20120705Comments.pdf

NEIL PRICE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 6864
RECEIVD
211j2 JUL -5 Ph 2:27
PUFJ: 1 L •.',J - ..,.
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
ALLIED WIRELESS COMMUNICATIONS ) CASE NO. ALL-T-10-01
CORPORATION DBA ALLTEL WIRELESS )
FOR DESIGNATION AS AN ELIGIBLE )
TELECOMMUNICATIONS CARRIER ) COMMENTS OF THE
) COMMISSION STAFF
)
The Staff of the Idaho Public Utilities Commission comments as follows on Allied
Wireless Communications Corporation dba Alitel Wireless for designation as an eligible
telecommunications carrier.
BACKGROUND
On May 25, 2012, Allied Wireless Communications Corporation dba Alltel Wireless
("Allied" or "Company") filed an Application, pursuant to 47 U.S.C. § 214(e)(1)-(2) of the
Telecommunications Act of 1934, 47 C.F.R. § 54.1003, and Order No. 29841, seeking
conditional designation as an eligible telecommunications carrier ("ETC") in the state of Idaho
STAFF COMMENTS 1 JULY 5, 2012
for the purpose of participating in the Mobility Fund Phase 1 Auction ("Auction 901") scheduled
to be held by the Federal Communications Commission ("FCC") on September 27, 2012.'
On March 22, 2011, the Commission previously approved Allied's Application for
designation as an ETC carrier in specific rural and non-rural service areas indentified in its
Application.2
Overview of the Mobility Fund, Phase 1
On, November 19, 2011, the FCC released the USF/ICC Transformation Order (the
Order) in which it established the Auction 901.3 The FCC set aside $300 million to be used to
increase the availability of current generation mobile broadband and mobile voice across the
country.4 The FCC recognized that the current system 5 is not efficient and that universal service
funding for mobile networks must be deployed in a more targeted and efficient fashion.
Auction 901 will award funds to carriers that commit to deploying 3G or better mobile
voice and broadband services in census blocks where such services are unavailable. Support will
be allocated to maximize the road miles covered by new mobile services without exceeding the
budget of $300 million. Winning bidders will be obligated to choose whether to deploy 3G
service within two years or 4G within three years of the award.6
To identify the under-served areas of the country, the FCC began by documenting "the
availability of service at the census block level as the first step in indentifying those area that are
eligible for the Auction 901 support." The census block is the smallest geographic unit for
which the Census Bureau collects and tabulates decennial census data. By determining the
extent of current-generation mobile wireless services by census block, a detailed picture would
emerge of the availability of 30 mobile services.7 Some census blocks, particularly in rural
areas, may include both served and unserved areas.8
'Application at I.
2 See Order No. 32209, issued on March 22, 2011, Case No. ALL-T-10-01.
USF/ICC Transformation Order, released on November 18, 2011 para. 299
4 1d. para. 295.
"Yet despite growth in annual funding [of USF] for competitive ETCs of almost 1000 percent over the past
decade—from less than $17 million in 2001 to roughly $1.2 billion in 2010—there remain many areas of the country
where people live, work, and travel that lack any mobile voice coverage and still larger geographic areas that lack
current generation mobile broadband coverage." Id.
6 Auctjon 901 Procedures Public Notice DA 12-721, released on May 8, 2012, para. 2.
USS/ICC Transformation Order para. 331.
Id. para. 332.
STAFF COMMENTS 2 JULY 5, 2012
To participate in Auction 901 and receive monetary support, "an applicant must
demonstrate, for the areas on which it wishes to bid, that it has been designated as an ETC and
has access to the spectrum necessary to satisfy the applicable performance requirements."9
On February 10, 2012, the FCC issued DA 12-187. In this notice, the FCC provided an
updated list of potentially eligible Census Blocks. The following Summary of the Updated List
of Potentially Eligible Census Blocks provides information for each state.
