1 (images courtesy shorpy.com) Telecommunications Attorney - - PowerPoint PPT Presentation

• Rural Health Care Program
• Healthcare Connect Fund

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Telecommunications Attorney  Specialty in Public/Private Partnerships and Federal

Funding for Rural Broadband

 Former Director at USAC of the FCC’s Rural Health Care

Pilot Program

8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 What is

• Universal Service
• The Rural Health Care

Program

• The Pilot Program
• The Healthcare

Connect Fund

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 $8.1 billion in 2011

 Surcharge on interstate telecommunications

 Purposes

 Equal access to telecommunications for rural and low income Americans  Access to advanced services (i.e., broadband) for Schools, Libraries, and Rural Health Care providers

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• High Cost (Connect America) = $4.03 billion
• Low Income = $1.75 billion
• Schools & Libraries = $2.23 billion
• Rural Health Care = $81.5 million

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Primary Program

• Up to $400 million annually
• Funds “urban-rural” difference
• Historically undersubscribed

 Key Dates

• 2004

 Internet Access Program

• 2006-2007

 Pilot Program launched

• 2010

 NPRM  GAO Report

• 2012

 FCC Staff Report  Healthcare Connect Fund

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

CURRENT NEW

 Telecommunications

(urban/rural difference)

 Internet Access Support  Pilot Program - Networks  $400 million annual cap

• $81.5 million disbursed in

2011 ($49 million in 2008)

 No change  Healthcare Connect Fund

(HCF)

• Broadband
• Networks

 Program cap unchanged

8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Post-secondary educational

institution offering health care instruction

 Community health center or

health center providing health care to migrants

 Local health department or

agency

 Community mental health center  Not-for-profit hospital  Rural health clinic; or  Consortium of the above

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Funding Networks

• $417 million – 3 years
• 69 state/regional

networks

• 50 complete or in-

progress

 85% flat subsidy

• Urban HCPs in consortia
• Recurring services
• Network Equipment
• Long-term leases & IRUs
• Construction

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Challenges

• New open-ended rules
• No support for

administrative costs

• Establishing networks

is difficult

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Many Approaches

• Leasing services only

 Single-carrier  Multi-carrier

• Facilities & Equipment

 Owning equipment  Leasing facilities  Constructing facilities

• Network Management

 Carrier managed  Neutral third-party managed  HCP managed

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Lessons Learned

• Consortia are more

efficient

 More bidders; more competition  Lower prices; better service  Stimulated broadband investment/deployment  Less burdensome for individual HCPs

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

PILOT HCF

 85% flat rate  Urban HCPs eligible if in

network with some rural

 Networks only  $417 million over 3-6 years  65% flat rate  Urban HCPs eligible if in

network with majority rural

 Networks and single HCPs  $150 million each year  $50 million over 3 years for

skilled nursing facilities

8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Unanswered

questions

• New eligible entity

types?

• Equipment?
• Network Operations

Centers?

• Data centers?
• Migration/transition
• New network

application process

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8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Consortia: Strength in

Numbers

 Devil in the details:

170 page order

 Performance

measures: how to measure success?

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