20100301First Amended Application.pdf

Mitchell F. Brecher
Debra McGuire Mercer
GREENBERG TRAURIG, LLP
2101 L Street, NW
Suite 1000
Washington, D.C. 20037
brecherm~gtlaw.com
mercerdm~gtlaw.com
Telephone: [phone]
Facsimile: [phone]
¡:;ECEI
20in MAR -I AM 9: 33
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TRACFONE WIRELESS, INC. FOR
DESIGNA TION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER
February 26,2010
)
) CASE NO. TFW-T-09-01
)
) FIRST AMENDED APPLICATION OF
) APPLICANT TRACFONE WIRELESS,
) INC.
TABLE OF CONTENTS
Page
i. TracFone's Universal Service Offering. ..............................................................................3
II. TracFone Meets the Requirements For Designation as an Eligible
Telecommunications Carrier to Serve the Designated Areas in the State of
Idaho. ...................................................................................................................................5
A. The Idaho Public Utilities Commission Has Jurisdiction to
Designate TracFone as an ETC................................................................................7
B. TracFone Wil Provide Service Through Resale. ....................................................8
C. TracFone Offers All Required Services and Functionalities. ................................10
i. Voice Grade Access to the Public Switched Network....... ...... ..................11
2. Local Usage. ..............................................................................................11
3. Dual Tone Multi-Frequency ("DTMF") Signaling or Its
Functional Equivalent. .................................. .............................................12
4. Single-party service or Its Functional Equivalent.....................................l2
5. Access to 911 and E911 Emergency Service.................................. ...........13
6. Access to Operator Services. .....................................................................14
7. Access to Interexchange Service. ..............................................................14
8. Access to Directory Assistance.................................................................. 14
9. Toll Limitation for Qualified Low-Income Customers. ............................14
D. TracFone Wil Be Able to Serve the Designated Areas Within a
Reasonable Time.................................................................................................. ..15
E. Service Quality Commitments. ............. .............. ................................................. ..15
F. TracF one Wil Advertise the Availability of Supported Services. ......... ...............l 6
G. TracFone Wil Comply with the Lifeline Certification and
Verification Requirements in 47 C.F.R. § 54.410. ................................................17
H. TracFone Requests Designation Throughout Its Service Area in
Idaho. .....................................................................................................................17
II. Designation of TracFone as an ETC in the State ofIdaho Would Serve the
Public Interest. ................................. ................................................................................. .18
A. The Benefits ofIncreased Competitive Choice. ..................................... .............. .21
B. Unique Advantages of TracFone's Service Offerings. ..........................................23
TracFone SafeLink Wireless(ß Lifeline Plan.............................................24
C. Impact on the Universal Service Fund...................................................................26
D. Designation of TracFone as an ETC Wil Benefit the Public
Interest of Consumers Throughout Idaho. .......................................................... ...28
CONCLUSION ..............................................................................................................................29
11
TABLE OF EXHIBITS
Exhibit
TracF one Wireless, Inc.' s Certificate of Authority...........................................................................l
TracF one Wireless, Inc.' s Certificate of Good Standing...................................................................2
Declaration of F.J. Pollak, President and Chief Executive Offcer, TracFone
Wireless, Inc. .....................................................................................................................................3
Petition of TracFone Wireless, Inc. for Forbearance from 47 USC § 214(e)(l)(A)
and 47 CFR § 54.201(i), 20 FCC Rcd 15095 (2005).........................................................................4
In the Matter of Federal-State Joint Board on Universal Service: TracFone
Wireless, Inc. Petition for Designation as an Eligible Telecommunications Carrier
in the State of New York et aI., 23 FCC Rcd 6206 (2008) ...............................................................5
State Utility Commission Decisions Designating TracFone Wireless, Inc. as an
Eligible Telecommunications Carrier ................................................................................................6
Federal-State Joint Board on Universal Service, et aI., 24 FCC Rcd 3375 (2009) ...........................7
SafeLink Wireless(ß Privacy Policy ......................................... ..................... .... ................................8
Lifeline advertisements and webpage................................................................................................ 9
USAC FCC Filings, Second Quarter Appendices - 2010, LI05 - Annual Low
Income Amounts by State and Company through 3Q2009 ..... ............................... ..........................1 0
USAC FCC Filngs, Second Quarter 2010 Appendices - 2010, HCOIA - High
Cost Support Projected by State by Study Area - 2Q201O ...............................................................11
SafeLink Wireless(ß Terms and Conditions .................................................................................... ..12
11
Mitchell F. Brecher
Debra McGuire Mercer
GREENBERG TRAURIG, LLP
2101 L Street, NW
Suite 1000
Washington, D.C. 20037
brecherm~gtlaw.com
mercerdm~gtlaw.com
Telephone: [phone]
Facsimile: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TRACFONE WIRELESS, INC. FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICA TIONS CARRIER
)
) CASE NO. TFW-T-09-01
)
) FIRST AMENDED APPLICATION OF
) APPLICANT TRACFONE WIRELESS,
) INC.
TracFone Wireless, Inc. ("TracFone"), by its undersigned counsel, and pursuant to
Section 214( e )(2) of the Communications Act of 1934, as amended (the "Communications Act"),
hereby submits this First Amended Application for Designation as an Eligible
Telecommunications Carrier ("ETC") in the State of Idaho. TracFone seeks ETC designation
solely to provide Lifeline service, under the trade name SafeLink Wireless(ß, to qualifying Idaho
consumers; it wil not seek access to funds from the federal Universal Service Fund ("USF") for
the purpose of providing service to high cost areas. i As demonstrated herein, and as certified in
Exhibit 3 to this Application, TracFone meets all the statutory and regulatory requirements for
i Given that TracFone only seeks 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 TracFone.
TracFone's Application
designation as an ETC in the State of Idaho.2 TracFone respectfully requests that the Idaho
Public Utilities Commission ("Commission") grant this Application and that it do so
expeditiously so that TracFone may provide Lifeline service to low income households at the
earliest practicable time.
On October 29, 2009, TracFone filed an ETC Application with the Commission solely
for the purose of providing Lifeline service to eligible low-income consumers in Idaho. On
February 5, 2010, the Commission issued Order No. 30996 denying the ETC Application
without prejudice. This First Amended ETC Application addresses the deficiencies that were
noted by the Commission in Order No. 30996. In particular, this First Amended ETC
Application provides TracFone's contact information, agent of service information, certificate of
authority from the Idaho Secretary of State, and a certificate of good standing from the Idaho
Secretary of State.3 In addition, updates the documents in Exhibits 6 and 10 and expands its
discussion of how its designation as an ETC is in the public interest. Finally, TracFone specifies
that it wil provide each SafeLink Wireless(ß, Lifeline customer with 67 minutes of airtime each
month for free.
2 See In the Matter of the Application of WWC Holding Co., Inc. DBA Cellular-One(ß Seeking
Designation as an Eligible Telecommunications Carrier That May Receive Federal Universal
Service Support, Order No. 29841, Case No. WST-T-05-1 (Idaho Pub. Utilities Comm'n:
August 4, 2005) ("Idaho ETC Order"). ETC designation, certification and reporting
requirements are contained in the Appendix to the Idaho ETC Order, referenced as "ETC
Checklist" in this Application.
3 Simultaneously with the filing of this First Amended ETC Application, TracFone is submitting
a Petition for Reconsideration of Order No. 30996. TracFone is filing both in an effort to
expedite resolution of its request for designation as an ETC so that it may commence offering its
SafeLink Wireless(ß Lifeline service to low-income Idaho households at the earliest possible
time.
TracFone's Application 2
I. TracFone's Universal Service Offering.
TracFone is incorporated under the laws of the State of Delaware and is headquarered at
Miami, Florida. Its corporate offces are located at 9700 N.W. 11th Avenue, Miami, FL 33178.
TracFone is a reseller of commercial mobile radio service ("CMRS") throughout the United
States, including the State of Idaho. TracFone has obtained a certificate of authority from the
Idaho Secretary of State (attached as Exhibit 1) and has received a certificate of good standing
from the Idaho Secretar of State (attached as Exhibit 2). The following individuals may be
contacted regarding this ETC Application:
Richard B. Salzman
9700 N.W. 11th Avenue
Miami, FL 33178
rsalzman ~tracfone.com
Telephone: [phone]
Facsimile: [phone]
and
Mitchell F. Brecher
Debra McGuire Mercer
GREENBERG TRAURIG, LLP
2101 L Street, NW
Suite 1000
Washington, D.C. 20037
brecherm~gtlaw.com
mercerdm~gtlaw.com
Telephone: [phone]
Facsimile: [phone]
TracFone's agent of service is:
Corporate Creations Network Inc.
2219 N. Curtis Road
Boise, ID 83706
contactus~corpcreations.com
Telephone: [phone]
Facsimile: [phone]
TracFone's Application 3
TracFone provides service through a "virtual network" consisting of services obtained
from numerous licensed operators of wireless networks. TracFone has provided CMRS service
throughout the State of Idaho continuously for the past ten years. In Idaho, TracFone obtains
service from several underlying carriers, including AT&T Mobility, T-Mobile, and Verizon
Wireless. TracFone's arrangements with these providers enable it to offer services wherever any
of those providers offer service in the State of Idaho. With more than eleven milion customers
nationwide, TracFone is the leading provider of prepaid wireless service in the United States.
TracFone, through its arrangements with its underlying carriers, has the ability to provide
all services and functionalities supported by the universal service program, as detailed in Section
54.l01(a) of the Federal Communications Commission ("FCC") Rules (47 C.F.R. § 54.l01(a))
and ETC Checklist ~ A.2 throughout Idaho. Upon designation as an ETC, TracFone wil make
available to consumers a Lifeline offering which wil provide consumers with all of the
functionalities and features currently provided by TracFone to existing customers. TracFone wil
provide Lifeline service to qualifying customers requesting these services pursuant to the
universal service program and in accordance with 47 C.F,R. § 54.202(a)(l).
TracFone's Lifeline offerings wil differ from other ETCs' Lifeline programs in several
very important respects. For one thing, TracFone wil offer low income consumers the
convenience and portability of wireless services. TracFone believes that many Lifeline-eligible
consumers wil take advantage of the opportunity to obtain subsidized wireless service, In
addition, unlike any other ETC's Lifeline programs, TracFone's Lifeline service wil provide
quantities of wireless usage at no charge to the consumer. Stated simply, TracFone's Lifeline
service wil be free! Typically, Lifeline programs provide participating consumers with
discounts below carriers' standard rates. However, paricipating customers stil must pay the
TracFone's Application 4
discounted rates and face service disconnection if they fail to pay the amounts owed. For
example, if a provider's standard monthly charge is $30.00 and the Lifeline customer receives a
$10.00 discount funded by the USF, the customer stil receives an invoice for $20.00, plus
additional charges incurred during the biling period. TracFone's Lifeline customers wil also
receive a free wireless handset. Thus, TracFone's Lifeline customers wil be able to initiate and
receive calls from their wireless phones while incurring no activation or usage charges.
TracFone's Lifeline plan is described at Section I1.B of this Application.
Indeed, even without classification as an ETC, TracFone currently operates in accordance
with the spirit of universal service. Because TracFone utilizes the networks of many licensed
CMRS providers, TracFone service is available virtally nationwide (including throughout the
State ofIdaho). Moreover, TracFone service is available at nationally-uniform rates. TracFone
service is priced the same at all locations in Idaho, and throughout the United States.
II. TracFone Meets the Requirements For Designation as an Eligible
Telecommunications Carrier to Serve the Designated Areas in the State of Idaho.
Section 254( e) of the Communications Act provides that "only an eligible
telecommunications carrier designated under section 214( e) shall be eligible to receive specific
federal universal service support." Section 214(e)(2) of the Communications Act provides that a
State commission "shall . . . upon request designate a common carrier that meets the
requirements of paragraph 1 (of Section 214(e)) as an eligible telecommunications carrier for a
service area designated by the State commission."
As demonstrated below, and as set forth in the Declaration ofF.J. Pollak, TracFone's
President and Chief Executive Offcer, Exhibit 3, TracFone meets the requirements for ETC
designation by the Commission pursuant to Section 214( e )(2) of the Communications Act and
the ETC Checklist. TracFone complies with the standards established by the FCC for
TracFone's Application 5
determining whether applicants for ETC status serve the public interest.4 TracFone recognizes
that Section 214( e)(1 )(A) of the Communications Act states that ETCs shall offer services, at
least in part, over their own facilities and that Section 54,201(i) of the FCC's Rules (47
C.F.R. § 54.201(i)) prohibits state commissions from designating as an ETC a
telecommunications carrier that offers services exclusively through the resale of another
carrier's services, However, as described at Section II.B of this Application, on June 8, 2004,
TracFone fied with the FCC a petition requesting that the FCC exercise its forbearance authority
under Section 10 of the Communications Act (47 U.S.C. § 160) with respect to the facilties-
based service requirement. 5 The FCC granted the petition for forbearance in an Order dated
September 8, 2005.6 In an Order dated April 11, 2008, the FCC granted all of TracFone's
pending petitions for designation as an ETC, subject to the conditions set forth in the TracFone
Forbearance Order. 7
4 See Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371, ~~
40-43 (2005).
5 See TracFone Wireless, Inc, Petition for Forbearance, CC Docket No. 96-45, filed June 8,
2004, as amended by TracFone Wireless, Inc. Amendment to Petition for Designation as an
Eligible Telecommunications Carrier in the State of Florida, CC Docket No. 96-45, fied August
16, 2005 and TracFone Wireless, Inc. Clarification of Petition for Forbearance, CC Docket No.
96-45, fied September 24,2004 ("Petition for Forbearance").
6 Petition of TracFone Wireless, Inc. for Forbearance from 47 USC § 214(e)(1)(A) and 47 CFR §
54.201(i), 20 FCC Rcd 15095 (2005) ("TracFone Forbearance Order"). A copy of the TracFone
Forbearance Order is attached as Exhibit 4.
7 In the Matter of Federal-State Joint Board on Universal Service: TracFone Wireless, Inc.
Petition for Designation as an Eligible Telecommunications Carier in the State of New York et
aI., 23 FCC Rcd 6206 (2008) (granting TracFone's ETC Petitions for Alabama, Connecticut,
Delaware, District of Columbia, Massachusetts, New Hampshire, New York, North Carolina,
Pennsylvania, Tennessee, and Virginia) ("TracFone ETC Order"). A copy of the TracFone ETC
Order is attached as Exhibit 5,
TracFone's Application 6
A. The Idaho Public Utilties Commission Has Jurisdiction to Designate
TracFone as an ETC.
Section 214(e )(2) of the Communications Act authorizes state commissions, such as the
Idaho Public Utilities Commission, to designate ETC status for federal universal service
puroses.8 Indeed, "state commissions have the primar responsibility for the designation of
eligible telecommunications carriers under Section 214(e)(2).',g Although Section 332(c)(3)(A)
of the Communications Act prohibits states from regulating the entry of or the rates charged by
any provider of commercial mobile service or any private mobile service, this prohibition does
not allow states to deny wireless carriers ETC status.
10 Therefore, the Idaho Public Utilities
Commission is authorized to designate TracFone as an ETC. In fact, the Commission has
designated wireless carriers as ETCs.1 1
Section 214(e )(2) of the Communications Act provides that a State commission shall
designate a common carrier as an ETC, if the carrier meets the requirements of Section
214(e)(1). Section 214(e)(I) requires a carrier designated as an ETC to offer the services that are
supported by Federal universal service support mechanisms using its own facilties or a
combination of its own facilties and resale of another carrier's services and to advertise the
availability of such services and the related charges using media of general distribution. As
8 See Federal-State Joint Board on Universal Service, First Report and Order, 12 FCC Rcd 8776,
8858-59, ~ 145 (1997) ("USF Order").
9 Federal-State Joint Board on Universal Service, Twelfh Report and Order and Further Notice
of Proposed Rulemaking, 15 FCC Rcd 12208, ~ 93 (2000),
10 USF Order, at 8858-59, ~ 145.
i i See In the Matter of the Petition of Edge Wireless, LLC for Designation as an Eligible
Telecommunications Carrier under Section 47 U.S.C. § 214(e)(2), Order No. 30360, Case No.
EDG-T-07-01 (Idaho Pub. Utilities Comm'n: July 2, 2007).
TracFone's Application 7
discussed in Section II.D. of this Application, TracFone will advertise the availability of its
Lifeline plan and the associated charges using media of general distribution.
As noted above, the FCC decided to forbear from applying the facilities-based
requirement for ETCs to TracFone. Section 10(e) of the Communications Act (47 U.S.C. §
160(e)) provides: "(a) State commission may not continue to apply or enforce any provision of
this chapter that the (Federal Communications) Commission has determined to forbear from
applying under subsection (a) ofthis section." As such, the Idaho Public Utilities Commission is
required by Section 10(e) to act in accordance with the FCC's TracFone Forbearance Order, and
therefore, may not apply the facilities-based requirement to TracFone, Indeed, eleven state
utilty commissions already have complied with the FCC's Forbearance Order and have
designated TracFone as an ETC in those states.
12
B. TracFone Wil Provide Service Through Resale.
In the TracFone Forbearance Order, the FCC granted TracFone's Petition for
Forbearance subject to certain conditions. The FCC explained that requiring "TracFone, as a
wireless reseller, to own facilities does not necessarily further the statutory goals of the low-
income program, which is to provide support to qualifying low-income consumers throughout
the nation, regardless of where they live."13 The FCC also stated that grant of TracFone's
petition for forbearance "serves the public interest in that it should expand paricipation of
12 State utility commissions in the following states have designated TracFone as an ETC:
Florida, Georgia, Ilinois, Louisiana, Maine, Maryland, Michigan, Missouri, New Jersey, Ohio,
Texas, West Virginia and Wisconsin. A list of the state utility commission orders is attached as
Exhibit 6.
13 TracFone Forbearance Order, ~ 23.
TracFone's Application 8
qualifying consumers" in the under-utilized low-income program.14 The low income program
supported by the Universal Service Fund includes the Lifeline program.
The FCC's grant of forbearance is subject to the following conditions: (a) TracFone
providing Lifeline customers with basic 911 and enhanced 911 ("E911") access regardless of
activation status and availabilty of prepaid minutes; (b) TracFone providing its new Lifeline
customers with E911-compliant handsets and replacing any existing customers' non-compliant
handsets at no additional charge; (c) TracFone complying with conditions (a) and (b) as of the
date it provides Lifeline service; (d) TracFone obtaining a certification from each Public Service
Answering Point ("PSAP") where TracFone provides Lifeline service confirming that TracFone
complies with condition (a); (e) TracFone requiring its customers to self-certify at the time of
service activation and annually thereafter that they are the heads of the households and receive
Lifeline-supported service only from TracFone; and (t) TracFone establishing safeguards to
prevent its customers from receiving multiple TracFone Lifeline subsidies at the same address,
The FCC required TracFone to describe how it would implement each of these
conditions. In October 2005, TracFone described to the FCC how it would comply with each of
the FCC's stated conditions. TracFone committed to providing all Lifeline customers with
access to basic and E911 service even if the customer has no remaining prepaid minutes on his or
her handset. TracFone further represented that it wil provide new Lifeline customers with an
E911-compliant handset and wil replace any existing customers' non-E911-compliant handsets
with a compliant handset free of charge at the time such customers enroll in Lifeline. TracFone
also stated that its Lifeline enrollment forms wil require each applicant to certify under penalty
of perjury that he or she is the head of the household and that he or she receives Lifeline service
14 Id. ~ 24.
TracFone's Application 9
only from TracFone. In addition, TracFone explained that its enrollment form wil require each
applicant to list a primary residential address which TracFone wil use to check its customer
records to ensure that the applicant is not receiving Lifeline service for more than one handset
associated with a particular address, TracFone also wil verify annually that its Lifeline
customers are stil heads of households and that they only receive Lifeline service from
TracFone, In the TracFone ETC Order, the FCC approved TracFone's plan for complying with
those conditions,l5
The PSAP certification condition imposed by the FCC was diffcult to implement and
resulted in delaying the availabilty of TracFone's SafeLink Wireless(ß Lifeline service in
several jurisdictions. On November 21,2008, TracFone petitioned the FCC to modify the PSAP
certification condition. On March 5, 2009, the FCC issued an Order granting TracFone's request
to modify the requirement that TracFone obtain a certification from each PSAP where TracFone
provides Lifeline service confirming that it provides its customers with access to basic and E911
service.16 The FCC modified the PSAP certification to require the following: TracFone must
stil request such certification from each PSAP within its Lifeline service area; however, if
within 90 days of TracFone's request, a PSAP has not provided the certification and the PSAP
has not made an affirmative finding that TracFone does not provide its customers with access to
911 and E911 service within the PSAP's service area, TracFone may self-certify that it meets the
basic and E911 requirements.
C. TracFone Offers All Required Services and Functionalities.
TracFone offers, or wil offer upon designation as an ETC in Idaho, all of the services
15 TracFone ETC Order, ~ 23.
16 Federal-State Joint Board on Universal Service, et aI., 24 FCC Rcd 3375 (2009) (attached as
Exhibit 7).
TracFone's Application 10
and functionalities required by Sections 54.101(a) and 54.202(a) of the FCC's Rules (47 C.F,R.
§§ 54.101(a), 54.202(a)) and ETC Checklist, ~ A.2 including the following:
17
1. Voice Grade Access to the Public Switched Network.
Voice grade access to the public switched telecommunications network ("PSTN") means
the ability to make and receive traditional voice phone calls between the approximately 500
Hertz and 4,000 Hertz for a bandwidth of approximately 3500 Hertz.
18 The voice grade access
provided by TracFone enables a user of telecommunications services to transmit voice
communications, including signaling the network that the caller wishes to place a call, and to
receive voice communications, including receiving a signal indicating there is an incoming call,
2. Local Usage.
As part of the voice grade access to the PSTN, an ETC must provide local callng
pursuant to 47 C.F.R. § 54.101(a)(2). TracFone provides subscribers the ability to send and
receive local phone calls wherever it provides service. Moreover, local usage is included in
TracFone's callng plan. FCC Rule 54.202(a)(4) requires an ETC applicant to "demonstrate that
it offers a local usage plan comparable to the one offered by the incumbent LEC in the service
areas for which it seeks designation." The FCC has explained that an ETC applicant's local
usage plans should be reviewed on a case-by-case basis to ensure that each ETC provides a local
usage component in its universal service offering that is comparable to the plan offered by the
17 The FCC's Rules require an applicant for ETC status to demonstrate that it satisfies network
build-out and improvement requirements (47 C.F.R. § 54.202(a)(1)(ii)) and to provide a
certification that it acknowledges that the FCC may require it to provide equal access to long
distance carriers in the event that no other ETC is providing equal access within the service area
(47 C.F.R. § 54.202(a). In the TracFone ETC Order, the FCC determined that TracFone was not
required to make these showings because it is a pure reseller. See n.35, TracFone maintains that
it also is not required to make these showings for this Application.
18 See USF Order, at 8810-11, ~~ 63-64; see 47 C.F.R. § 54.101(a)(1),
TracFone's Application 11
incumbent LEC in the area.19 Importantly, the requirement is that ETCs offer local usage plans
"comparable" to those of the ILEC, not that the plans be identicaL. The FCC has not adopted any
minimum local usage requirements.2o As a designated ETC, TracFone wil comply with any
applicable minimum local usage requirements adopted by the FCC,
Wireless and wire line services, though increasingly substitutable for each other, are
different from each other and they are priced differently, Unlike any ILECs' or other ETCs'
Lifeline plans, TracFone's Lifeline offerings wil go beyond those of other providers in a very
important respect: TracFone's Lifeline customers wil receive as part of Lifeline service 67
minutes of free wireless service. That is, Lifeline customers wil be able to use TracFone's
service to initiate and receive wireless callng -- local and long distance -- with no charge to the
customers.
3. Dual Tone Multi-Frequency ("DTMF") Signaling or Its Functional
Equivalent.
DTMF signaling allows carriers to provide expeditious call set-up and call detail
information and enables modem usage.21 The FCC permits carriers to provide signaling that is
functionally equivalent to DTMF to satisfy the DTMF requirement. All telephone handsets
provided by TracFone are DTMF-capable as required by 47 C.F.R. § 54.101(a)(3).
4. Single-party service or Its Functional Equivalent.
Single-party service means that only one party wil be served by a subscriber line or
19 Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371, 6385, ~
33 (2005).
