20180824Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISS:ON STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 23,2018
SUBJECT:GLOBAL CONNECTION INC. OF AMERICA DBA STAND UP
WIRELESS APPLICATION F'OR DESIGNATION AS AN ELIGIBLE
TELECOMMT,NICATIONS CARRIER, CASE NO. GLO.T.I &O I
On June 20, 2018, Clobal Connection Inc. of America dba STAND UP WIRELESS
(*StandUP Wireless") applied to the Commission for an Order designating it as an etigible
telecommunications carrier ("ETC*) in order to provide Lifeline services to qualiffing consumers
throughout ldaho. The Lifeline pro$am 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 ldaho Code
$ 56-901.,See Order No. 21713.
THE APPLICATION
StandUP Wireless is a Ceorgia corporation that provides prepaid wireless
telecommunications services in twenty-six states and is designated as an ETC on a wireless basis
in all twenty six of its wireless service territories. Application at 3-4. StandUP Wireless has
applications for wireless ETC designation pending in three states and with the Federal
Communications Commission ("FCC') in ten states. Id. at4. StandUP Wireless states it has never
had an application for wireless ETC designation denied. /d. StandUP Wireless indicates that it will
not and is not eligible to seek access to funds from the federal USF for the purpose of providing
service to high cost areas or for participating in the Link-Up program. Id. at l-2. StandUP Wireless
avers that it meets all statutory and regulatory requirements for designation as an ETC in the State
of tdaho. Id. at?.
IDECISION MEMORANDUM
StandUP Wireless provides commercial mobile radio service tluough 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 urrderlying carriers on a wholesale basis. /d. StandUP Wireless requests ETC
designation to operate statewide (excluding tribal lands) to provide Lifeline service wherever its
underlying carriers have wireless coverage. Id. at l5-16.
StandUP Wireless states it can provide all services supported by the universal service
progftrn as detailed in 47 C.F.R. $ 54.101(a) throughout ldaho. 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.
ld. at 5.
StandUP Wireless commits that its Lifeline-supported voice and broadband services
will meet or exceed the minimum service standards set forth in 47 C.F.R. $ 54.408 currently and
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. al6. StandUP Wireless will offer a voice plan
that includes 750 minutes, unlimited text messages, and I 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. at6. 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 . ld. al
7.
StandUP Wireless states that it acts to prevent duplicate Lifeline benefits per household
and complies with the requirements of the National Lifeline Accountability Database and Section
54.404 of the FCC's rules. /d at 9-10. Further, StandUP Wireless has contracted with a third party
Lifeline service bureau to review subsidy request dala. Id. at 10. StandUP Wireless seeks a
forbearance from the requirement of Section 2la(eXlXA) of the Telecommunications Act, and
Section 54.201(i) of the FCC's Rules found ar. 47 C.F.R. $ 54.201(i), which prohibit a state
commission from designating a telecommunications carrier as an ETC if it offers services
2DECISION MEMORANDUM
exclusively through the resale of another carrier's services. StandUP Wireless bases its request for
a forbearance of the facilities requirement on the FCC's grant of forbearance from enforcement of
the facilities requirement for carriers seeking Lifeline-only ETC designation. Id. at I2. StandUP
Wireless submitted its FCC approved Compliance Plan with its application in accordance with the
Lifeline and Link-Up reform Order. Id. at 13.
StandUP Wireless states it (l) will provide service consistent with the FCC's Grant of
Forbearance from Section 214's Facilities Requirements, (2) is a common carrier, (3) will provide
all supported services, (4) requests designation throughout its service area in Idaho, (5) will
advertise the availability of supported services, (6) commits to providing service throughout the
proposed designated service area, (7) can function in emergency situations, (8) is committed to
consumer protection and service quality, (9) is financially and technically capable, (10) will
comply with the Lifeline certification and verification requirements, (ll) will comply with all
regulations imposed by the Commission, and (12) it is in the public interest for the Commission to
approve its applicati on. Id. at l3-29.
StandUP Wireless bases its claim that approval of its application is in the public interest
on the following: (1) it will provide greater wireless opportunities to low-income consumers, (2)
its offerings provide several advantages to lo*income consumers, (3) it expands consumer choice,
and (4) it will not unduly burden the USF or otherwise reduce funding available to other ETCs. /d.
at25-29.
STAFF RECOMMENDATION
Staff recommends that the Commission process StandUP Wireless' Application under
Modified Procedure with a 7l4ay comment period and 7-day reply period.
COMMISSION DECISION
Does the Commission wish to process StandUP Wireless' Application under Modified
Procedure with a 2l-day comment period and 7-day reply period?
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3DECISION MEMORANDUM
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Deputy Atto$ General