20140401final_order_no_33002.pdf

Office of the Secretary
Service Date
April 1,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CUSTER TELEPHONE BROADBAND )CASE NO.CTB-T-14-O1
SERVICES LLC FOR DESIGNATION AS AN )
ELIGIBLE TELECOMMUNICATIONS )
CARRIER FOR LOW-INCOME SUPPORT )ORDER NO.33002
________________________________________________________________________________________
)
On January 6,2014,Custer Telephone Broadband Services LLC (the “Company”)
applied to the Idaho Public Utilities Commission (the “Commission”)for an Order designating it
as an eligible telecommunications carrier (“ETC”)that can participate in Lifeline and receive
universal service fund,low-income support in the Salmon,Idaho exchange area (the “Designated
Service Area”).Application at 1.
On March 4.2014,the Commission issued a Notice of Application and Notice of
Modified Procedure that set a 21-day comment period.See Order No.32989.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,the Company says it is a wholly owned subsidiary of Custer
Telephone Cooperative,Inc.with its principal place of business in Challis,Idaho.The
Company’s Certificate of Public Convenience and Necessity authorizes it to provide local
exchange and interexchange services in Idaho.The Company is a full-service wireline carrier
that provides facilities-based,local exchange services in the Designated Service Area.The
Company says the Designated Service Area does not include areas served by rural telephone
companies,and is part of the service area of CenturyTel of Idaho,Inc.dba CenturyLink.Id at 1-
2,4,and 7.
The Company says it meets the requirements to be an ETC under Section 2 14(e)of
the federal Telecommunications Act (47 U.S.C.§214(e)),the Federal Communications
Commission’s eligibility rules and orders (47 C.F.R.§sS 54.201,54.202,and 54.405;and FCC
12-1 1 (the “Lifeline Reform Order”),and the Commission’s eligibility requirements as specified
in Commission Order No.29841.Id.at 1,3-4.Specifically,the Company says it (1)is a
ORDER NO.33002 1
common carrier;(2)offers services that are supported by federal universal support mechanisms;
(3)will use its own facilities,in whole or in part,to provide the supported services;(4)will
provide the supported services throughout its Designated Service Area,including access to the
public switched telephone network,local calling service,access to emergency services,as well
as access to operator services and directory assistance;(5)will advertise the availability of such
services using media of general distribution;(6)will make Lifeline service available to
qualifying low-income consumers;(7)will certify that it will comply with the service
requirements applicable to support that it receives;(8)will remain functional in emergency
situations;(9)will satisfy consumer protection and service quality standards;(10)will provide
local usage plans comparable to the incumbent local exchange carriers (“ILECs”)already
operating in the proposed Designated Service Area;(11)will notify any affected tribal
governments or tribal regulatory authorities;(12)will comply with all applicable reporting
requirements;and (13)will take steps to limit fraud,waste and abuse of the federal USF.Id.at
3-7.
The Company says that granting its Application will serve the public interest and the
market by promoting additional service offerings in the Designated Service Area and enabling
the Company to offer Lifeline to qualifying consumers.This will lower costs,increase quality
and customer choice,and incent other carriers to improve their networks and service offerings.
Id.at 8.
STAFF COMMENTS
Staff reviewed the Company’s Application and opined that it complies with the
federal Telecommunications Act of 1996,the L/ëline Reform Order,and Commission Order No.
29841.Staffs comments are summarized below.
A.Public Interest Considerations
Staff says the Company’s Application serves the public interest.Staff typically
analyzes whether a 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.1 Here,the Company’s CPCN requires the Company to report number
utilization forecasts and contribute to the Idaho Universal Service Fund,Idaho
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.33002
Telecommunications Relay System,Idaho Telephone Assistance Program and any future
reporting requirements deemed appropriate for competitive telecommunications providers.See
Order ISo.32383 at 3.In addition,no “cream skimming”concerns exist because the Company
requests ETC designation for an area served by a non-rural incumbent local exchange carrier.
Staff thus believes the Company’s Application serves the public interest.Staff Comments at 2-3.
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-l1-0l,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,¶386.Here,the Company requests only low-income USF
support.Staff thus agrees that the Company’s Application need not include a network
improvement plan.Staff Comments at 3-4.
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,47 C.F.R.§54.202(a)(2).Staff
notes that the Company uses its own redundant facilities.Accordingly,in emergencies the
Company’s customers will be able to access reasonable amounts of backup power during
external power outages,and the Company can reroute traffic around damaged facilities and
manage traffic spikes.The emergency functionality requirement is,therefore,satisfied.Staff
Comments at 4.
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:(I)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.§54.101(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.
ORDER NO.33002 3
Stati Comments at 4-5.The Company thus meets all applicable requirements for designation as
a Lifeline-only ETC.Staff Comments at 4-5.
DISCUSSION
We have reviewed the record,including the Company’s Application and Staffs
comments.Based on the information provided,we find the Company has the requisite technical,
financial and managerial expertise to be an ETC in Idaho.We further find the Company is
committed to fulfilling the obligations of Idaho ETC:the Company will provide all universal
services supported by the federal USF throughout its Designated Service Area;it has addressed
all public interest questions that accompany an ETC application;and it will provide service plans
in accordance with its CPCN.We thus find that the Company’s Application for designation as
an ETC is in the public interest and we approve it.
ORDER
IT IS HEREBY ORDERED that the Company’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 §6 1-626.
ORDER NO.33002 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3/
day of March 2014.
PAUL KJELLA’JDER,PRESIDENT
MACK A.REDFORD,COM IS STONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D.Jeweil
Commission Secretary
O:CTB-L I 4-0 Ikk2
ORDER NO.33002 5