20 Id. ~ 32.
21 USF Order, 12 FCC Rcd at 8814, ~ 71.
TracFone's Application 12
access loop in contrast to a multi-party line.22 TracFone provides customers with single-party
access for the duration of every phone call in accordance with 47 C.F.R. § 101(a)(4). TracFone
does not provide "multi-party" or "party line" services.
5. Access to 911 and E911 Emergency Service.
The FCC has declared that access to emergency services is essentiaI.23 TracFone
provides universal access to the 911 system for its customers. TracFone has implemented and
wil continue to implement enhanced 911 ("E911") services consistent with the FCC's Rules,
including 47 C.F.R. § 54.101(a)(5), and orders when such services are made available by the
carriers from whom TracFone purchases services. In particular, TracFone wil fully comply with
the FCC's E911 requirements applicable to wireless resellers.24 Pursuant to the FCC's E911
Order, providers that use other carriers' facilities to provide wireless voice service to customers
have an obligation to comply with the FCC's E911 rules "to the extent that the underlying
facilities..based licensee has deployed the facilities necessary to deliver enhanced 911
information to the appropriate PSAP (public service answering point).,,25 TracFone wil make
available access to E911 service in accordance with applicable FCC requirements. In addition,
in accordance with 47 C.F.R. § 54.202(a)(2), TracFone has the ability to remain fuctional in
emergency situations. As described in this Application, TracFone provides service in Idaho by
reselling services of underlying wireless network carriers, including AT&T Mobility, T -Mobile,
and Verizon Wireless, Those network operators have implemented state-of-the-art network
22 Id. at 8810, ~ 62.
23 Id. at 8815, ~ 72.
24 See Revision of the Commission's Rules to Ensure Compatibility With Enhanced 911
Emergency Callng Systems, Report and Order and Second Further Notice of Proposed
Rulemaking, 18 FCC Rcd 25340 (2003).
25 Id. at 25378-79, ~ 91.
TracFone's Application 13
reliabilty standards and TracFone and its customers benefit from their high standards.
Throughout its ten years of existence, TracFone's service reliability has compared favorably with
that of any facilities-based operator in the wireless telecommunications industry.
6. Access to Operator Services.
TracFone offers all of its customers access to operator services, in accordance with 47
C.F.R. § 54.l01(a)(6).
7. Access to Interexchange Service.
TracFone customers can use TracFone's services to complete toll calls as required by 47
C,F.R. § 54.101(a)(7). In fact, TracFone does not impose separate charges for interexchange
calls. Long distance callng is included in TracFone's service with no additional charge.
8. Access to Directory Assistance.
All TracFone customers receive access to directory assistance service through the
TracFone virtual network as required by 47 C.F.R. § 54.l01(a)(8). Specifically, all TracFone
customers, including those customers located in Idaho, have access to directory assistance
services provided by TracFone's vendors.
9. Toll Limitation for Qualified Low-Income Customers.
There is no need for TracFone to offer a toll limitation feature to qualifying low-income
customers. Since TracFone's service is a prepaid service, no customers wil be disconnected for
failure to pay toll charges or, for that matter, any other charges. TracFone treats long distance
minutes of use as any other usage and the customers are not charged separately for toll services.
Inasmuch as all TracFone services are prepaid there is no danger that low income customers wil
incur large charges for heavy toll (or other) callng and no risk that they wil be disconnected for
nonpayment. Since customers pay for the service in advance - they can use only what they
TracFone's Application 14
already have paid for or what service quantities they have been provided to them under the
Lifeline program. Thus, TracFone's prepaid services are especially beneficial to lower income
users since the consumers enjoy the ability to control or limit their charges for toll service (as
well as local service) in a manner that customers of traditional post-paid (biled in arrears)
services do not.
D. TracFone Wil Be Able to Serve the Designated Areas Within a Reasonable
Time.
TracFone provides service in Idaho by resellng service which it obtains from underlying
facilities-based providers. Each of those providers' networks are operational and are largely
built out. Thus, TracFone wil be able to commence offering its Lifeline service to all locations
served by any of its underlying carriers very soon after receiving approval from the Idaho Public
Utilities Commission. Indeed, it already serves those areas. The only delay wil be the time
needed to implement procedures and internal systems to offer the Lifeline program. Thus,
TracFone wil be able to provide Lifeline service to all qualified customers on a timely basis or
within a reasonable period of time in accordance with 47 C.F.R. § 54.202(a)(1).
E. Service Quality Commitments.
As a reseller of other carriers' wireless services, TracFone's service is of the same quality
and reliability as that of its underlying vendors. TracFone cannot assure the Commission that it
wil never experience service disruptions. Occasional dropped calls and inconsistent coverage
depending on atmospheric conditions are a fact of life in the wireless industry. TracFone
believes that its service is as reliable as that of any other wireless provider serving the Idaho
market. To demonstrate its commitment to high service quality, TracFone wil comply with the
CTIA - The Wireless Association(ß Consumer Code for Wireless Service in accordance with 47
TracFone's Application 15
C.F.R. § 54.202(a)(3). In addition, TracFone's Privacy Policy for its SafeLink Wireless(ß
Lifeline service is available to all customers on its website at http://ww,safelink.com and it is
attached as Exhibit 8.
F. TracFone Wil Advertise the Availabilty of Supported Services.
TracFone wil aggressively advertise the availability of its Lifeline service and the
associated charges using media of general distribution, in accordance with the requirements of
Section 214(e)(1)(A) of the Communications Act, Section 54.201(d)(2) of the FCC's Rules (47
C.F.R. § 54.201(d)(2)), and ETC Checklist, ~ A.3. TracFone plans to utilize such marketing and
outreach efforts as necessary and appropriate to ensure that as many eligible consumers as
possible avail themselves of TracFone's prepaid wireless Lifeline offering. TracFone
understands that it wil be competing with other ETCs in Idaho, including the incumbent local
exchange carriers, to be chosen by consumers to be their Lifeline service provider. TracFone
wil utilize traditional means for promoting the availability of its Lifeline program. These means
wil include print and broadcast advertising in media outlets most likely to reach consumers
eligible for Lifeline. These would include national publications as well as local and community
newspapers, and commercial broadcast stations, especially those stations whose programming is
targeted to significant lower income communities including, for example, Spanish language
stations in areas with significant Spanish-speaking populations. Examples of TracFone's
advertisements for SafeLink Wireless(ß Lifeline service are attached as Exhibit 9.
The Commission should be aware that TracFone has had previous experience marketing
Lifeline service and was profoundly successfuL. In October 2005, following the devastation
caused by Hurricane Katrina, the FCC established a special Lifeline program which enabled
wireless providers to be designated as ETCs to offer a one-time Lifeline service to persons in the
TracFone's Application 16
states of Louisiana, Mississippi, and Alabama who had been displaced by the hurricane.26
TracFone was one of the first providers to be designated as an ETC under the FCC's Hurricane
Katrina program. Within a period of several months, TracFone was able to enroll nearly 30,000
hurricane victims in its Lifeline program using marketing efforts similar to those proposed
herein, as well as other methods intended to address the special challenges of reaching out to
potential Lifeline customers who had lost their homes, and were residing in temporary locations -
- often far away from their home communities, TracFone believes that its advertising and
outreach efforts detailed above wil result in increased participation in the Lifeline program. The
Commission's grant of TracFone's ETC Application wil promote the important goal of
increasing Lifeline participation.
G. TracFone Wil Comply with the Lifeline Certifcation and Verifcation
Requirements in 47 C.F.R. § 54.410.
Section 54.410 of the FCC's Rules require ETCs to comply with certification of
eligibility and verification of continued eligibility requirements for Lifeline paricipation.
TracFone wil certify and verify consumer eligibility in accordance with the FCC's requirements
and with Commission rules that apply to ETCs seeking fuds from the federal USF. TracFone
wil petition this Commission for waiver of any rules that impose certification and verification
requirements that differ from the FCC's requirements.
H. TracFone Requests Designation Throughout Its Service Area in Idaho.
TracFone wil offer Lifeline service in all areas in Idaho that are served by AT&T
26 Federal-State Joint Board on Universal Service, 20 FCC Rcd 16883 (2005), Under the
Huricane Katrina Lifeline program, ETCs provided $130.00 in support to qualified customers in
the form of a free wireless handset and at least 300 free minutes. If the subscriber did not need a
handset, then the subscriber could opt instead for a Lifeline-supported package of greater than
300 minutes. Id. ~~ 13, 22.
TracFone's Application 17
Mobilty and T-Mobile. In the second quarer of2010, TracFone wil expand its Lifeline service
area to include the areas in Idaho served by Verizon Wireless. TracFone requests ETC
designation statewide in all exchanges to the extent that its underlying carriers, including
Verizon Wireless, have facilities and coverage. TracFone reiterates the fact that it is applying for
ETC designation solely to utilize USF funding to provide Lifeline service to qualified low
income consumers. It does not seek and wil not accept high cost support. Therefore, its
designation as an ETC wil cause no growth in the high cost portions of the USF and wil not
erode high cost support from any rural telephone company. The Commission may designate
TracFone as an ETC in non-rural areas that TracFone serves without redefining the service areas
of non-rural telephone companies. The Commission may designate TracFone as an ETC in rural
telephone company service areas upon a finding that such designation would serve the public
interest. 27
III. Designation of TracFone as an ETC in the State of Idaho Would Serve the Public
Interest.
As noted above, TracFone seeks certification as an ETC in areas served by rural
telephone companies, as well as in areas served by non-rural telephone companies.
Consequently, the Communications Act requires that the Commission determine that TracFone's
designation as an ETC would serve the public interest.28
The FCC has determined that "( d)esignation of competitive ETCs promotes competition
and benefits consumers in rural and high-cost areas by increasing customer choice, innovative
27 See 47 C.F.R. § 54.207(c).
2847 U.S.c. § 214(e)(2); see Federal-State Joint Board on Universal Service, 20 FCC Rcd 6371,
~ 42 (2005) ("We find that before designating an ETC, we must make an affrmative
determination that such designation is in the public interest, regardless of whether the applicant
seeks designation in an area served by a rural or non-rural carrier."); see also ETC Checklist, ~
A.4 (requiring a demonstration of public interest).
TracFone's Application 18
services, and new technologies.',29 This is paricularly applicable in the rural areas served by
TracFone within the State of Idaho -- areas that in most cases are not presently served by
competitive wireline carriers that could provide an alternative to the incumbent LECs.
Designation of TracFone as an ETC wil provide a valuable alternative to the existing
telecommunications services available in these areas. Those public interest benefits include
larger local calling areas, the convenience and security afforded by mobile telephone service, the
opportunity for customers to control their costs by purchasing in advance only the volumes of
service which they need and supplementing those quantities on an "as needed" basis after
exhausting their monthly supply of free service, and, availability of E911 service in accordance
with the FCC's E911 requirements. In addition, TracFone's inclusion of toll callng within its
callng plans wil enable consumers to avoid the risk of becoming burdened with large and
unanticipated charges for toll callng.
TracFone's SafeLink Wireless(ß Lifeline service offers important benefits that are
especially needed by low income Idaho residents in this time of economic downtur, As the
Commission is aware, the Dow Jones Industrial Average, a primar indicator of the health of the
economy, has substantially declined since 2008. Thus, the savings accounts upon which many
Idaho residents depend for emergencies and for retirement have been significantly eroded.
According to the United States Bureau of Labor Statistics, as of December 2009, Idaho
experienced an unemployment rate of 9.1 percent.30 These conditions have had a significant
impact on Idaho residents.
29 See Western Wireless Corporation Petition for Designation as an Eligible Telecommunications
Carrier in the State of Wyoming, Memorandum Opinion and Order, 16 FCC Rcd 48, 55 (2000).
30 Bureau of Labor Statistics, Local Area Unemployment Statistics,
http://ww.bls.gov/lau/home.htm. viewed on Februar 25,2009.
TracFone's Application 19
As noted above, the availability of a regular mobile telephone wil be critical to many of
those unemployed Idaho residents' efforts to search for other employment opportunities.
Without a mobile telephone, unemployed individuals face extreme diffculty in finding a job. A
mobile telephone allows individuals to be reached at any time and location and enables
unemployed individuals to respond to potential employers immediately. In addition, a mobile
telephone assists employed low-wage individuals by allowing those individuals to stay in contact
with employers, manage relationships with supervisors, and respond to requests to work
additional shifts or hours. TracFone's SafeLink Wireless(ß Lifeline program wil enable
thousands of Idaho residents, including many who have been adversely impacted by the failing
economy or job loss, to obtain a handset and wireless service, which would otherwise be
unavailable to them, to assist in emergency situations, facilitate job search efforts, and to
maintain contact with family members.
The dire economic situation facing an increasing number of Idaho residents indicates that
now, more than ever, low income individuals can greatly benefit from the advantages offered by
TracFone's SafeLink Wireless(ß Lifeline service. TracFone's SafeLink Wireless(ß Lifeline
service wil allow low income Idaho residents, including many who have been adversely
impacted by the failng economy or job loss, to have access to free wireless service to assist in
emergency situations, facilitate job search efforts, and to maintain contact with family members.
Designation of TracFone as an ETC will also provide an incentive to the incumbent LECs
serving those portions of the state to improve their existing networks in order to remain
competitive, resulting in improved services to consumers. Designation of TracFone as an ETC
wil also benefit consumers because support to services provided by TracFone wil help assure
that quality services are available at "just, reasonable, and affordable rates" as envisioned in the
TracFone's Application 20
Communications ACt.31
The FCC has identified factors to be considered in determining whether designation of an
additional ETC would serve the public interest. These factors require the Commission to weigh
whether the benefits of an additional ETC would outweigh potential harms. The factors to be
considered include: 1) the benefits of increased competitive choice; and 2) the unique
advantages of the applicant company's service offerings.32 As described in the following
paragraphs, TracFone meets these criteria.
A. The Benefits of Increased Competitive Choice.
The benefits to consumers of being able to choose from among a variety of
telecommunications service providers have been acknowledged by the FCC for more than three
decades.33 However, the benefits of competitive choice are especially valuable in situations in
which wireless providers like TracFone seek to provide Lifeline service to low-income
households in rural communities and elsewhere. As the FCC recognized in Highland Cellular,
some households in rural communities do not have access to the public switched network
through the incumbent local exchange carrier. Moreover, the availability of a wireless
competitive alternative benefits those rural consumers who often must drive significant distances
to work, schools, stores, and other community locations.34 TracFone's prepaid wireless service
alternative wil provide consumers with convenient and affordable telecommunications service,
both from their residences and when they are away from their homes.
31 See 47 U.S.C. § 254(b)(1).
32 See 47 C.F.R. § 54.202(c).
33 See, ~, Specialized Common Carier Services, 29 FCC2d 870 (1971).
34 Highland Cellular, Inc. Petition for Designation as an Eligible Telecommuncations Carier in the
Commonwealth of Virginia, 19 FCC Rcd 6422, ~ 23 (2004).
TracFone's Application 21
In addition, designating TracFone as an ETC wil increase the competitive choices for
low-income Idaho households. The Universal Service Administrative Company ("USAC"), the
administrator of the federal USF, tracks ETCs in every state and maintains data on the amounts
of Lifeline support received by each ETC. Recent data published by USAC, reveals that while
there are several wireless ETCs in Idaho, only one of them actually provides Lifeline service to
low-income Idaho households.
In Idaho, the following wireless carriers have been designated as ETCs: Inland Cellular,
Syringa Wireless (includes ClearTalk), CTC Telecom dba Snake River PCS, Alltel (now Verizon
Wireless), and Edge Wireless (AT&T Mobilty). USAC's most recent report to the FCC
indicates that of the companies listed, only ClearTalk and Syringa Wireless (which are now one
company owned by Syringa Wireless) are receiving any Lifeline support.35 Some of the wireless
ETCs are relying on their ETC status solely to receive high cost support, i.e., Edge Wireless and
Inland Cellular.36
The existence of only one other wireless ETC providing Lifeline service anywhere in
Idaho provides no meaningful competitive choice to Idaho consumers. While there are other
wireless ETCs, they are not receiving any Lifeline support, and as such are not providing
Lifeline service to any low-income Idaho consumers, Moreover, the one wireless ETC that has
35 See USAC FCC Filings, Second Quarter Appendices - 2010, LI05 - Annual Low Income
Amounts by State and Company through 3Q2009 (excerpt attached as Exhibit 10)
36 See USAC FCC Filings, Second Quarter 2010 Appendices - 2010, HCOIA - High Cost
Support Projected by State by Study Area - 2Q20 10 (excerpt attached as Exhibit 11).
TracFone's Application 22
Lifeline customers only serves approximately 1,600 Lifeline customers.37 TracFone's
experience operating as a designated ETC in many other states indicates that its SafeLink
Wireless(ß Lifeline service is an attractive alternative to many low-income consumers.
TracFone believes that many consumers, including qualified Lifeline customers, view the
portabilty and convenience of wireless service as a modern necessity, not a luxury. Parents need
to be able to reach their children wherever they may be (and vice versa); persons seeking work
need to be reachable by potential employers; persons need to call for emergency assistance while
away from home. According to FCC data, Idaho's statewide Lifeline participation rate is only
22.1 percent of eligible households.38 In other words, nearly eighty percent of low income Idaho
households which are eligible to participate in Lifeline are not doing so. TracFone expects that
many qualified low-income Idaho consumers wil elect to participate in Lifeline, if a wireless
option is available.
B. Unique Advantages of TracFone's Service Offerings.
As described elsewhere in this Application, TracFone's entire business model is
predicated on providing easy-to-use, pay-as-you-go, affordable wireless telecommunications
service to consumers to whom wireless service would be otherwise unavailable or unaffordable.
TracFone offers consumers an opportunity to acquire wireless service using state-of-the-art
37 Syringa Wireless and ClearTalk received a total of $193,116 in Lifeline support in 2008,
Assuming that the amount was spread evenly throughout the year and that the maximum Lifeline
support amount of $10.00 per customer per month was received, the companies had 1,609
customers (193,116 divided by 12, and then taking that quotient and dividing it by 10 equals
1,609).
38 See In the Matter of Lifeline and Link-Up, Report and Order and Further Notice of Proposed
Rulemaking, FCC 04-87 (April 29, 2004) Table 1.A. The Universal Administrative Company
estimates that in 2008 the participation rate for eligible households in Idaho was between twenty
and fifty percent (20-50%). See 2008 Participation Rates by State, available at
http://ww . usac.org/li/ about/paricipation-rate-information.aspx.
TracFone's Application 23
handsets and such features as caller ID, voice mail, text messaging, and long distance calling
without toll charges. Because TracFone's service requires no term contracts, no minimum
service periods or volume commitments, no credit checks, and no early termination fees, the
service is available to everyone - irrespective of age; irrespective of residency; irrespective of
creditworthiness. Moreover, TracFone's prepaid service is unique in that usage information and
remaining balance information is stored in the handsets and is thus available to consumers on a
"real-time" basis. TracFone's prepaid service offers Lifeline-qualified customers access, quality
and price. None of the incumbent providers nor those other non-incumbent ETCs serving the
areas covered by TracFone in Idaho offer service to consumers under comparable conditions.
TracFone wil offer the following Lifeline plan to its customers. Under the plan,
TracFone's customers wil receive free monthly service, free airtime each month, and a free
handset. A description of the Lifeline plan is as follows:
TracFone SafeLink Wireless(ß Lifeline Plan
Each TracFone Lifeline customer wil be provided with 67 minutes of use each month.
This amount of free minutes of airtime is based on the amount of federal USF low income
support available pursuant to the rules of the FCC. TracFone calculated the number of minutes
each Lifeline customer wil receive per month to ensure that each Lifeline customer receives the
full value of the Lifeline discount to which he or she is entitled, based upon the amount of the
Lifeline discount required by the Commission. The free minutes wil be automatically added to
each customer's prepaid account balance each month. Unused minutes wil roll over from
month-to-month so long as the customer remains enrolled in the Lifeline program. The free
minutes may be used for calls to or from anywhere in the United States -- local or long distance,
intrastate or interstate. They may also be used for calls to more than 100 international
TracFone's Application 24
destinations, and there are no roaming charges, which enables TracFone's Lifeline customers to
use the service anywhere. In addition, Lifeline customers wil be allowed to purchase additional
usage cards at a rate of $0.20 per minute. TracFone pledges that one hundred percent of the
federal Lifeline support it receives wil be flowed through to Lifeline customers in the form of
free usage.39 The terms and conditions governing SafeLink Wireless(ß Lifeline service are
attached as Exhibit 12.
TracFone wil make available handsets to its participating Lifeline customers at no
charge. TracFone's average cost of purchasing handsets is above $50.00 per unit. TracFone wil
pre-activate handsets provided to qualified customers,40 enroll the customers in the Lifeline plan,
and allocate the appropriate number of minutes of usage to the customers' accounts. The
handsets wil be delivered to customers upon enrollment in the program with the first month's
free usage allotment already activated. The phones wil remain active for one year even if no
additional usage is purchased. Low income customers who have limited access to
communications sources wil gain immediate and free access to wireless telecommunications
service simply by turning on the handsets provided by TracFone.
TracFone's Lifeline service is unique in that it wil be free to qualified subscribers and
wil include a free E911-compliant wireless handset. The Lifeline programs offered by other
ETCs in Idaho provide participating consumers with discounts below carriers' standard rates.
However, enrolled Lifeline customers stil must pay the ETC's discounted charges, as well as
39 TracFone reserves the right to modify its Lifeline plan based on changes in market conditions
or the amount of USF support available. However, under the Lifeline plan, 100 percent of
federal and state required Lifeline support wil be provided to Lifeline customers in the form of
free usage.
40 Customers who do not qualify for Lifeline must purchase a handset and then activate it by
calling TracFone's Customer Care department from a landline telephone or by completing a
form on TracFone's website.
TracFone's Application 25
purchase telephone equipment necessary to use those discounted services. In addition, unlike
some wireless ETCs in Idaho, TracFone has no activation charge. Given Idaho's low Lifeline
paricipation rate, the existence of only one wireless ETC that has any Lifeline customers, and
the unique benefits of TracFone's SafeLink Wireless(ß Lifeline service, the public interest would
be served by the Commission's designation of TracFone as an ETC for the purpose of providing
Lifeline service.
C. Impact on the Universal Service Fund.
The FCC has considered the impact on the USF when determining whether to grant
TracFone's petitions for designation as an ETC.41 Whatever impact classification of TracFone as
an ETC wil have on the universal service fund wil be negligible. TracFone seeks ETC
designation solely to enable it to offer Lifeline benefits to eligible low income consumers.
TracFone does not seek access to funds from the federal Universal Service Fund for the purose
of obtaining high cost support. As noted in the FCC's TracFone Forbearance Order, "the
potential growth of the fund associated with high-cost support distributed to competitive ETCs"
is not relevant to carriers seeking support associated with the low-income program.42 In 2007,
low-income support accounted for only 11.8 percent of the distribution of the total universal
service fud, while high-cost support accounted for 61.6 percent.43 "Ary increase in the size of
the fund (associated with granting TracFone's ETC application) would be minimal and would be
outweighed by the benefit of increasing eligible participation in the Lifeline program, furthering
41 TracFone ETC Order, ~ 16 n.47.
42 TracFone Forbearance Order, ~ 17.
43 Wireline Competition Bureau, Federal Communications Commission, Trends in Telephone
Service, Table 19.1 and Chart 19.1 (2008),
TracFone's Application 26
the statutory goal of providing access to low-income consumers.',44 Indeed, the FCC has
acknowledged the benefits of designating a carrier as an ETC, when the carier only seeks to
paricipate in the USF's low income programs. The FCC included the following statement in a
May 1, 2008 Order in which it established an interim cap on high-cost support:
Moreover, there are advantages to obtaining and maintaining an ETC designation
regardless of whether a competitive ETC receives high-cost support. In
particular, the ability of competitive ETCs to receive low-income universal
service support shows value in obtaining and maintaining ETC designation
separate and apart from high-cost support. Indeed, TracFone Wireless, Inc.
(TracFone) sought forbearance from section 214(e)(1) of the Act so that it could
seek designation as an ETC eligible only to receive universal service Lifeline
support. TracFone took this step because "offering prepaid plans which make
wireless service available to low income users... has been a critical component of
TracFone's business strategy since the company's inception." Other ETCs may
have similar business strategies. Further, by offering Lifeline and Link Up
service, a competitive ETC may attract new subscribers that may not otherwise
have taken telephone service. This would increase a competitive ETC's base of
subscribers and, consequently, lower its average cost of serving all of its
subscribers. Moreover, competitive ETCs may be eligible for separate universal
service support at the state leveI.45
Furthermore, it is important to recognize the differences between low income funding for
the Lifeline program and high cost funding. With Lifeline, ETCs only receive USF support for
customers they obtain. If TracFone acquires Lifeline customers currently served by other ETCs,
TracFone wil gain the Lifeline support for those customers, but the ETCs losing the customers
wil lose the support. TracFone wil only increase the amount of USF Lifeline funding in
situations where it obtains new Lifeline customers, i.e., customers not currently enrolled in other
ETCs' Lifeline programs. In contrast, with high cost support, when new ETCs enter the market
44 TracFone Forbearance Order, ~ 17.
45 High-Cost Universal Service Support, et aI., Order, WC Docket No. 05-337, CC Docket No.
96-45, FCC 08-122 (released: May 1, 2008), ~ 30.
