PUBLIC VERSION CONFIDENTIAL INFORMATION REDACTED · variety of technologies (both terrestrial and...

PUBLIC VERSION

CONFIDENTIAL INFORMATION REDACTED

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BEFORE THE PUBLIC UTILITY COMMISSION OF OREGON

UM 1970

In the Matter of Application of Viasat Carrier Services, Inc. for Designation as an Eligible Telecommunications Carrier and Eligible Telecommunications Provider to Receive Connect America Fund Phase II Funds

AMENDED APPLICATION OF VIASAT CARRIER SERVICES, INC. FOR LIMITED

DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER AND ELIGIBLE TELECOMMUNICATIONS PROVIDER TO RECEIVE CONNECT AMERICA FUND PHASE II

FUNDS

Viasat Carrier Services, Inc. (“Viasat” or the “Company”) pursuant to section 214(e)(2) of

the Communications Act of 1934, as amended (the “Act”),1 Sections 54.201 and 54.2022 of the rules

and regulations of the Federal Communications Commission ("FCC"), in accordance with the Public

Utility Commission of Oregon’s (“Commission”) requirements as set forth in Order No. 15-382 in

Docket UM 1648,3 and after discussion with Commission Staff and the Citizens Utility Board, hereby

submits this Amended Application for Designation as an Eligible Telecommunications Carrier ("ETC")

and an Eligible Telecommunications Provider (“ETP”). Viasat’s parent company, Viasat, Inc. (“VSI”),

was selected as a winning bidder for 291 Census Block Groups in Oregon4 under the FCC's Connect

1 47 U.S.C. § 214(e)(2), 2 47 C.F.R §§ 54.201 and 54.202. 3 Public Utility Commission of Oregon Staff Investigation into Eligible Communications Carrier Requirements, Docket UM 1648, Order No. 15-382 (Dec. 1, 2015) ("Oregon ETC Order"). 4 Connect America Fund Phase II Auction (Auction 903) Closes Winning Bidder Announced FCC Form 683 Due October 15, 2018, AU Docket No. 17-182, WC Docket No. 10-90, Public Notice, DA 18-887, (rel. Aug. 28, 2018) (“Auction 903 Results Notice”), Attachment A at 10; see also https://auctiondata.fcc.gov/public/projects/auction903/reports/all_assigned_census_blocks (listing winning bidders).

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America Fund Phase II Auction (Auction 903) (the “CAF II Auction”).5 Viasat seeks designation only

in the Census Blocks for which it was awarded funding from the CAF II Auction, as identified in

Exhibit A (a map depicting the census blocks is provided in Exhibit B).

Viasat’s receipt of CAF II Auction funding is conditioned upon ViaSat obtaining designation

as an ETC in the eligible Census Blocks by February 25, 2019.6 Accordingly, on February 25, 2019,

Viasat filed with the FCC a Petition for Waiver of the February 25, 2019 deadline. Viasat requested

a 120-day extension of the deadline to provide additional time for the Commission to consider

Viasat’s Application.

Section 214(e)(2) of the Act authorizes the Commission to designate a company that meets

the requirements of 47 U.S.C. § 214(e)(1), such as Viasat, as an ETC. In the Oregon ETC Order,

the Commission adopted updated guidelines for companies seeking ETC designation in Oregon “to

enable the Commission to acquire the data it needs to fulfill its oversight role and protect the

public interest, while addressing the burdens of compliance on service providers."7 As

demonstrated in this Amended Application, Viasat meets all state and federal requirements for ETC

and ETP designation, and, as shown by the description herein of Viasat’s planned voice and

broadband deployment projects, designating Viasat as an ETC and ETP in the proposed areas would

advance the goals of universal service and is in the public interest.

In support of this Amended Application, Viasat states as follows: I. BACKGROUND

Viasat is a Delaware corporation headquartered at 6155 El Camino Real, Carlsbad, California

92009. Viasat filed a registration with the Oregon Secretary of State to qualify to do business in

Oregon as a foreign corporation and received Registry Number 1480734-97. Viasat is a wholly-

5 See Connect America Fund Phase II Auction Scheduled for July 24, 2018; Notice and Filing Requirements and Other Procedures for Auction 903, Public Notice, FCC 18-6, 33 FCC Rcd 1428 (2018) (“Auction 903 Procedures Public Notice”). 6 Auction 903 Results Notice fn. 11. 7 Oregon ETC Order, at 6 (quoting Order No. 14-198 at 6 (Jun 5, 2014)).

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owned subsidiary of VSI, a Delaware corporation also headquartered at 6155 El Camino Real,

Carlsbad, California 92009. Viasat will outsource technical, billing, installation, and customer service

matters to VSI as doing so is more efficient and cost-effective than creating duplicative functions.

Viasat will also rely on the significant managerial and technical expertise of VSI.

Viasat’s parent company, VSI, is an innovator in broadband technologies and services. VSI’s

end-to-end platform of high-capacity Ka-band satellites, ground infrastructure and user terminals enables

VSI to provide cost-effective, high-speed, high-quality broadband solutions to enterprises, consumers

and government users around the globe. In addition, VSI develops and provides advanced wireless

communications systems, secure networking systems and cybersecurity and information assurance

products and services. VSI’s satellite networks support broadband Internet access, video streaming, and

voice over IP (“VoIP”), among other applications. VSI provides broadband and VoIP services to

customers in all fifty states and the District of Columbia. VSI has previously deployed several consumer

broadband networks, starting with the WildBlue-1 network, which was deployed in 2005 and has

operated continuously since that time. In 2011, VSI deployed the ViaSat-1 satellite network, which VSI

has used to provide high-speed, high-quality broadband services to consumers and other end users. In

2017, VSI deployed the ViaSat-2 satellite network, which commenced service in April 2018. In addition,

VSI has a new satellite under construction and ready for launch in the 2020 timeframe, ViaSat-3, which

will allow Viasat to offer even higher speeds of broadband service and more capacity than ViaSat-2.

VSI’s satellite networks utilize geostationary-satellite orbit (“GSO”) satellite technologies. Last-

mile connectivity is provided to end users through GSO user terminals that communicate directly with

VSI’s satellites. VSI’s satellites also connect to satellite access nodes (“SANs”) that are located on the

ground and interconnect with the Internet, PSTN, and other terrestrial networks using leased fiber.

II. COMMUNICATIONS AND CORRESPONDENCE

Pleadings, orders, notices, or other correspondence and communications regarding this

Amended Application should be provided to:

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Jason Sophinos Associate General Counsel ViaSat, Inc. 349 Inverness Drive South Englewood, CO 80112 Tel: 720-493-6365 Email: [email protected]

With a copy to:

Timothy C. Nash Kutak Rock, LLP 8601 North Scottsdale Road Suite 300 Scottsdale, AZ 85253-2738 Tel: 480-429-4882 Email: [email protected]

And

Michael P. Donahue Linda G. McReynolds Marashlian & Donahue, PLLC 1420 Spring Hill Road, Suite 401 Tysons, VA 22102 Tel: 703-714-1319 Fax: 703-563-6222 E-Mail: [email protected] [email protected]

III. VIASAT’S PROPOSED PARTICIPATION IN THE FCC'S CAF II AUCTION

A. Background on the CAF II Auction

On January 31, 2018, the FCC issued an Order on Reconsideration concerning its Connect

America Fund initiative, which enabled the FCC to move forward with the CAF II Auction, in which

service providers competed to receive up to $1.98 billion to offer voice and broadband service in

unserved high-cost areas.8 That Order followed a series of orders establishing the details of the CAF

II Auction.9 Under this program the FCC will disburse up to $198 million annually for providers—

8 Connect America Fund, et al., Order on Reconsideration, 33 FCC Rcd 1380 (2018). 9 See, e.g., Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 5949 (2016) (“Phase II Auction Order”); Connect America Fund, et al., Report and Order and Order on Reconsideration, 32 FCC Rcd 1624 (2017) (“Phase II Auction FNPRM Order”); Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011) (“USF/ICC Transformation Order”).

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including competitive providers such as competitive local exchange carriers, cable operators, fixed

wireless ISPs, satellite broadband, or alternative providers such as electric utilities and governmental

entities— to deploy broadband networks in high-cost, unserved price cap areas.

