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HomeMy WebLinkAbout20181105Application.pdfSMITH + MALEK }iiCEIVED ?ili$ H*? -S pH 2: OtrATTORNEYS CAITLIN E. O'BRIEN caitlin@smithmalek.com 208.2t 5.2411, SS oru November 2,2018 Viu FeclEx Diane Hanian Commission Secretary Idaho Public Utilities Commission 472 W. Washington Street Boise, ldaho 83702 Admitted in Idaho and Washington N-ul:- T- tt'ol Re Newmax, LLC dba Intermax Networla App lication for Des ignation as an Eligib le Telecommunic ations C anier Dear Ms. Hanian, Newmax, LLC dba Intermax Networks files an original and seven (7) copies of the enclosed "Application for Designation as an Eligible Telecommunications Carrier for the Purposes of Participating in the FCC's Connect America Fund and Request for Expedited Consideration." Please date-stamp the enclosed "Stamp and Return" copy and return it to our offices via the enclosed, prepaid envelope. Please contact the undersigned if you have any questions regarding this submission. O'Brien SMith + MAIEK, PLLC Counsel for Newmax,LLC dba Intermax Networks I (r0l FI.FRONTAVENIIE lStllTEl04 ICOEi-lRD'ALENE. lD838l4 lP.20lt.2l-s.2411 1F.208.21s.2416 STATE OF IDAHO BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of Application of Newmax, LLC dba Intermax Networks for Designation as an Eli gible Telecommunications Carrier for Purposes of Participating in the Federal Communications Commission to Receive Connect America Fund Phase II Auction (Auction 903) Support for Voice and Broadband Services Case No.-T- t8-ot APPLICATION OF NEWMAX. LLC dba INTERMAX NETWORKS FOR DES.GNATION AS AN ELIGIBLE TELECOMMTINICATIONS CARR]ER FOR THE PURPOSE,S OF PARTICIPATING IN THE FCC'S RURAL BROADBAND EXPERIMENTS AND REOUEST FOR EXPEDITED CONSIDERATION Newmax, LLC dba Intermax Networks ("Intermax"), pursuant to 47 U.S.C. $ 2la(e)(2), 47 C.F.R. $$ 54.201 et seq., Idaho PUC OrderNo.29841 ("ETC Order") and IDAPA 31.46.01 et seq. ("Commission Rules), applies to the Idaho Public Utilities Commission ("Commission") for designation as an Eligible Telecommunications Carrier ("ETC") to serve the service area set forth herein.l On August}8,2018, the Federal Communications Commission announced that Intermax was provisionally selected for funding under the agency's Cormect America Fund Phase II Action (Auction 9$).2 Funding is contingent on Intermax demonstrating that it meets the FCC's technical and financial qualifications, including obtaining ETC designation from this Commission by February 25,2019 for the Service Area. ETC designation by this Commission is, therefore, a prerequisite for Intermax's eligibility for funding.3 I .See Exhibit l. 2 Connect America Fund Phase II Auction (Auction 903) Closes Winning Bidder Announced FCC Form 683 Due October 15 2018, AU DocketNo, l7-182, WC DocketNo. 10-90, PublicNotice, DA l8-887, FCC Rcd(rel. Aug. 28, 2018) ('Auction 903 Results Notice), Attachment A at 7 . 3 Auction 903 Results Notice, para' 15, n. I 1 . 2 As demonstrated in this Application, Intermax satisfies all the ETC requirements of the FCC and the State of Idaho and designation will be in the public interest. 1. Identification of the Companv Intermax is a facilities-based, locally-owned, independent internet, voice, data, and IT Managed Services provider in the Inland Northwest. Founded in 2001, the company is a leader in bringing broadband to areas historically underserved. Intermax began offering rural or microwave Internet access in order to provide Internet access to individuals in its service areas. Intermax's services lrave evolved to include regional fiber, LTE, and microwave networks in Kootenai, Bonner, Benewah, and Boundary counties, and they serve nearly 3,000 business and residential clients ranging from southem Kootenai County to the Canadian border. Intermax provides a variety of fixed terrestrial broadband services, including fiber, cable Internet, and fixed point to multi-point wireless broadband services. Intermax also offers voice services using Voice over Internet Protocol ("VoIP") technology. The contact information for Intermax is as follows: Newmax, LLC dba Intermax Networks Michael R. Kennedy, President 7400 N. Mineral Drive, Ste. 300 Coeur d'Alene, Idaho 83815 Copies of pleadings, orders, notices, or other correspondence and