Census Block information for Idaho 1°
Total No. of Tracts with Unserved Blocks 93
Total No. of Counties with Unserved Blocks 39
Total Population of Unserved Blocks 43,207
Total Area (square miles) of Unserved Blocks 38,962
Pre-Auction Dates and Deadlines'
FCC Form 180 (Short Form) Application Filing Window Opens 6/27/12; 12:00 noon ET
FCC Form 180 (Short Form) Application Filing Deadline 7/11/12; 6:00 p.m. ET
Mock Auction 9/25/12
Auction Begins 9/27/12
Specific Mobility Fund Phase 1 Eligibility Requirements and Certifications 12
1. ETC Designation Certification. To be eligible to participate in Auction 901, the
applicant must be designated as an ETC pursuant to Section 214 of the Communications Act in
any geographic area for which it seeks support, with the exception of Tribally-owned or
controlled entities. The entity, and not a subsidiary or parent holding company, must be
designated by a State or the FCC as an ETC in that geographic area to be eligible to participate in
the auction.'3
9 Auction 901 Procedures Public Notice para. 32.
'0 Id. Attachment A at 1.
para. 40.
12 Id. para. 29.
13 Id para. 93.
STAFF COMMENTS 3 JULY 5, 2012
2.ETC status carries with it certain obligations. A party might obtain the required
ETC designation but may not be subject to the obligations unless and until it is awarded Mobility
Fund support. The FCC will allow a party to participate in the auction if it has an ETC
designation conditioned upon the party winning support in the auction. 14
3.Access to Spectrum Description and Certification. Pursuant to the USF/ICC
Transformation Order, any applicant for Auction 901 must have access to the necessary spectrum
to fulfill any obligations related to support.'5
4.Financial and Technical Capability Certification. The FCC requires that an
applicant certify in the pre-auction short-form application that it is financially and technically
capable of providing 3G or better service within the specified timeframe in the geographic areas
for which it seeks support. 16
5.Certification That Applicant Will Not Seek Support for Areas in Which It Has
Made a Public Commitment to Deploy 30 or Better Service by December 31, 2012. The FCC
requires each applicant for Auction 901 support to certify that it will not seek support for any
areas in which it has previously made a public commitment to deploy 3G or better wireless
service by December 31, 2012.'
Staff believes Allied satisfies or will meet the first three requirements and that the
Company will be required to meet the last requirement upon participate in the Auction 901.
The Application
Allied is a commercial mobile radio services ("CMRS") carrier licensed by the FCC to
provide service in various locations in Idaho. Allied is a wholly owned subsidiary of Atlantic
Tele-Network, Inc. ("ATNI") a publicly-traded corporation headquartered in Beverly,
Massachusetts. '8
Allied states that, as one of the few carriers licensed to provide CMRS in the designated
unserved census blocks, it is uniquely positioned to bring the benefits of the Phase 1 Auction to
rural unserved areas of Idaho. 19 Some of the unserved census blocks are located in areas where
14 Id. para. 94.
15 Id. para.96.
16 Id. para. 97.
Id. para. 98.
' Application at 3.
9 1d.
STAFF COMMENTS 4 JULY 5, 2012
Allied is licensed to provide CMRS and for which it is not presently designated as an ETC.20
The Company believes it is in the public interest to approve its ETC Application. The Company
requests that its Application be conditional upon a successful award in Auction 901. Allied
believes that granting the Company ETC status will promote competition, the deployment of
higher quality services, and the rapid deployment of new telecommunications technologies. 21
STAFF ANALYSIS
Staff has reviewed Allied's Application and has conducted an analysis of the Company's
compliance with 47 U.S.C. § 214(e)(2), 47 C.F.R. § 54.1003, Order No. 29841 and the Auction
901 requirements. In addition, Staff has analyzed the public interest benefits of awarding the
Company a conditional ETC designation.
Allied seeks ETC designation conditioned upon Allied winning support from the
Mobility fund Phase 1 auction, as outlined in the FCC's USF/ICC Transformation Order. 22 The
Company does not seek ETC designation if it does not receive any funds from Auction 901.
Auction 901 Analysis for Idaho
On February 10, 2012, the FCC released DA 12-187— The Mobility Fund Phase I
Auction Updated List of Potentially Eligible Census Blocks. Attachment A of this notice
provided a summary of the updated list of potentially eligible Census Blocks. In Idaho, there are
197 unserved blocks serving a total population of 43,307 over 38,962 square miles.
Public Interest Analysis
Under Section 214 of the Telecommunications Act of 1996, individual State
Commissions must determine that an ETC designation is consistent with the public interest,
convenience and necessity.23
Mobility Fund Phase 1 recipients must offer voice service with coverage of at least 75
percent or more of the designated road miles within the area for which support is provided.