TracFone's Application 27
and capture customers from the existing ETCs, both the incumbent ETCs and the new ETCs
receive high cost support -- based on the incumbent LECs' costs, thereby increasing the size of
the USF.
D. Designation of TracFone as an ETC Wil Benefit the Public Interest of
Consumers Throughout Idaho.
In addition to meeting the public interest factors, TracFone, if designated as an ETC, wil
also serve the public interest because TracFone wil paricipate in the Lifeline program as
required by the FCC's Rules and wil otherwise comply with all FCC and Commission Rules
governing universal service programs, which are designed to ensure that the public interest
standards of the Communications Act are achieved. As a national leader in prepaid wireless
services, TracFone has done much to advance the availability of wireless service for those
portions of the population for whom wireless service is otherwise unavailable or, if available, is
too costly and requires term duration and volume commitments which are beyond the means of
many consumers.
Moreover, designation of TracFone as an ETC wil serve the public interest by further
promoting the extensive role TracFone plays in the provision of communications services to
lower income and lower volume users, transient users, as well as other consumers who either
choose not to enter into long-term service commitments or who are unable to meet the credit
requirements necessary to obtain service from other wireline or wireless carriers. TracFone's
"pay-as-you-go" wireless service enables consumers to enjoy the convenience and security of
wireless telecommunication without being subject to extensive credit reviews and long-term
service commitments which historically have limited the availability of wireless service to many
Americans, including many Idaho residents. For all the reasons described herein, designation of
TracFone as an ETC wil serve the public interest.
TracFone's Application 28
CONCLUSION
Based on the foregoing, TracFone contends that the requirements for eligibility for
designation as an ETC have been met. Accordingly, TracFone requests that the Idaho Public
Utilities Commission promptly grant its application for designation as an eligible
telecommunications carrier.
Respectfully submitted,
~Mitchell F. Brecher
Debra McGuire Mercer
GREENBERG TRAURIG, LLP
2101 L Street, NW
Suite 1000
Washington, D.C. 20037
Telephone: [phone]
Facsimile: [phone]
brecherm~gtlaw.com
mercerdm~gtlaw.com
Counsel for TracFone Wireless, Inc.
February 26, 2010
TracFone's Application 29
Exhibit 1
450 N 4th Stet
PO Box 83720
Boise 10 83720-0080
Phone: [phone]
Fax: [phone]Ben Ysurs
Secretary of State
sosinfo~sos.ldaho.gov
www.sos.idaho.gov
STATE OF IDAHO
SECRETARY OF STATE
ANNUAL REPORTING REQUIREMENTS
Each corporation. limited liabilty company, limited partnership and limited liabilty partnership authorzed to
transact business in this state must deliver to the secretary of state for filing an annual report on a form provided by
this offce,
If an annual report is not received on or before the due date, the following wil occur:
1) Domestic corporations and limited liabilty companies wil be subject to administrative dissolution;
2) Foreign corporations wil be subject to revocation of its authority to do business in Idaho;
3) Foreign limited liability companies wil be subject to administrative cancellation;
4) Limited partnerships wil be subject to administrative cancellation / termination.
S) Limited liability partnerships wil lose their limited liabilty status and revert to general partnerships:
The form must be executed by a person authorized by the company, indicating such capacity, setting forth the
name of the company, the state or countr under whose law it is incorporated/organized. along with the names
and addresses of its current registered agent and offcers.
The first. and all subsequent annual report shall be delivered to the secretary of state each year before the
end of the month during which a corporation or limited liabilty company was initially authorized to transact
business. (Please note: the first annual report is not due until 1 year after the initial filing date.)
A post card will be sent to notif you that your annual report is due. There is no filing fee if the annual report is
received in this ofce by the date it Is due. A post mark date is not suffcient.
A sample of the post card and a generated annual report is included on the back of this letter.
File your annual report electronically via our website: ww.sos.idaho,goy or request a mall in report form. Please
follow the instructions carefully when entering the data. The annual report wil only be available for filing 60 days
prior to the due date.
If you have any questions or need further assistance, please do not hesitate to contact this offce at (208) 334-
2301.
Very truly yours.
COMMERCIAL DIVISION
IDAHO SECRETARY OF STATE'S OFFICE
Enclosures: cited
Go online to file your
reort electronically Your Annuii Rert for the busnes. listed belo Is due.When you reach the_.. You can lJe online or by mill.
business entity page ~he numbers below to IIle online
on the website, you'll at:wwSO!dahpl9
find a link to file your CUlIPANY N4MI!
annual report. Your ymm' FIIJHG II PIN II
entity filing number ancL Emili or call the Secretary of State'.
PIN are your logon. .. offce to reue.t a mall-In report.
. (2081 334-2301 orYour PIN number will .0.lnfodiIo.,ldlho.BOY
change each year. DL'J P4TE
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your company add res
here, if necessary.
Enter the names and
business addresses
president, secretary a
directors (corporation
managers/members
(LLCs), genElral part
(LPs) or at least 2
parters (LLPs) In th
area.
Post Card Notice
BENYSURS
SECRETARY OF STATE
po BOX 83720
BOISE 1083720-080
PRESFIIl.c
US POAGE PAlO
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PERMIT NO I
CUMP4"Y N4MI!
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rike out and change
ur Regisre Agent
re, if necessary. RA .
ust be at a physical
dress in Idaho.
newly appointed RA
ust sign here.
nual Report must be
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State of Idaho
I I
CERTIFICATE OF AUTHORITY
OF
TRACFONE WIRELESS, INC.
File Number C 185910
I, BEN YSURSA, Secretary of State of the State of Idaho, hereby certify that an
Application for Certificate of Authority, duly executed pursuant to the provisions of the
Idaho Business Corporation Act, has been received in this office and is found to
conform to law.
ACCORDINGLY and by virtue of the authority vested in me by law, I issue this
Certificate of Authority to transact business in this State and attach hereto a duplicate of
the application for such certificate.
Dated: January 25,2010
~~
SECRETARY OF STATE
By
202
APPLICATION FOR CERTIFICATE
OF AUTHORITY (For Profit)
(InstrctlDns on Back of Application)
!FaILED EIFFECTOVE . ~
'LVI\\\ J~ ~Î :í\~
. ~ti~.,\ v -'u
s\:C0;,L I'e \w \D~\'': \f:~í:
The undersigned Corporation applies for a Cørtificate of Authority anå states as follows:
1. The m¡¡mii ofthe cQrporation Is:
TracFone Wireless, Inc.
2. The name which It shall use in Idaho is: TracFone Wireless, Inc.
3, It is Incorporated under the laws of: Delaware
4. Its date of incorporation is: 5/912007
5, The address of its principal offce Is:
9700 N,W. 112th Avenue Miami, FL 33178
6, The address to which oorTspondence should be addressed, If diffrent from Item 5, Is:
7. Th~street¡¡ddressofìts registered ofce In Idaho is;, 2219 N. Curtis Road Boise, 1083706
and Its registered agent in Idaho at that address is: Corporate Creations Network Inc,
8. The names and respective business addresses of its directors and offcers are:
Name Tite 8llsiness Addreu
Frederick J. Pollak Olrector/Preldent 9700 N.W. 112th Ave Miami, FL 33178
Alejandro Cantu Jimenez Director 9700 N.W. 112th Ave Miami. FL 33178
Carlos Garca Moreno Director 9700 N.W, 112th Ave Miami, Flo 33178
Gustavo BlancO OirecorlTreasurer 9100 N,W. 112th Ave MIami, FL 33178
Richard B. Salzman Secretry 9700 N,W, 112th Ave Miami, FL 33176
Dated' ( t / ll 109. r i //...?V ..-=-~ -:
S\gnati-"'" ..' .¿';,.~ -'-'-,.j
Typed Name: f"t(c0ç/ç ,T. tvl (al:
Capacity: P t? 15 cl J2A1o -(-
(The signer must be a diru or an offr of the CDlJortian 1
Cuslomor Acet # :
(,' Ulnø pre-pll ICOI
Secretary of Stae U56 OCí;¡--~-~' .. -.-
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IDAHO SECRETARY OF STATE01/25/2010 05:00
OK: 376364 eT: 172899 BH: 1284985
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1 ~ 28.88 = 28.88 EXPEDITE C I 3
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Ðefaware PAGE 1
ri !Frst State
:r, 31lJ!1!r W. BULCK, smCJæTAiu" OJ' S!L!lE or !I S!lA!l OF
DBL, DO BEY CER!l!in "'.RACFONB wrøuss, INC." is DOLl'
mCORPO,rrD D:& irHJ1 LAS OF THS S!lA!I.B OF D.BLAAl AN is IN
GOOD STANING AN HA A LBGAL CORPOMrJ JlXIS!IJJN' SO FAR AS !rBE
IUCORDS OF riais OFFICE: SHOW, AS 0'1 !lHJ 'rWENrr-FIFX DAr OJ!
JANAR, A.D. 2010_
AN i DO BBBY I!!'B. CER.!rIFr !lBA'r THE SAID "rMCFOlm
WIK1USS, XNC." WA INC'ORPORA!IED ON l"BB 'fIN'lI DA 02' MAr, A. D.
2007_
AN I DO BEsr 11!lB'B.R CSRTIFr THA!l TD AN REPORTS HAVE
BEEN 1lrL1D TO DAm.
AND I DO BERBY F'!lBB cBR.!l:rir !"BA!Z !I1! 1!CHISB 'J1lS
Bi VE BJEN ¡¡AID TO DATS.
433453i 8300i00067757 ÐA~: 01-25-10
7cn iiy VV~;U'y l;ir a_unaat:,. -..tnClolf: ..ø...iali~.~/..u&:ii.oI=i
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FI/LEtO EFFECTDVE
t\\\O JI\l'2S '~2: t.6
''1; .. ¡ATEst ,-I\L \l\t\Of O~HOSTAlE ~
CERTIFICATE OF
ASSUMED BUSINESS NAME
Pursuant to Sec:on 53-504, Idaho Code, the undersigned
submits for filing a cenifcate of AS9umed Busines Name.
Please type or print legibly.
NOTE: See Instrçtion$ on reverse bere filing.
.
1. The assumed business name which the undersigned use(s) In the transaction of
business is:
Safellnk Wireless
2. The true name(s) and business addressees) of the entity or indiVdual(s) doing
business under the assumed business name:
Name
TracFone WIles, Inc.
e C.l:3591â)
Complete Address
9700 N.W. 112th Avneue MiamI, Flonda 33178
3. The general type of business transacted under the assumed business name is:
o Retail Trade 0 Transporttion and Public Utilties
o Wholesale Trade 0 Construction
o Servces 0 Agnculture
o Manufacturing 0 Mining
o Flnanee, Insurance, end Real Estate
4, The name and address to which futre
correspondence should be addressed:
TraçFone Wireless, Ine.
9700 N.W. 112th Avneue
Miami, Florida 33178
S. Name and address for this acknowledgment
copy is lirlllhetlhn'4abO8):
Corporate Crea1ions Iniematlonal Inc:.
11380 Prospeñty Farms Road, Suite 221E
Palm Beach Gardens, Floria 33410
._~¡ "7
Slgnatu Y._.. ..... .~~ 2---._.... .'ll:.... .. - , IIl roiv
Printed Name: y rzq4çA' .:ll Qk
Capaoiiymtle: p~~ d.~:r
(&08 inslruclin # 8 on baCk oUorm)
Submit Certte of
Assumed Business
Name and $25.00 fee to:
Idaho Secrtary of State
450 N 4th Street
PO Box 83720
Boise 10 83720..080
(20B) 334.2301
Seiireoiry of Slate Ul only
t
j i
l Jl;i
IDAHO SECREARY OF STATE01/25/2010 85-88
CK: 376364 CT: 172899 BH: 1284935
1 l 25.08 = 25.88 ASSU" NAME § 4
i)13lt344
,.,.,
FiieD EFIFECTovre
CERTIFICATE OF
ASSUMED BUSINESS NAME
Pur$uant to Secion S3.ö04. Idaho Code, the undersigned
submits for filing a certIfiate of Assumed Business Name.
Please ty or print legibly.
NOTE: See instrctions on reverse beore filing.
.inl0 JAN 25 PM 2: 46
'," ¡ :~L it\iu ()I .j lATEw~~SlATf. OF IOI,\HO
1. The assumed business name which the undersigned use(s) in the trnsacton of
business Is:
NET10
2, The true name(s) and business addressees) of the entity or individual(s) doing
business under the assumed business name:
Name
TraFone W1reless,lnc.
(CA Z 2.: (0 )¡
Complete Address
9700 N. W, 112th Avneue Miami, Florida 33178
3, The general type of business trnsacted under the assumed business name is;
o Retail Trade 0 Transportation and Public Utilties
o Wholesle Trade 0 Construction
II Services 0 Agnculture
o Manufcturing 0 Mining
o Finance, Insurance. and Real Estate
4, The name and address to which future
corrspondence should be addresse:
TracFDne Wireless, Inc.
9700 N.W.112th Avneue
Miami, Florida 33178
5. Name and address for this acknowledgment
copy is (lfolherthnl4above):
Corprat Creations Intematlonallnc.
11380 Prosperit Farms Road. Suite 221 E
Palm Beach Gardens. Florida 33410V .~. 7e=Signatur~--:: ~ ?(c GI
Printed Name: 5:rre11Çl., \1", l? llt1 ~
Capacitymtle:_Ait5 de (M1~
(1I Insiiuotiin # & on bll of form)
Submit Certificate of
Assumed Business
Name and $25.00 fee to:
Idaho Secl'tary of State
450 N 4th Stret
PO ßox83720
Boise 10 83720.0080
(208) 334"2301
Socniry of si usii only
1
jl
..
IDAHO SECRETARY OF' STATE01/25/2010 05 = 00
CK: 376364 CT: 172099 BH; 1204985
1 ~ 2S.0Ø = 25.99 ASSUM HAME . 5
U 1~~~i. 5"
Exhibit 2
IDSOS CERTIFICATE OF EXISTENCE https://www.accessidaho.org/secure/sos/corp/cert.html
State of Idaho
Off¡of the reta ry of State
CERTIFICATE OF EXISTENCE
OF
TRACFONE WIRELESS, INC.
File Number C-18591O
I, BEN YSURSA, Secretary of State of the State of Idaho, hereby certify that I am the custodian
of the corporation records of this State.
I FURTHER CERTIFY That the records of this office show that the above-named corporation
was incorporated under the laws of DELAWARE and filed to transact business in Idaho on 1/25/2010.
I FURTHER CERTIFY That the corporation is in goodstanding on the records of this office.
Dated: 1/28/2010 8:43 AM
~~
SECRETARY OF STATE
Authentic Access Idaho Document ( http://www.accessidaho.org/public/portal/authenticate.html)
Tag: b5ae5f5ffSd7408722a60 1783f4 70adeOf2b9945f381 c4a85fOfe92fl8fc4a96928c89f217f4849c
1 of 1 1/28/10 10:44 AM
Exhibit 3
DECLARATION OF TRACFONE WIRELESS, INC.
I; F.J. Pollak; state as follows:
1. I am President and Chef Executive Offcer of TracFone Wireless, Inc.
("TracFone"). My business address is 9700 N.W. 112th Avenue, Miami, FL 33178.
2. In my capacity as President and Chief Executive Officer of TracFone, I
am an authorized representative of TracFone. I have read TracFone's First Amended
Application for Designation as an Eligible Telecommunications Carrier in the State of
Idaho. I confirm that the information contained therein is true and correct to the best of
my knowledge.
I certfy under penalty of perjur that the foregoing is tre and correct.
Executed on Februar:i~, 2010
e:---.....-...- F .J.
President and Chief Executive Offcer
Exhibit 4
Federai Communications Commission FCC 05-165.
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Mattr of )
)
Federal-State Joint Board on Universal Service )
)
Petition ofTraFone Wireless, Inc. tor )
Forbeace frm 47 U.S.C. § 214(e)(I)(A) and 47 )C.F.R. § 54.201(i) L
CC Docket No. 96-45
ORDER
Adopted: September 6, 2005 Released: September 8, 2005.
By the Commission: Commissioner Abernathy issuing a ~tatement.
i. INODUCTION
1.. In this Order. We address a petition fied by TracFone Wireless. Inc. rfracFonei pursuant to
section 10 of the Communications Act of i 934. 'as anended by the Telecmmunicatrons Act of i 996 (the' .
. Act)? requesing that the Commission forbar from the reqiiirement that a carrier designated. as an eligible
telecommunications carer (ETq for purposes offederal univeral serice support provide serces. at :
leat in par over its own. facmtie$~J TracFone requests that its eligibi.ty for federal uuiversl service
support be limited to Lifeline only. Subjeet to the conditions that we describe below. we grt TraeFone
forbeaance from the' facilties requirement for ETC designation for Lifeline support only,.
IL BACKGROUN
i. Procedural History: TracFone is a non-facilties-based commercial mobile radio servic (CMR)
provider (i.é.. a pure wirel'ess res~l1er) that providesprepaid wìrel~s teJermmwOations serviee. Òn
June 8". 2004. TracFone fied a: Petition for Forbearce' from section 2l4(e) oftle Act. which reuires tht
an ETC offer service using its own facilties or a combination of its own facilties and resale of anoth~r
carier's services (Forbearace Petition or Petition).s Contemporaeously with its Petiion, Tral?Fone filed
. .
. i TracFone Wirles, Inc. Petition for Forbce, CC Docket No. 96-5, filed JU;e 8, 2004 (Forbeace Pettion
. or Petition). on FeblUai 17,2005, puruant to section lO(c) of the Act the Wirline Competition Bureau (ßuru)
extended unti September 6,2005, the date on which Tracfone's Petition shall be deemed ,gited in the absence of
!l Commision decision tht the Petition fails to meet the stda for forbeace wider section i O(a). TracFone
Wireless. Inc. 's Petiti(Jnfor Forbearancefrom 47 u.S.C. § 211(e(I)(A) and 47 C.F.K § 54.201(t), CC Docet No.
96-5. Order, 20 FCC Red 3671 (2005).
2 Teleenuuntions Act of 1996, Pub. L. No. l04-IM, 110 Stal56 (1996).
347 U:S.C.'§ 214(e).
· We note tht this grant of forbeace does not establish TracFone as an ETC. We will àddr TracFone's
petitions for ET designations in subseuent ,?rder.
S On Jwie 24. 2004. the Bureau ~ed a Public Notice seeg comment on TracFone's Petition for Force
Parie are Invited 10 Ccmrnent on TracFone Wireless' Petitinfor Deigntion as an Eligible Telecmmimieaolf
Carie in the Stae of New York an Pettionfor Forbeaan from Application of Sen 214, GC Docet No. 96-
'45, Public Notice, 19 FCC Red i 1264 (2004). Comments and relies to the Jwie 24da Public Notice were reived
i
~
Federal Communicatíons Commission FCC 05-165
wit the Commission petitions for ET designation for sever sttes.6 On Augut 8, 2004, TraFone, in .
its reply comments and short there in its applicatiøns for ETC designtion. amended its Petion and
relate ETC ápplicatiODS to limit its eligibilty for federal univeral service support to the Lifeline porton
. of the low-inCome PfQgram.7 TracFone states that it will meet all ETC obligations except for the
reuirement to "own facilties" and conuits to providing its Lifeline customers with accss to E9 i 1
service, regardless of activation status and availabilty of prepaid minutes, and to requirg its customers t-o
self-crtify they are receiving only one Lifeline-supported service.' On September 24. 2004. TracFone
amended its Petition a secnd time to include a request for forbce from secton 54.20 i (i) of the
Commission's rules, which provides that state commissions shall not designate as an ETC a caier that
9ffers services support by' federal universal service support mechanisms exclusively through resale of
another carier's service.9
3. Applicable Statutes and Rules: The Act provides that only an ETC slìalt be eligible for universal
service support.IO To be eligible for ETC designation. a carrier must meet certin sttutory requirements
including offering service over its own facilties or a combination of its OW(l facilties and resale of another
on July 26 and Augu 9, 2004, repectively. In response to cein coinents, TracFone lited its Petition to.
Lifeline sUpport in its Augut 9di reply comments. Because- TracFone modified its Petition in itS reply comments,
commenters nid not pròvide comment in the FoTbea~nce proceing on the Lifeline-only limitaon. Desit~ this
. fact, commenteJ did addres the Lifeline-oil1y limitation in the related TracFone ETC proceings, Which TracFone
likewise modifed to reflec the request for limite univeral service. support. See The W7reline Competition Bureau
See Comment on Petiions Concering Eligible Telecommunlcati011 DesigntionS and th Lifline and Link-up.
Universal Service Support Mechanism, CC Docket No. 96-45 and we Docket No. 03.:'109, l?ublic Notice, 19 FCCRed 20462 (2004).. . .
6 TracFone has eight ETC petitions pending before the Commission. See TracFone Wireless, Inc. Petitin fnr
Designation as an Eligible Telecommunications Caer in the State of New York CC pocket No. 96-45, fied June
8, 2004; TracFone Wireless, Ine. Petiton for Designation as an Eligible Telecmmuncations Caer in tle
Commonwealth of Virginia, CC Docket No. 96-45, filed June 21~ 2004; TracFone Wifeles, Inc. Petition t:or
Designation as an Eligible Telecmmunications Carrer in the State of Floria, cc" Docket No. 96-45. filed lune 21.
2004; TracFone Wireless,. Inc. Petition for Designation as an Eligible Tekcommwiicatoi Carer in the State of
Connecticut,CC Docket No.. 96-45. fied November 9, 2004; TracFone Wireles Inc. Pettion for Designtion as an
Eligible Teleconuuncations Carer in the Commonwealth of Maachusett, ëc Docket No. 96-45, fied .
Novemb~r 9, 2004; TracPorie Wireles, Inc. Petition for Designtion as anEligibleTcleenulUcations Caer in
the State of Alabama, CC Docket No. 96.-45. fied November 9,2004; TracFone W"irelcs, Inc. Petiton for .
Designation as an Eligible Teleconmunications Carer in the State of Tenessee, CC Docket No. 96-45, fied
November 9, 2004; TracFone Wireles, Inc. Petition for Designation as an Eligible TelecommlUcations Caer in
the State of Nort Caolina, CC Docket No. 96-45, fied No.vember 9, 2004.
7 TracFone Reply Comments fied Augus 9, al2-3 (AuguSt Reply Comments). See TracFone Wireless, Inc.
Amendment to Petition for Designation as an Eligible Telecmmunications Caier in the State of
Florida, CC
Docket No. 96- 45, fied Aug. 16,2004; TracFone Wireles. Inc. Amendment to Pettion for DeSignon as an
Eligible Telecommuncations Caer in the State of New York CC Docet No. 96-45, filed Aug. 16. 2004;
.TracFone WirlesS. Inc. Amendment to Pettion for Designtion as an Eligible Telecmmunications Caer in lhe
Commonwealth ofVargìia, Cç Docket No. 96-45, filed Aug. 16,2004.
· TracFone Reply Comments, filed Octber 4,2004, at 3-4 (October Reply Comments); August Reply Conuents atIQ .
941 C.F.R. § 54.20 i (ì); TracFone Wireles, Inc. Clarficaon ofPettìon fQl Forbeace. CC Docet
No. 96-45.
filed September 24, 2004.
1041 U.S.C. § 254(e).
2
Federal Communications Commission FCCOS-165
caer~s servce. i i Only ETCs may reeivè high-est .and low-income support 12 The low-iiicome support
mechanism of the universl service fud consists of the Lifeline and Link-Up progrs.1J
4. Collectively. the Lifeline and Link-Up progr are designed to reuce the monthy cost of
telecmmunications service and the cost of initial connection, respectively. for qualifying consumers.-
Lifeline provides low-income consumers with disounts of up to $10.00 off of the monthly cost of
telephone service.14 Link-Up provides low-income consers with discounts of up to $30.00 off of the
initial cots of installng teleplione service. IS Recgnizing the unique nees and charcteristics of trbal
communities. enhanced Lifeline and Link-Up pi:ovide qualifying low-income individuals living on trbal
lands with up to $25.00 in additiona.l discounts off the monthly costs of telephone service and.up to $70.00
more off the initial cost of installng telephone service.l6- TracFone seeks eligibilty to receive support
only for the Lifeline po~ion ofth~ low-income progra.17
II 47 U~S.C. § 2l4(e)(I)(A).
