57.220 --> 03:47:59.650
through private capital works.
03:47:59.650 --> 03:48:02.670
Again, totally rational,
not a slam at any company,
03:48:02.670 --> 03:48:05.930
this is how our system is
set up but I don't think we
03:48:05.930 --> 03:48:08.983
should assume that
the problem solves itself.
03:48:14.161 --> 03:48:17.911
I would just add, it
really depends on the.
03:48:21.457 --> 03:48:22.483
Can you hear me?
03:48:23.330 --> 03:48:24.530
Yeah, sorry, go ahead.
03:48:26.080 --> 03:48:28.080
It really just depends on
the enforcement mechanisms.
03:48:28.080 --> 03:48:32.410
I mean, it could be that if
there are agreements made and,
03:48:32.410 --> 03:48:37.410
you know, there should be
some enforcement mechanism.
03:48:37.700 --> 03:48:39.780
Fines are problematic in the sense
03:48:39.780 --> 03:48:42.600
because you're actually
taking money away
03:48:42.600 --> 03:48:46.630
from what you want which is
more cutbacks but you could,
03:48:46.630 --> 03:48:48.750
for example, say that, you know,
03:48:48.750 --> 03:48:50.880
dividend payments or
other kinds of payments
03:48:50.880 --> 03:48:53.430
to various financial
stakeholders couldn't be made
03:48:54.400 --> 03:48:56.300
until the build up is
complete or whatever.
03:48:56.300 --> 03:48:58.110
I mean those are complicated things
03:48:59.040 --> 03:49:03.900
but there has to be some
kind of priority and incentives
03:49:05.470 --> 03:49:07.770
to actually do what they
say they're gonna do.
03:49:09.770 --> 03:49:13.310
Thank you and I understand
operator there is a caller
03:49:13.310 --> 03:49:14.710
with a question on the line.
03:49:16.640 --> 03:49:19.290
I'm showing no callers
with questions at this time.
03:49:21.308 --> 03:49:23.270
All right, let me
just check with Llela.
03:49:23.270 --> 03:49:24.913
Am I mistaken there?
03:49:26.840 --> 03:49:31.480
Hi, yes, I will just go
ahead and read the question
03:49:31.480 --> 03:49:34.730
from Larry Ortega, it's pretty long
03:49:34.730 --> 03:49:36.920
so give me a second here.
03:49:36.920 --> 03:49:39.700
He was trying to call in
but here's his questions.
03:49:39.700 --> 03:49:44.000
Number one, what
mechanisms will the CPUC use
03:49:44.000 --> 03:49:48.080
to meet necessary enforcement
requisites post bankruptcy
03:49:48.080 --> 03:49:49.973
approval by CPUC?
03:49:50.820 --> 03:49:52.550
Question number two,
03:49:52.550 --> 03:49:56.660
was not over leveraging
at the time Frontier took
03:49:56.660 --> 03:50:00.710
over the Verizon asset at issue,
03:50:00.710 --> 03:50:04.940
why was this approved
if such high depth existed
03:50:04.940 --> 03:50:07.533
and continues to exist for Frontier?
03:50:09.020 --> 03:50:12.633
Three, cost is primary
concern for access.
03:50:13.630 --> 03:50:16.060
There are more people in the inner city
03:50:16.060 --> 03:50:20.040
without internet access
than in rural areas.
03:50:20.040 --> 03:50:22.440
There are 10s of thousands of children
03:50:22.440 --> 03:50:25.443
without high speed
internet in their home
03:50:25.443 --> 03:50:30.443
in the inner city to every
one student in rural areas.
03:50:31.350 --> 03:50:35.100
Wholly disagree with
Blair Levin on lifeline.
03:50:35.100 --> 03:50:37.450
The Lifeline is a product and program
03:50:37.450 --> 03:50:40.920
that requires necessary
training and promotion
03:50:40.920 --> 03:50:45.440
to let folks know they
qualify and how to apply.
03:50:45.440 --> 03:50:47.760
These are steps that I
needed to be transmitted
03:50:47.760 --> 03:50:51.681
to the communities to
which they are intended
03:50:51.681 --> 03:50:55.593
to serve and language
connection as necessary.
03:50:57.270 --> 03:51:00.600
Local municipalities
should be given right
03:51:00.600 --> 03:51:04.490
of first refusal to take
over the Frontier assets
03:51:04.490 --> 03:51:07.037
and ground currently within a region.
03:51:10.243 --> 03:51:13.960
Number five, the CPUC
should require Frontier
03:51:13.960 --> 03:51:18.570
to develop a map as to
where the fiber is in the ground,
03:51:18.570 --> 03:51:21.880
need a map of Frontier's current assets,
03:51:21.880 --> 03:51:25.233
fiber in the ground
by region, municipality.
03:51:26.510 --> 03:51:31.260
This is from Larry Ortega,
Community Union, Incorporated.
03:51:33.988 --> 03:51:35.980
Thanks Llela,
there was a lot there.
03:51:35.980 --> 03:51:38.450
Being cognizant of the
time, I'll paraphrase briefly
03:51:38.450 --> 03:51:41.188
and then go to the panelists
and I know we've talked
03:51:41.188 --> 03:51:44.023
about some of these
but I think, in particular,
03:51:45.040 --> 03:51:49.160
if we have further
thoughts about mechanisms
03:51:49.160 --> 03:51:51.170
from more or less enforcement,
03:51:51.170 --> 03:51:53.930
I know Blair talked about
it earlier and just touched
03:51:53.930 --> 03:51:58.563
on how fines can be
limited and particularly
03:51:59.430 --> 03:52:03.850
the question about over
leveraging and the high debt load
03:52:03.850 --> 03:52:08.850
and if other states or the
California might consider looking
03:52:10.260 --> 03:52:15.030
at that, looking at that
level of details as transaction
03:52:15.030 --> 03:52:16.870
or whether that's proved and problematic
03:52:16.870 --> 03:52:18.983
in other states or instances.
03:52:23.350 --> 03:52:26.500
So enforcement mechanisms
and whether to look
03:52:26.500 --> 03:52:31.500
at debt-to-equity ratios
and that detail of finances.
03:52:36.220 --> 03:52:38.770
So with that maybe Bill,
if I could start with you?
03:52:40.294 --> 03:52:42.100
I'm not sure I have
anything else to add
03:52:42.100 --> 03:52:43.623
from what we said already.
03:52:44.993 --> 03:52:45.826
I mean, it's hard to disagree
03:52:45.826 --> 03:52:50.478
with having the appropriate
debt load but the right can ...
03:52:50.478 --> 03:52:54.989
Well, with that let me go
to Blair Levin as the, maybe,
03:52:54.989 --> 03:52:58.697
the most experience
with these considerations.
03:52:58.697 --> 03:53:01.920
Yeah, the and
always the purpose
03:53:01.920 --> 03:53:05.920
of the bankruptcy
proceeding is for an expert's,
03:53:07.487 --> 03:53:10.587
a bankruptcy judge to determine what
03:53:10.587 --> 03:53:12.111
is an appropriate debt load.
03:53:12.111 --> 03:53:14.491
But you know, having said that,
03:53:14.491 --> 03:53:17.158
there are lots of uncertainties,
03:53:18.491 --> 03:53:21.417
you can have an appropriate
debt load in January of 2020
03:53:21.417 --> 03:53:26.210
and then discover that because
of changes in the economy
03:53:26.210 --> 03:53:28.473
in April that you were way over levered.
03:53:30.320 --> 03:53:33.590
Although there are
certainly a lot of situations
03:53:33.590 --> 03:53:34.800
where people are under levered.
03:53:34.800 --> 03:53:36.430
So I think that's a difficult thing,
03:53:36.430 --> 03:53:38.513
I'm not sure the California PUC has,
03:53:39.480 --> 03:53:43.960
that's where it's kind of
real skill set and expertise
03:53:43.960 --> 03:53:46.810
would be but it's
obviously a critical question
03:53:46.810 --> 03:53:49.430
for the bankruptcy
court but it's also true
03:53:49.430 --> 03:53:54.430
that the new financial
stakeholders are unlikely
03:53:54.760 --> 03:53:58.120
to invest in any kind of, you know,
03:53:58.120 --> 03:54:00.980
financial instrument unless
they think that the ratio
03:54:00.980 --> 03:54:02.810
is approximately right.
03:54:02.810 --> 03:54:06.030
Of course, they're looking
for return not the creation
03:54:06.030 --> 03:54:08.510
of public positive benefits.
03:54:08.510 --> 03:54:11.700
And then finally, to the sense
that the person disagrees
03:54:11.700 --> 03:54:13.650
with me, I'm not sure that
I understood the nature
03:54:13.650 --> 03:54:15.390
of the disagreement.
03:54:15.390 --> 03:54:18.920
I certainly agree that Lifeline
is an important program
03:54:18.920 --> 03:54:22.860
and I think it needs to be
reformed in a variety of ways.
03:54:22.860 --> 03:54:25.280
I was just making the
observation which I think
03:54:25.280 --> 03:54:28.460
the person agrees with,
which is that we want everyone
03:54:28.460 --> 03:54:32.640
to have access to voice
but we also want everyone
03:54:32.640 --> 03:54:34.550
to have access to in home broadband,
03:54:34.550 --> 03:54:37.313
particularly for as
the person mentioned,
03:54:38.520 --> 03:54:42.790
such things as being able to
learn and do one's homework
03:54:44.580 --> 03:54:46.660
and my only point
was Lifeline as it exists
03:54:46.660 --> 03:54:49.730
at the federal level and in
most places at the state level,
03:54:49.730 --> 03:54:52.380
is not designed to do
both, it's designed to do one
03:54:52.380 --> 03:54:55.743
or the other, and mostly
is designed to do voice.
03:54:58.539 --> 03:55:00.997
So thanks for that.
03:55:00.997 --> 03:55:02.980
I will thank the panelists and
welcome any closing thoughts
03:55:02.980 --> 03:55:06.020
if you have them but want
to be cognizant of the time
03:55:06.020 --> 03:55:08.030
and give everyone a
chance to take a moment
03:55:08.030 --> 03:55:10.210
before the next discussion.
03:55:10.210 --> 03:55:12.310
So thanks to you all,
thanks Commissioners
03:55:12.310 --> 03:55:14.570
for the participation but Joanne
03:55:14.570 --> 03:55:17.533
or Bill do you have
any closing thoughts?
03:55:21.220 --> 03:55:23.319
Yeah, thank you.
03:55:23.319 --> 03:55:25.640
Thank you for the opportunity
to help out, thank you.
03:55:25.640 --> 03:55:26.473
Thanks very much.
03:55:26.473 --> 03:55:30.013
With that, Llela
the mic is yours.
03:55:31.580 --> 03:55:32.530
Thank you.
03:55:32.530 --> 03:55:36.093
Okay, my recorded
voice is not good but we
03:55:36.093 --> 03:55:40.426
will be taking a break and
we will continue at 3:20,
03:55:41.726 --> 03:55:43.726
we will see you shortly.
03:55:46.367 --> 03:55:49.517
Thanks Michael.
03:55:49.517 --> 03:55:50.517
Thank you.
03:55:51.593 --> 03:55:53.760
Thank you very
much Michael and good
03:55:53.760 --> 03:55:56.170
to see you all bye bye.
03:55:56.170 --> 03:55:57.003
Likewise.
03:55:57.003 --> 03:55:59.373
Good to see you Blair
and see you Joanne.
03:56:25.410 --> 03:56:26.643
Testing one, two.
