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HomeMy WebLinkAbout20100608Application.pdfRECEIVED~.QJLis~pu Molly O'Leary 2tUO JU -8 AM 1:- 59 iDAHO PU BLl c, _ , UTILITIES COMMISSION ATTORNEYS AT LAW Tel: 208-938-7900 Fax: 208-938-7904 mol i y~ rich ard. 0 n a ndol eary. com P.O. Box 7218 Boi.e. 1D 83707 - 515 N. 27th St. Boi.e. ID 83702 7 june 2010 Ms. jean jewell Commission Secretary Idaho Public Utilties Commission POBox 83720 Boise ID 83720-0074 &OL -(-to -al Hand Delivered Dear Ms. jewell: I am enclosing an original and seven (7 copies of GOLD STAR COMMUNICATIONS, LLC's APPLICATION FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER. Also enclosed is a copy to be date stamped and returned for our fies. Please note the enclosed Application contains confidential trade secret information that is exempt from public disclosure pursuant to Section 9-340D(1), Idaho Code. Pursuant to Rule 67 of the Rules of Procedure of the Idaho Public Utilties Commission, the enclosed trade secret information has been submitted on yellow paper and has been separated from the non- confidential portion of the Application. PLLC MOLLY O'LEARY (ISB # 4996) Richardson & O'Leary PLLC 515 North 27th Street P.O. Box 7218 Boise, Idaho 83707 Telephone: 208.938.7900 Fax: 208.938.7904 E-mail: molly(?richardsonandoleary.com RECEIVED 20ID JUN -8 AI1 7: 59 IDAHO PUB! ,.. UTIUTiÉS COMlflšSION Attorneys for Gold Star Communications, LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF) GOLD STAR COMMUNICATIONS, LLC FOR) CASE NO. GOL-T-10-01 DESIGNATION AS AN ELIGIBLE ) TELECOMMUNICATIONS CARRIER )PURSUANT TO THE ) TELECOMMUNICATIONS ACT OF 1996 ) ) APPLICATION OF GOLD STAR COMMUNICATIONS, LLC FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER Gold Star Communications, LLC ("Gold Star"), by and through its undersigned attorney, hereby submits this Application for Designation as an Eligible Telecommunications Carrier e'ETC") pursuant to Sections 214(e)(1) - (2) of the Telecommunications Act of 1934, as amended ('he Act'), 476 U.S.c. §214(e)(1)-(2), and Section 54.201 of the Federal Communications Commission's ("FCC") rules, 47 C.F.R. § 54.201, and this Commission's ETC Designation Requirements ("IPUC ETC Requirements'1.1 Gold Star requests that it be i See In the Matter of the Application of WWC Holding Co.; Inc dba CellularOne Seeking Designation as an Eligible Telecommunications Carrier That May Receive Federal Universal Service Support Order No. 29841, Appendix pp. 1-3 (lPUC Case No. WST-T-05-1, served August 4, 2005) (hereinafter, ill PUC ETC Requirements Order"). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 1 designated as eligible to receive all available support from the federal Universal Service Fund ("USF'1 including, but not limited to, support for rural, insular, high cost areas and low income customers in geographic areas specified in this Application, and that it be approved to participate in the Lifeline program. In support of this Application, Gold Star provides the following information: i. APPLICANT Gold Star is a Commercial Mobile Radio Services e'CMRS") carrier providing "mobile service" as defined in 47 U.s'c. § 153(27) doing business as "Silver Star Wireless". Gold Star provides such CMRS and "mobile service" on a pre-paid and post-paid basis. Gold Star's pre- paid customers purchase a specific amount of local callng minutes in advance and do not sign a contract. In certain plans, pre-paid customers also have the abilty to purchase specific amounts of long distance and roaming minutes. Gold Star's post-paid customers sign a contract for a specific amount of monthly user-minutes and are biled for their usage. Gold Star provides interstate telecommunications services as defined in 47 U.s.c. § 153(22) and 47 C.F.R. § 54.706. Through its cellular authorizations, Gold Star is licensed to serve the following Basic Trading Area(s) ("BTAs") in Idaho: BTA 202 (Idaho Falls)¡ BTA 353 (Pocatello). In addition, Gold Star has entered into a lease agreement with Syringa Wireless, LLC for use of its wireless spectrum (BT A 353) in the Wayan area and that of the Smoky Canyon Mine owned by the J.R. Simplot Company. Pursuant to these authorizations, Gold Star is authorized to provide wireless service in the following Idaho counties: Bonnevile, Teton, Madison, Bingham, Butte, Custer, Lemhi, Jefferson, and Clark. Nevertheless, Gold Star is currently seeking ETC designation only in Teton County, eastern and northern Caribou County, and eastern Bonnevile County.2 2 CONFIDENTIAL Exhibit A, attched, is a map showing Gold Star's current wireless coverage superimposed over a map of the counties for which it seeks ETC designation. GOLD STAR COMMUNICATIONS, LLC ETCAPPLICATION - 2 II. ELIGIBILITY AND IDENTIFICATION OF THE SERVICE AREA Under Sections 214(e) and 254 of the Act, the Idaho Public Utilties Commission npUC" or "Commission'1 is authorized to designate Gold Star as an ETC. Section 