"When it comes to JSI's activities and accomplishments, don't just take our word for it. JSI is always active - working with clients ... debating policy proposals in association and industry forums ... meeting with FCC and PUC staff on regulatory initiatives ... providing testimony in federal and state proceedings ... the list goes on. Frequently, the efforts of our staff, win or lose, elicits response from our clients and other industry partners. So, like we say, don't just take our word; here's what some of our clients and friends have to say ...."
-- Manny Staurulakis, president; and Leo Staurulakis, EVP
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FCC's NPRM on USF and ICC
In addition to filing our own comments in response to the FCC's NPRM on universal service and intercarrier compensation reform, JSI has been active in helping individual clients file their own responses, preparing and conducting ex parte presentations before the FCC, and offering detailed review and analysis of key developments. Following are several examples:
Hill Country Comments
One notable client we assisted was Hill Country Telephone Cooperative, which used data from its "impact" analysis and seven-year financial projections. Hill Country's data showed that if the FCC were to adopt the proposals in the NRPM, the cooperative would fail to meet its CoBank loan covenants in 2012 and, as a result, was reconsidering accepting a $12 million award from the RUS BIP program, more than $3 million of which is in the form of a 25-year RUS loan. The Texas cooperative also estimated that it would have to eliminate 35 percent of its current workforce: "These are real people with real families.... As one of the largest employers in the area, such a drastic reduction in workforce will have very real impacts on our community as those cost cutting measures trickle down into the local economy, causing further job loss." Hill Country concluded by urging the FCC to ensure that any transition is long enough to enable rural LECs to avoid defaulting on their loan agreements: "It would be a shame if the reforms adopted by the FCC in association with its National Broadband Plan actually cause existing broadband customers to lose broadband services."
Hill Country General Manager Delbert Wilson, one of the industry's most active spokesmen in the advocacy effort, responded to JSI Vice President John Kuykendall to say how well he thought the comments went and to express his appreciation for the work of all involved: "Thank you, John, these are great! Proceed with filing. I really appreciate everyone's efforts ... these are just what I wanted." Delbert emphasized that the comments read "just like a conversation," similar to the ex parte meeting Hill Country had with FCC staff earlier this year. He complimented the JSI "team" for its fantastic job, doing "just what I wanted."
Delbert also singled out one of our Texas staff members for his contribution to the effort: "Wes (Robinson), I think the comments are great. I could read this as a speech. If you see anything else, let's discuss, but ... these are bold just like I wanted."
BEK ex parte
Another client JSI worked with was BEK Communications Cooperative in North Dakota. BEK CEO Derrick Bulawa let JSI's Steve Meltzer and John Kuykendall know of his reaction to the co-op's ex parte presentation at the FCC in Washington by informing them of an email he received from a friend and South Dakota colleague: "Derrick, I just finished reading every word of your recent ... presentation at the FCC. I hope it was well received by the commission - I thought (it was) excellent. Kudos to you and anyone else who helped put it together. With your permission, I will probably lift parts of your verbiage for some of my future presentations."
Derrick concluded by telling Steve and John, "Great job to all ... it couldn't happen if we all didn't believe in our position."
Star response to JSI coverage
Following JSI's e-lert report on the FCC's open meeting this past February in which all five commissioners voted in favor of the USF/ICC NPRM, Star Telephone Membership Corporation EVP Lyman Horne sent Senior Communications Consultant Brenda Cordwell a heart-felt email response about the dangerous direction he saw the FCC's policy making taking: "Thanks so much, Brenda, for the heads-up and the good work JSI is doing on behalf of the rural telcos." Lyman, an outspoken rural advocate who has shared his convictions with NTCA, his state associations, and local (Clinton, NC) newspapers, articulated clearly his opposition to the FCC chairman's oft-repeated charges against the USF program and the support dollars Congress has earmarked to recover the high costs community based providers incur in making "comparable and affordable telecom service" available to rural citizens. "Sorry for the rant," the Star executive concluded, "but with such inaccuracies and finger pointing at the industry, it's no surprise we saw a 5-0 vote."