12 A caer need not be an ETC to parcipate in the schools and libraies 01" rual heallfi cae progr. 47 U.S.C.§
254(h)(I)(A) and (B)(ii). See Federal-State Joint Board on Universal Service, CC Docket No. 96-5. Report and
Order, 12 FCC Red 8.776, 9015, par 449 (1997 Universal Serice Order) (concluding that any telecmiunications
caier, not just ETCs, may recive universal service support for providing supportd serice to schools and
. libraries); see also Federal-8tate Joint Board on Univsal8.uvÌ(;e, CC Dockçt No. 96-46. Fourenth Order on
Reconsideration,.l4 FCC Red 20106, 2Òl 14~5, par 19(1999) (Fourteenth Order on Reconsideration) (fiding
tht although only ETCs may receive universl service support a non-ETC that provides supported seipe to
eligible rul health cae providers may offset the value of the discount provided againt its unveral service
contrbution obligation and. to the extent such discount exce its contrbution obligation, rèiv~ a refud).
I~ 47 C.F.R. §§ 54.401, 54AI1.
1-4 See 47 C.F.R § 54~401(a)(2).
IS See 47 c.F.R. § 54.4 11 (a)(I).
16 See 47 C.F.R. §§ 54.405(a)(4), 54.. I i (a)(3). Under the Commission'stUles, there are four tiers offCderl
Lifeline support All eligibl~ subscribers receive Tie. i support which provides a discolUt equal to the ETC's
subscrber line chage. Tier 2 support provides an additional $1.15 ~r month in federal support avalable if aU
relevant state regulatory authorities approve such a reuction. (All fi.ft state have approved tl reduction.) Tier 3
of f~erl support provides one half of the subscnber's state Lifeline support up to a maxwn oUI. 75. Only
subscribers residing in a stte that has established i~ own LifelineIin-Up progr may receive Tier 3 support
assuming that the ETC ~ all necesar approvals to pass on the full amoun of this tota support in discounts to
subscribers. Tier 4 support provides eligible subscriber livig on tribal limds up to an. additional $2 per month
towards reducing basic local service rate, but this discowlt caot bnng the subscrber's cost for basic local service
to less th $1. See 47 C.F.R. §. 54.403.
11 Augut Reply Comments at 3 (requesting eligibilty for Lifeline only support); October Reply Comments at 4
(specifying it does not seek eligibilty for Lin-Up support). TracFone ha filed details of two proposed Lifeline
plan. TracFone Wireless. Inc. Ex Parte Supplement to Pettion for Forbeace and Petitions for Designation as an
Eligible Telecmmunications Caer. CC Docket No. 96-45, at 3-5. fied July 15.2005. The fi pian the "Pay-
Aß You-Go" Lifeline PLan provides Lifeline cuomer with acces to the netork for one yea and 30 miute of
. airime each month. Under TracFone's proposal, the cost of this plan would be completly suósidiz by the
Lifeline Sipport rd. at 3-4. The secnd plan, the "Netl 0 Pay-As-You-Go" Lifeline Plan. would reuire the
Lifeline cutomer to purchase bucket of minut to be us in an identified peod of ti tht are dicowite frm
TracFonc's retal price to reflec the Lifeline subsidy. Jd. at 4-5. One vartion under tl pla would reuire
Lifeline cumers to reee coupons monthy. Jd. TracFone stte th under any pla the Admto would
provide support to TracFone as it doe to all other recipients of Lifeline suport tht is, TracFone's Lifeline support
wiII be cacuatèd on a month basis. imd ditrbuted on a quly basis. Le from Mitchell F. Brécer, Counel
for TracForie, to Marlene It Dortch FCC. CC Docet No. 96-45, at 3. filed Augut 22,205.
3
Federal Communications' Commission FCC 05-165
5. The Commission has in the pa declined to extnd ETC statu to pure rellers. In lle 1997
Universal Service Order, the Commission found that the plain languge of the stte reuires that a oaer
seeking ETC designation must own facilities, at leat in par thus preluding a caier that offers services
solely though ree from being designat as eligible.11 The Commision reaoned without .
distinguishing among the various universl serice support progra, that it was appropriate to deny pure
resellers universl service support beuse pure reseUers could reive the benefit of universl servce
support by purchaing wholesale serice at a price tht includes the universl serice support recived by'
the incumbent provider.19 Later in the 1997 Universal Service Orde, the Commission found that although
reseUers were not eligible to recive universal support directly, they were not precluded frm offering
Lifeline services. Resellers cold offer Lifelhie service by purchasing services at wholesale rate purst
to section 25 i (c)(4) that reflect the customer~specific Lifeline support amount recived by the incumbent
loca exchange company (LEC) and then passing these discoUnts through to qualifying low-:incom~ .
customers.20 The Commission, in so finding, considered only that the underlying carrier was an incumbent
LEC, subject to price-regulated resale obligations. Furter, the Commission declined to forbea frm the
, flcilties requirement, finding that the statutory criteria had not been met.21 Making no finding with respect
to the first two prongs, the Commission concludecl'that fo(bearnce was not in the public interest because
allowing pure resellers to receive universal service support would result in double recovery hy tle
resellers. D In making this finding, however, the Commission ágain did not distùrguish among, the various
universal service support programs. Specifieal1y, it did not consider whether providing only Lifeline
.supprt directly to a pure wireless reseUer would result in double recovery.
m. DisCUSStON
6. For the reons provided below, we coiiditio~iiy grnt TracFone's Petition and forbear from
section 214( e) .of the Act arid sl?ctions 54.20 I (d)(l) and, ,54.201 (i) of our roles for. the purpose øf
considering its Petitons for ETC Designation for Lifeline support only?) If ultimately grted ETC stas~
TracFone wil be eligible only for Lifeline support As a limited ETC, TracFone would not be eligible to
receive support for the other supported serVice under the low-inèome prog nor would it be eligible, as
an ETC, to receÍve support for services supported by the other universal support mechanisms.!" We will.
addres~ TracFone's petitions for ETC designation in subsequent orders~ In sum, this grt is conditinnal
on TracFone (a) providing' its Lifeline customers with 91 I and enhanced 91 I '(E91 1) accss regardless of
activation status and availabilty of prepaid minutes; (b) providing its Lifeline ~ustomers withB911-
compliant handsets and replacing, at no additional charge to the customer, non-compliant handsets of
existing customers who 'Obtain Lifeline-supported service; (c) complying with Conditions (a) and (b) as of
the date it provides it provides Lifeline seivice; (d) obtaining a certification from each Public Safety,
IS Ill at 88?5, par. 178 (adoptg Joint Board's analysis and conclusion); see F.ederal-State Joint Board on
Universal Service, CC Docket No. 96-5, Recommended Decsion, 12 FCC Red 8~.. 172-73, par. 160-161 (1996).
" 1997 Universal Service Orde, 12 FCC Red at 8866, par. 161 and 8875, par. 178.
2( fll at 8972, par. 370. The Cömmision noted that it would reaes this approach Ù1 the futue iftheUfeline
progr appeaed to be under-utilize. ¡d. .
21 fd. at 8875-6, par. 179.
.Dld.
n In addition, and on our own motiaIl we forbe from secon 54.20 1 (d)l) of the Commision's rules 41 C.F.R
§ 54.201 (d)I). This section mirors section 214(e) of the Act and re tbET be facilty-based at lea in
par We apply the sae forbece anal we applied to seon 214( e) to th secon of our roles indetg th forbce is wated
2.. See 1116, sura, for dision regaring parcipation by non-ETCs in the schools an hòraes and ru heath
cae progr.
4
Federal Communications Commission FCCOS-16S
Anwenng Poin.t (pSAP) where TracFone provides Lifeline service conrmning that TracFone complies
with condition (a); (e) reauinng its customers to self-certif at tie of serVice actation and anually
thereafr that they ar the bead of household and reive Lifeline-support sei:ce only from TracFone;
and (f) establishing saeguds to prevent its customers from recivng multiple TracFone Lifeline
subsidies at the same addres.2S Finally, as explained below, within thirt days ofthe releae of
this Order,
we reuire TracFone to file with the Commis~ion a plan outlining the measure it wil tae to implement
these conditions.
7. Section 10 of the Act requires that th Commission forbea from applying an regulation or any
provision of the Act to telecmmunications service or telecmmunications caier, or classes thereof. in
any or some otïts or their geographic markets. if the Commission detennines that the thee conditions set
fort in secti9" 10(a) are satisfied. Specifically, section 10(a) provides that the Commission shall forbea
from applying such provision or regulation if the Commission detennines that:
(1) enforcement of such regulation or provision ìs not necear to ensure
that the charges,
practices, classi.fications, or regulations by, for, or in cOnnection with that telecommunications
caer or ,telecommunications service are just and reasonable- and ar not unjustly or unreasoaabrydiscriminatory; . . .
(2) enforcement of such regulation or provision is not necessar for the protection of consumer!';and .'
. (3) forbearance from applying such provision or regulation is consistent with the public interet.
26
8. In addition, when considering the puWc interest prong under'
secton iO(a.x3)~ the.Commisipion
must COllsider "whether fQrbearCe ... wil promote competitive maret conditions:ò7 If
the Commission
determines that such forbearace wil promote Compettion among providers of
telecommuncations
servce~, that determination may be the basis for a Commissióii.finding that forbearce is in the public
interes.:Z Forbeace is warted, howev.er,oniy ifáll three prongs cifthe test ar satisfied. For the
reasons explained below, we find tht Tr.cFone satisfies all three prongs.
9, This Petition requires that we'consid~rthe sttutory goals of
two related !,ut different provisions
ofthe Act. We first examine the sttutory goals ofuniversaf service ¡nsection 254 specifcally in the
2S Commenter have raised concemsabout the administrtive costs, compiexities, and burdens of grtig th
Petition and preswnåbly the associated ET designation pettions. See Leter from Robin E. ThUle. USTelecm, to
Marlene Dorth. FCC. CC Docket No. 96-5 (filed. Augu 17, 2005) (USTeleem Augt i 7 Ex Parte). We
believe that this conditional forbeace wil sere to fuer the statutory goal of
the providig telec,mwiications
acces to low-income subscrbers while establishing the nec safeguards to protec the unversal serice fud
.and the fuctionig of the low-income support mecansm. To the extent, however, that our predicte judgment
proves incorrect and these conditions prove to be indequate safeguds, the paries ca fie appropriate petitions
with the Comm:ission and the Commission has the option of renSiderig this forbce rulin. See Petition
for
Forliearance of the Verizon Telephone Companies Pursua to 47 U.S.C. § 160(c), WC Docket No. 01-338,
Memorandwn Opinion and Order, 19 FCC Re 21496.21508-9, par 261185 (2004); see also Petition ofSBC
Communicqtions Inc. for Forbeaance from Strural Separatns Reuirement of Setion 271 of the
Communications Act of 1934. As Amended an Reestfor Rel/efto Provide International Direcory Assistance
_ Seices. CC Docket No. 97-172, Memoradwn Opinion and Order, 19 Fcc Red 521 I, 5223-24, par. 19 1166
(200); Cel/net Communications. In v. FCC, 149 F.3d 429,442 (fJ Cir. 1998). Additionally, we note tht the
conditions we impose hac wil be incorporated into any grt of the ETC designaton petitions and an violation of
such conditions may ret in loss orETe sttu.
2647 U.S.C. § 160(a).
2747 U.S.C. § 160(b).
21 It!
5
Federal Communications Commission FCCOS-165
cóntext of "low-income consumers."21 We then consider the statutory purpose underinning the facilties
requirement in seon 214(e) as it relate to qualifing for federal low-income ,univers seice support
Afr caful exaination'ofthe regulatory goals of universal serice as applied to low-incme consumers
we detennine that a facilties requirement for ETC designation is not nec to enure that a pure
wireless reseUer's chares, practice. clasificaions or n,lations ar just and reaonable when that carrer
seeks such status solely for the p:urpse of providing Lifeline-support services. Indee, for the reaons
provided below, We find that the' facUities requirement impedes grear utilzation of Lifeline-supported
service provided by a pure wireless resUer.
to. Universal service has,been a fundamenta goal offedera telecmmunications regulation since the
passage of the Communications Act of 1934.30 Congres renewed its concern for low-income consmers
in the Telecommunications Act of 1996 when it established the pnnciples that guide the advancement and
preservation of universal service.3. Specifically, the Act direts the Commission to consider whether
"consumers in all regions of the NatÌon, including low-income conswners and those in rural, insular, and,
high cost area, .~. have accs to telecmmunications (service)... at rates that ar reaonably comparable
to rates charged .,. in urban area:,3i, We therefore exaine the facilties requirement from which
TraeFone seeks forbeaance,in light of the statute's goal of providing low-incOfne consumers with acces
to telecommunications service.
i i. Just and Reasonable: As ar initial matter, we note tht a provision or regulation is "necsIUY" if
there is a stong,connC?ction between th requirement and regulatorygoal.J3 Secon 10(a)(l) requires tht
we consider whether enforcement of the facilties-based requirement of seêtion 21 4( e) for a pure wireless
reseller that seeks ETC desigiation for Lifeline support only is necesary tó ensure that the charges.
practices, classifications or regulations are just and reaonable and not unjustly or unreanablydiscriminatory. "
l:l. We find that the facilties r-euirement is not necsaito ensure that TracFone's charges,
practices, ånd clasifications are just and reaonable and not unjustly or unonabfy discriminatory where
it is providing Lifeline service only. The Còmmission ha in the past declined to extend ETC status to pure
reseUers because it was concerned about double recvery of universl servìce sUppOrt34 In making this
. decision, however, the èommission considered the issue in the context of wireHne reseUerS 'an4' without
differentiating among the types ofuniversaJ service suport and the basis ofdistrbutinn. Lifeline support
designed to reduce the monthly cost oftelecmmunications serVices for eligible conmers is distributed
on a per-customer basis, and is directly reflected in ~e price tht the eligible customer pays.3S Because it is
customer-specifc, a caier who lose a Lifeline customer to a reseUer would no longer receive the Lifeline
support to pass though to that customer. Thus, a wireles rescUer who serves a Lifeline-eligible customer
and receives Lifeline support direcy frm the fund does not receive a double reover. By comparison, ,
where the wholesale carer is an incumb~nt LEC subj~t to price-regulate resale under section 251 (c)( 4),
the rate at which the reselfèr obtains the wholesale service is based on a state-mandated percentage
21 47 U.S.C. § 254(b)(3).
3047 U.S.C. § 151 ("to make available, so tà aspossible, 10 all the people oftle United State ... a rapid. effcient,
Nation-wide, and world-wide wie an communcaon serce with adeqte facilties at reanable rate
,(emphasis added).
3147 U.S.C. § 254(b); see 1997 Univsal Serice Order. 12 FCC Red at 8789. par 21 and 8793. par 21.
3247 U.S.C. § 254(b)(3) (emhais added.
3J See CTIA \i. FCC. 330 F.3d 502, 512 (2003).
3.. 1997 Universal Service Order. 12 FCC Red at 8861,8873,8815, par. 151-152, 17~, and 178_
3S 47 C.F.R. §§ 54.401. 54.504.
6
Federal Communications Commission FCCOS-165
. discount off ~fthe incubent LEe's retail rate for the serice, and any Lifeline support reived by the
incumbent LEe would therefore be reflected in the price chaed to the reeUer.36 In this scenarO', a
reseUer that also recived Lifeline surt could revcr twce: fi beuse the benefit of the Lifeline
support is reflecte in the wholese price and second becuse the reseUer also reives payment directly
frm the fund for the, Lifeline custmer. That. however, is not th cae before us. TracFone, as a CM
provider, doe not purchase Lifeline-supported servic from incwnbent LEC providers. Because
TracFone's CMI wholesale providers are not subject to section 25 i (c)(4) resale obligations, the resold
servce do not reflect a reuction in price due to Lifeline support Therefore, we find that allowing
TracFone to receive Lifeline support dirctly from the fund would not result in double recovery to
TracFone and that the logic ofthe 1997 Universal Service Order does not apply here.
13_ We agree with TracFone that. as a reseUer, it isby definition subject to competition and tht this
competition ensures that its rates are just and renable and not unjustly or unreasonably discriminatol).37
We note that TracFone's Lifeline offering wil compete with at leat one other Lifeline offering whether-
frm the underlying CM provider, if an ETC, ot from the incumbent wireline carier.JI We also believe
that this competition wil spur innovation amongst cariers in their Lifeline offerings, expanding the choice
of Lifeline products for eligible consumers. We note.tht TracFone has create a wireless prepaid prøduct
that is neither dependent upon the retail service offerings ofits underlying carers nor simply a rebrandiog
of the underlying caier's retail sei:iee oífenng which may provide a valuable alternative to eligible
consumers.39.. '
. 14. For the reaons provided above, we find. that the requirements of the first prong Of section 10(a)
. are met. Where, as here, the wirelesS reeUer is fòrg~ing all univerSl service support
but Lifeline, which is
customer-specific and. is designed to make telecmmunication service afordable to eligibre consumers, tIe
facilties requirement is unnecessar to preerve the intgrity of the universal service program or the fund.
By limiting TracFone's eligibiHty to Lifeline support the falities reuireinent is not necesary to ensur
that TracFone's charges, practices, and classifications are just and reasonable.
15. Consumer Protection: Section lO(a)(2) reauires.that we conSiderwhether enforcementofthè
facilties-basoo reuirenient of section 214(e) for a pure wireless reseUer that seeks ETC designati,on only
for.Lïfeline support is necsary fOE thc prot~tion of consumers. We find that"mposing a facilties
requirement on a pure wireless reeUer is not necessai for the protection of consumers subject to the .
conditions desribed below. Specifically, we conclude that forbeace from this provision will actually
benefit consumers.' Indeed, if TracFone is ultimately grte limited ETC status, it would be offering
Lif~line-eligible consumers a choice of providers not available to such consumers today for accesing
telecommuniCations services. The prepaid feature may be an. attctive alternative for such consumers who
need the mobilty, secunty, and convenience of a wireles phone but who are concerned about usage
charges or long-tenn contrcts. We also note that TraFone has committ to enuring that all of its
consumers wil be able to place enhance 911 (E911) calls frm their handsts even if
the consumer's
service is not active or does not have prepaid minutes available.40
36 See 47 C.F.R. § 251(c)(4).
,37 Forbeace Pettion at 5.
)I See 47 C.ER. § 54.405(a) (requirg ETCs to offer Lifeline serice).
19 TracFone states that its cuomer pay Ù1 advace for minut of use, Without ter contrct or teination fee
other exteous or pas-though fees crit checks or deposits. TracFone alo stte
that its pncing is unifonn
across its serce area despite the costs asiated with an parçuiår underying caer. Forbce Petion at 3- .
4.
40 Aug Rely Conuents at 10_
7
Federal Communi~tions CommissiQD FCC 05;165
. 16: (jiveD' the importce of public saety, we condition this grt of forbce on TracFone's
compliance with the E91 I requirments applicable to.wiles rescUers, as modifed below, for all Lifeline
customers. In Iig~t of the condition disused below, tht TracFone ensre its cutomer recive only one
Lifeline-supported servce, we find it essetial that TracFoiie's Lifeline-supportd servce be caable of
providing emergency acc. Given the possibilty that this Lifline-support serce wil be the
customers' only mea of accssing emerency personnel, we reuire that TracFone provide its Lifeline
customers with accss to basic and E911 seice inuediately upon activation of serce.41 We note tht
this condition is consistent with Tracfone's reresentation that its Lifeline customer will be able to make
emergency calls at any time.42 To demonste compliance with this condition, TracF:one must obtain a
certfication from each PSAP where it provides Lifeline service confinning that TracFone provides its
customers with access to basic and E911 serice. TracFone must furnish copies of these certfications to
the Commission upon reuest. ~ As an additional condition, TracFone must provide only E9 i i -compliant
hadsets to its Lifeline customers, and must replace any non-compliant handset of an existing customer
that obtains Lifeline-supported serv~e.e with an E9 I i -compliant handset, at no charge to the customer. The
Commi~sion has an obligàtion to ptomot~ "safety of lif~ and propert and to "encourage and faciltate the
prollpt deployment throughout the Unite States of a sealess, ubiquitous, and reliable end-to-end
infrtrcture" for public safety."" The provision -of911 and E911 service is critical to our nation's abilty.
to respond to a host of crises, ~d .this Commision has a longstading and continuing commitment to a
. natioDwide communications system that promotes the safety and welfare of all Americans, including
Lifeline customers.4S. We beli~ve that these conditions are necesar to ensure that TracFone's Lif~line
customers have meaningful acces to emergency services. We reiterate that, with the possibility that the
Lifeline.service wil be the customer's only accs to emergency services and given the potential" gravity of
hai if such Lifeline customers caot obtain .sucb accs, we believe that these conditions wiI furter the
protecion of such Lifeline customers. .
i 7.. We ar not persded by some.commenters; concern reg~d¡ng the impaeton the size of
the
universal service fund and the associated contrbution obligation if we grt.this Petition.'6 Becuse
section IO(a)(2) requires that we consideTthe welfare of all "consumers," we must consider the effect a
grnt of this Petition wil have on consWlers who will likely shoulder the effects of any increaed
contribution obligation since caers are pennitted to recover their contribution obligations from
. 41 Under seètion 20.18(m) of our rules, wireles rëellers have an independcit obligation, begiiing Deceber 3 i,
2006~ to provide accs to llasic and E9 I I service, to the extt Uiat Uie unerlying. faciltiesbased liceee bas
deployed the fåcilties necsar to deiver E.9 i I infonnation to the appropriate PSAP. 47 C.F.R. § 20. i 8(m).
Secon 20.18(m) fuer provides tht rescUers have an independent obligation to ene that all handsets or other
. device offered to their cutomer for voice èommuncations ar location-capable. Jd. Under our rules, ~is
obligation applies only to new handset sold aft Dece~erJ I, 2006. Id. A1 a condition of Uiis grt of
forbeace, however, we r~quire that TracFone, if grte ETC statu, meet Uie requirments of section 20.18(m)
for aU ofits Lifeline customers as of the date it provides such. Lifeine seice
42 August Reply Co~ents at 10 (gven E91 I caabilties orits serice and hadset TracFone envisions tht its
serice "rely will ser~ as a 'lifeline' for Uiose eligible cuomer parcipatig in the program').
.41 We recgnze Uial, as a practical matt, ifTracFone's Wlderlyig facilities-bas liceee has not deployed the
facilties nec to deliver E911 infonntion to the approprate PSAP, TracFone wil not be able to offer Lifeline-
supported serice to cutomer residing in Uiat ar
.. Applications ofNexel Communictions. Inc an Spr-int Corporation For Conent to Transfer Contol of
Licees
an Authoriztins, WI Doet No. 05-3, Memoradwn and Orer, FCC 05-148, par 144 (rel Aug 8, 2005)
45 Ttl
'" See. e.g.. Comments oems TelecmmWlications Corp., fie4 Septebe 20,2004, at 5- (IS Comments).
8
Federal Communications Commisio-n FCC 05-165
Clmer:47 IfTracFóne is able to obtain ETC desgntion for Lifeline-oly seice, we do oot exp
this to significatly buren the univerS serce fud and thus negatily afec consumer thugh
increaed pasthugh chares of th caers' coolnòuûon obligaons. The Commision has regniz
the potential groWt of the fund associate with high-cst support distrbute to compettive ET.4i
TracFone, however, would not be eligible for bigh-cst support In 20M, low-income support accunte
for only 14 percent of the distrbution of the tota universal servce fud; wherea, high-cost support
acunte for 64.2 perct" Any incre in the siz of the fund w9uld be minimal and .is outweighed by
the beefit of incresing eligible parcipation in the Lifeline progr, furtenng the sttutory goal of
providinK access to low-income .cns~. Significatly, grting TracFone's Petition wil not have any.
effect on the number of persons eligible for Lifeline support
18. We furter.safeguard the fund by imposing additional conditions on this grt of forbearance.
Specifically, as a firter condition of this grant of forbearce and in addition to all other required
certifications under tle progr, we require that TracFone require its Lifeline cùstomers to self-certil
under penalty of perjury upon service activation and then anually therefter that they are the head of
household and only recive Lifeline-supported serVice frm TracFono. so The penalties.for perjur must be
. çlearly stated on the certfication fonn. Additionally, in order to furter strengten the head of household
. requirement, we require tht TracFone trck its Lifeline customer's primar reidential address and .
prohibit more than one support TracFone service at each residential address.51 These conditions are
consistent with TracFone's representations in the record,51 In iiglt of these safeguards, we are not .
dissuaded from granting forbearce by concern of double revery relating to customers receiving
Lifeline support for more than one service.53 We reegnize, however, that the potential for more than one
n See 47 C.F~R. § 54.712.