communications regarding this application should be provided to: SMith + MAICK, PLLC 601 E Front Avenue, Suite 304 Coeur d'Alene, Idaho 83814 -) 2. The CAF II Auction On January 31, 2018, the FCC issued an Order on Reconsideration concerning its Connect America Fund initiative. This allowed the FCC to proceed forward with the CAF II Auction. The CAF II auction allowed service providers to compete to receive up to $ 1.98 billion in funding to offer voice and broadband service in unserved but high-cost areas. As part of this program, the FCC will disburse up to $ 198 million annually for providers to deploy broadband networks in high-cost, unserved price-cap areas. 3. This Commission Has the Authoritv to Designate [ntermax as an E fC Federal law allows states to exercise the authority to designate a qualified carrier as an ETC.e The state of [daho has accepted the grant of authority and empowered this Commission to designate qualified carriers as ETCs.l0 Thus, the Commission has the authority under state law to designate a qualified carrier as an ETC. 4. Request for Expedited Desisnation Winning bidders must, within 180 days of being announced as winning bidders, obtain ETC designation in any areas for which they are awarded support and submit appropriate documentation of such ETC status to the FCC. 4 The amount of time that Intermax has to obtain a designation is quite short. Failure to obtain a designation could mean loss of funding and forfeiture of a winning bid. Therefore, Intermax is respectfully requesting that the Commission review this Application promptly and grant Intermax the ETC designations in the Census Blocks identified in Exhibit A, on an expedited basis. 4 See 47 CFR 55 5a.310(eX1),5a.315(b)(S); see also Auction 903 Procedures Public Notice,33 FCC Rcd 7428,1473 ("the [FCC] decided that an applicant need not be an ETC as of the initial short-form application filing deadline for Auction 903, but that it must obtain a high-cost ETC designation for the areas covered by its winning bids within 180 days after being announced as a winning bidder"); Auction 903 Results Notice, DA l8-887, para.34. 4 5. Intermax is Oualified to be Designated as an ETC Both the FCC and this Commission have adopted rules that specify the requirements for carriers to be designated an ETC. Intermax satisfies or will within a reasonable time after designation, satisfy all the relevant requirements for designation as an ETC specified in federal law and those under state law.s In summary. Intermax (i) is a common carrier with respect to the telecommunications services that it offers; (ii) is capable of providing and will continuously provide throughout its proposed service area the universal services set forth in 47 C.F.R. $5a.l0l(a) either by using its own facilities or a combination of its own facilities and resale of another carrier's facilities: (iii) will advertise the availability of its universal service offering and charges through media of general distribution; (iv) demonstrates herein that the ETC designation is consistent with the public interest, convenience, and necessity; (v) has the commitment and ability to provide supported services based on the criteria set forth in Section B.l of the Idaho ETC Order; (vi) 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; and (vii) will comply with the annual reporting requirements set forth in Section C of the Idaho ETC Order. Demonstration that Intermax meets or exceeds each of the above requirements of federal and state law is provided in the following corresponding sections: Common Catier Status.Intermax provides telecommunications services within its coverage area on a nondiscriminatory basis and therefore for those services is regulated as and s See,47 U.S.C. $ Zt+1e;;47 C.F.R. $ 54.201, et seq.; see, generally ldaho ETC Order. 