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RLETS Tariff Development
Over the last year, the issue of restricted local exchange telephone service (RLETS) has generated a lot of interest among JSI clients. In a sentence, RLETS is an offering in which an access line has limited calling capabilities and, therefore, can be offered at a less expensive rate than a traditional landline. Carriers are bundling RLETS with high-speed DSL Internet access to compete with cable providers that offer broadband services without requiring customers to order and pay for a phone line. Since the NECA rates for data-only DSL services are still much higher than those for voice and data DSL offerings, ILECs may have a better chance of competing with other providers if they sell voice and data DSL through RLETS. Accordingly, many ILECs are considering this service offering as a way to retain access lines.
Meeting the requirements, however, can be tricky. Moreover, in light of the fact that the local loop is generally regulated by a PSC, it is essential for a company to investigate whether the state where they want to offer this service has rules or regulations that affect its ability to offer RLETS, and whether the service should be tariffed. According to a NECA white paper, telephone lines used for the provisioning of RLETS can be included in the access-line count associated with cost-study recovery and USF high-cost support, if such lines meet all other state and federal requirements.
JSI has worked with a number of clients to determine whether a RLETS offering would make sense for them, as well as prepare tariff filings to implement the service. One of those companies, ITS, responded enthusiastically after Ken Cartmell's developed an RLETS tariff for the company that won Florida PSC approval. In response, ITS's Donna Martell wrote, "Congratulations, Ken, you have done the impossible. Thank you again for all the efforts you have made for our company."
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Successful ARRA Award Application
JSI worked with several clients that made successful application for RUS broadband stimulus funds in Round 2 of the ARRA process, and company representatives wrote to acknowledge their appreciation:
"Thank you, John (Kuykendall), and congrats to JSI also, as they are our partner in this! We could not have done our application without the expertise of your team ... we are truly grateful for your help. ... I know that we will be turning to all of you during the course of this process for assistance."
"Team: As you have heard by now, (our company) is a recipient of the ARRA stimulus funding. I want to thank you for your valuable contributions to our application to make this a reality for (us)."
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Favorable Tax Court Ruling
A client's attorney called attention to JSI's Douglas Meredith's help with a case. The state tax court reversed a ruling that the client company was subject to utility receipts taxes on SLC and FUSC recovery, as well as on distributions received through federal and state "subsidy" programs:
".... thought you might be interested to see the Tax Court's opinion in the [client's] case in which Douglas (Meredith) was our expert witness in January. The judge ruled in our favor on all issues, and it is clear to me that having Douglas' testimony was important in achieving this outcome .... The State is likely to try to appeal this decision, and therefore it is not final at this point. However, we cleared a big hurdle when we were able to get the Tax Court to rule for us. Thanks for your help."
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Appreciation for Regulatory Management
In our Texas office, several Oklahoma clients took the time to pass on their particular thanks to Craig Cook and the staff for their efforts helping them stay abreast of various regulatory and industry developments:
"I just want to say thank you. There is so much going on in the industry; I couldn't survive without your help. Just wanted to say, ‘Thanks a million," - I appreciate you and all that you do."
"Craig, thanks for staying current with all these events happening in Oklahoma and especially for helping me understand and make it through these issues with your advice and insight. Not sure how things will continue to proceed, but with the elections coming up before too long it could change everything... I am not sure if that will be bad or good but will hope whatever the outcome we will get the best results."
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Regulatory Filings
Following JSI's assistance in filing a variety of regulatory applications and reports, a client supervisor emailed the Regulatory Division: "I wanted to express my appreciation for Marty's (Kluh) assistance in our Maryland and Pennsylvania applications. She is OUTSTANDING!!!!! She is absolutely GREAT. She is responsive, accurate, thorough, etc., and FAST. We would not have been able to complete this massive workload without her assistance. You have a STELLAR employee!!!! Thanks again!!!"