48 See Federal-8tate Joint Board on UriiverSr Seice, Virginia Cellular, LLC Petiion for DeSignion as an.
Eligible Telecommunicatilms Carier in the Commonwealth of Virginia, CC Docket No. 96-45, Memoradum
Opinion and Order, 19 FCC Red 1563~ 1577, pår 3.1 (2004); see also. Fedral-8tate Joint Board on iliversal
Service, Highlån Celular. !nc. PetUionfor Designion as an Eligible Telecommunica/ioti Carier in the
Commonwealth .ofVirginia, CC Docket No. 96-5, Memoradum Opinion and Order. 19 FCC Red 6422, 6433-4,par 25 (2004). . ... .
49 Wirelie Competition Bureau, Federl Communictions Commission, Trend in Telephone Serice, Table 19. l
and Chai f9.1 (June 2005). Aß of March 2004, the average montly federl support per non-trbal Lifeline
customer was $8.55. ¡d. at Table 19.7. See 47 C.F.R. § 54.403. Tribl cusomers are eligible for up to an
additional $25 per.month ÎI Liff!line sup~rt 47 C.F.R. § 54.403(a)(4). .
so October Reply Comments at 3-4 (commitment to require Lifel~e cUstomer to self-cfy that they do not recive
support from any other carrer). To monitor compliance, we reqire that TracFone maintain the self-cefications
and provide such docwentation to the Commission upon reuet
.51 See ReplyCommentS of TracFone Wirless, Inc. to Petition for ETC Designation in Virginia, filed September 7,
2004, at 7-8 (fuly capable of fulfiling all rerd keeping requirements and ha the abilty to trck each conser's
pri residence). See also Le from Mitchell F: Breher, Counl fOI'TracFone, to Marlene H. Dorth, FCC,
CC Docket No. 96-45. fied luiy 13,2005 (capable of fulfillig certficaon and verification requiements)
. (fracFone July 13 Ex Parte).
52 See 0.56 and 0.51 above. We point out th thes conditions are in addition to, and do not supplant, the
cefication and verfication eligibilf¥ already re by om rules for federa default sttes and any simar ste
roles for the non-federl default states. See. e.g., 41 C.F.R § 54.410 (reirg initial ceficaon and anualverfication of eligibilty). . .
53 See IDS Comments at 5-6; Reply Comments of the United State Telecm Asociaton, filed Octber 4, 2004, at 6
and 1118; let from Kathere O'Ha veIn, to Malene ß. Dort FCC, CC Docet No. 96-5, at l, filed
Augut 9, 2005 (Vern Ex Pare); USTelecm Augt 17 Ex Parte.at4. .
9
Federal Communications Commission-FCCtl5-165
Lìfeline-suported service pen~ligible consumer is an indus-wide problem.54 We are confdent th
these conditions of this grt of forbeace will eliminat this concern with repec to TraFone's-
customers. Additío~lly, we encourae comment on ths issue in the Comprehensive Universa!8ervices
Program Management proceeding to address the potential forabuse thoughout the indus.55
19. USTelecm raistl concerns abut the fact that TracFone distbutes it service though retail
outlets.S' USTelecm argues that TracFone Will not have the requisite cOntrol over the retailer's employees
to ensure complianc; with Lifeline niles and ceificaions. We recgniz that this may be a problem and
th!Js reuire that TracFone distribute its Lifeline service directiy to its Lifeline customer. Specifically,
customers may purchase handsets at TracFone's retail outlets,bowever, we require that TracFone deal
directly with the customer to certify and verify the customer's Lifeline eligibilty. Of the two methods for
certifying and verifying custmer eligibilty offered by TracFone, we reject the point of sale
procedures
that wo!lld allow TracFoDe Lifel-ine customers to submit qualifying ¡nfoonation to the retail vendor.57
TracFone must have direct contact with the customer, whether by telephone, fax Internet, in-person
Cöns.ltation or otherise, when establishing initial and coDtinued eligibilty.
20. Certin commenters argue tht the prepaid, resold nature_ ofTracFone's proposëd service offering
wilL. faciltate frud, waSte, and abuse in the I.feline progr.58 We find that this concern is more propèrly
addressed .i any order resolving TracFone's peations for designation as an ETC. In
the ETC designation
_ proceedings, ifTracFone's petitions ar grante, we wiU addres how Lifeline support wil be caculated
and distributed if the prepaid natUre ofTracFone's serVice offering requires such clarfication.
21. In light of the conditions we have outlined here, we believe that appropriate safeguards are in
placeto deter waSte, frud, and abuse. We strive to balance our objective of incceasing parGipation in the
low-income_progra with our objective of preventing and-deterring wae, frud, and abus. We fid tht
we have strck the appropriate balance here. We are alsomindfut of tho. fact that otiér prepaid: pure
wieless caers may similarly sèe eligibiJty for .Lfeline-onty support. Given the safeguards we put in
place aimed at ensuring that only eligible consumers receive such support and that they recive such .
support only once, we dp not believe that similar requests wil have a detrimental impact on the fid. We
_ note that to _the extent any" similafly situated prepaid wireless reseUer seeks forbearce from these
requirements ror the purpose of providing only Lifeline support it wil be expected- to comply with.all the
conditions we impose upon TracF~ne herein.
22. Accordingly, we find that, subject to the 911 and E91 i conditions and the self-crtcation and
address limitation conditions set out above-, the ETC facilties-based reuirement is not necssary for
consumer protetion. We thus conclude that tle seconá prong of section 10(a) is satisfied.
23. Public Interest: Section 10(a)(3) requires that we consider whether enforcement ~fthe facilties-
based requirement of section 21 4( e) for a pure wireless reseHer that seeks ETC designation for Lifeline
54 See Verizon Ex Parte at 1; USTelecm Augut 17 Ex POre at 2, 4.
55 See Comprehensive Review of Universal Service Fwi Managemen. Administration, an Overight, Fedal
State Joint Board on Uniersal Serice Schools an Libraries Univeral Serice Support Mecanism. Rural Health
_ Care Support Mecnism. Lifeline and Link-Up, Changes to the Board of Directors fór the National Exchage
Carier Association, Inc., we Docket Nos. 05-195, 02-60, 03- I 09 and CC Doeket Nos. 96-45. 97-21, FCC 05-124,
par 22 (rel June 14.2005) (Comprehiv Universal8eiceProgram Mangement).
S& SeeUSTelecmAug 17 Ex Pare at4.
S7 TracFoneJuly 13 Ex Pare at 2-3.
58 Le~ frm Jeff S. Laing, USTelecm, to Marlene H. Dort FCC. ec Docket No. 96-5, at 3-5. fied
Augut 26,2005; Rely Conuents ofVern, fied Oc 4, 2004. at 3.
10
Federal CommunÌcanons Commission FCCOS-165
support only is ia the public interest: In this instce, based on the-rerd before us we find that the
statutory goal of providing telecmmunications access to low-income consers outwighs th
reuirement that TracFone own facilties, where TracFone, should it be designed an ETC, will be eligible
only for Lifeline support Thus, we fid that reuiring TracFone, as a wirles reseUer, to own facilties
doe not necesarly furter the statutory goals of the low-incoiae progr wlch is to provide support to
qualifYing low-income consumers throughout the nation, regardless of where they live.
24. The Lifeline progr is designed to reuce the monthly cost oftetecmmunications service for
qualifying low-income consumers.s, Preently only about one-third of households eligible for low-income
assistance actually subscribe to the progr."'- We recntly expanded eligibility criteria and outreach
guidelines for federal default states in an effort to increase paricipation.'
On July 26, 2005, we launched
a joint initiative with the Natibnal Association of RegUlatory Utilty Commissioners to raise awareness of
our Lifeline and Link-Up programs among low-income. consumers.62 We believe even more can be done to
furter expand participation to those subscribers that qualifY and thus furter the statutory goal of section
254(b), Therefore, consistent with the Commission's asserton in the 1997 Universal Service Order
concerning under-utiliztion of the program, we conclude it is appropriate to consider the relièfreueSte
with the goal of expanding eligible lJaricipation in the program~6l With only about one-third of Lifeline-
eligible households actually subscribing, we believe that grting TraeFonc's Petition serves the public
interest in that it should expand paricipation of qualifYing consumers. Accordingly, we conclude that
forbeahig:from the facilties requirement for Lifeline suppoit only, subject to the conditions set fnrt
above satisfies the requirements of section i O(a)(3). -
25. Within thirt days ofthis releae of this Ordér, we reuire that TracFone fie with the
Commission a plan outlining the meaures it wil tae to implement the conditions outliRed in ths Order.
This plan wil placed on public notice and wil be considered by the Commission in TracFonels ETC
design:;tion proceedings~ For the foregeing reons midsubject to the conditions above, we find that the
third prong of section i O(ai is satisÏied.
26. Finally, we reject USTelecm's argument thåt TracFone has not requøted forbeance from the -
facilties reuirement in section 254( e) and that without súcb forbeance TracFone cannot tùlfill the
obligations of an ETC. .Specifically. section 254( e) requires that "a caer that receives such supportshaJl
use that support only for the provision, maintenace, and upgrading offaciltìes and services forwbich the
support is intended.;,( ÙSTelecom emphasize that the words "facilties" and- '.services" are joined by the
conjunctive article "and" and therefore an ETC must use any universal sup(;rt received for facilties as
well as services.65 We disagree with USTelecm's interprettion. First, we read this provision together
will the sentence that precedes it. The preceing sentence states that only an ETC "shall be eligible to
receive specifc Federal universal service SUpport,,66 The next sentence, which USTelecom quotes, then
5' 47 C.F.R. § 54.401.
60 Lifeline and Link-Up. WCDocket No. 03-109, Rert and Order and Furer Notice of Proposed Rulemaking, 19
FCC Red 8302. 8305, par. i and Appendix K at Table LB.
61 Id at 8305, par 1.
- 62 FCC an NARUC Lanch "Lif/ine Across America" 10 Raise Awarenes of Liftline and Link-Up Programs,
News Releae, July 26, 2005.
6l 1997 Uniersal Serìce Order. 12 FCC Red at 8"972, par. 370.
64 47 U.s.C. § 254(e).
ti USTelecm Aug 17 EX-Parte atS n.L
- 6C 47 U.S.C. § 25(e) (emphas add~.
11 -
Federal Communications Commission FCC 05-165
reires that "such service", which we, find refers to the speifc univeral 'support from the previous
sentence, be used only for purposes "for which the support is intended." Reading these sentece together
in their entity, we fid that Congr intended that a carrer mus use the uners suppo reived to_
meet the goal of the specific support niechaism under which it was distibuted. For example, a caier
who reeives' speifc Lifeline support must us th support to reduce the price of acce to
telecmmunications services for the eligible customer. Secnd, we note that not all the nominalize verbs
in the sentence quoted by USTelecm, "provision," "maintenance," ard "upgrding," ca be read to apply
to both facilties and service. What for exaple would it mea to "maintain" a "service" apart from the
"facilties"? We also note that the nominalize verbs themselves are joined by the conjunctive aricle
"añd". Therefore, extending USTelecm's logic, any universal support receÍ'ved by a caer must always
be used for the provision, maintenance, and upgrding of both facilties' and seivice. The ten
maintenance and upgrading as generally associated with a caer's network and not with servce itself.
Thus, USTelecom's reading of section 254(e) would require us to interret the term "seJVicej' as surplusage
- a result that must be avoided when the statute admits to other interpretations.67 We find the more
appropriate reading is to consider these terms in the disjuctivo. Thus, we conclude that an ETC receiving
Lifeline support uses tbi- specific universal service Support for the purposes for which it was intended
whea it,reuce the price of the Lifeline seivice by the amount ofthe support.
IV. ORDERIG CLAUSE
27. Accordingly, IT is ORDERED THT, pursuant to sections 4(i), 10,214, and 254 of the
Communications Act of 1934, as amended" 47 U.S.C. §§ 154(í), 160,214, and 254, the ,Petition' for
Forbearace fied by TracFone Wirless, In~. on June 8, 20M, and amended on August 9, 2004 aid
September 24, 2004, is GRAD subject to the conditions set fort above and, on our own motion, we
forbear from enforcing 47 C.F.R § 54.201(1)(d).
FEDERAL COMMICA nONS COMMSSION
Marlene H. Dortch
Secretary
Q .See e.g.. TRW Inc. v. Andews. 534 U.S. 19.31 (2001)-; Du v. Walke. 533 U.S. 167, 114 (2001).
12
Exhibit 5
Federal Communications COmmison Fccos-ioo
Beforethe
FederalCommunicatioDs Commision
Washington, D.C. 20554
)
)
)
)
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)
)
)
Petitioú for Designation as an Eligible )
Telecmmunication's Carier in the State ofF,lorida )
)
)
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) .
)
J
)
)
)
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)-
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In the Matter of
Federal-State Joint Board on Universal Service
TmcFone Wireless, Inc.
Petition for Designation as an Eligible
Telecmmunications Caer in the State of New
, York
Petition for Desigpation as an Eligible
Telecommunications èarrier in the
,Commonwealth OfVirgùiia
Petition for Designation as an Eligible
Telecommunications Carier in the State 'of
Connectlcut
Petition for Designation as an Eligible
Telecmmunications Carier in the
Commonwealth ofMassaebusett
Petition for Designation as an Eligible
Telecmmunications Carier in the State of
Alabama
Petition for Designation as an'Eligible
Telecmmunications Caer in the State of Nor
Carolina
Petition for Designation as an Eligible
Telecommunications Carer,in the,State of
Tennessee
Petition for Designation as an Eligible
Telecmmunications Carer in the State of
Delawar for the Limited Purpse of Offering
,Lifeline Service to Qualified Househòlds'
Petition for Designation as an Elìgible
Telecommunications Caer in the State of New
Hamshire for the Limited Purse of Offerig
Lifeline Service to Qualified Households
Petiti~n for Designation as an El"gible
Telecomiunicaons Caer in the
Commonwealth of Pensylvnia for the Limite
CC Docket No. 96-45
Federal Communications Commision FCC 08-100.
Purpse of Offering Lifelùie Service to Quaified LHousholds )
).Petition for Designation as an E1igible )
Telecmmunications Caer ùi the Distrct of )
Columbia for the Limited Purpose of Offering )
Lifeline Service to Qualified Households )
ORDER
Adopted: April 9, 2008 Released: ApnJ 11, 200S
By the Commission: Commissioners Copps, Adelstein and Tate issuing separte statements.
L INODUCTON
i. In this Order, we con4itionally grat the petitions òfTracFone Wireless, Inc. (TracFone)
to be designated as an eligible telecmmunications carer (ETC), eligible only to reCive universal
service Lifeline support, in its licensed servi~ areas in New York, Virginia., Connecticut, Massachusett,
Alabama, Nort Carolina, Tennessee, Delaware, New Hampshire, Peiisylvanja, and the District ôf
. Columbia, pursuant to section 214(e)(6) ofile Communications Act of 1934, as amended (the Kct).' Due.
, TracFone Wireless, Inc. Petition for Desigation as an Elgibie Teleeømiunicatio1l Carier in the State of New
. York, CC Docket No. 96-45 (filed June 8, 2004) (New York Petition); TracFone WireleSs, fuc. Petition for
Desi~tion as an Eligible Teleoommunications Caer in the CommoRwealth.ofVirginia CC I?ocket No. 96-45
(fied July 21, 20.0) (Virgiia Petition); TrcFone Wireless, Inc. Petition for Designation as an Eligible
Telecommuni~tions Caer in the State ofConne&ticut. CC Docket No. 96-5 (fied Nov. 9, 2004) (COiuecticu~
. Petition); TracF:one Wireless, Inc. ~ètitJon for DeSignaton as an Eligible Telecoimuni~tions Caer in the
Comronwealth of MasSachusett, CC Docket No. 96-45 (fied Nov. 9,2004) (Massachusett Pettion); TracFone
Wireless, Inc. 'Petition for Desigation as an Eligible Telecmnunications Carer in the State ~f Alabama, CC
Docket No. 96-45 (filed N~v. 9,.2004) (Alabama' Petition); TracFone Wireles, Inc. Petition- fòr Designation as an
Eligiòle Telecommi.ications Camer in the State of Nort Carolina, CC Docket No. 96-5 (fied Nov. 9, 2004)
(Nort Caolina Petitin); TracFone Wirless, Inc! Petition for Designatiòll as au Eligible Telecmmunications
Carier in the State ofTeiuessee, CC Docket No. 96-45 (fied Nov. 9, 2004) (Tenessee Petiion); TracFone
Wirless, Inc. Petition for Designation as an Eligible Telecommunications Carer in the State of Delawae for th~
Limited.Puose of Offering Lifeline Service to 'Qualified Households, CC Docket No. 96:45 (fied Nov. 28, 2007)
(Delawae Petition); TrcFone Wireless, Inc, Petition for Designation as an Eligible Telecommunications Caer in
the State of New Hampshir for the Limited Purse of Offerig Lifelùie Service to' QUllified Households, CC
Docket No. 96-45 (filed Nov. 28, 2Q01) (New Hampshir Petition); TracFone Wireles, Inc. Petition for Designation
as an Eligible Telecommunications Carer in the Commonwealth of Pennsylvania for the LimitedPurpose of
Off~rig Lifeline Service to Qualified Households, CC Docket No. 96-45 (fied Dec. i 1,2007) (pensylvana
Petition); TracFone Wirless, Inc. Petition for Designation as'an Eligible Telecommunications Carier in the District
of Columbia for the Limited Purpose of Offerig Lifeline Service to Qualifed Housholds, CC Docket No. 96-45
(fied JaI. 18,2008) (Distrct ofColwnbia Petition). TracFone fied an errm to its New York Petition corrctig.
from four to five, the number of underlying caers it uses to serve subscnber in that Stte. Ertu to TracFone
Wireless, In. Petition for Designation as an Eligible Telecm.unications Carer in the Stae of New Yoi: CC
. Docket No. 96-5 (filed June 14, 2004). TracFoiie late amended its reques for ETC designation in New Yolk and
. Virginia to limit its eligibilty for rédera universal serice support to.the Lifeline progr only. Amendment to
TracFone Wireles, Inc. Pettion for Desigtion as an Eligible Telecommunieations Caer in the State of New
Yor CC Docet No. 96-5, 2 (fied Aug. 16,2004); Amendient to TracFone WirlesS', Inc. Petition for'
Designation as an Eligble Telecmmunications Caer in the Commonweath ofVuginia, CC Docket No. 96-45, 2
(fied Aug 16,2004). TracFone's petition for ET designation in the remaiing states, other than Flda, asdisaied below, wer limited to eligibilty for Lifeline support as originly fied TracFone doe not seek
eligi'bilit for hig-r supor
2
Federa Communications Commision FCC 08-100.
to the Florida Public Serice Commision's asserton ofjurisdieton ovér wireless ETC designations, we
dismiss without prejudice TracFone's petition for designation- as an eligible télecmniunications caer in
Florida 2 On Septeber 8, 2005, the Commision conditionally grted TracFone's petion for
forbearce frm the facilties reuirment of section 21 4( eXt ).3 As discusse below, we now conclude
that TracFone has satsfied the remaining eligibilty requirements of secon 214( eX l) and the
Commission's rules to be designated as an ETC eligible only for Lifeline support (limited ETC).4 We
also approve TracFone's plan for complyin~ with the conditions imposed in the Forbearance Order.s
IT BACKGROUN
A. TheAcl
. 2. Section 254(e) of the Act provides that "only an eligible telecommunications caei:
designated under section 214(e) shall be eligible to receive specific Federal universal service support'"
Pursuant to section 214(e)(1), a common carer designated as an ETC must offer and advertise the
services supported by the fedel1d universal service mechanisms throughout the designted service ar~å.7
3. Section 214(e-)(2) of the Actgives state commissions the primary resonsibilty for
perfonning ETC designations.1 Section 214(e)(6) directs the Commission, upon request, to designate as
an ETC "a common carier providing telephone exchange service and exchange accss that is not subject
to the jurisdiction ofa State commission-.,,9 Under section 214(e)(6), the Commission may, with respect
to an area served by a rual telephone company, and. shall, in aU other cases, designate more th one
common earier as an ETC-for a designated serviee area, consistent with the public interest, convenience,
and necssity, so long as the requesting carrer meets the requirements of section ii4(e)(I).lo Before .
2 TracFoiie Wireless, Inc. Pettion for l?esignatioIt as an Eligiblè Telecommunicaions Caer in the Stae ofFlorida'-
CC Docket No. 96-45 (fied July 2 I, 20(4) (Florid!l Petition), TracFone later amended its reest for ETC
designation in Florida to limit its eligibilty for federai universal serice support to the Lifeline progr only.
Amendment to TracFone Wireles, Inc. Petition for Deignation as an Eligible Telecmmunications Carrer in the
State of Florida, CC DocketNo~ 96-45, 2-(fied Aug. 16,20(4); see para 10 infra (dicussing jurisdiction. of the
Florida Public Service Co:iission).
J Petiion ofTraeFone Wireless. Inc.for Forbearancefrom 47 U.S.C. § 2U(e)(I)(A) and 47 C.F.£ § 54.201(i), CC
Docket No. 96-45, Order, 20 FCC Red 15095 (2005)-(Forbearance Order). Under sectionZ14(e)(IXA) of the Act,
anEfC must offer servce using its. own facilties or a combination. of its own fa¿iltie; and resale of another
carier's service. 47 U.S.C. ~ 214(e)(I)(A).
4 Lifelúie is the univer serice low-income progr tht provides disco~ts to qualified low-income consumers
on their monthly telephone bils. See 47 C.F.R. §§ 54.401-54.409.
s Petition ofTracFone Wireless, Inc. for Forbearce from 47 U.S.c. § 214(e)(I)(A) and 47 C.F.R. § 5420
i (i), CCDocket No. 96-5, Compliance Plan (fied Oct J I, 2005) (TracFone Compliance Plan); Petition ofTracFone
Wireless. Inc. for Forbearance from 47 U.S.C. § 214(e)(I(A) and 41 C_F.R. § 54.20 I (i), CC Docket No. 96-45,Errtum to Compliance Plan (fied Oct 17,2005) (Etu to Compliance Plan) (correcg ils charcterization of
Florida to identitY it asa state with state-impsed certfication and verification requirments for Lifeliae eligibilty).
647 U-S.C. § 254(e)~
.747 U.S.C. § 2J4(eXI); see also 47 C.F.R. § 5420-I(d).
It 41 U.s.C. § 214(eX2); see Promoting Deployment anSubcribership in Unsered Areas. Including Trbal and
Insar Areas, CC Docet No. 96-5, Twelfth.Rert and Orr, Memoradum Opinion and Order, and Fuer
Notice of Proposed Rulemakg. is FCC Red 12208. 1225, pa 93 (2000) (Twelfth Report an Order).
947 U.S.C. § 214(e)(6).
10ld.
3
Federa Communications Commion FCC 08100
designating an additional ET for an ar sen'ed by a ru telephone company,. the Commision must
detenine that the designation is úi the public intere1l . .
B. Commission Requirements for ETC Designation
4. An ETC petition mus contain the followig: (i) a certification and brief sttement of
supporting facts demonstting thatthe petitioner is not subject to the jurisdiction of a state commission;
(2) a certfication that the petitioner offers or intends to offer all seivice designated for support by the
Commission pursuant to secion 254( c) of the Act; (3) a ceification that the petitioner off~rs or intends
to offer the supported serice "either using its own facilties or a combination of its own facilties and
resale of another carrier's seivices;" (4) a description of how the petitioner "advertise(s J the availabilty of
the (supported) seivices and the charges therefore using media of general distribution;" and (5) if the
petitioner meets the definition of a "lUml telephone company" .under sectíon 3(37) of the Act, the identity
of its stu~y area~ or, if the peti~on~t is not a "lUral teleph?oe c~mpany," a detail~ d~ç~ltion of the
geographic seivice are for which it requésts an ETC designation frm the Commission.
