20121231Third Amended Compliance Plan.pdf

NMI Davis Wright
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1919 Pennsylvania Avenue NW
Washington, DC 20006
Danielle Frappier
Adam Shoemaker
202.973.4200 tel
202.973.4499 fax
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[e-mail]
December 28, 2012
VIA FEDEX
Idaho Public Utilities Commission
Attn: Jean Jewell
P0 Box 83720
Boise, ID 83720-0074
Re: Case No. NCI-T-11-01
In the Matter of the Application of Nexus Communications, Inc. for
Designation as an Eligible Telecommunications Carrier for Low Income
Support Only
Dear Ms. Jewell:
On behalf of Nexus Communications, Inc. ("Nexus"), please find the enclosed Third
Amended Compliance Plan of Nexus Communications, Inc., filed with the Federal
Communications Commission ("FCC"), which was approved on December 26, 2012.
An original and seven copies of Nexus's Amended Plan and the FCC's Public Notice
announcing its approval are enclosed. Please date-stamp and return the additional copy in the
self-addressed envelope included with this filing. Should you have any questions regarding this,
please do not hesitate to call.
Sincerely,
DWright Tremaine LLP
AI P 3
,Ll)faielle Frappier
Adam, Shoemaker
CC: Neil Price
Grace Seaman
Anchorage New York Seattle
Bellevue Portland Shanghai
Los Angeles San Francisco Washington. D.C. www.dwt.com
1000/o®
ORIGINAL
c* PUBLIC NOTICE
Federal Communications Commission News Media Information 2021418-0500
12th St., S.W. Internet: http:ilwww.fcc.gov
Washington, D.C. 20554 TTY: 1-888-835-5322
DA 12-2063
Release Date: December 26, 2012
WIRELINE COMPETITION BUREAU APPROVES THE COMPLIANCE PLANS OF
AIRVOICE WIRELESS, AMERIMEX COMMUNICATIONS, BLUE JAY WIRELESS,
MILLENNIUM 2000, NEXUS COMMUNICATIONS, PLATINUJMTEL COMMUNICATIONS,
SAGE TELECOM, TELRITE AND TELSCAPE COMMUNICATIONS
WC Docket Nos. 09-197 and 11-42
The Wireline Competition Bureau (Bureau) approves the compliance plans of nine carriers:
AirVoice Wireless, LLC (AirVoice); AmeriMex Communications Corp. (AmeriMex); Blue Jay Wireless,
LLC (Blue Jay); Millennium 2000, Inc. (Millennium 2000); Nexus Communications, Inc. (Nexus);
PlatinumTel Communications, LLC (Platinumlel); Sage Telecom, Inc. (Sage); Teirite Corporation
(Telrite); and Telscape Communications, Inc. d/b/a Teiscape Wireless (Telscape). The compliance plans
were filed pursuant to the Lifeline Reform Order as a condition of obtaining forbearance from the
facilities requirement of the Communications Act of 1934, as amended (the Act), for the provision of
Lifeline service.'
The Act provides that in order to be designated as an eligible telecommunications carrier (ETC)
for the purpose of universal service support, a carrier must "offer the services that are supported by
Federal universal service support mechanisms . . . either using its own facilities or a combination of its
own facilities and resale of another carrier's services. The Commission amended its rules to define
voice telephony as the supported service and removed directory assistance and operator services, among
other things, from the list of supported services.' As a result of these amendments, many Lifeline-only
ETCs that previously met the facilities requirement by providing operator services, directory assistance or
other previously supported services no longer meet the facilities requirement of the Act.' In the Lifeline
Reform Order, the COmmission found that a grant of blanket forbearance of the facilities requirement,
'See Lifeline and Link Up Reform and Modernization et a!, WC Docket No. 11-42 etal., Report and Order and
Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656, 6816-17, paras. 379-380 (2012) (Lifeline Reform
Order). A list of the compliance plans approved through this Public Notice can be found in the Appendix to this
Public Notice.
2 47 U.S.C. § 214(e)(1)(A).
' See Lifeline Reform Order, 27 FCC Rcd at 6678, para. 47; see also 47 C.F.R. § 54.101(a).
4 See Lifeline Reform Order, 27 FCC Rcd at 6812, para. 366, App. A; Connect America Fund eta!, WC Docket 10-
90, Order on Reconsideration, 26 FCC Rcd 17633, 17634-35, para. 4 (2011) (USF/ICC Transformation Order on
Reconsideration). Some ETCs have included language in their compliance plans indicating that they have facilities
or plan to acquire facilities in the future. See, e.g., Blanket Forbearance Compliance Plan, WC Docket Nos. 09-197
and 11-42, Q Link Wireless, LLC's Third Amended Compliance Plan at 4 n. 2 (filed July 30, 2012). To the extent
ETCs seek to avail themselves of the conditional forbearance relief established in the Lifeline Reform Order, we
presume they lack facilities to provide the supported service under sections 54.10 1 and 54.401 of the Commission's
rules. See 47 C.F.R. §§ 54.101 and 54.401. Such ETCs must comply with the compliance plan approved herein in
each state or territory where they are designated as an ETC, regardless of their claim of facilities for other purposes,
such as eligibility for state universal service funding.
subject to certain public safety and compliance obligations, is appropriate for carriers seeking to provide
Lifeline-only service-5 Therefore, in the Lifeline Reform Order, the Commission conditionally granted
forbearance from the Act's facilities requirement to all telecommunications carriers seeking Lifeline-only
ETC designation, subject to the following conditions: (1) compliance with certain 911 and enhanced 911
public safety requirements; and (2) Bureau approval of a compliance plan providing specific information
regarding the carrier and its service offerings and outlining the measures the carrier will take to
implement the obligations contained in the Order.'
The Bureau has reviewed the nine plans listed in the Appendix for compliance with the
conditions of the Lifeline Reform Order and now approves those nine compliance plans.7
Filings, including the Compliance Plans identified in the Appendix, and comments are available
for public inspection and copying during regular business hours at the FCC Reference Information
Center, Portals II, 445 12th Street, S.W., Room CY-A257, Washington, D.C. 20554. They may also be
purchased from the Commission's duplicating contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, S.W., Room CY-B402, Washington, D.C. 20554, telephone: [phone], fax: (202) 448-
5563, or via email www.bcpiweb.com.
People with Disabilities: To request materials in accessible formats for people with disabilities
(Braille, large print, electronic files, audio format), send an email to [e-mail] or call the
Consumer & Governmental Affairs Bureau at [phone] or TTY [phone].
For further information, please contact Michelle Schaefer, Telecommunications Access Policy
Division, Wireline Competition Bureau at [phone] or TTY [phone].
- FCC -
Lifeline Reform Order, 27 FCC Rcd at 6813-6817, paras. 368-381.
6 See id., 27 FCC Red at 6814, 6819, paras. 373, 389. Subsequently, the Bureau provided guidance for carriers
submitting compliance plans pursuant to the Lifeline Reform Order. Wireline Competition Bureau Provides
Guidance for the Submission of Compliance Plans Pursuant to the Lifeline Reform Order, WC Docket Nos. 09-197
and 11-42, Public Notice, 27 FCC Rcd 2186 (Wireline Comp. Bur. 2012).
7 The Commission has not acted on any pending ETC petitions filed by these carriers, and this Public Notice only
approves the compliance plans of the carriers listed above. While these compliance plans contain information on
each carrier's Lifeline offering, we leave it to the designating authority to determine whether or not the carrier's
Lifeline offerings are sufficient to serve consumers. See Lifeline Reform Order, 27 FCC Rcd at 6679-80, 6818-19,
paras. 50, 387.
APPENDIX
Petitioner Compliance Plans Date of Filing Docket
As Captioned by Petitioner Numbers
AirVoice Wireless, LLC AirVoice Wireless, LLC's Amended December 7, 09-197; 11-42
Compliance Plan 2012
AmeriMex AmeriMex Communications Corp. December 6, 09-197; 11-42
Communications Corp. Revised Compliance Plan 2012
Blue Jay Wireless, LLC Blue Jay Wireless, LLC Compliance November 30, 09-197; 11-42
Plan 2012
Millennium 2000 Inc. Amended Compliance Plan of December 18, 09-197; 11-42
Millennium 2000 Inc. 2012
Nexus Communications, Third Amended Compliance Plan of December 4, 09-197; 11-42
Inc. Nexus Communications, Inc. 2012
PlatinumTel Platinumlel Communications LLC's December 19, 09-197; 11-42
Communications, LLC Revised Compliance Plan 2012
Sage Telecom, Inc. Revised Compliance Plan of Sage December 19, 09-197; 11-42
Telecom, Inc. 2012
Telrite Corporation Telrite Corporation Compliance Plan November 29, 09-197; 11-42
2012
Telscape Revised Compliance Plan of Telscape December 19, 09-197; 11-42
Communications Inc. Communications, Inc. 2012
d/b/a Telscape Wireless
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1 Davis Wright Suite 800
1919 Pennsylvania Avenue NW L Treniaine LLP
Washington, D.C. 20006-3401
Danielle Frappler
202.973.4242 tel.
danieIlefrappier.dwt.com
VIA ECFS
December 4, 2012
Marlene H. Dortch
Secretary
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
Re: WC Dockets 09-197 and 11-42
Third Amended Compliance Plan of Nexus Communications, Inc.