214(e) of the Act requires state commissions to designate as an ETC, throughout the service area for which ETC status is sought, any common carrier that: (i) offers services that are supported by federal universal support mechanisms¡ and (ii) advertises the availabilty of such services. In its First Report and Order implementing Sections 214(e) and 254 of the Act, the FCC designated the specific features a carrier must provide or agree to provide to be designated as an ETC.3 The FCC also recognized that wireless telecommunications providers are eligible to be designated as ETCs.4 Gold Star is a telecommunications carrier as defined in 47 U.s.c. § 153(44) and 47 C.F.R. § 51.5(a), and is a telecommunications carrier for the purposes of Part 54 of the FCC's rules. 47 U.S.c. § 54.1 et seq. Gold Star, therefore, is considered a common carrier under the Act. Section 214(e)(2) of the Act provides that ETC designations shall be made for a "service area" designated by the state commission. Section 214(e)(5) of the Act provides that the "service area" shall be a geographic area established by the state commission. In areas served by a rural telephone company, the FCC's rules generally define a competitive ETC's service area to mean the local exchange carrier's ("LEC") study area.s Attached hereto as Exhibit B is a map depicting Gold Star's proposed ETC service area in Idaho superimposed over the rurallLEC exchanges fallng within Gold Star's proposed ETC service area. Attched as Exhibit C-1 is a list of rurallLEC wire centers that fall within Gold Star's BTA 3 Federal-State Joint Board on Universal Service; First Report and Order; 12 FCC Rcd 8776, 8909-25 (1997) ("First Report and Order"). 4 Id at 8858-59. S See; 47 C.F.R. §S4.207(b). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 3 licensed service areas for which it is seeking ETC designation.6 Also attched is CONFIDENTIAL Exhibit C-2, which shows the population densities of the relevant ILEC wire centers, including the specific wire center areas for which Gold Star seeks ETC designation. III. LEGAL STANDARD FOR GRANTING ETC STATUS Gold Star satisfies each of the statutory and regulatory prerequisites set forth in the Act, the FCC Rules7 and this Commission's ETC Requirements.8 On .March 17, 2005, the FCC released its FCC ETC Requirements Order establishing additional requirements for carriers seeking ETC designation before the FCC. These additional requirements, however, are not binding on state commissions. This Commission subsequently considered whether to adopt all or some portion of the rules promulgated by the FCC and, as previously noted, issued a set of ETC designation requirements in Commission Order No. 29841. Gold Star may be designated as an ETC in ruralILEC areas upon a finding that: (1) it offers the supported universal services¡ (2) it advertises the availabilty of those services using media of general distribution in its service area¡ and (3) such a designation would serve the public interest,tO To comply with the specific requirements set forth in the FCC ETC Requirements Order and the IPUC ETC Requirements Order, Gold Star includes in this Application the following: 6 Because some ILEC exchanges include more than one ILEC wire center, there is some variation between the list of ILEC centers on Exhibit C-1 and the ILEC exchanges shown on Exhibit B. 7 47 U.S.c. § 214(e)(1)-(2), and 47 C.F.R. § 54.201. 8 See IPUC Order No. 29841. 9 In the Matter of Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371 (2005) ("FCC ETC Requirements Order'1. 10 See, 47 C.F.R. § 54.207(c). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 4 . Demonstration of its commitment and abilty to provide supported services, including a two-year, wire center-specific network improvement plan, attched hereto as CONFIDENTIAL Exhibit D¡ . Demonstration of its abilty to remain functional in emergency situations¡ . Its commitment to comply with all applicable service quality standards and consumer protection rules, and an agreement to comply with Cellular Telecommunications and Internet Association's Consumer Code for Wireless Service ("CTIA Code")¡ and . A description of Gold Star's local rate plans and the local usage plans for the ILECs A. UNIVERSAL SERVICES PROVIDED BY GOLD STAR Gold Star wil offer the federally designated services listed at 47 C.F.R. § 54.1 01 (a). The services which are supported by the federal USF program are: (1) voice grade access to the public switched telephone network¡ (2) local usage¡ (3) dual tone multi-frequency signaling or its functional equivalent¡ (4) single-part service or its functional equivalent¡ (5) access to emergency services¡ (6) access to operator services¡ (7 access to interexchange service¡ (8) access to directory assistance¡ and (9) toll limitation for qualifying low-income consumers.11 Gold Star is a full-service wireless carrier that offers all of these services, as described in detail below, throughout its licensed service area utilzing its own wireless network infrastructure (antenna, cell-sites, towers, trunking, mobile switching, and interconnection). 