B. Visat’s Selection as a Winning Bidder

The FCC’s August 28, 2018 Auction 903 Results Notice announced that VSI was among the

winners of the recently-concluded CAF II Auction.10 Specifically, the FCC designated VSI as a winning

bidder in 291 Census Block Groups in Oregon, eligible to receive $10,254,463.50 over the next ten

years to bring high-quality, innovative voice and broadband services to almost 10,000 households and

small businesses in underserved portions of Oregon. In accordance with the FCC’s procedures,11 VSI

assigned its winning bid to Viasat. In order for Viasat to receive the CAF II Auction support that it has

been awarded, it must demonstrate to the FCC that it has been designated as an ETC in the areas

where it was the winning bidder. The FCC’s deadline for submitting proof of the ETC designation is

February 25, 2019.12 To date, Arizona, Colorado, Georgia, Idaho, Kentucky, Louisiana, Maine,

Montana, New Mexico, Utah, Washington, Wisconsin, and Wyoming have approved Viasat’s

designation as an ETC and Alabama, California, Florida and West Virginia have deferred to the

FCC.13

On February 25, 2019, Viasat filed with the FCC a Petition for Waiver of the February 25, 2019

deadline. Viasat requested a 120-day extension of the deadline to provide additional time for the

Commission to consider Viasat’s Application. Because the timeframe for Viasat to obtain ETC

designation is short and the consequences of failure to do so are severe, Viasat respectfully requests

that the Commission review this Amended Application promptly and grant Viasat ETC designation in

the Census Blocks identified in this Amended Application on an expedited basis.

10 Auction 903 Results Notice, Attachment A at 10. 11 See Auction 903 Procedures Public Notice, para. 37. 12 Auction 903 Results Notice, para. 15, n. 11 (“By February 25, 2019, the long-form applicant must obtain from all the relevant states or the Commission a high-cost ETC designation(s) that cover its winning bid areas and upload the required documentation and a certification letter to its FCC Form 683.”). 13 Viasat filed an application for ETC designation in these states with the FCC on February 19, 2019.

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IV. VIASAT AND ITS TECHNICAL QUALIFICATIONS

A. ViaSat’s Expertise and Experience

Viasat’s parent company, VSI, is a leading provider of communications solutions across a wide

variety of technologies (both terrestrial and satellite), and has played a significant role in expanding

the availability of broadband services across the country. Among other things, VSI has revolutionized

the satellite industry by reducing the “cost per bit” of delivering broadband service. As a result, VSI

now provides high-quality broadband service to end users, and affords millions of Americans—

including in rural and “high-cost” areas—an effective competitive alternative to wired and wireless

terrestrial services, which rely on infrastructure that is often less cost-effective.

Viasat is qualified to meet applicable CAF II obligations given VSI’s proven track record of

technical and commercial success operating as a provider of satellite broadband services and

associated equipment. VSI’s technical qualifications have been reviewed by the FCC on numerous

occasions, and the favorable results of such reviews are reflected in the multiple FCC licenses and

authorizations granted to the company. VSI also holds a number of patents with respect to satellite

technology, which cover, among other things, user terminals and networking and demonstrate the

company’s commitment to the development of innovative network solutions. Viasat is proud to have

at its disposal VSI’s extensive staff of experienced engineers with expertise in the fields of

communications technology, hardware design, software development, data analytics, and

networking. This expertise made it possible for Viasat to confidently participate in the CAF II auction

with the certainty that the company will be able to fulfill its obligations.

Today, VSI serves customers in all fifty states, as well as the District of Columbia. These

customers include almost 600,000 residential customers for high-speed internet access and

approximately CONFIDENTIAL xxxxxx END CONFIDENTIAL who also subscribe to voice service.

In addition, VSI connects millions of personal electronic devices per month on aircraft that rely on

satellite broadband for connectivity to the Internet. VSI also has extensive experience managing the

technical and customer service-related issues associated with the provision of consumer broadband

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services. Notably, VSI monitors network performance on a 24/7 basis and has implemented

procedures to leverage its extensive engineering resources quickly and effectively.

B. Viasat’s Network Architecture

VSI will use GSO network architectures and technologies to provide CAF II-supported

services. The same supported services will be provided in all supported areas. As such, the network

description provided herein to each state in which supported service will be provided.

VSI currently provides GSO services using the ViaSat-1 and ViaSat-2 networks. VSI has also

been authorized to provide service to the United States using two additional GSO networks at the

79º W.L. and 88.9º W.L. orbital locations. The ability to operate satellites at either or both of those

locations, along with associated ground equipment, will allow Viasat to scale available capacity over

time in order to accommodate the demand for CAF II- supported services.

Each of Viasat’s satellite networks is comprised of three principal segments: (i) a space

segment consisting of communications links between Viasat’s satellites and associated ground

facilities (which in turn connect to Viasat’s terrestrial network); (ii) a terrestrial network consisting of

terrestrial data, management and control functions, and interconnection to the Internet; and (iii) a

user segment, consisting of links between Viasat’s satellites and the end user equipment.

1. Space Segment

The space segment consists of the communication links between VSI’s GSO satellites located

in space and gateway earth stations or SANs located on the ground. As noted above, VSI currently

provides consumer broadband service over two GSO satellites—ViaSat-1 and ViaSat-2. Together,

these satellites will allow Viasat to provide service to all supported areas. These satellites utilize Ka-

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band spectrum, and will provide capacity to facilitate the provision of supported services.

ViaSat-1 is a “bent-pipe” Ka-band satellite, which uses relatively small “spot beams”

that allow the efficient reuse of available spectrum resources. ViaSat-1 provides at

least 140 Gbit/s of total capacity. ViaSat-1 currently communicates with 17 gateway

earth stations. In addition to an antenna and associated radiofrequency (“RF”) and

baseband equipment, each gateway contains a fiber link back to a core node, where

data is further processed before connecting to the internet (as part of the terrestrial

network segment, described below).

ViaSat-2 is a newer satellite design than ViaSat-1. ViaSat-2 has a maximum potential

capacity of approximately 260 Gbit/s. ViaSat-2 has a unique design which allows

ViaSat to allocate capacity among spot beams based on demand. ViaSat-2 currently

communicates with 46 SANs. SANs are similar to gateway earth stations, except that

in the case of SANs certain equipment (and related functions) are essentially relocated

to the core node to increase operational efficiency.

As noted above, VSI has been authorized to provide service to the United States using two

additional GSO networks at the 79º W.L. and 88.9º W.L. orbital locations. Satellites operating at

these locations will allow Viasat to scale available capacity over time to accommodate additional

subscribers.

2. Terrestrial Network

The terrestrial network segment performs the transport, data processing, control, and

management functions for VSI’s GSO networks. The terrestrial network segment is physically

implemented using core nodes, fiber optic transport links, and public cloud computing centers.

The transport network physically connects each gateway and SAN with its

associated core node, and also connects the core nodes together to provide

redundant data paths. The transport network is based on leased fiber wavelengths

terminated into commercial off-the-shelf (“COTS”) switching and routing equipment.

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Viasat maintains several core nodes across the country, which: (i) serve as

aggregation points for data traffic routed through gateways and SANs; and (ii)

interconnect with the Internet, the PSTN, and other terrestrial networks through

leased fiber. The core nodes essentially operate as private data centers and use a

combination of proprietary and COTS applications.

Control and management functions (e.g., provisioning, accounting, billing, network

monitoring, and configuration management) are hosted in the public cloud. These functions utilize

a combination of proprietary software and customized COTS software products. Hosting these

functions in the public cloud allows them to be highly available and easily expandable.

CONFIDENTIAL Figure 1 shows the topology of the VSI’s terrestrial fiber backbone network.

CONFIDENTIAL

Figure 1: Viasat Fiber Back Bone Network

CONFIDENTIAL

3. User Segment

The user segment refers to the portion of the network that connects each individual user to

one or more of VSI’s GSO satellites and, therefore, the larger satellite network. It is the rough analog

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of the “last mile” in terrestrial wireline networks. Relevant equipment (other than the satellite itself)

includes the following:

The user terminal is the ground-based equipment employed by an individual user to

access the Viasat satellite network. The user terminal consists of an indoor unit (IDU),

outdoor unit (ODU), inter-facility link (IFL), and power supply (which are depicted in

the figure below).

Figure: Viasat User Terminals

The indoor unit (or IDU) performs client-side functions related to Internet access

(e.g., those related to use of transmission control protocol (TCP) and hypertext

transfer protocol (HTTP)), as well as certain signal conversion, modulation, and

amplification functions. The IDU also incorporates a WiFi router that can be accessed

by end users (and their communications devices) in the same manner as other WiFi

routers. The IDU interfaces with the ODU through the inter-facility link (described

below).

