Friday, March 26, 2010 Kelley Goes, Secretary West Virginia Department of Commerce Capitol Complex, Bldg. 6, Room 525 Charleston, WV 25305-0311 Dear Secretary Goes: We are writing to you to express concern over certain statements about the State’s management of its recently-approved BTOP grant. In particular, it is our understanding that the State may be establishing policies and procedures that would be anti-competitive, deny educational facilities access to bandwidth and be contrary to the purposes and intent of the American Recovery and Reinvestment Act of 2009. Last week, you asked us to present our concerns in writing to you, and indicated that you would communicate our concerns to the State’s Manager of the MPLS contract with Verizon. Many carriers have been certified by the West Virginia Public Service Commission as Eligible Telecommunications Carriers (“ETC”) and some have current ERate approved contracts with K-12 County school districts in West Virginia. Through this designation, these carriers have successfully been awarded contracts to provide much-needed transport from the schools’ network aggregation point (whether it is the Board of Education building or a High School) to the WV Net points of presence in Morgantown or Charleston. These E-rate contracts include funding for the monthly recurring charges associated with this transport. As we understand it, the State has taken the position that it will not permit these ETCs to order transport circuits to WV Net on behalf of the school districts they represent under contract through the existing State MPLS contract with Verizon, which is the base agreement for the State’s BTOP grant. As a result, the public school districts for which these ETCs provide E-rate services will be unable to interconnect with the State’s federally-funded network, denying them the benefit of the State’s BTOP grant funds. These ETCs, as competitive services providers, are restricted from accessing the fiber that would otherwise be built at no upfront charge if the school district had selected Verizon as their E-Rate provider. This severely eliminates the ability of these school districts to utilize hybrid wireless, cable and fiber solutions to economically meet their broadband needs (hybrid solutions allow rural school districts alternative, economical broadband solutions). We ask you to consider revising the State’s position, and if necessary, to amend the existing MPLS contract with Verizon, so that State-certified ETCs can order transport to WV Net on behalf of the school districts and other permissible entities they represent under contract. This would be consistent with the interconnection objectives of the State of West Virginia, the Recovery Act and Federal Communications Commission principles, and would facilitate expeditious, economical and efficient construction, deployment and operation of broadband services for public schools and others in the State. We appreciate your consideration of these points and look forward to your response. Sincerely, Howard “Rusty” Irvin, III