20120719Application.pdf

Pamela S. Howland, ISB No. 6177
Holland and Hart LLP
Suite 1400, U.S. Bank Plaza
101 South Capitol Boulevard
P.O. Box 2527
Boise, Idaho 83701-2527
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Thorvald A. Nelson
Sara K. Rundell
Holland and Hart LLP
6380 South Fiddlers Green Circle, Ste. 500
Greenwood Village, CO 80111
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
[e-mail]
Todd B. Lantor
Lukas, Nace, Gutierrez & Sachs LLP
8300 Greensboro Dr., Suite 1200
McLean, VA 22102
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
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Attorneys for Budget PrePay, Inc.
BEFORE THE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF BUDGET PREPAY, INC. D/B/A
BUDGET MOBILE FOR DESIGNATION AS
AN ELIGIBLE TELECOMMUNICATIONS
CARRIER PURSUANT TO 47 U.S.C. §
214(e)(2)
CASE NO.
APPLICATION OF BUDGET
PREPAY, INC. DJB/A BUDGET
MOBILE FOR DESIGNATION
AS AN ELIGIBLE
TELECOMMUNICATIONS
CARRIER PURSUANT TO 47
U.S.C. § 214(e)(2)
Budget PrePay, Inc. dlb/a Budget Mobile ("Budget" or the "Company"), by undersigned
counsel, and pursuant to Section 214(e)(2) of the Communications Act of 1934, as amended,
Section 214(e)(2) of title 47 of the United States Code ("U.S.C. Title 47"), and Sections 54.101
through 54.422 of title 47 of the Code of Federal Regulations ("C.F.R. Title 47") of the Federal
Page 1 - Application of Budget PrePay, Inc.
dlb/a Budget Mobile
Communications Commission ("FCC"), hereby submits this Application requesting that the
Idaho Public Utilities Commission (the "Commission") designate Budget as a wireless Eligible
Telecommunications Carrier ("ETC") throughout the State of Idaho for the limited purpose of
receiving support from the Federal Universal Service Fund ("USF") to provide wireless service
under its Low-Income section for Lifeline Assistance ("Lifeline"). As demonstrated in this
Application, Budget meets all statutory and regulatory requirements for designation as an ETC in
the State of Idaho. Budget respectfully requests that the Commission expeditiously issue an
order granting this Application so that Budget may begin providing wireless Lifeline service to
qualified low-income households at the earliest practicable time. Budget also requests that the
Commission either find inapplicable or waive certain reporting and certification requirements
related solely to high-cost support.
I. INTRODUCTION.
A. Background.
Budget is a Louisiana corporation' and is authorized to conduct business as a foreign
corporation in the State of Idaho.2 A copy of its Certificate of Authority is attached hereto as
Exhibit 1. Budget is an experienced Competitive Local Exchange Carrier ("CLEC") that
provides basic local exchange services and long distance services in 42 states, as further
described in Section II.C.4 of this Application. Budget is now seeking authority to begin
providing wireless Lifeline service to qualified low-income households in Idaho.
Budget Phone, Inc. was incorporated in the State of Louisiana on May 1, 1996 (Charter/Organization ID
34525907D). The principle office of the Company is located at 1325 Barksdale Blvd., Bossier City, LA 71111.
2 Budget PrePay, Inc.'s Idaho organizational ID/filing number is C174473, and its registered agent in the State of
Idaho is National Registered Agents Inc, 1423 Tyrell Lane, Boise, ID 83706.
Page 2 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
B. Contact Information.
Budget's contact name and address are set forth below:
David Donahue
Budget Prepay, Inc.
1325 Barksdale Blvd.
Bossier City, Louisiana 71111
[phone] (Phone)
[phone] (Fax)
davidd(budgetprepay.com
Budget's counsel in this matter is set forth below, and all communications relating to this
Application should be addressed to the following representatives:
Pamela S. Howland, ISB No. 6177
Holland and Hart LLP
Suite 1400, U.S. Bank Plaza
101 South Capitol Boulevard
P.O. Box 2527
Boise, Idaho 83701-2527
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Thorvald A. Nelson
Sara Kerkhoff Rundell
Holland and Hart LLP
6380 South Fiddlers Green Circle
Suite 500
Greenwood Village, CO 80111
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Todd B. Lantor
Lukas, Nace, Gutierrez & Sachs, LLP
8300 Greensboro Drive, Suite 1200
McLean, VA 22102
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Page 3 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
II. LEGAL COMPLIANCE WITH THE COMMISSION'S AND FCC'S
REQUIREMENTS FOR DESIGNATION AS AN ETC.
A.The Commission's Authority to Perform ETC Designations.
The Commission has the requisite authority to perform the limited ETC designation
requested herein. Section 214(e)(2) of U.S.C. Title 47 provides state public utility commissions
with the primary responsibility for the designation of ETCs. Under U.S.C. Title 47, a state
public utility commission with jurisdictional authority over ETC designations must designate a
common carrier as an ETC in non-rural areas and may designate the common carrier as an ETC
in rural areas if the carrier satisfies the requirements of Section 21 4(e)( 1 )3 By (i) offering the
services supported by the USF, (ii) advertising the availability of such services using media of
general distribution, and (iii) obtaining a forbearance of the requirement that some of the services
be offered over its own facilities, Budget meets the requirements of Section 214 of U.S.C. Title
47. Budget also meets the applicable requirements of Idaho law, including those required by
Commission order 4, warranting its designation as an ETC by the Commission.
B.ETC Legal Requirements.
Section 254(e) of U.S.C. Title 47 provides that "only an eligible telecommunications
carrier designated under section 214(e) of this title shall be eligible to receive specific Federal
universal service support." Section 214(e)(1) and (2) of U.S.C. Title 47, in turn, require state
commissions to designate as an ETC any common carrier that (i) offers services that are
supported by federal universal service support mechanisms, either using its own facilities or a
See In the Matter of the Application of WWC Holding Co., Inc. DBA CellularOne® Seeking Designation as an
Eligible Telecommunications Carrier that May Receive Federal Universal Service Support, Case No. WST-T-05-1,
Order No. 29841, App. § A.4 (Aug. 4, 2005) (the "Idaho ETC Order").
4 See generally id.
Page 4— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
combination of its own facilities and resale of another carrier's facilities, and (ii) advertises the
availability of such services and related charges using media of general distribution.
1.Eligibility and Identification of Applicable Service Area.
Budget is a "common carrier," as that term is defined in U.S.C. Title 475, and, as such, is
eligible for designation as an ETC so long as it meets the requirements of Section 214(e)(2).
Budget is currently requesting ETC status, and the FCC and the Commission have recognized on
numerous occasions that telecommunications providers offering wireless services are eligible for
ETC designation.
Section 214(e)(2) of U.S.C. Title 47 provides that ETC designation shall be made for a
"service area" designated by the state commission. Section 214(e)(5) of U.S.C. Title 47 provides
that the "service area" shall be a "geographic area established by the State commission."
Attached hereto as Exhibit 2 is a map of Budget's proposed service area and a list of the
exchanges, consisting of the wire centers of rural and non-rural ILECs, for which Budget is
seeking ETC authority for its wireless services.
2.Supported Services.
Section 214(e)(1)(A) of U.S.C. Title 47 and the Idaho ETC Order require that an ETC
offer voice telephony services that are supported by federal universal service support
mechanisms ("Supported Services") either using its own facilities or a combination of its own
facilities and resale of another carrier's services. Along with significant recent changes to the
Supported Services, the FCC has provided a blanket forbearance from the "own facilities"
requirement for all ETC applicants who meet certain conditions, including obtaining the FCC's
47 U.S.C. § 153(1 1) (defming "common carrier" as "any person engaged as a common carrier for hire, in
interstate or foreign communication by wire or radio.. .
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dlb/a Budget Mobile
approval of a compliance plan.6 Budget will provide each of the Supported Services identified in
Section 54.10 1 of C.F.R. Title 47, as amended by the FCC on December 23, 2011 and February
6, 2012 , throughout its designated service area, as indicated below:
Voice grade access to the public switched telephone network or its functional
equivalent - Budget will provide its customers with the ability to make and
receive calls on the public switched network.
2.Minutes of use for local service provided at no additional charge to the end user -
Though Budget may ultimately decide to expand the number of Lifeline service
plan options available to eligible Lifeline customers, Budget intends to initially
offer qualifying customers an "active user talk & text" wireless plan that will
provide 4,000 minutes of combined local/toll usage and texting, as well as another
plan with 250 free minutes of local/toll usage.
3.Access to the emergency services provided by local government or other public
safety organizations, such as 911 or enhanced 911, to the extent the local
government in Budget's service area has implemented 911 or enhanced 911
systems - All of the phones that Budget distributes are capable of delivering
automatic numbering information and automatic location information and
otherwise satisfy applicable state and federal E91 1 requirements.
4.Toll limitation for qualifying low-income consumers means toll blocking service
and toll control service. Toll limitations service does not need to be offered for
any Lifeline service that does not distinguish between toll and non-toll calls in the
pricing of its service. Because the plans offered by Budget include an established
number of minutes with no distinction between the pricing for local and toll calls,
Budget's customers will not be subjected to unexpected bills for
telecommunication toll services, and Budget's services satisfy the requirements.
As Budget offers all Supported Services currently required by Section 54.10 1 of C.F.R.
Title 47, it believes it also satisfies the intent of the Commission's requirements regarding
6 1n The Matter ofLifeline and Link Up Reform and Modernization, WC Docket No. 11142 et al., Report and Order
and Further Notice of Proposed Rulemaking, FCC 12-I1, 1368 (rel. Feb. 6, 2012) (the "Lifeline Reform Order.").
7 See In the Matter of Connect America Fund, WC Docket No. 10-90 et al., Order on Reconsideration, FCC 11-189
(rel. Dec. 23, 2011); Lifeline Reform Order 1367. The FCC Order of December 23, 2011 removed from eligibility
numerous types of services that had previously been Supported Services, including dual-tone multi-frequency
signaling, single-party service, access to operator services, access to interexchange service, and access to directory
assistance. The Lifeline Reform Order removed toll limitation services from the list of Supported Services, but only
for those services that do not distinguish between toll and non-toll calls in the pricing of the service.
Page 6— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
provision of universal services.8
3.Advertising of Supported Services.
Section 214(e)(1)(B) of U.S.C. Title 47 and the Idaho ETC Order 9 require that an ETC
advertise the availability of Supported Services and the related charges using media of general
distribution. ETCs are also required to publicize the availability of Lifeline services in a manner
reasonably designed to reach those likely to qualify for such services.'0 Budget will advertise the
availability of the Supported Services throughout its designated service areas using media of
generally distribution in a manner that is designed to reach those likely to qualify for such
services. Budget will use a variety of media resources, including point of sale material of
various kinds, onsite merchandising, banners, customer direct mail, customer brochures,
television, and print media. A sample of Budget's marketing materials is attached as Exhibit 3.
In addition, Budget agrees to comply with all form and content requirements, if any,
promulgated by the FCC or the Commission in the future and required of all designated ETCs.
4.Forbearance from the Requirement that a Carrier Use its Own
Facilities to Supply the Supported Services.
Section 214(e)(1)(A) of U.S.C. Title 47 and Section 54.201(d) of C.F.R. Title 47 require
ETCs to offer the Supported Services, at least in part, over their own facilities. However, the
FCC has provided a blanket forbearance of the "own facilities" requirement for all ETC
applicants who meet two conditions." First, carriers must provide Lifeline subscribers with 911
and E91 I access, regardless of activation status and availability of minutes, and with E91 I
compliant handsets. Second, a carrier must obtain the FCC's approval of a compliance plan
° See Idaho ETC Order, App. § A.2.
Id. at App. §A.3.
1047 C.F.R. § 54.405(b).
' Lifeline Reform Order, IT 368, 373.
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dlbla Budget Mobile
describing (a) the safeguards it will implement against waste, fraud, and abuse to comply with
FCC requirements and (b) the carrier's Lifeline service plan offerings. Budget has met both of
these requisites for forbearance and thus has obtained a waiver of the "own facilities"
requirement.
As required by the Lifeline Reform Order, Budget will (a) provide its Lifeline customers
with 911 and E91 1 access regardless of activation status (if it provides the customer with prepaid
service) or availability of prepaid minutes; (b) provide 911 /E9 11-compliant handsets to all of its
Lifeline customers; and (c) replace, at no charge to customers, any non-compliant handset of an
existing customer who obtains Lifeline-supported services with a 911 /E91 1-compliant handset.
All Budget customers will have access to emergency calling services at the time that Lifeline
service is initiated, and such access will be available for Budget handsets even if the associated
account has no minutes remaining. Thus, Budget meets the first requisite for forbearance.
On May 1, 2012, Budget submitted a Compliance Plan for FCC approval in WC Docket
No. 09-197 and WC Docket No. 1l42.12 The Compliance Plan details the verification,
certification, and other anti-fraud measures Budget will take to comply with state and federal
requirements and to ensure that Lifeline support is provided only to consumers who are truly
eligible. On May 25, 2012, the FCC issued a public notice that it had approved Budget's
Compliance Plan. A copy of Budget's approved Compliance Plan is set forth as Exhibit 4, and a
copy of the FCC's approval is set forth as Exhibit 5. Since the FCC has approved its
Compliance Plan, Budget meets the second requisite for forbearance.
12 Budget submitted an initial Compliance Plan to the FCC on March 1, 2012, and subsequently submitted several
revised versions. The May 1, 2012 Compliance Plan was the final version, which the FCC approved on May 25,
2012.
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Consistent with the requirements of 47 C.F.R. § 54.201 (d)( 1), Budget is able to offer all
of the services and functionalities supported by the federal USF throughout its designated service
area. 13 The FCC has provided a blanket forbearance authorizing Budget to provide Lifeline
services without use of its "own facilities" so long as it meets E911 access requirements and
obtains approval of a compliance plan. Since it has obtained the FCC's approval of its
Compliance Plan, Budget is entitled to the FCC's blanket forbearance from the "own facilities"
requirement. While the Idaho ETC Order does not address a forbearance option '4, Budget has
satisfied or obtained a waiver of the requirements of Section 214(e)(1)(A) of U.S.C. Title 47 and
Section 54.201(d) of C.F.R. Title 47 and thus believes it has satisfied the intent of the
Commission's requirements.
