20181004final_order_no_34163.pdf

Office of the Secretary
Service Date
October 4,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.GLO-T-18-01
OF GLOBAL CONNECTION INC.OF )
AMERICA DBA STAND UP WIRELESS )
APPLICATION FOR DESIGNATION AS AN )ORDER NO.34163
ELIGIBLE TELECOMMUNICATIONS )
CARRIER )
On June 20,2018,Global Connection Inc.of America dba STANDUP WIRELESS
("StandUP Wireless")applied to the Commission for an Order designating it as an eligible
telecommunications carrier ("ETC")that can provide Lifeline services to qualifying consumers
throughoutIdaho.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 under Idaho Code
§56-901.See Order No.21713.
THE APPLICATION
StandUP Wireless is a Georgia corporation that provides prepaid wireless
telecommunications services as an ETC in twenty-sixstates.Application at 3-4.StandUP Wireless
has applications for wireless ETC designation pending in three states and with the FCC in ten
states.Id at 4.StandUP Wireless states it has never had an application for wireless ETC
designation denied.Id StandUP Wireless indicates that it will not and is not eligible to seek access
to funds from the federal USF for purposes of serving high-cost areas or for participating in the
Link-Up program.Id.at 1-2.StandUP Wireless avers that it meets all statutory and regulatory
requirements for designation as an ETC in the State of Idaho.Id.at 2.
StandUP Wireless provides commercial mobile radio service through its underlying
carriers,Sprint Spectrum L.P.and T-Mobile USA.Id.at 4.StandUP Wireless operates as a Mobile
Virtual Network Operator through the network infrastructure and wireless transmission facilities
it obtains from its underlyingcarriers on a wholesale basis.Id StandUP Wireless requests ETC
designation to operate statewide (excluding tribal lands)to provide Lifeline service wherever its
underlyingcarriers have wireless coverage.Id.at 15-16.
ORDER NO.34163 1
StandUP Wireless states it can provide all services supported by the universal service
program as detailed in 47 C.F.R.§54.101(a)throughout Idaho.Id.at 5.StandUP Wireless
anticipates that many of its customers will be low income.StandUP Wireless states it does not
require those customers to sign long-term service contracts,conduct credit checks as a prerequisite
to obtaining wireless service,or require payment of an out-of-pocket fee by subscribers.Id.at 5.
StandUP Wireless will receive compensation from the Lifeline program for providing its services.
Id.at 5.
StandUP Wireless commits that its Lifeline-supported voice and broadband services
will meet or exceed the minimum service standards in 47 C.F.R.§54.408 currentlyand as updated.
Id.at 5.StandUP Wireless will offer two plan options at no net cost to Lifeline customers after
application of Lifeline support.Id.at 6.StandUP Wireless will offer a voice plan that includes 750
minutes,unlimited text messages,and 1 gigabyte of data per month,and a broadband plan that
will include 500 voice minutes,unlimited text messages,and I gigabyte of data per month.Id.at
6.Additional credits and data may be purchased according to a schedule set out in the Application,
but subject to change.Id.at 6.All Lifeline plans also include a free handset and access to caller
ID,call waiting,call forwarding,three-way calling,and voicemail at no additional charge.Id.at
6.Domestic long distance calls are included at no additional charge.Id.at 7.
StandUP Wireless states it acts to preventduplicate Lifeline benefits per household and
complies with the National Lifeline AccountabilityDatabase and §54.404 of the FCC's rules.Id.
at 9-10.Further,StandUP Wireless has contracted with a third party Lifeline service bureau to
review subsidy request data.Id.at 10.
StandUP Wireless seeks a forbearance from §214(e)(1)(A)of the Telecommunications
Act,and §54.201(i)of the FCC's Rules found at 47 C.F.R.§54.201(i),which prohibit a state
commission from designating a telecommunications carrier as an ETC if the carrier is a non-
facility-based carrier that only serves customers by reselling another carrier's services.StandUP
Wireless grounds its request for a forbearance of this "facilities requirement"on the FCC's grant
of forbearance from enforcement of that requirement for carriers seeking Lifeline-only ETC
designation.Id.at 12.StandUP Wireless submitted its FCC-approved Compliance Plan with its
Application in accordance with the Lifeline and Link-Up Reform and Modernization Order.Id.at
13.
W i nN O.34163
StandUP Wireless states it (1)will provide service consistent with the FCC's grant of
D u ance from §214's Facilities Requirements,(2)is a common carrier,(3)will provide all
supported services,(4)requests designationthroughout its service area in Idaho,(5)will advertise
the availability of supported services,(6)commits to providing service throughoutthe proposed
designated service area,(7)can function in emergency situations,(8)is committed to consumer
protection and service quality,(9)is financiallyand technicallycapable,(10)will comply with the
Lifeline certification and verification requirements,(11)will comply with all regulations imposed
by the Commission,and (12)is in the public interest for the Commission to approve its
Application.Id.at 13-29.
StandUP Wireless claims its Application is in the public interest because:(1)it will
provide greater wireless opportunities to low-income consumers,(2)its offerings provide several
advantages to low-income consumers,(3)it expands consumer choice,and (4)it will not unduly
burden the USF or otherwise reduce fundingavailable to other ETCs.Id.at 25-29.
THE COMMENTS
Staff filed the only comments in this matter,and recommended the Commission
approve the Application.In forming its recommendation,Staff reviewed the Company's
Application to determine whether the Application satisfies Order No.29841.Staff also reviewed
the Application for compliance with federal requirements,namely the proceedings in FCC 16-38
including the Lifeline and Link-Up Reform and Modernization Order,the Third Report and Order,
Further Report and Order,and Order on Reconsideration.The Company submitted an FCC-
approved Compliance Plan with its Application.