The outdoor unit (or ODU) performs certain signal conversion, modulation, and

amplification functions, and transmits signals to and receives signals from the

satellite. The ODU is typically mounted on a roof or a pole and interfaces with the

IDU through the inter-facility link (described below).

The inter-facility link (or IFL) is a 75 Ohm coaxial cable that carries the

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communications signal and electrical power between the IDU and ODU.

V. VIASAT MEETS THE STATE AND FEDERAL STATUTORY AND REGULATORY REQUIREMENTS FOR ETC AND ETP DESIGNATION

Viasat meets all applicable federal and state requirements for designation as an ETC in

Oregon, including, 47 U.S.C. § 214(e) and 47 C.F.R. § 54.201, et seq., and the Oregon ETC Order.

A. Viasat Meets All Federal Requirements For ETC Designation

Viasat meets all criteria for designation as an ETC under federal law. Specifically:

1) For purposes of this designation, Viasat will provide service on a common carrier

basis. Viasat currently provides broadband Internet access service and VoIP service. As to customers

and locations where Viasat is awarded CAF II Auction support, Viasat will provide its voice service on

a common carrier basis. As such, Viasat is a common carrier. (47 U.S.C. § 214(e)(1); 47 C.F.R. §

54.201(d));

2) VSI is a facilities-based satellite provider with its own fleet of satellites, earth stations,

gateways, switching facilities, and other associated facilities and, therefore, Viasat will offer the

supported services using its own facilities or a combination of its own facilities and resale of another

carrier's services (47 U.S.C. § 214(e)(1)(A); 47 C.F.R. § 54.201(d)(1)).

3) As required by 47 C.F.R. § 54.101, Viasat will offer the voice telephony and broadband

services supported by federal universal service support mechanisms, including the following

capabilities:

Voice Grade Access To The Public Switched Telephone Network – Viasat meets this

requirement through its provision of an interconnected VoIP service that includes minutes of

use for local service provided at no charge to end users (i.e., plans are generally unlimited

usage within the U.S.) and access to emergency services via 911 or E-911, wherever available

from local government or public safety organizations. Viasat will also provide toll limitation

services to qualifying low-income consumers as provided in the Commission’s Rules (47 C.F.R.

§ 54.101(a)(1)).

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Broadband Internet Access Services – Viasat’s broadband Internet access service provides

the capability to transmit data to and receive data by wire or radio from all or substantially

all Internet endpoints, including any capabilities that are incidental to and enable the

operation of the communications service (47 C.F.R. § 54.101(a)(2)).

Viasat commits to provide these services consistent with applicable high-cost universal service

support rules (47 C.F.R. § 54.101(c)). Viasat will also offer Lifeline service as required by the FCC’s

rules at all locations where it has been awarded support (47 C.F.R. § 54.101(d));

4) Viasat will offer voice telephony as a standalone service and at rates that are

reasonably comparable to urban rates.14 Viasat is currently considering rates in the range of $35.00

to the FCC urban rate benchmark, currently $51.61 for standalone voice service.

5) Viasat will advertise the availability of its universal service offerings and charges for

such offerings using media of general distribution (47 U.S.C. § 214(e)(1)(B); 47 C.F.R. §

54.201(d)(2)), namely through a combination of digital and traditional media, such as the Internet,

outbound Email, advertising via radio, newspapers, magazines or other print advertisements, outdoor

advertising, or direct marketing, and will also publicize the availability of Lifeline service in a manner

reasonably designed to reach those likely to qualify for the service (47 C.F.R. § 54.405(b));

6) Viasat will provide the supported services throughout the designated service area (47

U.S.C. § 214(e)(1); 47 C.F.R. § 54.201(d));

7) Viasat certifies that, in accordance with 47 U.S.C. § 254(e), it will use federal universal

service support only for the provision, maintenance, and upgrading of facilities and services for which

the support is intended.

8) Viasat further certifies that it meets all of the applicable requirements for designation

as an ETC15 under 47 C.F.R. § 54.202 as follows:

14 USF/ICC Transformation Order, 26 FCC Rcd at 17693, paras. 80-81; see also 47 C.F.R. § 54.101(b). 15 The FCC waived the requirement for a winning bidder to file a five-year plan (47 C.F.R. § 54.202(a)(1)(ii)) as part of the ETC designation process and to demonstrate that it will satisfy applicable consumer protection and service quality standings (47 C.F.R. § 54.202(a)(3)). WCB Reminds Connect America Fund Phase II

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Compliance With Applicable Service Requirements. Viasat certifies that it will comply with the

service requirements applicable to the support that it receives,16 including the requirements

of the CAF II Auction.

Ability to Remain Functional in Emergency Situations. VSI has been providing high speed

internet service to customers on 24 hours x 365 days a year mode for more than thirteen

years. As part of providing this commercial service, it is necessary to have in place

contingency plans for credible emergency situations for each of the major network facilities

that are geographically distributed across the United States. These plans contain activation,

required staffing, escalation, and communication procedures to deal with such

emergencies. Additionally, all the ground-based facilities are equipped with independent

power generators and sufficient fuel to operate for several days so as to mitigate power

outages. The design of these facilities contains multiple levels of redundancy and autonomy

that also mitigate the need for dedicated human interaction. Viasat plans to apply this

successful model for its CAF II Action services and customers.

B. Viasat Meets All State Requirements For ETC and ETP Designation

The Oregon ETC Order established guidelines for entities seeking ETC and ETP status in

Oregon, including a “checklist” of Initial Designation Requirements in Appendix A. As explained below,

Viasat meets all the Initial Designation Requirements as follows:

1. Information regarding applicant and its common carrier status

1.1. Name of entity requesting designation and corporate affiliation.

The entity requesting designation is Viasat Carrier Services, Inc. Viasat is a Delaware

corporation and a wholly-owned subsidiary of ViaSat, Inc.

1.2. Demonstration of the applicant’s common carrier status.

Applicants of the Process for Obtaining Federal Designation as an Eligible Telecommunications Carrier, WC Docket Nos. 09-197, 10-90, Public Notice, DA 18-714, at 4-5 (rel. July 10, 2018) (“FCC ETC Procedures Notice”). 16 47 C.F.R. § 54.202(a)(1)(i).

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Viasat is a newly-formed entity established for purposes of providing CAF II Auction supported

services to consumers in eligible Census Blocks in 20 states, including Oregon. For purposes of this

designation, Viasat will provide service on a common carrier basis. Viasat currently provides broadband

Internet access service and VoIP service. As to customers and locations where Viasat is awarded CAF

II Auction support, Viasat will provide its voice service on a common carrier basis. As such, Viasat is a

common carrier.

1.3. Description of the general types of services and geographic area for which the applicant is authorized in the state of Oregon.

See Section IV.A. Viasat seeks designation as an ETC to provide voice telephony (VoIP) and

broadband services in the locations identified in Exhibit A.

1.4. Demonstration that applicant is financially and technically capable of providing the supported services in compliance with FCC and Commission rules. Relevant considerations include whether applicant previously offered services to non-Lifeline customers, how long the applicant has been in business, whether the applicant intends to rely exclusively on universal service fund (USF) disbursements to operate, whether the applicant receives or will receive revenue from non-USF sources, and whether the applicant has been subject to enforcement action or ETC revocation proceedings in any other jurisdiction.

See Sections I, II, and IV. Viasat’s parent, VSI, provides broadband and VoIP services to

customers in all fifty states and the District of Columbia. VSI has previously deployed several consumer

broadband networks, starting with the WildBlue-1 network, which was deployed in 2005 and has operated

continuously since that time. In 2011, VSI deployed the ViaSat-1 satellite network, which VSI has used to

provide high-speed, high-quality broadband services to consumers and other end users. In 2017, VSI

deployed the ViaSat-2 satellite network, which commenced service in April 2018. In addition, VSI has a

new satellite under construction and ready for launch in the 2020 timeframe, ViaSat-3, which will allow

Viasat to offer even higher speeds of broadband service and more capacity than ViaSat-2.