Additionally, receipt of the Mobility Fund Phase 1 support is conditioned upon the recipient
20 1d.at 10.
21 Id. at 11.
22 Id. at 7, USF/ICC Transformation Order para. 390.
23 U.S.C. § 214(e)(2).
STAFF COMMENTS 5 JULY 5, 2012
providing service over a network that achieves particular data rates under particular conditions,
which the FCC refers to as 3G networks or better.24
Allied's Application is for ETC designation outside of its current ETC service area and in
unserved areas. As such, the public interest analysis is a simple one. The fact that no carriers
provide service in these census blocks at the data rates outlined by the FCC suggests that it
would be in the public interest to allow Allied the opportunity to deploy services to these areas.
Other Public Interest Considerations
When applying the public interest test for an ETC Application, Staff has reviewed other
requirements that ETCs must satisfy. These public interest considerations are summarized
below:
Company contribution to the Idaho Telephones Service Assistance Program (ITSAP. Staff has
verified that the Company is remitting ITSAP fees to the program Administrator. 25
Allied has the ability to remain functional in emergency situations. 26 Allied has the ability to
remain functional in emergency situations as required by FCC rules and previously determined
by the Commission in Order No. 32209. Specifically, Allied has adequate amounts of back-up
power to ensure functionality without an external power source, is able to reroute traffic around
damaged facilities, and is capable of managing traffic spikes resulting from emergency
situations. 27
For the reasons stated above, Staff believes that Allied satisfies the public interest
analysis.
Other ETC Designation Requirements
Additional requirements for ETC designation, not previously discussed, are detailed in
the Appendix 1 of Order No. 29841 and discussed more fully below.
24 901 Procedures Public Notice para. 26.
25 2011 ITSAP Annual Report, Confidential Monthly Reports. 26 Application at 13.
27 Id. at 8.
STAFF COMMENTS 6 JULY 5, 2012
1.Common Carrier Status. Allied is a Commercial Mobile Radio Services (CMRS)
carrier providing "mobile service" as defined in 47 U.S.C. § 153(27).21
2.Provide the Universal Services. Allied offers the federally designated services listed
at 47 U.S.C. §54.10(a).29
3.Advertising. Allied will advertise the availability and pricing of its universal service
offering. 30
4.The Commitment and Ability to Provide Supported Service. Allied commits to
provide all of the supported services throughout its designated service area as required.3'
5.Commitment to Consumer Protection and Service. Allied will satisfy applicable
consumer protection and service quality standards in accordance with 47 C.F.R. § 54.202(a)(3)
and the IPUC ETC Requirements Order. 32
6.Description of the Local Usage Plan. Allied's service offering are comparable to the
offerings of the incumbent local exchange carrier (ILEC), taking into consideration all of the
attributes of its and the ILECs' service offering. 33
7.Tribal Notification. Allied will comply with this requirement. Allied submitted a
copy of its Application to Coeur d'Alene Tribe, Shoshone-Bannock Tribes of the Fort Hall
Reservation of Idaho, Nez Perce Tribe of Idaho and Kootenai Tribe of Idaho. 34
STAFF RECOMMENDATION
Staff has reviewed Allied's Application for conditional designation as an ETC for the
purpose of participating in the Mobility Fund Phase 1 Auction for areas outside of its existing
ETC area and only in the areas in which it is awarded Mobility Fund Support.
Staff believes that Allied's Application for a conditional ETC designation in the unserved
census blocks in Idaho is in the public interest and recommends approval of the Application.
28 Id at 5
29 id.
30 Id. at 6, ' Id
32 Id at 9.
Id.
Application Cover Letter.
STAFF COMMENTS 7 JULY 5, 2012
Respectfully submitted this of July 2012.
cii Price
Technical Staff: Grace Seaman
i:umisc:comments/alltl 0.1 npgs comments
STAFF COMMENTS 8 JULY 5, 2012
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 5TH DAY OF JULY 2012, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. ALL-T-10-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
MOLLY O'LEARY
RICHARDSON & O'LEARY
P0 BOX 7218
BOISE ID 83707
E-MAIL: [e-mail]
SECRETARY/
CERTIFICATE OF SERVICE