Dear Secretary Dortch:
Pursuant to the Commission's Lifeline Reform Order,1 please find attached the Third
Amended Compliance Plan of Nexus Communications, Inc. ("Nexus").
The only edits made to the plan in this third amendment were made on page 12.
Specifically, Nexus added the word "Nexus" in the first full sentence on that page, and it also
added footnote 21, which reads "[a]ll third-party representatives are accountable to Nexus for
purposes of compliance with state and federal Lifeline rules."
Nexus respectfully requests expedited approval of its Amended Compliance Plan. Please
contact me if you have any questions regarding this filing.
Respectfully submitted,
.-.
Danielle Frappier
Lifeline and Link Up Reform and Modernization et al., WC Docket No. 1142 et al., Report and Order
and Further Notice of Proposed Rulemaking, FCC 12-11 (rel. Feb. 6, 2012); Wireline Competition
Bureau Provides Guidance for the Submission of Compliance Plans Pursuant to the Lifeline Reform
Order, Public Notice, DA 12-314 (WCB rel. Feb. 29, 2012).
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Lifeline and Link Up Reform and
Modernization
Telecommunications Carriers Eligible to
Receive Universal Service Support
Nexus Communications, Inc. Petition for
Designation as an Eligible Telecommunications
Carrier for Low Income Support Only
WC Docket No. 11-42
WC Docket No. 09-197
THIRD AMENDED COMPLIANCE PLAN OF NEXUS COMMUNICATIONS, INC.
Danielle Frappier
James W. Tomlinson
Davis Wright Tremaine LLP
1919 Pennsylvania Avenue, N.W., Suite 800
Washington, D.C. 20006-3401
(202) 973 - 4242
Counsel to Nexus Communications, Inc.
December 4, 2012
TABLE OF CONTENTS
SUMMARY .
I. INFORMATION ABOUT NEXUS AND THE LIFELINE PLANS IT OFFERS.................2
A.Company Information..........................................................................................................2
B.Nexus' Financial and Technical Capabilities to Provide Lifeline Service..........................3
C.Geographic Area of Nexus' Service Offerings .................................................................... 5
D.Nexus' Lifeline Service Plans .............................................................................................. 5
E.Other Certifications Required by 47 C.F.R. § 54.202 .........................................................7
II. NEXUS' COMPLIANCE WITH NEW COMMISSION RULES RELATING TO
DETERMINATIONS OF SUBSCRIBER ELIGIBILITY FOR LIFELINE SERVICES..............8
A.Nexus' Procedures to Determine Consumer Eligibility for the Lifeline Program...............9
B.Nexus' Procedures for Subscriber Certifications ............................................................... 11
C.Nexus' Procedures for Annual Re-certification of Lifeline Subscribers...........................15
III. NEXUS' COMPLIANCE WITH THE FORBEARANCE CONDITIONS RELATING TO
PUBLIC SAFETY AND 911/E911 ACCESS .............................................................................. 16
IV. NEXUS' COMPLIANCE WITH THE COMMISSION'S MARKETING AND
DISCLOSURE REQUIREMENTS FOR PARTICIPATION IN THE LIFELINE PROGRAM. 17
V. NEXUS' PROCEDURES AND EFFORTS TO PREVENT WASTE, FRAUD AND
ABUSE IN CONNECTION WITH LIFELINE FUNDS ............................................................. 18
VI. CONCLUSION .....................................................................................................................21
SUMMARY
Nexus Communications, Inc. ("Nexus") hereby seeks to avail itself of the Commission's
grant of forbearance from the "own facilities" requirement by submission of this Amended
Compliance Plan. Nexus is submitting simultaneously with this Amended Compliance Plan a
Second Amendment to its pending Petitions for designation as an ETC. Nexus fully complies
with all conditions of the recently-amended Lifeline rules and all pertinent conditions in the
Lifeline Reform Order.
Nexus is technically and financially qualified to provide Lifeline service. Nexus became
a CLEC in 2001 and received its first ETC designation in 2006. Nexus is designated as an ETC
in 26 states and provides wireline service as an ETC in 13 states, and wireless service in 18
states. Nexus is successfully providing Lifeline-supported services and has a steadily increasing
subscriber base. Nexus is financially stable and is fully capable of honoring its service
obligations. Nexus offers Lifeline subscribers multiple wireless calling plans to choose from,
which are detailed herein.
Nexus complies with the requirements pertaining to consumer qualifications for Lifeline
set forth in new 47 C.F.R. § 54.409 and any state-specific requirements. More specifically,
unless otherwise required under applicable state law, Nexus requires all subscribers to
demonstrate eligibility based at least on: (1) household income at or below 135% of the Federal
Poverty Guidelines; or (2) the household's participation in one of the federal assistance programs
listed in the Commission's rules. Nexus confirms that neither the subscriber nor anyone else in
the subscriber's household is subscribed to a Lifeline service. This Amended Compliance Plan
describes the procedures by which Nexus: (1) analyzes the eligibility of applicants to obtain
Lifeline service; (2) obtains proof of eligibility from applicants; (3) certifies the eligibility of
applicants; (4) collects the necessary information from applicants; (5) requires applicants to
LI
certify as to their eligibility to receive Lifeline benefits; and (6) annually re-certifies all Lifeline
subscribers. Nexus has included as an exhibit its Lifeline applications forms for wireline and
wireless services.
Nexus' practices comply with the 911 /E91 I access conditions set forth in the Lifeline
Reform Order. Specifically, Nexus provides its Lifeline subscribers with 911/E911 access at the
time Lifeline service is initiated - regardless of activation status and availability of minutes - and
provides its Lifeline subscribers with E91 1-compliant handsets. Nexus' practices provide access
to 911 /E91 1 services to the extent these services have been deployed by its underlying carrier.
Nexus commits to continue these practices going forward.
Nexus has incorporated in its marketing materials for its Lifeline services, in clear, easily
understood language, the various disclosures required by 47 C.F.R. § 54.405. Nexus has
attached a representative sample of its marketing materials incorporating these disclosures.
Nexus shares the Commission's commitment to minimize waste, fraud and abuse of
Lifeline benefits. Accordingly, Nexus has implemented procedures intended to prevent duplicate
Lifeline benefits from being awarded to the same household or individual. These measures
include practices intended to: (1) prevent duplicates within Nexus' subscriber base; (2) avoid
reimbursement for any subscriber until the subscriber activates service; (3) ceasing
reimbursement for subscribers who fail to use the service for a 60-day period; and (4) ensuring
that Nexus provides only one Lifeline service per household.
As detailed below, Nexus' practices and procedures comply with the Commission's
applicable Lifeline regulations and orders, and Nexus commits to continuing these practices
going forward. Accordingly, Nexus respectfully requests expeditious approval of its pending
Petitions and this Amended Compliance Plan.
IU
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Lifeline and Link Up Reform and
Modernization
Telecommunications Carriers Eligible to
Receive Universal Service Support
Nexus Communications, Inc. Petition for
Designation as an Eligible Telecommunications
Carrier for Low Income Support Only
WC Docket No. 11-42
WC Docket No. 09-197
AMENDED COMPLIANCE PLAN OF NEXUS COMMUNICATIONS, INC.
Nexus Communications, Inc. ("Nexus"), through its undersigned counsel, hereby seeks to
avail itself of the Federal Communications Commission's ("Commission") grant of forbearance
from the "own facilities" requirement set forth in 47 U.S.C. § 214(e)(1)(A) by submission of this
Amended Compliance Plan. Nexus' Amended Compliance Plan is filed in accordance with the
procedures established in the Lifeline Reform Order' and clarified the Public Notice issued by
the Wireline Competition Bureau on February 29, 2012.2 Nexus is submitting simultaneously
Lifeline and Link Up Reform and Modernization et al., WC Dockets No. 11-42 et al., Report and Order
and Further Notice of Proposed Rulemaking, FCC 12-11 (FCC, rel. Feb. 6, 2012) ("Lifeline Reform
Order"). Nexus believes that there may still exist a good faith basis for it to continue to operate as a
facilities-based carrier. Under the Commission's recently amended regulations governing the Lifeline
program, however, it appears that retaining its facilities-based status no longer provides any material
benefits to Nexus or its subscribers. Should this change in the future, Nexus reserves the right to seek
relief from the Commission to reinstate its status as a facilities-based carrier under applicable federal law.