5 subject to the requirements applicable to a common carrier. Accordingly, Intermax meets this requirement of ETC designation. Local Usuge Plan Description.Intermax will offer high-speed Internet access service and high-quality, unlimited VoIP calling in its service plans. Interrnax's pricing will be reasonably comparable to the price of similar services in urban areas. Intermax's interconnected VolP service will provide unlimited local and interstate calling, so it will not include usage charges for local or toll calls. Intennax is also required to set prices for its otfers that are reasonably comparable to prices in urban areas. Intermax therefbre, will offer calling plans comparable to those offered by incumbent local exchange carriers in the areas in which Intermax seeks designation. Intermax is a fucilities-based service provider. Intermax will use a combination of its own network and facilities and resale of another carrier's services to provide service, as permitted by 47 U.S.C. $ 2la(eXlXA). Intermax is capable of providing (a) voice grade access to the public switched telephone network; (b) minutes of use for local service providers at no additional charge to end users; (c) access to emergency services provided by local government or other public safety organizations (such as 9l I and enhanced 911) to the extent the local government in the eligible carrier's service area has implemented 9l I or enhanced 91 1 systems; and (d) toll-limitation services for qualifying low-income consumers. Intermax's voice services interconnect with, and provide voice-grade access to, the Public Switched Telephone Network, and Intermax relies on local-exchange-carrier partners with regard to physical interconnection, numbering resolrrces, local number portability, call termination, and other service. Intermax does not meter local calls and in fact treats local and non-local calls as equivalents, thereby eliminating the need for toll-limitation for low-income consumers. In sum, these are the 6 supported services that a carrier must provide and that are supported by universal service funds. Intermax, therefore, satisfies this requirement for ETC designation. Advertise the Availability of Supported Services. Intermax currently advertises the availability of supported services through media of general distribution, consistent with 47 U.S.C. $2la(eXl)(B). It utilizes newspapers, radio, its website, and other direct advertising methods throughout its service area. Intermax will expand upon these media, as necessary, to ensure that consLlmers within its ETC designated area are fully informed of its universal service offerings. lntermax, therefore, will satisfy this requirement for ETC designation. ETC Designation is Consistent with the Public Interest, Convenience und Necessity. ETC designation is in the public interest. The FCC held the 903 Auction in order to begin the process of "closing the digital divide for all Americans, including those in rural areas of our country."(' Intermax, as a winning bidder, is eligible to receive funding to help meet that goal by providing services to consllmers in traditionally underserved areas of [daho. Commitment and Ability to Provide Supported Services. Pursuant to the ldaho ETC Orcler, ETC applicants are required to demonstrate that they are capable of providing and will continuously provide throughout the proposed service area the services identified in 47 C.F.R. $ 54.101 (a). Intermax certifies that it will comply with the service requirements applicable to the support it receives, including the requirements of the CAF II Auction. Intermax further certifies that it will provide service on a timely basis to requesting customers within the service area. If a potential customer requests service and is outside existing network coverage, Intermax certifies that it will follow the six-step process specified in 47 C.F.R. $ 5a.202(a)(l )(i), to the extent possible. 6 Connect America Fund, et al., Order on Reconsideration,33 FCC Rcd 1380, para. 1 7 The FCC waived the requirement for a winning bidder to file a five-year planT as part of the ETC designation process.s Accordingly. Intermax is not required to submit a two-year plan, because the two-year plan requirement in Idaho is based on the FCC's five-year plan requirement.e Abili$ tu Function in Emergency Situations. lntermax will have the ability to remain ftrnctional in emergency situations as required by FCC rules and by the Iduho ETC Ortler. Specifically, Intermax will have adequate amounts of back-up power to ensure functionality without an external power source, and Intermax maintains a redundant middle-mile/backbone network with redundant paths and network rings. Power outage protection is available at all sites ei:her by means of significant battery backup or gas-powered generators. Intermax satisfies this requirement for ETC designation. Consumer Protection Requiremenfs. Although the FCC has waived the requirement to demonstrate satisfaction of consumer protection and service quality standardsl0, Intermax certifies that it will comply with all applicable service quality standards and consumer protection rules. Annuul Reporting.Intermax is aware of and will comply with the annual reporting requirements of the Commission. Outages.Intermax certifies that it will comply with the requirement to report on outages to the Commission. 