5. In the ETC Designation Order, the Commission adopted additional requirements for ETC
designatiøn proceings in which.the Cómmission acts pursant to section 214(e)(6) or"he Act.l)
Specifically, consistent with the recommeridatìonofthe Federal-State Joint Board on Universal Service,
the Commission found that an ETC applicat must demonstte: (I) a co~.mitment and ability to provide
seivices, including providing service to" all custom~rs within its proposed service area; (2) how it wil
remain functional in emergency situations; (3) that it wil satisfY consu.iêr protection and service quality
stdards; (4) that it offers local usage cOmparble to that offered by the incumbent LEC; and (5) an
understading that it may be required to provide equal accss if aU other ETCs'in the designated service
area relinquish thir designations pursuant to section 214(e)(4) of the Act.1( These additional '"
rèqirements.are mandatory for all ETCs designted by the Commission. U ETCs already designated bY'
tle Commission or ETC applicats tht submitted applications prior to- the ef.ecve date of the ETC
Designation Order must make such showings in. their anual certfication filings.
ie¡
II lei
12 See Procedures/or FCC Designati-on o/Eligible Telecommunications Cariers Pursuant to Section 214(e)(6) of
the Communications Act, CC Docket No. 96-45, Public Notice, 12 FcC Rcd 22947, 22948 (1991) (Section 2J4(fJ)(6)
PUblic Notice).
IJ See Federal-State Joint Board on Uniersal Serice, CC Docket No. 96-45, Report and Order, 20 FCC Rcd6371
(2005) (ET Designtion Order); see also Virginia Celular. LLC Petitionior Designation as an Eligible .
Telecommunications Carrier for the Commonwealth o/Virginia. CC Docket No. 96-45, Memoradum Opinion 'and'
Order, 19 FCC Red 1563, 1564, 1565, 1575-76, 1584-85, par. 1,4,27,28,46 (2004) (Virginia Cellular Order);
Highland Cellular. inc. Petition/or Designation as an Eligible Telecommunications Caier for the Commonwealth
a/Virginia. CC Docket No. 96-5, Memoradum Opinion and Order, 19 FCC Red 6422, 6438, par. 1,33 (2004)
(Highland CeIluar Order).
14 See ET Designation Order. 20 FCC Red at 6380, par 20 (citig Federal-State Joint Board on Universal
Serice CC Docket No. 96-45. Recmmended Decion, 19 FCC Red 4259, par. 5 (Fed-8tate 1L Bd. 2004)).
IS 47 C.F.R. § 54.202(a). Becuse Ti:cFone is a pur reeUer eligible for Lifeline support only. we do not require
Tl1cFone to demorie that it safies tie network build-ut and improvement reuireents or to provide a
çefication that it ackowledes that the Commision may reqir it to provide eqal acce to long dice
caers in the event that no other eligble telccinmunicaoii caer is providing equal acc within the secear
16 41.C.F.R. §§ 54.202(b); 54.209.
4
Federal Communications Commision FCC 08-100
: . 6. In addition, prior to designating an ETC pursuant to setion ;214(e)(6)"ofthe Act, the
CommI$ion deterines whether such designation is in the public interest 17 . In the ET Designation
Order, the Commission adopted one set of crteria for evaluating the public inteest for ET designations
for both rural and non-rul areas. ii Speificaly, in detetmining the public interst, the benefits of
increa consumer choice and the unique advantaes and disadvantaes of the applicat's service
offering are considered.I'1 As the Commission noted in the El.Designation Order, however, the same
. factors may be analyzed differently or may wat a different óutcome depending on the speifcs of the
. proposed service area and whether it is mral or non-niål.20
C. TracFone's Petitions
7. TracFone is a non-facilties-based commercial mobile radio seryice (CMS) provider
that offers prepaiíl wireless telecmmunications serices.21 On Jone 8, 2004, TracFone filed a petition
seeking forbearance from section 214(e)(l) of the Act, which requires that an ETC be facilties-based, at
least in part.n Beginning on that date, TracFone filed with the Commission petitions seeking designation
as an ETC only for the ptiose of being eligible to recive universal servce Lifeline support in its
licensed seivice area in New York, Vu:ginia, FI'orida, Connecticut, Masachusett, Alabama, Nort
Carolina, Tenne~see, Delawae, New Hampshire..Pennsylvania, antl the Distrct of Columbia. 23
8. In the Forbearance Order, the Commission conditionally grted TracFone's request for
forbearancè from the facilties-based r~uirements of secon 214( e )(1 )(A) of the Act and section
54.201(i) ofits mles for the purpose of considering TricFone's petitions for limited ETC designation.!4 .
The Forbearance Order require that Tmcfone fie a compliance plan with the Commission explaining
how TracFòne wil implemerit the conditions imposed by the Forbeårane Order.25 TracFone filed its
compliance plan on October 1 i, 2005.26
1747 U.s;C. § 214(e)(6);41 C.F.R. §.54.202(c). See also ET p~ignatlon Order, 20 FCC Red at 6388-96, para.
40-57; Virginia Cellular Order, 19 FCC Red at 1575, pa 27; /fgFi/and Cellular Order, 19 FCC Red at 6431-32,
par 2 i. ..The Commisioi place the buren on the ETC applicat to demonstrte tlat the public interest is served.
~TC Designation Order, 20 FCC Red at 6390, par 44.
II ET Designation O~de¡:" 20 FCC Red at 6389-90, p~. 42-43.
1947 C.F.1t § 54.202(e).
20 ET Designation Order, 20 FCC Red at 6390, par.43. In analyzing the public interest factors in this ince,
there.is no rul/non-rural. distinction because Lifeline support unlike hi~-cost support is not determined based on
whether the serice area is rul or non-ru. See 47 C.F.R. § 54.403.
21 See. e.g.,.~asachusUS Petition at 2,. 3.
n 41 U.S.C. § 214(e)(1).
. D See supra note I and 2.
24 Forbeaance Order, 20 FCC Red at 15098-99, par 6. Additionally, on its own motion, the Commission forbore
from secion 54.20 i (d)(1) ofits rules, which mirors secion 214(e) of the Act, requirng that II be facilties-
based at lea in pa lei at 15098.0.2.
II Id. at 15105, par. 25.
26 See generally TrcFone Compliance Plan; Ertu to Compliance Plan.
5
Federal Communications Commiion FCC 08-100
m. DISCUSSION
A. . Commission Authonty to Perform the ETC Designation
9. TracFone has demonstted that, except for the Florida Public Servce Commission, the
relevant stte cómmissions lack authority to perfomi the requesed limite ET designations, and the
Commission has authority to considerTracFone's petitions under section 214(e)(6) of the Act Each
petition includes an affrmative statement from the relevant state commission providing that ETC
designation should be sought frm the Commission.27 Accrdingly, we find the relevant state
commissions lack jurisdiction to designate TracFone as an ETC and that this Commission therefore has
authority to perfomi the reuested limited ETC desig~ations under section 214(e)(6).28
10. In April of this year, the Florida Public Service Commission found tñat due to a change
in Florida state law, it "now ha(s) jurisdiction to consider CMR applications for ETC de~ignation."29. In
light of this development and becuse section 214( e )(2) of the Act gives state commissions the primar
responsibilty for performing ETC designations, wediSmiss without prejudice the petition fied by
TracFone seeking designation as an ETC in Florida. TracFone may 'fe-file its petition with the Florida
Public Service Commission. Should the Florida Public Service Commision consider grting a petition
by TracFone for designation as a limited ETC in Flarida, we would epcourage it to reuire TracFone to
adhere to the compliance plan we approve herein. ..
B. Analysis ofthe Eligibilty Reqùirem~nts
. J i. Offeringth~ Services Designated for Support. . TracFone has demonstted, though the
required certfications and related filings, that it now offers or wil offer upon designation as a limited
ETC the services. supported by the Lifeline progr.30.
12. Offering the Supported Services Using a Caer's Ow Facilties. The Commission
previously grated.TracFone forbeance from the facilties requirement for purposes of this limited ETC
designation, permitting TracFOre to offer the supported services.vi~ resale only.31 .
. 13. Advertising the Supported Services. TracFone has demonstrated that it satisfies the
requirement of section 214(e)(I)(B) to advertise the availabilty ofthe supportd services and the related
chargès "using media of general di~ibution:')2 TraeFone has also stated that in compliance with the
27 E.g.. New YorlP.etition at 4 and Exibit 2. .
28 41U.S.C. § 214(e)(6).
29 Petíion of Alltel Communications. Inc. for Designation as Eligible Telecommunrcations Carrier (ETC) in Certain
Rural Telephnne Company Study Areas Located Partially in Alltel's Licened Area andfor Redefinition of those
Study Areas. PSC-07..288-PAA-TP. Notice of Proposed Agency Action Order Finding Authonty to Consider
Applications By CMR Providers For ETC Designation, 2001 WL 1029436 (pIa. P.S.C. Apr. 3,2001). The Apnl
order wa a proposed agency action. which was made final by a consummating order on June 7, 2001. See Petition
of AI/tel Communications. Inc. for Designation as EJigibleTelecommunications Carrier (ETC) in Ceriain Rural
. Telephone Compan Study Areas Located Partially in Alliel's Licensed Area andfor Redefmition of those Study
Areas. PSC-7-o48IA-eO-TP, Amendatory Order. 2001 WL 1774614 (Fla. P.S.C. Jwie 7. 2001).
3041 C.F:R. §§ 54.4IO(a). 54.IOI(aXl)-(aX9); ~ee. e.g., New York Petition at 5-lt In parcular, we disagree with
èommente~ who ared that TracFone ca6t offer tolllùnitation servce. See, e.g., TrcFone Wireless, Inc.
Petition for Des~gnation as an Eligiòle Telecmmuncations Caer in the State of New Yode CC Docket No. 96.
45. Comments or IDS Telecmmwiicaall Corp., at 9.11 (filed July 26, 2004). We fmd th the prpaid natue of
TracFone's serce offeig work as an effective toll contrl. See iria'pai is.~ . . .Forbearance Order, 20 FCC Red at 1509&. par. 6.
32 47 U.s.C..§ 214(e)(I)(B); see, e.g.. New York Petition at 8.
6
Federal Communications Commision FCCOa-lOO
Commission's Lifeline rues, itwill advertise the availabilty.of Lifeline servce in a manner renâbly
designed to reach thoi¡e likely to qualitY for those service?)
14. Additional Eligibility Requirments. TracFone either satisfies the applicable eligibilty
requirments set fort_ in the ETC Designation Order, described above,'. or must make such showigs in
its first annual report under section 54.209 of the Commission's rules.'s
C. Public Interest Analysis
15. We find that TracPone's universal service Lifeline 9fferig wil provide a variety of
benefits-to Lifeline-ligible consumers including increased consumer choice." high-quality seice
offenngs,J1 and mobilty.ii! . In addition, the prepaid feature, which essentially functions as a toU control
feature, may be an attctive altej;ative to Lifeline-eligible consumers who are concerned about usage
charges or long-tenn contrcts. The Pennsylvania Offce of Consumer Advocate and the National
Emergency Numbers Association Keystone Chapter assert how:ever, that TracFone is not complying with
Pennsylvania's Public Safety Emergency Telephone Act (the Pennsylvania Act), which requires that
wireless providerS collect a wireless E911 surcharge aid remit the money to Pennsylvania's Wireless ß.
911 Emergency Fund.)!l The Nati9n~1 Emergency Numbers Association (NA) furter asert that
TracFone's actions in Pennsylvania reflect "patterns of behavior" evidenced "in several other states:,40
TracFone's reply assert, inter alia, that the allegations set fort in the NEA KeystoneIAOCA Joint
Co~ments are not relevant to TracFone's qualifications to be designated as an ETC and are a question of
3J 47 C.F.R.§ 54.405(b); see, e.g., Petitions for Designation. as an Eligible Telecmmunications Carer in the State
of Connectcut and the COnionwealth of Massachusett, CC Docket No. 96-5, Reply Comments ofTracFone. Wireles:, Inc., at 10 (fled Dec. 29, 20()4). .
J. See supra pa. 5.
3S ET Designation Order, 20 FCC Red at6380~par. 20; 41 C.F.R. §§ 54.201(a), S4.209. Forexanple, TracFone
has committed to provide hrgh-tuality sèrvce, as demonstrte by committing to comply with the CoTÌumer Coe
for Wirless Service of the Cellular Telecommunicationsmdustr Association (CTIA), iid to serve the designate
area within a reasonable time. See, e.g., New York Petition at 13-14. Because TracFone is a pure reeUer, eligible
for universal service Lifeline support only, we do not require it to demonstrte that it satifies the network build-out
and improvement requirements, Of to provide a certifcation that it acknowledges that the Commission atay require it
to provide equal áccess to long distace caiers in the event that no other eligibl-e telecommuncations carr is. -
providing equal access within .the serice area. -
36 For example, TracFonë's uni-versal servi~ offering wil provide benefits to customers in situtions where they do
not have access to a wireline telephone. See. e.g., New York Petition at 12, 14.
J7 For example, TracFone committed that it wil comply with the Consuer Code for Wireless Service of the CTI.
See. e.g., New York Petition at n.
JI See e.g., New York Petition at 10-14. As noted in the PSC Alabama OrdeF, the mobilty ofteleconuunications
asists consumers in rural areas who oftn must drive signifcat distaces to places of employment, stores, schools,
and other locations. Public Serice Cellular. Inc..p ellion for Designaion as an Eligible Telecommunicaions
Carrier in the Slales of Georgia and Alabama, CC Docket No. 96-5, Order, 20 FCC Red 6854, 6861, par 25
(Wirline Compo Bur. 2005) (PSC Alabama Order). Moreover, the -availabilty of a wirles unversal service
offerig alo provides accs to emergency servce that ca mitigate the unque risks of geogrhic isolation
. asociated with living in rul communities. Id.
39" TiacFone Wireles, me. Petiton for Designation as an Eligible Telecmmunications Caer in the
Commonweath of Penlvaia. Joint Comments of th Pensylvaa Offce of Consuer Advocate and the
National Emergency Nwnber Association, Keyne Chapter, CC Docket No. 96-5, 5-6 (fied Feb. 8, 2008)
(NA KeystoneI AOCA Join Comments).
40 See Letter from James R. Hobsoii Counel for the National Emergency Numbe AsoCiation, to Marlene H.
Dorth, Secta, FCC. CC DocketNo, 96-5,1-3 (fied Apr. 3, 2001) (NA Apr. 3, 2008 Ex'Pare Lettec).
7
Federa Communications Commision FCC 08-100
stte law. not commision regulation:41 TracFone fuer denies dit it is in violation of the Pennsylvaiia
Act, and asser that the larger. question of stte 91 I funding requirements is more appropnateJy addresed
"at the natonallevel.rl2 . .
16. We disagree with TracFone and find compliance with 91 1Æ911 reuirements relevant to
the public interes in this instace. In the Forbearance Order, the Commission expressly conditoned its
grnt of forbearnce from the facilties requirement of section 214( e) of the Act on TracFone's
compliance with E9 I I requirements applicable to wireless resellers:o The Commission adopted these
conditions because of the unique circumstances presented by TracFone's petitions for limited ETC
designation for Lifeline support.... The Commission further require TracFone to submit a plan outlining
meaures to implement the conditions imposed in the Forbearance Order. and stated the Commission
would consider the plan in deciding whether to grat TracFone's petitions for limited ETC designatioo:s
Given these circumstaces, and in light of the concerns raised by NENA and the Pennslvania Offce of
Consumer Advocate, we ~nditioii TracFone's designation as an ETC eligible fOf LifeJine support ùi each
state on TracFone's certification that it is in full compliance with any applicable 91 1Æ911 obligations,
including obligations re~ating to the provision, and support, of 911 and E91 i service.4' Subject to this
condition, we find, on balance, that the advantages of designating .TracFone as a limited ETC in the
designated service area outwei~h any potential disadvantages!l . " "
D. Designated Servce Areas
i 7. Based on the foregoing1 we hereby designate TraFone as a limited ETC, eligible only for
Lifeline support in its lìcesed service areas in New York, Virginia, Connecticut, Masachusett,
Alabama, Nort CarqIina, TenneSsee; Delaware, New Hampshire~ Peny-Ivaiia, and the Disict of
Columbia!a In designating TracFone as a limited ETC. we clartY that TracFone's designated service
areas do not enoompass federally~recognized tribally-ownedlands...9
-CI Petition for Designation as an Elìgible Telecommunications Carier in the Commonwealth of Pennsylvania, Reply
Comments ofTracFone Wireless, In"c., CC Docket No. 96:45, 2-5 (filed Feb. 25, 2008).
42.Jd. at 5-9.
43 See Forbearance Order, 20.FCC Red at 15102, para 16; infra at par. 20'-22.
4-C. See Forbearance Order, 20 FCC Rcd at 15102, pii 16. The Commission noted that TracFooe's Lifeline-
supported ~erice may well be the customers' only means of accessing emergency personnel. Jd. Given the
potential grvity of the har ifTracFone's Lifeline customers canot obtain access to emergency services, the
Commission adopted the conditions to protect Lifeline cutomers. Jd.
-cs Id. at-IS LOS, para. 25.
46 See NENA KeystoneIAOCA Ioint Comments; NENA Apr. J, 200S Ex Parte Letter.
47 The Commission has already found that any effect on the wiiversaJ seivce fud would be minùnal, lùnited to the
Lifeline progr, and outweighed by the benefit of increaing eligible parcipaton in the Lifeline progr.
Forbearance Ocder, 20 FCC Red 15103..4, par 17. In addition, we need not perfonn a creakimming analysis
becuse TracFoDe is seekig to be eligible for.Lifeline s':pport o~iy.
. 4. Under th limited ETC designatioIL TracFone will not be eligible for support for Lin Up or toll-limitation
serice under the low-inç(me progr nor wil it be eligible for bigh-cst supprt or for schools and libries and
rul health cae support as an ETC. Non-ET, however, may paricipate in cein aspec of the scools and
libraes or rura health ca progr. See Forbeaance Order, 20 FCC Red at 15097, par 3 &. D.12.
.., TracFone expresly states that it does not reuest ET designaton for trbal lands. Pettions for Desigation as an
Eligible Telecommunications Caer in the State of Alab Nort Caolina, iid Tenessee, CC Docket No. 96-
45. Reply Comments ofTracFone Wireless, Inc., at n.22 (filed Feb. 2, 2005).
8
Fedend Communications Commission Fccosioo
E. Regulatory Oversight and Compliance Plan
18. Under section 254(e) of the Act TracFone is require to us the spifc universal service
support it reives "only for the ¡roviion, maintenance, and upgrding of facilties and service for
which the support is intended:,s An,ETC reiving Lifeline support uses that support as intended when
it reduce the price of its telecommunications service by the amount of the support for the eligible
consumer.Sl Lifeline assistance shall be made available to qualifying low-income consumer as soon as
the universal service fund Administtor certifies that TracFone's Lifeline service offering satifies the
crteria in our rules and complies wiU1 the conditions imposed under the Forbearance Order.51 In
addition, TracFone must report certin ¡nfonnation to U1e Commission and the Universl Service
Administrative Company (USAC) pursuant to section 54209 ofU1e Commission's rules.53
19. We find U1at reliance on TracFone's commitments to meet U1ese requirements is
reaSonable and consistent with the public interest and the Act and U1e Fift Circuit deeision in Texas
Offce of Public Utilty Counsel v. FCC.54 These requirements wil furter U1e Commission's goal of
ensuring that TracFone satisfies its obligation under section 214( e) of the Act to provide the servces
supportd by the Lifeline program thrughout iis designated service areas.
20. In addition;we note that, in the Forbearance Ordèr,the Commission imposed additional
requiren:ents on TracFone, and orderim that TracFone fi'e a- compliance plan detailing how itwil adhere .
,to these requirements. The additional requirements obligate TracFone to implement certin 911 and E911
requirements and to establish cert' administrtive procures to safeguar against wast~. frud, and
abuse in the Lifeline progFa.
21. Specifically, the Commission conditioned forbearace from the facilties. requirement for
Iimited ETC designåtion upon TracFQne: (a) providio'g its Lifeline customers with 911 and enhanced 911
(E911) access regMdless of activation sttus and availabilty of prepaid minute; (b) providing its Lifeline
~Ustomers with E911-compliant hadsets and replacing, at no additional chargë to U1e customer, non-
compliant handsets of existing customers who obtain Lifeline-supportd service; (c) complyig with
conditions (a) and (b) as of the. date' it provides Lifeline s~rvice;,(d)obtaining a certification from each
Public Safety Answering Point (PSAP) where TracFone provides Lifeline service confirming that
TracFone Complies with condition (a); (e) requiring its èustomers to seff-crtify at time of service
5047 U.S.C. § 254(e). Becuse TracFone is not eligible to receive high-cst suppot1 we do not reuie it to provide
high-cost certifications under §§ 54313 and 54.314 of our rules. See 47 C.F.R. §§ 54.313, 54.314.
51 See Forbearrmce Order, 20' FCC Rccfat IS 105-06, par. 26.
52 See 47 C.FJt. §54.401(d). As noted above. we find that TracFone's service offering meets the criteria for service
and functionality contained in our rules. See supra par. II & n.29. We also approve TracFone's compliance plan,
rinding that it is adequate to implement the conditions of the Forbearance Order. See infa par 21.
53 See 47 C.F.R. § 54.209(a) (specifYing the infonnation to be included in the anual report submitted by ETCs);
EI Designation Order, 20 FCC Red at 6400~02, par. 6&-69; see a/so- Virginia Cellular Order, 19 FCC Rcd at
1584, par. 46 & n.140 (anticipatig that anual submissions wil encompas only the ETC's designate servce
area). As noted abve, as a pur reeUer eligible for Lifelme suprt only, we do not requir TraçFone to reprt on
netwoik búild-out and ùnprovements or to certfY that it acknowledges tht the Conuission may requir it to
, provide eql acces to long díee caer in the event tht DO other eligible telecmmunicaons carer is
providig equa acc within the servce ar See sura note 15.
S" In TOPUC, the Fift Cirit held that tht nothing in secion 2 14(e)(2"of the Act prohibits sttes frm imposing
additonal eligibilty conditions on ETC as par of their cIesignation pros. See Tex Offce of Pubüc Utilit
Counelv. FC 1&3 F.3d393,417-18 (SdaCìr. 1999)(7VPUC). Coistntwith tbholding, we Ïmd that nothg
in secon 214(e)(6) prohibit the Commion frm impoing additional Condition on ETCs when such
deignations fal under our juriction.
9
Federal CommunicatioDS Commision Fccos.ioo
activation and anually thereafer that they are the bead of bouse bold and reive Lifeline-upported.
service only frm TracFone; and (t) esblishing safeguds to prevent its cusmers frm reciving
multiple TracFone Lifeline subsidies at the sae address.55
22. The Commission caefully craed the conditons of the Forbearance Order to mee
importt regulatory goals. We decline, therefore, to modifY thes conditions as requesed by TracFone
in grnting the ETC designation requests at issue herein.56 Consequently, TracFone must obtain the
required certification from each PSAP where it wil provide Lifeline service.57 Moreover, TracFone mus
continue to provide access to "basic and enhanced 91 1 servce" as described in section 20.18(m) of our
I1les.Sl Finally, TracFone must "distribute its LifeJine serice directly to it Lifeline customers.',s9
23. After careful review of the compliance plan and the recrd, we find the compliance plan
adequate to implement the original and unmodified conditions of the Forbearance Order.60 We, .
therefore, approve the compliance plan as discussed in this Order." .. . .Forbearance Order, 20 FCC Rcd at 15098-99. para. 6.
56 In its complianct' .plan, TracFont' requests two modifications to tht' public safety conditions~ . First, TracFone
requests that,.in :lieu of obtaining cerification from ea PSAP confuming access to 911 and E9 I I, that it be
pt'rmitted to rely on the underlying caeÌs current quarrly E9 I I reort filed with tle Conuission together with a:
certifcation from TracFone that its Lifeline c,Ustomers in the rt'levant maret wil bo served only by such caer(s).
TracFone Compliance Plai at 1-10. Second, TracFone requests that it be allowed to offer Lifeline service wht'rt'
either 9 i I or E9II seriee is available. Id. at 11-14. Fiier, TracFone state in its applications tht it will
implement, upon designation as an "ETC, the L.ifeiine certfication and venfication procedures set fòrt in an a" parte
presentation dated July" 13, 2005. See, e.g., Dela:w~ Petition at 12; Distrct ofColwnbia Petiton at 12- J 3; Letter
"from Mitchell F. Breer, Counsel for TracFont', to Marlene H. Dortch,- Secreta, FCC, WC Dociet 96-45, Attch.
