20030611Final Order No 29261.pdf

Office of the Secretary
Service Date
June 11 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF IAT
COMMUNICATIONS, INC. DBA NTCH-IDAHO,
INc. OR CLEAR TALK FOR DESIGNATION AS
AN ELIGIBLE TELECOMMUNICATIONS
CARRIER.ORDER NO. 29261
CASE NO. GNR- T -03-
On February 3, 2003 , IAT Communications, Inc. dba NTCH-Idaho, Inc. or Clear Talk
filed its Petition requesting that the Commission designate it as an eligible telecommunications
carrier ("ETC") in several areas in southeastern Idaho. On May 5, 2003 , Clear Talk filed an
Amendment to its Petition stating that it was not seeking designation as an ETC for purposes of
receiving support from the Idaho Universal Service Fund pursuant to Idaho Code 9 62-610. In
addition, the Company requested that the Commission enter an interim Order granting the
Company ETC status in areas that are not contested. In other words, the Company seeks ETC
designation in non-rural areas, or more specifically, in areas that are served by Qwest
Corporation.
In this Order the Commission shall separate Clear Talk's request for an interim Order
from the question of whether Clear Talk should be designated as an ETC in areas served by rural
telephone companies. Accordingly, Clear Talk's interim request for ETC status in non-rural
areas is addressed by this final Order. The remaining issues shall be processed as directed by
Order No. 29240 in the joint proceeding involving Clear Talk's filings and a similar Application
filed by NPCR, Inc. dba Nextel Partners.
CLEAR TALK'S REQUEST FOR AN INTERIM ORDER
Clear Talk states that it provides Personal Communications Service also referred to as
Commercial Mobile Radio Service ("CMRS") or wireless service in southeast Idaho as
evidenced by the map attached as Exhibit 2 to its Petition. Clear Talk contends it serves these
areas in accordance with licenses granted to IAT Communications by the Federal
Communications Commission ("FCC"). These licenses are PCS Basic Trading Area ("BTA"
Nos. 202 (Idaho Falls), 353 (pocatello) and 451 (Twin Falls).
ORDER NO. 29261
Clear Talk maintains it meets the requirements to be designated as an ETC by the
Commission in Qwest service areas in southeastern Idaho.Specifically, in compliance with
federal and state authorities, the Company states that it offers or will offer the following services
through its wireless product: 1) voice-grade access to the public switched network; 2) local
usage; 3) the functional equivalent of dual-tone multi-frequency signaling; 4) single party
service; 5) access to emergency service where available; 6) access to operator services; 7) access
to interexchange service; 8) access to directory assistance; and 9) toll limitation for qualifying
low-income customers. Clear Talk contends that upon designation as an ETC in the designated
Qwest service areas it will make available a "universal service" offering that includes all of the
supported services above for consumers as required by the FCC and this Commission. In
addition, the Company states it will provide service to any requesting customer within the Qwest
designated service area. The Company states it will provide this service through its existing
network infrastructure and spectrum, including the same antennae, cell sites, towers, trunking,
mobile switching and interconnection facilities currently used by Clear Talk to serve its
customers.
Clear Talk also alleges it will advertise and promote the availability and price of its
universal service offering in Qwest service areas in southeastern Idaho by using media of general
distribution, including radio, newspaper and billboard advertising. The Company also states it
will use specially targeted advertising and possibly television advertising. Clear Talk states it
will expand upon this advertising plan in the designated areas, as necessary, to ensure consumers
are fully informed of Clear Talk's universal service offering.
Clear Talk has attached the Declaration of Larry Curry in support of its Application.
Curry states that he is the operations manager for IA T communications, Inc. and president of
NTCH-Idaho, Inc., the wholly owned subsidiary ofIAT, which operates IAT's wireless licenses
in Idaho and does business as Clear Talk. Curry makes the following representations in support
of the Company s Application:
I declare and certify as follows
, .
. . that: (i) Clear Talk offers wireless
telecommunications service in the areas shown on the map attached as
Exhibit 2 to Clear Talk's Petition; (ii) as set forth in the Petition, Clear Talk
1 Clear Talk contends it will provide these services in the Qwest southern Idaho telephone exchanges of American
Falls, Blackfoot, Bliss, Buhl, Burley, Gooding, Idaho Falls, Jerome, Kimberly, Lava Hot Springs, McCammon
Pocatello, Rexburg, Rigby, Shelley, Twin Falls and Wendell.