Nonetheless, Nexus acknowledges that its Amended Compliance Plan, once approved by the
Commission, will apply in all states even if Nexus is deemed to operate as a facilities-based carrier in
certain state(s).
2 Wireline Competition Bureau Provides Guidance for the Submission of Compliance Plans Pursuant to
the Lifeline Reform Order, Public Notice, DA 12-314 (WCB, rd. Feb. 29, 2012) ("Public Notice").
with this Amendment Compliance Plan a Second Amendment to its pending Petitions for
designation as an eligible telecommunications carrier ("ETC").4
Nexus respectfully requests expeditious approval of its Petitions and its Amended
Compliance Plan so it may continue to provide essential Lifeline service to eligible low-income
subscribers in states where it currently operates and may provide eligible low-income consumers
Lifeline wireless service options in additional states in the future. Nexus also requests
expeditious approval of its Amended Compliance Plan because the company has filed an
application to participate in the Commission's Lifeline Broadband Pilot Program.
As set forth below, Nexus fully complies with all conditions set forth in the
Commission's recently-amended Lifeline rules and with all pertinent conditions set forth in the
Lifeline Reform Order. This Amended Compliance Plan describes the measures Nexus has
implemented in order to achieve full compliance with the Commission's Lifeline rules and
policies, and Nexus commits to continuing these practices going forward. For the convenience
of the Commission, this Amended Compliance Plan follows the format established by the
Wireline Competition Bureau in the Public Notice.
I. INFORMATION ABOUT NEXUS AND THE LIFELINE PLANS IT OFFERS
A. Company Information
Nexus is 100% owned by Steven Fenker, Nexus' President. It is organized under Ohio
law and is headquartered in Columbus, Ohio. Nexus has no holding company. Nexus owns
Nexus Communications, Inc. Petition for Designation as an Eligible Telecommunications Carrier for
Low Income Support Only, Second Amendment to Petitions, WC Docket No. 09-197 (filed August 3,
2012).
" Petition of Nexus Communications, Inc. for Designation as an Eligible Telecommunications Carrier for
Low Income Support Only, Petition, WC Docket No. 09-197 (filed April 5, 2011; amended April 24, 2012
and further amended August 3, 2012); Petition of Nexus Communications, Inc. for Designation as an
Eligible Telecommunications Carrier for Low Income Support Only, Petition, WC Docket No. 09-197
(filed June 3, 2011; amended April 24, 2012 and further amended August 3, 2012).
2
100% of Telecom Services, Inc., but that company does not provide telecommunications
services.
Nexus operates its wireline business under the names TSI and TSI Telephone Company,
and operates its wireless business under the name ReachOut Wireless.5
B. Nexus' Financial and Technical Capabilities to Provide Lifeline Service
Nexus has been in business since 2000. Nexus became a competitive local exchange
carrier in 2001 and received its first ETC designation in June 2006. Nexus now focuses on
providing service to low-income consumers. Nexus initially began providing its services over
wireline technology, and has responded to strong subscriber demand by offering wireless
technology as well. Nexus was one of the first telecommunications providers to recognize the
low-income market segment as a business opportunity rather than a regulatory burden. Its
success in the market is based on its willingness to tailor its services to the specific needs of low-
income consumers, including the budget management tools and mobility that prepaid wireless
service provide.
Nexus has been designated as an ETC in a total of 26 states .6 It provides wireline service
as an ETC in 13 states,7 and wireless service as an ETC in 18 states.8 Nexus does not seek, and
Nexus' wireline facilities differ from its wireless operations and Nexus believes that its wireline
facilities continue to meet the "own facilities" requirements of 47 U.S.C. § 21 4(e)( 1 )(A) even after the
recent Commission orders and amendments to the statute implementing regulation found at 47 C.F.R. §
54.101. Nevertheless, there is now little practical difference between having facilities-based and
forbearance status. In light of the foregoing and the fact that Nexus is a single entity with both wireline
and wireless operations, Nexus has determined that for purposes of its own administrative convenience, it
seeks forbearance for all of Nexus' operations—both wireline and wireless. 6 Those states are Alabama, Arkansas, California, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Nevada, New Jersey, North Carolina,
Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, West Virginia and Wisconsin.
Those states are Alabama, Arkansas, Illinois, Kansas, Louisiana, Michigan, Mississippi, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin. Although Nexus has been
designated a wireline ETC in Florida and Kentucky, it currently only provides services on a resold basis
in these states. In other words, Nexus resells the wireline services of an ILEC, which passes through a
Lifeline discount on the wholesale line it sells to Nexus. Nexus does not file FCC Form 497s for its
will not accept, High Cost support in any of those states. Nexus is successfully providing
Lifeline supported services in these states and has a steadily increasing subscriber base. Nexus'
management has many years of experience in the telecommunications industry. Nexus'
President Steven Fenker has held management positions in the telecommunications industry for
28 years. Also part of the Nexus' senior management team is Mark Deek, who has 15 years of
experience in the telecommunications industry, with particular expertise in intercarrier relations,
and subscriber care and billing database management.
In order to provide wireless Lifeline services, Nexus purchases wireless minutes from a
national carrier (Verizon Wireless) that is widely-recognized for the quality and reliability of its
wireless network. Nexus supplements this robust wireless network with its own network
facilities, back-office and operations support systems, which Nexus operates and are ideally
suited to serve lower revenue subscribers. Nexus has made a significant financial investment to
evaluate, design, develop and integrate these systems. With respect to this network investment,
Nexus owns and operates its own switching and other facilities located in the state of Ohio,
which are housed in a Tier IV co-location facility.9
Nexus has good relationships with the commissions in the states in which it operates.
Moreover, Nexus is financially stable and fully capable of honoring its service obligations to
subscribers and federal and state regulatory obligations. Although Nexus currently derives the
wireline operations in these states. Nevertheless, Nexus seeks forbearance for its ETC designations in
Florida and Kentucky.
8 Those states are Arkansas, California, Georgia, Iowa, Illinois, Kansas, Louisiana, Maine, Maryland,
Michigan, Mississippi, Missouri, Nevada, New Jersey, Ohio, Rhode Island, West Virginia and Wisconsin.
Because Nexus owns and operates its own network facilities, Nexus reserves the right to demonstrate to
a state public utilities commission that it provides service using its own facilities in a state for purposes of
a state-level universal service funding under state program rules and requirements. Nonetheless, as
explained in note 1, Nexus acknowledges that its Amended Compliance Plan, once approved by the
Commission, will apply in all states even if Nexus is deemed to operate as a facilities-based carrier in
certain state(s).
4
majority of its revenue from the sale of prepaid wireless services, Nexus does not rely
exclusively on disbursements from the Lifeline program to operate. For example, Nexus derives
additional revenue from the sale of wireline and wireless services to non-Lifeline subscribers,
and the sale of optional replenishment airtime and text minutes.
C.Geographic Area of Nexus' Service Offerings
Nexus first began providing wireline ETC service in the second quarter of 2006 and the
company now provides this service in the following states: Alabama, Arkansas, Illinois, Kansas,
Louisiana, Michigan, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas
and Wisconsin. Further, it provides wireline Lifeline service on a resold basis in Florida and
0
In the second quarter of 2009, Nexus began to offer wireless services in recognition of
the high demand for such services in the communities it services. Consumers indicated a strong
preference for mobile wireless services and Nexus has worked to satisfy this demand by growing
and investing in wireless technology. Nexus' wireless offerings have been very successful with
low-income consumers and the company now provides prepaid wireless ETC service in the
following states: Arkansas, California, Georgia, Iowa, Illinois, Kansas, Louisiana, Maine,
Maryland, Michigan, Mississippi, Missouri, Nevada, New Jersey, Ohio, Rhode Island, West
Virginia and Wisconsin."
D.Nexus' Lifeline Service Plans
Nexus offers the following prepaid wireless service plans for its Lifeline subscribers:
'° See supra note 7. Nexus will comply with the requirements listed at the newly-revised 47 C.F.R. §
54.4 17(c) for resellers for its resale operations in Florida and Kentucky. To the extent that Nexus avails
itself of its ETC status in these states, it will comply with all applicable Commission rules.
" Nexus received wireless ETC authority in Oklahoma on March 21, 2012. However, Nexus does not
intend to launch wireless service in Oklahoma until it has secured approval of its Amended Compliance
Plan from the Commission.
5
250 Minute Plan (non-rollover) (all states except California): Minutes are "anytime" minutes
and can be used for domestic calls, including local or intrastate/interstate long distance calls.
Unused minutes or domestic Short Message Service ("SMS") text messages do not carry over to
the following month. SMS text messaging is available at a rate of one text per minute of airtime.
125 Minute Plan (rollover) (all states except California): Minutes are "anytime" minutes and can
be used for domestic calls, including local or intrastate/interstate long distance calls. Unused
minutes or domestic SMS text messages carry over to the following month. SMS text messaging
is available at a rate of one text per minute of airtime.