C. Additional Eligibility Criteria.
The FCC has established additional criteria that ETC applicants should satisfy in order to
be designated as an ETC, which include: (1) a certification that the applicant will comply with
service requirements applicable to the support it receives; (2) a demonstration that the applicant
will remain functional in emergency situations; (3) a demonstration that the applicant will satisfy
applicable consumer protection and service quality standards; (4) a demonstration of financial
and technical ability to provide the Supported Services; and (5) provision of information
regarding the voice telephony Lifeline services it will provide. 15 The Commission has adopted
similar requirements and, in addition, requires a description of the ILEC's local usage plans. 16
13 See 47 C.F.R. § 54.101(a).
14 Idaho ETC Order, App. § A.2. ' 47 C.F.R. § 54.202 (eff. May 1, 2012).
16 Idaho ETC Order, App. § B.
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With regard to service offerings in tribal lands, an ETC applicant also must provide a copy of its
application to the appropriate tribal government or regulatory authority. 17
1. Applicable Service Requirements.
The FCC's rules at 47 C.F.R. § 54.202(a)(1)(i) require an ETC applicant to "[c]ertify
that it will comply with the service requirements applicable to the support that it receives." In
some cases, a service improvement plan must also be submitted.
a.Certification of Compliance with Service Requirements.
The version of 47 C.F.R. § 54.202 in effect through December 28, 2011 required that
carriers commit to provide service throughout their service area to all customers making a
reasonable request, provide service on a timely basis within its network, and provide service
within a reasonable period of time to customers outside its existing network coverage if service
could be provided at a reasonable cost by modifying or replacing the customer's equipment,
deploying a roof-mounted antenna, and using other methods. The Idaho ETC Order imposed
similar requirements. 18 However, 47 C.F.R. § 54.202 has recently been significantly amended to
remove the requirements above. If designated as a wireless ETC, Budget certifies that it will
comply with all service requirements applicable to Lifeline support funding, as detailed herein
and in its Compliance Plan at Exhibit 4. As a result, Budget meets the current requirements of
47 C.F.R. § 54.202(a)(1)(i) and believes it satisfies the intent of the Idaho ETC Order.
b.Service Improvement Plan.
For some carriers, the FCC requires the filing of a five-year service improvement plan
pursuant to 47 C.F.R. § 54.202(a)(1)(ii), and the Commission has alternatively required the filing
'7 1d. at App. § A.5.
'8 1d. at 8-9.
Page 10— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
of a two-year service plan. 19 However, the FCC's requirement does not apply to carriers seeking
only ETC status to provide Lifeline service to low income consumers. The Commission's Idaho
ETC Order suggested that the two-year service improvement plan requirement was designed to
demonstrate the ETC applicant's use of high-cost support .
20 The requirement that a new service
improvement plan and progress report be submitted annually and that a carrier annually certify as
to its use of federal high-cost support 2' similarly relate only to high-cost support. The FCC has
clarified that carriers seeking only Lifeline support are no longer subject to such requirements,
although they must still annually submit information related to the number of complaints
received, service outages, certification of compliance with service quality standards and
consumer protection rules, and certification of their ability to remain functional in emergency
situations .22 Thus, Budget believes the high-cost reporting and certification requirements are
inapplicable to a request for ETC designation for only low-income support. Budget respectfully
requests that the Commission either find that the high-cost support requirements listed above are
inapplicable to this Application or waive the requirements.
2. Ability to Remain Functional in Emergency Situations.
FCC rules, as adopted by the Idaho ETC Order, require that an ETC applicant
"[d]emonstrate its ability to remain functional in emergency situations."23 Budget has the ability
to remain functional in emergency situations in accordance with the Idaho ETC Order and
Section 54.202(a)(2) of the FCC's Rules, 47 C.F.R. § 54.202(a)(2). Budget has geographically
located its switching infrastructure in two locations. This network design is in an effort to
'9 1d at 21.
20 See Id. at 18.
21 See Id at App. § D.
22 C.F.R. § 54.422(b); Lifeline Reform Order 1389.
23 C.F.R. § 54.202(a)(2); see Idaho ETC Order, App. § B.2.
Page 11 - Application of Budget PrePay, Inc.
dlb/a Budget Mobile
eliminate a single isolated power incident from affecting traffic on Budget's network. All
facilities are equipped with both AC and DC battery backup as well as generators. All critical
equipment is also supplied with two separate power sources (or primary and redundant power
feeds).
Budget maintains multiple paths to reach its network. This is accomplished by using
multiple Internet Protocol ("IP") transit providers for all IP connectivity and an N+1
configuration for all Time Division Multiplexing connectivity. Once the origination traffic
reaches the Budget network, all elements are set up with the same N+1 configuration. The
configuration allows each element a primary and redundant path to terminate the traffic without
service interruption. In the event the main element fails or that element reaches maximum
capacity, Budget has designed the network to advance the traffic to one of three other elements
in the same N+1 configuration that is listed above.
Budget has built the voice network to be self-sustaining in the event of a failure. The
switching infrastructure will advance to the next termination carrier in route in the event of a
failure on any termination carrier's route. Budget maintains a Least Cost Routing engine that has
over 20 carriers available for every call.
Budget has redundant, geographically separated call centers with the capability to route
incoming calls as needed, and additional data processing capacity at each of its three data centers
that can accommodate extra workload as needed in the event of a systems outage. With daily
Grandfather-Father-Son backups, monthly offsite tape backup, and a tertiary optical backup of
critical Structured Query Language databases, data can be quickly restored in the event of a key
systems failure. Budget maintains 24x7x365 support agreements on all key systems, with four-
Page 12 Application of Budget PrePay, Inc.
d/b/a Budget Mobile
hour maximum response time specified where possible, so that technical support is always
available.
In the event of a service impacting event, an initial investigation and impact analysis
should determine whether the affected services can be restored within the timeframe of the
Maximum Tolerable Outage ("MTO"). If it is uncertain that services can be restored within the
MTO, a disaster is declared and a detailed incident investigation ensues. Based upon the results
Budget will either correct the affected service(s) or invoke disaster recovery activities, such as
routing all calls to the alternate call center and rerouting data and/or voice traffic to servers and
equipment in the unaffected data centers while the affected service is restored.
Budget's underlying wireless providers, Sprint and Verizon Wireless, have indicated that
they implement best practices in business continuity and have very robust emergency response
and disaster recovery capabilities which enable quick restoration of impacted services following
a disaster and mitigates congestion risks through traffic management algorithms to handle the
overload surges in traffic. Additionally, their disaster recovery response teams proactively
monitor congestion and performance of the wireless network and determine the appropriate
course of action. This may include performing parameter changes, adding additional capacity to
the network via radio installations to cell sites and/or by adding additional backhaul. Cell Site
On-Wheels ("COW") and Satellite On-Light-Trucks ("SatCOLT") may also be used to replace
and/or expand Budget's underlying provider's foot print or add additional capacity to the
network. In addition, both Sprint and Verizon Wireless are ETCs and have certified to the FCC
Page 13 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
that they are both able to function in emergency situations in accordance with 47 C.F.R.
54.202(a)(2).24
3.Consumer Protection and Commitment to Provide Quality Service.
If designated as a wireless ETC, Budget will satisfy all applicable consumer protection
and service quality standards provided in Section 54.202(a)(3) of C.F.R. Title 47 and the Idaho
ETC Order, as well as all applicable state-specific consumer protection and service quality
standards, and will commit that all universal service fund support received by Budget will be
directly reflected in the price that eligible customers pay. In addition, as required by
Section 54.202(a)(3) and the Idaho ETC Order 25, Budget will comply with the Cellular
Telecommunications and Internet Association's Consumer Code for Wireless Service. It will
also protect Customer Proprietary Network Information. Through the use of resold services and
its own facilities, Budget will be able to provide the same quality and reliability as that currently
provided by other wireless providers. Budget's contractual arrangements and its own facilities
are designed to minimize any failures, provide alternate call routing, and expedite recovery in the
event a failure occurs. Budget affirms its commitment to continue to satisfy or exceed applicable
consumer protection and service quality standards.
4.Financial and Technical Capability.
As required by the Lifeline Reform Order 26 and federal regulations,27 Budget is
financially and technically capable of providing supported Lifeline services. Budget, based in
24 See, e.g., Sprint Nextel Corporation Verified Filing in Compliance with 47 C.F.R. § 54.209, CC Docket No. 96-
45, at 6 (filed Oct. 1, 2010); Ailtel Communications, LLC dlb/a Verizon Wireless 2010 Eligible
Telecommunications Carrier Certification and Annual Report for the State of Georgia, pursuant to 47 U.S.C. §
254(e), 47 C.F.R. §§ 54.3 13, 54.3 14, 54.202(a) and 54.209(b), WC Docket No. 09-197, at 8-9 (filed Sept. 30,
2010).
25 Idaho ETC Order, App. § 13.3.
See Lifeline Reform Order $1387-88.
27See 47 C.F.R. § 54.202(a)(4).
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Bossier City, Louisiana, has been in business since 1996. For its wireless services in Idaho, the
Company intends to resell the services of Sprint and Verizon Wireless. The Company has been
designated as an ETC for wireless services in the states of Arkansas, Kentucky, Louisiana,
Maryland, Rhode Island, Wisconsin, Nevada, Pennsylvania and Michigan, and is currently
offering, or will begin offering, Lifeline service in each of these states. 28 Biographies of
Budget's President and Chief Financial Officer are provided at Exhibit 6. Budget operates its
wireless business under the name Budget Mobile, and it operates its wireline business under the
name Budget Phone.
Budget currently derives the majority of its revenue from selling low-cost prepaid
telephone services on a nationwide basis to thousands of customers and employs approximately
340 people nationally. Budget owns and operates its own switching facilities in Dallas, Texas
and Shreveport, Louisiana. In addition, Budget has invested millions of dollars in software
development, including its own customized, user friendly point-of-sale software.
Budget has not been subject to any enforcement action at the FCC or in any state. No
ETC designations held by Budget have been rescinded, revoked or terminated by the FCC or by
any state.
5. Terms and Conditions of Lifeline Service Plans.
An ETC is required to provide information on the terms and conditions of the
telecommunications plans it offers to Lifeline subscribers 29 and a description of the ILEC's
plan. 30 Though Budget may offer additional plans in the future, its initial Lifeline service
28 Budget also has been designated as an ETC for wireline services in Tennessee, Oklahoma, Alabama, Florida,
Nebraska, Maryland, Louisiana, Mississippi, Arkansas, Kentucky, Michigan, Missouri, North Carolina, and South
Carolina. The Company does not seek ETC designation for its wireline services in this Application.
2947 C.F.R. § 54.202(a)(5); Idaho ETC Order 12.
30 Idaho ETC Order, App. § B.4.
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offering will include an "active user talk & text" wireless plan that will provide 4,000 combined
texts and local and domestic minutes, as well as a free plan providing 250 minutes of local and
domestic toll usage, as further detailed below and in Budget's Compliance Plan at Exhibit 4.
Lifeline Service: Budget will offer two wireless prepaid federal USF offerings
throughout its designated service area: the Active User Talk & Text Plan and the Free 250
Minute Talk Plan. A summary of each is provided below.
Active User Talk & Text Plan: This prepaid service provides 4,000 combined voice
minutes and text messages. 3 ' The plan includes local and domestic long distance calling, texting,
caller ID, call waiting and voicemail. Customers can add additional minutes at $5.00 intervals
and data/pic packages for $15.00. Customers will receive a free handset or can purchase an
upgraded handset from Budget.
Non-Lifeline $34.25
Federal Lifeline Credit ($9.25) 32
Active User Talk & Text
Lifeline Price $25.00
Free 250 Minute Talk Plan: This prepaid service provides 250 minutes of local and
domestic long distance calling, caller ID, call waiting and basic voicemail. Customers will
receive a free handset, or they can purchase an upgraded handset from Budget. Customers can
add additional airtime in denominations and at the rates indicated below. Customers can
purchase additional minutes at $5.00 intervals, data/pic packages at $15.00 and a text-message
add-on for $10.00.
31 Each text counts as one voice minute.
Budget will seek reimbursements for all non-Tribal Lifeline customers at $9.25 on an interim basis, pursuant to
Lifeline Reform Order ¶ 58, pending the outcome of the FCC's request for comments on aspects of Lifeline support
in Lifeline Reform Order ¶11 404-15. The FCC imposed a May 1, 2012 deadline for most Lifeline Reform Order
requirements but has since provided a waiver that makes the use of a $9.25 flat rate optional through July 31, 2012
and mandatory thereafter. See FCC, Public Notice DA 12-689 (rel. May 1, 2012).
Page 16— Application of Budget PrePay, Inc.
dIb/a Budget Mobile
Non-Lifeline $9.25
Federal Lifeline Credit ($9.25)
250 Minute Talk Plan
Lifeline Price FREE
Additional Minutes $ 5.00 - 50 minutes
$10.00— 100 minutes
$15.00— 150 minutes
Tribal Lifeline Offerings: Budget's prospective service area encompasses tribal areas,
and Budget intends to offer the Active User Talk &Text Plan for free to eligible tribal
customers. 33 The Active User Talk & Text Plan offered in tribal areas will share the same
features as that offered in non-tribal areas, including 4,000 minutes of combined local and
domestic long distance calling and texting, caller ID, call waiting and voicemail. Tribal
customers can add additional minutes at $5.00 intervals and data/pie packages for $15.00. Tribal
customers will receive a free handset or can purchase an upgraded handset from Budget.
Description of ILEC Plan: While ILEC offerings vary across geographic regions,
QwestlCenturyLink has advertised several popular options. 34 For unbundled residential
telephone service, its offerings include a "Home Phone Plus Plan" that starts at $35.00 per
month. For the applicable price, customers receive unlimited local calling, choices among ten
popular calling features, and long distance calls at a cost of $.05 per minute. Qwest's "Home
Phone Unlimited Plan" starts at $45.00 per month. This plan offers unlimited local and domestic
long distance, as well as choices among ten of Qwest' s popular features. Qwest' s telephone
plans can be bundled with high-speed internet at prices starting at $54.95. While one-time
activation fees may vary, Budget believes they are commonly around $30.00.
