****NOTICE****

New York State

Universal Service Fund

Update on Third Assessment

For Funding Year 2016

The New York State Universal Service Fund (NYSUSF) was established pursuant to the New York Public Service Commission’s (NYPSC) Order Adopting Phase II Joint Proposal, issued and effective August 17, 2012 in case 09-M-0527 (the Order). The NYSUSF was established in order to help ensure that affordable basic local residential telephone service is universally available throughout the state of New York.

In accordance with the Order, the NYSUSF was established for a term of four years, beginning January 1, 2013. You can view the entire Order establishing the NYSUSF on the New York Public Service Commission website:

http://www.dps.ny.gov/

Click on “Universal Service Fund”

The Order specifies that an amount up to four million dollars ($4 M ) may be assessed amongst the NYSUSF contributors in 2016. You are receiving this notice because, based on the guidance included in the Order, your company has been determined to be a contributor to the NYSUSF.

It has been determined that the 2016 assessment will be billed at a maximum of four installments. The third installment will be billed in the amount of five hundred thousand dollars. Your pro-rata portion of this five hundred thousand dollar assessment will be based on the assessment methodology detailed within the Order.

The third installment for 2016 invoices will be billed on or about 09/10/2016 with payments due no later than 10/15/2016.

If you have any questions regarding this, please contact NYSUSF staff at (518) 443-2808.