The FCC required VSI to demonstrate that it has sufficient financial qualifications in order for VSI

to qualify as a bidder in the CAF II Auction.17 VSI is a publicly-traded company with more than $2 billion

17 Auction 903 Procedures Public Notice, 33 FCC Rcd 1428, para. 46.

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in revenue for the year ending March 31, 2019. VSI’s most recent SEC Form 10-K is available here

http://investors.viasat.com/static‐files/c9af6458‐5162‐48cf‐aba7‐f48e38be355a.

VSI will provide necessary funding to Viasat in addition to any CAF II Auction funding to facilitate

Viasat’s achievement of its service obligation milestones and ongoing operations. Accordingly, Viasat will

not rely exclusively on USF disbursement for its operations in Oregon or elsewhere and will have sufficient

financial capabilities to provide voice and broadband Internet access services throughout the territories in

which it seeks designation.

Neither VSI nor Viasat have been the subject of enforcement action or ETC revocation.

2. Type of federal universal service support for which designation is requested 2.1. For applicants awarded federal USF support conditional upon grant of ETC status: copies of relevant FCC documentation.

A copy of the Auction 903 Results Notice, including Attachment A identifying VSI as a winning

bidder for Census Block Groups in Oregon, is available here https://www.fcc.gov/document/connect-

america-auction-expand-broadband-713176-rural-locations. In accordance with the FCC’s

procedures,18 VSI assigned its winning bid to Viasat.

3. Commitment and ability to provide all supported services

3.1. Statement of commitment to offer supported Voice Telephony services and description of each element required in 47 CFR §54.101(a) (voice grade access to the public switched network or its functional equivalent, local usage, access to emergency services, and toll limitation services to qualifying low-income consumers if the applicant's proposed Lifeline service distinguishes between toll and non-toll calls in the pricing of the service). See Sections V.A.3. 3.2. Identification of any required supported Voice Telephony services that are not currently offered, and an explanation of when and how such services will be made available.

As described in Section V.A.3, Viasat will offer all required supported Voice Telephony services,

including a standalone voice service.

3.3. Identification and description of each of applicant's voice telephony local service

18 See Auction 903 Procedures Public Notice, para. 37.

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offerings (the name the plan is marketed under, the number of minutes and included calling area, and the price) within the proposed designated service area.

Viasat will only have one voice service; a VoIP offer that provides unlimited local, intrastate and

interstate calling anywhere within the US and Canada for a flat monthly rate. This service will be

available as an add-on to a broadband Internet access service or as a standalone service. Under the

FCC’s requirements, Viasat must price its CAF II-supported voice offer based on the FCC’s urban rate

survey benchmark. The FCC’s 2019 average urban monthly rate floor for voice services is $26.98/month

and the reasonable comparability benchmark, two standard deviations above the urban average, is

$51.61.19 Viasat’s current plan is to price its standalone voice offer between $35.00 and the FCC

benchmark per month. The add-on voice service will be offered at a lower price (VSI currently provides

voice for $19.99 for the first six months and $29.99 per month thereafter).

Viasat’s current proposed voice pricing is as follows:

Voice Service Minutes Unlimited local, intrastate and interstate calling within US and Canada Features Voicemail, call screening (caller ID, blocking, auto-forwarding, block and

auto-message), call forwarding, find me-follow me, call handling (do not disturb, ring phone)

Stand Alone Voice Service Monthly Service Fee FCC acceptable range for 2019: $26.98 - $51.61

Viasat proposed range: $35.00 - $51.61 Viasat proposed initial rate: CONFIDENTIAL xxxxxx CONFIDENTIAL

Standard Installation Fee

Stand-alone standard installation fee range: CONFIDENTIAL xxxxxx CONFIDENTIAL

Minimum service term

Stand-alone minimum service term range: CONFIDENTIAL XXXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXX CONFIDENTIAL

Voice Equipment Lease

CONFIDENTIAL XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXX XXXXXX CONFIDENTIAL

Add-on to Internet Voice Service Monthly Service Fee CONFIDENTIAL XXXXXXXXXXXXXXXXXXXX

XXXXXX 19 See Wireline Competition Bureau Announces Results of 2019 Urban Rate Survey for Fixed Voice and Broadband Services, Posting of Survey Data and Explanatory Notes, and Required Minimum Usage Allowances for ETCs Subject to Broadband Public Interest Obligations, Public Notice, WC Docket No. 10-90, DA 18-1280 (rel. Dec. 20, 2018) (available here https://docs.fcc.gov/public/attachments/DA-17-1093A1.pdf).

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XXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXX CONFIDENTIAL Standard Installation Fee

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CONFIDENTIAL XXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXX XXXXX XXXXXX XXXXXXXXXXXXXXXXX XXXXXXX XXXXXX XXXX XXXX XXXXX XXXX XXXX CONFIDENTIAL

Voice Equipment Lease

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Equipment Lease CONFIDENTIAL XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXX X XXXXXXXXXXXXXXXXXXXXXXXXX X XXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXX XXX XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX CONFIDENTIAL

Each year, the FCC conducts a survey of the fixed voice and broadband service rates offered to

consumers in urban areas. The FCC uses the survey data to determine the local voice rate floor and

reasonable comparability benchmarks for fixed voice and broadband rates for universal service

purposes. Because the FCC’s urban rate survey benchmark may change each year, Viasat’s pricing for

voice services may also change for new customers each year in accordance with these changed

requirements.

Viasat is currently conducting market research to determine the mix of services potential

customers would prefer and the terms upon which the services are offered. Viasat will make services

available based on customer demand in each market. As a result, Viasat has not yet determine specific

details of all of its rates and services to be offered under the CAF II program.

VSI currently incurs costs to activate each customer, including the costs of equipment and

installation of approximately CONFIDENTIAL XXXX XXXXXXX CONFIDENTIAL VSI recovers a

portion of these costs through installation fees, equipment rental fees or a combination. Viasat

anticipates that its costs to activate customers will be approximately the same. While the costs to

activate a standalone voice customer may be lower, Viasat will still need to install Internet access service

and associated equipment for the voice/VoIP service to function, with the associated costs. Viasat

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intends to use a portion of CAF II funding to offset some of these costs so Viasat customers in CAF II

areas may pay reduced installation or equipment charges compared to VSI customers in non-CAF II

areas. However, Viasat continues to analyze the market to determine the most attractive service offers

and pricing for consumers in Oregon. Viasat notes that the CAF II support is, on average, less than $9

per month per location in Oregon, which is not sufficient to cover all of Viasat’s activation costs. As a

result, Viasat may need to recover some of the activation costs from customer through installation fees,

equipment rental or a combination.

3.4 Description of broadband services to be offered, if such services must be provided as a condition for receiving USF support.

All of Viasat’s awards are for the Baseline tier. Under the FCC’s requirements, the Baseline

service tier requires that bidders commit to provide at least one service offering that provides at least

25 Mbps downstream and 3 Mbps upstream (25/3 Mbps) and a minimum usage allowance of 150 GB

per month, or that reflects the average usage of a majority of fixed broadband customers, whichever

is higher.20 The minimum monthly usage allowance for 2019 is 215 GB.21 As permitted by the FCC,22

Viasat may offer service plans with different speeds and/or usage caps depending on market and

consumer demand.

For a broadband service that provides 25 Mbps downstream and 3 Mbps upstream and offers a

monthly usage allowance of 200 GB per month, the FCC’s 2019 benchmark is $77.65.23 Viasat will not

20 Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, WC Docket Nos. 10‐90, 14‐58, 14‐259, FCC 16‐64, 31 FCC Rcd 5949, paras. 2, 24‐25 (2016) (available here https://docs.fcc.gov/public/attachments/FCC‐16‐64A1.pdf). See also Connect America Fund Phase II Auction Scheduled for July 24, 2018; Notice and Filing Requirements and Other Procedures for Auction 903, Public Notice, FCC 18‐6, 33 FCC Rcd 1428, para. 12 (2018) (available here https://docs.fcc.gov/public/attachments/FCC‐18‐6A1.pdf). 21 See Wireline Competition Bureau Announces Results of 2019 Urban Rate Survey for Fixed Voice and Broadband Services, Posting of Survey Data and Explanatory Notes, and Required Minimum Usage Allowances for ETCs Subject to Broadband Public Interest Obligations, Public Notice, WC Docket No. 10-90, DA 18-1280 (rel. Dec. 20, 2018) (available here https://docs.fcc.gov/public/attachments/DA-17-1093A1.pdf). 22 Connect America Fund Phase II Auction Scheduled for July 24, 2018; Notice and Filing Requirements and Other Procedures for Auction 903, Public Notice, FCC 18‐6, 33 FCC Rcd 1428, para. 13 (2018). 23 Id. Please see https://www.fcc.gov/general/urban-rate-survey-data-resources for additional information about these requirements.

