20130530Comments.pdf

NEIL PRICE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 6864
Street Address for Express Mail:
472 W , WASHINGTON
BOISE, IDAHO 83702-59I8
Attorney for the Commission Staff
IN THE MATTER OF THE APPLICATION OF
NEW CINGULAR WIRELESS PCS, LLC
(AT&T MOBTLTTY) FOR CONDITIONAL
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER IN
IDAHO.
CASE NO. NCW-T-l3-OI
COMMENTS OF THE
COMMISSION STAFF
.J i-J r-: Ll
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
The Staff of the Idaho Public Utilities Commission, by and through its Attorney of Record,
Neil Price, Deputy Attorney General, in response to the Notice of Application and Notice of
Modified Procedure, issued on May 9,2073, Order No. 32806, submits the following comments.
BACKGROUND
On April 24,2013, New Cingular Wireless PCS, LLC ("AT&T Mobility" or "Company")
filed an Application, pursuant to 47 U.S.C. $ 21a@)Q), for conditional designation as an eligible
telecommunications carrier ("ETC") in certain areasl of Idaho outside its existing service areas so
that it may participate in the Federal Communications Commission's ("FCC") Mobility Fund
Phase I ("MFI") program. AT&T Mobility refers to this Application as its Application for MFI
ETC Designation in order to distinguish it from its existing ETC designation.
' Exhibit A of AT&T Mobility's Application includes a list of the census blocks/areas in Adams, Idaho, Lemhi and
Valley counties.
STAFF COMMENTS MAY 30,2013
On April 16, 2008, the FCC approved AT&T Mobility II LLC's acquisition of Edge
Wireless.2 Edge Wireless was previously designated by the Commission as an ETC in Idaho. See
Case No. EDG-T-07-01, Order No. 30360. On August 14,2008, AT&T sent a letter to the
Commission explaining the transaction that Edge remained a separate legal entity, although it was
now a subsidiary of AT&T and that it wished to retain its designation as an ETC. On December 31,
2010, AT&T consolidated Edge into New Cingular Wireless PCS, LLC, a subsidiary of AT&T
Mobility LLC.
The Application
AT&T Mobility, a wholly owned subsidiary of AT&T, is a Delaware limited liability
Company with its principal place of business located in Atlanta, Georgia.3 AT&T Mobility states
that it is a facilities-based wireless telecommunications carrier providing commercial mobile radio
service ("CMRS") that uses its own switching, cell sites, and associated telecommunications
facilities in Idaho.a
On February 5,2013, AT&T Inc. and Atlantic Tele'Network ("ATN") filed an application
pursuant to sections 214 and 310 of the Communications Act of 1934, as amended to approve the
transfer of spectrum licenses, Ieases, authorizations and other assets used in the operation of ATN's
retail wireless businesses in 28 Cellular Marketing Areas in Idaho from ATN's wholly-owned
subsidiary, Allied Wireless ("Allied"), to AT&T Mobility, an indirect, wholly-owned subsidiary of
AT&T.5 Last year, the FCC selected Allied as a winning MFI auction bidder in several census
tracts in Idaho. While AT&T Mobility is an existing ETC in ldaho, most of Allied's winning MFI
bids in Idaho are for census blocks outside of AT&T Mobility's ETC service area.u The Company
states that its designation as a conditional ETC is necessary for AT&T Mobility to participate in the
MFI program in Idaho in the event that the FCC approves the transfer of certain licenses and assets
form Atlantic Tele-Network, Inc. ("ATN"1 to AT&T.7
2 See FCC Public Notice llireless Telecommunications Bureau, Assignment of License Authorization Applications,
Transfer of Controlfo License Applications, De Facto Transfer Lease Applications and Spectrum Manager Lease
Notifications, Designated Entity Reportable Eligibility Event Applications, and Designated Entity Annual Report
Action, Report Number 4002, Report dated April 16, 2008. The closing date of the transaction was April 18, 2008.' Id. at 4.
u ld. at 4.s ld. at 2.
u Id.
