20090710Decision Memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KEMPTON
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:NEIL PRICE
DATE:JULY 9, 2009
SUBJECT:APPLICATION OF CTC TELECOM, INc. FOR DESIGNATION AS AN
ELIGIBLE TELECOMMUNICATIONS CARRIER; CASE NO. CTL- T -09-01.
On April 23, 2009 CTC Telecom, Inc. ("CTC" or "Company ) filed an Application
pursuant to Section 214( e)(1 )-(2) of the Telecommunications Act of 1934, Sections 54.201 of the
Rules of the Federal Communications Commission ("FCC") and the rules and regulations of the
Idaho Public Utilities Commission, for designation as an Eligible Telecommunications Carrier
ETC") for the purpose of receiving support from the Universal Service Fund ("USF"
).
Application
at 1.
On May 29, 2009, the Commission issued a Notice of Application and Modified Procedure
and established a 21-day comment period regarding CTC's Application. See Order No. 30824.
Thereafter, Commission Staff was the only party to submit written comments within the established
comment period.
THE APPLICATION
CTC, a wholly owned subsidiary of Cambridge Telephone Company ("Cambridge ), is a
Commercial Mobile Radio Services ("CMRS") carrier marketing and selling its mobile wireless
services under the brand name Snake River PCS. Id. at 2. The Company is licensed to provide
telecommunications services in Basic Trading Area ("BT A") 050 in Idaho, including the following
counties: Adams, Boise, Gem, and northern Washington. Id. The Company s proposed ETC service
area includes, but is not limited to, the Idaho communities of New Meadows, Council, Indian Valley,
Cambridge, Garden Valley, Horseshoe Bend, Idaho City and Lowman. Id.Exhibit A.
The Application contains certain information related to CTC's voice grade access service
local usage plan, dual tone multi-frequency signaling, single party service, emergency services
DECISION MEMORANDUM
operator services, interexchange (long distance) services, directory assistance and toll limitation for
qualifying low-income consumers. Id. at 5. Upon ETC certification, CTC will advertise its services
in the media throughout its wireless service area. Id. at 11.
STAFF COMMENTS
Staff reviewed CTC's filing and recommends that the Commission approve the Company
Application pertaining to the non-rural wire centers within Qwest Corporation s ("Qwest") service
area and all of the rural wire centers within Cambridge and Citizens Telecommunications
Citizens ) service area. Staff Comments at 12. Staff further recommends that the Commission
deny CTC's Application for the one rural wire center, Midvale, within Midvale Telecom
Midvale ) service area. Id.
Staff reviewed CTC'Application to ensure compliance with the federal
Telecommunications Act of 1996 ("the Act") and Commission Order No. 29841. Id. at 2. Staff
asserted that granting ETC designation to more than one telecommunications carrier in non-rural
service areas is consistent with the purposes of the Act and past Commission Orders. Id.; See also
Order No. 29261. However, Staff noted that the Act treats ETC designation in rural areas
differently, granting more discretion to state commissions to determine whether multiple carriers in
rural areas is "in the public interest." Id. at 3. Staff proceeded to analyze CTC's ETC designation
request under the rubric described in Section 214 of the Act. Id. at 4.
Staff stated that CTC's proposal to serve only part of the service areas of Incumbent Local
Exchange Carriers ("ILECs ), Citizens and Midvale, is problematic in that it "does not "avoid the
appearance of the appearance of cream skimming," a deliberate practice of "targeting low cost areas
and avoiding high cost areas.Id. at 6. Staff agrees that CTC "avoids the appearance of cream
skimming in areas where the Application includes all wire centers in a designated service area.Id.
at 8. Staff declared that the Company could remove the appearance of cream skimming by removing
the wire centers that represent partial service areas.Id. Staff cites to the relatively minimal
impact to the USF posed by CTC's Application and prior Commission and Federal action granting
ETC designation to numerous wireless service companies as support for a finding that CTC'
designation as an ETC is in the public interest. Id.
Staff is satisfied that CTC meets the remaining statutory requirements for ETC designation as
outlined in Order No. 29841. Id. at 9-10. Finally, Staff noted that denying CTC's Application
would preclude rural customers from "receiving Idaho Telephone Service Assistance Program
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(ITSAP), federal Lifeline and Linkup support as well as other potential technological and safety
benefits " even though the aforementioned benefits are currently "available to consumers through the
ILECs.Id. at 11.
COMMISSION DECISION
Does the Commission wish to approve CTC's Application for designation as an Eligible
Telecommunications Carrier?
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IlJ~
Neil Price
gdk/M:CTLTO901 np2.doc
DECISION MEMORANDUM