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charge customers for data overage.

Viasat’s current proposed broadband service pricing is as follows:

Internet Access Service Minimum speeds

25 Mbps downstream and 3 Mbps upstream

Minimum usage allowance

FCC minimum for 2019: 215 GB

Monthly service rate

FCC max allowable rate for 2019 (25/3 Mbps and 200 GB): $77.65 Viasat proposed initial rate : $77.65


CONFIDENTIAL XXXXXXXXXX XXXXXX XXXX XXXXX XXXXX XXXXX XXXXX XXXX XXXXX XXXX XXXX XXXX XXX XXXXXX XXXXX CONFIDENTIAL

Upfront Fee Standard installation fee range: CONFIDENTIAL XXXXX CONFIDENTIAL Equipment Lease

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As noted, the FCC’s urban rate survey benchmark changes each year, so the price and data usage cap

may change from year-to-year. In such case, Viasat’s supported offers will change consistent with the

new requirements.

Viasat intends to use CAF II funding to reduce the per-location costs associated with the

provision of supported service in each state, including Oregon. For example, Viasat would use funding

to offset costs of acquisition of network capacity, provision and installation of CPE, and service delivery

functions. However, the CAF II support is, on average, less than $9 per month per location in Oregon

and is, therefore, not sufficient to cover all of these costs. As a result, Viasat may need to recover

some of the activation costs from customer through installation fees, equipment rental or a combination.

ETC funding is needed as the FCC identified the relevant Oregon census blocks as lacking broadband

service meeting the minimum CAF Phase II speed and latency requirements because of the high costs

associated with providing such services to these areas. The purpose of the CAF program is to provide

additional funding to enable companies such as Viasat to provide desperately needed broadband

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service at speeds, data usage levels and rates that are similar to urban areas to these challenging

locations.

Because the FCC’s required rate benchmark for CAF II-supported broadband services is already

well below the prices at which VSI provides service in non-CAF II areas, and the amount of CAF II

support Viasat will receive in Oregon is less than $9 per month per location, Viasat does not intend to

use CAF II support to further reduce the price of service in CAF II areas below the FCC benchmark. As

stated, the current FCC-required benchmark for a 25 Mbps/3 Mbps broadband Internet service with a

215 GB monthly usage cap is $77.65.

4. Identification and definition of proposed designated service area 4.1. Explicit identification of the proposed designated service area through: 4.1.1. Map showing boundaries of applicant's federally-licensed or state-certificated area within Oregon, or an explanation why such boundaries do not exist, and the boundaries of the requested designated service area. The map must also show the boundaries of the area for each geographic unit, e.g., wire center, census block, zip code, that will comprise the designated service area;

As a facilities-based satellite service provider, Viasat’s service area includes all of Oregon. The

Census Blocks in which Viasat seeks designation are identified in Exhibit A. A map of Viasat’s

requested designated service area in Oregon is attached hereto as Exhibit B.

4.1.2. Rationale for selection of the type of geographic unit to define the proposed designated service area;

The CAF II Auction identified specific Census Block Groups for which qualified bidders could bid

to obtain funding and provide service.24 The FCC awarded VSI funding as the winning bidder in 3,105

census blocks in 291 Census Block Groups in Oregon. These Census Blocks are identified in Exhibit

A. Accordingly, Viasat seeks ETC designation in the eligible census blocks within these Census Block

Groups.

4.1.3. Listing of each and every specific geographic unit, e.g., ILEC wire center (by ILEC name, wire center name and code), census block (by ID number), or zip code (by number), etc., that will be included in the designated service area, with identification of

24 See Auction 903 Procedures Public Notice, 33 FCC Rcd 1428, paras. 18-19.

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any units for which service will not be provided throughout;

See Exhibit A.

4.1.4. Identification of specific Tribal Lands (as defined in 47 C.F.R. § 54.5 or 47 C.F.R. § 54.400(e) as appropriate) included in proposed designated service area, if any.

The census blocks that contain Tribal Lands are identified with the names of the corresponding

Tribes in Exhibit C.

4.2. Commitment and ability to offer supported services throughout the proposed service area and to provide service to all requesting customers. See Section V.A.6. 4.2.1. Statement indicating whether all requesting customers in the proposed service area will be provided services for which USF support is to be received, e.g., voice and/or broadband, upon initial designation.

Viasat will provide the supported services throughout the CAF II Auction awarded service areas.

Viasat plans to offer multiple tiers of voice and broadband service in the eligible census blocks, including

tiers that are eligible for USF support. Thus, Viasat will, consistent with the CAF II requirements, offer

supported service tiers to customers in the eligible census blocks. However, not every customer may

desire or require a supported service and may, instead, wish to purchase a different service tier. For

example, VSI currently offers several plans in Oregon that include broadband speeds from 25 Mbps to

50 Mbps and data usage caps from 35 GB to 65 GB, with corresponding differences in price.

Viasat will not offer the supported services throughout the designated service area immediately

after designation. In addition to ETC designation, Viasat must meet other requirements before the

FCC releases funding. And, as explained below, Viasat must develop and complete certain operational

and system changes to implement CAF II services.

4.2.2. If applicant is unable to serve all customers in the proposed service area upon initial designation: 4.2.2.1. For each geographic unit in the proposed designated service area with less than full coverage, a description of the extent of coverage and percent of the population that applicant has the present ability to serve, and a public interest rationale for partial coverage.

The FCC has established performance and build-out standards pertaining to locations within

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census blocks. The FCC requires, as a condition of receiving CAF II Auction funds, that providers build

out to 40 percent of assigned homes and business within a state within three years of becoming

authorized to receive support. In each state, build-out must increase by 20 percent in each subsequent

year, to be complete by the end of the sixth year, with a possible exception of 5% of locations uncovered

by a state. Thus, the FCC requires full coverage of Viasat’s designated service area by the year 6

milestone. Viasat does not anticipate any inability to cover the census blocks to which Viasat committed

to cover in the CAF II Auction process. Over the course of the 10 year commitment period Viasat will

add capacity through new satellites to keep up with capacity requirements.

While VSI’s network can currently provide service to all of the awarded census blocks in Oregon,

additional network, back office and other modifications are necessary to enable the CAF II Baseline Tier

service to all locations. More specifically, in order to meet the FCC’s requirements for CAF II funding,

Viasat must reserve at least 215 GB/ month per CAF-eligible customer.

VSI’s satellites use spot-beam technology to serve a specific geographic area. That spot beam

shines like a flashlight on a specified location. The spot beam is equivalent to a terrestrial cable or pipe.

Only so many bits can traverse the spot-beam (pipe) at any particular time before there are too many

bits trying to go through the pipe. Broadband customers do not use a consistent amount throughout

the day. The speed a specific customer receives, and the amount of data the customer consumes all

factor into how many bits will traverse across the spot-beam for that particular customer. The required

CAF service levels predetermined the speed and data allowance that ETCs must provide customers.

Under the FCC’s current requirements the data allowance is 215 GB/ month and it is anticipated this

will be increased to unlimited within the next year or two. For Viasat to ensure that it meets these

service levels, and can continue to meet them for ten years, it must reserve the capacity in the spot-

beam (the space in the pipe) for all potential CAF customers. This will require a significant cost for

Viasat to meet its service obligations and provide the best experience to its customers. Essentially, CAF

funding is requiring Viasat to set aside a large reserve in its spot beam (the pipe) and not use that

capacity for potentially more profitable endeavors to ensure it has enough capacity to meet the CAF

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requirements.

4.2.2.2. Description of process that applicant will use to determine whether service can be provided to an individual when he/she inquires or makes a request for service.

When a customer makes an inquiry or request for service, Viasat will request that the customer

provides Viasat with his or her exact physical address. Viasat will create a tool that will allow Viasat to

determine what services are available for customers in that particular service area. The Viasat sales

agent can then use this information to advise the customer of what services are available in her or her

service area.

4.2.2.3. For Lifeline-only ETCs: Commitment to report to the Commission Staff the number of requests for service from potential eligible customers within the designated service area that could not be fulfilled due to lack of adequate service availability. The report must include each such customer's address and must be submitted on a semi-annual basis for the first two calendar years following ETC designation. Network facility owners must also report how they attempted to provide service to each potential customer.