(July 13, 2005). TrcFone does not expljcitly note. however, that the procedures set fort in tht docuent wererejected, in par in the Forbearance Orde. See Forbearance Order, 20 FCC Roo at is 104, par. 19; Distret of
Columbia Public Service Collission Reply Conuents, CC Docket No.. 96-45, at 4-5 (fied Mar. 13, 2008)
(Distrct of Columbia Rt'ply). Out of an abundance of caution, we treat this omisSion as à reqest for modifcation
of the conditions of the Forbearance Order. "
57 See Fo~bearance.(jrder, 20 FCC Rcd at 15102, pa. 16. We believe this requiremt'nt is suffcient to addres the
Distrct of Columbia Public Service Commission's conee that the Distrct of Columbia Offce ofUnitieq
CommWlications bt' notified that TracFone is providing Llfeiint' serviee in the District of Columbia. "See Distret ofColumbia Reply at4." .
"51 41 U.S.C. § 20.18(m) (emphasis added). We also note that CMR providers are reuired to "trmit all wireles
9 i I cJllls without respect to theÍf call validation proce. . .." See 41 C.F.R. § 20. i 8(b). This rule addreses the
concerns of the District ofColwnbia Public Serice Commission regading the 91 I capability ofTracFone handsets
"regarles of activation statu or minute availabilty." See Distct of Columbia Reply at J; Revision of the
Commission's Rules to Ensure Compatibilty with Enhanced 9 J / Emergency Callng Systems, CC Docket No. 94-
102. RM-8143, Report and Order and Furer Notice of Proposed Rulemaking, i i FCC Red 18676, 18691-99,
par. 29-46 (1996).
59 Forbearance Order, 20 FCC Rcd at 15104, par 19.
(i In parcular, we disagree with USTelecm. who question wheter TracFone wiii reive 12 month of Lifeline
support if a subscrber who chooses the amual prepaid plan uses all of the initial minutes in tle fIrt month or if a
.subscribt:r under th~ "N 1 0" plan reee feWer than 12 monthly coupons. See Petition ofTracFone Wirles,
Inc. for Forbece from 41 U.S.C. § 2I4(e)((A) and 47 C.F.R § S4201(i), CC Dockc: No. 96-45, Comments of
the Uriited States Telecm Association, at 3. 4 (fied Nov. 28, 2005) (USTelecm Compliance Plan Comments). We
fmd that TràcFone's plan for seekig reùnburement are consisent with our Lifeline rules and proclÍes. Pettion
ofTracFone Wireles, bic~ for Forbce from 41 U.S.C. § 214(e)(l)A) and 47 C.F.R. § 54.20 I (i), CC Dokc:
No. 96-5, Reply Comments ofTracFont' Wireless, Inc., at 6, 1 (fi1ed Dec. 12,2005). Moreover, desite comments
to the contr, we ar satisfied that TracFone will pa though all Lifeline Stpport as reired by our roles. See
USTelecom Compliaace Plan Comments.at 1-2. Finlly, we fid that wé do not nee to clartY how Lifeline surt
. (contiued...)
io
Federa Communications Commisio'o FCC 08-100
24. Finally, we note that the Coßlmision may institute an inquir on its own motion to
exaine any ET's recrds and documentation to ensre that the univerl seice support an ET
receives is being used for the purpse for which it was intende€ 61 TracFone wil be reuir to provide
such records and documentation to the Commision and USAC upon request IfTracPone fails to fulfll
the requirements of the Act, our rules, the tenns of ttis Order, or the conditions imposed under the
Forbearance Order after it begins reciving universal service Lifeline support the Commission may
revoke its limited ETC designation.61 The Commi~ion may also assess foifeitures for violations of its
rules and orders.63
IV. AN-DRUG ABUSE ACT CERTIICATION
25. Under section 530 I ofthe Anti-Drug Abuse Act of 1988, no applicat is elìgible for any
new, modified, or renewed instrument of authorizatin from the Commission, including authorizations
issued under section 214 of the Act, unless the applicant certifies.that neither it, nor any pa to its
application, is subject to a denial of federl benefits, including Commission benefits.64 TracFone has
provided a certification consistent with the requirements of the Anti-Drug Abuse Act of 1988.6s We find
that TracFone has satisfied the requirements of the Anti-Drug Abuse Act of 1988, as c()difed in sections
1.2001-1.200J of the Commission's rules.66
V. ORDERIG'CLUS~
26. Accordingly, IT is ORDERD that, pursuant to.the authority contained in section
, Z14(e)(6) of the Communications Act, 47 U.S.C.'§- Z14(e)(6), TraèFone Wireless, Inc. is DESIGNATED
AN .ELIOIDLE TELECOMMICA nONS CARRR eligible only for Lifeline support in its licensed. . . .
. (:..continued frm previous page)
will be calculated and distrbuted becaUS& we ar confident that USAC is capable ofhandlÙlg any admÙlistrtive
issues preente by TracFone's Lifeline offerng. See Forbearance Qrde, 20 FCC Red at 15104, par. 20 (sttig
that the ETC designation order would addrs how LifeliIe Support wil be calculate and disbuted ¡fthe prepaid
natue of the offerg.reui.res such clarfication). The Forbearance Order also addresed the issue of double
reovery, noting that, although the Commission has in the past declined to extend ET statu to pure reeUers due to
concern about double recovery of universal service suppòrt.TraGFone's CMRS wholesle providers are not subject
. to s.ectio? 2~ i (c)(4) wholesale obli~ations and so the' reold :¡ervces pr~ablY do not reflect a reduction in price
due to Lifelme support See id. at 15100-01, par. 12. We, therefore, dismiss comments to
the contrry. See, e.g..
Comments ofVerizon, Federal-State JOÙlt Board oq Universal Service; TracFone Wirles Inc., Petition for
Designtion. as an Eligible Telecmmunications Carrer in the State of New York, Petition for Forbearnce from
Application of Section 214, CC Docket No. 96-45 at 9 (filed July 26, 2004).
6'47 U.S.C. §§ 220, 403.
62 See Federal-State Joint Board on Universal Serice, Wester Wireless Corporation Petitionfor Preemption. of an
Order of the South Dakota Public Utilties Commission, CC Docket No. 96-45, Declaratory Ruling, 15 FCC Red
15168, 15174, pa. 15 (2000); 47 U.S.C. § 254(e); see also Forbearance Orde, 20 FCC Rcd at 15099, pai 6,
n.15.
63 See 47 U.S.C. § 503(b).
(i 21 U.S.C. § 862; 47 C.F.R. § 1.2002(a)-). Section L.Z002(b) provides that a "par to the application" shall
include: U( 1) If the applicat is an individual, that individual; (2) If the applicant is a corpration or 1Uincorprated
'association, all offce directors. or persons holdig 5% or more of the oulsdig stock or shares (votig and/or
nonvotig) of the petioner and (3) If the applicaon is a paiermp, all non-limite parers and any limited
parer holdÙlg a 5% or more interes in the parership," 47 C. F. R. § L2002(). See Section 2U(e)(6) Public
Notice 12 FCC Red at 22949.
(i See e.g., New York Petition at Exibit L
66 47 C.F.R. §§ 12001-2003.
11
Federa Communications C9mmision FCC 08-100
service ar in New York Virginia, ConnecCut Maschuset, Nort Calin¡i Alaama, Tennes,
'Delaware, New'Hampshire, Pennlvaia. and the Disct of Columbia to the exnt descnòed in thiS
Order and subject to the conditions set fort herein.
27. IT is FUTIR ORDERE tJat puruant to the authority contained in section
214(eX6) of the Communicaons Act 41 U.S.C. § 214(eX6), TracFone Wireless, Inc:s petition for
eligible telecmmunications carrer designtion in the state of Florida is DISMISSED WIOUT
PREICE to the extent desribed herin. .
28. IT is FUTIR ORDERD that TracFone Wireless, Inc. WIL SUBMIT additional
information pursuant to section 54.209 of the Commission's rules, 47 C.F.R. § 54.209, no later than
OctQber 1,2008, as part ofits annual reportng requirents.
29. IT is FUTIR ORDERED that pursuant to section Ll03 of the Commission's rules,
47 C.F.R. § 1. 03, this Order SHALL BE effective upon release.
FEDERAL COMMCATIONS COMMSSION
Marlene H. Dortèh
Secreta
. ~
",'
12
Exhibit 6
State Utilty Commission Decisions Designating TracFone Wireless, Inc.
as an Eligible Telecommunications Carrier
STATE DECISION
Florida Application for designation as an eligible telecommunications carrier (ETC) by
TracF one Wireless, Inc. for limited purpose of offering lifeline service to qualified
households, Order No. PSC-08-0418-PAA-TP, Docket No. 070586-TP (Florida
Pub. Servo Comm'n: June 23,2008)
Georgia Application of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carrier in the State of Georgia for the Limited Purpose of
Offering Lifeline Service to Qualified Households, Order, Docket No. 26282
(Georgia Pub. Servo Comm'n: May 6, 2008)
Ilinois TracFone Wireless, Inc. Petition for Designation as an Eligible Telecommunications
Carrier in the State of Ilinois for the Limited Purpose of Offering Lifeline Service
to Qualified Households, Order, Docket No. 09-0213 (Ilinois Commerce Comm'n:
September 10, 2009)
Louisiana Petition of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carrier in the State of Louisiana for the Limited Purose of
Offering Lifeline Service to Qualified Households, Order, Docket No. S-31 097
(Louisiana Pub. Servo Comm'n: December 22,2009)
Maine TracFone Wireless Inc, Request for Designation as an Eligible Telecommunications
Carrier, Order, Docket No. 2009-263 (Maine Pub. Utilities Comm'n: February 9,
2010)
Maryland Letter from Terry J. Romine (Executive Secretary, Maryland Public Service
Commission) to Debra McGuire Mercer, Greenberg Traurig, LLP) noting that the
Commission approved TracFone Wireless, Inc.'s Petition for Designation as an
Eligible Telecommunications Carier, August 19, 2009,
Michigan Application of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carrier Pursuant to Section 214(e) ofthe Telecommunications
Act of 1996, Order, Case No. U-15625 (Michigan Pub, Serv, Comm'n: October 21,
2008)
Missouri Petition of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carrier in the State of Missouri for the Limited Purpose of
Offering Lifeline Services to Qualified Households, Order, Case No. T A-2009-0327
(Missouri Pub. Servo Comm'n: August 26,2009)
New Petition by TracFone Wireless, Inc. for Designation as an Eligible
Jersey Telecommunications Carier in the State of New Jersey for the Limited Purpose of
Offering Lifeline Services to Qualified Households, Order of Approval, Docket No.
T009010092 (New Jersey Board of Pub. Utilities: April 27, 2009)
Ohio In the Matter of the Commission Investigation of the Intrastate Universal Service
Discounts, Supplemental Finding and Order, Case No. 97-632-TP-COI (Ohio Pub.
Utilities Comm'n: May 21, 2009), as modified by Entry on Rehearing (July 8,
2009)
Texas Application of TracFone Wireless, Inc, for Designation as an Eligible
Telecommunications Carrier in the State of Texas for the Limited Purose of
Offering Lifeline Service to Qualified Households, Order on Rehearing, Docket No.
36646 (Texas Pub. Utility Comm'n: June 18,2009)
West TracFone Wireless, Inc, Petition for consent and approval to be designated an
Virginia eligible telecommunications carrier, Recommended Decision, Case No. 08-1605-C-
PC (West Virginia Pub. Servo Comm'n: Feb. 25, 2009) (Final on March 17,2009)
Wisconsin Petition of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carier in the State of Wisconsin, Final Decision, Docket No.
9385-TI-I00 (Wisconsin Pub. Servo Comm'n: May 20, 2009)
Exhibit 7
Federal Communications Commission FCC 09-17
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
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In the Matter of
Federal-State Joint Board on Universal Serice
TracFone Wireless, Inc.
Petition for Designation as an Eligible
Telecommunications Carer in the State of New
York
Petition for Designation as an Eligible
Teleconununications Carrer in the
Commonwealth of Virginia
Petition for Designation as an Eligible
Telecommunications Carer in the State of
Connecticut
Petition for Designation as an Eligible
Telecommunications Carer in the
Commonwealth of Massachusetts
Petition for Designation as an Eligible
Telecommunìcations Carrier in the State of
Alabama
Petition for Designation as an Eligible
Telecommunications Carier in the State ofNort
Carolina
Petition for Designation as an Eligible
Telecommunications Carrer in the State of
Tennessee
Petition for Designation as an Eligible
Telecommuncations Carier in the State of
Delaware for the Limted Puose of Offering
Lifeline Service to Qualifed Households
Petition for Designation as an Eligible
Telecommuncations Carier in the State of New
Hampshie for the Limited Puose of Offerig
Lifeline Servce to Qufied Households
Petition for Designation as an Eligible
Telecmmuncations Carer in the
Commonwealth of Pennylvania for the Limited
CC Docket No. 96-45
Federal Communications Commission FCC 09-17
Puse of Offerig Lifeline Service to Qualified )Households )
)
Petition for Designation as an Eligible )
Telecommunications Carer in the District of )
Columbia for the Limited Pmpose of Offerig )
Lifeline Servce to Qualified Households )
ORDER
Adopted: March 4, 2009 Released: March 5, 2009
By the Commission:
i. INODUCTION
1. In this order, we grant a petition for modification fied by TracFone Wireless, Inc.
(TracFone). TracFone seeks modification of a condition imposed as par of
the Commssion's grt of
TracFone's request for forbearance allowig it to be designated as an eligible telecommunications carrer
(ETC) for the pmposes of providing low-income unversal service support to its cutomers under the
Lifeline progr.
1 Specifically, we grant TracFone' s request to modfy the requirement that TracF one
obtain a certfication from each public safety answering point (PSAP) where it provides Lifeline service
confirming that TracFone provides its customers with access to basic and E911 service? TracFone must
still request such certification from each PSAP within its service area; however, if, within 90 days of
TracFone's request, a PSAP has not provided the certification and the PSAP has not made an affrmative
finding that TracFone does not provide its customers with access to 911 and E91 I service within the
PSAP's servce area, TracFone may self-certfy that it meets the basic and E91 1 requirements. Grt of
ths request wil allow TracFone to provide Lifeline service to low-income consumers with its service
areas in a timely maner, while also ensuring that TracFone's Lifeline customers have access to necessar
91 1 services.
i See Petition for Modification of Public Safety Answering Point Certfication Condition by TracFone Wireless,
Inc., CC Docket No. 96-5 (fied Nov. 21, 2008) (TracFone Petition); see also Petiion ofTracFone Wireless,Inc.
for Forbearancefrom 47 U.S.C. § 214(e)(I)(A) and 47 C.F.R. § 54.20/(i), CC Docket No. 96-45, Order, 20 FCC
Rcd 15095 (2005) (TracFone Forbearance Order); Fede/'al-State Joint Board on Universal Service, TracFone
Wireless, Inc. Petitionfor Designation as an Eligible Telecommunications Carrier in the State of
New York et at.,
CC Docket No. 96-45, Order, 23 FCC Rcd 6206 (2008) (TracFone ETC Designation Order) (designating TracFone
as an ETC for Lifeline support only in New York, Virginia, Connecticut, Massachusetts, Alabama, Nort Carolina,
Tennessee, Delaware, New Hampshire, Pennsylvania, and the District of Colwnbia). Under the Lifeline program,
low-income consumers receive discounts on their monthly charges for local phone service. 47 C.F.R. § 54.401. In
its initial comments on the petition, the Pennsylvania Public Utilty Commission (pennsylvania Commission) sought
an extension of the pleading cycle, seeking four additional weeks for comments and two more weeks for reply
comments. Pensylvania Commission Comments at 2. The Pennylvania Commission fied comments and reply
comments, as well as an ex parte fiing in response to the TracFone Petition. See infra note 10; Letter from Joseph
K. Witmer, Assistant Counsel, Pennsylvania Commission Law Bureau, to Marlene Dortch, Offce of
the Secreta,
Federal Communications Commission. CC Docket No. 96-45 (dated Jan. 29, 2009) (pennylvania Commission
Janua 29i1 Ex Pare Letter). We fid that the Penylvania Commission was able to provide comment on the
TracFone Petition without the need for an extension of the pleading cycle. We therefore deny the Pennsylvania
Commission's request.
2 TracFone Forbearance Order, 20 FCC Rcd at 15 102, para. 16; see also TracFone ETC Designtion Order, 23
FCC Rcd at 6215, para. 22 (declining TracFone's request to modify the forbearance condition reiring TracFone to
obtain the required certfication from each PSAP).
2
Federal Communications Commission FCC 09-17
n. . BACKGROUN..
2. Section 254(e) of the Communcations Act of i 934, as amended, (the Act) provides that
"only an eligible telecommunications caier designted wider section 214(e) shall be eligible to receive
specific Federal wiiversal service support.',) Pursuant to section 214(e)(l) of the Act, a common carer
designated as an ETC must offer the servces supported by the federal unversal serce mechanisms
either using its own facilties, or a combination of its own facilities and resale of another carer's
servces.4
3. TracFone provides prepaid wireless services on a resale basis only, rather than providing
service over its own facilties.s On September 8, 2005, the Commission conditionally granted TracFone's
request for forbearance froin the facilties-based requirement of section 214(e)(l) of the Act.6 Among
other things, the forbearance grant was conditioned on the requirement that TracFone obtain a
certfication from each PSAP where it provides Lifeline service confirming that TracFone provides its
customers with access to basic and E9 i 1 servce.1 On April 1 i, 2008, the Commission conditionally
designated TracFone an ETC for the purose of receiving Lifeline support only in its licensed service
areas in New York, Virginia, Connecticut, Massachusetts, Alabama, North Carolina, Tennessee,
Delaware, New Hampshire, Pennsylvania,8 and the Distrct of Columbia.9 In the TracFone ETC
347 U.S.C. § 254(e).
447 U.S.C. § 214(e)(l)(A); see a/so 47 C.F.R. § 54.201(d)(1).
S TracFone Petition at 3-4.
6 TracFone Forbearance Order, 20 FCC Rcd at 15102, para. 16.
1 ¡d. at 15098, para. 6. Grant of forbearance was conditioned on TracFone: (a) providing its Lifeline customers with
911 and E911 access regardless of activation statu and availabilty of prepaid minutes; (b) providing its Lifeline
customers with E911-compliant handsets and replacing, at no additional charge to the consumer, non-compliant
handsets of customers who obtain Lifeline-supported service; (c) complying with conditions (a) and (b) as of
the
date it provides Lifeline serice; (d) obtaining a certfication frm each PSAP where TracFone provides Lifeline
service confinning that TracFone provides its customers with 911 and E91 J access; (e) requiring its customers to
self-certfy at time of service activation and aruually thereaftr that they are the head of household and receive
Lifeline-supported service only from TracFone; and (f) establishing safeguards to prevent its customers from
receiving multiple TracFone Lifeline subsidies at the same address. Id.
8 At the time the Commission designated TracFone an ETC in Pennsylvania, the Pennsylvania Commission had not
exerted jurisdiction over wireless providers for purposes of ETC designation; therefore the Commission granted
TracFone ETC designation pursuant to section 214(e)(6) of the Act. TracFone ETC Designation Order, 23 FCC
Rcd at 6207, 6211, paras. 1,9; 47 U.S.C. § 214(e)(6). On February 26,2009, the Perusylvania Commission
announced that it wil exert its jurisdiction, effective as of that date, to designate wireless carrer ETCs pursuant to
section 214(e)(2) of the Act. See Lettr from Joseph K. Witmer, Assistat Counsel, Perusy1vania Public Utility
Commission, to Marlene H. Dortch, Secretary, Federal Communications Commission, CC Docket No. 96-45 (filed
Feb. 26, 2009) (attching Februar 26,2009 Perusylvania Commission decision); 47 U.S.C. § 214(e)(2).
9 See TracFone ETC Designation Order, 23 FCC Rcd at 6207-08, para. 1. The Commission conditioned grant of
TracFone's ETC designations on TracFone's certification that it is in full compliance with any applicable 911Æ9l i
obligations, including obligations relating to the provision and support of 911 and E91 1 service. ¡d. at 6213, para.
16. The TracFone Petition and this order are limited to the PSAP cefication requireent regarding TracFone's
provision of access to 911 and E911 service to its customers. This condition is separate from the certfication
regading TracFone's compliance with any state 91 11E91 1 obligations, including payment of fees into state
91 1Æ911 fuds. See Pennylvania Commission Januar 29lbEx Parte Letter at 2 (expressing concern about
TracFone's compliance with the separate condition to certfy compliance with Perusylvania law); Perusylvania
Emergency Management Agency Petition to Reject, CC Docket No. 96-5 (filed Jan. 29, 2009) (asking the
Commission to reject TracFone's certfication for compliance with Pennsylvania 91 lÆ911 obligations due to
TracFone's failur to contrbute to Perusylvania's Wireless E91 1 Emergency Serices Fund).
3
Federal Communications Commission FCC 0947
Designation Order, the COmDssion declined TracFone's request to elimate the condition that TracFone
obtain the requird certfication from each PSAP where it wil provide Lifeline servce.10
4. On November 21,2008, TracFone fied the intant petition seekig to modify the PSAP
certfication requirements. Specifically, TracFone requests that, if a PSAP does not provide the requisite
certfication within 90 days of a request for such cerification frm TracFone, TracFone would be allowed
to self-certify tht its customers wil have access to 911 and E91l without regard to activation statu or
availabilty of prepaid minutes.
1 I
III. DISCUSSION
5. A$ the Commission found in the TracFone ETC Designation Order, TracFone's
universal service Lifeline offering wil provide a vanety of benefits to Lifeline-elii¡ible consumers,
includig increased consumer choice, high-quality service offerings, and mobilty. 2 In addition, the
prepaid featue of TracFone's servce, which essentially fuctions as a toll control featue, may be an
attactive alternative to Lifeline-eligible consumers who are conceed about usage charges or long-term
contrcts. Therefore, we find that the public interest is served by allowing TracFone to offer its Lifeline
servce to consumers as quickly as possible, while also ensuing tht its consumers have access to
necessar emergency services.
6. The Commission has twice stred the importce of eng that TracFone's Lifeline
customers have access to 911 and E911 services though the PSAP certfication process.13 We affrm that
TracFone must contiue to comply with this requirement and seek certification from the PSAPs withn its
servce area. To ensur that the benefits of Lifeline service are made available to TracFone's customers
in a timely manner, however, we grant TracFone's request to allow it to self-certfy compliance with the
911 and E911 availabilty condition if, within 90 days of TracFone's request, a PSAP has not provided
the certfication and the PSAP ha not made an affirmative fmding that TracFone does not provide its
customers with access to 911 and E911 service withn the PSAP's service area:4 In makg a reques for
certfication, TracFone must notify the PSAP that TracFone has the option to self-certify within 90 days
of the request if the PSAP has not provided the certfication and the PSAP has not made an affrmative
findig that TracFone does not provide its customers with access to 911 and E911 service. TracFone may
not self-crtfy compliance until 90 days after it has provided a PSAP with notification of
the 90-day self-
certfication period adopted in this order. TracFone also may not make such a self-crtfication until it
has provided a PSAP with all of the information and/or equipment requeste by the PSAP in analyzig
10 ¡d. at 6213, para. 16.
ii TracFone Petition at 1. On Decmber 23, 2008, the Wireline Competition Bureau sought comment on TracFone's
petition. See Comment Sought on TracFone Wireless Inc. Petition for Modifcation of Public Safety Answering
Point Certifcation Condition, CC Docket No. 96-45, Public Notice, DA 08-2779 (Wireline Compo Bur., reI. Dec.
23,2008). Comments on the petition were due Janua 6,2009, and reply comments were due Janua 13,2009.
Comments were filed by Consumer Action, the National Emergency Number Association, and the Pennsylvania
Commission. TracFone and the Pennsylvania Commission filed reply comments.
12 See TracFone ETC Designation Order, 23 FCC Red at 6212, para. 15.
13 TracFone Forbearance Order, 20 FCC Rcd at 15102, para. 16; see also TracFone ETC Designation Order, 23
FCC Red at 6215, para. 22.
14 If a PSAP ha conducte testing and notified TracFone within the 9o-y penod of concerns regarding the abilty
ofTracFone customers to accss 91 1 and E911 serces, TracFone may not self-crttY compliance until it has
addessed the PSAP's concerns (for example, issues with TracFone's underlyig wirless provider concering
access to 91 1 and E91 1 servces), such that the PSAP ca provide the required certfication. In this circumtace,
TracFone may self-cerry 180 days after requesing certfication from the PSAP if
the PSAP does not approve or
deny the cerfication withn that period.
