20130318Second Amendment.pdf

I DavisWright
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TremaineLLP
March 15, 2013
VIA FEDEX
Idaho Public Utilities Commission
Attn: Jean Jewell
P0 Box 83720
Boise, ID 83720-0074
1013MAR 18 AM 9: 36
E'AH P3j
UTlL1'fls COMMISSLI;
Suite 800
1919 Pennsylvania Avenue NW
Washington, DC 20006
Danielle Frappier
Adam Shoemaker
202.973.4200 tel
202.973.4499 fax
[e-mail]
adamshoemaker©dwt.com
Re: 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 Second
Amendment to the Application of Nexus Communications, Inc. for Designation as an Eligible
Telecommunications Carrier for Low Income Support Only, which was filed on April 5, 2011.
An original and seven copies of Nexus's Second Amendment are enclosed. Please date-
stamp and return in the self-addressed envelope included with this filing. Should you have any
questions regarding this, please do not hesitate to call.
Respectfully submitted,
AkLj
Danielle Frappier
Adam Shoemaker
Davis Wright Tremaine LLP
CC: Neil Price
Grace Seaman
Anchorage New York Seattle
Bellevue Portland Shanghai
Los Angeles San Francisco Washington, D.C. www.dwt.com
100% ®
ORIGINAL
?fl•iMAR 13 Ml 9:36
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION -
UTtLTS C OMt
In the Matter of the Application of Nexus
Communications, Inc. for Designation as an Case No. NCI-T-1 1-01
Eligible Telecommunications Carrier for Low
Income Support Only
SECOND AMENDMENT TO APPLICATION OF NEXUS COMMUNICATIONS, INC.
FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER
FOR LOW INCOME SUPPORT ONLY
Nexus Communications, Inc. ("Nexus") respectfully submits this second amendment to
its Application for Designation as an Eligible Telecommunications Carrier ("ETC") filed on
April 5, 2011 ("Application"), as previously amended on September 14, 2012. This second
amendment describes how Nexus will comply with several new requirements in the Federal
Communication Commission's ("FCC") rules for the Lifeline Universal Service program
instituted by the FCC's November 18, 2011 Connect America Fund Order' and February 6, 2012
Lifeline Reform Order.2 This amendment also updates information provided to commission staff
in data responses submitted prior to the release of these orders.
Specifically, Nexus amends the following sections of its Application:
1) Revisions to Section D
Nexus updates Section D of its Application as follows:
'In the Matter of Connect America Fund, et al., CC Docket No. 96-45 et al., Report and Order and Further
Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (FCC rel. Nov. 18, 2011) ("Connect America Fund Order").
2 In Re Lifeline and Link Up Reform and Modernization, et al., WC Docket No. 11-42 et al., Report and
Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (FCC rel. Feb. 6, 2012) ("Lifeline Reform
Order").
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D. Nexus Will Comply with Consumer Eligibility Certification and Verification Rules
(47 C.F.R. § 54.509)
Nexus complies with the requirements pertaining to consumer qualifications for Lifeline
set forth in section 54.409 of the FCC's rules.3 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.4
Nexus will use 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.
1. Nexus' Procedures to Determine Consumer Eligibility for the Lifeline
Program
Analysis of Lifeline Eliibilit-y. If Nexus cannot determine an applicant's eligibility for
Lifeline by accessing income or program eligibility databases, Nexus personnel (either
47 C.F.R. § 54.509.
47 C.F.R. § 54.409(c).
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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 FCC's revised
Lifeline eligibility rules and Nexus' practices and policies designed to implement these new
rules.
Proof of Lifeline Eligibility. Nexus follows the FCC'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: (1) 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.5 Acceptable documentation of
income eligibility includes: (1) the prior year's state, federal, or Tribal tax return; (2) current
Lifeline Reform Order at ¶ 101.
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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.6
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
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,7
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.
6 C.F.R. § 54.410(b)(1)(i)(B). ' 47 C.F.R. § 54.410(b)(1)(ii) - (iii); 47 C.F.R. § 54.410(c)(1)(ii)-(iii).
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2. Nexus' Procedures for Subscriber Certifications
In the Lifeline Reform Order, the FCC 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.8 Nexus will utilize that database when it becomes operational.9
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
or over the phone. In any retail locations (except those with kiosks), Nexus' authorized third-
party representatives'0 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,
8 See Lifeline Reform Order at 1403.
On its new certification forms that were revised to encompass the requirements of the FCC'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.
10 All third-party representatives are accountable to Nexus for purposes of compliance with state and federal Lifeline
rules.
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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."
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 subscribr's billing address, if different; (5) the subscriber's date
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'); (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. 13
" See Lifeline Reform Order at 1168; 47 C.F.R. § 54.4 19.
