20231107Comments of the Commission Staff.pdf

STAFF COMMENTS 1 November 7, 2023
MICHAEL DUVAL DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720 BOISE, IDAHO 83720-0074 [phone] IDAHO BAR NO. 11714
Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF TEMPO TELECOM’S APPLICATION FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER

TEM-T-23-01
OMMENTS OF THE
COMMISSION STAFF (“STAFF”) OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Michael Duval, Deputy Attorney General, submits the following
comments.

BACKGROUND
On August 7, 2023, Tempo Telecom, LLC (“Company” or “Tempo”) applied to the
Idaho Public Utilities Commission (“Commission”) for designation as an Eligible
Telecommunications Carrier (“ETC”) in the State of Idaho (“Application”).
The Company represents that it is seeking designation as an ETC for the sole purpose of
providing Lifeline services, and it will not (and is not eligible to) seek access to funds from the
federal Universal Service Fund (“USF”) to participate in the Link-Up program or high-cost
RECEIVED
2023 November 7 10:08 AM
IDAHO PUBLIC
UTILITIES COMMISSION
STAFF COMMENTS 2 November 7, 2023
program1. However, the Company requests that it be allowed to participate and receive
reimbursement from the Idaho Telephone Service Assistance Program accordingly (“ITSAP”).
Application at 2. 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 Idaho 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 this
designation is in the public interest. The Company asks that the Commission grant it ETC status
“expeditiously.” Application at 2.

THE APPLICATION
According to the Application, Tempo is a Georgia limited liability company and provider
of commercial mobile radio service. It provides prepaid wireless and prepaid wireless Lifeline
services throughout the United States, by using the underlying wireless networks of Tier 1
carriers, currently T Mobile USA, Inc. (“T-Mobile”), on a wholesale basis. T-Mobile provides
Tempo with the underlying network infrastructure and wireless transmission facilities needed for
Tempo to offer service as a Mobile Virtual Network Operator (“MVNO”). Id. at 3.
Tempo is a wholly owned subsidiary of Lingo Management, LLC (“Lingo
Management”), a Delaware limited liability company with a principal office at 25925 Telegraph
Rd., Suite 210, Southfield, Michigan 48033. Lingo Management is a holding company and does
not provide any telecommunications services or hold authorizations from any state authority for
the provision of telecommunications services. Id. at 3-4. Additionally, Staff has verified that
Tempo is registered with the Idaho Secretary of State as a Foreign Limited Liability Company
with a commercial registered agent in Idaho at Incorp Services, Inc. with a listed address of 1310
S Vista Avenue, Suite 28, Boise, ID 83705. Staff also verified that its principal mailing and
physical address is shown on the Idaho Secretary of State certificate as 9330 LBJ Freeway, Suite
944, Dallas, TX 75243.

1 Given that the Company is only seeking Lifeline support from the low-income program and does not seek any high-cost support, ETC certification requirements for the high-cost program are not applicable to the Company.
STAFF COMMENTS 3 November 7, 2023
Tempo asserts that with the ETC designation status in Idaho, it will provide affordable
prepaid mobile phone service including calling, text messaging, and broadband access, user-
friendly handsets, tablets, and hotspot devices. Tempo states that it will not require service
contracts from its customers, and it will always ensure competitively low pricing for its services
and products. Tempo represents that it will manage all aspects of the customer experience,
including setting service pricing, handset selection, marketing materials, and customer service.
Its prepaid, budget-friendly pricing will give many low-income consumers the option of having
mobile phone service and broadband access without the burden of hidden costs, varying monthly
charges, or contractual commitments. Customers will be able to customize their Tempo service
to suit their needs with Tempo’s available bundles of minutes, broadband data, and text packages
to supplement their monthly plan. Id. at 5.
Tempo represents that its service offering will include a plan with a “Lifeline Data
Bundle” plan, which offers unlimited nationwide voice minutes, voicemail, unlimited nationwide
text messages, and 4.5 gigabytes (“GB”) of data each month at no charge to an eligible
consumer. In addition, Tempo states that it will offer consumers the ability to purchase
additional megabytes or additional GB of data at reduced rates (plus applicable taxes and fees).
The Lifeline Data Bundle also provides the customer an option to add international calling with
per-minute pricing based on the country that is called. Id. at 11-12.
Tempo states that even though it is not a rural telephone company, it nevertheless
requests an ETC designation that is statewide in scope to allow the Company to provide Lifeline
service wherever its underlying, facilities-based provider(s) have wireless coverage, including
federally recognized tribal lands. Id. at 10-11. Tempo states that the Commission has
jurisdiction over this matter and that Tempo is a common carrier with the ability to provide the
telecom services listed in its Application. Id. at 6. Additionally, the Company asserts that it
meets all federal and state requirements for designation as an ETC. Most significantly, Tempo
contends that designating the Company as an ETC is in the public interest. Id. at 6.