ORDER NO. 29261
offers, or will offer. all of the services designated by the Commission for
support. . .; (iii) Clear offers, or will offer, the supported services using its
own facilities and the facilities of other carriers with whom Clear Talk
contracts for services; and (iv) Clear Talk advertises, and will advertise, the
availability of the support services and the charges therefore using media of
general distribution, including radio, newspaper and billboard advertising,
specially targeted advertising, and potentially television as well.
Petition and Declaration at 12-13.Based on the foregoing, Clear Talk requests that the
Commission grant it ETC status in the Qwest southeastern Idaho service areas.
LEGAL STANDARD
The Telecommunications Act of 1996 was Congress s response to the dramatic
technological advances in the communications field in recent decades and was meant to reduce
overall regulation and to enhance competition.47 U.C. 99 151-614.One of the Act'
fundamental goals is the promotion of universal service, that is to ensure that all Americans have
access to affordable phone service.See e.
g.
47 US.C. 99 151 and 254(b)(2) ("Access to
advanced telecommunications and information services should be provided in all regions of the
Nation, including low-income consumers and those in rural, insular, and high cost areas(.J") To
further this goal, federal and state subsidies, universal service funds, are available to encourage
providers of telecommunications services to provide service to rural areas and low-income
consumers. 47 US.C. 9 214(e). The subsidized telecommunications services are known as
universal service offerings. Only carriers that are common carriers, provide or can provide
specified universal services, and have been designated as ETCs by a state commission or the
FCC are eligible to receive these subsidies.See 47 U.C. 99 214(e)(2) and 254(e). Through
the Act state commissions are given the authority to designate common carriers as ETCs.
C. 99 214(e)(2) and 254.
Applications for ETC status are governed by both federal and state law. Because
Clear Talk is only seeking ETC designation for purposes of seeking federal subsidies, the
Commission s review will employ the federal requirements that must be satisfied rather than this
2 The FCC has adopted the principle that ETC status and federal support mechanisms should be competitively
neutral, neither unfairly advantaging nor disadvantaging particular service providers or technologies. See Federal-
State Joint Board on Universal Service CC Docket No. 96-, Report and Order, 12 FCC Rcd 8776, 8801, 46-
(1997) (First Report and Order). See also First Report and Order, 12 FCC Rcd at 8932-8934, ~~ 286-290, 8944-
8945 , ~~ 311-313. Thus, wireless carriers are also eligible to be designated as an ETC under ~ 214(e) criteria and to
receive federal subsidies. !d.
ORDER NO. 29261
State s requirements. See Idaho Code 9 62-610 et seq. and Order No. 27715 , (Case No. GNR-
98- 7).
In order to be designated as an ETC, Section 214(e) of the Act requires a common
carrier to offer the services that are supported by the federal universal service support
mechanisms under 47 u.S.C 9 254(c) throughout its ETC-designated service area, use at least
some of its own facilities in providing these services, and to advertise the availability and price
of these services. 47 U.C. 9 214(e)(1)(A) and (B). See also 47 C.R. 954.201(d). The list of
designated services a telecommunications carrier must be able to provide after designation as an
ETC are as follows:
(1) Voice grade access to the public switched network;
(3) Dual tone multi-frequency signaling or its functional equivalent;
(4) Single-party service or its functional equivalent;
(5) Access to emergency services where available;
(6) Access to operator services;
(7) Access to interexchange service;
(8) Access to directory assistance; and
(9) Toll limitation.
See 47 C.R. 9 54.101(a).3 The FCC has stated that a common carrier does not have to actually
provide the supported services in a service area prior to its designation as an ETc. Report and
Order, In the Matter of Federal-State Joint Board on Universal Service 15 FCc. Rcd. 15168
15169 at 'if 2 (2000).
This Commission must grant ETC status to any qualified applicant provided that the
Company is not seeking to serve exchanges where the incumbent telephone company is a rural
telephone Company. For companies seeking ETC status in areas served by rural telephone
companies, the Commission must first make a finding that designating more than one carrier in
that area is in the public interest. 47 u.s.C. 9214(e)(2).
3 In order to receive federal universal funds an ETC is obligated to make available Lifeline and Link Up services to
qualifying low-income customers. 47 C.R. ~~ 54.405 and 54.411.
ORDER NO. 29261
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction pursuant to 47 U.C. 99 214(e)(2) and 254 and
Idaho Code 9 62-610 et seq. to review and rule upon applications filed by telecommunications
carriers to be designated as ETCs in the State ofldaho.