68 Minute Plan (rollover) (all states except California): Minutes are "anytime" minutes and can
be used for domestic calls, including local or intrastate/interstate long distance calls. Unused
minutes or domestic SMS text messages carry over to the following month. Domestic SMS text
messaging is available at a rate of two text messages per each minute of airtime. Nexus does not
actively market the 68 Minute Plan and, although technically still available to subscribers
because it was part of the offerings approved by the relevant state commissions, it is rarely
selected except by a few subscribers who infrequently use voice service and more frequently
send text messages.
California 250 Minute Plan: Minutes are "anytime" minutes and can be used for domestic calls,
including local or intrastate/interstate long distance calls. Unused minutes or SMS text messages
do not carry over to the following month. Domestic SMS text messaging is available at a rate of
one text message per each minute of airtime. There is a minimum out-of-pocket charge of $2.50
per month.
California 500 Minute Plan: Minutes are "anytime" minutes and can be used for domestic calls,
including local or intrastate/interstate long distance calls. Unused minutes or SMS text messages
do not carry over to the following month. Domestic SMS text messaging is available at a rate of
one text message per each minute of airtime. There is a minimum out-of-pocket charge of $5.00
per month.
California 1000 Minute Plan: Minutes are "anytime" minutes and can be used for domestic calls,
including local or intrastate/interstate long distance calls. Unused minutes or SMS text messages
do not carry over to the following month. Domestic SMS text messaging is available at a rate of
one text message per each minute of airtime. There is a minimum out-of-pocket charge of
$20.00 per month.
All plans include at no extra, charge one E91 I -compliant handset and "anytime"
nationwide minutes that can be used for domestic calls, including local or intrastate/interstate
long distance calls.
Nexus' Lifeline subscribers in states other than California may purchase additional
minutes on a prepaid basis in denominations of $3.00 (20 minutes), $5.00 (40 minutes), $10.00
(120 minutes), $20.00 (300 minutes), $30.00 (500 minutes) and $50.00 (950 minutes). Nexus
also offers an unlimited talk and text additional airtime card. This card provides unlimited local
and domestic long distance calling, and unlimited text messaging for thirty (30) calendar days.
The cost to Lifeline subscribers is $26.50.
Nexus' California subscribers may purchase additional minutes on a prepaid basis in
denominations of $3.00 (91 minutes), $5.00 (152 minutes), $10.00 (304 minutes), $20.00 (607
minutes), $30.00 (910 minutes) and $50.00 (1,516 minutes), all billed at $0.033 per minute. All
minutes are valid for 30 days from date of replenishment. Nexus' California subscribers may
also purchase the unlimited talk and text additional airtime card.
International SMS text messaging is available at a rate of $0.20 for each international text
sent or received. The rate for directory assistance calls is $1.50 per request. Nexus permits
Lifeline subscribers to block international calls at no additional charge. There is no deduction of
minutes for calls to 911 or Nexus' subscriber service department.
Calls from the handset for checking or retrieving voicemails count against the voice
minutes provided by the plan. Calls from a source other than the handset checking or retrieving
voicemail messages and incoming calls that leave a voicemail message are free to Nexus
subscribers. Calls to 911 emergency services are always free, and may be made regardless of
service activation or availability of minutes.
E. Other Certifications Required by 47 C.F.R. § 54.202
The Public Notice requires carriers to include certifications required under recently
amended 47 C.F.R. § 54.202. Nexus hereby certifies that it does and will continue to comply
with the service requirements applicable to the support it receives.'2 Specifically, Nexus'
Lifeline services: (i) include voice telephony services that provide voice grade access to the
12 C.F.R. § 54.202(a)(1).
7
public switched network or its functional equivalent; (ii) provide subscribers with a defined
number of minutes of usage for local service at no additional charges, as described above in
Section 1(D); (iii) provide subscribers with access to the emergency services provided by local
government or other public safety organizations, such as 911/E911 to the extent the local
government in Nexus' service area has implemented 91 1/E91 1 systems, as described below in
Section III; and (iv) toll limitation for qualifying low-income consumers. 13
II. NEXUS' COMPLIANCE WITH NEW COMMISSION RULES RELATING TO
DETERMINATIONS OF SUBSCRIBER ELIGIBILITY FOR LIFELINE
SERVICES
Nexus complies with the requirements pertaining to consumer qualifications for Lifeline
set forth in section 54.409 of the Commission's rules'4 and any state-specific requirements in the
various states in which Nexus has been (or will be) designated an ETC. More specifically,
Nexus requires all subscribers to demonstrate eligibility based at least on: (1) household income
at or below 135% of the Federal Poverty Guidelines for a household of that size; or (2) the
household's participation in one of the federal assistance programs listed in 47 C.F.R. §
54.409(a)(2) or 47 C.F.R. § 54.409(a)(3). Nexus also confirms that the subscriber is not already
receiving a Lifeline service and that no one else in the subscriber's household is subscribed to a
Lifeline service. 15
Toll limitation means both toll blocking and toll control, or, if a carrier is not capable of providing both
toll blocking and toll control, then toll limitation is defined as either toll blocking or toll control. Nexus
will meet the requirement to provide toll limitation to Lifeline subscribers by offering service on a
prepaid, or pay-as-you-go, basis, as well as toll blocking for international calls. As the Commission
found in its grant of ETC designation to Virgin Mobile, "the prepaid nature of [a prepaid wireless
carrier's] service offering works as an effective toll control." Virgin Mobile USA, L.P. Petition for
Forbearance from 47 U.S.0 § 214(e)(1)(A), Order, 24 FCC Rcd 3381, 3394 at ¶ 34 (2009). Moreover,
Nexus will provide traditional toll blocking for international calls to qualifying low-income consumers at
no additional charge. Nexus also provides its users with the ability to monitor their minute usage and
balance as an additional means of controlling their communications budget.
14 47 C.F.R. § 54.509.
47 C.F.R. § 54.409(c).
8
Nexus uses a variety of outreach programs for its Lifeline supported services, which
include direct mail, Internet advertising, and radio and television advertising. Nexus also reaches
potential subscribers through retail marketing, including kiosks and point-of-sale promotional
materials located in third-party retail establishments, as well as one retail establishment owned
by Nexus. Each channel is intended to induce potential subscribers to contact Nexus either in
person, over the Internet or by telephone. Although the logistics of the enrollment process varies
somewhat for each channel as is further described below, in all cases, Lifeline applicants are
thoroughly screened to ensure that they are qualified before a handset is delivered.
A. Nexus' Procedures to Determine Consumer Eligibility for the Lifeline
Program
Analysis of Lifeline Eligibility. If Nexus cannot determine an applicant's eligibility for
Lifeline by accessing income or program eligibility databases, Nexus personnel (either
employees, third-party subscriber service representatives or authorized agents in third-party retail
establishments) review documents to establish eligibility in accordance with the criteria set forth
in 47 C.F.R. § 54.409. All Nexus personnel who interact with existing Lifeline subscribers or
Lifeline applicants have been fully trained in assisting Lifeline applicants with Lifeline
eligibility. All Nexus personnel and authorized third-party representatives have been trained to
answer questions about Lifeline requirements, and how to review required documentation to
determine whether it satisfies the Lifeline Reform Order and state-specific eligibility
requirements using state specific checklists. That being said, the final review and determination
of the sufficiency of documentation is conducted by Nexus employees or authorized agents
directly trained by Nexus employees. All Nexus personnel and authorized third-party
representatives involved in enrolling Lifeline applicants have been trained on the Commission's
9
revised Lifeline eligibility rules and Nexus' practices and policies designed to implement these
new rules.