7 Application at I -2.
STAFF COMMENTS MAY 30, 2013
In its Application, AT&T Mobility requests that the Commission grant the ETC designation
conditional on: (l) the FCC's approval of the transfer of Allied's licenses and assets to AT&T
Mobility; and (2) FCC authorization of MFI support for AT&T Mobility. If the aforementioned
FCC approval is not granted then AT&T Mobility asks the Commission to declare its Application
null and void.8 If the FCC authorizes AT&T Mobility to receive MFI support in some but not all of
the areas listed in Exhibit A, see footnote l, the Company asks the Commission to nullifu its MFI
ETC designation in those areas where AT&T Mobility is not authorized to receive MFI support.
AT&T Mobility's existing ETC designation in Idaho (Study Area Code 479006) will not be
affected by any such nullification.
Overview of the Mobility Fund, Phase I
On, November 19, 201l, the FCC released the USF/ICC Transformation Order in which it
established the Auction 901.e The FCC set aside $300 million to be used to increase the availability
of current generation mobile broadband and mobile voice across the country.l0 The FCC
recognized that the current systemll is not efficient and that universal service funding for mobile
networks must be deployed in a more targeted and efficient fashion.
MF1 will award funds to carriers that commit to deploying 3G or better mobile voice and
broadband services in census blocksl2 where such services are unavailable. Support will be
allocated to maximize the road miles covered by new mobile services without exceeding the budget
of $300 million. Winning bidders will be obligated to choose whether to deploy 3G service within
two years or 4G within three years of the award.13
Mobility Fund Phase I Eligibility Requirements and Certificationsra
L ETC Desisnation Certification. To be eligible to participate in MFl, the applicant must
be designated as an ETC pursuant to Section 214 of the Communications Act in any
8 Id.
n USf/rcC Transformation Order, reteased on November I 8, 20 I 1 para. 299.
to Id. para.295.
I | "Yet despite growth in annual funding [of USF] for competitive ETCs of almost I 000 percent over the past decade-
from less than $17 million in 2001 to roughly $1.2 billion in 2010-there remain many areas of the country where
people live, work, and travel that lack any mobile voice coverage, and still larger geographic areas that lack current
generation mobile broadband coverage." Id. atpara.295.
'' The census block is the smallest geographic unit for which the Census Bureau collects and tabulates decennial census
data. Some census blocks, particularly in rural areas, may include both served and unserved areas. USF/ICC
Transformation Order, para. 33 I .
t3 Auction 901 Procedures Public NoticeDAl2-721, released on May 8,2Ol2,para.2.t4ld. at29.
STAFF COMMENTS MAY 30,2013
geographic area for which it seeks support, with the exception of Tribally-owned or
controlled entities. The entity, and not a subsidiary or parent holding company, must be
designated by a State or the FCC as an ETC in that geographic area to be eligible to
participate in the auction.rs ETC status carries with it certiin obligations. Aparty might
obtain the required ETC designation but may not be subject to the obligations unless and
until it is awarded Mobility Fund support. The FCC will allow a party to participate in
the auction if it has an ETC designation conditioned upon the party winning support in
the auction.l6
Access to Spectrum Description and Certification. Pursuant to the USF/ICC
Transformation Order, any applicant for MFI must have access to the necessary
spectrum to fulfill any obligations related to support.lT
Financial and Technical Capability Certification. The FCC requires that an applicant
certify in the pre-auction short-form application that it is financially and technically
capable of providing 3G or better service within the specified timeframe in the
geographic areas for which it seeks support.
Certification that Applicant Will Not Seek Support for Areas in Which It has Made a
Public Commitment to Deploy 3G or Better Service by December 31. 2012. The FCC
requires each applicant for MFl support certify that it will not seek support for any areas
in which it has previously madep public commitment to deploy 3G or better wireless
service by December 31, 2012.'"
Staff believes AT&T Mobility satisfies or will meet the first three requirements and that the
Company will be required to meet the last requirement upon participate in the MFl.
STAFF ANALYSIS
Staff has reviewed AT&T Mobility's Application and has conducted an analysis of the
Company's fulfillment of 47 U.S.C. $ 214(e), 47 C.F.R. $ 54.1003, Order No. 29841 and the MFI
requirements. In addition, Staff has analyzed the public interest benefits of awarding the Company
a conditional ETC designation.
2.
J.
4.
t5 Id. para, 93.
t6 ld. para. 94,
t1 Id. pau:a.96.
tE td.pwa,98.
