20221017Comments.pdf

RILEY NEWTON
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
[phone]
IDAHO BAR NO. II2O2
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Street Address for Express Mail:
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BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIBS COMMISSION
IN THE MATTER OF TELRITE
CORPORATION'S d/b/a LIFE WIRELESS
APPLICATION FOR DESIGNATION AS AII
ELIGIBLE TELECOMMUNICATIONS
CARRIER
CASE NO. TEC.T.22-OI
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Riley Newton, Deputy Attomey General, submits the following comments.
BACKGROUND
On June 14,2022, Telrite Corporation dlbla Life Wireless ("Telrite" or "Company")
applied for designation as an Eligible Telecommunications Carrier ("ETC") in Idaho. On July 1,
2022, the Company supplemented its Application to comply with the Tribal notification
requirements of Order No. 35126. The Company further supplemented its Application on
August 25,2022, to noti$ the Commission that it provided a copy of its Application and
Supplement to the five federally recognized tribes in Idaho.
The Company states that it submits this Application for designation as an ETC in the
State of Idaho "for the limited purpose of receiving universal service support to provide wireless
services to low-income Idaho households as part of the Lifeline program." Application at 4. The
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1STAFF COMMENTS ocToBER 17,2022
Company o'does not seek access to funds from other federal Universal Service Fund ("USF")
programs such as high-cost support or Tribal Link-Up." 1d Additionally, the Company
"requests that its designation as an ETC include the authority to participate in and receive
reimbursement from the Idaho Telecommunications Service Assistance Program (ITSAP)." /d
The Lifeline program is intended to provide more affordable telecommunications service
benefits to eligible low-income customers through the federal USF and ITSAP. Idaho
participates in the residential Lifeline program pursuant to ldaho Code $ 56-901 . See Order
No.21713.
The Company asserts that it meets all federal and state requirements for designation as an
ETC, including the requirements for ETCs participating in the Lifeline program, and that being
designated as an ETC is in the public interest. The Company asks that the Commission grant it
ETC status "expeditiously." Application . at6.
The Application
Telrite is an established Georgia corporation with its principal offices located at 4ll3
Monticello Street, Covington, Georgia 30014. It is authorizedto do business in Idaho as a
foreign corporation. Telrite is an established provider of both wireline and wireless
telecommunications services. For its Lifeline services, Telrite operates as a reseller and uses the
networks of its underlying service providers, T-Mobile, and AT&T Mobility, to provide services
to its subscribers. The Company offers Lifeline services using the dlblalife Wireless.
Telrite requests an ETC designation that is statewide in scope to allow the Company to
provide basic Lifeline service wherever its underlying, facilities-based providers have wireless
coverage. The Company asserts that it meets the requirements of Section 21a(e)(1) of the
Federal Telecommunications Act to be designated as an ETC. Id. at7.
Telrite states that it is entitled to ETC designation under 47 U.S.C. $ 2la(eX2), which
authorizes state commissions to grant ETC designations. Id. at7-8. The Company, asserts that
it: (l) is a common carrier; (2) commits and can provide services supported by federal universal
support mechanisms; (3) will advertise the availability of supported services in a manner
reasonably designed to reach those likely to qualifu; (4) is committed to consumer protection and
service quality standards; (5) is capable of remaining functional in emergencies; (6) has the
2STAFF COMMENTS ocToBER 17,2022
financial and technical capability to provide Lifeline service; and (7) will comply with
requirements imposed by this Commission. Id. at 10-17.
The Company represents that being granted the ETC designation "will benefit the public
interest by making the Company's seryices available to a broad range of low-income
consumers"l in Idaho. Id 6. The Company notes that "today, robust levels of broadband service
must be offered to eligible subscribers, as a means of effectively bridging the 'Digital Divide'
that separates Idaho residents based on income." Id at 17.
The Company affirms that it seeks the ETC designation "solely to utilize USF funding to
provide Lifeline service to qualified low-income consumers" in Idaho . Id. at 13. The Company
also seeks Commission authorization to participate in and receive reimbursement from ITSAP.
Id at 4.
Telrite's Lifeline Service Offerings
Telrite intends to initially offer the following Idaho service plan: 500 voice minutes and
5 Gigabytes ("GB") of data per month with unlimited texting and multimedia messaging service
at no cost to the subscriber.2 This plan includes a smartphone3 and custom calling features such
as caller ID, Call Waiting, Call Forwarding, 3-way Calling, and Voicemail. Additionally, in any
month, subscribers to the plan will be able to add more services from the list of the currently
offered services, as follows: a 100 GB Data PIN for $5.00, 100 additional minutes for $5.00, 250
additional minutes for $10.00, one day of unlimited minutes for $4.95, three days of unlimited
minutes for $7.95, one week of unlimited minutes for $12.95, two weeks of unlimited minutes
$19.95, and one month of unlimited minutes $29.95. Id. at 15.
STAFF ANALYSIS
Staff reviewed Telrite's Application. Staff analyzedthe Company's fulfillment of the
Federal Telecommunications Act of 1996 ("Act"), the Federal Communications Commission
("FCC") regulations, and Idaho Public Utilities Commission Order No. 29841 and Order
t The Lifeline program does ensure that low-income consumers have access to and can afford essential voice and
broadband communications services. Given the expansion of technology today, thus making broadband an
increasingly essential part of everyday living, the Lifeline program has now become even more crucial.2 5 GB is contingent upon receipt of 52.50 monthly support from ITSAP. Without this support, the Lifeline plan
would only include 4.5 GB. Application at 15, ft.21.