03:56:31.840 --> 03:56:33.473
They are robotic.
03:56:34.520 --> 03:56:35.380
Testing one, two.
03:56:35.380 --> 03:56:36.593
Check, check.
03:56:38.310 --> 03:56:39.400
That sounds good.
04:00:35.340 --> 04:00:39.220
We definitely had a good
conversation and we are now going
04:00:39.220 --> 04:00:43.850
to move to hear input
from the following parties.
04:00:43.850 --> 04:00:47.280
We are going to hear from
the The Utility Reform Network
04:00:47.280 --> 04:00:50.950
through Christine Mailloux
and we will then hear
04:00:50.950 --> 04:00:55.200
from the Public Advocates
Office through Christina Donnelly
04:00:55.200 --> 04:00:57.788
and then we will have
Communications Workers
04:00:57.788 --> 04:01:00.760
of America Rachael Koss.
04:01:00.760 --> 04:01:02.860
Christine, would you
like to start please?
04:01:04.000 --> 04:01:05.040
Yes, thank you.
04:01:05.040 --> 04:01:08.110
Good afternoon, my
name is Christine Mailloux
04:01:08.110 --> 04:01:11.160
a Telecommunications Staff
Attorney and Managing Director
04:01:11.160 --> 04:01:15.270
of the San Diego office of
the Utility Reform Network.
04:01:15.270 --> 04:01:17.870
We're a statewide consumer
advocacy organization
04:01:17.870 --> 04:01:19.480
representing ratepayers before
04:01:19.480 --> 04:01:21.800
the Public Utilities
Commission on electric gas
04:01:21.800 --> 04:01:24.040
and telecommunications proceedings.
04:01:24.040 --> 04:01:26.000
Thank you for the
opportunity to speak today
04:01:26.000 --> 04:01:27.750
and thank you to
Commission staff for putting
04:01:27.750 --> 04:01:28.970
the workshop together,
04:01:28.970 --> 04:01:31.250
I have just a few remarks
regarding TURNs approach
04:01:31.250 --> 04:01:33.180
and goals in this docket
and then I'll turn it over
04:01:33.180 --> 04:01:36.020
to the other intervenors to do the same.
04:01:36.020 --> 04:01:38.740
The importance of this
docket cannot be overstated
04:01:38.740 --> 04:01:42.320
and to meet the
Commission statutory duty,
04:01:42.320 --> 04:01:45.140
the review of this
application cannot be an area
04:01:45.140 --> 04:01:48.220
of focus as suggested
by Frontier this morning.
04:01:48.220 --> 04:01:50.790
The docket is not but
it's important to note
04:01:50.790 --> 04:01:53.660
that the docket is not about
blocking Frontiers emergence
04:01:53.660 --> 04:01:55.937
from bankruptcy, they
are already in bankruptcy
04:01:55.937 --> 04:01:58.980
and it's nobody's best
interest that they do not emerge
04:01:58.980 --> 04:01:59.893
from bankruptcy.
04:02:00.780 --> 04:02:03.600
But we must make sure
that the decision being made
04:02:03.600 --> 04:02:07.460
at that level to emerge
from bankruptcy don't
04:02:07.460 --> 04:02:09.430
just support shareholders and creditors
04:02:09.430 --> 04:02:12.050
but support consumers
and local stakeholders
04:02:12.050 --> 04:02:14.210
as we've heard from today.
04:02:14.210 --> 04:02:17.260
Today, the Frontier
customers that we heard
04:02:17.260 --> 04:02:20.330
from were directly impacted
by the company's day
04:02:20.330 --> 04:02:23.310
to day business decisions
that are generally implemented
04:02:23.310 --> 04:02:25.800
by those people on the
ground, the technicians
04:02:25.800 --> 04:02:27.653
in their trucks, the
customer service agents,
04:02:27.653 --> 04:02:31.000
those directly reaching
out to these customers
04:02:31.000 --> 04:02:32.230
but as we heard today,
04:02:32.230 --> 04:02:35.040
those local reps do not
appear to be empowered
04:02:35.040 --> 04:02:38.050
to make important
decisions interestingly
04:02:38.050 --> 04:02:41.320
despite Frontier promises
to bolster and embolden
04:02:41.320 --> 04:02:45.240
and enlarge the local
presence of those reps during
04:02:45.240 --> 04:02:46.823
the Frontier Verizon sale.
04:02:47.930 --> 04:02:50.520
We have to remember that
the decisions that those folks
04:02:50.520 --> 04:02:52.550
are implementing are actually made
04:02:52.550 --> 04:02:56.170
by company representatives
at all levels of the company
04:02:56.170 --> 04:02:58.450
and in this docket that distinction
04:02:58.450 --> 04:03:00.760
is very important
because Frontier is asking
04:03:00.760 --> 04:03:03.850
the Commission to find
whether the restructuring
04:03:03.850 --> 04:03:05.830
at the highest levels of the company
04:03:05.830 --> 04:03:09.630
is in the public interest on
the ground here in California.
04:03:09.630 --> 04:03:12.660
So while the billion dollar
shuffling might be happening
04:03:12.660 --> 04:03:15.910
at the top in a manner
that will ensure the company
04:03:15.910 --> 04:03:18.660
can emerge from bankruptcy,
we have no doubt about
04:03:18.660 --> 04:03:21.570
that and ensure that their
shareholders and creditors
04:03:21.570 --> 04:03:24.430
are properly compensated,
we cannot lose sight
04:03:24.430 --> 04:03:26.630
of how those decisions
will impact folks here
04:03:26.630 --> 04:03:29.233
on the ground like the
people we heard from today.
04:03:30.630 --> 04:03:32.710
TURN has focused
its efforts in this docket
04:03:32.710 --> 04:03:35.300
on understanding the
bankruptcy court process
04:03:35.300 --> 04:03:38.600
and understanding the negotiations
and promises being made
04:03:38.600 --> 04:03:40.490
between the company and its creditors
04:03:40.490 --> 04:03:43.680
and the shareholders well
beyond just making sure
04:03:43.680 --> 04:03:46.590
that there's a confirmation
plan, as we're learning
04:03:46.590 --> 04:03:49.020
a lot more is going to be happening now
04:03:49.020 --> 04:03:51.320
after the confirmation
plan has been approved.
04:03:52.660 --> 04:03:56.270
And that includes deciding
on investment priorities,
04:03:56.270 --> 04:03:58.570
deciding on dividend policies,
04:03:58.570 --> 04:04:00.360
understanding who these new owners
04:04:00.360 --> 04:04:03.410
are and what their motivations
will be and understanding
04:04:03.410 --> 04:04:07.330
how the the new Frontier,
the restructured Frontier plans
04:04:07.330 --> 04:04:09.490
to use public subsidy money.
04:04:09.490 --> 04:04:12.010
We're making sure that we
understand how those decisions
04:04:12.010 --> 04:04:14.190
might impact California
customers including
04:04:14.190 --> 04:04:15.813
the most vulnerable customers.
04:04:18.480 --> 04:04:20.790
The bankruptcy court process itself
04:04:20.790 --> 04:04:23.021
is not really looking
out for the benefits
04:04:23.021 --> 04:04:25.730
of on the ground California consumers.
04:04:25.730 --> 04:04:29.080
As we just heard actually at
the end of the last discussion,
04:04:29.080 --> 04:04:31.000
the bankruptcy court
process is making sure
04:04:31.000 --> 04:04:32.700
that the creditor's gonna be taken care
04:04:32.700 --> 04:04:34.760
of and that the parent
company of Frontier
04:04:34.760 --> 04:04:36.830
is financially viable going forward,
04:04:36.830 --> 04:04:38.810
at least for a certain amount of time
04:04:38.810 --> 04:04:40.780
But that's not enough
for this Commission
04:04:40.780 --> 04:04:44.900
to make its decision and
satisfy its statutory burden.
04:04:44.900 --> 04:04:47.690
There's too much uncertainty
at the bankruptcy court level
04:04:47.690 --> 04:04:50.210
to rest assured that these
new investment bankers who
04:04:50.210 --> 04:04:52.640
are now going to be
the owners of Frontier
04:04:52.640 --> 04:04:54.770
will have consumers interests at heart
04:04:54.770 --> 04:04:58.940
and provide strong low income
programs, robust broadband,
04:04:58.940 --> 04:05:01.100
even in the most rural
parts of the territory,
04:05:01.100 --> 04:05:04.650
affordable voice and broadband services
04:05:04.650 --> 04:05:08.280
and provide assurances
that California ratepayers
04:05:08.280 --> 04:05:10.150
through price increases
don't end up paying
04:05:10.150 --> 04:05:12.330
for Frontier's debt,
all of the conversation
04:05:12.330 --> 04:05:14.142
that we have this
morning, we can't trust
04:05:14.142 --> 04:05:17.403
the bankruptcy court to
make those decisions for us.
04:05:20.482 --> 04:05:21.540
It's important to note that
TURN also never accepts
04:05:21.540 --> 04:05:23.890
the trickle down theory,
the trickle down theory
04:05:23.890 --> 04:05:26.330
that suggests what's good
for the parent company
04:05:26.330 --> 04:05:28.520
will always be good for
the operating companies
04:05:28.520 --> 04:05:31.540
and they are always good
for those on the ground.
04:05:31.540 --> 04:05:34.380
The territory here in
California is too diverse,
04:05:34.380 --> 04:05:36.710
the needs of the
customers are too varied
04:05:36.710 --> 04:05:39.190
and service quality and
broadband build out issue
04:05:39.190 --> 04:05:44.190
is too intense right now
to suggest that just looking
04:05:44.270 --> 04:05:45.940
at what's happening
in the bankruptcy court
04:05:45.940 --> 04:05:48.040
is sufficient and that
the decisions made
04:05:48.040 --> 04:05:50.880
there should just be
in the public interest
04:05:50.880 --> 04:05:51.830
here in California.
04:05:52.700 --> 04:05:56.370
Therefore, for our testimony
in this case for TURN,
04:05:56.370 --> 04:05:58.690
we've proposed several
conditions that we believe
04:05:58.690 --> 04:06:01.690
the Commission must adopt
to ensure that the transaction
04:06:01.690 --> 04:06:03.870
is in the public interest
along with some
04:06:03.870 --> 04:06:06.620
of the other intervener conditions.
04:06:06.620 --> 04:06:09.190
Our conditions mostly address the fact
04:06:09.190 --> 04:06:12.170
that the Frontier
application and this docket,
04:06:12.170 --> 04:06:14.330
its testimony, and what's happening
04:06:14.330 --> 04:06:15.830
at the bankruptcy court level
04:06:15.830 --> 04:06:18.750
does not provide enough
information to this Commission
04:06:18.750 --> 04:06:21.850
to really determine what's in
the public interest and again,
04:06:21.850 --> 04:06:25.180
I didn't change my remarks
from to accommodate what we
04:06:25.180 --> 04:06:27.270
just talked about a minute ago,
04:06:27.270 --> 04:06:29.850
indeed we need more information
04:06:29.850 --> 04:06:32.120
and we need more real
time information about
04:06:32.120 --> 04:06:35.140
the investment decisions
that are being made today
04:06:35.140 --> 04:06:38.140
and will be made over the
next three or four months
04:06:38.140 --> 04:06:41.990
and ongoing even after
this docket is closed.
04:06:41.990 --> 04:06:44.520
And so a lot of our
conditions focus on that,
04:06:44.520 --> 04:06:48.170
to make sure that we all
have the information we need
04:06:48.170 --> 04:06:52.840
to monitor and influence and
perhaps require obligations
04:06:52.840 --> 04:06:55.987
of Frontier to make those
decisions in our best interest.
