20210521Final_Order_No_35049.pdf

ORDER NO. 35049 1

Office of the Secretary
Service Date
May 21, 2021

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 9, 2021, Commnet Wireless, LLC (“Commnet”) applied for designation as
an Eligible Telecommunications Carrier (“ETC”) in Idaho. The Commission issued its Notice of
Application, Notice of Modified Procedure and Order setting deadlines for interested persons to
comment on Commnet’s Application, and for Commnet to reply. The Commission Staff (“Staff”)
filed comments on May 6, 2021 and was the only party to do so.
Having reviewed the record in this case the Commission approves Commnet’s
Application.
BACKGROUND
Under the federal Telecommunications Act of 1996 (“Federal Act”), a carrier
designated as an ETC is eligible to receive federal support from the federal Universal Service Fund
(“USF”).1 47 U.S.C. § 214(e). This Commission has the authority, under the Federal Act, to grant
ETC designations within Idaho. 47 U.S.C. § 214(e)(2). Authority for the Commission to designate
ETC status is also provided in Idaho law—the Idaho Telecommunications Act of 1988 (“Idaho
Act”)—and expounded upon in prior Commission orders. See Idaho Code §§ 62-610D(1), 62-
615(1); Order No. 29841. Under this authority, this Commission has granted ETC designations to
numerous carriers in Idaho, including wireless carriers. See e.g., Order Nos. 32586, 32645, and
34163.

1 The Federal Communication Commission (“FCC”) established the federal USF with the intent to make adequate,
efficient communications available nationwide, at reasonable charges. In the Matter of Lifeline and Link Up Reform
and Modernization, Lifeline and Link Up, Federal-State Joint Board on Universal Service, Advancing Broadband
Availability Through Digital Literacy Training (“Lifeline and Link Up Reform Order”) 27 F.C.C.R. 6656, at 6660-62
(Feb. 6, 2012); 47 U.S.C. § 254(b). Lifeline is a program supported by the USF that provides monthly discounts to
eligible low-income subscribers to maintain access to communications networks. Lifeline and Link Up Reform Order,
27 F.C.C.R. 6656 at 6662-63. Idaho has an analogous state USF program, established in Idaho Code §§ 62-610 and
62-610A-610F, and a Lifeline program known as the Idaho Telecommunications Service Assistance Program
(“ITSAP”).
IN THE MATTER OF THE APPLICATION
OF COMMNET WIRELESS, LLC FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER IN
IDAHO FOR PURPOSES OF RECEIVING
RURAL DIGITAL OPPORTUNITY FUND
SUPPORT
)
)
)
)
)
)
)
)
CASE NO. CWL-T-21-01

ORDER NO. 35049

ORDER NO. 35049 2

To qualify as an ETC, an applicant must satisfy several requirements established in
federal and state law. 47 U.S.C. § 214(e); Order No. 29841. The Federal Act requires the applicant
to be a “common carrier,” offering services supported under Section 254(c) of the Federal Act
“using its own facilities or a combination of its own facilities and resale of another carrier’s
services,” unless otherwise granted FCC forbearance. 47 U.S.C. §§ 153(11), 214(e)(1)(A),
160(a)(3) (FCC has regulatory flexibility to forbear application where consistent with public
interest). The Federal Act also requires the applicant “advertise the availability of such services
and the charges therefor using media of general distribution.” 47 U.S.C. § 214(e)(1)(B).
Under the Federal Act, state commissions are granted the authority to determine
whether ETC designation is “consistent with the public interest, convenience, and necessity.” 47
U.S.C. § 214(e)(2). In evaluating this public interest element, this Commission has generally
considered two factors. See Order Nos. 33002 at 2-3; and 33226 at 3. First, the Commission
evaluates whether the carrier contributes to state assistance programs such as ITSAP and the Idaho
Telecommunications Relay Services (“TRS”) program. Id.; Idaho Code § 61-1301. Second, the
Commission considers if the designation is sought for only part of a rural telephone company’s
study area, thus leaving some (perhaps less profitable) customers without service. See Order Nos.
33002 at 2-3; and 33226 at 3. Such practice, known as “cream skimming,” has been determined
by this Commission to be contrary to the public interest. Id.
Federal regulations include these additional requirements, which the Commission has
adopted by reference, in evaluating applications for ETC designation: (1) compliance with service
requirements applicable to support received; (2) submission of a plan for proposed improvements
or upgrades to the network (where applicable); (3) demonstrated ability to remain functional in
emergencies without an external power source; (4) demonstrated willingness to satisfy consumer
protection and service quality standards; (5) financial and technical capability to provide Lifeline
service; and (6) notice to affected Tribes where designation is sought for any part of tribal lands.
See 47 C.F.R. § 54.202; No. 29841 at 5 and 16. For applicants seeking Lifeline-only ETCs, the
FCC has waived the requirement to submit a network improvement and upgrade plan, noting that
such ETCs do not receive funds to improve or extend their networks. Lifeline and Link Up Reform
Order, 27 F.C.C.R. 6656, ¶ 386. This Commission—which requires a two-year network
improvement plan and progress report (Order No. 29841 at 18) where applicable—has also waived
the requirement where a Lifeline-only ETC is requested. Order No. 33002 at 3.