For tribal areas, Budget will seek Tier 4 reimbursement, which provides up to $34.25 for monthly Lifeline
support. See Lifeline Reform Order 1270.
34 See, e.g., Qwest Is Now CenturyLinkTM! Home Phone Service Starts At Only $35 .00/month!,
http://www.connectniyphofle.comJQwest/jndex.html.
Page 17 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
Budget offers high-quality, high-value Lifeline services that Budget believes compare
favorably to Idaho ILEC offerings. One of Budget's offerings would be completely free to
Lifeline users who select it. To Budget's knowledge, no Idaho ILEC offers its customers a
comparable free service. Budget's Active User Talk & Text Plan Lifeline offering would
provide a large number of monthly minutes and texts —4,000 minutes and texts - at a customer
charge of only $25.00. Each of Budget's Lifeline offerings include, at no extra charge, several
popular features for which ILECs typically charge separately: local and domestic long distance
calling, caller ID, call waiting and voicemail. Furthermore, Budget's Lifeline customers are not
subject to credit check or deposit requirements. Budget does not charge a service activation fee
for its Lifeline offerings. Customers are not required to bundle their service with any other to
obtain favorable rates. Budget's Lifeline customers can have the benefits of mobility offered by
wireless service but are not bound to a two-year contract term, as is commonly required for
wireless service.
6. Tribal Notification
As required by the Idaho ETC Order, Budget will provide a copy of this Application to
"the affected tribal government or tribal regulatory authority"35 of the tribal areas it intends to
serve. The applicable tribal areas include those of the Nez Perce Tribe, the Shoshone-Bannock
Tribe, and the Coeur D'Alene Tribe.
D. The ETC Designation Request is Consistent with Recent Commission
Precedent.
The Commission's grant of Budget's request for wireless ETC designation would be
consistent with the Commission's recent designation of other carriers as wireless ETCs,
Idaho ETC Order, App. § A.5.
Page 18 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
including, but not limited to, TracFone Wireless, Inc. and Cricket Communications, Inc., both of
which received ETC designation as to rural and urban areas. 36 Budget requests that the
Commission expeditiously process this ETC Application so that it can quickly commence
providing qualifying low-income Idaho customers with affordable USF-supported wireless
services during these challenging economic times for all Idaho residents.
III. DESIGNATION OF BUDGET AS A WIRELESS ETC WILL PROMOTE THE
PUBLIC INTEREST.
A. Benefits to Customers.
Budget's ETC designation is required to be in the public interest. 37 Although "Congress
did not establish specific criteria to be applied under the public interest test," the FCC did
establish that "the public interest benefits of a particular ETC designation" should be analyzed in
a manner consistent with U.S.C. Title 47's purposes, including the "goals of preserving and
advancing universal service, ensuring the availability of quality telecommunications at just,
reasonable, and affordable rates, and promoting the deployment of advanced telecommunications
and information services to all regions of the nation, including rural and high-cost areas."38 In
recent orders, the FCC has continued to affirm its commitment to ensuring that all Americans,
including those in rural areas, have access to high-quality telecommunications services. 39
Additionally, the FCC established that "a variety of factors" are applicable "in the overall ETC
36 generally In the Matter of the Amended Application of TracFone Wireless, Inc. for Designation as an EligibleSee
Telecommunications Carrier, Case No. TFW-T-09-01, Order No. 32550 (May 18, 2012); In the Matter of the
Application of Cricket Communications, Inc. for Designation as an Eligible Telecommunications Carrier Pursuant to
47 U.S.C. § 214(e)(2), Case No. CRI-T-1 1-01, Order No. 32501 (Mar. 27, 2012) (the "Cricket Order").
3747 U.S.C. § 214(e)(2), (e)(6); 47 C.F.R. § 54.202(c); Idaho ETC Order 21.
Federal-State Joint Board on Universal Service, CC Docket No. 96-45, FCC Docket No. 05-46, Report and
Order, 20 FCC Rcd 6371, at 140 (rel. Mar. 17, 2005).
In the Matter of Lifeline and Link Up Reform and Modernization, WC Docket No. 1142 et al., Report and Order
and Further Notice of Proposed Rulemaking 151 (rel. Feb. 6, 2012) ("All Americans in all parts of the nation,
including those in rural, insular, and high-cost areas, should have access to affordable modem communications
networks capable of supporting the necessary applications that empower them to learn, work, create, and
innovate."); see also 47 U.S.C. § 254(b).
Page 19 - Application of Budget PrePay, Inc.
dfb/a Budget Mobile
determination, including the benefits of increased consumer choice, and the unique advantages
and disadvantages of the competitor's service offering."40 The Commission has stated that it will
consider many factors, including the benefits of consumer choice, the unique advantages of
service offerings, cream skimming, if applicable, and "any other factors it deems relevant."41
Budget believes that providing discounted wireless service in both rural and urban areas
is consistent with the public interest. The following information demonstrates that Budget's
designation as a wireless ETC is consistent with the public interest, convenience, and necessity
and will provide consumers with increased competitive choice through the offering of a unique
service at rates that are just, reasonable and affordable. All of this will further federal legislative
goals of ensuring that all Idahoans have access to affordable basic telephone services. 42
The public interest benefits associated with Budget's wireless service include larger local
calling areas (as compared to traditional wireline carriers), and the convenience, security and
mobility afforded by mobile telephone service. Further, Budget's offerings provide increased
competitive choice, allowing customers to select from various options ranging from a high value
wireless plan that provides 4,000 minutes of local and domestic calling and texting to a free plan
that includes 250 calling minutes. The ability of the customer to select between prepaid
offerings that include 4,000 minutes or 250 minutes removes the risk of any customer becoming
burdened with large and unexpected toll charges and unexpected overage charges. Additionally,
wireless service greatly benefits consumers whose lifestyles involve commuting or travel.
Budget's unique pre-paid options are designed to provide consumers who, due to credit
or deposit requirements, may not be able to obtain the safety and convenience of telephone
40 Federal-State Joint Board on Universal Service, CC Docket No. 96-45, FCC Docket No. 05-46, Report and Order,
20 FCC Rcd 6371, at 141 (rd. Mar. 17, 2005).
41 Idaho ETC Order 16.
4247 U.S.C. § 254(b).
Page 20— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
service from traditional providers, and a Budget customer is never obligated for more than
30 days. Unlike many wireless providers, Budget offers, among other services, a high-value
wireless service that includes 4,000 combined texts and local and domestic voice minutes, caller
ID, call waiting and voicemail, all without the requisite credit check, deposit, service activation
fees and contract requirements of the more traditional wireless and wireless service providers.
Budget believes that its offerings, including a plan that provides 250 free minutes to Lifeline
customers, provide unique value as compared to those currently offered in Idaho by ILECs and
current wireless ETC designees. 43 Thus, Budget would provide highly competitive options to
Idaho Lifeline customers.
Because Budget's service is provided with no credit check, deposit requirement,
minimum service periods, service activation fees or early termination fees, the service will be an
attractive and affordable alternative to qualified low-income consumers without regard to age,
residency, or creditworthiness. Providing Budget with the authority necessary to offer
discounted Lifeline services to those most in danger of losing wireless services altogether
promotes the public interest by ensuring that such customers have high-quality wireless options
at an affordable price.
Wireless ETC designation in Idaho would enable Budget to offer appealing and
affordable service offerings to low-income Idaho customers to ensure that they are able to afford
wireless services on a consistent and uninterrupted basis. Prepaid wireless services have become
essential for lower-income customers, providing them with value for their money, access to
For example, while Cricket Communications, Inc. offers a wide variety of Lifeline plans, its least expensive
options begin at $35.00. In the Matter of the Application of Cricket Communications, Inc. for Designation as an
Eligible Telecommunications Carrier Pursuant to 47 U.S.C. § 214(e)(2), Case No. CRI-T- 11-01, Application of
Cricket Communications, Inc. for Designation as an Eligible Telecommunications Carrier Pursuant to 47 U.S.C. §
214(e)(2) at Exhibit C (Nov. 7, 2011) (the "Cricket Application").
Page 21 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
emergency services on wireless devices, and a reliable means of contact for prospective
employers, social service agencies or dependents. Additionally, Budget intends to provide such
benefits without seeking high-cost support funding. Thus, it believes its application does not
raise concerns regarding cream-skimming.
As noted in the Cricket Application, the FCC and this Commission have consistently
recognized that increased competition is beneficial in rural, as well as in non-rural, areas. 44 The
most recent available data suggests that only 10-20% of eligible Idaho customers currently
participate in the Lifeline program, 45 which indicates that there is significant need in Idaho for
the services Budget proposes to provide. Budget believes its Lifeline choices will be attractive
and highly competitive options for Lifeline customers in both rural and urban areas of Idaho.
The wireless service offered by Budget will provide consumers with a convenient and affordable
alternative to traditional telecommunications service that can be used while at home and away
from home. Because of these benefits, Budget expects that many qualified Idaho consumers,
both rural and urban, will select its wireless Lifeline services in lieu of the more traditional
wireline or wireless services.
B. Other Public Interest Benefits.
As further described in Section V, Budget will contribute to the Idaho Telephone Service
Assistance Program and the Idaho Emergency Communications Act Fund.
" See Cricket Application 15-16 (citing In the Matter of the Petition of Edge Wireless, LLC for Designation as an
Eligible Telecommunications Carrier Under 47 U.S.C. § 214(e)(2), Case No. EDG-T-07-01, Order No. 30360 at 14
(June 29, 2007); In the Matter of the Federal-State Joint Board on Universal Service, Western Wireless Corp.
Petition for Designation as an Eligible Telecommunications Carrier in the State of Wyoming, CC Docket No. 96-45,
Memorandum and Opinion Order, DA. 00-2896, 117 (rel. Dec. 26, 2000)).
See Universal Service Administrative Company, 2010 Lifeline Participation Rates by State (Feb. 15, 2011),
available at
Page 22— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
The FCC's Lifeline Reform Order requires ETC applicants to take numerous steps to
combat the potential for fraud. Budget will comply with all FCC requirements and will also
make voluntary commitments to combat the potential for waste, fraud and abuse with respect to
its provision of Lifeline services in Idaho, as described below and in Budget's Compliance Plan
at Exhibit 4:
• Budget will implement a 60-day inactivity policy for subscribers of pre-paid services and
will notify customers of the inactivity policy at the time of service initiation. Under this
policy, if no usage appears on a Budget prepaid Lifeline customer's account during any
continuous 60-day period, Budget will deactivate Lifeline services for that customer. For
the purposes of Budget's deactivation policy, usage will occur when a customer makes a
voice call, receives a voice call from anyone other than a Budget representative, makes a
monthly payment, purchases additional minutes, or affirmatively responds to a direct
contact from Budget confirming that the customer wishes to continue Lifeline services.
• Budget will follow any established FCC or Commission procedures to comply with the
"one-per-household rule" for Lifeline support. In addition, Budget will make available
state-specific customer data, including name and address, to the Universal Service
Administrative Company ("USAC") and to the Commission for the purpose of permitting
USAC or the Commission to determine whether an existing Budget Lifeline customer
receives Lifeline service from another carrier. Budget will promptly investigate any
notification that it receives from USAC or the Commission that one of its customers
already receives Lifeline service from another carrier. Should the Company's
investigation conclude that the customer receives Lifeline services from another carrier in
violation of applicable regulations, or if otherwise directed by USAC or the Commission,
Budget will immediately notify the customer and no longer report that customer on
USAC Form 497. Budget will de-enroll within ten business days any subscriber whom
Budget discovers is receiving Lifeline services from another ETC or is otherwise not
eligible. If USAC informs Budget that a subscriber is receiving duplicative support,
Budget will de-enroll that subscriber within five business days.
• Budget will (1) require (a) each employee to access an electronic database (if applicable)
or (b) each customer to provide proof of documentation to determine eligibility at initial
enrollment and annually thereafter require each customer to self-certify his or her
continued Lifeline eligibility and that he or she is the head of household and receives
Lifeline-supported service only from Budget; (2) establish safeguards to prevent its
customers from receiving multiple Lifeline subsidies at the same address; (3) deal
directly with the customer to certify and verify the customer's Lifeline eligibility and/or
check electronic eligibility databases, where available; and (4) certify that it is in full
compliance with any applicable 911/E911 obligations, including obligations relating to
Page 23 - Application of Budget PrePay, Inc.
d/b/a Budget Mobile
the provision and support of 911 and E91 I service, for each state in which Budget is
designated as an ETC.
• Budget will ensure that the penalty for perjury language is clearly stated on its Lifeline
certification form, and it will track its Lifeline customer's primary residential address in a
database and prohibit more than one supported Budget service at each residential address.
Budget's Lifeline certification form will include a disclosure section on which a Lifeline
applicant must initial disclosure statements. Additionally, Budget will maintain the
customer's self-certification and provide the documentation to the Commission upon
request. It will collect all required information, including the customer's date of birth and
the last 4 digits of the customer's social security number or Tribal ID number, and will
provide financial and enrollment data to the National Lifeline Accountability Database,
once it is established.
• Budget will distribute its Lifeline service directly to its Lifeline customers. Budget will
deal directly with the customer to certify and verify the customer's initial and continued
Lifeline eligibility, including through the web, mail, internet, telephone, and its agents.
Budget will provide Lifeline-specific training to all personnel who interact with actual or
prospective customers with respect to obtaining, changing, or terminating Lifeline
services. Budget's marketing materials will provide clear information about the Lifeline
program, including that the law limits the Lifeline program to one phone per household.
IV. BUDGET WILL COMPLY WITH LIFELINE CERTIFICATION AND
VERIFICATION REQUIREMENTS.
Sections 54.4 10 and 54.4 16 of C.F.R. Title 47 require ETCs to comply with
requirements of initial certification of eligibility and verification for continued eligibility for
participation in the Lifeline programs. Budget commits that it will certify and verify consumer
eligibility in accordance with applicable FCC rules governing both certification and verification
of Lifeline eligibility, including the requirement that Budget re-certify the eligibility of its
current Lifeline subscribers and report the results to USAC by January 31, 2013. Budget has
developed a detailed compliance policy that includes the Company's procedures for initial
certification of eligibility and the verification of continued eligibility for participation in these
vital low-income programs as detailed in Exhibit 4. Budget also commits to comply with any
Page 24— Application of Budget PrePay, Inc.
dib/a Budget Mobile
applicable Lifeline eligibility requirements developed by the Commission or the Idaho
Legislature.
