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HomeMy WebLinkAbout20100903Decision Memo.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KEMPTON COMMISSIONER SMITH COMMISSIONER REDFORD COMMISSION SECRETARY COMMISSION STAFF FROM: DON HOWELL DEPUTY ATTORNEY GENERAL DATE: SEPTEMBER 2, 2010 SUBJECT: GOLD STAR COMMUNICATIONS’ APPLICATION FOR ETC DESIGNATION, CASE NO. GOL-T-10-01 On June 8, 2010, Gold Star Communications, LLC filed an Application seeking designation as an eligible telecommunications carrier (ETC) pursuant to the federal Telecommunications Act and this Commission’s Order No. 29841. Gold Star is a commercial mobile radio services (CMRS) carrier providing mobile services and conducts business as “Silver Star Wireless.” Designation as an ETC would allow Gold Star to receive monetary support from the federal Universal Service Fund (USF) and to participate in the federal Lifeline program. Gold Star is currently licensed to serve two “basic trading areas” (BTAs) in Idaho: BTA 202 (Idaho Falls) and BTA 353 (Pocatello). Application at 2. Gold Star has also entered into a lease agreement with Syringa Wireless for use of Syringa’s wireless spectrum in the areas of Wayan and the Smokey Canyon Mine. Pursuant to these BTA authorizations, Gold Star is allowed to provide wireless service in the following Idaho counties: Bonneville, Teton, Madison, Bingham, Butte, Custer, Lemhi, Jefferson, and Clark. Gold Star proposes an ETC service area in Teton County, eastern and northern Caribou County, and eastern Bonneville County. At the present, Gold Star provides CMRS and mobile service on a prepaid and post-paid basis. Gold Star’s prepaid customers purchase a specific amount of local minutes in advance and do not execute a service contract. Under certain plans, prepaid customers also have the ability to purchase specific amounts of long-distance and DECISION MEMORANDUM 2 roaming minutes. Gold Star’s post-paid customers sign a contract for a specific amount of monthly user-minutes and are billed for their usage. Id. at 2. In its Application, Gold Star states that it will offer those federally designated universal services which are supported by the federal USF program. Upon receiving ETC designation, the Company will advertise its services in various media outlets throughout its Idaho wireless service area. Gold Star also states that it will comply with all applicable Idaho service quality standards and consumer protection rules. Gold Star’s Application asserts that its designation as an ETC is consistent with the public interest, convenience and necessity, and that it promotes the purposes and fundamental goals of preserving and advancing universal service at just, reasonable and affordable rates. Gold Star maintains that it satisfies the standards used by the Federal Communications Commission when analyzing the public interest benefits of an ETC designation: (1) will increase competitive choices based upon a cost-benefit analysis; (2) will not result in “cream skimming” (serving only low-cost areas and avoiding high-cost areas); and (3) will not adversely affect the federal USF. Gold Star requests that its ETC Application be processed by Modified Procedure. Application at 21. Staff agrees and recommends that the ETC Application be processed under Modified Procedure with a 21-day comment period. COMMISSION DECISION Should Gold Star’s ETC Application be processed by Modified Procedure with a 21- day comment period? bls/M:GOL-T-10-01_dh