Proof of Lifeline Eligibility. Nexus follows the Commission's requirements pertaining
to acceptable documentation to establish eligibility based either on income level or participation
in a qualified government assistance program. Specifically, acceptable documentation
of program eligibility includes: (I) the current or prior year's statement of benefits from a
qualifying state, federal or Tribal program; (2) a notice letter of participation in a qualifying
state, federal or Tribal program; (3) program participation documents (e.g., the consumer's
Supplemental Nutrition Assistance Program ("SNAP") electronic benefit transfer card or
Medicaid participation card (or copy thereof); or (4) another official document evidencing the
consumer's participation in a qualifying state, federal or Tribal program. 16 Acceptable
documentation of income eligibility includes: (1) the prior year's state, federal, or Tribal tax
return; (2) current income statement from an employer or paycheck stub; (3) a Social Security
statement of benefits; (4) a Veterans Administration statement of benefits; (5) a
retirement/pension statement of benefits; (6) an Unemployment/Workers' Compensation
statement of benefit; (7) federal or Tribal notice letter of participation in General Assistance; (8)
or a divorce decree, child support award, or other official document containing income
information. If the applicant presents Nexus with documentation of income that does not cover a
full year, the applicant must present the same type of documentation covering three consecutive
months within the previous twelve months. 17
Nexus subscribers may provide the documentation in person, via fax or e-mail, or they
may mail copies to Nexus. Nexus maintains detailed, accurate records identifying the data
16 Lifeline Reform Order at ¶ 101.
47 C.F.R. § 54.410(b)(1)(i)(B).
10
source used to determine a subscriber's eligibility or the documentation the subscriber provided
to demonstrate eligibility for Lifeline. The specifically-trained personnel in charge of reviewing
all incoming Lifeline applications examine and electronically record in its subscriber service and
billing database the type of documentation presented by each prospective Lifeline subscriber, 18
including the date of review, the identity of the documentation, the type of media (e.g., paper,
electronic card, etc.), and the issuance and/or expiration date of the documentation. Nexus'
database includes separate data entry fields for this information, eliciting a response for each
type of information, and will reject the order if any such field is not completed. If an applicant is
unable to provide documentary proof of eligibility based on either household income level or
current participation in a qualified program, Nexus denies that application.
B. Nexus' Procedures for Subscriber Certifications
In the Lifeline Reform Order, the Commission established a path for a transition to a
national, governmental database that will be used to confirm the initial and continued eligibility
of a Lifeline applicant or subscriber.19 Nexus will utilize that database when it becomes
operational.20 Until that time, however, Nexus will continue to adhere to the following
procedures for enrolling prospective subscribers into the Lifeline program.
Nexus has implemented certification procedures that enable prospective subscribers to
demonstrate their eligibility by contacting Nexus either in person or by telephone, facsimile, over
the Internet, or other electronic transmission. The personnel involved in enrolling Lifeline
applicants verbally recite the certifications to Lifeline applicants where when enrolling in person
47 C.F.R. § 54.410(b)(1)(ii) - (iii); 47 C.F.R. § 54.410(c)(1)(ii)-(iii).
" See Lifeline Reform Order at ¶ 403.
20 On its new certification forms that were revised to encompass the requirements of the Commission's Lifeline
Reform Order, Nexus obtains consent from each applicant to provide "any records required" for the administration
of the Lifeline program including so that such information may be used in a Lifeline database. In order to ensure
that it has the same consent from subscribers that applied using prior Nexus forms, Nexus has included nearly
identical language on its annual re-certification forms and scripts.
11
or over the phone. In any retail locations (except those with kiosks), Nexus' authorized third-
party representatives 21 initially examine the qualifying documentation in person (which
documentation will be forwarded to Nexus personal specifically trained in reviewing Lifeline
qualifying documentation for further review) or, if the applicant does not have the documentation
at the time, direct the applicant to supply the documentation via fax, mail or email. All
applicants who do not have the requisite documentation at the time are informed that their
Lifeline application will not be processed until the applicant provides the required documentary
proof of eligibility. Prospective subscribers who do not complete Nexus' Lifeline Application in
person must return the signed document and eligibility documentation to Nexus by mail,
facsimile, electronic mail or other electronic transmission. Nexus accepts electronic signatures
that meet the requirements of the Electronic Signatures in Global and National Commerce Act,
15 U.S.C. §§ 7001-7006 and any applicable state laws.22
Each prospective subscriber is required to complete and sign Nexus' "Lifeline
Application." Samples of this document are provided as Exhibit 1. Nexus has modified its
Lifeline Application as necessary for use in certain states that have specific requirements, such as
additional qualifying programs, but the operative language of Exhibit 1 will remain constant.
Nexus's Lifeline Application conforms to the requirements of the Lifeline Reform Order, 47
C.F.R. § 54.410(d) and 47 C.F.R. § 54.405.
Information Collected. Nexus collects the following information from prospective
subscriber in its Lifeline Application form: (1) the subscriber's full name; (2) the subscriber's
full residential address (P.O. Boxes are not permitted); (3) whether the residential address is
permanent or temporary; (4) the subscriber's billing address, if different; (5) the subscriber's date
21 All third-party representatives are accountable to Nexus for purposes of compliance with state and federal Lifeline
rules.
22 See Lifeline Reform Order at ¶ 168; 47 C.F.R. § 54.419.
12
of birth; (6) the last four digits of the subscriber's Social Security number (or Tribal
identification number if the subscriber is a member of a Tribal nation and does not have a Social
Security number 23); (7) if the subscriber is seeking to qualify for Lifeline under the program-
based criteria, the name of the qualifying assistance program from which the subscriber, or his or
her dependents, or his or her household receives benefits; and (8) if the subscriber is seeking to
qualify for Lifeline under the income-based criterion, the number of individuals in his or her
household.24
Applicant Certifications. In accordance with 47 C.F.R. § 54.410(d), in its Lifeline
Application, Nexus requires all Lifeline applicants to certify, under penalty of perjury, that: (1)
the subscriber meets the income- or program-based eligibility criteria for receiving Lifeline; (2)
the subscriber will notify Nexus within 30 days if, for any reason, he or she no longer satisfies
the criteria for receiving Lifeline including, as relevant, if the applicant no longer meets the
income- or program-based criteria for receiving Lifeline support, the subscriber is receiving
more than one Lifeline benefit, or another member of the subscriber's household is receiving a
Lifeline benefit; (3) if the subscriber is seeking to qualify for Lifeline as an eligible resident of
Tribal lands, that he or she lives on Tribal lands; 25 (4) if the subscriber moves to a new address,
that he or she will provide that new address to Nexus within 30 days; (5) if the subscriber
provided a temporary residential address to Nexus, the subscriber will be required to verify his or
her temporary residential address every 90 days; (6) the subscriber's household will receive only
one Lifeline service and, to the best of the applicant's knowledge, the subscriber's household is
not already receiving a Lifeline service; (7) the information contained in the subscriber's
23 Nexus will only include language regarding a Tribal identification number on forms used in states with
Tribal areas.
24 C.F.R. § 54.410(d)(2).
25 Because Nexus'. designated service includes only two states with Tribal lands (Oklahoma and Rhode
Island), only Nexus' Lifeline Application specifically for those states include this certification.
13
application/certification form is true and correct to the best of the subscriber's knowledge; (8) the
subscriber acknowledges that providing false or fraudulent information to receive Lifeline
benefits is punishable by law; and (9) the subscriber acknowledges that he or she may be
required to re-certify his or her continued eligibility for Lifeline at any time, and that his or her
failure to re-certify as to continued eligibility will result in de-enrollment and the termination of
the subscriber's Lifeline benefits, and (10) that the applicant authorizes Nexus to access any state
or federal records or database to verify his or her eligibility, and authorizes Nexus to release any
records required for administration of the program, including to USAC to be used in the national
Lifeline database and that failure to so authorize Nexus will result in a denial of Lifeline
benefits.26 The Lifeline Application also describes the information that is transmitted, that the
information is being transmitted to USAC to ensure the proper administration of the Lifeline
program and that failure to provide consent will result in the applicant being denied the Lifeline
service. Prospective applicants must affirmatively certify to each of these certifications in order
for the application process to move forward, including those applying online. For those applying
online, Nexus' website does not permit the applicant to submit the application unless all
certifications have been completed. Subscribers also may certify via interactive voice response
("IVR"), which is then saved as a recorded file and saved in the subscriber's account in Nexus'
subscriber care and billing system.
In accordance with 47 C.F.R. § 54.410(d)(1), Nexus' Lifeline Application discloses the
following information: (1) Lifeline is a federal benefit and willfully making false statements to
obtain the benefit can result in fines, imprisonment, de-enrollment or being barred from the
program; (2) only one Lifeline service is available per household; (3) a household is defined, for
purposes of the Lifeline program, as any individual or group of individuals who live together at
26 See Exhibit 1.
14
the same address and share income and expenses; (4) a household is not permitted to receive
Lifeline benefits from multiple providers; (5) violation of the one-per-household limitation
constitutes a violation of the Commission's rules and will result in the subscriber's de-enrollment
from the program; and (6) Lifeline is a non-transferable benefit and the subscriber may not
transfer his or her benefit to any other person.27
Finally, in accordance with 47 C.F.R. § 54.405(c), Nexus' Lifeline Application indicates,
using easily understood language, (I) that the service is a Lifeline service; (2) that Lifeline is a
government assistance program; (3) that the service is non-transferrable; (4) that only eligible
consumers may enroll in the program; and (5) that the program is limited to one discount per
household.28
C. Nexus' Procedures for Annual Re-certification of Lifeline Subscribers
In accordance with the requirements of the Lifeline Reform Order and 47 C.F.R. §
54.410(f), Nexus annually recertifies all of its Lifeline subscribers by either (1) querying the
appropriate eligibility or income databases, confirming that the subscriber continues to meet the
program- or income-based eligibility requirements for Lifeline and documenting the results of
that review, or (2) obtaining a signed certification from the subscriber that meets the certification
requirements set forth in 47 C.F.R. § 54.410(d). Nexus' annual re-certification form includes a
confirmation from the subscriber that the applicant's household receives only one Lifeline
benefit and, to the best of the subscriber's knowledge, the subscriber's household is receiving no
more than one Lifeline benefit. Additionally, Nexus' re-certification materials inform the
subscriber that he or she is being contacted to re-certify his or her continuing eligibility for
Lifeline and if the subscriber fails to respond, he or she will be de-enrolled in the program.
