Next Gen Funding. CalNENA Conference Dick Dickinson Senior Director, Public Safety TCS Inc. February, 2009
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1 Next Gen Funding CalNENA Cnference 2009 Dick Dickinsn Senir Directr, Public Safety TCS Inc February, 2009
2 Established in 1987 TCS Backgrund Annaplis HQ Oakland, Seattle, Tampa, Lndn Data Centers in WA, AZ, MD NASDAQ: TSYS Strategic Offers Wireless Lcatin & Messaging Slutins Emergency E911 Services Satellite Services and Deplyable Systems Prfessinal Services Industry Relatins Funding Member: SMS Frum, PAM Frum, IN Frum Member: 3GPP, CTIA, ETSI, GSM, NENA, OMA, TIA, ESIF, NRIC VII, IETF, APCO, 911 Industry Alliance, ESIF
3 What is Next Generatin IP selective ruter with legacy ALI is NOT Next Gen (but it might be an intermediate step in getting there) Vice and ALI n the same IP circuit defines Next Gen Media cnversin (IP t CAMA) at the PSAP fr legacy CPE can still be Next Gen, as lng as the vice and ALI arrive at the PSAP via the same IP circuit. VIP is nt Next Gen
4 Hw is E911 Funded Tday? E911 fees per subscriber fr Landline Wireless But nt VIP (yet) Funding is decreasing as cnsumers mve t VIP Mst states have nt passed enabling legislatin fr VIP fees Cngress recently authrized E911 fees fr VIP Cmcast cnversin frm TDM t VIP cst King C WA $500,000 per year
5 Revenue vs Csts yr1 yr2 yr3 yr4 yr5 yr6 Revenue E911 Cst NG 911 Cst Transitin Cst
6 Next Gen-What needs t be IP Netwrk VA mdel WA RFP Existing state netwrks E911 Service Prviders funded Nt necessarily the LEC any mre TCS, Intrad, VIXXI, MicrData New CPE Legacy netwrks during transitin Everything else that PSAPs are already paying fr tday: staff, facilities, utilities, etc.
7 Where Will the Mney Cme Frm NENA Next Generatin Partners Prgram White Paper (March 2007) Funding Mdel Optins Fixed surcharge n all calling devices Surcharge n Access Infrastructure Prvider (AIP) Universal Statewide Cmmunicatins Surcharge Universal Federal Cmmunicatins Surcharge User (Incident) Fee General Fund
8 Fixed Surcharge This is the current mst cmmn mdel Fee n telephnes, wireless phnes, VIP phnes Fee n any ther device capable f 911 calls In Next Gen, this culd include SMS devices, laptps, palm pilts, ther??? Washingtn is prpsing legislatin t raise existing fees Current fees erded by inflatin. Much 911 funding cmes frm general tax revenues. Prpsed legislatin fails t tackle plitical issues AIP prviders vs VSPs Prepaid (Trackfne lawsuit)
9 Surcharge n AIP Impse fees n access prviders, nt the service prviders. Vnage vs Cmcast Access prviders have lcal presence vs service prviders wh may nt. Sme states cannt tax entities with n lcal presence. Sme service prviders have n presence in the USA. Shuld taxes apply t cnnectins nt used fr vice calls? (cable, TV, fax, etc)
10 Universal Statewide Surcharge Impse 3%-5% fee n all cmmunicatins Telephne Cable Satellite TV SMS, IM Internet Virginia has adpted this mdel Fees cllected at State level This might nt g dwn well in jurisdictins where 911 authrities cllect fees lcally
11 Universal Federal Surcharge A single cnsistent federal bill vs 50 different state bills Federal Universal Service Fund mdel Rich states subsidize pr states Feds ensure unifrmity and respnsibility amng states Feds remit prtin f funds t states, retain prtin fr natinal internetwrks
12 User (Incident) Fee Impse a charge fr each 911 call Numerus prblems: Discriminates against pr peple Ptentially high fees wuld discurage use
13 General Fund Fund 911 frm same general revenues that fund the plice, fire, and ther civic functins In WA, mst 911 revenue cmes frm General Fund Existing 911 fees wuld decrease but ther taxes wuld increase E911 wuld lse its dedicated funding but wuld ptentially have access t greater funds in the general revenues E911 culd becme a plitical ftball as ther state agencies fight fr mney.
14 Eliminate Cst Recvery Can t pay? DON T! Require all carriers (LEC, CLEC, wireless, VIP) t get E911 calls t the PSAP at their wn expense. Sanctin varius 911 service prviders t cnnect t the PSAP and deliver calls. (TCS, Intrad, MicrData, VIXXI) Carriers pay the 911 service prviders t deliver 911 calls as part f the cst f ding business. 911 service prviders cmpete fr the carriers business. Similar t wireless and VIP tday in thse states withut cst recvery.
15 Cmpetitive Service Prviders Selective Ruter ERDB/ MSAG ALI VEDS 911 Wireless custmer Wireless Carrier #2 911+ANI Query Query ANl Wireline custmer CLEC #1 Access Prvider #1 911 call via IP 911 Wireless custmer 911 VIP custmer Wireless Carrier #1 VIP Service Prvider ANI ANI ANI Access Prvider #2 Query 911 call via IP Query PSAP 911 Wireline Custmer ILEC Selective Ruter ERDB/ MSAG ALI
16 2008 Net 911 Act The basic elements f the Net911 Act are: 1. Authrizes funds allcated fr the Enhance 911 Acts that were initially intended fr Phase 1 upgrades t als nw be available fr grants t assist PSAPs fr Phase 2 upgrades and/r upgrades t IP-enabled netwrks. 2. Requires all VSPs t prvide E Requires all E911 service prviders t pen their infrastructures t VSPs 4. Prvides liability prtectin fr VIP vendrs and thers 5. Cnfirms authrity f states t impse 911 taxes n VIP. 6. Denies federal grants under Enhanced 911 Acts t states that divert 911 funds CA, NY, HI, VA have annunced plans t raid 911 funds
17 Federal Stimulus Package $7.2 Billin fr IP infrastructure NTIA t distribute $4B in grants t states Will Califrnia be eligible fr any f thse grants if the state raids E911 funds? Yes. Grants must be cmpleted by end f 2010
18 Thank Yu! Dick Dickinsn
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