STAFF COMMENTS MAY 30,2013
Public Interest Analysis
Under Section 214 of the Telecommunications Act of 1996, individual State Commissions
must determine that an ETC designation is consistent with the public interest, convenience and
necessity.le
MFI recipients must offer voice service with coverage of at least 75 percent or more of the
designated road miles within the area for which support is provided. Additionally, receipt of the
Mobility Fund Phase 1 support is conditioned upon the recipient providing service over a network
that achieves particular data rates under particular conditions, which the FCC refers to as 3G
networks or better.20
AT&T Mobility requests ETC designation outside of its current ETC service area and in
unserved areas. As such, the public interest analysis is a simple one. The fact that no other carriers
serve these census blocks suggests that it would be in the public interest to grant the required ETC
designation to AT&T Mobility and allow it to deploy services to these areas.
Other Public Interest Considerations
When applying the public interest test for an ETC Application, Staff has reviewed other
requirements that ETCs must satisfy. These public interest considerations are summarized below:
Company contribution to the Idaho Telephones Service Assistance Program (ITSAP). Staff
has verified that the Company is remitting ITSAP fees to the program Administrator.2l
AT&T Mobility has the ability to remain functional in emergenc), situations.22 AT&T
Mobility "has the ability to remain functional in emergency situations." The Company states that it
has a reasonable amount of back-up power to ensure functionality without an external power source,
is able to re-route traffic around damaged facilities, and is capable of managing traffic spikes
resulting from emergency situations.23 At&T Mobility asserts that it has monitoring systems in
place; a comprehensive emergency response plan; all of its cell sites within its ETC designated area
in Idaho have permanent battery back-up power as well as a number of "plug in" portable
generators that can be deployed to any switch location; and, a cell site on wheels for emergency or
temporary deployment in Idaho.2a
r'47 u.s.c. g 2ta(eX2).
20 Auction 901 Procedures Public Noticepara.26.
" 2Ol2ITSAP Annual Report, Con/identialMonthly Reports.
22 Application at 13.
" Id.
'o ld, at lo-rr.
STAFF COMMENTS MAY 30,2013
For the reasons stated above, Staff believes that AT&T Mobility satisfies the public interest
analysis.
Other ETC Designation Requirements
Additional requirements for ETC designation, not previously discussed, are detailed in the
Appendix I of Order No. 29841 and discussed more fully below.
L Common Carrier Status. AT&T Mobility is a Commercial Mobile Radio Services
(CMRS) carrier providing "mobile service" as defined in 47 U.S.C. $ 153(2D.2s
2. Provide the Universal Services. AT&T Mobility offers the federally designated services
listed at 47 U.S.C. $54.10(a).26
3. Advertising. AT&T Mobility will advertise the availability and pricing of its universal
service offering.2T
4. The Commitment and Ability to Provide Supported Service. AT&T Mobility will use
USF support as set forth under the Phase I Mobility Fund.28
5. Commitment to Consumer Protection and Service. AT&T Mobility certifies that it will
comply with all applicable service quality standards and consumer protection rules including
CTIA's Consumer Code for Wireless Service as it may be amended form time to time.2e
6. Description of the Local Usage Plan. AT&T Mobility's service offering are described in
Exhibit B.3o
7. Tribal Notification. AT&T Mobility will provide notice to any potentially affected tribal
governments or tribal regulatory authorities as well as a copy of the Application.3l
STAFF RECOMMENDATION
Staff has reviewed AT&T Mobility's Application seeking conditional ETC designation and
believes the Company has the financial, technical, and managerial capabilities to provide 3G or
better service. Staff believes the Company is able to fulfill the MFI obligations should the FCC
approve the transfer of assets from Allied to AT&T Mobility.
2s ld. at6-7.
26 ld. at7-t.
" td. atB-9.
28 Id. atg.
'n Id. at l.
30 /d Exh. B.3t Id. at 12,
STAFF COMMENTS 6 MAY 30,2013
Respecttully submiued *ri, farvof May 2013.
Technical Stsff: Grace Seaman
i:umiso:commontdnewtl3, lnpgs comments
Staffbelieves that AT&T Mobility's request for a eonditional ETC designation is in the
public interest and recommends Commission approval of the Application.
Neil Price
Deputy Attorney General
STAFF COMMENTS MAY 30,2013
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