V.OTHER REQUIREMENTS.
Budget will comply with all applicable state and federal laws and regulations in
providing and administering its services in Idaho. In particular, it will comply with the annual
certification requirements adopted by the Idaho ETC Order 46 exceptfor the requirements related
solely to high-cost support. As explained in more detail in Section II.C. Lb, Budget believes
those requirements are inapplicable, as it is not seeking high-cost funding. It therefore requests
that this Commission find such requirements inapplicable or waive those requirements.
Budget will collect and remit all applicable surcharges and pay applicable taxes and fees,
including those related to universal service funding pursuant to chapter 9 of title 56 of the Idaho
Code and the emergency communications fee collected pursuant to Idaho Code § 31-4804.
Budget will continue to comply with any applicable certification and verification processes
developed by the FCC and by the Commission.
VI.ANTI-DRUG ABUSE CERTIFICATION.
No party to this Application is subject to denial of federal benefits pursuant to Section
5301 of the Anti-Drug Abuse Act of 1988, 21 U.S.C. § 862.
VII.RELIEF REQUESTED.
Because, as the foregoing demonstrates, Budget meets all the requirements for ETC
designation, and such designation would be in the public interest, Budget respectfully requests
that the Commission, at the earliest possible time (a) designate Budget as a wireless ETC
throughout the State of Idaho for the purpose of receiving federal universal service support for
46 Idaho ETC Order 18-19.
Page 25— Application of Budget PrePay, Inc.
dlbla Budget Mobile
Lifeline services and (b) either find inapplicable or waive requirements related solely to high-
cost funding, including initial and annual provision of a network improvement plan, provision of
related progress reports and certification as to use of high-cost funds.
Page 26— Application of Budget PrePay, Inc.
d/b/a Budget Mobile
RESPECTFULLY SUBMITTED this 19th day of July, 2012.
HOLLAND & HART LLP
L-& -/-~ oe
Pamela S. Howland, ISB No. 6177
Suite 1400, U.S. Bank Plaza
101 South Capitol Boulevard
P.O. Box 2527
Boise, Idaho 83701-2527
Telephone: [phone]
Facsimile: [phone]
Thorvald A. Nelson
Sara Kerkhoff Rundell
Holland and Hart LLP
6380 South Fiddlers Green Circle, Suite 500
Greenwood Village, CO 80111
Telephone: [phone]
Facsimile: [phone]
Todd B. Lantor
Lukas, Nace, Gutierrez & Sachs, LLP
8300 Greensboro Drive, Suite 1200
McLean, VA 22102
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Attorneys for Budget PrePay, Inc.
dlbla Budget Mobile
Nez Perce
Nez Perce Tribe
P.O. Box 305
Lapwai, ID 83540
Fort Hall
Shoshone-Bannock Tribes
Tribal Attorneys' Office
Tribal Business Center
P.O. Box 306
Fort Hall, ID 83203
LI Hand Delivery
U.S. Mail, postage pre-paid
LI Facsimile
LI Electronic Mail
LI Hand Delivery
U.S. Mail, postage pre-paid
LI Facsimile
LI Electronic Mail
CERTIFICATE OF SERVICE
I hereby certify that on this 19th day of July, 2012, I served a true and correct copy of the
foregoing APPLICATION OF BUDGET PREPAY, INC. DIB/A BUDGET MOBILE FOR
DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER PURSUANT
TO 47 U.S.C. §214(e)(2) upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Jean Jewell, Commission Secretary
Idaho Public Utilities Commission
472 W. Washington Street (83720)
P0 Box 83720
Boise, ID 83702
[e-mail]
Commission Staff
Neil Price, Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street (83720)
P0 Box 83720
Boise, ID 83702
Neil.price(puc.idaho.gov
Hand Delivery
LI U.S. Mail, postage pre-paid
LI Facsimile
Electronic Mail
LI Hand Delivery
LI U.S. Mail, postage pre-paid
LI Facsimile
Electronic Mail
Coeur D'Alene
Coeur D'Alene Tribe
850 A Street
Plummer, ID 83851
F-1 Hand Delivery
U.S. Mail, postage pre-paid
El Facsimile
El Electronic Mail
Holland & Hart LLP
5654950_5.DOCX
Budget PrePay, Inc.
d/b/a Budget Mobile
MI on] hiI
CERTIFICATE OF AUTHORITY
Budget PrePay, Inc.
d/b/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 1
State of. Idaho
I $ -
CERTIFICATE OF AUTHORITY
OF
BUDGET PREPAY, INC.
Ede Number C.174473
1, BEN YSURSA, Secretary of State of the State of Idaho, hereby certify that an
Application for Certificate of Authonty, duly executed pursuant to the provisions of the
Idaho Business Corporation Act, has been received in this office and is found to
conform to law. . .. .
ACCORDINGLY and by virtue of the authority vested In me by law, I issue this
Certificate of Authority to transact business in this State and attach hereto a duplicate of
the application for such certificate
Dated August 9, 2007
0 SECRETARY OF STATE
By
* -p
FILED EFFECTIVE
APPLICATION FOR CERTIFICATE OF AU1flpJITYI(For Profit)
Ønstnàctlons on Beck ofAppticatipj) P$ 2:
To the Secretary of State of Idaho:
The undesigned Corporation apphes for a Certificate olAiEhodty and Sa$OP 3IATE
1. The nameof the corporation ts Budget PrePay, Inc. '486
• 2. The name which it Owl use m Who is
3. 1 is incorporated under the laws of Louisiana
• 4. its date orincorporationis May O
5.The address of its prinepal ofte is 1325 Barksdale Blvd., Suite 200, BossIer City, LA 11111
6.The address to wtiith coir spondence should be addressed, If different from Kom 5. is
1325 Barksdale Blvd., Suite 200, Bossier City, LA 71111
7.The street address of its registered office in Idaho_5481 Kendall St., Rots., ID 83706 is
- , and s motored agent in Idaho at that address and Services, Inc. -
8.The names and respective business addresses of its directors and officers are:
Name Office Address
See Attached
Dated: 7 I1(1)o7
Budget PrePay, Inc.
lon none)
By
Director of Operations
(specify capacity of signer)
CustornerAcS: II *ldacccw
Secretaty of State use only
I
IDIIO SEIRETARY OF STATE 0 8/09,'2007 85see CKi 111764 CTi 216319 Mj 1116999 1,1Bs.ea a ise.ve MMpfw1E
LIST OF OFFICERS & DIRECTORS OF
Budget PrePay,Inc.
Officers
R. Daniel Hyde, Jr. President
Tony Cason Manager of Operations
R. Daniel Hyde, Ill Secretary
Stephen Hyde Regional Sales Manager
Directors
RDanlelHyde,Jr.
Tony Cason
R. Daniel Hyde, m
Stephen Hyde
AN the above referenced Officers & Directors can be reached at
1325 Barksdale Blvd., Bossier City, LouisIana 71111
.1
United States of America
State of Louisiana
As Secretary of State, Jay Dardenne, I do hereby Certify that
BUDGET PREPAY, INC.
A corporation domiciled in BOSSIER CITY, LOUISIANA,
Piled charter and qualified to do business in this State on
May 1, 1996,
I further certify that the records of this Office indicate
the corporation has paid all fees due the Secretary of
State, and so far as the Office of the Secretary of State is
concerned is in good standing and is authorized to do
business in this State.
I further certify that this Certificate is not intended to
reflect the financial condition of this corporation since
this information is not available from the records of this
Office.
In testimony whereof, I have hereunto set
My hand and caused the Seal of my Office
To be affixed at the City of Baton Rouge on,
AuusJf2 007
Secretary of State
34525907D
CertifIcate ID: 20070801006368
To validate this catificate, visit the Moving wth site,
go to Commercial Division, Validate Certificate, then
follow the 1nsxuctions displayed
www.sosJosIslana.gov
Budget PrePay, Inc.
dlb/a Budget Mobile
EXHIBIT 2
MAP AND LIST OF WIRE CENTERS OF
PROPOSED SERVICE AREA
Budget PrePay, Inc.
dlb/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 2
Legend
* Populated City
Boundary of State of Idaho
Wire Centers to be Included
(By Company)
S ALBION TELEPHONE CO. DBAATC COMMUNICATIONS (11) • CAMBRIDGE TELEPHONE COMPANY (4) • COLUMBINE TELCO DBA SILVER STAR COMMUNICATIONS (1) • DIRECT COMMUNICATIONS ROCKLAND, INC. (3)
El FARMERS MUTUAL TELEPHONE CO. (2)
FILER MUTUAL TELEPHONE CO. (2)
E FREMONT TELCOM CO (1) • INLAND TELEPHONE CO. (1) • MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. (5) • OREGON - IDAHO UTILITIES, INC. (1)
El POTLATCH TELEPHONE CO., INC. (3)
LII PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. (5) • QWEST CORPORATION (69) • SILVER STAR TELEPHONE CO., INC. (2)
El VERIZON NORTHWEST INC-ID (25)
M VERIZON NORTHWEST INC.-WA (1)
EI
List of Rural and Non-Rural Wire Centers
Within Budget Proposed
ETC Service Area
Rural Wire Centers
Company Wire Center
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS ALBNIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS ALMOIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS ARCOIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS ELBAIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS RLBKIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS HOWEIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS MALTIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS MCKYIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS MLCYIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS MOORIDXC
ALBION TELEPHONE CO. DBA ATC COMMUNICATIONS RFRVIDXC
CAMBRIDGE TELEPHONE COMPANY CMBRIDXC
CAMBRIDGE TELEPHONE COMPANY CNCLIDXC
CAMBRIDGE TELEPHONE COMPANY CPRMIDXC
CAMBRIDGE TELEPHONE COMPANY LWMNIDXC
COLUMBINE TELCO DBA SILVER STAR COMMUNICATIPMS DRGSIDMA
DIRECT COMMUNICATIONS ROCKLAND, INC. ARBNIDXC
DIRECT COMMUNICATIONS ROCKLAND, INC. PARSIDXC
DIRECT COMMUNICATIONS ROCKLAND, INC. RKLDIDXC
FARMERS MUTUAL TELEPHONE CO. FRLDIDXX
FARMERS MUTUAL TELEPHONE CO. NUARIDXC
FILER MUTUAL TELEPHONE CO. FILRIDAA
FILER MUTUAL TELEPHONE CO. HLSTIDXC
FREMONT TELCOM CO STATIDMA
INLAND TELEPHONE CO. LENRIDXA
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. DUBSIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. HAMRIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. KLG1UDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. MNVWIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION, INC. TRTNIDXC
OREGON - IDAHO UTILITIES, INC. SOMTIDXC
POTLATCH TELEPHONE CO., INC. JLTTIDXA
POTLATCH TELEPHONE CO., INC. KNDIUDXX
POTLATCH TELEPHONE CO., INC. TROYIDXX
PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. MNDKIDXC
PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. NRLDIDXC
PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. OKLYIDXC
Note: To the extent that any wire centers have been inadvertently excluded from this Exhibit, Budget intends to
serve the entirety of the rural and non-rural incumbent local exchange carrier wire centers identified.
PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. PAULIDXC
PROJECT MUTUAL TELEPHONE COOP. ASSOCIATION, INC. RPRTIDXC
SILVER STAR TELEPHONE CO., INC. IRWNIDXC
SILVER STAR TELEPHONE CO., INC. WAYNIDXC
Non-Rural Wire Centers
Company Wire Center
QWEST CORPORATION AMFLIDMA
QWEST CORPORATION BLFTIDMA
QWEST CORPORATION BLSSIDMA
QWEST CORPORATION BNCRIDMA
QWEST CORPORATION BOISIDMA
QWEST CORPORATION BOISIDNW
QWEST CORPORATION BOISIDSW
QWEST CORPORATION BOISIDWE
QWEST CORPORATION BRLYIDMA
QWEST CORPORATION BUIHLIDMA
QWEST CORPORATION CLWLIDMA
QWEST CORPORATION CRGMIDO1
QWEST CORPORATION CSFRIDMA
QWEST CORPORATION CTWDIDO1
QWEST CORPORATION DECLIDMA
QWEST CORPORATION DWNYIDMA
QWEST CORPORATION DYTNIDMA
QWEST CORPORATION EAGLIDNM
QWEST CORPORATION EDHZIDMA
QWEST CORPORATION EMMTIDMA
QWEST CORPORATION FKLNIDMA
QWEST CORPORATION FRTHIDMA
QWEST CORPORATION GAVLID01
QWEST CORPORATION GDNGIDMA
QWEST CORPORATION GLFYIDMA
QWEST CORPORATION GRACIDMA
QWEST CORPORATION HALYIDMA
QWEST CORPORATION HGMNIDMA
QWEST CORPORATION IDCYIDMA
QWEST CORPORATION IDFLIDMA
QWEST CORPORATION INKMIDMA
QWEST CORPORATION JERMIDNM
QWEST CORPORATION KAMHIDO1
QWEST CORPORATION KMBRIDMA
QWEST CORPORATION KOSKID01
Note: To the extent that any wire centers have been inadvertently excluded from this Exhibit, Budget intends to
serve the entirety of the rural and non-rural incumbent local exchange carrier wire centers identified.