1. Voice Grade Access to the Public Switched Telephone Network. As previously noted, FCC Rule Section 54.101(a)(t) requires voice-grade access to the public switched telephone network. The FCC defines this as: the abilty of a user of telecommunications services to transmit voice communications, including signaling the network that the caller wishes to place 11 47.C.F.R. 54.101(a). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 5 a call, and to receive voice communications, including receiving a signal indicating there is an incoming calL. For the purposes of this part, bandwidth for voice grade access should be, at a minimum, 300 to 3,000 Hertz.12 Gold Star provides voice grade access to the public switched telephone network through interconnection arrangements with local telephone companies. Gold Star offers its subscribers this service at a bandwidth between no less than 300 to 3,000 Hz, thereby providing voice grade access consistent with the FCC's definition. 2. Local Usage. Gold Star rate plans provide local usage consistent with Section 54.101(a)(2) of the FCC's Rules. In the First Report and Order, the FCC deferred a determination on the amount of local usage that a carrier would be required to provideP Any minimum local usage requirement established by the FCC wil be applicable to all designated ETCs. Gold Star meets the local usage requirements by including local usage in its rate plans and Gold Star wil comply with any and all minimum local usage requirements adopted by the FCC. Consistent with the IPUC ETC Requirements Order; Appendix p.3, Gold Star submits its rate plan brochures as Exhibit E. The relevant ILEC local usage rate plans are on file with the Commission at: http://ww.puc.state.id.us/tarriff/approved/title61/approved.htm. A comparison of Gold Star's local callng rates with other carriers in Gold Star's service area is attched as Exhibit F. The Commission has expressly rejected the FCC's requirement that the applicant's usage plan be comparable to that of the ILEC, stating: "we find it is suffcient for the ETC applicant to simply describe its local usage plans and those of the ILEC."t4 The t2 47 C.F.R. § 54.101(a)(t). 13 Id at 8814 14 IPUC ETC Requirements Order; p.12¡ see also; In the Matter of the Petition of Inland GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 6 Commission aptly noted that the FCC's comparabilty analysis could potentially discourage carriers from offering diverse services, and that, with competition, consumers should have the option to obtain the type of service offering they would Iike.ls One of the distinct advantages to the Gold Star rate plans is that Gold Star provides signifcantly wide local callng areas. Whereas the relevant ILEC local callng areas are primarily limited to their local exchange boundaries and extended service area boundaries, Gold Star's local callng area for its basic "Valleys Plan" includes local callng areas in parts of Utah, Eastern Oregon and North Western Colorado. See Exhibit G, attched hereto. In addition, Gold Star offers additional"local" network coverage via switching partners Syringa Wireless, LLC and RINA Switching. Second, Gold Star provides unlimited, toll-free service for 911 emergency calls and for 611 customer care. Gold Star also provides toll-free 511 road reports to the Idaho Department of Transporttion. Finally, all of Gold Star's nationwide and eight-state callng plans priced at $49.95 per month and higher include unlimited nationwide long distance at no additional charge, unlimited night and weekend callng, and unlimited mobile-to-mobile callng.16 Cellular Telephone Company for Designation as an Eligible Telecommunications Carrier Under 47 u.S.C §2/4(e)(2l Order No. 30212, p.11 (IPUC Case No. INC-T-06-:Q2, served Dec. 28,2006). tS Id t6 See Exhibit E (Gold Star's rate plan brochure). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 7 3. Dual-Tone, Multi-Frequency Signaling or its Functional Equivalent. Pursuant to Section 54.101(a)(3) of the FCC's Rules, an ETC must provide dual tone multi-frequency ("DTMF") signaling to facilitate the transportation of signaling throughout its network. Gold Star currently provides DTMF signaling consistent with the FCC's Rules. 4. Single-Party Service or its Functional Equivalent. "Single-part service" means that only one part wil be served by a subscriber loop or access line in contrast to a multi-party line.17 Gold Star provides single-party service, as required by 47 C.F.R. §54.101(a)(4). 