20170104final_order_no_33685.pdf

Office of the Secretary
Service Date
January 4, 2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF BOOMERANG WIRELESS, LLC DBA ) CASE NO. BWL-T-16-01
ENTOUCH WIRELESS' APPLICATION FOR )
DESIGNATION AS AN ELIGIBLE )
TELECOMMUNICATIONS CARRIER ) ORDER NO. 33685
PURSUANT TO 47 U.S.C. § 214(e)(2). )
On August 8, 2016, Boomerang Wireless, LLC dba enTouch Wireless (enTouch or
the Company) filed an Application requesting designation as an "eligible telecommunications
carrier" (ETC) throughout the State of Idaho to provide Lifeline and tribal Lifeline services to
qualifying Idaho consumers. Application at 1.
On November 18, 2016, the Commission issued a Notice of Application and Notice
of Modified Procedure that set a 21-day comment period. See Order No. 33640. The
Commission Staff submitted the only comments and supported the Company's Application.
Having reviewed the record, we issue this Order approving the Application as
follows.
THE APPLICATION
In its Application, enTouch states that it is an Iowa limited liability company
authorized to conduct business within Idaho. It states that it is a commercial mobile radio
services (CMRS) carrier licensed by the Federal Communications Commission (FCC) to sell
prepaid wireless telecommunications services through a "diverse network ... employ[ing]
Verizon, Spring, AT&T as well as other GSM [Global System for Mobile Communications]."
Application at 12. enTouch states that it will operate throughout Idaho, including certain tribal
areas. See id. at Exhibit A. en Touch also asserts that it meets all of the requirements of Section
214(e)(l) of the federal Telecommunications Act to be designated as an ETC. 47 U.S.C. §
214(3).
More specifically, enTouch asserts it is entitled to limited ETC designation under 47
U.S.C. § 214(e)(2), which authorizes state commissions to designate wireless ETCs. Id. at 15-
16. The Company asserted that it: (1) is a common carrier; (2) has the financial and technical
capability to provide Lifeline service; (3) commits and is able to provide services supported by
federal universal support mechanisms; (4) will advertise the availability of supported services in
ORDER NO. 33685 l
a manner reasonably designed to reach those likely to qualify; (5) commits to provide service
throughout its service area in Idaho; (6) is capable of remaining functional in emergency
situations; (7) is committed to consumer protection and service; (8) will comply with all program
uniform eligibility requirements; and (8) will comply with requirements imposed by this
Commission for ETC status. Id. at 7-16. The Company also asserts that, upon designation, it
will properly notify qualified tribal consumers who are eligible for plans related to tribal
subsidies. Id. at 23.
The Company further states that granting it ETC designation "is consistent with the
public interest, convenience, and necessity" by making Lifeline services available to Idaho
consumers at rates that are "just, reasonable, and affordable." Id. at 17 and 19. Specifically it
contends that ETC designation is in the public interest because it: (1) will compete with non­
rural ILECS, increasing competitive choice and pressure; (2) increase convenience, portability,
and security for mobile telephone service, (3) increase convenience of purchasing low-cost
usage; (4) allow text capability to users; (5) provide 911 and E911 (where available) according to
FCC regulations; (6) provide service to unserved or underserved rural and Native American
populations; and (7) provide domestic telephone toll calling, which, the Company asserts, will
decrease the burden on state regulators fielding consumer complaints due to unexpectedly large
bills. Id. at 16-20.
en Touch intends to offer qualified customers one of three Lifeline Service Plans: (1)
500 Minute Plan; (2) 250 Free Unit Plan; and (3) Tribal 1100 Free Unit Plan. Id. at 20. The 500
Minute Plan would provide 500 voice minutes, 100 texts, and 10 MB of data. The 250 Free Unit
Plan would include a free handset and would provide 250 units (1 voice minute equals 1 unit and
1 text equals one unit) and 10 MB of data. The Tribal 1100 Free Unit Plan would include a free
handset, with 1100 units that could be utilized for voice and text (where 1 voice minute equals 1
unit and 1 text equals 1 unit). The additional minutes offered under the Tribal plan is due to the
additional $25.00 per month in Lifeline support enTouch would receive based on qualifying low­
income customers living on Tribal lands. Id. at 22. The Company notes that all of its proposed
plans would enable Lifeline customers the capability of purchasing additional airtime to
supplement their Lifeline plans in the various denominations. Id. at 24.
In its Application the Company acknowledges that, under 47 U.S.C. § 214(e)(l)(A) of
the federal Telecommunications Act, ETCs must offer services, at least in part, utilizing their
ORDER NO. 33685 2
own facilities. Id. at 15. However, enTouch contends that the FCC's 2012 Lifeline Reform
Order, stating that the FCC, on its own motion in that Order, grants "Blanket Forbearance" to
"any telecommunications carrier that seeks limited ETC designation to participate in the Lifeline
program, conditioned on the ETC's compliance with certain 911 requirements and the ETC's
filing with and approval by the FCC of a compliance plan describing the ETC's adherence to
certain protections prescribed by the FCC." Id. at 12. The Company attached its approved
Compliance Plan as Exhibit D to the Application and, therefore, seeks to proffer services only
through resale of other carrier's facilities. Id. at 2.
