20190328Comments.pdf

EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10446
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Street Address for Express Mail:
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BOISE, IDAHO 83702-59I 8
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SAGE TELECOM COMMUNICATIONS, LLC
FOR DESIGNATION AS AN ELIGIBLE
TELBCOMMUNICATIONS CARRIER COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attomey of
record, Edward Jewell, Deputy Attomey General, submits the following comments.
BACKGROUND
On January 24,2019, Sage Telecom Communications, LLC dba TruConnect
("TruConnect" or "Company") applied to the Commission for an Order designating it as an
eligible telecommunications carrier ("ETC") for the soul purpose of providing Lifeline services
to qualifying consumers in the State of Idaho. The lifeline program is intended to provide more
affordable telecommunications service benefits to eligible low-income customers through the
federal Universal Service fund ("USF") and the Idaho Telecommunications Service Assistance
Program ("ITSAP"). Idaho participates in the residential Lifeline program pursuant to ldaho
Code $56-901. See OrderNo.21713.
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1STAFF COMMENTS MARCH 28,2019
CASE NO. SAG.T.19.O1
The Application
TruConnect is a Texas Limited Liability Company with its principal place of business in
Los Angeles, California. Application at 3. TruConnect provides prepaid wireless
telecommunications services to consumers by using the underlying wireless networks of Sprint
Spectrum, L.P. and Verizon Wireless and/or T-Mobile USA, Inc. on a wholesale basis. Id. at 4.
TruConnect states that it will operate throughout Idaho, excluding tribal lands. Id. at 13.
TruConnect asserts that it meets the requirements of Section 2la(e)(1)t of the federal
Telecommunications Act to be designated as an ETC. Id. at 10-12.
TruConnect asserts it is entitled to ETC designation under 47 U.S.C. $ 2la(e)(2), which
authorizes state commissions to designate wireless ETCs, Id. at 11-12. The Company asserts
that it: (l) is a common carrier; (2) has the financial and technical capability to provide Lifeline
service; (3) commits and is able to provide services supported by federal universal support
mechanisms; (4) will advertise the availability of supported services in a manner reasonably
designed to reach those likely to qualify; (5) commits to provide service throughout its service
area in Idaho; (6) is capable of remaining functional in emergency situations; (7) is committed to
consumer protection and service; (8) will comply with all program uniform eligibility
requirements; and (9) will comply with requirements imposed by this Commission for ETC
status. Id. at ll-19.
The Company further states that granting it ETC designation would promote the public
interest, and fulfill one of the principal goals of the Communications Act of 7934, as amended by
the Telecommunications Act of 1996; to secure lower prices and higher quality services for
consumers and encourage the rapid deployment of new telecommunications technologies to all
citizens, regardless of geographic location or income. Id. at 19. Specifically, the Company
contends that ETC designation is in the public interest because: (l) wireless service includes
larger local calling areas (as compared to traditional wireline carriers); (2) mobile telephone
service provides convenience and security for customers; (3) customers can control cost by
receiving a preset amount of monthly airtime and data at no net cost; (4) customers can purchase
additional usage at flexible and affordable amounts in the event that included usage has been
I In December 2011, the FCC amended the list of required services for ETC designation by removing dual tone
signaling, single-party service, and access to operator services, interexchange services, and directory assistance. In
the Matter of Lifeline and Link Up Reform and Modernization, Report and Order and Further Notice of Proposed
Rulemaking, 27 F.C.C. Rcd. 6656 at 1T365 (Feb. 6,2012).
2STAFF COMMENTS MARCH 28,2019
exhausted; (5) customers receive 9lllBgll service in accordance with current FCC
requirements; and (6) granting ETC status to TruConnect will increase the number of ETCs in
Idaho. Id. at 19-22.
TruConnect's Lifeline Service Offerings
TruConnect intends to offer qualified customers one Lifeline Service Plan: (1) Basic
Lifeline Plan. Id. at 5-6. The Basic Lifeline Plan would provide 1000 voice minutes, unlimited
texts, and 2 GB of data. Id. The Company notes that all of its proposed plans would enable
Lifeline customers the capability of purchasing additional voice minutes and/or data to
supplement their Lifeline plans according to the proposed lifeline offering. Id. at 5.
The Company acknowledges that, under 47 U.S.C. $ 2la(e)(l)(A) of the
Telecommunications Act of 1996, ETCs must offer services, at least in part, utilizing their own
facilities. Id. at 10-11 . The Company seeks to proffer services only through resale of other
carriers' facilities. Id. However, TruConnect invokes the FCC's 2012Lifeline and Link Up
Reform Order.2 The Company states that the FCC granted forbearance to any
telecommunications carrier that seeks Lifeline-only ETC if the ETC complies with certain 911
requirements and the ETC files a compliance plan with the FCC describing the ETC's adherence
to certain protections prescribed by the FCC, and such plan is approved. Application at I l. The
Company attached its approved Compliance Plan as Exhibit 3 to the Application.
TruConnect further asserts that it is not seeking high-cost support for its wireless service,
and therefore qualifies for a waiver of the Commission requirements in Order No. 29841 Section
B.l to provide a two-year network improvement and maintenance plan. The Company reads this
requirement to be based on the receipt of high-cost support. Id. at 18-19.
STAFF ANALYSIS
Staff has reviewed TruConnect's Application along with the FCC-approved Compliance
Plan. Staff has conducted an analysis of the Company's fulfillment of the federal
Telecommunications Act of 1996, the proceedings in FCC l6-38 including the Lifeline and Link
Up Reform and Modernization Order, the Third Report and Order, Further Report and Order,
2 Lifeline and Link Up Reform and Modernization, Lifeline and Link Up, Federal-State Joint Board on Universal
Service, Advancing Broadband Availability Through Digital Literacy Training, 27 F.C.C.R. 6656,
aJSTAFF COMMENTS MARCH 28,2019
and Order on Reconsideration, as well as Commission Order No. 29841. Specific state and
federal requirements for ETC designation are discussed in more detail as follows.