5. Access to Emergency Services and Abilty to Remain Functional in Emergency Situations. The abilty to reach a public emergency service provider by dialing 911 is a required service in any universal service offering. Gold Star currently provides all of its customers with access to emergency service by dialing 911 in satisfaction of this requirement. Phase i E911, which includes the capabilty of providing both automatic numbering information (" ANI") and automatic location information (" ALI"), is only required if a public emergency service provider makes arrangements with the local provider for the delivery of such information.18 In addition to providing Phase 0 E911, Gold Star provides Phase I and II wireless E911 to Public Safety Answering Points e'PSAP") when they request this improved service and are ready to receive the Phase I or II call information. To date, Gold Star has deployed requests for E911 Phase II in Bonnevile County. Gold Star has not received requests in any other counties in its current service area. 17 First Report and Order at 8810. 18 See Id; at 8815-17. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 8 Phase I and II wireless E911 service provides valuable location-based information to the PSAP which allows emergency personnel to determine the cell site serving the caller and the geographic location of the phone placing the calL. Additional cell site coverage in rural areas wil greatly improve access to wireless E911 services and greater accuracy of the location based information received by the PSAP. Gold Star hopes to improve its cell site coverage with the use of USF support. See, CONFIDENTIAL Exhibit D. Consistent with the IPUC ETC Requirements. Order at Appendix p. 3, Gold Star also has the abilty to remain functional in emergency situations. Gold Star has designed a fault- tolerant network that employs the following features: · Nortel MTX switch with fully redundant fault-tolerant processors · 12 hours of back-up battery · 250 KW generator with the fuel supply connected to the public natural gas utilty · Complete complement of spare circuit boards · Self-Healing Alternate Route Protection Service for Fiber Facilties interconnection · Multiple alternate trunk routes for PSTN interconnection trunks · Redundant Microwave radio links where used · Automated 7x24 network monitoring cell sites · Overlapping cell site coverage with retry for blocked calls · Backhaul network engineered with surplus back-bone capacity · Ready access to growth channel element module stock for all field technicians GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 9 · 8 hours battery back-up for all cell sites · Compact generator system stored in Freedom, Wyoming · Remote monitoring 7x24 of all sites · Ongoing monitoring of all Network and Outage Resolution procedures · A network operating center ("NOC"), in Roosevelt, Utah · All switches and cell sites are remotely monitored 7x24, with critical and major alarms escalated to the next level of management every 20 minutes · Gold Star's 7x24 on-call staff is sent a text message or called immediately when the monitoring system detects system problems · The Gold Star's team consists of 6 people strategically located within West Central Wyoming and Southeastern Idaho in the following locations: 3 in Star Valley, 2 in Teton Valley, and 1 in Jackson, Wyoming · Gold Star staff is well-trained and equipped to respond quickly in the event of outages, alarms or emergencies · Complete inventory of alternate-ccess equipment, including: o All field staff are equipped with 4-wheel drive pickups¡ a Snow Cat is stored at Freedom, Wyoming¡ snowmobiles are stored at Freedom, Wyoming and Driggs, Idaho facilities (1 each)¡ and Polaris 4-wheeler ATVs are located in Freedom, Wyoming and Driggs, Idaho (1 each) o All field staff are trained in operation for all alternative site-ccess equipment · Tower crews are on standby for emergency tower and antenna repairs · Technicians are equipped with a complete complement of spares for cell site · Microwave and DACs equipment is available to insure quick recovery In addition to the foregoing, Gold Star is currently upgrading its MTX Switch to a version MTX 16. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 10 Through all of these efforts, Gold Star has demonstrated that it not only provides customers with needed emergency services, but that it can also remain fully functional in emergencies. 6. Access to Operator Services. Access to operator services is defined as any automatic or live assistance provided to a consumer to arrange for the biling or completion, or both, of a telephone call.19 Gold Star provides customer access to operator services. Customers can reach operator services in the traditional manner by dialing "0", in compliance with Section 54.101(a)(6) of the Federal Rules. 7. Access to Interexchange Service. A universal service provider must offer consumers access to interexchange service to make and receive toll or interexchange calls. Equal access, however, is not required. liThe FCC do(es) not include equal access to interexchange service among the services supported by universal services mechanisms."20 Gold Star presently meets this requirement by providing all of its customers with the abilty to make and receive interexchange or toll calls through direct interconnection arrangements Gold Star has with several interexchange carriers ("IXCs'1. 