STAFF COMMENTS 4 November 7, 2023
STAFF ANALYSIS
Staff examined Tempo’s Application and analyzed Tempo’s fulfillment of the Federal
Telecommunications Act of 1996, the Federal Communications Commission (“FCC”)
regulations, and Commission Order Nos. 29841 and 35126. The specific state and federal
requirements for ETC designation are discussed in more detail below.

Public Interest Considerations
Staff 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”2 concerns.
In its Application, Tempo specifically requested that its ETC designation include the
authority to participate in and receive reimbursement from the ITSAP. Id at 2. Tempo also
requested an ETC designation that is statewide in scope including federally recognized tribal
lands. Id. at 10-11. Therefore, no cream skimming analysis was required. Thus, Staff believes
the Company satisfies the public interest considerations.

Tribal Notification
Pursuant to Commission Order No. 35126, an ETC applicant seeking ETC designation
for any part of tribal lands 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.
On August 7, 2023, as part of its Application, Tempo provided the certificate of service
for its communications with the various authorities of the tribal lands.3 Staff believes that these
communications comply with Commission Order No. 35126.

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, in Case No. Case No.

2 Cream skimming is a term used to refer to a company providing a service to only the high-value or low-cost customers of that service, while disregarding clients that are less profitable for the company. 3 See Exhibit 8: Certificate of Service.
STAFF COMMENTS 5 November 7, 2023
CRI-T-11-01, the Commission determined that Cricket Communications, Inc.’s ETC application
a two-year network improvement plan did not apply to Lifeline-only ETCs. Order No. 32501.
In its USF and Inter-Carrier Compensation (“ICC”)4 Transformation Order, the FCC
amended 47 C.F.R. § 54.202 to clarify 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.”5
Tempo’s Application seeks only low-income USF support as a Lifeline-only ETC. Thus,
Staff agrees that a network improvement plan is not a requirement for Tempo’s ETC Life-only
Application.

Ability to Remain Functional in Emergencies
Tempo states that it can remain functional in emergencies per Commission Order No.
29841 and FCC requirement 47 C.F.R, § 54.202(a)(2). Application at 14.
Tempo asserts that it has disaster recovery contingency plans that include
diverse/alternate routing, electronics redundancy, dual data centers geographically separated, and
environmental controls for data and switching centers. Additionally, Tempo has MVNO contract
arrangements with T-Mobile, its affiliate, and this also imposes certain obligations on T-Mobile
to ensure that Tempo’s prepaid wireless Lifeline service offering remains functional during
emergencies. T-Mobile, as a large nationwide wireless carrier, is also subject to regulatory
requirements to remain functional during emergencies. Id. at 14-15. Staff agrees that Tempo
satisfies this requirement.

4 An ICC is the system of regulated payments in which carriers compensate each other for the origination, transport, and termination of telecommunications traffic.
5 See Lifeline and Link up Reform and Modernization et al, WC Dkt No. 11-41 et al. Report and Order and Further Notice of Proposed Rulemaking, FCC 12-11 at paragraph 386.
STAFF COMMENTS 6 November 7, 2023
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix 1 of Order Nos.
29841 and 35126 as discussed below:
1. Common Carrier Status. Tempo is a common carrier as defined in U.S.C. Title 47
U.S.C. § 153(11). Application at 3.
2. Provide Universal Services. The Company will provide all required services and
functionalities as outlined in Section 54.101(a) of the FCC’s Rules (47 C.F.R. §
54.101(a)). Application at 9.
3. Advertising. The Company 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. § 214(e)(1)(B), 47 C.F.R. § 54.201(d)(2), and in 47 C.F.R. §
54.405(c)(d). Application at 12. A sample of the Company’s Lifeline advertising
is attached to the Application as Exhibit 4.
4. A Commitment to Consumer Protection and Service. The Company 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. § 54.202(a)(3). Application at 15.
5. Description of the Local Usage Plan. The Company will offer a Lifeline service
plan. Exhibit 6. Furthermore, the Company will meet the service standards
outlined in 47 C.F.R. § 54.101 (a), including as such standards are updated going
forward. Application at 3, 17.

STAFF COMMENTS 7 November 7, 2023
STAFF RECOMMENDATION
Based on Staff’s examination of Tempo’s Application and all of the additional filings,
Staff believes that Tempo demonstrated its commitment to fulfilling the obligations of a Lifeline-
only ETC in Idaho. Tempo will provide all universal services supported by the federal USF
throughout its service territory. Tempo has addressed the public interest questions that
accompany an ETC Application. Tempo will provide multiple pricing plans which will increase
consumer choice for low-income telephone services in Idaho. Currently, the Commission has
granted wireless ETCs access to participate in the State’s ITSAP program, so Staff supports
allowing the Company to participate in the ITSAP program. Staff believes that the Company’s
Application for designation as an ETC is in the public interest and should be approved for the
entire State of Idaho as the service area.

Respectfully submitted this 7th day of November 2023.

________________________________ Michael Duval Deputy Attorney General
Technical Staff: Johan Kalala-Kasanda i:umisc/comments/TEM-T-23-01 Comments