04:06:55.987 --> 04:06:58.310
I will also say TURN strongly supports
04:06:58.310 --> 04:07:00.040
what's been talked about today
04:07:00.040 --> 04:07:03.683
which is involving local
communities, local organizations,
04:07:04.580 --> 04:07:06.760
stakeholders in some
of these investment,
04:07:06.760 --> 04:07:10.490
Invesco and ImproveCo
kinds of decisions that TURN
04:07:10.490 --> 04:07:13.943
and our expert witnesses
are looking at very closely.
04:07:13.943 --> 04:07:18.340
With that, you will hear
from other intervenors now
04:07:18.340 --> 04:07:20.750
at this point that have
punched a lot of data,
04:07:20.750 --> 04:07:22.970
have reviewed the record
as well to recommend
04:07:22.970 --> 04:07:26.520
other concrete proposals
that we believe are necessary
04:07:26.520 --> 04:07:29.390
as well to make sure
that this transaction
04:07:29.390 --> 04:07:31.860
is in the public interest
for California consumers
04:07:31.860 --> 04:07:34.490
so I will now give it over
to Christina Donnelly who
04:07:34.490 --> 04:07:36.100
is an expert witness in the circuit
04:07:36.100 --> 04:07:40.327
and Senior Policy Analyst
for the Public Advocate's Office
04:07:40.327 --> 04:07:43.533
and the Communications and
Water Policy Branch, Christina.
04:07:47.490 --> 04:07:48.323
Thank you, Christine.
04:07:48.323 --> 04:07:49.370
Can everybody hear me?
04:07:51.670 --> 04:07:53.302
Yes, we can.
04:07:53.302 --> 04:07:54.135
Great.
04:07:55.457 --> 04:07:57.535
Thank you for having me today,
04:07:57.535 --> 04:08:00.790
as Christine Mailloux said
my name is Christina Donnelly
04:08:00.790 --> 04:08:03.870
and I'm an analyst with
the Public Advocate's Office.
04:08:03.870 --> 04:08:06.790
The other members of
my team that are working
04:08:06.790 --> 04:08:09.037
on this proceeding are
in attendance as well
04:08:09.037 --> 04:08:13.373
and that includes Cameron
Reed, Vichy and Tony Kelly.
04:08:14.274 --> 04:08:15.707
So the Public Advocate's Office,
04:08:15.707 --> 04:08:17.720
for anybody who's not aware,
04:08:17.720 --> 04:08:20.980
we're an independent
group within the CPUC
04:08:20.980 --> 04:08:24.470
and our statutory mandate
is to represent an advocate
04:08:24.470 --> 04:08:28.080
on behalf of residential and
small business customers
04:08:28.080 --> 04:08:29.970
in California to ensure safe,
04:08:29.970 --> 04:08:31.803
reliable and affordable service.
04:08:33.580 --> 04:08:36.010
Our team has reviewed
Frontiers application
04:08:36.010 --> 04:08:38.870
and we submitted our
recommendation to the Commission
04:08:38.870 --> 04:08:41.620
in the form of testimony
on September 30th.
04:08:41.620 --> 04:08:44.450
Our detailed review
includes an examination
04:08:44.450 --> 04:08:48.320
of the impacts on Frontiers
investments and infrastructure,
04:08:48.320 --> 04:08:50.190
service quality and reliability,
04:08:50.190 --> 04:08:52.070
declining customer satisfaction
04:08:52.070 --> 04:08:54.790
and broadband deployment
commitments particularly
04:08:54.790 --> 04:08:56.433
in tribal and rural communities.
04:08:57.440 --> 04:08:59.193
In its application Frontier promises
04:08:59.193 --> 04:09:01.670
that the Commission's approval
for corporate restructuring
04:09:01.670 --> 04:09:05.020
will produce significant
benefits for California customers.
04:09:05.020 --> 04:09:07.920
Frontier has claimed the debt
and interest savings resulting
04:09:07.920 --> 04:09:09.407
from the restructuring will enhance
04:09:09.407 --> 04:09:12.790
the company's corporate
and operational stability
04:09:12.790 --> 04:09:14.680
and alleges that the savings will enable
04:09:14.680 --> 04:09:17.300
the company's California
operations to improve
04:09:17.300 --> 04:09:21.090
and enhance the services
the subsidiaries provide.
04:09:21.090 --> 04:09:23.870
The Californians cannot
take Frontiers promises
04:09:23.870 --> 04:09:25.270
at face value.
04:09:25.270 --> 04:09:27.597
On their own releasing debt
and lowering interest payments
04:09:27.597 --> 04:09:29.620
are not necessarily
in the public interest
04:09:29.620 --> 04:09:32.450
of Californians unless
specific concrete benefits
04:09:32.450 --> 04:09:34.340
will accrue to customers.
04:09:34.340 --> 04:09:37.040
Before the Commission can
approve the proposed transaction
04:09:37.040 --> 04:09:40.020
it was find the transaction
will be in the public interest.
04:09:40.020 --> 04:09:43.010
This is a requirement
under PU Code Section 854
04:09:43.010 --> 04:09:44.730
which the scoping
memo in this proceeding
04:09:44.730 --> 04:09:47.600
has already ruled applies in assessing
04:09:47.600 --> 04:09:51.040
whether Frontiers application
is in the public interest.
04:09:51.040 --> 04:09:52.840
Therefore, the Commission should impose
04:09:52.840 --> 04:09:55.080
on Frontier specific
conditions that are necessary
04:09:55.080 --> 04:09:56.600
to ensure that proposed restructuring
04:09:56.600 --> 04:09:58.270
is in the public interest.
04:09:58.270 --> 04:10:01.040
Specifically, the Commission
should require Frontier
04:10:01.040 --> 04:10:03.380
to make specific measurable commitments
04:10:03.380 --> 04:10:05.150
to increase network investments,
04:10:05.150 --> 04:10:07.218
improve service quality and reliability
04:10:07.218 --> 04:10:10.100
and provide faster
internet speeds particularly
04:10:10.100 --> 04:10:12.350
for tribal communities,
low income customers
04:10:12.350 --> 04:10:13.803
and customers in rural areas.
04:10:14.650 --> 04:10:17.390
Our testimony includes a
number of recommendations
04:10:17.390 --> 04:10:19.290
and I'm going to briefly summarize a few
04:10:19.290 --> 04:10:22.337
of them here but our
recommendations include
04:10:23.190 --> 04:10:25.833
but are not limited to the following.
04:10:26.750 --> 04:10:28.040
So three things Frontier
04:10:28.040 --> 04:10:30.130
should implement
California specific plans
04:10:30.130 --> 04:10:33.560
to expand fiber deployment
to homes and businesses,
04:10:33.560 --> 04:10:35.800
particularly those located in unserved
04:10:35.800 --> 04:10:37.900
and underserved areas.
04:10:37.900 --> 04:10:40.770
Frontier must commit to
specific monetary investments
04:10:40.770 --> 04:10:42.700
to improve the company's
California network
04:10:42.700 --> 04:10:43.950
and poor service quality.
04:10:45.440 --> 04:10:47.740
Frontier should reinvest money freed up
04:10:47.740 --> 04:10:49.550
in the restructuring into its network
04:10:49.550 --> 04:10:51.450
to improve California service quality.
04:10:52.450 --> 04:10:54.392
Frontier should increase
the number of employees
04:10:54.392 --> 04:10:57.153
that provide customer
service to Californians.
04:10:58.800 --> 04:11:01.160
For a period of no less
than three years Frontier
04:11:01.160 --> 04:11:02.620
should maintain its current rates
04:11:02.620 --> 04:11:04.630
for its low income broadband plans
04:11:04.630 --> 04:11:07.270
while ensuring internet
speeds and data per month
04:11:07.270 --> 04:11:08.378
are at or greater than
04:11:08.378 --> 04:11:11.423
the Federal Communications
Commission's Lifeline program.
04:11:12.550 --> 04:11:15.950
Number six Frontier must commit
to providing minimum speeds
04:11:15.950 --> 04:11:18.950
of 25/3 megabits per
second downstream upstream
04:11:18.950 --> 04:11:21.670
for all new broadband
deployment particularly
04:11:21.670 --> 04:11:24.320
for broadband deployment
in tribal communities
04:11:24.320 --> 04:11:26.450
which have received
disproportionately slower service
04:11:26.450 --> 04:11:27.600
than other communities.
04:11:28.480 --> 04:11:33.480
Frontier must conduct a
customer satisfaction survey
04:11:33.600 --> 04:11:36.640
to measure customer
awareness of digital voice services,
04:11:36.640 --> 04:11:39.320
backup power requirements
and to measure the level
04:11:39.320 --> 04:11:42.763
of customer satisfaction
within Frontier service territory.
04:11:44.010 --> 04:11:47.710
And again, this is just a
summary of our recommendations
04:11:47.710 --> 04:11:50.283
and our full list is
included in our testimony.
04:11:51.970 --> 04:11:54.420
Frontiers poor service quality
and customer service record
04:11:54.420 --> 04:11:56.730
is well known to the
Commission and is imperative
04:11:56.730 --> 04:11:59.480
for Frontier to improve
its California network now
04:11:59.480 --> 04:12:01.710
in light of the recent COVID-19 pandemic
04:12:01.710 --> 04:12:04.140
that has kept us all at
home for months on end,
04:12:04.140 --> 04:12:05.640
as well as the increasing severity
04:12:05.640 --> 04:12:08.060
of climate change related disasters.
04:12:08.060 --> 04:12:09.880
Californians need and deserve safe,
04:12:09.880 --> 04:12:12.650
reliable and affordable
telephone and internet service
04:12:12.650 --> 04:12:14.230
and the state has waited far too long
04:12:14.230 --> 04:12:15.930
for Frontier to deliver.
04:12:15.930 --> 04:12:17.460
Thank you to the
panelists for participating
04:12:17.460 --> 04:12:19.110
in today's workshop and we look forward
04:12:19.110 --> 04:12:20.630
to sharing any additional
comments during
04:12:20.630 --> 04:12:23.480
the upcoming public
participation hearing
04:12:23.480 --> 04:12:27.770
and public comment period
following our comments,
04:12:27.770 --> 04:12:28.603
so thank you.
04:12:32.620 --> 04:12:33.530
Thank you for that.
04:12:33.530 --> 04:12:36.763
Is Rachael Koss. available?
04:12:38.210 --> 04:12:39.750
Yes, good afternoon everybody,
04:12:39.750 --> 04:12:44.120
I'm still trying to access
the WebEx I apologize,
04:12:44.120 --> 04:12:48.960
technical difficulties, it's
not allowing my password.
04:12:48.960 --> 04:12:50.460
Wait, I think it is now.
04:12:50.460 --> 04:12:54.147
Okay, here we go, you
might see my face in a minute.
04:12:57.420 --> 04:12:58.253
Hang on.
04:13:03.800 --> 04:13:04.733
Am I appearing?
04:13:06.620 --> 04:13:09.270
You should be able to
enable your camera right now.
04:13:12.506 --> 04:13:14.006
Okay, apologies.
04:13:16.460 --> 04:13:17.853
Good afternoon everybody.
04:13:19.410 --> 04:13:21.730
Thank you so much Commissioner
Martha Guzman Aceves
04:13:21.730 --> 04:13:25.880
for holding this workshop
and thank you staff very much.