8. Access to Directory Assistance. The abilty to place a call to directory assistance is a required service offering.21 19 Id; at 8817-18 20 Id; at 8819. 21 Id; at 8821. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 11 Subscribers to Gold Star's services are able to dial"411" to reach directory assistance from their mobile phones. 9. Toll Limitation for Qualifying Low Income Consumers. An ETC must offer either "toll control" or "toll blocking" services to qualifying Lifeline customers at no charge. The FCC no longer requires an ETC to provide both services as part of the toll limitation service required under 47 C.F.R. § 54.101(a)(9).22 In particular, all ETCs must provide toll blocking which allows customers to block the completion of outgoing toll calls.23 Gold Star currently has no Lifeline customers in Idaho because only carriers designated as an ETC can participate in Lifeline. See 46 c.F.R. §§ 54.400-415. Once designated as an ETC, Gold Star wil participate in Lifeline, as required. Gold Star has the capabilty and if requested provides toll blocking. In addition, once it receives its ETC designation, Gold Star wil promote its Lifeline Services through traditional media avenues such as newsprint, radio advertisements and media flyers. In addition to these methods, Gold Star wil develop an information sheet that explains the program and directs interested parties to the proper agencies to assist with the program qualification process. In addition to unlimited long distance callng at no extra charge, Gold Star's customers wil have the abilty to block roaming and international dialing, all of which wil allow customers to avoid unexpected charges. 22 See Universal Service Fourth Order on Reconsideration in CC Docket No. 96-45; Report and Order in CC Docket Nos. 96-45; 96-262; 94-1; 9/-2/3; 95-72; 13 FCC Rcd 5318 (1997). 23 First Report and Order; at 8821-22. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 12 B. ADVERTISING AVAILABILITY OF UNIVERSAL SERVICE Pursuant to Section 54.201 of the FCC's rules, 47 C.F.R. Section 54.201, Gold Star plans to advertise the availabilty of each of the supported services detailed above, throughout its licensed service area, by media of general distribution. The methods of advertising utilzed may include newspaper, magazine, radio, direct mailngs, public exhibits and displays, bil inserts, and telephone directory advertising. Print media of general distribution in Gold Star's service area include: The Post-Register in Idaho Falls, Teton Valley News in Driggs, and the Caribou Sun which covers the Wayan area. C. COMMITMENT TO CONSUMER PROTECTION Consistent with the IPUC ETC Requirements Order at Appendix A, p.3, Gold Star wil comply with all applicable service. quality standards and consumer protection rules, and wil abide by the consumer protection standards established by the CTIA Consumer Code.24 D. TRIBAL NOTIFICATION The IPUC ETC Requirements order at Appendix A p. 2, requires an ETC applicant seeking ETC designation for any part of tribal lands to provide a copy of its application to the affected tribal government or tribal regulatory authority, as applicable, at the time it fies its application with Commission. There are no tribal lands in Gold Star's proposed ETC service area. IV. GRANT OF THIS PETITION SERVES THE PUBLIC INTEREST Gold Star's petition meets the stringent public interest standards established by the FCC. In its ETC Order, the FCC clarified its public analysis of ETC applications and 24 See Exhibit H, attched. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 13 suggested that states follow suit.25 Pursuant to Section 214 of the Act, the FCC and states must determine that an ETC designation is consistent with the public interest, convenience and necessity.26 The FCC and states must also consider whether an ETC designation serves the public interest consistent with Section 254 of the Act.2 Further, the FCC has noted that it wil analyze the public interest benefits of an ETC applicant in a manner that is consistent with the purposes of the Act, including the fundamental goals of preserving and advancing universal service, ensuring the availabilty of quality telecommunications services at just, reasonable, and affordable rates, and promoting the deployment of advanced telecommunications and information services to all regions of the nation, including rural and high-cost areas.28 Specifically, the FCC considers three specific items when analyzing the public interest benefits of an ETC application: (1) the unique advantages and disadvantages of the competitor's service offering through a cost-benefit analysis¡ (2) the potential for "cream skimming"¡ and (3) the potential impact on the federal universal service fund (USF).29 A. COST-BENEFIT ANALYSIS In evaluating ETC applications, the FCC and states consider the benefits of increased consumer choice, and the unique advantages and disadvantages of the competitor's service offerings. Gold Star's universal service offering wil provide consumers in rural eastern Idaho 25 In re Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, FCC 05-46 (March 17, 2005) ("ETC Ordel). The Idaho Public Utilties Commission has outlined its ETC procedures in its IPUC ETC Requirements Order. 