ORDER NO. 35049 3

APPLICATION
Commnet is a Delaware limited liability company, authorized to do business in Idaho,
with its principal place of business at 400 Northridge Road, Suite 1100, Atlanta, Georgia 30350.
Application at 2. Commnet “provides voice and broadband service in rural areas; principally in
areas with a population of 2500 or less.” Id. Commnet states it qualifies for ETC designation
under the federal Telecommunications Act of 1996 (47 U.S.C. § 214(e)). Id. Specifically,
Commnet asserts designating it as an ETC is consistent with the public interest, convenience, and
necessity. Id. Further, Commnet is a common carrier; will advertise using media of general
distribution; will make available Lifeline service; is not seeking ETC status on tribal lands; has the
ability and commits to provide supported services; can remain functional in emergency; commits
to consumer protection and service; is committed to providing comparable local usage plans; and
will comply with all reporting requirements. Id. at 3-9.
COMMENTS
After reviewing the Application, applicable authorities and considering whether
designating Commnet as an ETC is in the public interest, Staff recommended the Commission
approve the Application.
Staff stated Commnet satisfies the Commission’s traditional public-interest criteria
because: (1) Commnet will contribute to appropriate Idaho assistance funds; and (2) no “cream-
skimming” concerns exist. Staff noted Commnet would participate in the appropriate Idaho
programs, comply with the Commission's annual reporting requirements, and otherwise comply
with Order No. 29841. Application at 4-9. Staff stated no “cream-skimming” concerns exist either
because Commnet would be an ETC for entire census blocks in unserved, high-cost areas of Idaho.
Id. at 4, Exhibit 1.
Staff also noted the Commission requires all ETCs receiving high-cost support to
provide a two-year network improvement and progress report. Order No. 29841 at 18. However,
the FCC waived the requirement for a winning bidder to file a five-year plan as part of the FCC
ETC designation process. WCB Reminds Connect Am. Fund Phase II Auction Applicants of the
Process for Obtaining A Fed. Designation as an Eligible Telecommunications Carrier, 33 F.C.C.
Rcd. 6696 (2018). Staff stated Commnet did not provide a two-year network improvement and
progress report as part of its Application. Commnet requests that the Commission waive its two-
year network improvement plan. Application at 6-7. Due to the FCC’s heightened oversight of

ORDER NO. 35049 4

Rural Digital Opportunity Fund (“RDOF”) Auction winners like Commnet, Staff believed it would
be appropriate for the Commission to waive the two-year plan requirement.
Staff noted that Commnet certifies it can function in an emergency as required by 47
C.F.R. S 54.202(a)(2) and Commission Order No. 29841.
Staff stated Commnet meets the additional requirements for ETC designation because
Commnet: 1) is a common carrier as defined in U.S.C. Title 47; 2) will provide all required services
and functionalities as set forth in Section 54.101(a) of the FCC's Rules (47 C.F.R. § 54.101(a));
3) will advertise the availability and rates for its services described in the Application through
media of general distribution as required by 47 U.S.C. $ 214(e)(1)(B); 4) will satisfy all applicable
state and federal requirements related to consumer protection and service quality standards; and 5)
will offer local usage calling plans comparable to those offered by incumbent local exchange
carriers in the “Designated Service Area.”
In summary, Staff believed the Application demonstrates Commnet’s commitment to
fulfill the obligations of an ETC in Idaho and recommended that the Commission approve it.
COMMISSION FINDINGS AND DECISION
The Commission has authority to grant ETC designation to a telecommunications
carrier under federal and state law. 47 U.S.C. § 214(e); and Idaho Code §§ 62-610D, 62-615(1).
The Commission has reviewed and considered the record, including Commnet’s Application and
Staff Comments. We now make the following findings.
A. Common Carrier, Own-Facilities, and Advertising
We first address requirements listed in § 214(e)(1) of the Federal Act. That provision
requires an applicant to be a “common carrier” offering services “using its own facilities or a
combination of its own facilities and resale of another carrier’s services,” unless otherwise granted
FCC forbearance. 47 U.S.C. §§ 153(11), 214(e)(1)(A), 160(a)(3). Commnet stated it will satisfy
this requirement by “utilizing its own facilities or a combination of its own facilities and the resale
of another carrier's services.” Application at 5. Therefore, we find Commnet will utilize its own
facilities as a facilities-based provider. On the record before us, we find Commnet is also a
“common carrier.” See 47 U.S.C. § 153(11).
An applicant seeking ETC designation must also “advertise the availability of such
services and the charges therefor using media of general distribution.” 47 U.S.C. § 214(e)(1)(B).

