20210311Comments.pdf

MATT HLINTER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10655
IN THE MATTER OF STARLINK
SERVICES, LLC'S APPLICATION FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER
FOR PURPOSES OF RECEIVING RURAL
DIGITAL OPPORTUNITIES FUNI)
SUPPORT
Street Address for Express Mail:
1 133I W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE, TD 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. SSL.T.21.O1
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attomey of
record, Matt Hunter, Deputy Attorney General, submits the following comments.
BACKGROUND
On January 4,2021, Starlink Services, LLC ("Starlink" or the "Company") appliedl for an
order designating it as an Eligible Telecommunications Carrier ("ETC") in specific Idaho census
blocks. The Company needs ETC designation so that it can receive funding it was provisionally
awarded2 under the Federal Communications Commission (FCC) Rural Digital Opportunity Fund
("RDOF") Auction. Application at l.
t Starlink filed an amendment to its Application with the Commission on January 13,2021.
2 Space Exploration Technologies Corp. ("SpaceX"), the parent company of Starlink Services, Inc., ("Starlink") was
awarded the Rural Digital Oppornrnity Fund ("RDOF") Auction funding and, it claims, properly assigned its
winning bid to Starlink. See Application at L
STAFF COMMENTS MARCH II,2O2I1
Starlink describes the RDOF and its parent company's involvement in the
RDOF auction:
On January 30,2020, the FCC established RDOF to ensure continued and
rapid deployment of broadband networks to underserved Americans.
RDOF will commit up to $20.4 billion over ten years to support the
availability of high-speed broadband networks in rural America. RDOF
Phase 1 targeted areas wholly unserved by 2513 Mbps broadband. Support
was awarded through a reverse auction that favored faster services with
lower latency. Auction participants submitted bids based on a combination
of performance and latency requirements. The Phase 1 action concluded on
November 25,2020 and awarded a total of $9.23 billion in support over ten
years. SpaceX was awarded $885 million of this support to provide
broadband and standalone voice services in 35 states, including
$54,543,468 in Idaho. On December 22, pursuant to the processes
established by the FCC, SpaceX assigned its winning bids to Starlink
Services.
Application at 4-5.
THE APPLICATION
Starlink is a wholly-owned subsidiary of SpaceX. Starlink states in its Application that
"SpaceX designs, manufactures, and launches the world's most advanced rockets, spacecraft,
and satellites, and now offers broadband service over the world's largest satellite constellation."
Application at 2. SpaceX plans to deliver "a space-based broadband internet system capable of
providing truly low-latency, high-throughput service in even the most remote areas of the
country." Id. The Company notes that "[t]his service is ideal for bringing broadband and VoIP to
underserved rural areas in the United States." Id. The service for which the Company requests
designation is set forth inthe Company's Application. Id. at9.
The Company states it qualifies for ETC designation under the Federal
Telecommunications Act (47 U.S.C. $ 21a(e)(1)), the Federal Communications Commission's
eligibility rules (47 C.F.R. $ 5a.101(a)), and the requirements set forth by this Commission,
outlined in the Appendix to Commission Order No. 29841 . Id. at8-16.
The Company asserts it satisfies the requirements for designation as an ETC in that it: has
common carrier status; commits and is able to provide services supported by federal universal
support mechanisms; will advertise the availability of supported services; will, through its ETC
designation, advance the public interest, convenience and necessity; will provide a copy of the
STAFF COMMENTS MARCH II,2O2I2
Application to affected Tribal authorities and will comply with the FCC, Commission, and (as
applicable) Tribal requirements for seeking ETC designation in census blocks that overlap Tribal
lands; commits and is able to provide supported services as required by the Commission for ETC
status; is capable of managing traffic and maintaining functionality without an external power
source; complies with applicable consumer protection and service quality standards; and will
comply with annual reporting requirements established by this Commission. Id.
STAFF ANALYSIS
Staff has reviewed Starlink's Application and has conducted an analysis of the
Company's fulfillment of the federal Telecommunications Act of 1996,the FCC's regulations,
the RDOF requirements, and Commission Order No. 29841. In addition, Staff has analyzed the
public interest considerations of awarding the Company ETC designation. Specific state and
federal requirements for ETC designation are discussed in more detail below.
