12. State and Federal High Cost Support

On December 17, 2009, DTS provided an analysis of its expected support from the California High Cost Fund-A in year three, when it is eligible. DTS' anticipated support from the California High Cost Fund-A is $574 per line for its first year of eligibility. DTS' anticipated Federal High Cost Fund support is $2,750 per line for the first year of operation. DTS' estimated Federal High Cost Fund support drops by approximately 61% to $1,056 per line per year by its fifth year of operation.

We remind DTS that there is no guarantee that the amount of California or Federal High Cost Fund support sought will be granted.