20161014Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: SEAN COSTELLO
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 14, 2016

SUBJECT: BOOMERANG WIRELESS, LLC DBA ENTOUCH WIRELESS’ ETC
APPLICATION, CASE NO. BWL-T-16-01

On August 8, 2016, Boomerang Wireless, LLC dba enTouch Wireless (enTouch
Wireless or the Company) applied to the Commission for an Order designating it as an eligible
telecommunications carrier (ETC), to provide Lifeline and tribal Lifeline services to qualifying
Idaho consumers. The Company intends to offer qualifying Lifeline and tribal Lifeline
customers a choice of one of three Lifeline Service Plans. See Application at 20-23.
The Lifeline program is intended to provide telecommunications service to eligible
low-income customers by using Universal Service Fund (USF) revenues to make the services
more affordable. Idaho participates in the residential Lifeline program pursuant to Idaho Code §
56-901. See Order No. 21713.
THE APPLICATION
enTouch Wireless is a wireless carrier and reseller of commercial mobile radio
service (CMRS) throughout the country. enTouch is an Iowa limited liability company
authorized to do business in Idaho. It sells prepaid wireless telecommunications services through
a “diverse network . . . employ[ing] Verizon, Sprint, AT&T as well as other GSM [Global
System for Mobile Commissions] carrier networks . . . .” Application at 12. The service areas
for which the Company requests designation are throughout Idaho, including certain tribal areas,
as set forth in Exhibit A to the Company’s Application. Id. at Exhibit A at 1-9. enTouch asserts
that it meets all of the requirements of Section 214(e)(1) of the Federal Telecommunications Act
to be designated as an ETC. 47 U.S.C. § 214(3). The Company notes that it has requested and
DECISION MEMORANDUM 2
been designated as an ETC in 24 states. Id. at 2. Additionally, it has pending applications in 17
states. Id. at 2-3. The Company states that it has never had a petition for ETC designation
denied. Id. at 3.
Accordingly, 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. Application
at 15-16. Specifically, the Company asserts that it: (1) is a common carrier; (2) has the financial
and technical capability for providing 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 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.1 Id. at 23.
The Company further claims 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.
The Company acknowledges that, under 47 U.S.C. § 214(e)(1)(A) of the federal
Telecommunications Act, ETCs must offer services, at least in part, utilizing their own facilities.
Id. at 15. However, enTouch invokes the FCC’s 2012 Lifeline Reform Order, stating that the

1 enTouch states that a copy of this Application was sent to affected tribal governments or tribal regulatory
authorities as listed in Exhibit G to the Application. See Id. at 23.
DECISION MEMORANDUM 3
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 has 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 only 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, “certification
requirements related to the high-cost program are . . . not applicable to enTouch Wireless’
application.” Id. at 1-2, 25.
STAFF RECOMMENDATION
Staff recommends that the Commission process enTouch Wireless’ Application under
Modified Procedure with a 21-day comment period.
COMMISSION DECISION
Does the Commission wish to process enTouch Wireless’ Application under
Modified Procedure with a 21-day comment period?

M:BWL-T-16-01_sc