3 This is free to eligible consumers.
JSTAFF COMMENTS ocToBER 17,2022
No. 35126. Specific state and federal requirements for ETC designation are discussed in more
detail below.
Public Interest Considerations
Staff applies a two-prong test when analyzingwhether 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 Application, Telrite confirmed that upon approval as an ETC in ldaho, it would participate
in the appropriate Idaho programs, specifically the ITSAP program. Application at 4. The
Company requests ETC designation statewide. Id. at 7. Therefore, no cream skimming analysisa
is required. Staff believes that Telrite satisfies the public interest considerations.
Network Improvement Plan
The Commission requires a two-year network improvement and progress report from all
ETCs receiving high-cost support. See Order No. 29841 at 18. However, the Commission
determined in Case No. CRI-T-11-01 that ETC Applications for Lifeline-only ETC designations
do not require a two-year network improvement plan. Order No. 32501.
In the USF/ICC Transformation Order, the FCC amended 47 C.F.R. 5 54.202 to clariff
that a common carrier seeking designation as a Lifeline-only ETC is not required to submit a
five-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."s
Telrite's Application seeks only low-income USF support as a Lifeline-only ETC. Thus, Staff
believes that Telrite need not submit a network improvement plan with its Application.
a Cream skimming analysis is the examination of the perceived business practice of a company providing a product
or a service to only the high-value or low-cost customers of that product or service, while disregarding clients that
are less profitable for the company.
5 See Lifeline and Link up Reform and Modernization et al, WC Dkt No. I l -4 I et al. Report and Order and Further
Notice of Proposed Rulemaking, FCC l2-l I at para 386.
4STAFF COMMENTS ocroBER 17,2022
Tribal Notification
Pursuant to Commission Order No. 35126, an ETC applicant seeking ETC designation
for any part of tribal lands in ldaho shall provide a copy of its application to the affected tribal
government or tribal regulatory authority, as applicable, at the time it files its application with
the Commission. Evidence of such notification shall be provided to the Commission. Telrite
provided copies of the USPS-certified mail that the Company sent to the tribal authorities. Staff
believes these documents comply with Commission Order No. 35126.
Ability to Remain Functional in Emergencies
Telrite represents that it can remain functional in emergencies per Commission Order
Nos. 29841 ,35126, and FCC regulation,4T C.F.R, $ 5a.202(a)(2). Application at 13-14. Telrite
asserts that because it resells wireless services, it can provide the same ability to remain
functional in emergencies as the two underlying carriers, T-Mobile, and AT&T Mobility,
provide to their customers. Id. Tehite asserts that it "has access to these extensive and well-
established networks and facilities and believes that they are capable of managing traffic spikes
that may occur during emergencies and can reroute traffic in the event of damaged facilities.
Id at l3-14. Additionally, "Telrite also has reason to believe that these network operators have
sufhcient back-up power to ensure functionality if its extemal power supply is unavailable."
Id at 14. Therefore, Staff accepts that Telrite fully satisfies this requirement.
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix I of Order
No. 29841 and Order No. 35126 and are discussed in more detail below.
1. Common Carrier Status.
Telrite is a common carrier as defined by Title 47 U.S.C. $ 153(10) and section
332(c)(lXA) of the AcL Id. at 10.
2. Provide Universal Services.
Telrite states that it 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. at l0-
I t.
5STAFF COMMENTS ocToBER 17,2022
3. Advertisine.
Telrite 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); and section 54.405(c) of the FCC's rules. Id. at 12.
4. A Commitment to Consumer Protection and Service.
Telrite commits to satisfring 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. $ 54.202(aX3).
Id. at 74.
5. Description of the Local Usage Plan.
Telrite will offer a Lifeline service plan as outlined in Exhibit C.
STAFF RECOMMENDATION
Based on its review of the Company's Application, Staff believes that the Application
demonstrates the Company's commitment to fulfilling 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 the public interest questions that accompany an
ETC Application. Telrite will provide multiple pricing plans, which will increase consumer
choice for low-income telephone services in Idaho. The Commission has granted seven wireless
ETCs access to participate in the State's ITSAP program, so Staff supports allowing Telrite to
participate in the ITSAP program. Thus, Staff believes Telrite's Application for designation as
an ETC is in the public interest and should be approved for the entire State of ldaho as a service
area.
6STAFF COMMENTS ocToBER 17,2022
Respecttullysubmittedthis l?f Orrofoctober 2022.
Riley Newton
Deputy Attorney General
Technieal Staff: Johan Kalala-Kasanda
i:umisc./commcntiltee@2. lmjk oommnts
7STAFF COMMENTS ocToBER t7,2A22
CERTIFICATE OF SERYICE
I HEREBY CERTIFY THAT I HAVE THIS ITth DAY OF OCTOBER}O22,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. TEC.T.ZL.OI, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
SUSAN J BERLIN
FRIEND HUDAK & HARRIS
THREE RAVINIA DR, SUITE 17OO
ATLANTA GA 30346
E-MAIL: [e-mail]
JIM CARPENTER
DIVISION PRESIDENT
TELRITE HOLDINGS
1I IOO ALCOVY RD
COVINGTON GA 3OOI4
E-MAIL : i [e-mail]
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CERTIFICATE OF SERVICE