QWEST CORPORATION KTCHIDMA
QWEST CORPORATION KUNAIDMA
QWEST CORPORATION LAP WIDO1
QWEST CORPORATION LHSPIDMA
QWEST CORPORATION LSMNIDMA
QWEST CORPORATION LSTNIDSH
QWEST CORPORATION MCCMII)MA
QWEST CORPORATION MDTNIDMA
QWEST CORPORATION MELBIDMA
QWEST CORPORATION MRDNIDMA
QWEST CORPORATION MRTGIDMA
QWEST CORPORATION MTHOIDMA
QWEST CORPORATION MTHOIDSO
QWEST CORPORATION MTPLIDMA
QWEST CORPORATION NMPAIDMA
QWEST CORPORATION NPMOIDMA
QWEST CORPORATION NZP1UDO1
QWEST CORPORATION PCTLIDMA
QWEST CORPORATION PCTLIDNO
QWEST CORPORATION PSTNIDMA
QWEST CORPORATION PY1TIDMA
QWEST CORPORATION RBRTIDMA
QWEST CORPORATION RGBYIDMA
QWEST CORPORATION RIRIIDMA
QWEST CORPORATION RYSDIDMA
QWEST CORPORATION RXBGIDMA
QWEST CORPORATION SDSPIDMA
QWEST CORPORATION SHLYIDMA
QWEST CORPORATION SHSHIDMA
QWEST CORPORATION STARIDNM
QWEST CORPORATION THTCIDMA
QWEST CORPORATION TWFLIDMA
QWEST CORPORATION WESRIDMA
QWEST CORPORATION WNDLIDMA
VERIZON NORTHWEST INC.-ID BNFYIDXX
VERIZON NORTHWEST INC.-ID BOVLIDXX
VERIZON NORTHWEST INC.-ID BYVWIDXX
VERIZON NORTHWEST INC.-ID CRALIDXX
VERIZON NORTHWEST INC.-ID DERYIDXX
VERIZON NORTHWEST INC.-ID FRFDWAXA
VERIZON NORTHWEST INC.-ID GENSIDXX
VERTZON NORTHWEST INC.-ID HRSNIDXA
VERIZON NORTHWEST INC.-ID HYLKIDXX
VERIZON NORTHWEST INC.-ID KLLGIDXX
VERIZON NORTHWEST INC.-ID MLLNIDXX
Note: To the extent that any wire centers have been inadvertently excluded from this Exhibit, Budget intends to
serve the entirety of the rural and non-rural incumbent local exchange carrier wire centers identified.
VERIZON NORTHWEST INC.-ID MSCWIDXX
VERIZON NORTHWEST INC.-ID ORFNIDXC
VERIZON NORTHWEST INC.-ID PECKIDXX
VERIZON NORTHWEST INC.-ID PIRCIDXX
VERIZON NORTHWEST INC.-ID PLMRIDXX
VERIZON NORTHWEST INC.-ID PNHRIDXA
VERIZON NORTHWEST INC.-ID PRLKIDXX
VERIZON NORTHWEST INC.-ID PRRVIDXX
VERIZON NORTHWEST INC.-ID PSFLIDXX
VERIZON NORTHWEST INC.-ID PTLTIDXX
VERIZON NORTHWEST INC.-ID RTHDIDXX
VERIZON NORTHWEST INC.-ID SNPNIDXX
VERIZON NORTHWEST INC.-ID SPLKIDXX
VERIZON NORTHWEST INC.-ID WEPPIDXX
VERIZON NORTHWEST INC.-WA FRTNWAXX
Note: To the extent that any wire centers have been inadvertently excluded from this Exhibit, Budget intends to
serve the entirety of the rural and non-rural incumbent local exchange carrier wire centers identified.
Budget PrePay, Inc.
d/b/a Budget Mobile
EXHIBIT 3
SAMPLE OF MARKETING MATERIALS
Budget PrePay, Inc.
d/b/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 3
Budge.mo
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,T,0 1WIIN lift w
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The offering is a Lifeline-supported service. Only eligible consumers may enroll in the program and proof of
eligibility documentation is necessary for enrollment. By law, the Lifeline program is limited to one phone
per household, consisting of either wirelino or wireless service. Lifeline is a government benefit program,
and consumers who willfully make false statements in order to obtain the benefit can be punished by fine or
imprisonment or can be barred from the program. Free phones may take up to 10 business days for delivery
once order is received. Brand and style of phone will vary and are atthe discretion of Budget Mobile Lifeline.
There are 2 easy ways to sign up for service:
o Visit a Budget Mobile Lifeline Store
0 Order online at wwwBudgetMobile.com
ru mini. iTI
FEATURES include
• Voicemail
• Call Waiting
• Caller ID
• Access to 911 Service
• Nationwide Coverage
•LLIL1IDILIIT
To apply for Budget Mobile Lifeline service, you MUST participate in ONE of the following programs and provide proof
of enrollment:
• Food Stamps • Federal Housing Assistance • Temporary Assistance for Needy
• Supplemental Security Income (SSI) (Section 8) Families
• Medicaid • National School Lunch (free • Low Income Home Energy Assistance
program only) Program
Bonanza Square Shopping Center Mission Center
2338 East Bonanza Road, Las Vegas • 702-675-7557 1350 East Flamingo Road, Las Vegas 702-641-0177
,.
Budget PrePay, Inc.
d/b/a Budget Mobile
EXHIBIT 4
COMPLIANCE PLAN
Budget PrePay, Inc.
d/b/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 4
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Telecommunications Carriers Eligible to
Receive Universal Service Support
Lifeline and Link Up Reform and
Modernization
BUDGET PREPAY, INC.
Petition for Limited Designation as an
Eligible Telecommunications Carrier
WC Docket No. 09-197
WC Docket No. 11-42
COMPLIANCE PLAN OF BUDGET PREPAY, INC.
Budget PrePay, Inc. ("Budget PrePay" or "Company") is a prepaid wireless
telecommunications carrier seeking designation as an Eligible Telecommunications Carrier
("ETC") solely for the purpose of participating in the Lifeline program.' Budget PrePay requests
that the Commission forbear from applying the "own facilities" requirement contained in section
214(e)(1)(A) of the Communications Act, 47 C.F.R. § 214(e)(1)(A), consistent with the
Commission's determination to forbear from applying this requirement to Lifeline-only ETC
applications that comply with the conditions set forth in the Lifeline Reform Order.2
Budget PrePay notes that it no longer seeks authority to be eligible for Link Up support, as was
originally requested by the Company in its pending ETC applications. See Letter to Marlene H. Dortch
from counsel to Budget Prepay, WC Docket No. 09-197 (dated March 1, 2012), at 2.
2 In the Matter of Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Report and
Order and Further Notice of Proposed Rulemaking, FCC 12-11 (rel. Feb. 6, 2012) ("Lifeline Reform
Order").
Budget PrePay hereby files its Compliance Plan outlining the measures it will take to
implement the conditions set forth in the Lifeline Reform Order.3 Budget PrePay respectfully
requests expeditious approval of this Compliance Plan so that the Company, upon designation as
an ETC by the FCC and other state commissions, may quickly begin providing essential Lifeline
services to eligible low-income customers.
I. INFORMATION ABOUT BUDGET PREPAY, INCLUDING FINANCIAL
AND TECHNICAL QUALIFICATIONS
Budget PrePay, based in Bossier City, Louisiana, has been in business since 1990 The
Company provides both wireline and wireless services. The Company has been designated as an
ETC for wireless services in the states of Arkansas, Kentucky, Louisiana, Maryland, Rhode
Island, Wisconsin and Nevada, and is currently offering, or will begin offering, Lifeline service
in each of these states.'
Budget PrePay currently derives the majority of its revenue from selling low-cost prepaid
telephone services on a nationwide basis to over tens of thousands of customers and employs
approximately 340 people. Budget PrePay will not need to rely exclusively on USF support to
provide wireless Lifeline services.
Budget PrePay owns and operates its own switching facilities in Dallas, Texas and
Shreveport, Louisiana. In addition to providing access to directory assistance and operator
services, the switching facilities are also used to provide access to some interexchange services
(for the routing of certain domestic and all non-domestic) calls. Budget PrePay has also invested
This Compliance Plan and the attached supplemental materials replace the Compliance Plan submitted
to the Commission on March 1, 2012 and the revised Compliance Plan submitted April 17, 2012.
Budget PrePay was organized and incorporated in the State of Louisiana on May 1, 1996.
Budget PrePay also has been designated as an ETC for wireline services in Tennessee, Oklahoma,
Alabama, Florida, Nebraska, Maryland, Louisiana, Mississippi, Arkansas, Kentucky, Michigan, Missouri,
North Carolina, South Carolina, and Texas.
2
millions of dollars in software development, including its own customized, user friendly point-
of-sale software.
Budget PrePay has not been subject to any enforcement action at the FCC or in any state.
No ETC designations held by Budget PrePay have been rescinded, revoked or terminated by the
FCC or by any state.
Budget PrePay operates its wireless business under the name Budget Mobile, and
operates its wireline business under the name Budget Phone. The Company directly owns 100%
of the following affiliated entities: Silver Creek Long Distance, Inc.; MyMinutes.com , Inc.; and
Bluebird Wireless, Inc.
II. BACKGROUND
In the Lifeline Reform Order, the Commission stated that it would grant forbearance from
the "own-facilities" requirement contained in Section 2 14(e)(l)(A) for carriers that are, or seek
to become, Lifeline-only ETCs, subject to compliance with the following conditions:6
(1)the carrier must comply with certain 911 requirements: (a) providing its Lifeline
subscribers with 911 and E91 I access, regardless of activation status and availability of
minutes; (b) providing its Lifeline subscribers with E911-compliant handsets and
replacing, at no additional charge to the subscriber, noncompliant handsets of Lifeline-
eligible subscribers who obtain Lifeline-supported services; and (c) complying with
conditions (a) and (b) starting on the effective date of this Order; and
(2)the carrier must file, and the Bureau must approve, a compliance plan that: (a)
outlines the measures the carrier will take to implement the obligations contained in this
Order, including but not limited to the procedures the ETC follows in enrolling a
subscriber in Lifeline and submitting for reimbursement for that subscriber from the
Fund, materials related to initial and ongoing certifications and sample marketing
materials, as well as further safeguards against waste, fraud and abuse the Bureau may
6 Lfeline Reform Order at ¶j 368, 373 and 379. While Budget PrePay owns some facilities and appears
to satisfy the revised supported services requirements applicable to ETCs, Budget PrePay is filing this
Compliance Plan out of an abundance of caution, to illustrate its support for many of the recent reform
measures taken by the Commission that attempt to curb waste, fraud and abuse in the Low Income Fund,
and in the hopes that this filing will expedite processing of its pending ETC designation Petitions. Budget
PrePay commits to comply with its Compliance Plan in all states where it is designated as a Lifeline-only
ETC.
deem necessary; and (b) provides a detailed description of how the carrier offers service,
the geographic areas in which it offers service, and a description of the carrier's various
Lifeline service plan offerings, including subscriber rates, number of minutes included
and types of plans available.
III. COMPLIANCE PLAN
Budget PrePay will comply with all of the conditions set forth in the Lifeline Reform
Order and Sections 54.101 et. seq. of the Commission's Rules (as amended by the Lfeiine
Reform Order), the provisions of its Compliance Plan, and all laws and regulations governing its
provision of Lifeline-supported prepaid wireless service to customers throughout the United
States.
A.Access to 911 and E911 Services
The Lifeline Reform Order requires ETCs to provide their Lifeline customers with access
to 911 and E91 1 services, regardless of activation status and availability of minutes.7 Budget
PrePay hereby affirms that all of its customers will have access to emergency calling services at
the time that Lifeline service is initiated, and that such 911 and E911 access will be available
from Budget PrePay handsets even if the account associated with the handset has no minutes
remaining.
B.E911-Compliant Handsets
The Commission also conditioned its grant of forbearance on ETCs providing only E911-
compliant handsets to its Lifeline customers.8 Budget PrePay will ensure that all handsets used
in connection with the Company's Lifeline service offering are E91 1-compliant. In the event
that an existing Budget PrePay customer does not have an E91 I -compliant handset, the
Company will replace it with a 911/13911 -compliant handset at no charge to the customer. Any
7 1d. atil 373.
8
4
new customer that qualifies for and enrolls in the Lifeline program will receive a 91 l/E91 1-
compliant handset, free of charge.
C. Certification and Verification of Lifeline Eligibility
Budget PrePay proposes the following plan to implement the certification and
verification conditions outlined in the Lifeline Reform Order. Budget PrePay intends to keep
these measures in effect until such time as the Commission implements its planned National
Lifeline Accountability Database. Budget PrePay shares the Commission's concern about waste,
fraud and abuse of the Lifeline program and is committed to the safeguards stated herein.
1.Policy
Budget PrePay will comply with all certification and verification requirements for
Lifeline eligibility established by states where it is designated as an ETC. In states where there
are no state-imposed requirements, Budget PrePay will comply with the certification and
verification procedures in effect in that state as reflected on the website of the Universal Service
Administrative Company ('USAC"). For any states which do not mandate Lifeline support
and/or which do not have established rules of procedure in place, Budget PrePay will certify at
the outset and will verify annually customers' Lifeline eligibility in accordance with the
Commission's requirements.
2.certification Procedures
Budget PrePay will implement certification procedures that require consumers to
demonstrate their eligibility for Lifeline assistance by contacting the Company in person or via
mail, telephone, facsimile, or the internet. At the point of sale, consumers will be provided with
printed information describing Budget PrePay's Lifeline program with instructions for enrolling,
including eligibility requirements. Consumers will be signed up in person or directed, via
company literature, collateral or advertising, to a toll-free telephone number and to the Company
5
website, which will contain a link to information regarding the Company's Lifeline service
plans, including a detailed description of the program and state-specific eligibility criteria.
Budget PrePay's application form will clearly identify that it is a "Lifeline" application. Except
in states in which applicants are enrolled through a designated state agency, Budget PrePay will
have direct contact with all customers applying for Lifeline service, in person or by telephone,
facsimile, mail or the internet.
Budget PrePay will provide Lifeline-specific training to all personnel, whether
employees, agents or representatives, who interact with actual or prospective consumers with
respect to obtaining, changing or terminating Lifeline services. Consumers who do not complete
the application process in person must return the signed application and support documentation
to the Company by mail, fax, email or other electronic transmission. The Company will accept
electronic signatures that meet the requirements of the Electronic Signatures in Global and
National Commerce Act, 15 USC 7001-7006, and any applicable state laws, and may verify
consumers' signatures via interactive voice response (IVR) systems. Processing of consumers'
applications, including review of all application forms and relevant documentation, will be
performed under the Company's supervision by personnel trained in the administration of the
Lifeline program. Budget PrePay will ensure that all required documentation is reviewed and
handled properly by using state-specific compliance checklists.
