20101102final_order_no_32101.pdf

Office of the Secretary
Service Date
November 2, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF GOLD STAR COMMUNICATIONS, LLC
FOR DESIGNATION AS AN ELIGIBLE
TELECO MMUNI CA TI 0 NS CARRIER ORDER NO. 32101
CASE NO. GOL-10-
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. 47 u.S.c. ~ 214(e)(1-2); 47
R. ~ 54.201. Gold Star is a commercial mobile radio services (CMRS) carrier providing
mobile wireless 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. 1
On September 9, 2010, the Commission issued Order No. 32066 soliciting comment
in response to Gold Star s ETC Application. According to the Order, comments in the Modified
Procedure docket were to be submitted no later than September 30, 2010. The only comments
submitted were filed by the Commission Staff. Based upon our review of the Application and
the comments, we grant Gold Star s request for ETC designation.
APPLICATION
Gold Star is a "full service" wireless carrier that provides universal servIces
throughout its licensed service area using its own network infrastructure. Application at 2. The
Company is currently licensed to serve two "basic trading areas" (BTAs) in Idaho: BTA 202
(Idaho Falls) and BTA 353 (Pocatello). Gold Star has entered into a lease arrangement with
Syringa Wireless, LLC for use of Syringa s wireless spectrum in the areas of Wayan and the
Smokey Canyon Mine owned by the J.R. Simplot Company. Gold Star is authorized to provide
wireless service under its two BT As in the following Idaho counties:
Madison, Bingham, Butte, Custer, Lemhi, Jefferson, and Clark. !d.
Bonneville, Teton
I The Federal Communications Commission s Lifeline program is intended to promote universal service by using
USF revenues to make telecommunications service more affordable. Idaho participates in the residential Lifeline
program pursuant to Idaho Code ~ 56-901and Order No. 21713.
ORDER NO. 32101
The Company proposes to deliver ETC servIces III Teton County, eastern and
northern Caribou County, and eastern Bonneville County served by two incumbent local
exchange carriers (ILECs): Silver Star Telephone Company; and Columbine Telephone (dba
Teton Telecom). Silver Star serves the Freedom, Irwin, and Wayan wire centers, and Columbine
serves the Driggs wire center.
Gold Star s Application states that it satisfies all of the statutory and regulatory
requirements for ETC designation. Gold Star asserts that it will offer the services required for
carriers to be eligible for federal USF funding, including: single-party voice grade access; local
calling; multi-frequency signaling; access to 911 emergency services; long-distance and
directory assistance services; toll blocking; and the ability to remain functional in emergency
situations. Gold Star requests that it be designated as eligible to receive all available supports
from the federal USF including support for rural, insular and high-cost areas and low-income
customers in the proposed service area. Id. Gold Star further asserts that it will comply with all
applicable Idaho service quality standards and consumer protection rules, as well as those
standards established by the Cellular Telephone Industry Association (CTIA) consumer code.
Exh.
Gold Star insists that granting its ETC designation is in the public interest because its
universal service offering will provide consumers in rural , eastern Idaho "with the benefits of
increased competitive choice and quality service. . . including high-speed data transmission
capabilities.Application at 14-15. The carrier further states that designation as an ETC will
have "a nominal impact on the federal (USFJ if calculated using the FCC's current 'identical
support' rule.Id. at 18. Gold Star insists that it will not engage in "cream skimming" and that
it will serve all customers in the proposed area where it is able to provide wireless service
regardless of population densities. Id. at 17-18.
ST AFF COMMENTS
Staff recommended that the Commission approve Gold Star s Application for ETC
designation. Comments at 11. Staff compared the Application with the federal and state criteria
used to evaluate ETC applications. Staff reviewed the public interest standards of: (1) cost-
2 The identical support rule awards federal high-cost USF support to competitive eligible communications carriers
(CETC) based on the costs of the ILEC in whose territory the CETC seeks support, rather than on the CETC's own
cost or some other basis. The FCC released the Identical Support NPRM (FCC 08-4) based, in part, on the
conclusions reached in 2007 by the Federal-State Joint Board on Universal Support regarding the need to
immediately control the growth ofUSF support in order to preserve and protect the future sustainability of the fund.
ORDER NO. 32101
benefit analysis; (2) potential for cream skimming; (3) impact on the federal USF; and (4) state
and federal precedent.
Cost-Benefit Analysis While Staff does not advocate one communications
technology over another, it recognizes that each technology has unique advantages and
disadvantages depending upon the geography, demographics, and technological needs of the
proposed service area. After reviewing the Application, Staff concluded that Gold Star s two-
year network improvement plan "may be more cost-effective to implement for a wireless
provider than a similar plan may be for the (landline J ILEC and, therefore, consumers will more
likely see improved services." Comments at 5.