Public Interest Analysis
Staff typically applies a two-prong test when analyzing whether a company's ETC
application is in the public interest. First, Staff verifies that the Company will contribute to the
appropriate Idaho funds. Second, Staff analyzes whether the Company's Application raises
"cream skimming" concerns.
In its Application, Starlink confirms that upon designation as an ETC in Idaho, the
Company will participate in the appropriate Idaho programs, comply with the Commission's
annual reporting requirements, and otherwise comply with the Order No. 29841. Application at
8-16. The Company requests ETC designation for entire census blocks in areas that are wholly
unserved by 2513 Mbps broadband; therefore, no cream skimming analysis is required. See Id. at
12, Exhibit A. Thus, Staff believes Starlink's Application satisfies the public interest
considerations.
Network Improvement Plan
The Commission requires all ETCs receiving high-cost support to provide a two-year
network improvement and progress report. See Order No. 29841 at 18. However, the FCC
waived the requirement for a winning bidder to file a five-year plan as part of the FCC ETC
STAFF COMMENTS MARCH II,2O2IaJ
designation process. WCB Reminds Connect Am. Fund Phase II Auction Applicants of the
Process for Obtaining A Fed. Designation As an Eligible Telecommunications Carrier,33
F.C.C. Rcd. 6696 (2018). The FCC removed this requirement because it "adopted more specific
measures to track deployment, including annual reporting of service to geocoded locations and
certification of compliance with benchmark milestones." 1d.
The Compzmy requests a waiver of the Commission's two-year plan requirement, noting
that the Commission's two-year plan requirement was based on the FCC's (now waived) five-
year plan requirement. Application at 13 n.t6; see Order No. 29841 at 8. Staff believes a waiver
to the Commission's two-year plan requirement is appropriate because of the FCC's heightened
oversight of RDOF Auction winners.
Ability to Remain Functional in Emergencies
The Company states that it has the ability to remain functional in emergency situations
in accordance with Commission Order No. 29841 and 47 C.F.R. $ 5a.202(a)(2). Application at
13-14. Starlink asserts that it:
. . . will have sufficient back-up power to remain functional without an
external power source in emergency situations, will be able to reroute traffic
around damaged facilities, and will be able to manage traffic spikes
resulting from emergency situations. At the user level, Starlink Services
will offer a 24-hour battery back-up option for user equipment that will
provide the ability to make phone calls in the event of a power outage. At
the system level, Starlink Services is building redundancy into the network.
Application at 13-14. Staff agrees Starlink satisfies this requirement.
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix I of Order No
29841and are discussed in more detail below.
1. Common Carrier Status. Starlink is a common carrier as defined in U.S.C. Title 47. Id.
at 9.
Provide Universal Servises. Starlink will provide all required services and functionalities
as set forth in Section 54.101(a) of the FCC's Rules (47 C.F.R. $ 5a.101(a)). Id. at9-12.
Advertising. Starlink 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. $
2la(e)(l)(B). Id. at 13.
STAFF COMMENTS MARCH IT,2O2T
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4 A Commitment to Consumer Protection and Service. Starlink commits to satisffing all
such applicable state and federal requirements related to consumer protection and service
quality standards. Id. at 15.
Description of the Local Usage Plan. Starlink states it "will offer voice rate plans in the
Service Area that include local calling at no additional charge and will comply with any
and all minimum local usage requirements adopted by the FCC or states with jurisdiction
over Starlink Services' standalone voice service." Id. at ll.
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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 an 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;
and it will provide a local usage plan. Thus, Staff believes Starlink's Application for designation
as an ETC is in the public interest and should be approved.
Respecttully submitted this lt il day of March2021.
Hunter
Deputy Attorney General
Technical Staff: Daniel Klein
Umisc/Comments/sslt2l . I mhdk comments
5STAFF COMMENTS MARCH II,2O2I
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS IITH DAY OF MARCH 2021,
SERVED THE FOREGOING COMMENTS OF TIIE COMMISSION STAFF, IN
CASE NO. SSL-T-2I-OI, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
R EDWARD PRICE
SPACE EXPLORATION TECHNOLOGIES
CORP.
1155 F ST NW STE 475
WASHINGTON DC 2OOO4
E-MAIL: [e-mail]
JENNIFER RICHTER
AKIN GUMP STRAUSS HAUER
& FELD LLP
2OO1 K ST NW
WASHINGTON DC 20006
E-MAIL : [e-mail]
SECRET
CERTIFICATE OF SERVICE