04:13:25.880 --> 04:13:26.760
My name is Rachael Koss,
04:13:26.760 --> 04:13:29.610
I'm here on behalf of
communications Workers
04:13:29.610 --> 04:13:32.380
of America District Nine.
04:13:32.380 --> 04:13:35.790
District nine represents
nearly 20,000 employees
04:13:35.790 --> 04:13:39.420
of communication services
companies in California,
04:13:39.420 --> 04:13:42.530
including Frontier
employees and these include
04:13:42.530 --> 04:13:46.390
the technicians who do the
repair and maintenance work
04:13:46.390 --> 04:13:48.870
on telecommunication facilities.
04:13:48.870 --> 04:13:51.530
They have first hand
knowledge of the condition
04:13:51.530 --> 04:13:54.950
of Frontier system,
what work is getting done,
04:13:54.950 --> 04:13:58.420
what work is necessary
but not getting done.
04:13:58.420 --> 04:14:00.510
This morning we heard
from several government
04:14:00.510 --> 04:14:03.770
and community
representatives that Frontier
04:14:03.770 --> 04:14:06.060
is not doing its job.
04:14:06.060 --> 04:14:09.840
Poor service quality, severe
lack of communication,
04:14:09.840 --> 04:14:12.330
failing to invest in the system,
04:14:12.330 --> 04:14:15.030
exacerbating the digital divide,
04:14:15.030 --> 04:14:19.710
not surprisingly these
accounts are in stark contrast
04:14:19.710 --> 04:14:22.130
to Frontiers presentation
at this workshop
04:14:22.130 --> 04:14:27.130
and from Frontiers formal
claim filed in this proceeding.
04:14:28.380 --> 04:14:31.280
This is alarming and this is telling
04:14:31.280 --> 04:14:36.280
and therefore commitments
by Frontier frankly ring hollow
04:14:37.130 --> 04:14:39.540
and the Commission
should be very concerned
04:14:39.540 --> 04:14:42.680
about the impacts of
Frontiers proposed restructuring
04:14:42.680 --> 04:14:45.923
on customers on safety on employees.
04:14:47.290 --> 04:14:49.380
Frontier has not adequately maintained
04:14:49.380 --> 04:14:51.050
its physical copper plants
04:14:51.050 --> 04:14:54.483
since purchasing Verizon assets in 2016.
04:14:55.948 --> 04:14:59.360
Verizon has in large
part failed to repair
04:14:59.360 --> 04:15:03.453
or replace outdated or
damaged infrastructure,
04:15:04.480 --> 04:15:08.090
customers suffer frequent outages,
04:15:08.090 --> 04:15:10.970
others have poor and outdated service
04:15:10.970 --> 04:15:13.610
and still others like
we heard this morning
04:15:13.610 --> 04:15:16.010
can't get service at all.
04:15:16.010 --> 04:15:20.070
Frankly, this system is
just not safe for workers
04:15:20.070 --> 04:15:21.303
or the public.
04:15:23.520 --> 04:15:28.040
Notably since acquiring
Verizon assets in 2016,
04:15:29.370 --> 04:15:33.790
despite the much needed
work to improve the system,
04:15:33.790 --> 04:15:38.390
the size of Frontiers
workforce has gone down,
04:15:38.390 --> 04:15:43.390
technician positions alone have
gone down by more than 400.
04:15:45.150 --> 04:15:50.150
That means 400 less people
to do the necessary work,
04:15:51.534 --> 04:15:53.646
to do the repairs and upgrades,
04:15:53.646 --> 04:15:57.890
to maintain a safe and reliable
telecommunications system.
04:15:57.890 --> 04:16:01.430
So the accounts by government
and community representatives
04:16:01.430 --> 04:16:05.550
this morning are no
surprise to District Nine.
04:16:05.550 --> 04:16:07.950
Without the people to do the work,
04:16:07.950 --> 04:16:09.513
the work does not get done.
04:16:11.440 --> 04:16:15.830
Experienced technicians
who take pride in their work
04:16:15.830 --> 04:16:17.930
are leaving the company,
04:16:17.930 --> 04:16:21.290
they are frustrated by
Frontiers lack of investment
04:16:21.290 --> 04:16:25.360
in its system, they're
frustrated by poor management
04:16:25.360 --> 04:16:29.270
and they are frustrated
by customer dissatisfaction.
04:16:29.270 --> 04:16:33.550
That means Frontier is
losing technicians who
04:16:33.550 --> 04:16:37.740
are the most familiar with the system,
04:16:37.740 --> 04:16:42.250
this does not bode well
for a system moving forward
04:16:42.250 --> 04:16:45.510
which is already in dire condition
04:16:45.510 --> 04:16:49.720
and this does not bode well
for the restructuring resulting
04:16:49.720 --> 04:16:51.853
in improved service quality.
04:16:53.840 --> 04:16:56.990
Also, as we repeatedly
heard this morning,
04:16:56.990 --> 04:17:01.730
Frontiers fiber installation
is far behind particularly
04:17:01.730 --> 04:17:04.860
in older neighborhoods and rural areas
04:17:04.860 --> 04:17:08.240
with deteriorating
copper infrastructure.
04:17:08.240 --> 04:17:12.060
There is no assurance,
Frontier has given no assurance
04:17:12.060 --> 04:17:15.130
that it can do better
and that it will do better
04:17:15.130 --> 04:17:17.883
on this front following the restructure.
04:17:19.670 --> 04:17:23.230
Finally, District Nine shares
Commissioner Guzman Aceves
04:17:24.195 --> 04:17:27.340
concerns about the
proposed virtual separation.
04:17:27.340 --> 04:17:30.250
Frontier describes this as a plan
04:17:30.250 --> 04:17:32.430
to separate state operations
04:17:32.430 --> 04:17:34.820
between those that will
receive cyber deployment
04:17:34.820 --> 04:17:38.410
and those that will receive
unspecified upgrades
04:17:38.410 --> 04:17:40.420
and improvements.
04:17:40.420 --> 04:17:41.770
Frontiers application
04:17:41.770 --> 04:17:45.450
and it's pursuit in this
proceeding lacks the details
04:17:45.450 --> 04:17:49.550
that the Commission
needs, that the public needs
04:17:49.550 --> 04:17:53.140
on virtual separation and at this point,
04:17:53.140 --> 04:17:56.960
it is impossible to determine
how the virtual separation
04:17:56.960 --> 04:18:00.093
will impact service for Californians.
04:18:01.720 --> 04:18:05.340
This all boils down to
well founded concerns
04:18:05.340 --> 04:18:07.210
that Frontiers restructuring
04:18:07.210 --> 04:18:10.230
will negatively impact customers
04:18:10.230 --> 04:18:15.230
and will negatively impact
employees and District Nine ask
04:18:15.320 --> 04:18:17.440
the Commission to ensure
04:18:17.440 --> 04:18:21.960
that the proposed restructuring
improves service quality
04:18:21.960 --> 04:18:26.670
and is fair to utility
employees by requiring Frontier
04:18:26.670 --> 04:18:30.650
to develop an enforceable
service improvement plan
04:18:30.650 --> 04:18:33.690
for every California service region
04:18:33.690 --> 04:18:36.630
and by requiring Frontier to maintain
04:18:36.630 --> 04:18:40.880
an adequately sized
workforce to fix the network,
04:18:40.880 --> 04:18:43.933
to address the widespread
service quality issues.
04:18:45.960 --> 04:18:50.060
Finally, the Commission,
the parties and the public
04:18:50.060 --> 04:18:53.470
must have sufficient details
on the virtual separation
04:18:53.470 --> 04:18:55.700
to determine what the impact
04:18:55.700 --> 04:18:58.880
will be on California customers.
04:18:58.880 --> 04:19:03.870
We look forward to participating
further in this proceeding
04:19:03.870 --> 04:19:07.560
and thank you again
for holding this workshop
04:19:07.560 --> 04:19:11.173
and allowing District
Nine to participate.
04:19:13.580 --> 04:19:16.483
Thank you very much
for those comments.
04:19:18.870 --> 04:19:23.870
We will now turn this
segment to the public comments
04:19:24.460 --> 04:19:25.347
with the ALJ.
04:19:27.080 --> 04:19:29.530
We've heard all the
parties at this time,
04:19:29.530 --> 04:19:32.020
we will now move the
public comment segment
04:19:32.020 --> 04:19:34.180
of this workshop event
at this time I would like
04:19:34.180 --> 04:19:36.970
to turn this over to
ALJ. Rosinski to lead us
04:19:36.970 --> 04:19:38.960
through the remaining
part of this event,
04:19:38.960 --> 04:19:41.303
ALJ are you available?
04:19:46.560 --> 04:19:47.780
Llela, this is Patrick Rosvall,
04:19:47.780 --> 04:19:49.970
I just wanted to ask a
question that I posed
04:19:49.970 --> 04:19:53.190
on the chat function, we would just like
04:19:53.190 --> 04:19:57.300
to understand whether what's
just been said was transcribed
04:19:57.300 --> 04:20:00.560
and if so we'd like to be
able to respond on the record,
04:20:00.560 --> 04:20:03.520
if not then I understand
we're moving on to something
04:20:03.520 --> 04:20:07.050
that would be transcribed
where we wouldn't be commenting
04:20:07.050 --> 04:20:11.430
but could someone clarify
this for us if you could?
04:20:11.430 --> 04:20:13.373
Yes, thank you Patrick.
04:20:14.390 --> 04:20:17.590
The segment earlier was not transcribed.
04:20:17.590 --> 04:20:19.200
The transcription will begin
04:20:19.200 --> 04:20:22.223
when the ALJ begins his portion.
04:20:23.770 --> 04:20:27.910
All right and are we to
understand that the parties
04:20:27.910 --> 04:20:30.469
are not to be commenting
during this segment,
04:20:30.469 --> 04:20:33.550
that's what I think I understand
but I just wanna make sure.
04:20:33.550 --> 04:20:36.870
Yes, we the ALJ
will clarify the steps
04:20:36.870 --> 04:20:39.050
for the next segment, thank you.
04:20:39.050 --> 04:20:40.000
Great, thank you.
04:20:43.710 --> 04:20:45.773
ALJ. Rosinski, are you ready?
04:20:58.690 --> 04:21:01.833
All right, can you can you
hear me Ms. Tan-Walsh?
04:21:02.840 --> 04:21:04.510
Yes, we can.
04:21:04.510 --> 04:21:05.343
Very good.
04:21:05.343 --> 04:21:06.960
Court reporter, are you ready to begin?
04:21:08.280 --> 04:21:09.889
I am ready, your Honor.
04:21:09.889 --> 04:21:10.723
Very good.
04:21:11.880 --> 04:21:13.680
We are on the record,
04:21:13.680 --> 04:21:15.930
the California Public
Utilities Commission
04:21:15.930 --> 04:21:16.973
will come to order.
04:21:17.980 --> 04:21:22.980
It is now 3:42 p.m. on October
7th, 2020, good afternoon.
04:21:26.640 --> 04:21:29.530
This is a time in place
for the public to comment
04:21:29.530 --> 04:21:33.387
at the end of the public workshop
and application 20-05-010,
04:21:35.790 --> 04:21:39.540
the application of Frontier
Communications Corporation
04:21:39.540 --> 04:21:41.430
and its affiliates for approval
04:21:41.430 --> 04:21:42.880
of a corporate restructuring.
04:21:44.170 --> 04:21:46.300
My name is Peter Rosinski
04:21:46.300 --> 04:21:48.380
and I am the assigned
Administrative Law Judge
04:21:48.380 --> 04:21:49.453
for this proceeding.