27 Id.
28 Id.
15
For 2012, Nexus began re-certifying the eligibility of its Lifeline subscriber base on June
1, 2012 on a rolling basis. Nexus will complete this process by the end of 2012 and will report
the results to USAC by January 31, 2012.29 Nexus will notify its subscribers in writing that a
failure to respond to the re-certification request will result in de-enrollment in the Lifeline
program. 30 Nexus will de-enroll subscribers who do not respond to the annual re-certification or
fail to provide proof of continued eligibility in accordance with the procedures set forth in 47
C.F.R. § 54.405(e) (4).
III. NEXUS' COMPLIANCE WITH THE FORBEARANCE CONDITIONS
RELATING TO PUBLIC SAFETY AND 9111E911 ACCESS
Nexus' practices comply with the 911 /E91 I access conditions set forth in paragraph 373
of the Lifeline Reform Order. Specifically, Nexus: (1) provides its Lifeline subscribers with
91 1/E91 1 access at the time Lifeline service is initiated, regardless of activation status and
availability of minutes, and (2) provides its Lifeline subscribers with E91 1-compliant handsets
and replaces, at no additional charge to the subscriber, noncompliant handsets of Lifeline-eligible
subscribers who obtain Lifeline-supported services. Nexus' practices provide access to
911 /E91 I services to the extent that these services have been deployed by its underlying wireless
carrier. Nexus commits to continue these practices going forward.
Nexus will provide its Lifeline subscribers with access to 911/13911 services immediately
upon activation of service. The Commission and consumers are assured that all Nexus
subscribers will have available access to emergency calling services at the time that Lifeline
service is initiated, and that such 91 1/E91 I access will be available from Nexus handsets even if
the account associated with the handset has no minutes remaining.
29 Lifeline Reform Order at ¶ 130.
° Id. at' 142.
16
Nexus' existing practices currently provide access to 911/13911 services for all
subscribers. Nexus uses Verizon Wireless as its underlying network carrier. Verizon Wireless
routes 911 calls from Nexus' subscribers in the same manner as 911 calls from Verizon
Wireless' own retail subscribers. To the extent that Verizon Wireless is certified in a given
PSAP territory, this 911 capability functions in the same manner for Nexus and its subscribers.
Nexus also currently enables 911 emergency calling services for all properly activated handsets
regardless of whether the account associated with the handset is active or suspended.
Nexus will ensure that all handsets used in connection with its Lifeline service offering
will be E91l-compliant. Indeed, Nexus' handsets have always been E911-compliant. All Nexus
handsets undergo a thorough quality inspection by Nexus prior to being distributed to
subscribers. All Nexus handsets are required to meet Nexus' handset specifications, which
ensure that the handset models meet all E911 requirements. As a result, any existing Nexus
subscriber that qualifies for and subsequently elects Lifeline service will already have an E911-
compliant handset provided by Nexus. Additionally, any new subscriber that qualifies for and
enrolls in Nexus' Lifeline program is assured of receiving an E91 1-compliant handset as well,
free of charge.
IV. NEXUS' COMPLIANCE WITH THE COMMISSION'S MARKETING AND
DISCLOSURE REQUIREMENTS FOR PARTICIPATION IN THE LIFELINE
PROGRAM
Nexus has incorporated into its marketing materials for its Lifeline services, in clear,
easily understood language: (1) that the service and supported by Lifeline, a government
program; (2) that only eligible consumers may enroll in the program; (3) what documentation is
necessary for enrollment; (4) that the benefit is limited to one per household and is non-
transferrable; (5) that consumers who willfully make false statements in order to obtain the
17
benefit can be punished by fine or imprisonment or can be barred from the program. 3 ' Nexus
also discloses its name (the ETC) on all marketing materials.32 A representative sample of
Nexus' revised marketing materials incorporating these disclosures is attached as Exhibit 2.
V. NEXUS' PROCEDURES AND EFFORTS TO PREVENT WASTE, FRAUD AND
ABUSE IN CONNECTION WITH LIFELINE FUNDS
Nexus shares the Commission's commitment to minimize waste, fraud and abuse of
Lifeline benefits. According, Nexus has implemented a variety of measures and procedures
intended to prevent duplicate Lifeline benefits from being awarded to the same household or
individual.
Prevention of Duplicates within Nexus' Subscriber Base. Lifeline applications to
Nexus that are preliminarily deemed eligible are submitted to a data entry process, including
verifying the address against the United States Postal Service database file of valid U.S.
addresses. A Lifeline applicant's address, name, and the last four digits of his or her social
security number are then queried against all of Nexus' active Lifeline subscribers (both wireline
and wireless), in all states in which Nexus operates. If it is found that Nexus is already providing
Lifeline service to the same subscriber or household, the application is rejected. Nexus commits
to continuing these practices going forward.
Service Activation. Nexus ships handsets to qualified subscribers using FedEx's
SmartPost delivery service and retains written confirmation that delivery was completed. Nexus
does not seek reimbursement for Lifeline service for any subscriber until the subscriber activates
the service, which may be done by taking such actions as dialing an outbound call .33 Nexus will
use the date of this first completed outbound call from its call records as the subscriber's
31 Lifeline Reform Order at ¶ 275; 47 C.F.R. § 54.405(c).
32 Lifeline Reform Order at ¶ 275; 47 C.F.R. § 54.405(d).
Currently, the only form of activation that Nexus accepts is the placement of an outbound call.
18
effective start date for the purposes of determining the subscriber's enrollment date in the
Lifeline program.
Non-Usage Policy. From the beginning of• its wireless operations in 2009, Nexus
voluntarily adopted a policy whereby a subscriber who has not used his or her handset within 60
days is de-enrolled from the Lifeline program (after a 30-day notice period). Upon de-
enrollment, Nexus ceases seeking Lifeline reimbursements for that subscriber. Nexus' non-
usage policy ensures that only subscribers who actually utilize their wireless service continue to
receive Lifeline-subsidized service, and that Nexus only receives Lifeline support for those
subscribers who remain enrolled in the program. Nexus commits to continuing this practice in
conformance with the requirements of 47 C.F.R. § 54.405(e)(3).
Specifically, after 60 days of non-use, 34 Nexus provides notice to the subscriber that
failure to use the Lifeline service or provide other confirmation to Nexus that the subscriber
wishes to retain his or her Lifeline service within 30 days from the date of the de-enrollment
notice will result in de-enrollment from the Lifeline program. 35 Nexus will not request further
Lifeline reimbursement for any de-enrolled subscriber and Nexus will report annually to the
Commission the number of subscribers de-enrolled for non-usage by month.36
De-Enrollment and Disconnection. Nexus subscribers may easily de-enroll from
Lifeline or disconnect their service altogether. There is a link on the home page of Nexus'
website www.reachoutmobile.com for de-enrollments and disconnections. This link permits
subscribers to de-enroll from Lifeline and either subscribe to a non-Lifeline service or cancel
Subscribers can "use" the service by: (1) completing an outbound call; (2) purchasing minutes from
Nexus to add to the subscriber's plan; (3) answering an incoming call from a party other than Nexus; or
(4) responding to a direct contact from Nexus confirming that the subscriber wants to continue receiving
the service. 47 C.F.R. § 54.407(c)(2).
47 C.F.R. § 54.405(e)(3).
36 C.F.R. § 54.405(e)(3).
19
their service altogether. Subscribers may also de-enroll or disconnect their service by calling
Nexus' customer service call center.
One Per Household Rule. Nexus has implemented policies and practices in accordance
with the Commission's rules and the Lifeline Reform Order to ensure that it provides only one
Lifeline service per household. As described above, Nexus has already implemented procedures
to ensure that Nexus itself only provides one Lifeline service per household. When the National
Lifeline Accountability Database becomes available, Nexus will fully comply with the
requirements of 47 C.F.R. § 54.404 and utilize the database to determine if an applicant is
currently receiving Lifeline benefits from another carrier or if another person residing at the
applicant's residential address is receiving Lifeline benefits. Nexus also will retain the following
data: the date Nexus queried the duplicates database; the date and information Nexus transmitted
to the database; the date of transmission of updated subscriber information to the database; the
date of transmission of subscriber de-enrollment to the database; the date and database upon
which Nexus determined income-based eligibility; state Lifeline administrator documentation of
subscriber eligibility, and subscriber's certification of eligibility; the notice of program-
certification and subscriber self-certification, when performed by a state agency or state Lifeline
administrator.