12 Nexus will only include language regarding a Tribal identification number on forms used in states with
Tribal areas.
13 C.F.R. § 54.410(d)(2).
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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;14 (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
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
" 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.
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Lifeline database, and that failure to so authorize Nexus will result in a denial of Lifeline
benefits.
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, dc-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
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 FCC'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. Is
Finally, in accordance with 47 C.F.R. § 54.405(c), Nexus' Lifeline Application indicates,
using easily understood language, (1) that the service is a Lifeline service; (2) that Lifeline is a
15 Id.
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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. 16
2)Revisions to Section F
Nexus revises Section F of its Application as to read as follows:
F. Nexus Will Remain Functional in Emergency Situations
Nexus commits to remaining functional in emergency situations. Since Nexus will
provide services in part through the use of facilities obtained from a major carrier vendor for
wireless spectrum and other related wireless services, Nexus will provide to its customers the
same ability to remain functional in emergency situations as is currently provided by the vendor
to its own customers, including access to a reasonable amount of back-up power to ensure
functionality without an external power source, re-routing of traffic around damaged facilities,
and the capability to manage traffic spikes in the event of emergency situations.
3)Revised Section H
Nexus updates Section H of its application as follows:
16 Id.
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H. Nexus' Calling Plans Offer Local Usage Comparable to the Relevant ILECs' Plans
(47 C.F.R. § 54.202(a)(4))
Nexus' calling plans provide local calling capability comparable to the offered by the
relevant incumbent local exchange carriers ("ILEC5") in Nexus' operating areas. Nexus'
wireless minutes may be used to call anywhere in the United States, which includes, of course,
local calls. Nexus will also offer a number of features to its customers, including caller ID, call
waiting and voicemail. Nexus's plan and offerings therefore are comparable with or more
attractive than those of the incumbent LECs.
Upon designation as an ETC, Nexus will make available to qualified low income
consumers a discounted service offering that meets all applicable Lifeline requirements.
Consumers increasingly rely on their mobile phones for their communications needs and
qualifying low income consumers are no exception. Low-income consumers would be the
primary beneficiaries of Nexus's Lifeline service offering. Nexus intends to offer the following
prepaid wireless service plans to Lifeline subscribers in Idaho:
250 Minute Plan (non-rollover): 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): 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): In addition, Nexus offers, but does not actively market, a 68
Minute Plan (with rollover). 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.
Although available to subscribers, it is rarely selected except by a few subscribers who
infrequently use voice service and more frequently send text messages.
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All plans include at no extra charge: free 911-compliant handset; and "anytime" nationwide
minutes that can be used for domestic calls, including local or intrastate/interstate long distance
calls. Nexus does not charge a service activation fee or reconnect fee. Idaho subscribers will not
have to pay a service activation fee. Lifeline customers will not have minutes deducted from
their accounts to pay for taxes or fees.
Lifeline subscribers 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.
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. Lifeline customers will
not be required to use minutes to call * 611 customer service. There is no deduction of minutes
for calls to 911 or Nexus's customer service department. In a case where Nexus must change the
subscriber's phone number, Nexus will inform the subscriber before doing so. Nexus no longer
includes language in its service contract that it may "change a customer's phone number at any
time for any reason."
Calls from the handset 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 the Nexus end
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user. Calls to 911 emergency services are always free, and may be made regardless of service
activation or availability of minutes.
4) New Section K
In order to update prior data responses, Nexus adds a new Section K to its Application,
titled "Tribal Notification."
K. Tribal Notification
As required by Commission rules, Nexus will provide a copy of this Application to the
affected tribal government or tribal regulatory authority of the tribal areas it intends to serve. The
applicable tribal areas include those of the Nez Perce Tribe, the Shoshone-Bannock Tribe, and
the Coeur D'Alene Tribe.
5) New Section L
In order to update prior data responses, Nexus adds a new Section L to its Application,
titled "Other Requirements."
L. Other Requirements
Nexus will collect and remit all applicable surcharges and pay applicable taxes and fees,
including those related to universal service funding pursuant to chapter 9 of title 56 of the Idaho
Code and the emergency communications fee collected pursuant to Idaho Code § 31-4804.
Specifically, Nexus will remit applicable 911 and ITSAP surcharges based on its entire Idaho
subscriber base.
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Respectfully Submitted,
DaIile Frappier
Adam Shoemaker
Davis Wright Tremaine LLP
1919 Pennsylvania Avenue, NW, Suite 800
Washington, DC 20006
[phone]
[e-mail]
[e-mail]
Attorneys for Nexus Communications, Inc.
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