2647 U.s'c. § 214(e)(2). 2747 U.S.c. § 254(b)(7). 28 ETC Order'r 40. 29 Id ,r 41. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 14 with the benefits of increased competitive choice and quality service. Gold Star's universal service offering wil speed the delivery of advanced wireless services to citizens in these remote communities, including high-speed data transmission capabilties. Gold Stats universal service offering wil not only increase competition in the area, but wil also provide greater consumer choice. Gold Star wil provide consumers in the Palisades Lake area, as well as the communities of Irwin in eastern Bonnevile County and Clementsvile in northern +9Teton County with improved cell phone coverage that is equal to or better than other providers in the area?O Without Gold Star, consumers in BEGIN REDACTED INFORM- ATION END OF REDACTED INFORMATION would have to rely solely on traditional wireline services. As a locally based company, Gold Star is focused on the specific needs of its rural customers, who are its one and only priority. In addition, Gold Star is the only wireless carrier who is able to port landline numbers to its wireless customers' cell phones. Further, unlike traditional wireline services, Gold Star's mobile service affords customers increased flexibilty, public safety, and service options. The FCC has noted that mobilty of telecommunications assists consumers in rural areas who must drive significant distances to their jobs, schools, and critical community locations.3! By offering the benefits of mobilty, Gold Star's universal service offering wil provide unique and essential services to consumers in rural southeastern Idaho. As an ETC, Gold Star wil also offer a basic universal service package to subscribers 30 See Exhibit I, attched ("A look at cell phone coverage in Teton Valleý', Teton Valley News, August 27, 2009). 3t Virginia Cellular Order! 29. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 15 who are eligible for Lifeline support. As stated earlier, Gold Star wil offer the "core" or designated services that are supported by federal universal service support mechanisms.32 In addition to the core services, designating Gold Star as an ETC wil allow customers in rural southeastern Idaho to choose service based on pricing, service quality, customer service, and service availabilty. Gold Star's universal service offering provides several advantages including mobilty, access to E911, voicemail, three-way callng, call waiting, call forwarding, expanded callng scopes and several callng plans to allow customers to purchase plans that fit their telecommunications needs. Gold Star expects that its service offering wil be competitive with those of the incumbent wireline carriers within its service area. Upon designation as an ETC, Gold Star wil use the high cost support it receives to improve its infrastructure in BEGIN REDACTED INFORMATION _ END OF REDACTED INFORMATION. Gold Star has evaluated its projected levels of support, along with identifying areas where Gold Star's coverage needs improvement and demand for services coincide.33 In fact, in 2005, Gold Star built out some previously underserved or un-served areas in rural southeastern Idaho. This network construction included areas such as Irwin, Palisades and around Palisades Lake. BEGIN REDACTED INFORMATION END OF REDACTED INFORMATION. Designation as an ETC and high cost support wil allow Gold Star to 32 See 47 U.s.c. § 254(c)¡ 47 C.F.R. § 54.101. 33 See Gold Star's Two-Year Network Improvement Plan (CONFIDENTIAL Exhibit D). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 16 expand upon its substantial build-out and coverage plans. With the receipt of high cost support, Gold Star BEGIN REDAGED INFORM- ATION END OF REDAGED INFORMATION. Gold Star's expanded presence wil give consumers a choice in accessing vital telecommunications services. Gold Star's designation as an ETC is crucial to its plans to provide service in the currently unserved areas of BEGIN REDAGED INFORMATION END OF REDAGED INFORMATION and improve coverage and data transmission options in eastern Bonnevile and northern Teton counties, and is in the public interest. B. POTENTIAL FOR CREAM SKIMMING Gold Star is seeking to serve ETC territories where Gold Star provides coverage and is not targeting low cost areas, or avoiding high cost areas, in order to "cream skim" high cost support. The FCC conducts a cream skimming analysis that compares the population density of each wire center in which the ETC applicant seeks designation against that of the wire centers in the study area in which the ETC applicant does not seek designation.34 "Rural cream skimming occurs when competitors serve only the low-cost high revenue customers in a rural telephone companýs study area."3S Gold Star has chosen to serve all customers 34 ETC Order' 48. 