Nexus has also instructed its customer service representatives to explain the one-per-
household requirement to prospective and existing subscribers, including explaining that the
brands Safelink Wireless, Assurance Wireless, i-wireless, Stand-Up Wireless, Budget Mobile
and TAG Mobile are Lifeline services. If Nexus has a reasonable basis to believe that one of its
Lifeline subscribers no longer meets the eligibility criteria, for example, due to a violation of the
one-per-household rule, Nexus initiates its termination process in accordance with the procedures
20
set forth in 47 C.F.R. § 54.405(e)(1). Nexus will also maintain the results of each state
administrator's certification efforts for each subscriber in that state where a state administrator or
agency is responsible for re-certification and where a state has been unable to re-certify a
subscriber, Nexus will keep the record and comply with the relevant de-enrollment procedures.
VI. CONCLUSION
Nexus submits that the foregoing Amended Compliance Plan fully satisfies the
conditions set forth in the Lifeline Reform Order, the Public Notice and in the Commission's
rules pertaining to Lifeline. Accordingly, Nexus respectfully requests expeditious approval of its
pending ETC Petitions and this Amended Compliance Plan so that Nexus may continue to
provide essential Lifeline service to eligible low-income subscribers in states where it currently
operates and may provide eligible consumers Lifeline wireless service options in additional
states. Nexus also requests expeditious approval of its Amended Compliance Plan because the
company has filed an application to participate in the Commission's Lifeline Broadband Pilot
Program.
Respectfully submitted,
Danielle Frappier
James W. Tomlinson
Davis Wright Tremaine LLP
1919 Pennsylvania Avenue, N.W., Suite 800
Washington, D.C. 20006-3401
(202) 973 - 4242
Counsel to Nexus Communications, Inc.
December 4, 2012
21
Exhibit 1
Lifeline Applications
23
Nexus Communications, Inc. d/b/a
Reach :
Fax to: 1-877.870-9333 Email to: enroflcreachoutmobile.com or
Mail to: ReachOut Wireless, P0 Box 247168, Columbus, OH 432247168
125 FREE Rollover Minutes 250 FREE Non-Rollover Minutes LIFELINE APPLICATION
I certify that I participate in one of the following programs (check one):
- Food Stamps (SNAP) - Medicaid
- Federal Public Housing Assistance (Section 8) - Temporary Assistance to Needy Families (TANF)
- National School Lunch Free Lunch Program Supplemental Social Security (SSI)
Low-Income Home Energy Assistance Program (UHEAP) If you wish to qualify based on income, a different form is required.
You must provide documentation demonstrating your current participation in the program checked above.
Last Name: First Name: Middle Initial:
Last 4 digits of Soc. Security #: _ Date of Birth:
Residential Address: Apt. ______ City: State: _Zip:
(no P.O. Box for res. address) This is my (check one): Permanent Address - Temporary Address
If you move, you must update your residential address with ReachOut Wireless within 30 days
Billing Address (if different): Apt. ______ City: State:_ Zip:
I certify that:
- I acknowledge that Lifeline is a government assistance program and that willfully making false statements to obtain the benefit can result
in fines, imprisonment, de-enrollment or being barred from the program.
I acknowledge that only Lifeline eligible consumers may enroll in the Lifeline Program.
I acknowledge that only one Lifeline service is available per household, and that, to the best of my knowledge, no other person in my
household is receiving a Lifeline service. (For purposes of Lifeline, a "household" is any individual or group of individuals who live
together at the same address and share income and expenses.)
- I acknowledge that a household is not permitted to receive Lifeline benefits from multiple providers and that violation of this limitation
constitutes a violation of the rules of the Federal Communications Commission and will result in de-enrollment from the Lifeline program.
If I am participating in another Lifeline program at the time I apply for ReachOut Wireless Lifeline service, I agree to cancel that Lifeline
service with any other provider.
- I acknowledge that Lifeline is non-transferable and that I may not transfer my benefit to any other person.
- I acknowledge that providing false or fraudulent information to receive Lifeline benefits is punishable by law.
- I will notify ReachOut Wireless within 30 days if for any reason I no longer satisfy the criteria for receiving Lifeline services, such as no
longer participating in any of qualifying program, or if I or a member of my household receives another Lifeline benefit.
-

I acknowledge that I may be required to re-certify to my continued eligibility for Lifeline at any time, and that my failure to re-certify will
result in de-enrollment and termination of my Lifeline benefits.
- If I move to a new address, I will provide the new address to ReachOut Wireless within 30 days.
- If I provided a temporary address, I will be required to verify my temporary address every 90 days. If I do not provide verification within
30 days, I will be de-enrolled from the Lifeline program.
I authorize Reachout Wireless to access any state or federal governmental records or database required to verify my statements herein
and to confirm my continued eligibility for Lifeline and authorize social service agency representatives to discuss with and/or provide
information to ReachOut Wireless verifying my participation in programs that qualify me for Lifeline. I also authorize ReachOut Wireless
to release any records required for the administration of ReachOut Wireless's Lifeline program, including to the Universal Service
Administrative Company (USAC), to be used in a Lifeline Program Database. I understand that the records are required to ensure the
proper administration of the Lifeline program and that failure to provide consent will result in the applicant being denied the Lifeline
service.
- I certify penalty of perjury that the information contained in this certification is true and correct to the best of my knowledge.
Applicant's Signature: Date:
Customer Service 1 - 877 - 870 - 9444
www.reachoutmobile.com
Nexus Communications, Inc. d/b/a
Reach iftt wfreless
LIFELINE APPLICATION
Fax to: 1-877.870-9333 Email to: enroll(reachoutmobile.com or
Mail to: ReachOut Wireless, P0 Box 247168, Columbus, OK 43224-7168
* 125 FREE Rollover Minutes - 250 FREE Non-Rollover Minutes
certify that my household income is at or below 135% of the Federal Poverty Guidelines as indicated below:
Eligibility for Lifeline may apply if your household income is at or below
135% of the Federal Poverty Guidelines for a household of that size.
Indicate which income range applies to you in the chart. You must
provide proof of eligibility based on income, which can include:
Check or
Complete
Persons in
Household Annual Income Monthly
Income
1 $15 080 $1,257
0 2 $20,426 $1,702
0 3 $25,772 $2,148 • Last year's federal or state tax return • Current income statement from an employer or paycheck stub
(must cover 3 consecutive months within the previous 12 months) • A Social Security statement of benefits • A retirement/pension statement of benefits
o 4 $31,118 $2,593
o 5 $36 464 $3,039
0 6 $41,810 $3,484
fl 7 $47,156 $3,930 • An Unemployment/Workers' Compensation statement of benefit • Federal notice letter of participation in General Assistance 0 8 $52,502 $4,375 • Divorce decree, child support award or other official document
containing income information - #in
household
For each add'I
person, add: $5,346 $446
Last Name: Firct M1MIp lnitiI
Last 4 digits of Soc. Security It: Date of Birth:
Residential Address: Apt. ______ City: State:_ Zip:
(no P.O. Box for res. address) This is my (check one): _____ Permanent Address Temporary Address
If you move, you must update your residential address with ReachOut Wireless within 30 days.
Billing Address (if different): Apt. _______City: __________ State: - Zip:
I certify that:
- I acknowledge that Lifeline is a government assistance program and that willfully making false statements to obtain the benefit can result
in fines, imprisonment, de-enrollment or being barred from the program.
- I acknowledge that only Lifeline eligible consumers may enroll in the Lifeline Program.
- I acknowledge that only one Lifeline service is available per household, and that, to the best of my knowledge, no other person in my
household is receiving a Lifeline service. (For purposes of Lifeline, a "household" is any individual or group of individuals who live
together at the same address and share income and expenses.)
- I acknowledge that a household is not permitted to receive Lifeline benefits from multiple providers and that violation of this limitation
constitutes a violation of the rules of the Federal Communications Commission and will result in de-enrollment from the Lifeline program.
If I am participating in another Lifeline program at the time I apply for ReachOut Wireless Lifeline service, I agree to cancel that Lifeline
service with any other provider.
- I acknowledge that Lifeline is non-transferable and that I may not transfer my benefit to any other person.
- I acknowledge that providing false or fraudulent information to receive Lifeline benefits is punishable by law.
- I will notify ReachOut Wireless within 30 days if for any reason I no longer satisfy the criteria for receiving Lifeline services, such as no
longer meeting the income levels, or if I or a member of my household receives another Lifeline benefit.
- I acknowledge that I may be required to re-certify to my continued eligibility for Lifeline at anytime, and that my failure to re-certify will
result in de-enrollment and termination of my Lifeline benefits.