Public Interest Considerations
Staff typically applies a two-prong test when analyzing whether a Company's ETC
Application is in the public interest. First, Staff determines whether the Company contributes to
Idaho funds. Second, Staff analyzes whether the Company's Application raises "cream
skimming" concerns.
In the Company's Application, TruConnect confirmed that upon approval as an ETC in
Idaho, the Company would participate in the appropriate Idaho programs, specifically the Idaho
Lifeline program and the 9-l-l program and any future reporting requirements deemed
appropriate for competitive telecommunications providers. See Application at 18. The
Company requests ETC designation statewide. Id. at 13-14. Therefore, no cream skimming
analysis is required. Thus, Staff believes TruConnect satisfies the public interest considerations.
Network Improvement Plan
In the Idaho ETC Designation Order,3 a two-year network improvement and progress
report is required of all ETCs receiving high-cost support. See Order No. 29841 at 1 8.
However, the Commission determined in Cricket Communications, Inc.'s ETC Application in
CRI-T-11-01 that a two-year network improvement plan was not applicable to Lifeline-only
ETCs. Order No. 32501.
In the USF/ICC Transformation Order, the FCC amended 47 C.F.R. 554.202 to clarify
that a common carrier seeking designation as a Lifeline-only ETC is not required to submit a
f,rve-year network improvement plan as part of its application for designation as an ETC.
Lifeline-only ETCs do not receive high-cost funds to improve or extend networks, therefore the
FCC "saw little purpose in requiring such plans as part of the ETC designation process."4
TruConnect's Application seeks only low-income federal USF support as a Lifeline-only ETC.
3 In the Matter of Connect America Fund, A National Broadband Plan for Our Future, Establishing Just and
Reasonable Rates for Local Exchange Carriers, High-Cost Universal Service Support, Developing a Unified
Intercarrier Compensation Regime, Federal-State Joint Board on Universal Service, Lifeline and Link-Up Universal
Service Reform - Mobility Fund, WC Dkt No. l0-90 et al.
a See Lifeline and Link up Reform and Modernization et al, WC Dkt No. I l -41 et al. Report and Order and Further
Notice of Proposed Rulemaking, FCC l2-l I at para 386.
STAFF COMMENTS MARCH 28,20194
Thus, Staff agrees that a network improvement plan is not a requirement for TruConnect's ETC
Application.
Ability to Remain Functional in Emergencies
The Company states that it has the ability to remain functional in emergency situations in
accordance with Commission OrderNo. 29841 and47 C.F.R, $5a.202(a)(2). Application at 16.
TruConnect asserts that because it is reselling wireless services, the Company is able to provide
the same ability to remain functional in emergency situations as the underlying carriers provide
to its own customers. Namely, the Company asserts that the underlying carrier networks oohave
access to a reasonable amount of back-up power to ensure functionality without an external
power source, are able to reroute traffic around damaged facilities, and are capable of managing
traffic spikes resulting from emergency situations." Id. at 16. Staff agrees TruConnect satisfies
this requirement.
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix 1 of Order No.
29841and are discussed in more detail below.
1. Common Carrier Status. TruConnect is a common carrier as defined in U.S.C.
Title 47. Id. at ll.
2. Provide Universal Services. TruConnect will provide all required services and
functionalities as set forth in Section 5a.101(a) of the FCC's Rules (47 C.F.R. $ 5a.l0l(a)).
Id. at 12.
3. Advertising. TruConnect will advertise the availability and rates for its services
described in the Application through media of general distribution as required by 47 U.S.C.
$21a(e)(l)(B). Id. at 14.
4. A Commitment to Consumer Protection and Service. TruConnect commits to
satisfying all such applicable state and federal requirements related to consumer protection and
service quality standards, including compliance with the Cellular Telecommunications and
Internet Association's Consumer Code for Wireless Service as required by 47 C.F.R.
$sa.202(a)(3). Id. at l8-19.
5STAFF COMMENTS MARCH 28,2079
5. Description of the Local Usage Plan. TruConnect will offer one Lifeline Service Plan.
Id. at 4-6. Furthermore, the Company will meet or exceed the minimum service standards set
forth in 47 C.F.R. $54.408, including any changes to the standards going forward. Id. at 5.
STAFF RECOMMENDATION
Based on its review of the Company's Application, Staff believes that the Application
demonstrates the Company's commitment to fulfill the obligations of a Lifeline-only ETC in
Idaho. The Company will provide all universal services supported by the federal USF
throughout its service territory; it has addressed all of the public interest questions that
accompany an ETC Application; TruConnect's compliance plan has been approved by the FCC;
and it will provide multiple pricing plans, which will increase consumer choice for low-income
telephone service in Idaho. Thus, Staff believes TruConnect's Application for designation as an
ETC is in the public interest and should be approved for the entire state.
Respectfully submitted this Z6w day of Mar ch20l9.
J
Deputy General
Technical Staff: Daniel Klein
i :umisc/comments/sagt I 9. I ejdk comments
6STAFF COMMENTS MARCH 28,2019
CERTIFICATE OF SERVICB
I HEREBY CERTIFY THAT I HAVE THIS 28TH DAY OF MARCH 2019,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. SAG-T-Ig-OI, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
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LANCE JM STEINHART PC
1725 WINDWARD CONCOURSE
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E-MAIL : hki rb),((z)telecomcounse l.com
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