04:21:51.250 --> 04:21:53.160
The assigned Commissioner
for this proceeding
04:21:53.160 --> 04:21:56.700
is Martha Guzman
Aceves and Commissioner,
04:21:56.700 --> 04:21:59.240
if you would like to make
some remarks at this point,
04:21:59.240 --> 04:22:00.677
please go ahead and do so.
04:22:08.770 --> 04:22:11.630
Thank you Judge Rosinski
and thank you to the public who
04:22:11.630 --> 04:22:14.530
has held on so long, I'm looking
forward to your comments.
04:22:15.700 --> 04:22:19.150
I know that there's been
a couple of folks who
04:22:19.150 --> 04:22:24.150
have requested to be seen on the WebEx,
04:22:24.840 --> 04:22:26.687
if that's something we can accommodate I
04:22:26.687 --> 04:22:29.840
certainly would be
supportive of that but I leave
04:22:29.840 --> 04:22:34.840
that to you and the folks,
Joe and Robert, thank you.
04:22:38.160 --> 04:22:39.420
Very good, I have no problem
04:22:39.420 --> 04:22:42.590
with that if it's technically
feasible so I will leave
04:22:42.590 --> 04:22:44.190
it to Robert and Joseph as well.
04:22:45.690 --> 04:22:46.829
Thank you Commissioner.
04:22:46.829 --> 04:22:50.270
I will now provide
instructions for those of you
04:22:50.270 --> 04:22:52.490
on the phone who want to speak,
04:22:52.490 --> 04:22:56.190
if you have not already
done so please press star one
04:22:56.190 --> 04:22:58.998
on your phone now and
the operator will add you
04:22:58.998 --> 04:23:01.093
to the line of speakers.
04:23:02.270 --> 04:23:04.110
Those members of the
public who are watching
04:23:04.110 --> 04:23:07.190
on the internet and who
intend to speak in this hearing,
04:23:07.190 --> 04:23:12.010
you must first call upon one
telephone number 800-857-1917
04:23:14.790 --> 04:23:17.740
and then press access code 7218384.
04:23:20.880 --> 04:23:23.450
After you press the access code,
04:23:23.450 --> 04:23:27.760
you must press star one on
your phone to be placed in line.
04:23:27.760 --> 04:23:32.320
After pressing star one, you
will be prompted for your name
04:23:32.320 --> 04:23:34.083
and where you're calling from.
04:23:35.380 --> 04:23:39.077
A court reporter will be
transcribing your comments
04:23:39.077 --> 04:23:41.900
and a transcript of those
comments will be posted
04:23:41.900 --> 04:23:44.560
on the docket card of this proceeding
04:23:44.560 --> 04:23:46.213
on the Commission's website.
04:23:47.320 --> 04:23:52.320
When you speak, please
speak slowly and clearly
04:23:52.620 --> 04:23:54.250
so that the court reporter is able
04:23:54.250 --> 04:23:56.463
to transcribe everything you say.
04:23:57.730 --> 04:24:00.623
Please speak directly
into your phone or headset.
04:24:01.460 --> 04:24:03.793
Please do not use a speakerphone.
04:24:04.690 --> 04:24:06.520
When the operator tells you that you
04:24:06.520 --> 04:24:09.570
can begin speaking please first state
04:24:09.570 --> 04:24:12.090
and spell your name
and then state where you
04:24:12.090 --> 04:24:12.983
are calling from.
04:24:14.520 --> 04:24:17.860
At any time before we end
this time for comments you
04:24:17.860 --> 04:24:21.093
could get in line to speak
by pressing star one.
04:24:22.903 --> 04:24:25.350
A chime will sound after
three minutes to indicate
04:24:25.350 --> 04:24:29.953
that the speaker's time
is over and as I said,
04:24:31.369 --> 04:24:35.063
this segment is dedicated
to comments from the public.
04:24:36.370 --> 04:24:40.723
You're now ready to begin with
transcribed public comments.
04:24:41.950 --> 04:24:45.523
Operator if you could please
announce the first speaker.
04:24:47.940 --> 04:24:51.133
Thank you, the public
comment line is now open.
04:24:51.980 --> 04:24:56.980
Our first speaker will be
Steven Walters, please go ahead.
04:24:59.444 --> 04:25:04.444
Good afternoon, it's Susan
Walters and my name is Susan,
04:25:06.690 --> 04:25:11.103
S-u-s-a-n, Walters, W-a-l-t-e-r-s.
04:25:12.070 --> 04:25:13.420
I'm the Senior Vice President
04:25:13.420 --> 04:25:16.020
of the California
Emerging Technology Fund
04:25:16.020 --> 04:25:19.050
a nonprofit organization
whose mission is to close
04:25:19.050 --> 04:25:21.187
the digital divide in California.
04:25:21.187 --> 04:25:24.300
The ETF participated
in the merger proceeding
04:25:24.300 --> 04:25:26.250
of Frontier and Verizon
04:25:26.250 --> 04:25:28.450
and executed a settlement agreement
04:25:28.450 --> 04:25:29.743
with Frontier to bring
04:25:29.743 --> 04:25:33.230
significant broadband
benefits to customers.
04:25:33.230 --> 04:25:35.660
This includes broadband infrastructure
04:25:35.660 --> 04:25:40.660
to 327,000 underserved
households and businesses
04:25:40.760 --> 04:25:45.760
and new broadband access for
107,000 unserved households,
04:25:46.770 --> 04:25:50.080
as well as affordable
broadband offers and distribution
04:25:51.749 --> 04:25:53.810
of 50,000 tablets to
low income households,
04:25:53.810 --> 04:25:58.440
as well as an increase of
200,000 low income households
04:25:58.440 --> 04:26:00.463
on loan at home.
04:26:01.871 --> 04:26:05.310
So in light of this positive settlement,
04:26:05.310 --> 04:26:07.740
that is the type that
I think Blair Levin
04:26:07.740 --> 04:26:11.490
and others mentioned earlier
this Commission approved,
04:26:11.490 --> 04:26:16.490
these public benefits are
important to continue and CETF
04:26:17.330 --> 04:26:21.210
is concerned about the
financial viability of Frontier.
04:26:21.210 --> 04:26:24.830
At this time, especially
doing it health emergency,
04:26:24.830 --> 04:26:28.940
it's critical for all customers
or consumers really,
04:26:28.940 --> 04:26:33.380
to have broadband and CETF
supports the need for Frontier
04:26:33.380 --> 04:26:36.810
to move forward in a
healthy financial state
04:26:36.810 --> 04:26:41.810
but also for the PUC to
continue the commitment
04:26:41.990 --> 04:26:46.100
for voice and broadband
service to all customers.
04:26:46.100 --> 04:26:50.280
Many of the earlier comments
reflect policy leadership
04:26:50.280 --> 04:26:54.040
that's needed in
California in clarity about
04:26:54.040 --> 04:26:58.050
how to reach broadband
goals for everyone.
04:26:58.050 --> 04:27:01.840
For example, many people
commented that Frontier oppose
04:27:01.840 --> 04:27:05.677
an interest in innovative
solutions but all companies
04:27:05.677 --> 04:27:08.390
or almost all companies have opposed
04:27:08.390 --> 04:27:11.300
those or challenged CAF applications
04:27:11.300 --> 04:27:15.963
in their service areas because AB-1665.
04:27:19.258 --> 04:27:21.890
The Commission will have
a chance in new legislation
04:27:21.890 --> 04:27:25.633
to oppose those kinds of
measures going forward.
04:27:28.747 --> 04:27:29.580
All right, very good.
04:27:29.580 --> 04:27:33.320
Thank you Ms. Walters for your comments.
04:27:33.320 --> 04:27:36.120
Operator, if you could please
announce the next speaker.
04:27:38.460 --> 04:27:42.300
Our next speaker is
Ronald Rauhecker your line
04:27:42.300 --> 04:27:43.511
is now open.
04:27:43.511 --> 04:27:47.300
Yes, this is Ronald
Rauhecker, last name spelling
04:27:47.300 --> 04:27:52.300
is R-a-u-h-e-c-k-e-r
from Novato, California.
04:27:55.670 --> 04:28:00.670
We need ethics in it's call office
04:28:01.227 --> 04:28:05.550
but Frontier pools every
time they make a billing app,
04:28:05.550 --> 04:28:10.550
they try to add extra items
on there, like road repair,
04:28:12.020 --> 04:28:16.630
and calls you didn't make
and this happens in every bill
04:28:18.560 --> 04:28:19.770
and we need to stop it.
04:28:19.770 --> 04:28:24.560
When you try to find out
who their aging process is,
04:28:24.560 --> 04:28:26.263
they play dumbfounded.
04:28:27.950 --> 04:28:29.400
I don't know how they're able to get
04:28:29.400 --> 04:28:32.730
by without having to
post that with the state
04:28:32.730 --> 04:28:35.250
but I've tried several
times to be able to take him
04:28:35.250 --> 04:28:38.950
to small claims court and
I've been unable to reach
04:28:38.950 --> 04:28:42.260
the address processing agent.
04:28:42.260 --> 04:28:45.850
We need to have that
furnished to every recipient
04:28:45.850 --> 04:28:47.743
of Frontier customers.
04:28:49.507 --> 04:28:51.003
We are totally upset,
04:28:51.930 --> 04:28:56.930
Frontier should at least pay
a $10 million bond put aside
04:28:57.810 --> 04:29:02.543
to make sure that they make
these promises come true.
04:29:03.490 --> 04:29:06.473
We've had so many
outages and stuff like that,
04:29:07.590 --> 04:29:10.423
that it's unrealistic anymore.
04:29:12.100 --> 04:29:16.060
Every excuse you get,
it doesn't come true,
04:29:16.060 --> 04:29:18.113
they just just lie like hell.
04:29:19.850 --> 04:29:23.630
There needs to be a
separate precedents put out
04:29:23.630 --> 04:29:27.443
so something like this does
not have ever happened again.
04:29:28.320 --> 04:29:32.950
I'm 80 years old and I've
never done companies like this,
04:29:32.950 --> 04:29:34.523
their ethics is.
04:29:39.170 --> 04:29:40.463
Thank you for hearing me.
04:29:41.890 --> 04:29:44.830
Thank you Mr. Rauhecker
for your comments.
04:29:44.830 --> 04:29:46.230
Operator, if you could please announce
04:29:46.230 --> 04:29:47.430
the next speaker please.
04:29:48.710 --> 04:29:50.610
Your Honor, there
are no more speakers
04:29:50.610 --> 04:29:52.663
on the public comment telephone line.
04:29:55.032 --> 04:29:56.363
Okay, thank you operator.
04:29:58.240 --> 04:30:00.140
We would like to give
everyone an opportunity
04:30:00.140 --> 04:30:03.060
to speak in this public comment section
04:30:03.950 --> 04:30:05.580
and there may be
others who are attempting
04:30:05.580 --> 04:30:09.440
to now call in and so
what I'm going to do
04:30:09.440 --> 04:30:11.990
is I will check back with
you operator several times
04:30:11.990 --> 04:30:14.280
over the next few minutes to see
04:30:14.280 --> 04:30:17.240
whether there are any other commenters
04:30:17.240 --> 04:30:22.200
or anyone else who intends
to call in, please do so now.
04:30:22.200 --> 04:30:27.200
Press the code number after
dialing the number 800-857-1917,
04:30:30.190 --> 04:30:33.837
press the passcode number
7218384 then press star one
04:30:36.270 --> 04:30:38.790
and you'll be placed in line.