If I move to a new address, I will provide the new address to ReachOut Wireless within 30 days.
If I provided a temporary address, I will be required to verify my temporary address every 90 days. If I do not provide verification within
30 days, I will be de-enrolled from the Lifeline program.
- I authorize Reachout Wireless to access any governmental state or federal records or database located anywhere required to verify my
statements herein and to confirm my continued eligibility for Lifeline and authorize social service agency representatives to discuss with
and/or provide information to ReachOut Wireless verifying my participation in programs that qualify me for Lifeline. I also authorize
ReachOut Wireless to release any records required for the administration of ReachOut Wireless's Lifeline program, including to the
Universal Service Administrative Company (USAC) to be used in a Lifeline Program Database. I understand that the records are required
to ensure the proper administration of the Lifeline program and that failure to provide consent will result in the applicant being denied
the Lifeline service.
- I certify penalty of perjury that the information contained in this certification is true and correct to the best of my knowledge.
Applicant's Signature: Date
Customer Service 1 - 877 - 870 - 9444
www.reachoutmobile.com
Nexus Communications. Inc. dlb/a
Fax to: 1400.700-5576 Email to: enrollTSlHomephone.com or J;C
Mad to: TSI Home Phone, P0 Box 247168, Columbus, OH 43224-7168
WIRELINE LIFELINE APPLICATION - PROGRAM BASED
I certify that I participate in one of the following programs (check one):
Food Stamps (SNAP) Medicaid
- Federal Public Housing Assistance (Section 8) Temporary Assistance to Needy Families (TANF)
- National School Lunch Free Lunch Program - Supplemental Social Security (SSI)
- Low-Income Home Energy Assistance Program (LIHEAP) If you wish to qualify based on income, a different form is required.
You must provide documentation demonstrating your current participation in the program checked above.
Last Name: First Name: Middle Initial:
Last 4 digits of Soc. Security #: Date of Birth:
Residential Address: Apt. ______ City: State: _Zip:
(no P.O. Box for res. address) This is my (check one): Permanent Address - Temporary Address
If you move, you must update your residential address with TSl Home Phone within 30 days
Billing Address (if different): Apt. _____ City: State: Zip:
I certify that:
- I acknowledge that Lifeline is a government assistance program and that willfully making false statements to obtain the benefit can result
in fines, imprisonment, de-enrollment or being barred from the program.
- I acknowledge that only Lifeline eligible consumers may enroll in the Lifeline Program.
I acknowledge that only one Lifeline service is available per household, and that, to the best of my knowledge, no other person in my
household is receiving a Lifeline service. (For purposes of Lifeline, a "household" is any individual or group of individuals who live
together at the same address and share income and expenses.)
- I acknowledge that a household is not permitted to receive Lifeline benefits from multiple providers and that violation of this limitation
constitutes a violation of the rules of the Federal Communications Commission and will result in de-enrollment from the Lifeline program.
If I am participating in another Lifeline program at the time I apply for TSI Home Phone Lifeline service, I agree to cancel that Lifeline
service with any other provider.
- I acknowledge that Lifeline is non-transferable and that I may not transfer my benefit to any other person.
I acknowledge that providing false or fraudulent information to receive Lifeline benefits is punishable by law.
- I will notify TSI Home Phone within 30 days if for any reason I no longer satisfy the criteria for receiving Lifeline services, such as no longer
participating in any of qualifying program, or if I or a member of my household receives another Lifeline benefit.
I acknowledge that I may be required to re-certify to my continued eligibility for Lifeline at any time, and that my failure to re-certify will
result in de-enrollment and termination of my Lifeline benefits.
- If I move to a new address, I will provide the new address to TSI Home Phone within 30 days.
- If I provided a temporary address, I will be required to verify my temporary address every 90 days. If I do not provide verification within
30 days, I will be de-enrolled from the Lifeline program.
- I authorize TSI Home Phone to access any governmental state or federal records or database located anywhere required to verify my
statements herein and to confirm my continued eligibility for Lifeline and authorize social service agency representatives to discuss with
and/or provide information to TSI Home Phone verifying my participation in programs that qualify me for Lifeline. I also authorize TSI
Home Phone to release any records required for the administration of TSI Home Phone's Lifeline program, including to the Universal
Service Administrative Company (USAC) to be used in a Lifeline Program Database. I understand that the records are required to ensure
the proper administration of the Lifeline program and that failure to provide consent will result in the applicant being denied the Lifeline
service.
- I certify penalty of perjury that the information contained in this certification is true and correct to the best of my knowledge.
Applicant's Signature: Date:
Customer Service I - 866 - 392 - 7123
www.TSIHomephone.com
Nexus Communications, Inc. d/b/a
Fax to: 1800-700-5576 Email to: [e-mail] or aq
Mail to: TSI Home Phone, P0 Box 247168, Columbus, OH 43224-7168
WIRELINE LIFELINE APPLICATION * INCOME BASED
certify that my household income is at or below 135% of the Federal Poverty Guidelines as indicated below:
Eligibility for Lifeline may apply if your household income is at or below
Check or
Complete
Persons in
Household Annual Income Monthly
Income
135% of the Federal Poverty Guidelines for a household of that size.
Indicate which income range applies to you in the chart. You must
provide proof of eligibility based on income, which can include:
0 1 $15,080 $1,257
0 2 20,426
0 3 $25,772 $2,148 • Last year's federal or state tax return
• Current income statement from an employer or paycheck stub
(must cover 3 consecutive months within the previous 12 months)
• A Social Security statement of benefits
• A retirement/pension statement of benefits
0 4 $31,118 $2,593
5 $36,464 $3,039
0 6 $41,810 $3,484
0 7 $47,156 $3,930 • An Unemployment/Workers' Compensation statement of benefit
• Federal notice letter of participation in General Assistance 0 8 $52,502 $4,375
• Divorce decree, child support award or other official document
containing income information #In
household
For each add'l
person, add: $5,346 $446
Last Name: First Name: Middle Initial:
Last 4 digits of Soc. Security #:
Residential Address:
Date of Birth:
Apt. _____ City: _State: _ Zip: _______State:_Zip:
(no P.O. Box for res. address) This is my (check one): _____ Permanent Address Temporary Address
If you move, you must update your residential address with TSI Home Phone within 30 days
Billing Address (if different): Apt. _____ City: State:_ Zip:
I certify that:
- I acknowledge that Lifeline is a government assistance program and that willfully making false statements to obtain the benefit can result in fines,
imprisonment, de-enroliment or being barred from the program.
- I acknowledge that only Lifeline eligible consumers may enroll in the Lifeline Program.
- I acknowledge that only one Lifeline service is available per household, and that, to the best of my knowledge, no other person in my household is
receiving a Lifeline service. (For purposes of Lifeline, a "household" is any individual or group of individuals who live together at the same address and
share income and expenses.)
- I acknowledge that a household is not permitted to receive Lifeline benefits from multiple providers and that violation of this limitation constitutes a
violation of the rules of the Federal Communications Commission and will result in de-enrollment from the Lifeline program. If I am participating in
another Lifeline program at the time I apply for 151 Home Phone Lifeline service, I agree to cancel that Lifeline service with any other provider.
- I acknowledge that Lifeline is non-transferable and that I may not transfer my benefit to any other person.
- I acknowledge that providing false or fraudulent information to receive Lifeline benefits is punishable by law.
- I will notify TSI Home Phone within 30 days if for any reason I no longer satisfy the criteria for receiving Lifeline services, such as no longer meeting the
income levels, or if I or a member of my household receives another Lifeline benefit.
- I acknowledge that I may be required to re-certify to my continued eligibility for Lifeline at any time, and that my failure to re-certify will result in de-
enrollment and termination of my Lifeline benefits.
- If I move to a new address, I will provide the new address to 151 Home Phone within 30 days.
- If I provided a temporary address, I will be required to verify my temporary address every 90 days. If I do not provide verification within 30 days, I will be
de-enrolled from the Lifeline program.
- I authorize 151 Home Phone to access any governmental state or federal records or database located anywhere required to verify my statements herein
and to confirm my continued eligibility for Lifeline and authorize social service agency representatives to discuss with and/or provide information to 151
Home Phone verifying my participation in programs that qualify me for Lifeline. I also authorize ISI Home Phone to release any records required for the
administration of ISI Home Phone's Lifeline program, including to the Universal Service Administrative Company (USAC) to be used in a Lifeline Program
Database. I understand that the records are required to ensure the proper administration of the Lifeline program and that failure to provide consent will
result in the applicant being denied the Lifeline service.
- I certify penalty of perjury that the information contained in this certification is true and correct to the best of my knowledge.
Applicant's Signature: Date
Customer Service I * 866 392 - 7123
www.lSlHomephone.com
Exhibit 2
Sample Marketing Material
AU unused minutes rollover
to the next month!
I I I
lab Irpr Mir