20150211final_order_no_33226.pdf

Office of the Secretary
Service Date
February 11,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FIRST STEP )
INTERNET,LLC’S APPLICATION FOR )CASE NO.FSI-T-14-Ol
CONDITIONAL DESIGNATION AS AN )
ELIGIBLE TELECOMMUNICATIONS )
CARRIER FOR PURPOSES OF )
PARTICIPATING IN THE FEDERAL )ORDER ?O.33226
COMMUNICATIONS COMMISSION’S )
RURAL BROADBAND EXPERIMENTS )
On December 22,2014.First Step Internet,LLC (Company)applied to the
Commission for a conditional Order designating it as an eligible telecommunications carrier
(ETC)so it can participate in the Federal Communications Commission’s (FCC’s)Rural
Broadband Experiments.The Commission issued a Notice of Application and Notice of
Modilied Procedure with a 21-day comment period.Order No.33211.Commission Staff was
the only party to file written comments.
BACKGROUND
First Step Internet is a facilities-based regional Internet Service Provider,providing
fixed broadband Internet access services,and ‘a variety of fixed terrestrial broadband services,
including dial up.DSL,fiber,cable Internet and tixed wireless broadband services.”Application
at 2.The Company also offers voice services using Voice over Internet Protocol (VoIP)
technology.Id.The service area for which the Company requests designation is set forth in
Exhibit I to the Company’s Application,but includes part of Washington,and parts of north and
central Idaho.Id.at 1.
The FCC’s Rural Broadband Experiments (RBE5),in which First Step Internet has
applied to participate,are intended to bring “robust,scalable broadband networks”to rural
communities unserved by “an unsubsidized competitor that offers voice and Internet access
delivering at least 3 Mbps downstream/768 kbps upstream.”On December 5,the FCC
provisionally selected the Company to receive funding for the RBE.Id.at 1.The funding is
contingent on the Company meeting certain technical and financial qualifications which include
obtaining ETC designation from this Commission by March 5,2015.Id.
Application at I;Wire/me Competition Bureau Announces Application Process for Entities Interested in
Participating in the Rural Broadband Experiments,29 FCC Rcd.10016 (2014)at ¶2.
ORDER NO.33226 1
THE APPLICATION
First Step Internet requests ETC designation to satisfy requirements for it to
participate in and receive funding for the FCCs Rural Broadband Experiments (RBEs).Id.at 2.
The RBEs,initiated by the FCC in July 2014,are part of the FCC’s efforts at comprehensive
reform of the universal service system through the Connect America Fund,established in
November 2011.Id.at 3;see USFJCC Transformation Order Connect America Fund National
Broadband Plan for Our Future,et seq.,Report and Order and Further Notice of Proposed
Rulemaking,26 FCC Red 17663 (2011).The RBEs use Connect America funding to advance
broadband networks in rural communities,in price cap areas.Application at 3.The FCC
provisionally selected First Step Internet to receive RBE funding,but requires the Company to
obtain and confirm ETC status,among other technical and financial qualifications.Id.at 1-2.
The Company asks the Commission to grant the Company ETC status that is “conditional and
effective upon it being awarded”FCC funding for participation in the RBE.Id.at 2.
The Company states that it qualifies for ETC designation under the federal
Telecommunications Act (47 U.S.C.§214(e)(1)),the Federal Communications Commission’s
eligibility rules (47 C.F.R.§54.101(a)),and other requirements set forth by this Commission,
outlined in the Appendix to Commission Order No.29841.See Application at 4-9.Also,the
Company states that granting it ETC designation will serve the public interest by enabling it to
“provide ongoing support to immediately accelerate deployment of networks for voice and
broadband services in unserved areas.”Id.at 9-10.The Company further asserts that approval
of its Application “will increase customer choice and ...make available new service offerings,
including wireless broadband and Lifeline services.”Id.at 10.
STAFF COMMENTS
Staff reviewed First Step’s Application to see if the Company fulfilled requirements
in the federal Telecommunications Act of 1996,the Connect America Fund,and Commission
Order No.29841.These requirements include that the Company:(1)have common carrier
status;(2)commit to and be able to provide services supported by federal universal support
mechanisms;(3)commit to and be able to provide supported services as required by this
Commission;(4)advertise the availability of supported services;(5)not seek ETC designation
for Tribal Lands;(6)be capable of managing traffic and maintaining functionality without an
external power source;(7)comply with applicable consumer protection and service quality
ORDER NO.33226
standards;(8)provide a description of its local usage plans as required by this Commission;and
(9)advance the public interest through its ETC designation.See Comments at 3-4;Order No.
29841 (and Appendix).
Staff examined the Company’s compliance with each of these requirements.
Comments at 4-6.Staff addressed requirements (6)and (9)in more detail.Id.at 4-5.
Ultimately,Staff determined all requirements were met.Having determined that all federal and
state requirements for the Company’s Application were satisfied,Staff recommended that the
Commission approve the Company’s request for a conditional ETC designation for the census
blocks outlined in Exhibit 1 of the Application.
COMMISSION FINDINGS
The Commission has authority to grant ETC designation to a telephone company
under federal and state law.47 U.S.C.§214(e);Idaho Code §sS 62-610D,62-615(1).
The Commission has reviewed and considered the record in this case,including First
Step Internet’s Application and exhibits,and Staff comments.The Commission agrees with
Staffs assessment that the Company has satisfied the nine requirements for ETC designation.
Specifically,when assessing the public interest requirement,we consider the
“advantages and disadvantages of the applicant’s service offering.”Order No.29841 at 16.As
to the advantages,we note that,in January 2013,we approved First Step Internet as a registered
wholesale provider of local telecommunications services in Idaho.Order No.32721.In so
approving,we determined that First Step Internet was contributing,as appropriate,to the Idaho
Universal Service Fund,Idaho Telecommunications Relay System,and Idaho Telephone
Assistance Program.See Order No.32383 at 3.We find that such contributions benefit the
public interest.In assessing possible disadvantages of the Company’s request,we consider
whether it is seeking ETC designation “for an area less than the entire study area of a rural
telephone company.”Comments at 5;Order No.29841 at 16.In such circumstance,known as
“cream skimming,”a company can avoid providing services throughout the rural study area,
which is contrary to the public interest.Comments at 5.However,“the FCC’s RBE funds are
applied to census blocks rather than study areas,”thus the issue of cream skimming is
inapplicable here.Id.Accordingly,we find that the public interest requirement is met.
The Commission finds that the Company has satisfied the federal and state
requirements for a conditional ETC designation and will therefore grant the Application for the
ORDER NO.33226 3
census blocks outlined in Exhibit 1.Per the Company’s request,the ETC designation is
“conditional and effective upon [the Company]being awarded the [RBE funding].”Application
at 1-2.
ORDER
IT IS HEREBY ORDERED that the Commission approves First Step Internet’s
Application for conditional designation as an eligible telecommunications carrier as discussed
herein.
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.
DONE by Order ofthe Idaho Public Utilities Commission at Boise,Idaho this //‘
day of February 2015.
\(
MACK A REDFO ,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
J n D.Jewell
ommission Secretary
O:FSI-T-1 4-Oldjh2
ORDER NO.33226 4