04:30:38.790 --> 04:30:41.470
So I will wait a minute and see
04:30:41.470 --> 04:30:42.710
if there are any other callers.
04:30:42.710 --> 04:30:44.350
Operator, if you do get some callers,
04:30:44.350 --> 04:30:46.050
please go ahead and announce them.
04:30:48.010 --> 04:30:49.623
We do have another caller.
04:30:50.460 --> 04:30:53.733
Margaret Grahame, please go ahead.
04:30:55.460 --> 04:30:58.440
Thank you, my name
is Margaret Grahame
04:30:58.440 --> 04:31:02.130
and I live in Timber Cove
which is Sonoma County out
04:31:02.130 --> 04:31:02.963
on the coast.
04:31:05.036 --> 04:31:06.490
We're a small rural community
04:31:06.490 --> 04:31:11.170
but we have a huge
amount of tourists out
04:31:11.170 --> 04:31:13.530
to a wonderful coast out here.
04:31:13.530 --> 04:31:17.173
And because we're a
small residential community,
04:31:18.052 --> 04:31:20.700
Frontier does not provide
04:31:20.700 --> 04:31:22.893
adequate broadband service out here.
04:31:24.730 --> 04:31:28.470
I support what Supervisor
Stump and Goss both said
04:31:28.470 --> 04:31:32.750
about living in a rural
neighborhood but I also wanna raise
04:31:32.750 --> 04:31:37.750
the question about what
costs there might be incurred
04:31:39.060 --> 04:31:43.560
if we go ahead with the
support of Frontier financially
04:31:43.560 --> 04:31:46.583
and even though they have already said
04:31:46.583 --> 04:31:48.960
that they shall evaluate areas where
04:31:48.960 --> 04:31:50.723
it makes financial sense,
04:31:51.560 --> 04:31:55.780
when they don't actually
come through with supporting us
04:31:55.780 --> 04:31:59.320
in providing adequate
broadband services out here,
04:31:59.320 --> 04:32:04.170
what's the cost in terms
of economic losses,
04:32:04.170 --> 04:32:07.263
public benefits to schools
and emergency response.
04:32:08.620 --> 04:32:13.620
Loss of trust in the CPUC
and delays in startups
04:32:14.620 --> 04:32:18.243
of alternative local agencies
that may well have been able
04:32:18.243 --> 04:32:21.920
to provide this service
to us and these delays
04:32:21.920 --> 04:32:25.930
might be over a couple of
years and these are costs
04:32:25.930 --> 04:32:30.860
to our community that are
in addition to the bailout costs
04:32:30.860 --> 04:32:32.993
that aren't necessarily
being recognized.
04:32:39.150 --> 04:32:41.983
Very good, Ms. Grahame
you finished with your comments.
04:32:43.330 --> 04:32:45.200
I do want to say,
04:32:45.200 --> 04:32:48.970
I sit here in my office here
where I work from home,
04:32:48.970 --> 04:32:53.970
I have a 14 year old going
to high school via Zoom,
04:32:54.460 --> 04:32:59.460
we can't do more than two
people on Zoom at any one time
04:32:59.780 --> 04:33:01.640
so things like medical appointments
04:33:01.640 --> 04:33:03.520
have to be structured around
04:33:03.520 --> 04:33:05.440
and also when I look out my window,
04:33:05.440 --> 04:33:09.760
I see Highway One which
has fiber available to it.
04:33:09.760 --> 04:33:12.970
It is installed in there and
yet we cannot get access
04:33:12.970 --> 04:33:15.660
to it because the Frontier.
04:33:15.660 --> 04:33:18.110
Thank you very much for
the opportunity to speak.
04:33:19.570 --> 04:33:20.820
Thank you, Ms. Grahame.
04:33:22.190 --> 04:33:25.193
Operator, do you have any
other speakers on the line?
04:33:26.400 --> 04:33:28.167
Your Honor, I'm
showing no other speakers
04:33:28.167 --> 04:33:29.513
on the telephone line.
04:33:31.050 --> 04:33:34.340
All right, I will wait a
minute and I will check back
04:33:34.340 --> 04:33:36.350
with the operator and see
if anyone else has called in,
04:33:36.350 --> 04:33:38.679
again operator if someone
calls in please go ahead
04:33:38.679 --> 04:33:40.179
and announce them.
04:35:12.878 --> 04:35:15.273
All right, operator is there
anyone else that's called in?
04:35:16.920 --> 04:35:19.413
No sir I am showing
up further callers.
04:35:20.354 --> 04:35:21.723
Very good, we
are going to wait,
04:35:21.723 --> 04:35:23.933
I'll wait another minute and
check back with you operator.
04:35:23.933 --> 04:35:26.220
I wanna give anyone who wishes
04:35:26.220 --> 04:35:28.563
to comment a full opportunity to do so.
04:35:32.903 --> 04:35:33.736
Judge Rosinski,
04:35:33.736 --> 04:35:38.290
I know there was one particular
caller from Volusia County,
04:35:38.290 --> 04:35:41.070
I don't know if communications
division has been able
04:35:41.070 --> 04:35:43.883
to get her through.
04:35:46.390 --> 04:35:49.347
I believe her name is Alena Anberg.
04:35:53.594 --> 04:35:58.594
Okay, if anyone with
communication division
04:36:03.410 --> 04:36:07.350
can give us an update
on on that potential caller,
04:36:07.350 --> 04:36:08.790
that'd be great.
04:36:08.790 --> 04:36:11.200
This is Llela,
I'm checking if we
04:36:11.200 --> 04:36:13.760
can get a Alena's phone
number then maybe we
04:36:13.760 --> 04:36:16.563
can just have the
operator call her back.
04:36:18.840 --> 04:36:19.673
Very good.
04:36:34.580 --> 04:36:39.580
We do have a caller, Jury
Hensley you may proceed.
04:36:43.400 --> 04:36:44.233
Thank you.
04:36:45.410 --> 04:36:50.410
I just really want to
reiterate what the first caller
04:36:50.610 --> 04:36:54.100
that I heard said
about the lack of service
04:36:55.540 --> 04:36:58.980
with Frontier in particularly
04:36:58.980 --> 04:37:03.790
the small communities who
don't have any other choice.
04:37:03.790 --> 04:37:08.210
We're in a situation
where we're basically stuck
04:37:08.210 --> 04:37:11.670
with Frontier, they don't appear
04:37:11.670 --> 04:37:14.610
to care very much truthfully
04:37:16.244 --> 04:37:19.363
if we have good internet service
04:37:21.950 --> 04:37:25.390
and consistent internet service.
04:37:25.390 --> 04:37:28.470
I myself experiencing several,
04:37:28.470 --> 04:37:33.470
several issues for several
months, with Frontiers pricing.
04:37:33.770 --> 04:37:37.700
I had a contract or
have a contract with them
04:37:37.700 --> 04:37:41.580
and they're trying to
charge me a lot more
04:37:41.580 --> 04:37:43.293
than my contract price.
04:37:44.630 --> 04:37:47.070
They seem to think that they can just do
04:37:47.070 --> 04:37:50.450
this and people have to accept it.
04:37:50.450 --> 04:37:53.550
They really are not a very good company
04:37:53.550 --> 04:37:55.423
to have to deal with.
04:37:56.620 --> 04:38:00.560
The majority of us who
had Verizon in the past,
04:38:00.560 --> 04:38:02.870
before this merger went through,
04:38:02.870 --> 04:38:07.870
are really upset truthfully,
that this merger did occur.
04:38:09.310 --> 04:38:13.880
We expected some
problems because we knew
04:38:13.880 --> 04:38:18.880
that Verizon wiring et cetera
was not basically up to code,
04:38:21.300 --> 04:38:22.840
it was the old.
04:38:22.840 --> 04:38:25.180
We expected that Frontier would take
04:38:25.180 --> 04:38:27.840
the initiative and fix these issues
04:38:27.840 --> 04:38:31.283
which evidently
they're not willing to do.
04:38:32.120 --> 04:38:34.830
So that's really
basically all I have to say,
04:38:34.830 --> 04:38:38.810
thank you very much for taking my call.
04:38:38.810 --> 04:38:40.810
Very good, thank you, Ms.
Hensley for taking the time
04:38:40.810 --> 04:38:42.720
to call in and comment.
04:38:43.640 --> 04:38:45.853
Operator anyone else that has called in?
04:38:47.140 --> 04:38:47.973
Yes, sir.
04:38:47.973 --> 04:38:50.290
Next we have Michael Pierce.
04:38:50.290 --> 04:38:52.683
Your line is now open, please proceed.
04:38:55.560 --> 04:38:58.350
Hello Judge Rosinski,
My name is Michael Pierce
04:38:58.350 --> 04:39:01.890
and I'm on the staff of the
PUCs Communications Division
04:39:01.890 --> 04:39:04.503
and I just want to raise
a point of information.
04:39:05.720 --> 04:39:09.190
My understanding is that
there was supposed to be time
04:39:09.190 --> 04:39:11.560
for the public forum at 5:30
04:39:11.560 --> 04:39:14.820
and if other people
believe that's the case
04:39:14.820 --> 04:39:18.200
they may be calling in
then so I might suggest
04:39:18.200 --> 04:39:21.690
that there be
accommodations made that you
04:39:21.690 --> 04:39:24.630
can have the lines open
and you can be listening
04:39:24.630 --> 04:39:28.483
at 5:30 to 5:45 in case
other people wanna call then.
04:39:30.720 --> 04:39:34.069
Very good and I'll let
you continue to want to,
04:39:34.069 --> 04:39:35.400
because it appears that we are going
04:39:35.400 --> 04:39:39.180
to have a separate public
participation hearing session
04:39:39.180 --> 04:39:43.450
that will start at 5:30 so
that addresses your concern.
04:39:43.450 --> 04:39:45.410
Do you have any other comment you'd like
04:39:45.410 --> 04:39:47.170
to make this Mr. Pierce?
04:39:47.170 --> 04:39:49.475
Nope, that's it, thank you.
04:39:49.475 --> 04:39:51.475
Very good, thank
you for your comment.
04:39:53.510 --> 04:39:55.833
Operator, anyone else that's called in?
04:40:08.400 --> 04:40:09.590
Hello.
04:40:09.590 --> 04:40:12.500
Yes, hello operator,
has anyone else called in?
04:40:12.500 --> 04:40:14.160
Yes, we do have.
04:40:14.160 --> 04:40:16.260
Scott Farmer, your line is now open.
04:40:17.500 --> 04:40:21.510
Thank you, my name is
Scott Farmer on the Chair
04:40:21.510 --> 04:40:25.806
of the Sonoma County Coast
Municipal Advisory Council
04:40:25.806 --> 04:40:30.210
and just briefly, on the Sonoma
County coast area served
04:40:30.210 --> 04:40:34.970
by Frontier experiences issues presented
04:40:34.970 --> 04:40:36.623
by this panel through the day.
04:40:38.020 --> 04:40:43.020
Frontier has marketed
services to, excuse me,
04:40:43.290 --> 04:40:44.123
let me start over.
04:40:44.123 --> 04:40:46.630
Our experience with
Frontier on the Sonoma Coast
04:40:46.630 --> 04:40:50.693
is much like other tribal and
rural communities have stated.
04:40:51.780 --> 04:40:55.520
Being rural to far
too few, I don't expect
04:40:55.520 --> 04:40:57.940
to see any improvement
in service standard soon.
04:40:57.940 --> 04:41:02.940
The frustration is that
Frontier claims to serve areas
04:41:03.060 --> 04:41:08.060
which which they do so
marginally or not at all.
