IP Transition Montana Telecommunications Association Annual Meeting

1. IP TransitionMontana Telecommunications AssociationAnnual Meeting Glenn S. Richards, PartnerPillsbury Winthrop Shaw Pittman LLPPhone: 202.663.8215 glenn.richards@pillsburylaw.com August 6, 2013

2. Pillsbury Overview • With more than 630 attorneys, Pillsbury is a full-service firm with market-leading strengths in the communications, technology, intellectual property, corporate, energy, financial services and real estate sectors. • Our attorneys are strategically located in 14 offices to serve clients in and outside the United States. • The Pillsbury communications practice started in 1934 and today represents service providers and investors in all sectors of the industry, including broadcasting, satellite , wireline, wireless and Internet communications.

3. VON Coalition • VON is a trade association formed in 1996 by Jeff Pulver • Purpose is to educate legislators, regulators and other policymakers about the benefits on Internet communications • Internet communications have transformed the way we communicate – converging voice, video, data and text to offer new services and applications • VON believes regulators should refrain from applying traditional telephone regulations that could stall consumer benefits and innovation, while industry and government find new ways to address important consumer protection and public safety concerns

4. What is the IP transition? In December 2012, FCC Chairman Genachowski establishes the Technology Transitions Policy Task Force to provide recommendations related to three ongoing transitions: Evolution of networks from TDM to IP. Use of fiber for network infrastructure. Shift from wireline to wireless services. Sunset the PSTN by 2018????

5. What’s driving the IP transition? • Access to broadband • Cheaper transport and storage • Smartphones and tablets • Cloud based services • Growing acceptance of new technologies, including over the top services and applications • In Montana, according to the FCC ,there are 103,000 VoIP lines (out of 440,000 total access lines). About 75% are residential. None are provided by ILECs . There are 48 reported VoIP providers in Montana (data as of 6/30/12).

6. How do we get there? Changes to Universal Service and inter-carrier compensation Goal was to facilitate transition to IP networks Expand USF to include broadband as a supported service Contribution methodology reform unresolved More spectrum for wireless broadband (licensed and unlicensed) AT&T IP trials/retirement of copper facilities Verizon Fire Island debate E-rate reform to promote greater network capacity and broadband speeds in schools and libraries Next generation 911 VoIP numbering trials and NPRM

7. Challenges Not yet 100 percent availability and adoption of broadband What happens to those not using IP networks? What regulations are needed, if any, for next generation networks? What is the role of the states? What happens to CLECs and others that rely on existing network infrastructure to provide their services? Phone numbers v. IP addresses IP interconnection/inter-carrier compensation

8. Q&A