Finally, enTouch asserts that it is seeking ETC designation for the sole purpose of
offering telecommunications plans and services to qualified low-income consumers and will not
seek or accept high-cost support or on a "wireline" basis, and, therefore, believes that
"certification requirements related to the high-cost program are ... not applicable to enTouch
Wireless' application." Id. at 1-2, 25.
STAFF COMMENTS
Staff reviewed the Company's Application and opined that it complies with the
federal Telecommunications Act of 1996, the Lifeline Reform Order, and Commission Order No.
29841. Staff's comments are summarized below.
A. Public Interest Considerations
Staff states that the Company's Application serves the public interest. Staff analyzed
whether the Company's ETC Application serves the public interest by asking whether: (1) the
Company contributes to Idaho Funds; and (2) the Company's Application raises "cream
skimming" concerns.' Staff notes that enTouch confirmed that if approved as an ETC in Idaho,
the Company would participate in the appropriate Idaho programs, specifically the Idaho Lifeline
program and the 9-1-1 program and any future reporting requirements deemed appropriate for
competitive telecommunications providers. See Order No. 32383 at 3 and e-mail from Emanuel
T. Cocian, Holland & Hart LLP. Further, Staff notes that the cream skinning analysis is
unnecessary because the Company requests ETC designation for the entire wire centers. See
Staff Comments at Exh. A. Therefore, Staff believes enTouch satisfies the requisite public
interest considerations.
1 Where an applicant asks to be designated as an ETC for part of a rural telephone company's study area, concerns
arise that the applicant intends to "cream skim" in the rural study area by serving only the low-cost, high revenue
customers in the rural telephone company's study area. See Order No. 29541 at 16.
ORDER NO. 33685 3
B. Network Improvement Plan
Staff concurs with the Company that its ETC Application need not include a network
improvement plan. The Commission does not require a network improvement plan when an
ETC only seeks Lifeline (low-income) support. See CRI-T-11-01, Order No. 32501. As the
FCC explains: Lifeline-only ETCs do not receive funds to improve or extend their networks;
thus, there is "little purpose in requiring such plans as part of the ETC designation process." See
Lifeline Reform Order p. 163, 1 386. Here, the Company requests only low-income USF
support. Therefore, Staff agrees that the Company's Application need not include a network
improvement plan. Staff Comments at 4-5.
C. Ability to Remain Functional in Emergencies
Staff believes that the Company can function in an emergency as required by the
Idaho ETC Order and Section 54.202(a)(2) of the FCC's Rules. See 47 C.F.R. § 54.202(a)(2).
Staff notes that the Company uses its own redundant facilities, and, therefore, in emergencies the
Company's customers will be able to access reasonable amounts of backup power during
external power outages, and the Company can re-route traffic around damaged facilities and
manage traffic spikes. The emergency functionality requirement is, therefore, satisfied. Staff
Comments at 5.
D. Other ETC Designation Requirements.
Staff confirms that the Company meets the other ETC requirements from Appendix 1
of Order No. 29841. Specifically, the Company: (1) is a common carrier as defined in U.S.C.
Title 47; (2) will provide the supported services listed in Sections 54.101 and 54.202(a) of the
FCC's Rules (47 C.F.R. § 54.IOI(a) and 47 C.F.R. § 54.202(a); (3) will advertise the availability
and rates for its services described in the Application through media of general distribution; ( 4)
will provide the supported services; ( 5) commits to satisfying all applicable state and federal
consumer protection requirements and service quality standards; (6) will offer rate plans that will
provide local usage consistent with Section 54.101(a)(2); and (7) will provide tribal notifications.
Staff Comments at 4-5. Therefore, Staff believes that the Company meets all applicable
requirements for designation as a Lifeline-only ETC. Staff Comments at 5-6.
DISCUSSION
We have reviewed the record, including the Company's Application and Staff's
comments. Based on the information provided, we find the Company has the requisite technical,
ORDER NO. 33685 4
financial and managerial expertise to be an ETC in Idaho. We further find that the Company is
committed to fulfilling the obligations of an Idaho ETC, namely: The Company will provide all
universal services supported by the federal USF throughout its service territory; it has addressed
all of the public interest questions that accompany an ETC application; its compliance plan has
been approved by the FCC; and it will provide multiple pricing plans which will mcrease
consumer choice for low-income telephone service in Idaho. Therefore, we find that the
Company's Application for designation as an ETC is in the public interest and approve it.
ORDER
IT IS HEREBY ORDERED that Boomerang Wireless, LLC dba enTouch Wireless's
Application for ETC designation is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code § 61-626.
ORDER NO. 33685 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2017.
ATTEST:
Commission Secretary
O:BWL-T-16-01 sc2
ORDER NO. 33685
ERIC ANDERSON, COMMISSIONER
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