04:41:08.810 --> 04:41:11.450
The claims are erroneous,
04:41:11.450 --> 04:41:14.880
local efforts to break
out are challenged,
04:41:14.880 --> 04:41:17.010
we understand the economics,
04:41:17.010 --> 04:41:19.710
however our communities are fading.
04:41:19.710 --> 04:41:23.250
Real broadband is
critical to our vitality,
04:41:23.250 --> 04:41:28.250
please give us a viable
path forward, thank you.
04:41:31.360 --> 04:41:33.883
Thank you Mr. Farmer
for your comment.
04:41:35.340 --> 04:41:37.683
Operator is there anyone
else that's called in?
04:41:50.115 --> 04:41:54.365
Sorry, operator is there
anyone else was called in.
04:41:55.280 --> 04:41:59.780
No, sir, I am showing no
further callers at this time.
04:41:59.780 --> 04:42:01.033
Okay, all right.
04:42:02.090 --> 04:42:04.440
We will wait a minute, I will check back
04:42:04.440 --> 04:42:06.150
with the operators see
if anyone else has called
04:42:06.150 --> 04:42:09.000
in and we'll also follow up
04:42:09.000 --> 04:42:14.000
with with Ms. Anberg who
indicated that she wanted
04:42:14.740 --> 04:42:17.457
to call in, let's see if
we can connect with her.
04:43:39.310 --> 04:43:41.910
Operator, do we have any
other speakers in the line?
04:43:44.340 --> 04:43:47.730
Your Honor, I am still
showing no further speakers
04:43:47.730 --> 04:43:49.180
on the line.
04:43:49.180 --> 04:43:51.740
All right, we will wait
and I will check back
04:43:51.740 --> 04:43:52.873
with you operator.
04:45:15.606 --> 04:45:18.156
Operator is there anyone
else in the line to speak?
04:45:26.710 --> 04:45:31.010
Sir, I am showing no
further speakers at this time.
04:45:31.010 --> 04:45:34.640
All right, we will continue
to wait while we're doing
04:45:34.640 --> 04:45:38.363
that CD Division I don't
know if any one of you
04:45:38.363 --> 04:45:41.210
have had an opportunity
to see if we can connect
04:45:41.210 --> 04:45:43.260
with Ms. Alena but please let me know
04:45:43.260 --> 04:45:46.890
if there's anything new
regarding attempt to contact her
04:45:46.890 --> 04:45:51.450
to call in for this
segment of the workshop.
04:45:51.450 --> 04:45:55.520
Hi ALJ, we tried to
reach out to the caller
04:45:55.520 --> 04:45:59.023
but there was no
response with from our calls.
04:47:10.150 --> 04:47:12.793
Operator any anyone
else that is called in?
04:47:17.090 --> 04:47:22.000
Your Honor, I'm showing no
further speakers at this time.
04:47:22.000 --> 04:47:26.330
Okay, I do wanna give
everyone the opportunity
04:47:26.330 --> 04:47:30.070
to call in and I will wait again
04:47:30.070 --> 04:47:32.770
and I'll check back one more time to see
04:47:32.770 --> 04:47:34.640
whether if anyone has called in.
04:47:34.640 --> 04:47:38.420
If any of the staff people are aware
04:47:38.420 --> 04:47:42.450
of any possible connections
that I should be aware
04:47:42.450 --> 04:47:46.157
of to allow them to comment
04:47:46.157 --> 04:47:49.123
in this segment please let me know.
04:48:11.150 --> 04:48:13.170
Hello, this is Kundra
Monish speaking I
04:48:13.170 --> 04:48:15.103
have Alena Anberg on the line.
04:48:16.610 --> 04:48:17.443
Very good.
04:48:18.820 --> 04:48:21.710
Hi there, my name is Alena
Anberg and I'm a teacher
04:48:21.710 --> 04:48:24.640
in a rural Northern
California county of Volusia.
04:48:24.640 --> 04:48:27.423
I was working on the
internet world divide
04:48:27.423 --> 04:48:30.320
since March when of course
as a teacher we went home
04:48:30.320 --> 04:48:33.610
with students and
needed the connectivity
04:48:33.610 --> 04:48:36.620
but along the way I
talked to each resident,
04:48:36.620 --> 04:48:38.357
I went door knocking
actually door to door
04:48:38.357 --> 04:48:41.190
for each of our 1300
student homes and beyond
04:48:41.190 --> 04:48:43.110
to see what was needed
and what they had and did they
04:48:43.110 --> 04:48:45.460
have a cell phone or
could they use a hotspot
04:48:45.460 --> 04:48:47.500
and I ordered some SIM cards to pass out
04:48:47.500 --> 04:48:49.950
from smartphones I
collected from the community
04:48:49.950 --> 04:48:53.060
to then redistribute to
people who with SIM cards
04:48:53.060 --> 04:48:56.090
to use as connections
to their Chromebooks
04:48:56.090 --> 04:48:58.260
but along the way, I was
waiting for the SIM cards
04:48:58.260 --> 04:49:00.950
and realized that actually
coming more north towards
04:49:00.950 --> 04:49:02.810
the school district I
realized people did
04:49:02.810 --> 04:49:06.787
have service subscribe to
service but did not have service
04:49:06.787 --> 04:49:08.729
and that was Frontier service
04:49:08.729 --> 04:49:12.010
and has been the monopoly
provider here for over 30 years.
04:49:12.010 --> 04:49:14.010
And so I started doing
research then into
04:49:14.010 --> 04:49:16.272
that as to what is going
on with that and also,
04:49:16.272 --> 04:49:18.340
of course looking for other solutions.
04:49:18.340 --> 04:49:20.860
So I wanted to call in
today for two reasons,
04:49:20.860 --> 04:49:23.020
one to be encouraging
rural communities who
04:49:23.020 --> 04:49:24.440
are having these kinds of struggles
04:49:24.440 --> 04:49:25.750
that there are solutions out
04:49:25.750 --> 04:49:27.990
there and I would encourage
everyone to first talk
04:49:27.990 --> 04:49:29.540
to their residents and see where things
04:49:29.540 --> 04:49:34.540
are at and then reach out to
midsize and smaller providers
04:49:34.660 --> 04:49:36.860
and some large providers to see
04:49:36.860 --> 04:49:38.200
and to have those conversations
04:49:38.200 --> 04:49:39.790
that you're talking about
having with Frontier,
04:49:39.790 --> 04:49:41.950
how can we serve
this population in a way
04:49:41.950 --> 04:49:44.270
that makes sense for the
provider as well in terms
04:49:44.270 --> 04:49:47.280
of revenue or other issues.
04:49:47.280 --> 04:49:49.260
So that is something that worked
04:49:50.855 --> 04:49:52.710
in a grassroots effort
talking to all stakeholders
04:49:52.710 --> 04:49:54.840
then talking to some
writers as a stakeholder
04:49:54.840 --> 04:49:56.210
and seeing what can happen.
04:49:56.210 --> 04:49:58.510
We do have a provider so to answer one
04:49:58.510 --> 04:50:00.270
of the Commissioners
questions from this morning,
04:50:00.270 --> 04:50:02.500
are there providers out
there who are able to do this?
04:50:02.500 --> 04:50:04.660
Yes, there are, we found one and we
04:50:04.660 --> 04:50:07.140
have rural residents
now connected for school
04:50:08.010 --> 04:50:10.430
from a provider who was
willing to have that conversation,
04:50:10.430 --> 04:50:13.450
we just installed one and
signed up yesterday in fact,
04:50:13.450 --> 04:50:16.590
from a really small
rural community of grime.
04:50:16.590 --> 04:50:19.810
So that's super exciting but
the other reason I'm calling
04:50:19.810 --> 04:50:22.910
is because I would not
in under any circumstance
04:50:22.910 --> 04:50:25.000
be having that
conversation with Frontier.
04:50:25.000 --> 04:50:28.197
It's been here for 30 years,
we do have the copper lines
04:50:28.197 --> 04:50:30.730
and our copper lines have
water in them when it rains
04:50:30.730 --> 04:50:33.220
to the point that the
technicians even say,
04:50:33.220 --> 04:50:35.030
just wait for the water to dry out,
04:50:35.030 --> 04:50:36.780
just wait for the rain to dry out.
04:50:36.780 --> 04:50:39.320
They're not going to come
and do any kind of repairs
04:50:39.320 --> 04:50:41.250
or anything just wait for it to dry out.
04:50:41.250 --> 04:50:44.312
I've had parents with have
special needs students ...
04:50:44.312 --> 04:50:48.200
Ms. Anberg, could
I just interrupt you,
04:50:48.200 --> 04:50:50.227
I apologize for interrupting you.
04:50:50.227 --> 04:50:51.530
The court reporter would just ask
04:50:51.530 --> 04:50:53.350
if you just speak a
little bit more slowly,
04:50:53.350 --> 04:50:56.570
she's taking down
everything you're saying
04:50:56.570 --> 04:50:59.470
so if you could just to slow
down a little bit, thank you.
04:50:59.470 --> 04:51:00.590
Please go ahead.
04:51:00.590 --> 04:51:02.270
I am a little nervous folks.
04:51:02.270 --> 04:51:05.880
So I've had parents with
special needs students
04:51:05.880 --> 04:51:07.170
who then their internet went out
04:51:07.170 --> 04:51:09.520
and wasn't getting
addressed to be resolved
04:51:09.520 --> 04:51:11.710
until that person
actually had to reach out
04:51:11.710 --> 04:51:13.850
to legislators to get
action on the repair
04:51:13.850 --> 04:51:15.760
for the internet at her home and she
04:51:15.760 --> 04:51:18.380
has some high need
students in that home.
04:51:18.380 --> 04:51:21.460
Also a parent who called in
for some low STS programming
04:51:21.460 --> 04:51:24.110
from Frontier and was
given the runaround,
04:51:24.110 --> 04:51:26.130
a lot of hoop jumping
so that their practices
04:51:26.130 --> 04:51:29.210
are then prohibitive for
these parents who do engage
04:51:29.210 --> 04:51:31.440
those kind of lower income, low STS,
04:51:31.440 --> 04:51:36.440
good pricey programs here,
such as getting a password
04:51:36.500 --> 04:51:39.660
for a portal, emailing,
voicemail calls back
04:51:39.660 --> 04:51:41.323
and forth for weeks
and weeks to the point
04:51:41.323 --> 04:51:43.330
that the person called
to get service under
04:51:43.330 --> 04:51:47.360
that program in April and
has it has yet to be installed
04:51:47.360 --> 04:51:48.773
and we're into October.
04:51:50.020 --> 04:51:53.240
Another parent called in
subscribe to Frontier service
04:51:53.240 --> 04:51:56.730
and then found out about the
low STS program so called back
04:51:56.730 --> 04:51:59.920
into Frontier to ask for that
rate which she did qualify
04:51:59.920 --> 04:52:03.380
for and Frontier customer
service let her know,
04:52:03.380 --> 04:52:06.680
no you would not want
that service, it is really slow,
04:52:06.680 --> 04:52:07.890
it is really bad, you would not want
04:52:07.890 --> 04:52:10.560
that so she ended up
saying with a higher rate plan
04:52:10.560 --> 04:52:13.590
even though she qualified
for the lower STS service
04:52:13.590 --> 04:52:14.640
that was being offered.