Based on the Company s filings, the Commission finds that Clear Talk is a wireless
common carrier that has licenses granted by the FCC to provide service in southeastern Idaho.
The Commission further finds that Clear Talk has met the requirements for ETC designation in
Qwest exchanges in southeastern Idaho as it will offer the supported services to all customers in
its designation areas through its own facilities or those of other carriers and will advertise these
services.4 Specifically, the Commission finds that: 1) Clear Talk will provide voice-
grade access
to the public switched network through an interconnection agreement with Qwest; 2) Clear Talk
currently offers unlimited local usage in its monthly service plan at no additional charge; 3)
Clear Talk offers the functional equivalent of dual-tone multi-frequency signaling by using out-
of-band signaling and in-band multi-frequency signaling; 4) Clear Talk provides Single Party
Service by providing a dedicated message path for the length of all customer calls; 5) Clear Talk
currently provides 911 access to emergency service and will be able to provide E911 service
upon request; 6) Clear Talk offers its customers access to operator services and will continue to
make them available; 7) Clear Talk will provide access to an interexchange service through
direct interconnection arrangements with MCI; 8) Clear Talk will provide access to directory
4 In regard to the manner by which a common carrier demonstrates that it can provide universal services to a state
Commission the FCC has stated:
A new entrant can make a reasonable demonstration to the state commission of its capability and
commitment to provide universal service without the actual provision of the proposed service.
There are several possible methods for doing so, including, but not limited to: (1) a description of
the proposed service technology, as supported by appropriate submissions; (2) a demonstration of
the extent to which the carrier may otherwise be providing telecommunications services within the
state; (3) a description of the extent to which the carrier has entered into interconnection and resale
agreements; or, (4) a sworn affidavit signed by a representative of the carrier to ensure compliance
with the obligation to offer and advertise the supported services. We caution that a demonstration
of the capability and commitment to provide service must encompass something more than a
vague assertion of intent on the part of a carrier to provide service. The carrier must reasonably
demonstrate to the state commission its ability and willingness to provide service upon
designation.
In the Matter of Federal-State Joint Board on Universal Service 15 F.c.R. 15168, 15178 at ~ 24 (2000). Clear
Talk has provided the Declaration of Larry Curry in support of its Petition.
ORDER NO. 29261
service by dialing "411" or "555-1212"; and, 9) Clear Talk will provide toll limitation for
qualifying low-income customers.
The Commission also finds based on the Company s representations that it has the
capability to provide these services throughout the Qwest southern Idaho telephone exchanges of
American Falls, Blackfoot, Bliss, Buhl, Burley, Gooding, Idaho Falls, Jerome, Kimberly, Lava
Hot Springs, McCammon, Pocatello, Rexburg, Rigby, Shelley, Twin Falls and Wendell.
The Commission concludes that Clear Talk's Petition and supporting materials
demonstrate that the Company has the ability and commitment to provide all the services
required for ETC designation throughout the Qwest exchanges in southeastern Idaho.
Consequently, pursuant to 47 US.C. 9 214(e), the Commission grants Clear Talk's request for an
interim Order. However, this Order is limited only to Clear Talk's request to be designated as an
ETC in the above Qwest service areas. This Order does not grant Clear Talk eligibility to seek
State of Idaho Universal Service Funds nor does it grant Clear Talk ETC designation in areas
served by rural telephone companies. In the case of the later issue it will be decided after further
proceedings. See Order No. 29240.
ORDER
IT IS HEREBY ORDERED that IAT Communications, Inc. dba as NTCH-Idaho
Inc. or Clear Talk is granted status as an eligible telecommunications carrier pursuant to 47
US.C. 9 214(e) for the following non-rural Qwest service areas in southeastern Idaho: American
Falls , Blackfoot, Bliss, Buhl, Burley, Gooding, Idaho Falls, Jerome, Kimberly, Lava Hot
Springs, McCammon, Pocatello, Rexburg, Rigby, Shelley, Twin Falls and Wendell.
THIS IS A FINAL ORDER as to this issue. Any person interested in this Order (or
in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case
No. GNR-03-8 may petition for reconsideration within twenty-one (21) days of the service
date of this Order with regard to any matter decided in this Order or in interlocutory Orders
previously issued in this Case No. GNR-03-8. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code 961-626.
ORDER NO. 29261
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
() fJ..
day of June 2003.
II &..:.J-
MARSHA H. SMITH, COMMISSIONER
ISSIONER
ATTEST:
O:GNRTO308jh
ORDER NO. 29261