For states with program-based eligibility criteria, the form will list each of the qualifying
programs, and the applicant will be required to identify the specific program(s) in which they
participate, and to provide the requisite proof that they currently participate in such program(s),
regardless of whether such proof is required pursuant to state law. For states with income-based
eligibility criteria, the applicant will be required to certify under penalty of perjury that their
household income does not exceed the relevant threshold (e.g., 135% of the Federal Poverty
Guidelines for federal default states) and will be required to provide the requisite proof of
income-based eligibility. Budget PrePay will not retain copies of proof documentation, but
rather will maintain accurate records detailing how the customer demonstrated his or her
eligibility.9
Budget PrePay will check the eligibility of low-income consumers seeking to enroll in
Lifeline either by accessing electronic eligibility databases, where available, or by reviewing
documentation from the consumer demonstrating his/her eligibility for Lifeline service. Where
the Company is able to access a state or federal database to make determinations about customer
eligibility, the Company is not required to obtain proof documentation; in such case Budget
PrePay or its representative will note in its records what specific data was relied upon to confirm
the customer's initial eligibility for Lifeline. 10 In instances where a state agency or third-party
administrator is responsible for the initial determination of consumer eligibility, Budget PrePay
will rely on the state identification or database.'1
In addition, the Lifeline application form will include a certification section where the
applicant must attest and sign under penalty of perjury that the applicant's representations are
true and correct. Applicants will also be required to initial a number of disclosure statements
intended to ensure that the applicant understands applicable eligibility requirements—including a
statement to the effect that to the best of his or her knowledge, the applicant is not receiving
Lifeline-supported service from any other Lifeline provider. Penalties for perjury will be clearly
stated on the certification form. The certification form will also contain language stating that
9 Lifeline Reform Order at ¶ 101.
'0 Id. at1J98. ' Id.
7
violation of the one-per-household requirement constitutes a violation of the Commission's rules
and will result in the consumer's de-enrollment from the program, and could result in criminal
prosecution by the United States government. 12 Although the exact wording of the disclosure
statements described above may vary on a state-by-state basis, depending on state-specific
requirements and/or consultations with relevant state agencies, Budget PrePay expects the
substance of these disclosures to be consistent with the certifications set forth in the enclosed
Lifeline Application and Certification Form. See Exhibit 1.
Finally, the application forms will require each applicant to provide the following
information: 13
• Name
• Primary residential address - and whether the address is a permanent address
• Billing address (if this differs from the residential address)
• Last four digits of social security number
• Birth date
After the National Database is established, Budget PrePay will provide the above information to
the database, together with the following additional information:
• Telephone number (for Lifeline handset)
• Date of service initiation
• Date of de-enrollment (if applicable)
• Means by which the subscriber qualified for support
• Amount of Lifeline support received by the subscriber each month
• Whether the subscriber receives Link Up support
The application form will clearly state that Lifeline participants must provide their new
address to the Company within 30 days of moving. 14 Budget PrePay will incorporate this
information into its customer information database. Prior to initiating service for a customer, the
Company will check the address of each Lifeline applicant against its database to determine
12j.j atJ 121.
13 Lifeline Reform Order at ¶J 85 and 184.
'4 1d. atJ 85 and 117.
8
whether or not it is associated with a customer that already receives Budget PrePay Lifeline
service, and will then review the application to ascertain whether the applicant is attempting to
receive Lifeline-supported service for more than one handset associated with its household. 15 If
the Company determines that an individual at the applicant's residential address is currently
receiving Lifeline-supported service, the Company will take an additional step to ensure that the
applicant and the current subscriber are part of different households. 16 In order to make this
determination, Budget PrePay will require applicants to complete and submit to the Company a
written document which will be developed by USAC. Budget PrePay will deny the Lifeline
application of any individual residing at the same address as a current Lifeline subscriber who is
part of the same household, and will advise the applicant of the basis for the denial.
Budget PrePay also will de-enroll within ten (10) business days any subscriber whom the
Company knows is receiving Lifeline-supported service from another ETC or knows is no longer
eligible. In the event that the Company is notified by the Administrator that a subscriber is
receiving duplicative support, the Company will de-enroll that subscriber from participation in
the Lifeline program within five (5) business days.'7
If the subscriber provides Budget PrePay with a temporary address, the Company will
verify with the subscriber every 90 days that this address remains valid. If the subscriber fails to
respond to the Company within 30 days, the subscriber will be de-enrolled from the Lifeline
program. 18
' Budget PrePay will use the definition of household" established by the Lifeline Reform Order at 111 29
and 74; see also revised section 47 CFR § 54.400(h).
16 Lifeline Reform Order at 11 78.
1747 C.F.R. § 54.405 (e)(2).
'8 1d at111188--89.
9
3. Annual Verification Procedures
As required by the Commission's Lifeline Reform Order, Budget PrePay will require
every consumer enrolled in the Lifeline program to verify on an annual basis that he or she is the
head of his or her household, receives Lifeline-supported service only from Budget PrePay and,
to the best of his or her knowledge, no one else in the subscriber's household is receiving a
Lifeline-supported service. 19 Pursuant to the new rule adopted in the Lifeline Reform Order,
Budget PrePay will re-certify the eligibility of all of its Lifeline subscribers as of June 1, 2012,
by the end of 2012, and report the results to USAC by January 31, 2013.20 The Company may
undertake this re-certification on a rolling basis throughout the year.21 Where ongoing eligibility
cannot be determined through access to a qualifying database either by the Company or the state,
and there is no state administrator verifying the continued eligibility of Lifeline subscribers, the
Company will re-certify the continued eligibility of its subscribers by contacting them—either in
person, in writing (by mail), by phone, by text message, by email, or otherwise through the
Internet—to confirm their continued eligibility.22 Such certifications may be obtained in person
through a written document, an IVR system, a text message, or on-line with an electronic
signature. The Company will accept electronic signatures that meet the requirements of the
Electronic Signatures in Global and National Commerce Act, 15 USC 7001-7006, and any
applicable state laws, in accordance with the Lifeline Reform Order.23 In states where a state
agency or a third party has implemented a database that carriers may query to re-certify the
consumer's continued eligibility, the Company (or state agency or third-party, where applicable)
19 1d. at 120.
20 Id. atJ 130,
21 Id.
22 Id. After 2012, the Company may elect to have USAC administer the self-certification process on its
behalf. See id. at ¶ 133.
23 1d. atlj 132.
ID]
will instead query the database and maintain a record of what specific data was used to re-certify
eligibility and the date of re-certification. 24
The notice will explain the actions the customer must take to retain Lifeline benefits,
when Lifeline benefits will be terminated if such actions are not taken, and how to contact
Budget PrePay. Consistent with the Lifeline Reform Order, the Company will provide notice of
impending Lifeline service termination to subscribers who do not respond to the annual re-
certification within 30 days. Anyone who does not respond to the impending termination notice
within 30 days to demonstrate that his or her Lifeline service should not be terminated will be
de-enrolled from the Company's Lifeline program.25
Ii Specific Customer Enrollment Procedures
Budget PrePay prefers direct contact with consumers. To this end, Budget PrePay does
not offer its services through "chain" stores, but rather through its own stores, and through retail
agents familiar with the underserved consumers in the communities Budget PrePay serves.
Currently, Budget PrePay has 12 stores in Louisiana, 3 stores in Maryland, 2 stores in Arkansas,
Nevada, and Kentucky, and one store in Rhode island. Budget PrePay plans to open multiple
stores in each state where it is designated. Budget PrePay sells the remainder of its service
through Internet sales and inbound telemarketing (where a customer is seeking to initiate service
with Budget PrePay).
As an initial matter, in those few states that have a state administrator, Budget PrePay
fully cooperates with the state Lifeline administrators to ensure that it does everything necessary
to ensure it is in compliance with both state and federal enrollment, verification, and re-
certification procedures. For all states that do not have a Lifeline administrator, Budget PrePay
24 Id at ¶ 131.
25 Id. at TT 141-142.
will perform the same first step in the process of enrollment. Regardless of how the customer
applies—whether in a retail store, online, or over the phone, each customer will supply the same
information via Budget PrePay's standard customer application and certification form. (Attached
as Exhibit I.)
Budget PrePay enrolls Lifeline customers through several different marketing channels:
I) in person, through company-owned and affiliated retail stores, 2) in person, through retail
agents trained by Budget PrePay, and 3) through customer-initiated contact, either through
inbound telemarketing, or more frequently, through online sales over the Internet. The majority
of Budget PrePay's sales are through its "in person" channels.
All of Budget PrePay's retail sales are the result of direct contact with the potential
Lifeline consumer.
Retail Stores. The prospective customer comes into the store, and is asked the basis for
his or her claim to Lifeline eligibility. The store employee can verify the customer's program, or
income, based eligibility in person. Budget PrePay provides comprehensive training/reference
materials to its employees which allow the employees to verify the most common forms of proof
for each eligible program and/or income verification. The store employee will then ask the
prospective customer for additional documentation proving identity and/or address verification.
The final program/income eligibility-specific step is for the customer to provide the required
information and make the certifications required by new rule §54.410(d)(3).
If the customer appears to be eligible, the employee will explain the Commission's
definition of "household" as an "economic unit" where related or unrelated people share income
and expenses. in the case of multiple applicants at the same mailing address, the customer will
then make the "one per household" certification required by §54.41 0(d)(1). Finally, Budget
12
PrePay will collect the necessary customer-specific information required by new rule
§54.401(d)(2) so that Budget PrePay can report the information to USAC to be used to populate
the National Lifeline Accountability Database ("duplicates database"), defined in §54.400(i) of
the Commission's new rules.
The retail store employee then enters the customer's information into Budget PrePay's
OSS systems, where the information is checked against available databases (the duplicates
database, and Budget PrePay's own list of existing customers). The retail store rep quickly
determines whether the customer is eligible to receive Lifeline service. in cases where a state
program eligibility database exists, the retail store personnel will contact Budget PrePay's
internal group dedicated to verifying eligibility who will query the state database and either
approve or deny the applicant. Where proof of eligibility is needed, the retail personnel, who are
trained on what is eligible documentation will witness the documentation and sign the
application demonstrating they have witnessed the documentation.
Upon successful completion of the certification process, the customer chooses a service
plan and is provided with a handset. The customer's account is activated upon completion of an
outbound call. For purposes of "enrollment" in the Lifeline program, Budget PrePay will use the
date of this first completed outbound call from its call records as the customer's effective start
date.
Retail Agents. The process for signing up customers at Budget PrePay's retail agents is
very similar to the process used by Budget PrePay for signing up customers at its owned stores.
The prospective customer comes into the agent's retail location, and is asked the basis for his or
her claim to Lifeline eligibility. The agent's employee can verify the customer's program, or
income, based eligibility in person. Budget PrePay provides comprehensive training and
13
reference materials to its agent's employees which allow the agent's employees to verify the
most common forms of proof for each eligible program and/or income verification. The agent's
employee will then ask the prospective customer for additional documentation proving identity
and/or address verification. The final program/income eligibility-specific step is for the
customer to provide the required information and make the certifications required by new rule
§54.410(d)(3).
If the customer appears to be eligible, the agent's employee will explain the
Commission's definition of "household" as an "economic unit" where related or unrelated people
share income and expenses. in the case of multiple applicants at the same mailing address, the
customer will then make the "one per household" certification required by §54.410(d)(1).
Finally, the agent's employee will collect the necessary customer-specific information required
by new rule §54.401(d)(2) so that Budget PrePay can report the information to USAC to be used
to populate the National Lifeline Accountability Database ("duplicates database"), defined in
§54.400(1) of the Commission's new rules.
The agent's employee then faxes the completed certification form to Budget PrePay's
Agent Services department, where an employee enters the data into Budget PrePay's OSS
systems. The OSS systems check the data against available databases (the duplicates database,
and Budget PrePay's own list of existing customers). Where proof of eligibility is needed, the
agent's employees, who are trained on what is eligible documentation, will witness the
documentation and sign the application demonstrating they have witnessed the documentation.
Review of the documents and appropriate databases is completed by Budget PrePay
employees. If Budget PrePay confirms that the customer is eligible, a handset will be mailed to
the customer. The customer's account is not activated until completion of an outbound call. For
14
purposes of "enrollment" in the Lifeline program, Budget PrePay will use the date of this first
completed outbound call from its call records as the customer's effective start date.
Inbound Channel Marketing. Prospective customers can also apply for, and obtain,
Lifeline service from Budget PrePay either over the phone or through the Internet. Customers
choosing to obtain service through inbound channels must either fill out an application online, or
provide the relevant information to the customer sales representative over the telephone. In these
cases, Budget PrePay verifies eligibility via a state database, state administrator, or by reviewing
documentation of eligibility submitted by the applicant in advance of receiving service.
Online Sales. To apply for Budget PrePay Lifeline service online, a customer will fill out
an application, provide the necessary information that all prospective Lifeline customers must
provide, and be taken through successive screens, which clearly explain all relevant legal
eligibility requirements. If the customer is seeking to qualify for Lifeline service based on their
participation in a particular program (or income level), the prospective customer may be able to
be qualified by an inbound sales representative who inputs the prospective customer's
information into an eligibility database (if available for the relevant state). However, in most
cases, the prospective customer will fill out the relevant eligibility forms on the computer, and
then send in copies of the records needed by Budget PrePay to verify the customer's eligibility to
participate in Lifeline. Once the prospective customer is successfully verified by Budget PrePay,
the customer can be enrolled in the service plan they have chosen, and then mailed their handset.
Assuming the customer has successfully completed the online application process,
Budget PrePay will have all the information it needs to verify the customer is only receiving one
Lifeline subsidy for their household, to verify eligibility, to satisfy its record-keeping obligations,
and to send to USAC in order to populate the duplicates database. The requisite certifications
15
needed by Budget PrePay to establish service with the prospective customer is obtained as
electronic signatures.
Budget PrePay's method of accepting electronic signatures—on all of its online
certifications and re-certifications--is to allow the customer to create a unique electronic
signature by typing their name, and providing their date of birth and their social security number.
The customer's name, combined with their date of birth and their social security number, is
sufficiently unique to satisfy the Commission's new rules for accepting electronic signatures.