Because Viasat is not seeking Lifeline-only ETC designation, this request is not applicable.

4.2.3. For wireless carriers only, commitment to make available coverage maps in accordance with CTIA-The Wireless Association's Consumer Code for Wireless Service at the point of sale and on the applicant's website upon designation.

Because Viasat is not a wireless carrier, this request is not applicable. 5. Types of facilities used to offer supported services 5.1. Description of types of network facilities currently used to provide service.

See Section IV.B. 5.2. If applicant resells network facilities of other carriers in the provision of supported services: 5.2.1. A general description of such facilities and the company that owns the facilities.

Viasat will utilize the facilities of its parent company, VSI. See Sections I, IV, and V.A.2. 5.2.2. Commitment to file notice to Commission in designation docket at least thirty days before adding or eliminating an underlying carrier.

Viasat agrees to provide notice to the Commission in the designation docket at least thirty days

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prior to adding or eliminating an underlying carrier.

5.2.3. Statement of whether the applicant qualifies for FCC forbearance as a reseller for Lifeline-only designation. If so, a copy of the FCC-approved compliance plan and the FCC order approving the compliance plan should be included in the application.

Viasat is not seeking Lifeline-only designation. In addition, VSI is a facilities-based satellite

provider with its own fleet of satellites, earth stations, gateways, switching facilities, and other

associated facilities and, therefore, Viasat will offer the supported services using its own facilities or a

combination of its own facilities and resale of another carrier's services. As a result, Viasat does not

require FCC forbearance as a reseller.

5.3. Map showing extent of current coverage and, explanation of the basis for depiction of coverage.

In general, VSI’s network currently provides service throughout Oregon, including the census

blocks awarded to Viasat. However, in order to enable the CAF II Baseline Tier service to all of the

locations within the awarded census blocks, Viasat must make additional network, back office and other

modifications to its systems.

5.4. Identification of service providers with which applicant has current and relevant resale or interconnection agreements.

Viasat does not require or utilize resale or interconnection agreements with any other provider. 6. Commitment to use support funds in accordance with FCC and Commission rules

Viasat certifies that, in accordance with 47 U.S.C. § 254(e), it will use federal universal service

support only for the provision, maintenance, and upgrading of facilities and services for which the

support is intended. Viasat commits to provide supported services consistent with applicable high-cost

universal service support rules.

6.1. Affidavit, signed by responsible corporate officer, certifying that universal service support funds received will be used only for the intended purposes. See attached Affidavit/Certification. 6.2. Certification that applicant will comply with the service requirements applicable to the support it receives, along with identification of such requirements by reference to specific FCC rules and relevant Orders.

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Viasat commits to comply with applicable high-cost and CAF II universal service support rules

as provided in the FCC rules (47 C.F.R. §§ 54.301-54.321) and CAF II Auction orders (Connect America

Fund Phase II Auction Scheduled for July 24, 2018; Notice and Filing Requirements and Other

Procedures for Auction 903, Public Notice, FCC 18-6, 33 FCC Rcd 1428 (2018); Connect America Fund,

et al., Order on Reconsideration, 33 FCC Rcd 1380 (2018); Connect America Fund et al., Report and

Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 5949 (2016); Connect America Fund,

et al., Report and Order and Order on Reconsideration, 32 FCC Rcd 1624 (2017); Connect America

Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011).

6.3. A five-year plan that describes with specificity proposed improvements or upgrades to applicant's network throughout its proposed service area, including estimates of the area and population that will be served as a result of the improvements. An applicant seeking designation only for the purposes of offering Lifeline services to low-income consumers is not required to submit such a five-year plan.

The FCC waived the requirement for a winning bidder to file a five-year plan as part of the ETC

designation process.25 To the extent necessary, Viasat requests the Commission also waive this

requirement. The FCC waived this obligation because it adopted other means to monitor winning

bidders’ use of CAF II funding. The FCC requires, as a condition of receiving CAF II Auction funds, that

providers build out to 40 percent of assigned homes and business within a state within three years of

becoming authorized to receive support. In each state, build-out must increase by 20 percent in each

subsequent year, to be complete by the end of the sixth year CAF recipients will be subject to other

measures to track deployment, “including annual reporting of service to geocoded locations and

certification of compliance with benchmark milestones.”26 The exact deployment schedule is to be

determined by the providers themselves, and the FCC has granted flexibility for providers to develop

the build-out plan based on “facts on the ground.”27 The Oregon locations for which support was

25 See WCB Reminds Connect America Fund Phase II Applicants of the Process for Obtaining Federal Designation as an Eligible Telecommunications Carrier, Public Notice, WC Docket Nos. 09-197, 10-90, 33 FCC Rcd 6696, at 4-5 (2018) (“FCC ETC Procedures Public Notice”). 26 Id. at 4. 27 Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 5949, para. 44 (2016).

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awarded to Viasat number almost 10,000 and are in over 3,000 census blocks scattered throughout

various parts of the state.

To achieve these build-out requirements, Viasat will leverage existing satellites, and VSI is

launching a new satellite that may be utilized to facilitate providing service in Oregon and elsewhere.

Viasat’s authorization will enable the network to be deployed well in advance of the FCC’s six-year build-

out deadline under the CAF II program rules.

Viasat does not have specific capital expenditures earmarked for a particular location, service

area, or state. Viasat does not need to install additional facilities in order to be able to provide service;

however, Viasat will be required to implement modifications to VSI’s existing back office (ordering,

customer care, billing) and other systems to address FCC and state commission CAF II and ETC

requirements. In addition, as stated, Viasat intends to use CAF support to offset the per-location costs

associated with the provision of supported service in Oregon. The largest of these per-location costs is

associated with acquisition of sufficient network capacity to ensure all locations can received the

required Baseline Tier of service.

7. Commitment to advertise high-cost non-Lifeline supported services throughout the service area 7.1. Statement of commitment to advertise supported services throughout the service area.

Viasat will advertise the availability of its universal service offerings and charges for such

offerings using media of general distribution, namely through a combination of digital and traditional

media, such as the Internet, outbound mail, advertising via radio, newspapers, magazines or other

print advertisements, outdoor advertising, or direct marketing, and will also publicize the availability of

Lifeline service in a manner reasonably designed to reach those likely to qualify for the service.

7.2. Brief description of advertising plans for supported services (excluding low-income service offerings).

See above response to Question 7.1.

8. Commitment to offer and advertise Lifeline and OTAP services

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8.1. Commitment to offer and advertise Lifeline and OTAP services throughout the designated service area.

Viasat will offer Lifeline and OTAP service as required by the FCC’s rules and OAR Chapter 860,

Division 33, at all locations where it has been awarded support. As stated in response to Question 7.1,

Viasat will also publicize the availability of Lifeline service in a manner reasonably designed to reach

those likely to qualify for the service.

8.2. Identification and description of specific service offerings that applicant will provide to qualifying Lifeline and OTAP customers (both on Tribal Lands and on non-Tribal Lands), including associated terms and conditions, applicable rates and charges, and the number of minutes provided in each plan.

Viasat has not yet developed the terms and conditions for its VoIP and broadband Internet

access service offers. Viasat will offer its services under the terms and conditions of the CAF II Auction,

FCC Lifeline Oregon and OTAP requirements. As stated in Section V.A.3., Viasat’s voice telephony

plan(s) will be based on its interconnected VoIP service that, in general, includes unlimited local and

interstate calling within the US. The rates for this service will be reasonably comparable to urban rates

for similar services.

Viasat will provide the same broadband and voice service offers to Lifeline customers that are

available to non-Lifeline subscribers at the same rates, terms, and conditions. However, Lifeline

subscribers will be eligible for the FCC’s $9.25 discount and the $3.50 OTAP discount for all qualifying

services, i.e., Lifeline voice subscribers can receive a discount of $12.75 on voice services. Lifeline

eligible customers on Tribal Lands will also be eligible for an additional $25.00 discount for qualifying

services.

8.2.1. For Lifeline services provided at no charge to the customer, applicant’s commitment to submit any proposed reductions in minutes, units or other material terms of Lifeline service offerings to the Commission at least 90 days prior to the proposed effective date. Proposed increases in minutes, units or other material terms of Lifeline service offerings must be submitted at least ten days before changes become effective. Once changes become effective, the revised service offerings must be filed in the designation docket within ten days.