2. Cream Skimming. Gold Star is not seeking ETC designation in partial wire
centers and is proposing to serve some of the more sparsely populated and more costly study
areas in Idaho. Id. at 6. Staff observed that the list of wire centers proposed to be served by
Gold Star include the entire service areas of both Silver Star and Columbine. Staff determined
that Gold Star s proposal to serve all of the service areas avoids the appearance of cream
skimming.
3. Impact on the USF.Gold Star asserts that its receipt of high-cost funds will have a
minimal impact on the federal USF. Gold Star calculates that it might receive an estimated
$648 000 per year in USF support, which is less than 0.015% of the high-cost portion of the
federal USF , assuming $4.3 billion in high-cost support per year. Id. at 6. Staff expressed
concern that the federal USF was not intended to provide equal funding for both the ILEC and an
affiliate ETC operating in the same service area. This would be the case with Silver Star
Telephone and Gold Star Communications. Staff specifically noted that the FCC imposed an
interim cap on the amount of high-cost support that competitive ETCs (CETCs) may receive in
each state. "All newly designated and existing CETCs in Idaho will share the high-cost USF
support in the amount that was distributed to Idaho CETCs in March 2008." Comments at 10.
Although there are some exceptions, Staff noted that the interim cap will remain in place until
the FCC adopts comprehensive reform measures. Id.
Despite these concerns, Staff does recommend approval of this Application because
Gold Star meets all of the statutory requirements for ETC designation. Withholding approval
would deny rural consumers the benefit of the federal Lifeline program support as well as the
different wireless services Gold Star intends to offer.
ORDER NO. 32101
4. State and Federal Precedent.Staff noted that designating Gold Star as an ETC is
consistent with prior Orders of both the FCC and this Commission. Id. at 7.
Staff also stated that Gold Star meets the seven ETC designation requirements set out
in Appendix 1 to Order No. 29841.Id. at 9. In addition, Staff maintained that Gold Star
network improvement plan is in sufficient detail and appears reasonable. The Company
provided detailed information in its network plan for 2010 and 2011. If "Gold Star is granted
ETC designation, the annual submission of the Two-Year Network Improvement Plan and
Progress Report will hold the Company accountable for making a reasonable effort to
implement" the plan. Id. at 8.
In conclusion, Staff recommended that the Commission approve the ETC Application
for Gold Star to serve in Teton County, eastern and northern Caribou County, and eastern
Bonneville County.
DISCUSSION AND FINDINGS
Section 214( e )(2) of the federal Telecommunications Act provides that ETC
designation shall be made for a geographic "service area" designated by the state commissions.
After reviewing the Application and Staffs comments, we find that it is reasonable to grant Gold
Star Communications ETC designation. More specifically, we find that Gold Star meets all the
statutory ETC requirements as set out in Commission Order No. 29841. Designating Gold Star
as an ETC for the rural service areas will provide competitive service options to recipients of the
Idaho Telecommunications Service Assistance Program (ITSAP).
Although there is a business relationship between Gold Star and the two competing
ILECs, we find that the public interest supports ETC designation. Gold Star would provide the
same basic universal services currently offered by the competing wireline carrier but provide
different features and functions that may be attractive to customers. We also observe that Gold
Star supplied a detailed network improvement plan and provided adequate assurance that its
services will remain functional in an emergency. The Company demonstrated an understanding
of federal and state customer service requirements for ETC designation and has agreed to comply
with the Commission s consumer protection standards and the consumer code established by the
Cellular Telephone Industry Association.
3 These requirements include: common carrier status; offer universal services; advertise services; the ability to
provide services; commitment to consumer protection; and prepare brochures that describe the different local service
plans.
ORDER NO. 32101
Based upon the record in this case, we find Gold Star meets all federal and state
requirements to be granted ETC designation in the rural wire centers of Freedom, Irwin, Wayan
and Driggs. Providing universal services to rural residents of Teton County, eastern and northern
Caribou County, and eastern Bonneville County will provide customers with a competitive
alternative to wireline service.
ORDER
IT IS HEREBY ORDERED that the Application of Gold Star Communications, LLC
for designation as an eligible telecommunications carrier as set out in Exhibit B is granted.
IT IS FURTHER ORDERED that Gold Star is designated as an eligible
telecommunications carrier in the three wire centers served by Silver Star Telephone (Freedom
Irwin, Wayan) and the Driggs wire center served by Columbine Telephone Company. Gold Star
shall offer those designated universal services and be eligible for federal USF support when it
serves qualifying low-income customers.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. GOL- T -10-
01 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. Within seven (7) days after any person has petitioned for reconsideration, any other
person may cross-petition for reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 32101
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of November 2010.
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MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD, COMMISSIONER
ATTEST:
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D. Jewel
Commission Secretary
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ORDER NO. 32101