If the prospective customer fails to qualify for Lifeline service, Budget PrePay will
explain to the customer why the request was rejected. On the other hand, if the prospective
customer sends in sufficient evidence to qualify for Lifeline eligibility, and adequately certifies
eligibility, Budget PrePay will notify the customer, and enroll the customer in their requested
service plan, and send the customer the handset. The customer's account is not activated until
completion of an outbound call. For purposes of "enrollment" in the Lifeline program, Budget
PrePay will use the date of this first completed outbound call from its call records as the
customer's effective start date.
Inbound Telemarketing. To obtain Budget PrePay Lifeline service, a customer can call
Budget PrePay to initiate service. The process is very similar to online enrollment, except that
instead of being taken through successive screens, the customer is asked a series of qualifying
questions by a customer service representative. The questions will all be designed to elicit true
and accurate information that is necessary for Budget PrePay to obtain a complete standard
certification form. If, at any time during the conversation, it becomes apparent to the customer
service representative that the prospective customer is unlikely to qualify for Budget PrePay
Ell
Lifeline service, the customer service representative explains the issue to the customer and offers
to allow the customer to sign up for one of Budget PrePay's non-Lifeline service plans.
On the other hand, if the customer provides information indicating that the customer
would be eligible to obtain Lifeline service, the customer service representative will take the
customer as far as possible in trying to qualify the customer. For example, if there are no other
Lifeline subscribers in the customer's household, and the customer participates in a Lifeline-
eligible program (or is income-qualified), the customer service representative tries to verify the
customer's information through a state database (if available). If the customer seems to qualify
(through a database query), then the customer service representative will open a file for the
customer, take the customer's information that is required to be collected from each customer,
send the customer the requisite certification forms for verification of eligibility (or allow the
customer to certify eligibility through an IVR recorded and associated with the customer's
account), and request copies of the evidence that would prove eligibility in cases where a state
database is not available.
If the prospective customer fails to qualify for Lifeline service, Budget PrePay will
explain to the customer why the request was rejected. On the other hand, if the prospective
customer sends in sufficient evidence to qualify for Lifeline eligibility, and adequately certifies
eligibility, Budget PrePay will notify the customer, and enroll the customer in their requested
service plan, and send the customer the handset. The customer's account is not activated until
completion of an outbound call. For purposes of "enrollment" in the Lifeline program, Budget
PrePay will use the date of this first completed outbound call from its call records as the
customer's effective start date.
17
E. Additional Measures to Prevent Waste, Fraud, and Abuse
1.Non-usage Policy
As required by the Lifeline Reform Order, Budget PrePay will implement a non-usage
policy whereby it will de-enroll Lifeline customers that have not used the Company's Lifeline
service for 60 consecutive days. 26 Budget PrePay will notify its subscribers at service initiation
about the usage requirements and the de-enrollment and deactivation that will result following
non-usage in any consecutive 60-day period of time. 27 If no usage appears on a Budget PrePay
Lifeline customer's account during any consecutive 60-day period, Budget PrePay will
deactivate Lifeline services for that customer. An account will be considered active if during any
60-day period the authorized subscriber does at least one of the following: makes a monthly
payment; purchases minutes from the Company to add to his or her existing pre-paid Lifeline
account; completes an outbound call; answers an incoming call from anyone other than the
Company, its representative, or agent; or affirmatively responds to a direct contact from the
Company confirming that he or she wants to continue Lifeline service. 28
2.Customer Education with Respect to Duplicates
To supplement its verification and certification procedures, and to better ensure that
customers understand the Lifeline service restrictions with respect to duplicates, Budget PrePay
will implement measures and procedures to prevent duplicate Lifeline benefits being awarded to
the same household. These measures entail additional emphasis in written disclosures as well as
live due diligence, and will help ensure that only eligible consumers enroll in the program and
that those consumers are fully informed of the rules and requirements of the program.
26 Id. at TT 257-263.
27 1d. at ¶ 257.
28 Id. at ¶ 261.
18
In its marketing materials, including application forms, on its web site, and in its direct
contact with applicants, the Company will emphasize in plain, easily comprehensible language
that: (1) Lifeline is a federal benefit; (2) Lifeline service is available for only one line per
household; (3) a household is defined, for purposes of the Lifeline program, as any individual or
group of individuals who live together at the same address and share income and expenses; and
(4) a household is not permitted to receive Lifeline benefits from multiple providers. 29 Budget
PrePay will also include in its marketing materials substantially the following information in
clear, easily understood language: the offering is a Lifeline-supported service; that only eligible
consumers may enroll in the program; what documentation is necessary for enrollment; and that
the program is limited to one benefit per household, consisting of either wireline or wireless
service. 30 In order to reinforce the limitation of one Lifeline phone per household, the following
statement will appear in the Company's marketing materials and websites
(www.budgetphone.com and www.budgetprepay.com ) in a conspicuous place, in bold font and
in an offsetting color to ensure it is not overlooked:
Note: By law, the Lifeline program is only available for
one phone per household
Budget PrePay will disclose the company names under which it does business and the details of
its Lifeline service offerings .3' A sample marketing brochure is enclosed as Exhibit 2.
3. Cooperation with state andfederal regulators
Budget PrePay has and will continue to cooperate with federal and state regulators to
prevent waste, fraud and abuse, including:
29 1d. atj 121.
30 1d. at ii 275.
31 Id.
ME
• Providing a certification to USAC that the Company has procedures in place to
review customer's documentation of income- and program-based eligibility. That
certification will also confirm that Budget PrePay is in compliance with all federal
Lifeline certification procedures and Lifeline program rules, and that Budget
PrePay has obtained a valid certification form for each Lifeline customer. 2
• Providing the FCC and USAC each year with general information regarding the
terms and conditions of the Lifeline plans that the Company offered during the
previous year, including the number of minutes provided, and whether there are
additional charges to consumer for service, including minutes of use and/or toll
calls.33
• Providing state commissions (PUC), the FCC or USAC upon request with data
that will enable that state, the FCC or USAC to determine whether some
consumers are enrolled in more than one Lifeline program. Specifically, the
Company agrees to make available state-specific customer data, including name
and address, upon request to each state PUC where it operates, the FCC or USAC
for the purpose of permitting the PUC, FCC or USAC to determine whether an
existing Lifeline customer receives Lifeline service from another carrier, and will
participate in such a duplicate resolution process, provided that costs for
participation are reasonable or defrayed through the universal service contribution
mechanisms;
• Promptly investigating any notification that it receives from a state PUC, the FCC
or U SAC that one of its customers already receives Lifeline service from another
carrier;
• Immediately deactivating a customer's Lifeline service and no longer report that
customer on USAC Form 497 if the Company's investigation, a state, the FCC or
USAC concludes that the customer receives Lifeline services from another carrier
in violation of the Commission's regulations and that the Company's Lifeline
service should be discontinued such as a de-enrollment notification pursuant to
the FCC's June 17, 2011 Report and Order (Section III, B.).
Complying with all audit requirements set forth in the Lifeline Reform Order.
F. Lifeline Offering
Budget PrePay will offer its Lifeline service in the states where it is designated as an ETC
throughout the coverage area of its underlying carriers, Sprint and Verizon Wireless. As
32 Lifeline Reform Order at ¶IJ 125 - 128.
33 1d. atj 390.
20
summarized in Exhibit 3 attached hereto, the Company's Lifeline offering will provide
customers with the option to choose between two (2) Lifeline plans 34 that best meets their needs.
Additional minutes will be loaded electronically. Customers can purchase extra minutes
at retail outlets frequented by low-income customers throughout the Company's service area and
online. All of Budget PrePay's Lifeline plans will include a free handset and the following
custom calling features: Caller ID, Call Waiting, and Voicemail. Budget PrePay does not
impose credit checks or long-term service contracts on its prepaid customers. Customers are not
bound by a local calling area requirement; all Budget PrePay plans come with domestic long
distance at no extra per minute charge. Calls to 911 emergency services are always free,
regardless of service activation or availability of minutes.
IV. CONCLUSION
Budget PrePay submits that its Compliance Plan fully satisfies the conditions of
forbearance set forth in the Commission's Lifeline Reform Order. Implementation of the
procedures described herein will promote public safety and ensure that Lifeline customers have
access to 911 and E91 1 services while safeguarding against misuse of the Company's Lifeline
services. Accordingly, Budget PrePay respectfully requests that the Commission expeditiously
Budget PrePay's Lifeline Plans vary from state to state in accordance with state requirements; the two
Lifeline plans outlined in this Compliance Plan would be offerings available in all states in which the
FCC has jurisdiction over competitive ETC applications. Please see the Company's websites
(www.budgetphone.com and www.budgetprepay.com ) for more detailed information regarding plans
available in each state.
21
approve its Compliance Plan so that the Company may begin providing the benefits of much-
needed Lifeline service to qualifying low-income consumers as quickly as possible.
Respectfully submitted,
BUDGET PREPAY, INC.
RtkZ44 5. ilOmi
Todd B. Lantor
Robert S. Koppel
Lukas, Nace, Gutierrez & Sachs, LLP
8300 Greensboro Drive
Suite 1200
McLean, Virginia 22102
Phone: [phone]
Counsel for Budget PrePay, Inc.
May 1, 2012
Attachments (Certification, Exhibits I - 3)
22
CERTIFICATION
I, David Donahue, do hereby declare under penalty of perjury as follows:
1.I am the Chief Financial Officer of Budget PrePay, Inc., a Louisiana Corporation, with its
principal place of business at 1325 Barksdale Blvd., Bossier City, Louisiana 71111.
2.I have read Budget PrePay's revised Compliance Plan and confirm the information contained
therein to be true and correct to the best of my knowledge.
3.1 declare under penalty of perjury that the foregoing is true and correct to the best of my
knowledge.
David Donahue
Chief Financial Officer
Budget PrePay, Inc.
April 27, 2012.
Exhibit 1:
Sample Lifeline Application and Certification (Louisiana)
I I III I 1 I II Ii1 I III I i1 :1
Initial Lifeline Enrollment Ll Re-Verification of Lifeline Enrollment
Budget MOBILE UFEUflE
www.budgetmobile.com
PERSONAL INFORMATION
Bit
iI1 s]
.:ANN ON 0 0 . ..90 I•UIIRUIUUIUI•UUUUUUIU•UUUUURIUUUSU••US•
I certify that I reside on a Federally recognized Tribal land. (For Tribal Residents Only)
PLEASE READ AND ACKNOWLEDGE YOU AGREE BY INITIALING EACH STATEMENT BELOW, UNDER PENALTY OF PERJURY
The information contained within this application is true and correct. I acknowledge that providing false or fraudulent
documentation in order to demonstrate eligibility for the Lifeline program is punishable by fine or imprisonment
I understand that Lifeline is a federal government benefit program and that only qualified persons may participate in the
Lifeline program.
I understand that Lifeline is only available for one phone line per household, whether landline or wireless. Other
Lifeline providers include: Budget Home Phone, AT&T, Safelink, and Assurance Wireless. To the best of my knowledge no
one in my household is receiving Lifeline service. A household is defined, for purpose of the Lifeline program, as any
individuals who live together at the same address and share income and expenses.
I certify that I am at least 18 years of age and not currently receiving a Lifeline telephone service from any other
landline or wireless telephone company. I will only receive Lifeline from Budget PrePay and no other landline or
wireless telephone company. Any violation of the one phone line per household limitation will result in de-enrollment
from the Lifeline program and may be punished by fine or imprisonment.
I will not transfer my service to any other individual, including another eligible low-income consumer.
I authorize Budget PrePay to access any records required to verify my eligibility for Lifeline service. I also authorize
Budget PrePay to release any of my records required for the administration of the Lifeline program.
I understand that I will be required to verify my continued eligibility for Budget PrePay's Lifeline service at least
annually, and that I may be required to verify my continued eligibility at anytime, and that failure to do so will result in
termination of Lifeline benefits. I will notify Budget PrePay immediately if I no longer qualify for Lifeline, or if I have a
question as to whether I would still qualify.
I will notify Budget PrePay within thirty (30) days if my home address changes. If the address I have provided is a
temporary address, I understand that I must verify my address every ninety (90) days. Failure to provide such
notification or verification may result in de-enrollment from the program.
I authorize Budget PrePay to contact me by interactive voice response (IVR), or other means, to notify me of annual
Lifeline re-verification and the company's 60-day non-usage reminder.
I understand that completion of this application does not constitute immediate approval for Lifeline service.
ELIGIBILITY
QUALIFYING BENEFICIARY (Complete if a dependent residing in your household is receiving benefits from the programs listed below.)
First Name: Ml: Last Name:
PLEASE CHECK ALL THAT APPLY AND PRESENT BUDGET EMPLOYEE WITH PROOF OF PROGRAM QUALIFICATION:
Food Stamps (SNAP) Federal Housing Assistance (Section 8) Low Income Home Energy Assistance Program
Supplemental Security Income (SSI)J National School Lunch (Free Program Only) Food Distribution Program on
L1 Medicaid J Temporary Assistance for Needy Families Indian Reservations (FDPIR)
L3 Bureau of Indian Affairs General Assistance (BIA)
(Note: Proof of program qualification not required during annual re-verification of Lifeline eligibility.) Ll Tribally-Administered Temporary Assistance for
Needy Families (TTANF)
PAGE 1 OF 2
Budget MOBILE
UFEUflE
www.budgetmobile.com
LIFELINE CERTIFICATION FORM
- INCOME QUALIFICATION: Persons whose household income is at or below 135% of national poverty level qualify for Lifeline credit.
This option is only available at a Budget Mobile retail location. Customer must provide proof of income.
How many people are in your Household?
Persons In HH - 135% Annual Income (at or below)
(1) $15,080 (2) $20,426 (3) $25,772 (4)$31,118 (5) $36,464
Add $5346 for each additional person.
TO QUALIFY BASED ON YOUR INCOME, YOU MUST PROVIDE COPIES OF ONE OR MORE OF THE DOCUMENTS LISTED BELOW. IF YOU
PROVIDE DOCUMENTATION THAT DOES NOT COVER A FULL YEAR (SUCH AS CURRENT PAY STUBS), YOU MUST SUBMIT THREE (3)
CONSECUTIVE MONTHS OF THE SAME TYPE OF DOCUMENT WITHIN THE PREVIOUS 12 MONTHS.