ORDER NO. 35049 5

Based on the record and Commnet’s assurances, we find this requirement to also be satisfied. See
Application at 5-6.
B. Public Interest and Related ETC Designation Requirements
Under the Federal Act, state commissions shall determine whether granting the
requested ETC designation is “consistent with the public interest, convenience, and necessity.” 47
U.S.C. § 214(e)(2).
First, Commnet committed to offering the services that are supported by federal
universal service support mechanisms throughout the service area for which designation is
received. Id. at 5 and 7. Commnet also committed to offering Lifeline services, as required by
FCC rules. See 47 C.F.R. § 54.101(d). We find Commnet’s offering of these services in the
auction-awarded service areas promotes the public interest because these services will deploy
RDOF auction funds to high-cost areas of Idaho which are unserved or underserved and provide
investment in facilities and equipment in these areas. This deployment also furthers this
Commission and the FCC’s goals of expanding the reach of digital connectivity to promote
economic growth in rural areas. In pursuit of deployment, Commnet has committed to satisfying
all applicable state and federal requirements related to consumer protection and service quality
standards. Id. at 8.
We also consider whether Commnet would contribute to the appropriate Idaho funds.
Order Nos. 33002 at 2-3, 33226 at 3. Staff confirmed that Commnet will participate in the
appropriate Idaho programs and comply with the Commission’s annual reporting requirements.
We find that Commnet’s commitment to participating in the appropriate Idaho programs advances
the public interest.
Next, we consider whether Commnet engaged in “cream skimming,” which we have
found to be contrary to the public interest. Order Nos. 33002 at 2-3, 33226 at 3. Because Commnet
requested ETC designation for entire census blocks in areas in unserved, high-cost areas of Idaho,
no cream-skimming analysis is required.
We therefore find that granting Commnet ETC designation in the applied for census
blocks satisfies state and federal public-interest requirements.

ORDER NO. 35049 6

C. Remaining Requirements
Finally, we address the six remaining requirements from federal regulations and Order
No. 29841. See 47 C.F.R. § 54.202.
(1) Service Requirements for Support Received. We find Commnet has sufficiently
committed to meeting these requirements. Application at 6.
(2) Plan for Proposed Improvements or Upgrades to the Network. The FCC waived the
requirement for a winning bidder to file a five-year plan as part of the ETC designation process,
citing its heightened oversight of auction winners. WCB Reminds Connect Am. Fund Phase II
Auction Applicants of the Process for Obtaining A Fed. Designation As an Eligible
Telecommunications Carrier, 33 F.C.C. Rcd. 6696 (2018). Considering the FCC’s heightened
oversight, we waive in this proceeding our requirement that Commnet’s ETC Application include
a two-year network improvement plan. See Order No. 29841 at 8.
(3) Ability to Remain Functional in Emergencies. We find Commnet has demonstrated
sufficient compliance with this requirement. Id. at 7.
(4) Willingness to Satisfy Consumer Protection and Service Quality Standards. We are
satisfied with Commnet’s assurances as to this requirement. Id. at 8.
(5) Financial and Technical Capability. Based on Commnet’s assurances we also find
this requirement to be satisfied.
(6) Notice to Affected Tribes. We find Commnet is not seeking ETC designation for
any part of tribal lands. Therefore, no tribes will be affected if Commnet’s Application is granted.
See Id. at 10; see 47 C.F.R. § 54.202; Order No. 29841 at 14.
Based on the above findings, we conclude that Commnet has satisfied the federal and
state requirements for an ETC designation, and we therefore grant the Application for the Idaho
census blocks listed in Exhibit 1 to Commnet’s Application.
O R D E R
IT IS HEREBY ORDERED that Commnet’s Application for designation as an ETC in
the Idaho census blocks listed in Exhibit 1 of Commnet’s Application is granted.
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. 35049 7

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st
day of May 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELEPHONE\CWL-T-21-01\CWLT2101_final_jh.docx