04:52:14.640 --> 04:52:16.340
There was an advocacy group that we work
04:52:16.340 --> 04:52:18.970
with that called and
heard about what the work I
04:52:18.970 --> 04:52:21.070
was doing and said, yeah,
04:52:21.070 --> 04:52:23.380
the Chromebook program
they're doing is just not gonna work
04:52:23.380 --> 04:52:25.540
for your area because
Frontier doesn't work well
04:52:25.540 --> 04:52:26.373
in your area.
04:52:26.373 --> 04:52:29.280
So there's just example
after example of parents
04:52:29.280 --> 04:52:32.120
and families and real
humans I've talked to,
04:52:32.120 --> 04:52:35.520
it's a struggle with Frontier
as our primary provider here
04:52:35.520 --> 04:52:38.250
for 30 years, there
has been no investment
04:52:38.250 --> 04:52:42.010
but there has been quite
a lot of deceit, neglect,
04:52:42.010 --> 04:52:44.810
prohibitive practices and
even oppressive practices I
04:52:44.810 --> 04:52:47.400
would argue and I got
in a little to the funding
04:52:47.400 --> 04:52:51.553
into reports about where
they absorbed $140 million
04:52:51.553 --> 04:52:55.810
in Connect America to plans
in California and even claim
04:52:55.810 --> 04:52:59.970
to deploy addresses in my
hometown of Arbuckle, California,
04:52:59.970 --> 04:53:02.260
two streets that are
super rural, such as wire,
04:53:02.260 --> 04:53:05.640
road or own road which
just are not the case.
04:53:05.640 --> 04:53:09.510
As an example, the only
site on on road is a cemetery
04:53:09.510 --> 04:53:12.440
so unless people in
there in the gravestones
04:53:12.440 --> 04:53:16.360
are going online, that's
just not an accurate report
04:53:16.360 --> 04:53:18.810
of where those funds went or
where those appointments went.
04:53:18.810 --> 04:53:22.290
So I encourage people to have
these kinds of conversations
04:53:22.290 --> 04:53:25.130
and I encourage the
Commission to please consider
04:53:25.130 --> 04:53:28.600
not just getting the creditor, you know,
04:53:28.600 --> 04:53:30.980
even or getting back some
money for the shareholders
04:53:30.980 --> 04:53:34.060
which of course, I
understand that but literally look
04:53:34.060 --> 04:53:37.440
at the impact that Frontier
is having on communities
04:53:37.440 --> 04:53:41.270
which from my perspective
is damaging and blocking
04:53:41.270 --> 04:53:44.220
of opportunities that where
quality providers could come in,
04:53:44.220 --> 04:53:48.330
in some cases they do have a
true monopoly and other cases,
04:53:48.330 --> 04:53:50.050
they're just not willing
to partner with folks
04:53:50.050 --> 04:53:50.930
and those sorts of things.
04:53:50.930 --> 04:53:53.900
So I agree and I'm very
thankful for the callers
04:53:53.900 --> 04:53:56.340
on the first half of the day
who were describing some
04:53:56.340 --> 04:53:59.080
of the similar issues
with their relationships
04:53:59.080 --> 04:54:01.047
or projects or
experiences with Frontier,
04:54:01.047 --> 04:54:04.840
the woman who was
representing the tribal people
04:54:04.840 --> 04:54:06.110
and the gentleman.
04:54:06.110 --> 04:54:08.130
I also agreed with the District Two
04:54:08.130 --> 04:54:09.680
or was it District Three supervisor
04:54:09.680 --> 04:54:12.630
who was talking about
having opportunities
04:54:12.630 --> 04:54:14.870
to improve things and
didn't so in his district
04:54:14.870 --> 04:54:16.110
there was a fire one time
04:54:16.110 --> 04:54:17.290
and that would have been an opportunity
04:54:17.290 --> 04:54:19.220
to make some improvements
as they made the repair
04:54:19.220 --> 04:54:21.610
and they chose not to and
went ahead and did fiber,
04:54:21.610 --> 04:54:23.850
I mean Copper instead.
04:54:23.850 --> 04:54:25.990
And there are fiber in
some of these communities
04:54:25.990 --> 04:54:28.700
usually in sometimes
installed by a home developer
04:54:28.700 --> 04:54:31.570
or something and so really,
communities can start looking
04:54:31.570 --> 04:54:34.350
at other industries to
help out as well such
04:54:34.350 --> 04:54:37.250
as a house developer
who can help install fiber
04:54:37.250 --> 04:54:38.887
as they're install in
their homes, I mean,
04:54:38.887 --> 04:54:41.560
new home builders and go from there.
04:54:41.560 --> 04:54:44.130
There's a lot of solutions
out there and I'm happy
04:54:44.130 --> 04:54:46.530
to talk with anyone listening
or any of the Commission
04:54:46.530 --> 04:54:49.492
about any of this but
I would really rather
04:54:49.492 --> 04:54:54.492
be here reorganizing and
they be held accountable ...
04:54:54.765 --> 04:54:59.000
Can you hear me ma'am,
this is the court reporter,
04:54:59.000 --> 04:55:01.870
I'm sorry to put the brakes on.
04:55:01.870 --> 04:55:04.580
Before you leave the line I
need you just fill your name
04:55:04.580 --> 04:55:06.320
and if you could slow down a bit,
04:55:06.320 --> 04:55:08.690
that would be very helpful, thanks.
04:55:08.690 --> 04:55:09.523
Yes, thank you.
04:55:09.523 --> 04:55:13.341
So I would prefer that
Frontier not only be allowed
04:55:13.341 --> 04:55:16.590
to reorganize and
continue in this manner
04:55:16.590 --> 04:55:21.123
but also be held accountable
for their actions thus far.
04:55:21.123 --> 04:55:21.956
All right.
04:55:21.956 --> 04:55:23.780
And that is what I have to say.
04:55:23.780 --> 04:55:27.036
We're good, Ms. Anberg
could you please spell your first
04:55:27.036 --> 04:55:29.400
and last name for the court reporter?
04:55:29.400 --> 04:55:34.400
A-l-e-n-a, A-n-b as in
boy, e-r-g as in Georgia.
04:55:37.100 --> 04:55:40.440
And I'm happy to answer questions
04:55:40.440 --> 04:55:43.863
or the be available
outside of this meeting.
04:55:44.970 --> 04:55:45.803
Very good.
04:55:45.803 --> 04:55:48.690
Thank you for your comments Ms. Anberg.
04:55:48.690 --> 04:55:49.523
Thank you.
04:55:51.210 --> 04:55:53.350
Operator, do you have
any other callers on the line
04:55:53.350 --> 04:55:54.350
or waiting to speak?
04:55:56.117 --> 04:55:59.963
Your Honor, I'm showing
no further callers at this time.
04:56:01.090 --> 04:56:05.620
Okay, we are
going to wait a minute
04:56:05.620 --> 04:56:08.230
or so to see whether
there are any other callers.
04:57:13.460 --> 04:57:15.310
Operator anyone else who's called in?
04:57:19.010 --> 04:57:23.150
No sir, I am showing
no callers at this time.
04:57:23.150 --> 04:57:26.030
All right, we are going to
give one more opportunity
04:57:26.030 --> 04:57:27.553
for any caller to call in.
04:58:35.700 --> 04:58:37.433
Operator is anyone else called in?
04:58:40.050 --> 04:58:43.393
Your Honor, I am showing
no further callers at this time.
04:58:45.336 --> 04:58:49.113
I'm gonna go ahead and
make some closing statements.
04:58:50.150 --> 04:58:53.200
If at any time before I finish
04:58:53.200 --> 04:58:54.380
with those statements operator,
04:58:54.380 --> 04:58:57.487
please interrupt me let me
know if someone has called in,
04:58:57.487 --> 04:59:00.210
I certainly want to give
everyone opportunity
04:59:00.210 --> 04:59:03.573
to make any comments that they wish.
04:59:04.494 --> 04:59:09.113
I wanna thank you operator
for your work that appears
04:59:10.530 --> 04:59:14.260
to conclude all the speakers
who have informed us
04:59:14.260 --> 04:59:19.260
that they wish to speak at
this segment of the workshop.
04:59:20.270 --> 04:59:24.070
If anyone listening would
like to provide additional input
04:59:24.070 --> 04:59:26.560
or comments after the workshop,
04:59:26.560 --> 04:59:29.370
they submit written
comments on a docket card
04:59:29.370 --> 04:59:32.390
for this proceeding which can be found
04:59:32.390 --> 04:59:37.390
on the Commission's
website @cpuc.ca.gov.
04:59:39.760 --> 04:59:43.640
If you need assistance with
providing additional comments,
04:59:43.640 --> 04:59:47.773
please contact the Commission's
Public Advisors Office.
04:59:49.090 --> 04:59:51.350
In addition, we will be conducting
04:59:51.350 --> 04:59:56.350
a public participation hearing
beginning at 5:30pm today,
04:59:56.770 --> 04:59:59.140
where you or any member of the public
04:59:59.140 --> 05:00:00.510
will also have an opportunity
05:00:00.510 --> 05:00:02.693
to speak regarding this proceeding.
05:00:03.870 --> 05:00:06.870
To participate in that
public participation hearing,
05:00:06.870 --> 05:00:08.470
you are going to call the same number
05:00:08.470 --> 05:00:10.890
that we were using for public comments
05:00:10.890 --> 05:00:15.280
for this workshop and that
phone number is 800-857-1917
05:00:19.410 --> 05:00:24.323
and press the access code 721384.
05:00:25.280 --> 05:00:29.330
And after you call in, you
must then press star one
05:00:29.330 --> 05:00:32.833
and you'll be placed in line to speak.
05:00:34.770 --> 05:00:36.650
Before we end Commissioner Guzman Aceves
05:00:36.650 --> 05:00:38.850
would you like to make
any closing comments?
05:00:42.470 --> 05:00:44.370
Thank you, Judge Rosinski.
05:00:44.370 --> 05:00:48.710
No, I look forward to any
additional public comments later
05:00:48.710 --> 05:00:52.030
this evening and I
really just wanna thank
05:00:52.030 --> 05:00:55.290
and appreciate all
of the speakers today,
05:00:55.290 --> 05:00:56.830
including the applicant,
05:00:56.830 --> 05:00:58.650
the parties and most importantly
05:00:58.650 --> 05:01:02.230
the local government
representatives and some
05:01:02.230 --> 05:01:06.700
of the professional policy
thinkers that we had as well.
05:01:06.700 --> 05:01:11.120
So I really appreciate
everyone's work and particularly all
05:01:11.120 --> 05:01:15.510
the staffs work in
getting everyone how all
05:01:15.510 --> 05:01:18.000
the logistics worked out,
we obviously had a couple
05:01:18.000 --> 05:01:23.000
of false emergencies today
so thank you for working
05:01:23.210 --> 05:01:26.610
through those and I look
forward to checking back
05:01:26.610 --> 05:01:29.920
in a little bit, thank you.
05:01:29.920 --> 05:01:32.830
Good, thank you
Commissioner Guzman Aceves.
05:01:32.830 --> 05:01:35.917
Operator before I close this proceeding
05:01:35.917 --> 05:01:37.253
has anyone else called in?
05:01:49.535 --> 05:01:51.800
Operator, has anyone else called in?
05:01:51.800 --> 05:01:53.260
Your Honor this
is Robert Stanford,
05:01:53.260 --> 05:01:55.540
no one else has called in at this time.
05:01:55.540 --> 05:01:57.340
Okay, very good,
thank you Robert.
05:01:58.200 --> 05:02:01.040
That concludes this public workshop.
05:02:01.040 --> 05:02:03.580
Thank you all for your participation
05:02:03.580 --> 05:02:04.973
and we are off the record.