• Current income statement from employer or paycheck stub • Social Security benefits statement
• Unemployment/Workers Compensation benefits statement • Divorce decree or child support document
• Retirement/Pension benefit statement • Veterans Administration benefits statement
• Prior year's state, federal or tribal tax return
(NOTE: Proof of income qualification not required during annual re-verification of Lifeline eligibility.)
RESIDENTIAL ADDRESS (No PC boxes, must be your principal address)
This address is:
L Permanent U Temporary J Multi-Household
I share an address with another person(s) over the age of 18. However, they do not contribute income to my household
or share in the household expenses,
LIYes U No
(If Yes, USAC provided multi household form is to be completed and attached. Form can be obtained from Budget employee.)
now
BILLING ADDRESS
Same as Residential Address
:..
OEM

-' -. • 'II rwta•ilUUUUaliiUUUUaUllU••uIU•a•
Penalty of Perjury
Under Title 18 U.S.C. §1621, whoever will state as true any material matter which he does not believe to be true in a statement under penalty of
perjury, is guilty of perjury and shall, except as otherwise expressly provided by lay, be fined or imprisoned not more than five years, or both.
*BY LAW THE LIFELINE PROGRAM IS ONLY AVAILABLE FOR ONE PHONE PER HOUSEHOLD, WHETHER LANDUNE OR WIRELESS, NO EXCEPTIONS*
Signature Date___________________
FOR AUTHORIZED EMPLOYEE USE ONLY
Shelter/Multi Resident Authorization Code I I I I - I I 1 Lii
Customer Mobile Phone # I I I I I I
CustomerAccount#IIIII III IIIIIIIIIILI1
I certify that I reviewed the appropriate eligibility database to determine the above applicant's Lifeline eligibility status.
Should an eligibility database not be available I certify that the above applicant demonstrated their eligibility by providing
their eligibility documentation and that such documentation has been reviewed for accuracy and legitimacy.
Specific Documentation Presented by Customer and Examined by Company Representative
Store Representative Signature ________ Date_________________________________
PAGE 2 OF 2
Exhibit 2:
Sample Marketing Brochure (Las Vegas, Nevada)
Bu
Plus
250 FREE MINUTES
Every Month
There are 2 easy ways to sign up for service:
o Visit a Budget Mobile Lifeline Store
0 Order online at wwwBudgetMobile.com
ri iinhi ITI
FEATURES include
• Voicemail
• Call Waiting
• Caller ID
• Access to 911 Service
• Nationwide Coverag
LLIUIDILII1
To apply for Budget Mobile Lifeline service, you MUST participate in ONE of the following programs and provide proof
of enrollment:
• Food Stamps • Federal Housing Assistance • Temporary Assistance for Needy
• Supplemental Security Income (SSI) (Section 8) Families
• Medicaid id • National School Lunch (free • Low Income Home Energy Assistance e program only) Program
Bonanza Square Shopping Center Mission Center
2338 East Bonanza Road, Las Vegas. 702-675-7557 1350 East Flamingo Road, Las Vegas' 702-641-0177
Exhibit 3:
Lifeline Offerings
EXHIBIT 3
Lifeline Offerings
Active User Talk & Text*
Non Lifeline $34.25
Lifeline $25.00
250 Minute Talk
Non Lifeline $9.25
Lifeline Free
All plans include, at no extra charge: Free Handset; Caller ID; Call Waiting; and
Voicemail. Voicemail calls count against the voice minutes provided by the plan.
Prices for the Active User Talk & Text Plan, the 250 Minute Talk (non-Lifeline),
and the purchase of additional minutes or the text message add-on do not include
taxes or mandatory government fees (where applicable). Although Budget
PrePay must pay taxes or government fees in certain states, these taxes or
government fees are not assessed to Lifeline customers subscribing to the 250
Minute Talk plan.
*The Active User Talk & Text Plan provides for a combined 4000 voice minutes
and text messages. Each text message counts as one minute of voice service.
Additional Minutes for 250 Minute Talk
50 minutes 5.00
100 minutes $10.00
150 minutes $15.00
Text Message Add-on for 250 Minute T alk** $10.00
* Applicable taxes and government fees are assessed to the above Plan Additions.
"The Text Message Add-on provides 1000 text messages.
Federal Lifeline Credit $9.25
Service Period for all plans: All airtime (airtime associated with a particular plan,
as well as additional purchased minutes, text messages or other services), expires
at the end of each 30-day cycle whether subscriber uses the airtime or not. No
airtime (whether associated with a particular plan or purchased separately) is
carried over to the next 30-day period.
Budget PrePay, Inc.
d/b/a Budget Mobile
EXHIBIT 5
NOTICE OF APPROVAL OF COMPLIANCE PLAN
Budget PrePay, Inc.
dlb/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 5
PUBLIC NOTICE
Federal Communications Commission News Media Information 202/418-0500
44512 1h St., S.W. Internet: http://www.fcc.gov
Washington, D.C. 20554 M: 1-888-835-5322
DA 12-828
Release Date: May 25, 2012
WIRELINE COMPETITION BUREAU APPROVES THE COMPLIANCE PLANS OF
AMERICAN BROADBAND & TELECOMMUNICATIONS, BUDGET PREPAY, CONSUMER
CELLULAR, GLOBAL CONNECTION, TERRACOM AND TOTAL CALL
WC Docket Nos. 09-197 and 11-42
The Wireline Competition Bureau (Bureau) approves compliance plans of six
telecommunications carriers: American Broadband & Telecommunications; Budget Prepay, Inc.;
Consumer Cellular, Inc.; Global Connection, Inc. of America; TerraCom, Inc.: and Total Call Mobile,
Inc. filed pursuant to the Lifeline Reform Order as a condition of obtaining forbearance from the facilities
requirement of the Communications Act of 1934, as amended (the Act), for the provision of Lifeline
service.'
The Act provides that in order to be designated as an eligible telecommunications carrier for the
purpose of universal service support, a carrier must "offer the services that are supported by Federal
universal service support mechanisms. . . either using its own facilities or a combination of its own
facilities and resale of another carrier's services. The Commission recently amended its rules to
define voice telephony as the supported service and removed directory assistance and operator services,
among other things, from the list of supported services .3 As a result of these amendments, many Lifeline-
only ETCs that previously met the facilities requirement by relying on operator services, directory
assistance or other previously supported services no longer meet the facilities requirement of the Act.4 In
the Lifeline Reform Order, the Commission found that a grant of blanket forbearance of the facilities
See Lifeline and Link Up Reform and Modernization et al, WC Docket No. 11-42 et al., Report and Order and
Further Notice of Proposed Rulemaking, FCC 12-11, at paras. 379-380 (rel. Feb. 6, 2012) (Lifeline Reform Order).
A list of the compliance plans approved through this Public Notice can be found in the Appendix to this Public
Notice.
247 U.S.C. § 214(e)(1)(A).
See Connect America Fund, WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed
Rulemaking, 26 FCC Rcd 17663, 17692-93, paras. 77-78, 80 (2011) (USF/ICC Transformation Order); pets. for
review pending sub nom. In re. FCC 11-161, No. 11-9900 (10th Cit. filed Dec. 8, 2011); Connect America Fund,
WC Docket No. 10-90 etal., Order on Reconsideration, 26 FCC Rcd 17633, 17634-35, para. 4(2011) (USF/ICC
Transformation Order on Reconsideration).
4 See Lifeline Reform Order, FCC 12-11, at para. 366, App. A; USF/ICC Transformation Order on Reconsideration
at para. 4. Some ETCs have included language in their compliance plans indicating that they have facilities or plan
to acquire facilities in the future. See, e.g., Budget PrePay, Inc. Petition for Designation as an Eligible
Telecommunications Carrier, WC Docket Nos. 09-197 and 11-42, Compliance Plan of Budget PrePay, Inc. at 3 n. 6
(filed May 1, 2012). To the extent ETCs seek to avail themselves of the conditional forbearance relief established in
the Lifeline Reform Order, we presume they lack facilities to provide the supported service under section 54.101 and
54.401 of the Commission's rules. See 47 C.F.R. § § 54.101 and 54.401. Such ETCs must comply with the
compliance plan approved herein in each state or territory where they are designated as an ETC, regardless of their
claim of facilities for other purposes, such as eligibility for state universal service funding.
requirement, subject to certain public safety and compliance obligations, is appropriate for carriers
seeking to provide Lifeline-only service.' Therefore, in the Lifeline Reform Order, the Commission
conditionally granted forbearance from the Act's facilities requirement to all telecommunications carriers
seeking Lifeline-only ETC designation, subject to the following conditions: (1) compliance with certain
911 and enhanced 911 (E91 1) public safety requirements; and (2) Bureau approval of a compliance plan
providing specific information regarding the carrier and its service offerings and outlining the measures
the carrier will take to implement the obligations contained in the Order.6
The Bureau has reviewed the compliance plans listed in the Appendix for conformance with the
Lifeline Reform Order, and now approves those six compliance plans.7
Filings, including the Compliance Plans identified in the Appendix, and comments are available
for public inspection and copying during regular business hours at the FCC Reference Information
Center, Portals II, 445 12th Street, S.W., Room CY-A257, Washington, D.C. 20554. They may also be
purchased from the Commission's duplicating contractor, Best Copy and Printing, Inc., Portals 11,445
12th Street, S.W., Room CY-B402, Washington, D.C. 20554, telephone: [phone], fax: (202) 448-
5563, or via email www.bcpiweb.com.
People with Disabilities: To request materials in accessible formats for people with disabilities
(Braille, large print, electronic files, audio format), send an email to fcc504fcc.gov or call the
Consumer & Governmental Affairs Bureau at [phone] or TTY [phone].
For further information, please contact Divya Shenoy, Telecommunications Access Policy
Division, Wireline Competition Bureau at [phone] or TTY [phone].
- FCC -
See Lifeline Reform Order, FCC 12-11 at paras. 368-381.
6 See id. at paras. 373 and 389. Subsequently, the Bureau provided guidance for carriers submitting compliance
plans pursuant to the Lifeline Reform Order. Wire/me Competition Bureau Provides Guidance for the Submission of
Compliance Plans Pursuant to the Lifeline Reform Order, WC Docket Nos. 09-197 and 11-42, Public Notice, 27
FCC Rcd 2186 (Wireline Comp. Bur. 2012).
The Commission has not acted on any pending ETC petitions filed by these carriers, and this Public Notice only
approves the compliance plans of the carriers listed above. While these compliance plans contain information on
each carrier's Lifeline offering, we leave it to the designating authority to determine whether or not the carrier's
Lifeline offerings are sufficient to serve consumers. See L/èline Reform Order, FCC 12-11 at paras. 50 and 387.
2
Appendix
Petitioner Compliance Plans Date of Filing Docket
As Captioned by Numbers
Petitioner
American Broadband & Telecommunications American April 27, 2012 09-197; 1142
Broadband &
Telecommunications
Revised Compliance
Plan
Budget PrePay, Inc. Compliance Plan of May 1, 2012 09-197; 11-42
Budget PrePay, Inc.
Consumer Cellular, Inc. Consumer Cellular April 18, 2012 09-197; 1142
Amended Revised
CompliancePlan
Global Connection, Inc. of America Global Connection April 30, 2012 09-197; 1142
Inc. of America
Compliance Plan
TerraCom, Inc. TerraCom, Inc. May 1, 2012 09-197; 11-42
Second Revised
Blanket Forbearance
CompliancePlan
Total Call Mobile, Inc. Total Call, Inc. May 17, 2012 09-197; 11-42
Revised Compliance
Plan
Budget PrePay, Inc.
d/b/a Budget Mobile
EXHIBIT 6
BIOGRAPHIES OF PRESIDENT AND
CHIEF FINANCIAL OFFICER
Budget PrePay, Inc.
d/b/a Budget Mobile
Application for ETC Designation
Idaho Public Utilities Commission Exhibit 6
R. Daniel Hyde Il
R. Daniel Hyde III is President of Budget Prepay, Inc., the largest prepaid home phone/telecommunications
company in the United States. Hyde has provided 15 years of sales and management expertise to Budget
Prepay, Inc. and has been instrumental in helping its growth into a $100 million business,
Product research, training, team-building and top management skills have been key components to
Hyde's success in developing an effective sales staff and a proven methodology to customer
service.
Based in Bossier City, Louisiana, Budget Prepay, Inc. provides prepaid telecom products to hundreds of
thousands of customers in 42 states with more than 9,000 agents nationwide. In addition to prepaid home
phone, Hyde's team of sales representatives and regional managers has introduced multiple other prepaid
products to agents and their customers, including prepaid cellular handsets and recharge minutes, international
long distance cards, virtual bill paying stations, and prepaid wireless internet.
His energy, innovation, and strong interpersonal skills keep Hyde motivated and inspiring to every
member of the Budget Prepay team.
Hyde is a native of El Paso, Texas and a 1991 graduate from the University of Texas at El Paso. Upon
graduation and moving to Louisiana, Hyde helped his father "Smokey" develop and build two paging
companies in the Shreveport/Bossier City area, accumulating more than 40,000 subscribers
David Donahue
David Donahue joined Budget on June 2, 2010 as Chief Financial Officer. Donahue worked previously
at VCFO with more than 23 years of experience in manufacturing, software, telecommunications and
retail industries. Donahue was responsible for all company financial reporting and strategic planning as
well as SEC reporting and analysis. Donahue developed and managed the operating budgets and
financial models for multiple companies in his past. He has experience in year-end audits, tax reporting
initiatives and coordinated all SOX compliance issues for multiple companies.
Donahue brings to Budget a wealth of knowledge and expertise in accounting, finance, operations, audit
human resource management and software implementations for companies such as Holly Corporation,
Capps Car Rentals, Health Vision, Puente-Brancato Companies, Viscern, Skywire Software and more.
Prior to joining VCFO, Donahue served as the CFO for Axtive Corporation, a publicity-traded
integrated technology solution provider for middle market companies. Prior to Axtive Corporation, as
CFO of Philips Speech Processing North and South America, a division of Philips Electronics, a
provider of speech technology for telecom applications; as Controller of The Pegasus Companies, a
publicly traded firm with interests in retail and medical technology and as ControllerNP of Financial of
Optical Corporation of America, a national chain of 145 optical retail stores.
Donahue received his CPA in 1990 and received his BS in Accounting from Louisiana Tech University.