For Lifeline services provided at no charge to the customers, Viasat commits to submit any

proposed reductions to the Commission at least 90 days prior to the proposed effective date.

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8.2.2. For Lifeline services provided at no charge to the customer, applicant's commitment to notify existing customers within ten days following an increase in the minutes, units, or other material terms of Lifeline service offerings and to permit existing customers to immediately subscribe to the increased service offering if the customer does not automatically receive the benefit.

For Lifeline services provided at no charge to the customer, Viasat commits to notify existing

customers within ten days following an increase in the minutes, units, or other material terms of Lifeline

service offerings and to permit existing customers to immediately subscribe to the increased service

offering if the customer does not automatically receive the benefit.

8.3. Description of advertising plans designed to reach the target low-income population that applicant will implement after designation.

See response to Question 7.1. 8.4. Request for designation as an Eligible Telecommunications Provider (ETP) to participate in the OTAP, and commitment to follow all OTAP and RSPF requirements.

Viasat will participate in the OTAP and comply with all OTAP and RSPF requirements. Viasat

plans to seek reimbursement from the RSPF in accordance with Oregon requirements. Accordingly,

Viasat seeks designation as an ETP in its CAF II-awarded census blocks.

8.5. Documentation showing the applicant's policies and procedures related to the training of third-party representatives and employees on Lifeline and/or OTAP requirements, as well as documentation showing internal quality control measures for actual applications received by the applicant.

Viasat has no current plans to utilize third-party representatives in connection with the CAF II

Auction services, including Lifeline services. Viasat has discussed the OTAP and RSPF requirements

with Commission staff and is implementing processes and procedures to ensure compliance with these

requirements. Viasat anticipates continuing to work with Commission staff to ensure that Viasat’s

internal policies and procedures meet Staff’s requirements.

8.6. Applicants will file all necessary information with the FCC to fulfill any and all requirements of the Commission under 47 C.F.R. § 54.401(d) after ETC designation is granted by the Commission.

Viasat will comply with the requirements of 47 C.F.R. § 54.401(d) after ETC designation is

granted by the Commission.

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9. Ability to remain functional in emergencies 9.1. Demonstration of ability to remain functional in emergencies specifically addressing: 9.1.1. Amount of backup power available.

VSI has been providing high-speed internet service to customers on 24 hours x 365 days a year

mode for more than thirteen years. As part of providing this commercial service, it is necessary to

have in place contingency plans for credible emergency situations for each of the major network

facilities that are geographically distributed across the United States. These plans contain activation,

required staffing, escalation, and communication procedures to deal with such

emergencies. Additionally, all the ground-based facilities are equipped with independent power

generators and sufficient fuel to operate for several days so as to mitigate power outages. The design

of these facilities contains multiple levels of redundancy and autonomy that also mitigate the need for

dedicated human interaction. Viasat plans to apply this successful model for its CAF II Action services

and customers.

9.1.2. Ability to reroute traffic around damaged facilities.

See response to Question 9.1.1. 9.1.3. Ability to manage traffic spikes during emergency periods.

See response to Question 9.1.1 9.2. Description of current status of E911 deployment and compliance; if full deployment has not been attained, describe plans to achieve full deployment

Viasat will rely on VSI’s existing 911 capabilities. VSI provides 911 services to all of its United

States based voice customers. This is accomplished by routing 911 calls to a PSAP (public-safety

answering point) based upon a customer’s ANI (automated number identification) and transported

through a wireline 911 network. The PSAP, designated state default answering point, or emergency

authority is able to identify the voice caller’s primary registered location through an ALI (automated

location information) database.

VSI obtains physical location from each customer as part of the voice ordering process. During

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order entry, customer care agents ask the customer to provide their 911 address, making the distinction

between service address, specifically asking customers in the event of an emergency which address is

associated with their voice number for emergency services to respond to. Customers are also provided

contact information at the time of installation to understand how they can update address information.

As part of order entry, an automated real time verification of the address is performed by a third party

against the MSAG (master street address guide). Within 2 business days a final detailed verification is

performed by another third party agency, Intrado, to ensure service addresses are valid for emergency

services to respond to. At any point where a discrepancy is found, customers are contacted to update

street address information for 911 services.

9.3. Commitment to comply with Oregon's 9-1-1 emergency reporting system tax requirements, currently ORS 403.200 to ORS 403.230.

Viasat commits to comply with Oregon’s 9-1-1 emergency reporting system tax requirements

as set forth in ORS 403.200 to ORS 403.230.

10. Commitment to meet service quality and consumer protection standards

The FCC waived the requirement for a winning bidder to demonstrate that it will satisfy

applicable consumer protection and service quality standards. See FCC ETC Procedures Notice, DA 18-

714, at 4-5; see also Connect America Fund, et al., ETCs Annual Reports and Certifications, WC Docket

Nos. 10-90, 14-58, Report and Order, 32 FCC Rcd 5944, 5944-5948, paras. 3-14 (2017). Specifically,

the FCC found that because ETCs “have an independent obligation to comply with all applicable service

quality standards and consumer protection rules,” certification of compliance is not necessary.

Nonetheless, Viasat commits to comply with applicable high-cost and CAF II Auction rules, as well as

state regulations. In this regard, Viasat will list the Commission's Consumer Services contact

information in Viasat's Terms of Service and cooperate in good faith with the Commission’s Consumer

Services Section to resolve customer issues or disputes.

10.1. Commitment to specific, objective measures for service quality and consumer protection, e.g., the CTIA Consumer Code for wireless carriers or the applicable Commission rules for wireline carriers.

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See response to Question 10.

10.2. Commitment to resolve complaints received by PUC, and designation of specific contact person to work with PUC s Consumer Services Division for complaint resolution.

Viasat commits to resolve complaints received by the PUC. Viasat’s designated contact for

resolution of complaints is:

Jason Sophinos Associate General Counsel ViaSat, Inc. 349 Inverness Drive South Englewood, CO 80112 Tel: 720-493-6365 Email: [email protected]

11. Designation on Tribal Lands Applicants requesting designation on Tribal Lands must notify and engage appropriate Tribal authorities in the proposed designated service area. Evidence of such notification and engagement must be provided in the application or in a supplemental filing, and include the information required in 11.1, 11.2 and 11.3 below. If the applicant does not submit such information for the relevant Tribal Lands prior to initial designation as an ETC, the applicant may submit a subsequent filing to request expansion of the designated service area to include Tribal Lands or additional Tribal Lands. 11.1. Copy of notice to appropriate Tribal government or regulatory entity of filing of ETC application, and identification of specific method and date of delivery. This should include the name of person to whom notice was sent.

Viasat’s awarded census blocks overlap with lands of the following Tribes: Burns Paiute Tribe,

Celilo Indian Tribe, Coquille Indian Tribe, Cow Creek Band of Umpqua Tribe of Indians, Klamath Tribes,

Confederated Tribes of Siletz Reservation, Confederated Tribes of the Umatilla Indian Reservation, and

Confederated Tribes of the Warm Springs Reservation of Oregon. The census blocks associated with

the lands of each Tribe are identified in Exhibit C. Viasat provided notice and a copy of the Application

to each tribe on the following dates: Burns Paiute Tribe (October 9, 2018 via Federal Express), Celilo

Indian Tribe (October 12, 2018 via First Class Mail), Coquille Indian Tribe (October 9, 2018 via Federal

Express), Cow Creek Band of Umpqua Tribe of Indians (June 18, 2019 via Email), Klamath Tribes

(October 9, 2018 via First Class Mail), Confederated Tribes of Siletz Reservation (October 9, 2018 via

First Class Mail), Confederated Tribes of the Umatilla Indian Reservation (October 12, 2018 via First

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Class Mail), and Confederated Tribes of the Warm Springs Reservation of Oregon (October 24, 2018).

Copies of the notices provided to each Tribe are attached hereto as Exhibit D.

Viasat received a date-stamped copy of its notice from the Confederated Tribes of Siletz

Reservation on October 19, 2018 and from the Klamath Tribes on December 17, 2018. Viasat has

confirmed delivery of the notices to each of the other Tribes.

On February 5, 2019, Viasat followed up with each of the Tribes to confirm whether the Tribe

has any concerns regarding Viasat’s Application or would support/not objection to Commission grant

of ETC designation on Tribal lands. On February 12, 2019, Viasat received correspondence from the

Confederated Tribes of the Warm Spring Reservation advising that the Tribal Council was reviewing

Viasat’s Application.

