2. Background

On May 25, 2006, the Commission opened Rulemaking (R.) 06-05-028 to conduct a comprehensive review of its Telecommunications Public Policy Programs-the Universal Lifeline Telephone Service (Lifeline), Payphone Programs, Deaf and Disabled Telecommunications Program (DDTP), and California Teleconnect Fund (CTF).

Decision (D.) 08-06-020 addressed four of the five Telecommunications Public Policy Programs at issue in this proceeding. The CTF was expanded to include community colleges, with an initial annual monetary cap of $7.2 million. An Office of CTF Outreach and Assistance was established. The CTF was made more competitively and technologically neutral. We further removed the tariff requirements related to CTF for non-rate-of-return carriers, and finally, ensured that all participants in the California Telehealth Network were eligible to receive CTF discounts.

The Payphone Enforcement Program was combined with our existing enforcement efforts. In addition, a Public Policy Payphone Program was reestablished, and we delegated to the Executive Director the task of establishing the most appropriate surcharge mechanism, including utilizing an existing program. The ongoing wireless equipment pilot for the DDTP will be monitored for further action as needed.

In D.10-11-033, the Commission addressed the remaining Telecommunications Public Policy Program-the Lifeline Program-and created a two-phase process to resolve the many implementation issues related to that program.

We hereby institute a new rulemaking to focus exclusively on the important revisions to the California LifeLine program, as discussed below. This program was designed to ensure that basic telephone service remains affordable for low-income Californians and our on-going commitment to achieving that objective requires additional work. This will be a successor proceeding to R.06-05-028 and limited only to LifeLine. As we have completed our review of the other telecommunications public policy programs, we will close that proceeding and any subsequent LifeLine measures will be considered exclusively in this new rulemaking.