7 47 c.F.R. g 5a.202(a)(r )(ii)8 I4/CB Reminds Connect America Fund Phase II Applicants of the Process for Obtaining Federal Designation as an Eligible Telecommunications Carrier, WC Docket Nos.09-197, l0-90, Public Notice, DAIB-774, at 4-5 (rel, July 10,2018) ("FCC ETC Procedures Notice). e See ETC Order at 8. t0 See FCC ETC Procedures Notice, DAIB-774, at 4-5; see also Connect America Fund, et al., ETCs Annual Reports and Certifications,WC Docket Nos. l0-90, l4-58, Report and Order, 32FCC Rcd 5944, 5944-5948,paras. 3-14 (20L7). 8 Unfu(illed Service Requests.Intermax certifies that it will comply with the requirement to report unfulfilled service requests. Customer Complaints. Intermax will comply with the requirement to report complaints. Service Qualtty and Consumer Protection CertiJication.Intermax will comply with the requirement to certify compliance with consumer protection and service quality standards and rules. Descriptions of Local Usage Plan and that of ILEC. lntermax certifies that it will comply with the requirement to include a description of the local usage plan and ILEC local usage plan in the annual report. Certifications Intermax certifies that all federal high-cost support provided to Intermax for service areas in Idaho will be used only for the provision, maintenance, and upgrading of facilities and services for which the support was intended, consistent with Section 47 U.S.C. $ 25a(c) of the Communications Act. No party to this application is subject to denial of federal benefits under Section 5301 of the Anti-Dmg Abuse Act of 1988. I I REOUEST FOR RELIEF Intermax respectfully requests the following: (i) that the Commission expeditiously designate lntennax as an ETC in the census blocks identified in Exhibit l, determined by the FCC to be unserved, conditioned on Intermax actually receiving Connect America Fund money; (ii) that the Commission send prompt notice of the designation to the FCC and the Universal Service Adrninistrative Company; and (iii) for such other relief as may be appropriate 9 r'21 usc $862 E.O Counsel for Counsel for Newmax,LLC dba Intermax Networks l0 CERTIFICATION STATE OF IDAHO COTINTY OF KOOTENAI I, Michael R. Kennedy, state that I am the President of Newmax, LLC dba Intermax Networks; that I am authorized to rnake this Certification on behalf of Newmax, LLC dba Intermax Networks; that the foregoing Application ofNewmax,LLC dba Intermax Networks for Designation as an Eligible Telecommunications Canier was prepared under my direction and supervision; and that the contents are true and cottect to the best of my knowledge, information, and belief. I declare under penalty of perjury that the foregoing is true and correct. Executed this 2nd day of November, 2018. Michael President Newmax, LLC dba \ Networks 11 EXHIBITl-SERVICEAREA County Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Kootenai Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Bonner Boundary Boundary Boundary Benewah Benewah Benewah Benewah CBG Number 160550001001 160550001002 160550001003 160550002001 160550002002 160550002003 160550002004 160550002005 16055000301 l I 605500030 I 2 I 6055000302 I 1 605s0003022 16055000401 1 160550004012 160550007001 160550007002 1 6055001 7001 160ss0017003 160550018002 I 605500 I 8003 160550019001 160550019002 160550020001 160550020002 160559400001 160559400002 160559400003 160179509001 160179504001 t60t79502004 160179502003 t60179502002 l 601 79s02001 1601 79501002 1601 7950100 l 160219701004 1602t9702001 160219702005 160099400003 160099400004 160099400005 160099501003 EXHIBIT 2 _ SERVICE AREA MAP t2 l3 bt..t't r/.*' -t-l a,-ti'; fr? 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