On March 6, 2019, Viasat called the Burns Paiute Tribe to inquire about the status of review

and was given updated contact information for the new Tribal Chair, Eric Hawley. On March 13, 2019,

Viasat sent an email to the new Chair, with a copy of the application, information about where to find

all of the documents filed in the proceeding, and again requested a contact and written confirmation

whether the tribe would support/object to the PUC granting ETC designation. On May 6, 2019, Viasat

sent a second email asking for an update on the Tribe’s review and requesting written confirmation of

the Tribe’s position on Viasat’s application. On July 1, 2019, Viasat sent an email to the Tribal Planner,

Kenton Dick, with information about the pending application and requested a contact and written

confirmation whether the Tribe would support/object to the PUC granting ETC designation.

On March 6, 2019, Viasat spoke to the Coquille Chairperson’s assistant, Kay Collins, who

requested Viasat send the information to her. On March 13, 2019, Viasat sent an email to Ms. Collins,

with a copy of the application, information about where to find all of the documents filed in the

proceeding, and again requested a contact and written confirmation whether the tribe would

support/object to the PUC granting ETC designation. On May 6, 2019, Viasat sent a second email

asking for an update on the Tribe’s review and requesting written confirmation of the Tribe’s position

on Viasat’s application. On July 1, 2019, Viasat sent an email to Coquille Executive Director, Mark

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Johnson, with information about the pending application and requested a contact and written

confirmation whether the Tribe would support/object to the PUC granting ETC designation.

On March 6, 2019, Viasat spoke to Mr. Gentry of the Klamath Tribes who recommended

contacting Troy Haney in the Tribe’s IT Department about Viasat’s services. On May 7, 2019, Viasat

sent an email to the Klamath Tribe Council’s Secretary, Roberta Frost, with copies of the October 9,

2018 and February 5, 2019 correspondence, information about where to find all of the documents filed

in the proceeding, and requested written confirmation whether the tribe would support/object to the

PUC granting ETC designation. On May 22, 2019, Viasat spoke to Jared Hall, the Klamath Tribes’

Planning Director, about Viasat’s pending application and, in particular, the two Viasat-awarded census

blocks that overlap Klamath Tribes’ land. On July 8, 2019, Viasat communicated via email with Mr. Hall

seeking further information about the nature of the two overlapping census blocks and was informed

that there are currently no residences on those census blocks and that are not likely to be residences

on those census blocks for the foreseeable future.

On March 6, 2019, Viasat contacted the Confederated Tribes of the Siletz Reservation

Chairperson’s office and was told that the office would locate the prior notices and then follow up with

Viasat. On May 7, 2019, Viasat sent an email to the Chairperson, Delores Pigsley, with a copy of the

application, information about where to find all of the documents filed in the proceeding, and again

requested a contact and written confirmation whether the tribe would support/object to the PUC

granting ETC designation. On July 8, 2019, Viasat sent an email to the Manager of the Confederated

Tribes of the Siletz Reservation, Sharon Edenfield, with copies of the October 9, 2018 and February 5,

2019 correspondence, information about where to find all of the documents filed in the proceeding,

and requested written confirmation whether the tribe would support/object to the PUC granting ETC

designation.

On May 21, 2019, Viasat sent an email to the General Council of the Confederated Tribes of

the Umatilla Indian Reservation with copies of the October 9, 2018 and February 5, 2019

correspondence, information about where to find all of the documents filed in the proceeding, and a

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request for written confirmation whether the tribe would support/object to the PUC granting ETC

designation. On July 8, 2019, Viasat sent an email to Charles F. Sams III, the Interim Executive Director

of the Confederated Tribes of the Umatilla Indian Reservation, and JD Tovey, the Planning Director of

the Confederated Tribes of the Umatilla Indian Reservation, with copies of the October 9, 2018 and

February 5, 2019 correspondence, information about where to find all of the documents filed in the

proceeding, and a request for written confirmation whether the tribe would support/object to the PUC

granting ETC designation.

On March 13, 2019, Viasat communicated with Mr. Strum about the status of the Confederated

Tribes of the Warm Spring’s Reservation of Oregon’s review of Viasat’s application and requested a

letter either supporting or opposing Viasat’s application. On April 23, 2019, Viasat again communicated

with Mr. Strum about the status of the Tribe’s review of Viasat’s application. Mr. Strum responded via

email that Viasat’s application “will be opposed as the Tribe already has a local carrier that is owned

and operated by the Tribes.” He indicated the Council would provide a letter; however, Viasat has not

received any further correspondence.

Copies of Viasat’s correspondence with each of the Tribes is attached here to Exhibit E.

Viasat is continuing to work with each Tribe to identify any issues, concerns or questions raised

by the Application. Viasat will provide confirmation that the tribes support or do not oppose Viasat’s

Application as soon as it receives such confirmation from each tribe. Viasat will supplement this

Amended Application with the information requested in Questions 11.1 through 11.3 as it moves

forward with efforts to engage applicable Tribal authorities.

11.2. Summary of Tribal engagement efforts, e.g., dates and topics of meetings, participants, information shared, etc. and an explanation as to how the applicant addressed the following areas (as applicable): 1. Needs assessment and deployment planning with a focus on Tribal community anchor institutions; 2. Feasibility and sustainability planning; 3. Marketing services in a culturally sensitive manner; 4. Rights of way processes, land use permitting, facilities siting, environmental and cultural preservation review processes; and 5. Compliance with Tribal business and licensing requirements. Tribal business and licensing requirements are as described in

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47 CFR 54.313(a)(9)(v).

See response to Question 11.1

11.3. Results of Tribal engagement efforts with evidence that the appropriate Tribal government or regulatory entity either supports or does not oppose applicant’s designation as an ETC on the relevant Tribal Lands.

See response to Question 11.1.

12. Public interest showing 12.1. Demonstration that designation would be in the public interest; this must address; 12.1.1. Specific ways in which consumer choices will be increased. 12.1.2. Specific advantages and disadvantages of applicant's service offerings. 12.1.3. Any other specific criteria determined by the Commission.

See Section VI.

13. Commitment to provide reports as required 13.1. Annual ETC reports as required by the Commission.

Viasat commits to provide annual reports required by the Commission. 13.2. Special weekly, monthly, or quarterly reports that Commission Staff finds necessary based on program requirements and the circumstances of each applicant and which the applicant, in good faith, commits to provide to the Commission.

Viasat commits to file weekly, monthly, or quarterly reports deemed by Commission Staff to be

necessary based on program requirements set forth in OAR Chapter 860, Division 33, and the

circumstances of Viasat’s Amended Application.

VI. DESIGNATION OF VIASAT AS AN ETC AND AN ETP IS IN THE PUBLIC INTEREST

In the FCC’s recent Order on Reconsideration concerning the Connect America Fund program,

the FCC described holding the Auction as a step to “the goal of closing the digital divide for all

Americans, including those in rural areas of our country.”28 The auction approach unleashed

competition that will result in more locations being served at less costs to Americans who pay into the

Universal Service Fund. Only four other companies bid for the areas Viasat was awarded and two of

those bidders proposed to only meet the Minimum Tier (10/1 Mbps). Viasat was among the lowest-

28 Connect America Fund, et al., Order on Reconsideration, 33 FCC Rcd 1380, para. 1 (2018).

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cost bidders in the auction. Viasat won these areas in the last round before the clearing, which means

that if Viasat had not bid and won, no one was going to serve these particular areas. In other words,

Oregon would not have received any CAF II Auction support for these particular areas absent Viasat’s

ability to offer service for such a low dollar amount.

As a winning bidder in the CAF II Auction, Viasat is eligible to receive approximately $10 million

over the next ten years to bring high-quality, innovative voice and broadband services to consumers in

underserved portions of Oregon. By selecting Viasat as a recipient of CAF II Auction funds, the FCC

has recognized that the voice and broadband services Viasat proposes to deploy with the funds would

advance the goal of the CAF II Auction, and thereby advance the goals of universal service.

Granting Viasat’s Amended Application will serve the public interest through the deployment of

broadband and voice services to unserved and underserved high-cost areas in Oregon, support

investment in facilities and equipment, and expand the number of competitive providers serving rural

areas in Oregon. Designating Viasat as an ETC will permit the company to recei

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