Staff determined that the Company either met the appropriate state and federal
requirements for designation as an ETC,or qualified for an exemption from specific requirements.
Staff stated that the Company does not seek high-cost support and thus is eligible for exemption
from the requirement in Order No.29841 that an ETC provide two-year network improvement and
progress reports.Similarly,Staff stated that Lifeline-onlyETCs are exempt under FCC rules from
the federal requirement to provide five-year network improvement plans as contemplated in 47
C.F.R.§54.202.Staff also stated that the FCC has granted a forbearance from the requirement
that ETCs offer services,at least in part,utilizing their own facilities.Finally,the Company does
not intend to offer services on tribal lands and therefore does not have to submit an application to
tribal governments concurrentlywith its Application to this Commission.
MR NO.34163 3
Staff determined that the Company meets all other requirements of Commission Order
No.29841,as listed in Appendix 1 of that Order.Those requirements are:(1)to be a common
carrier as defined by 47 U.S.C.§214(e)(l),(2)to demonstrate ability to provide universal services,
(3)to advertise the availability of its service offerings,(4)to describe local usage plans,(5)that
the Application be in the public interest (6)that the Company be committed and have the ability
to provide supported services,(7)to be able to remain functional in emergencies,and (8)to commit
to consumer protection and service.Accordingly,Staff recommends that the Commission approve
the Company's Application.
Staff determined that the Company meets all other requirements of Commission Order
No.29841,as listed in Appendix 1 of that Order.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§62-610D,62-
615(l)and 47 U.S.C.§214(e)(2).The Commission has reviewed the record,including the
Application and its exhibits and comments of Commission Staff.We find that the requested
designation as an ETC for the purpose of providing Lifeline-only support in the State of Idaho is
consistent with the public interest,convenience,and necessity under 47 U.S.C.§214(e)(2)and
complies with previous Commission Orders.
A.§214 of the Telecommunications Act of 1996
We first address the requirements listed in §214(e)(l)of the Telecommunications Act
of 1996.That provision requires an applicant to be a "common carrier,"as defined by 47 U.S.C.
§153(11),that offers services "using its own facilities or a combination of its own facilities and
resale of another carrier's services."47 U.S.C.§214(e)(l)(A).On the record before us,we find
that StandUP Wireless is a "common carrier"under the definition found at 47 U.S.C.§153(11).
We further find that the FCC has granted forbearance from the "own-facilities"requirement in §
214(e)(l)(A)for Lifeline-only ETCs through its Lifeline and Link-UpReform Order.'47 U.S.C.§
214(e)(l)(B)requires the Company to "advertise the availability of [its]services and the charges
therefor using media of general distribution."The Company makes adequate assurances in its
Application that it will comply with this provision.Application at 17,Exh.5.Based on the
foregoing,we find that the Company satisfies the requirements of 47 U.S.C.§214(e)(l).
I In the Matter of Lifeline and Link Up Reform and Modernization,Telecommunications Carriers Eligiblefor
Universal Service Support,Connect America Fund,WC Docket No.11-42,et al,and Third Report and Order,Further Report and Order,and Order on Reconsideration,FCC 16-38.
.34163 4
B.Public Interest
In examining the public interest under 47 U.S.C.§214(e)(2),we first consider n he &
the Company would contribute to the appropriate Idaho funds.See Order No.33226 at 3.In its
Application,the Company committed to remit required Idaho Telephone Service Assistance
Program ("ITSAP")funds to the ITSAP administrator.Because the Company is applying for
Lifeline-only designation as an ETC and does not seek high-cost support,we find that the
Company fulfills this first prong of our analysis.Next,we consider whether the Company attempts
to engage in "cream skimming."Order No.29841 at 16.In Order No.29541 we explained,"Rural
cream skimming occurs when competitors seek to serve only the low-cost,high-revenuecustomers
in a rural telephone company's study area."Order No.29541 at 16.The Company requests
designation statewide (excluding tribal lands),not merely in low-cost areas.Application at 15-16.
Therefore,the Company's Application does not raise cream skimming concerns.Thus,we find
that granting the Company's Application is consistent with the public interest.
C.RemainingRequirements
Finally,we address the remaining requirements in 47 C.F.R.§54.202 and Order No.
29841.
(1)Service Requirements for Support Received.StandUP Wireless makes sufficient
guarantees in its Application that it will provide all services required by 47 C.F.R.§54.101(a)for
this Commission to find that it meets this requirement.See Application at 14.
(2)Plan for Proposed Improvements or Upgrades to the Network.Consistent with
our prior Orders,and that of the FCC,we find this requirement inapplicable because StandUP
Wireless seeks a Lifeline-only ETC designation for which it will receive no network
improvement funds.Order No.29841;Lifeline and Link-Up Reform Order,27 F.C.C.R.6656,¶
386.
(3)Ability to Remain Functional in Emergencies.StandUP Wireless makes sufficient
guarantees in its Application for this Commission to find it meets this requirement.See
Application at 14.
(4)Willingness to Satisfy Consumer Protection and Service Quality Standards.
StandUP Wireless makes sufficient guarantees in its Application for this Commission to find it
meets this requirement.See Id.at 19.
Mi>He NO.34163 5
(5)Financial and Technical Capability.StandUP Wireless makes sufficient guarantees
in its Application for this Commission to find it meets this requirement.See Id.at 19-24.
(6)Notice to Affected Tribes.StandUP Wireless does not seek ETC designation on
tribal lands with this Application;therefore,this provision is inapplicable.See Id.at 15.
ORDER
IT IS HEREBY ORDERED that the Commission approves StandUP Wireless's
Application for designation as an ETC 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 §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2018.
PAUL K LLAN ,PRESIDENT
KRISTINE RAPER COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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