3S Highland Cellular Order' 26. GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 17 where it is able to provide wireless service regardless of the population densities. Consistent with the FCC's Highland Cellular Order;36 Gold Star is not seeking ETC designation in partial wire centers. Further, Gold Star is proposing to serve some of the least densely populated37 and costliest to serve study areas in Idaho, including BEGIN REDACTED INFORMATION ~ END OF REDACTED INFORMATION Therefore, Gold Star is not engaging in any sort of customer targeting or cream skimming. C. IMPACT ON THE FUND Gold Star's receipt of high cost support wil have a nominal impact on the federal fund if calculated using the FCC's current "identical support" rule. Gold Star conducted a study using customer zip codes from its biling system to identify the location of its customers relative to the exchange area boundaries of the incumbent LECs (lLEC) with whom Gold Star competes. Gold Star calculated the total per-line support that each competing ILEC currently receives, including high cost, local switching, interstate common line, and long-term support. The individuallLEC per-line support amount was then multiplied by the approximate number of Gold Star consumers residing within the competing ILEC's particular exchange and ultimately totaled. Based upon this analysis, Gold Star estimates that it wil receive approximately $648,000.00 per year in USF support. This represents less than .015% percent of the high-cost portion of the federal USF, assuming $4.321 bilion in high cost support disbursements in a single year. Accordingly, grant of 361d 37 See CONFIDENTIAL Exhibit C-2, supra. 38 See Exhibit J, Universal Service Administrative Company High Cost Support Projections Second Quarter 2010 - Idaho GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 18 Gold Star's ETC request wil have minimal impact on the USF. The benefits of designating Gold Star as an ETC outweigh any potential harm to the sustainabilty of the fund.39 D. STATE AND FEDERAL PRECEDENT Designation of Gold Star as an ETC is consistent with ETC decisions across the country. There are now numerous cases at the state and federal level, including this Commission's recent designation of CTC Telecom, LLC, Syringa Wireless, LLC and Edge Wireless, LLC as wireless rural ETCs40, where designation of a wireless carrier as an ETC in a rural area was found to be in the public interest. In addition to this Commission, numerous state commissions and the FCC have repeatedly found that designating wireless carriers as ETCs wil promote competition, advance universal service and further the deployment of advanced services. For example, in its decision to designate Rural Cellular Corp. ("RCC") as an ETC, the Washington Utilties and Transportation Commission stated: "Granting ETC designation to RCC.. .wil facilitate the telecommunications choices available to rural citizens, support the growth of new technologies and services, preserve and advance universal service, 39 See Virginia Cellular Order 1 31 (holding that 0.105% of total high-cost support does not dramatically burden the USF)¡ see also Highland Cellular Order 1 25 (holding that 0.04% of total high-cost support does not dramatically burden the USFJ¡ see also Federal-State Joint Board on Universal Service; Advantage Cellular System; Inc; Petition for Designation as an Eligible Telecommunications Carrier in the state of Tennessee, Memorandum Opinion and Order, CC Docket. 96-45, FCC 04- 3357125 (October 22, 2004) (holding that 0.419% of total high-cost support does not dramatically burden the USF). 40 In the Matter of the Application of CTC Telecom; LLC for Designation as an Eligible Telecommunications Carrier Under 47 u.S.C §214(e) (2l Order No. 30867 (IPUC Case No. CTL-T-09-01, Service Date July 24, 2009)¡ In the Matter of the Application of Syringa ilreles5j LLC for Designation as an Eligible Telecommunications Carrier Under 47 u.S.C §214(e) (2l Order No. 30629 (lPUC Case No. SYR-T-08-01, Service Date August 28, 2008¡ In the Matter of the Petition of Edge ilreles5j LLC forDesignation as an Eligible Telecommunications Carrier Under 47 u.S.C §214(e) (2l Order No. 30360 (lPUC Case No. EDG-T-07-01, Service Date June 29, 2007). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 19 and promote competition and the benefits it brings."41 In designating Midwest Wireless Communications, LLC as an ETC in Minnesota, the Minnesota Public Utilties Commission held that, "(c)ompetition would benefit consumers in southern Minnesota by increasing customer choice (from no choice in most areas to more than one) and providing new services made possible by wireless technologies. . . ."42 Similarly, in its decision designating Western Wireless as an ETC in the State of Wyoming, the FCC held: "Designation of competitive ETCs promotes competition and benefits consumers in rural and high-cost areas by increasing customer choice, innovative services and new technologies."43 For all the above reasons, the public interest would be served by the designation of Gold Star as a competitive ETC throughout its requested ETC service area. iV. COMMITMENT TO SERVE REQUESTING CUSTOMERS. Consistent with the IPUC ETC Requirements Order; Appendix p. 2, Gold Star is committed to answering all reasonable requests for service within its proposed ETC service area. Gold Star wants to use high-cost support prudently, to improve service to as many people as possible, while also extending service to as many requesting customers as possible. Gold Star wil use the following, six-point checklist in answering requests from residents within its proposed ETC area, but outside its existing network coverage: (1) determine whether the customer's equipment can be modified or replaced to provide 41 RCC Minnesota; Inc; d/b/a Cellular One, Order Granting Petition for Designation as an Eligible Telecommunications Carrier, WUTC Docket No. UT-023033) Aug. 24. 2002), 'r68. 42 Midwest Wireless Communications; LLe, OAH Docket No. 3-2500-14980-2, Minn. PUC Docket No. PT6153/ AM-02-686, adopted Feb. 13,2003 (order pending), adopting ALj's Findings of Fact, Conclusions of Law, and Recommendation (ALF Dec. 31, 2002), 'r37. 43 Western Wireless Corporation Petition for Designation as an Eligible Telecommunications Carrier in the State of Wyomin~ Memorandum Opinion and Order; 16 FCC Rcd 48, 55 (2000). GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 20 acceptable service¡ (2) determine whether a roof-mounted antenna or other network equipment can be deployed at the premises to provide service¡ (3) determine whether adjustments at the nearest cell site can be made to provide service¡ (4) determine whether there are any other adjustments to network or customer facilities that can be made to provide service¡ (5) explore the possibilty of offering resold service¡ and (6) determine whether an additional cell site, a cell-extender, or repeater can be employed or constructed to provide service. V. LEGAL AUTHORITY The Commission has the legal authority to grant the relief requested by Applicant pursuant to 47 U.s.c. § 214(e)(2)¡ 47 C.F.R. § 54.201¡ see also; IPUC ETC Requirements Order. VI. RELIEF REQUESTED For the reasons set forth above, and pursuant to Section 214(e)(2) of the Act, Gold Star requests that the Commission enter an Order designating Gold Star as an ETC for the areas described herein and that the Commission process this Application under Modified Procedure and enter its Order at the earliest possible date. RESPECTFULLY SUBMITTED this 3rd day of June, 2010. RICHARDSON & O'LEARY, PLLC By: RY Attorn ys for Gold Star Communications, LLC GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION - 21 HIBIT A CONFIDENTIAL THIS EXH'B:tT AllEGEDt y CONT \ INS TRADE SECRETS 4' OR CQr rflDENTIAl MATERIAL ANDIS SEPARA TEL Y FilED GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION " EXHIBIT B GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION ~TA wireless CO-ÒPS _ Blacoo _ Cust Far Mutual _ FUer Mutual Mud Lake _ Projec Mutual - GoldStar Communicans ela Si StarWis Bondaíy Are ,......it...._. ..... .UTCO.-.. Regulatd Companies ATC _ Cadge CenryTel cetuíyTeI . Gem Ste Cizens Direct Freont . Innd _ MidVe _ Oron - Idaho . PIne Qw _ Rur . SHveStr TD _ Tetn Verioi Uñaimed LATA Boundåi 25 25 50o Miles EXHIBIT C-l GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION ILEC WIRE CENTERS SILVER STAR TELEPHONE CO.1 INC. FREEDOM IRWIN WAYAN COLUM81NE TELEPHONE CO., INC DRIGGS WIRE CENTER CODE FRDMWYC IRWINIDXC WAYNIDXC DRGSIDMA Exhibit C(l) EJ~;/\ HIBtT C~2 CONFIDENTIAL THIS EXHIBIT ALLEGEDLY CONTAINS TRADE SECRETS OR CONFIDENTIAL MATERIAL AND IS SEPARATELY FILED GOLD STAR COMMUNICA TiONS, LLC ETC APPLICATION EXHIBIT D CONFIDENTIAL THIS EXHIBIT AllEGEDLY CONTAINS TRADE SECRETS OR CONFIDENTIAL MATERIAL AND IS SEPARATELY FILED GOLD STAR COMMUNICATIONS, LLC ETC APPLICATION XHIBIT E GOLD STAR COMMUNlCA TIONS, LLC ETC APPLlCA TION II l I l l l!ie~.. ,! lj SQ ê: go ! 8 ~... ~ :s'" Øi ...ì ,.- 'I 1:r,'... '"til!I l- i šc ! l l vi¡:I ~ "'~ ¡¡ I..0 · 8 ~. 1 -...- l 1i l"' _ =' "" ií-¡¡;,sA.i Ã. ,l~~lI JI.. f'l ~.. .9 jv.. ã,. 'i j í l ¡ iUiJ1111i )0 .t -¡J ~ ~ ! ~l' ! 1 "t"'llbit e"~ ..Q..._~--:; "'c.I U l ii I~i . :: :: !.cf J ii 1.1I l Ii .i B Il lilt i¡i J!l'i'..I iJ aJ 1 IJii Ji 11l11..1"" ..- £lJflGo õ lili Ii Iii"t1.1 e- ~&.! ii. i ¡"i.E ll1 t ~1J _..1. . 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