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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Dianne Dienstein             February 7, 1997   CPUC - 8
         415-703-2423                   (R.95-01-020/I.95-01-021)

  CPUC URGES ELIGIBLE SCHOOLS, LIBRARIES, HOSPITALS, COMMUNITY
     ORGANIZATIONS TO APPLY FOR CALIFORNIA TELECONNECT FUND

    Schools, libraries, municipal or county-owned and operated
hospitals and health clinics, and community-based organizations
offering health care, job training, job placement, and/or
educational instruction services may be eligible for discounts on
telecommunications services under the California Teleconnect Fund
program established by the California Public Utilities Commission
(CPUC).
    CPUC Commissioner Jessie J. Knight, Jr. highlighted the
importance of the Fund: "The California Teleconnect Fund will
assure that a broad range of Californians participate in the
information age and experience the benefits of today's
competitive and innovative telecommunications markets.
Discounted service for qualified schools, libraries, healthcare
and community-based organizations is also an important component
of the Commission's commitment to Universal Service."
    The California Teleconnect Fund provides $50 million per year
for discounted telecommunications services, $40 million of which
is earmarked for qualifying schools and libraries, $5 million for
municipal and county-run hospitals and clinics, and $5 million
for community-based organizations.
    Qualifying schools and libraries will receive a 50% discount
off the best rate they can negotiate from competing
telecommunications providers.  Qualifying municipal and county-
                            - more -
owned and operated hospitals and health clinics will receive a
20% discount off the rate they negotiate.  Qualifying community-
based organizations will receive a 25% discount on up to two high
speed data lines.
    Because the Fund is limited to $50 million/year, the
Commission urges those entities who may qualify to promptly
contact their local phone company for an application form.
Funding of discounts will be on a first come, first serve basis.
    No telecommunications service provider may provide discounted
services under the California Teleconnect Fund program until that
customer's application has been forwarded to the CPUC
Telecommunications Division for review and determination of
availability of funds.  If the application is incomplete or the
applicant does not meet California Teleconnect Fund criteria, the
application will be rejected and the provider notified.  If the
application is complete, meets Fund criteria, and funds are
available, the provider will be notified and will mail a
confirmation letter to the customer.
    This procedure will be used on an interim basis for this
first cycle of funding.  A workshop will evaluate its success and
based on the workshop evaluation and recommendations, the
Commission will establish a permanent processing procedure to be
used for future funding cycles.


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