4
Federal Communications Commission FCC 09-17
TracFone's abilty to provide 911 and E911 service to its customers. IfTracFone makes such a self-
certfication, TracFone must obta from each of its underlyig carriers that provide servce to TracFone
in the area served by that PSAP certification tht the carners route 911 and E911 cals from TracFone
customers to the PSAP in the same maner that they route 911 and E911 calls from their own customers.
TracFone is requied to retain such underlyig carer cerfications and provide them to the Commssion
upon request. TracFone must provide PSAPs with copies of any self-certfications at the tie they are
fied. If after TracFone makes a self-crtfication a PSAP fids that TracFone does not provide its
customers with 911 and E911 access, upon receiving notice ofthis finding TracFone must imedately
notify the Commssion of this finding and explain how it plans to come into compliance with this
condition.
7. The Pennsylvania Commission opposed TracFone's request for a modification of
the
PSAP certification requirement, stating that TracFone has refused to comply with the "dnve testing"
requiements included as part of Pennsylvania's Phase II 911 compliance.ls It is unclea from the
Pennylvania Commission's filing whether such state "drive testing" requirements apply to resale
services, such as those provided by TracFone, or whether a demonstration of successful "dnve testig" of
the underlying wireless provider's service would comply with the state requirement. As this Commssion
stated in the TracFone ETC Designation Order, TracFone's designation as an ETC eligible for Lifeline
support in each state is conditioned upon TracFone's certification that it is in full compliance with any
applicable 9111E911 obligations, including obligations relating to the provision and support of 911 and
E911 service.16 Therefore, TracFone must comply with any state requirements that are applicable to
carrers providing servce on a purely-resale basis. We do not fmd that the Pemisylvama Commission's
claim ofTracFone's non-compliance with the state "drive testing" requirement warants denial of
TracFone's request for a 90-dy PSAP certification period. As discussed above, TracFone's customers
should not be denied the benefits of access to Lifeline support for a prolonged period of time pending
PSAP action on TracFone's certfication requests. We therefore grant TracFone's reqest and allow it to
self-certfy its provision of 911 and E911 services to its customers, and also require it to obtain
certfication from its underlying cariers, if, within 90 days ofTracFone's request for certfication, a
PSAP has not provided the certfication and the PSAP has not made an affrmative finding that TracFone
does not provide its customers with access to 911 and E911 servce within the PSAP's service area. To
the extent an entity disagrees with TracFone's self~certfication, it 'may fie a request asking the
Commission to examine the issue pursuant to section 1.41 of the Commission's rues.17
iv. ORDERIG CLAUSES
8. Accordingly, IT IS ORDERED that, pursuant to the authority contaned in sections 1,
4(i), 40), 214(e) and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i),
1540),214 and 254, the petition for modification filed by TracFone Wireless, Inc. is GRAED as
discussed herein.
15 Peiisylvania Commission Reply Comments at 7-&.Th~ Peiisylvania Commission also requests that the
Commission revisit the decisions granting TracFone's forbearance request and ETC designation in Pennylvania.
Id. at 9, 12- I 7. Pursuant to section 1. 06(f) of the Commission's rules, petitions forreconsideration of Commission
actions must be fied withn 30 days from the date of public notice of the final Commission action. 47 C.F.R. §
1.06(f). The public notice dates of both the TracFone Forbearance Order and the TracFone ETC Designation
Order were their release dates pursant to secton 1.4(b)(2) of the Commission's rules. 47 C.F.R. § L.4(b)(2).
Those dates were September 8, 2005, and April i i, 2008, respectively. The Pennlvania Commission's reply
comments were fied on Janua 13,2009, well outside of the 30-day reconsidertion deadlines for both order. The
Pensylvania Commission's oppositions to those decisions are therefore untimely and will not be considered here.
16 TracFone ETC Designtion Order, 23 FCC Rcd at 6213, para. 16.
1'47 C.F.R. § 1.41.
5
Federal Communications Commission FCC 09-17
9. IT is FURTHR ORDERED that the Pennylvana Public Utility Commssion's request
for an extension of the pleadig cycle is DEND.
10. IT is FURTHR ORDERED that, puruant to section i.03 of the Commision's rules,
47 C.F.R. § 1.03, th order SHAL BE effective upon releae.
FEDERAL COMMCATIONS COMMSSION
Marlene H. Dortch
Secretary
6
Exhibit 8
Privacy Policy
SAFELINK WIRELESS~ service is U.S. government supported program for Income eligible houeholds provided by
TracFone Wireless.
Please read the TRACFONE Privacy Policy.
TRCFONE Wireless has instituted a comprehensive set of privacy policies and procedures to ensure that its Web
site visitors' privacy is never compromised. The purpose of this privacy notIce is to inform our Web site visitors of
the type of information that TRACFONE, or a credit card processing partner acting on Its behalf, collects from the
Web site, how the information is gathered, how it is utilized, how long it is retained and how visitors can restrict
its use or disclosure.
The primary focus of TRACFONE's privacy polícy is to ensure that all Web site visitors' customer identification,
which we term "customer identifiable information," is kept private at aU times. As the term suggests, "customer
identifiable information" is information which can be associated with a specific individual or entity, including, for
example, a customer's name, address. or telephone number, e-mail address and information about online activties
that are directly linked to them.
The collection of customer identifiable information is a critical element in the day-ta-day operation of the Web
site to allow TRACFONE to maintain the highest level of customer servce for all Web site visitors. It is a common
practice and often a necessity for companies, governments. or other organizations to collect customer identifiable
information in order to conduct business and offer services.
TRACFONE always strives to safeguard the customer identifiable information obtained from its Web site users and
visitors (colleCtively, .customers.) from any unauthorized intrusions.
TRACFONE may contact people on the home phone number they enter on our website, Input Into our automated
phone system or give to an agent in case of technical difficulties, promotions and/or reminders.
General
I
i
I
TRACFONE will not sell, trade, or disclose to third parties any customer identifiable information derived from the
registration for, or use of, a TRACFONE product or service .. including customer names and addresses .. without
the consent of the customer. TRCFONE will, however, disclose customer identifiable information as required by
subpoena, search warrant, or other legal process or in the event that such customer is engaging in unlawful use of
our Web site.
When TRACFONE uses third parties to perform servces on Its behalf, TRACFONE will request that such third parties
protect your customer identifiable information consistently with this privacy policy. However, we cannot ensure
that all of your customer identifiable information wil never be disclosed, as regulatory and/or other requirements
may make disclosure necessary.
CQllecion and Use:
I.
In some Instances, TRACFONE may collect information that is not .customer identifiable informatin.. Some
examples of this type of information include the type of Internet browser you are using, the type of operating
system you have configured on your computer, and the domain name of the Web site and/or Internet Serce
Provider from which you are linked to our Web site. TRACfONE primarily uses this information for market research
and optimizing its systems in order to deliver the best customer experience possible.
TRACfONE may collect and use customer identifable information for various purposes, induding but not limited
to, biling purposes, to provde or change servce, to antidpate and resolve problems with your service, or to
inform you of products and services that better meet your needs. This means that TRACFONE may use yor
customer identifable information, in conjunction with Information available from other sources, to market new
services that may be of interest to you, but TRACFONE will not disclose your customer identifiable Information to
third parties who want to market products to you.
Dedinlng e-mall offers:
TRACFONE wil only send our customers e-mail regarding promotional offers or other news if a customer
specfically grants us permission, A customer has the right to choose not to receive TRACFONE e-mail direct
marketing communications by simply notifying us of their preference. This process is commonly termed opting-out
or unsubscribing. At any time, a customer can unsubsribe from our e-mail list by clicking on the unsubscribe link
found at the bottom of every message or promotion delivered electronically to our customers. Upon such choice,
TRACFONE (a) will not contact that customer directly with TRCFONE promotional messages, and (b) will not use
customer identifiable information obtained from that customers registration to contact that customer with
TRACFONE product or service messages. A customer may also choose not to receive such messages by notifying
TRACFONE via fax or maiL.
Security:
TRACFONE has gone to great lengths to implement technology and security features to safeguard the privacy of
your customer identifiable information from unauthorized access or impròper use, and TRACFONE, based on its
judgment, wil continue to enhance its security procedures as new technology becomes readily available.
However, since there is no such thing as "perfect Internet security", TRACFONE cannot provide any guarantees of
100% security compliance.
E-mail Contents:
TRACFONE wil not read or disclose to third parties pnvate e-mail communications that are transmitted using
TRACFONE servces except as required to operate the servce or as otherwise authorized by law.
Improper Conduct:
TRACFONE may also use customer identifiable information to investigate and heLp prevent potentially unlawful
activity or activity that threatens the network or otherwse vioLates the customer agreement for that serce.
Account Information:
TRACFONE honors requests from customers for account information and will correct any such information, which
may be inaccurate. Customers may contact TRCFONE to verify that appropriate corrections have been made.
Cookies
When you visit our Web site, we may store information on your computer that allows us to identify you
immediately. This proces is often referred to as "cookie" technology. More specifically, a cookie is a commonly
used Internet standard which stores, in a very small text fie on the customer's hard disk, information specific tó
the customer. OUr Web site makes limited use of cookies in an effort to improve our level of service to our Web
site visitors. Cookies cannot be accessed by any other Web site other than the Web site issuing the cookie. The
private features of our Web site are only accessible when cookies are enabled in the customer's browser. If a
customer does not wish to utilize cookies, this feature may be disabled within the customer's Web broWSer.
However, by disabling cookies, a customer wil not have access to private areas of our Web site through that
browser.
Other Web sites
Since TRACFONE's Web site contains links to other Web sites, we are not responsible for the content or privacy
practices employed by these other Web sites. It is possible that on some occasions, these third party Web sites
may in fact collec personal information from our customers. We recommend that you examine the privacy policies
of such third part Web sites prior to submitting any personal information, as they may differ from ours.
In some instances, our Web site content is also featured on other Web sites with differing or non.existent privacy
policies. These Web sites may collect personal information from their customers that mayor may not be used in
conjunction with our Web site inforation. Prior to supplying any personal information to any third party company
linking to our Web site, please read and understand their privacy policy.
Advertisements
Advertisements may appear on pages throughout our Web site. Some advertisements may request information
directly from our customers or take our customers to Web sites that may request personal information. TRACFONE
has no control over its advertisers' privacy policies, so please examine the privacy policy of any company
advertising on our Web site prior to submittng any personal information.
Third Part Advertising Companies
We may use third.part advertising companies to serve ads on our behalf. These companies mayemploy cookies
and action tags (also known as single pixel gUs or web beacons) to measure advertising effectiVenes. Any
information that these third parties collect via cookies and action tags is completely anonymous. If you would like
more information about this practice and your choices, dick here. You may also visit the Advertising.com Privacy
Policy, click here.
Surveys
OCcasionally, we may conduct surveys on our Web site. Surveys are conducted at random and are completely
voluntary to our Web site visitors. The survey may require a customer to provide customer identifiable information
in exchange for the information or services provided by the survey. We may use this information in an aggregate
manner to better tailor the type of servces, information, and advertising that are provided on our Web site.
Policy Changes
TRACFONE reserves the right to change its privacy policy by publishing new terms on its Web site at any time and
your access and useof the TRACFONE Web site thereafter constitutes youracknowledgment and acceptance of such
amended policy. This privacy policy doe not create any legal right for you or any third parties.
Children
TRACFONE Web sites are not structured to attract children under the age of 13. TRACFONE believes there is no
information on its Web site. which is inappropriate or objectionable for viewing by children.
TRACFONE does not knowingly, directly or passivey, collect information from children under the aBe of 13. If we
create offers and products that make it appropriate to collect information from children under the age of 13, we
wil notify you of the change in this Policy. We als will ask a parent to confirm his/her consent in advance of any
collection, use or disClosure of that information. We do not collect any information that is not submitted to us. We
only use personally identifiable information so that we may better understand our users' needs and send
information to users regarding new servces or offerings, including but not limited to any sweepstakes or other
offering. We do not sell any personally Identifable information or disClose any personally Identifiable information
to third parties.
Ordering online products and services from TRACFONE is limited to adults (ages 18+). However you should be
aware that wireless devices and servces purchased for family use may be used by minors without the knowledge of
TRACFONE. If that happens, any Information collected from the usage wil appear to be the personal information
of the actual adult subscriber and treated as such under this Policy. '
Questions?
Please direct any questions or comments regarding our privacy policy to informatio()tradone.coni.
Exhibit 9
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Exhibit 12
SAFELINK WIRELESS 1M
Terms and Conditions of Service
Please read these SAFELINK WIRELESS Terms and Conditions of Service carefully. SAFELINK WIRELESS is a
service of TracFone Wireless, Inc. ('TracFone Wireless"). These SAFELINK WIRELESS Terms and Conditions of
Service are a legally binding agreement between you and TracFone Wireless. They contain important
information about your legal rights, and require that certain disputes be resolved through Arbitration instead
of a court triaL. TracFone Wireless reserves the right to change or modify any of these SAFELINK WIRELESS
Terms and Conditions of Service at any time and at its sole discretion. Any changes or modifications to these
SAFELINK WIRELESS Terms and Conditions of Service wil be binding once posted on the SAFELINK WIRELESS
website found at www.safelink.com.
By qualifying and enrolling in the SAFELINK WIRELESS service ("Service") and by using the Service, you ("You"), the
participant, acknowledge and agree to the following terms and conditions:
SAFELNK WIRELESS SERVICE DESCRIPTION
SAFELINK WIRELESS Service is funded by the Lifeline program (part of the Universal Service Fund) and administered
by the Universal Service Administrative Company. In order to participate in the SAFELINK WIRELESS Service, a
person must meet certain eligibility requirements set by each state where the Service is to be provided. These
requirements are based on a person's participation in a state or federal support program(s) or by meeting certain
income requirements based upon the Income Poverty Guidelines as defined by the US Government, Federal law
limits the availability of SAFELINK WIRELESS Service to one (1) per "household" and only the "head of household"
is permitted to apply for the Service. Applicants for the SAFELINK WIRELESS Service must complete an application
form, provide supporting documentation that he/she meets the eligibility requirements and agree, under penalty
of perjury, to the following terms:
HE/SHE IS ELIGIBLE FOR AND CURRENTLY RECEIVES BENEFITS FROM THE PUBLIC ASSISTANCE PROGRAM(S)IDENTIFIED IN THE APPLICATION FORM,HE/SHE IS A "HEAD OF HOUSEHOLD."
HE/SHE DOES NOT CURRENTLY RECEIVE LIFELINE SUPPORT FOR A TELEPHONE LINE SERVING HIS/HER RESIDENTIAL
ADDRESS AND NO OTHER RESIDENT IN HIS/HER HOUSEHOLD PARTICIPATES IN THE LIFELINE PROGRAM, IF HE/SHE IS
ALREADY PARTICIPATING IN ANOTHER LIFELINE PROGRAM, THEN HE/SHE AGREES TO CANCEL HIS/HER CURRENT
HOUSEHOLD LIFELINE SUPPORT PROVIDER IN FAVOR OF SAFELINK WIRELESS,
HE/SHE IS NOT CLAIMED AS A DEPENDENT ON ANOTHER PERSON'S FEDERAL OR STATE INCOME TAX RETURN.
HE/SHE WILL NOTIFY SAFELNK WIRELESS WHEN HE/SHE NO LONGER QUALIFIES FOR ANY OF THE PUBLIC
ASSISTANCE PROGRAS IDENTIFIED IN HIS/HER APPLICATION FORM BY CALLING 1.800-SAFELINK.
HE/SHE WILL NOTIFY SAFELINK WIRELESS OF ANY CHANGE OF ADDRESS BY CALLING 1- 800-SAFELINK.
THAT THE INFORMATION CONTAINED IN HIS/HER APPLICATION IS TRUE AND CORRECT TO THE BEST OF HIS/HER
KNOWLEDGE AND BELIEF.
A person who submits a SAFELINK WIRELESS application, together with supporting documentation (when required),
and who meets the eligibility requirements, wil receive a free cellular phone provided by TracFone Wireless
together with a free allotment of airtime minutes each month for up to one year. TracFone Wireless wil
determine at its sole discretion whether or not an applicant meets the eligibility requirements to participate in the
SAFELINK WIRELESS Service, The airtime minutes you wil receive on a monthly basis wil vary from state to state,
Please call SAFELINK WIRELESS at 1-800-SAFELINK or visit our website at ww.SafellnkWireless.com. for further
information on the number of minutes qualified applicants wil receive each month, Persons who do not meet the
eligibility requirements wil be notified by US Mail and the reason for the non-eligibility wil be provided. To
continue qualifying each year for SAFELINK WIRELESSlM Service, each customer wil be required and is responsible
to re-qualify on an annual basis or as dictated by their state Public Service Commission. For annual re-qualification
requirements, TracFone Wireless wil also conduct verification drives for each state according to its rules. If
TracFone Wireless determines during its verification drive that a customer fails to re-qualify for SAFELINK
WIRELESS Service, such customer wil immediately be deemed ineligible to participate in the SAFELINK WIRELESS
Service and wil no longer receive the free monthly minutes. Once a customer no longer participates in the
SAFELINK WIRELESS Service (either by choice, disqualification, cancellation or termination), such customer may
retain the SAFELINK WIRELESS phone, as well as any remaining service days and minutes for their use. Such person
may remain as a TracFone Wireless customer as long as he/she complies with the TracFone Wireless Terms and
Conditions of Service available at www.tracfone.com. A SAFELINK WIRELESS customer's enrollment may also be
cancelled upon the request of a state and/or federal authority. TracFone Wireless and SAFELINK WIRELESS reserve
the right to cancel the enrollment of any customer and/or ban the SAFELINK WIRELESS phone from being
reactivated for any fraud related issues as determined solely by TracFone Wireless. While participating in the
SAFELINK WIRELESS Service, a customer shall not be permitted to sell, rent, give away or in any way allow another
person to use the cellular phone or Service provided to him/her by SAFELINK WIRELESS. IT IS A VIOLATION OF
FEDERAL AND STATE LAW TO SELL OR GIVE AWAY THE SAFELINK CELLULAR PHONE OR SAFELINK SERVICE PROVIDED
TO YOU BY SAFELINK WIRELESS. Any violation of this prohibition wil be reported to the appropriate legal
authorities for prosecution. In addition, if TracFone determines, in its sole discretion, that a SAFELINK WIRELESS
participant has violated these requirements and/or this Agreement, then such person may be de-enrolled from the
Service, the person's handset may be permanently deactivated and the person's personal information may be
permanently flagged so that such person may not qualify in the future for the SAFELINK WIRELESS Service. If you
have any questions, concerns, comments or complaints regarding SAFELINK WIRELESS Service, offerings or
products, please call SAFELINK WIRELESS Customer Care at 1.800-SafeLink, You may also contact your state's
Public Service Commission/Public Utility Commission.
ACTIVATING AND USING YOUR SAFELINK WIRELESS HANDSET.
If your SAFELINK WIRELESS application is accepted, you will receive a pre-activated SAFELINK WIRELESS phone
delivered to your home address noted in the application. You must accept the SAFELINK WIRELESS telephone
number assigned to your SAFELINK WIRELESS phone at the time of activation and you wil acquire no proprietary
interest in any number assigned to you. The number assigned to your SAFELINK WIRELESS phone at the time of
activation wil not be changed for any reason, unless required by a Carrier, nor maya SAFELINK WIRELESS customer
select a number to be assigned to his/her phone. The wireless telecommunications networks used to transmit calls
for the SAFELINK WIRELESS Service are owned and operated by various licensed commercial mobile radio service
providers ("Carriers"), not SAFELINK WIRELESS, nor TracFone Wireless. Your SAFELINK WIRELESS phone can only be
used through TracFone Wireless, and cannot be activated with any other wireless or cellular service. SAFELINK
WIRELESS Services are provided at TracFone WirelesslM discretion. Some functions and features referenced in the
Manufacturer's manual provided with your SAFELINK WIRELESS phone may not be available on your SAFELINK
WIRELESS handset. TracFone Wireless may modify or cancel any Service or take corrective action at any time
without prior notice and for any reason, including but not limited to your violation of this agreement. While you
are eligible and participating in the SAFELINK WIRELESS Service, you wil receive your free monthly allotment of
airtime minutes. However, in order to receive the monthly allotment you wil need to turn on and leave on your
SAFELINK WIRELESS handset the first few days of each month.
SELF.RETRIEVE AIRTIME MINUTES
If you DO not receive your monthly allotment of minutes because your phone was not on at the beginning of the
month or your phone does not automatically retrieve minutes when turned on, your minutes may be self-retrieved
by following the instructions below. If for any reason these instructions do not work on your handset, please call us
at 1-BOO-SafeLink.
1. 1) Turn your SafeLink Wireless phone ON.
2. 2) From the Main screen, press the MENU key. Select "Prepaid."
3. 3) From the menu select, "Add Airtime/ Redeem Airtime."
4. 4) Dial 5 5 5 and press OK. If you are prompted for a promotional code, press "No."
5) Make sure to keep your SAFELINK WIRELESS phone ON to receive your Minutes!
If your phone does not allow you to self"retrieve or your phone does not automatically retrieve or if you are having
diffculty receiving your monthly allotment of minutes, then call SAFELINK WIRELESS Customer Care at 800-
SafeLink.
AIRTIME RATES.
SAFELINK WIRELESS airtime is issued in minute/unit increments. "Units" are the same as minutes. Minutes/units are
deducted from the SAFELINK WIRELESS phone at a rate of one (1) unit per minute and/or partial minute of use.
There is no additional charge for nationwide long distance or for international long distance to countries
designated at www.tracfone.com.
TEXT MESSAGING.
The rates to send or receive a text message to another person's phone using your SAFELINK WIRELESS phone are 0.3
minutes/units per text message, for sending and 0.3 minutes/units per text for receiving. If you do not want
minutes/units deducted from your SAFELINK WIRELESS phone, then do not send a text message and/or do not open
any incoming text messages. SAFELINK WIRELESS Service does not allow international text messages, Attempting to
send international messages could result in service deactivation, Please note that SAFELINK WIRELESS does not
generally participate in Premium SMS services or campaigns. Premium SMS refers to activities that usually involve
sending a text message to a designated "short code" or buying or attempting to buy SMS services from anyone other
than SAFELINK WIRELESS. Premium SMS campaigns include activities such as casting a vote, expressing your
opinion, playing a game, subscribing to a service, or interactive television programs. You should not attempt to
participate in Premium SMS campaigns, unless it is a SAFELINK WIRELESS authorized campaign. Any text message
you send to a "short code" wil in all likelihood not go through. Any charges you may incur as a result of any
attempts to participate in Premium SMS services or campaigns not authorized by SAFELINK WIRELESS whether you
incur charges as deductions from your SAFELINK WIRELESS phone or from your credit card, are not refundable. You
may purchase from SAFELINK WIRELESS ring tones, graphics and certain information services and utilize multi-
media services with certain SAFELINK WIRELESS models, See SAFELINK WIRELESS Data Services below.
INTERNATIONAL CALLING.
You may now use your SAFELINK WIRELESS phone to make international calls to land lines (including some cellular
phones in some countries) at no additional charge (See ww,tracfone.com for available countries and details). The
available countries are subject to change without pnor notice. In order to place an international call, you wil
need to dial the international long distance access number 1-800-706- 3839 and follow the instructions, From
Alaska, Hawaii and the U,S. Virgin Islands you wil need to dial 305-938-5673 as the international long distance
access number. Airtime deductions for international calls begin the moment the International Long Distance ("ILD")
access number is dialed and apply to dropped calls, misdialed numbers and busy destination numbers. When
making international calls, you may expenence connection failures more frequently than calls made within the
United States. SAFELINK WIRELESS will not credit airtime minutes deducted for unsuccessful calls. You wil not be
able to make or receive calls on your SAFELINK WIRELESS phone when you are located outside of the United States,
Puerto Rico or the U.S. Virgin Islands (the "Coverage Area"). Any attempt to make or receive calls when you are
located outside of the Coverage Area could result in service deactivation.
ADDING AIRTIME.
Your SAFELINK WIRELESS phone wil only operate when you have airtime minutes/units available on the SAFELINK
WIRELESS phone. If you run out of your free monthly allotment of airtime, you may purchase and add airtime to
your phone. You add airtime by entering the PIN (obtained from either a SAFELINK WIRLESS or TracFone Wireless
airtime card). You must add your airtime to your SAFELINK WIRELESS phone within one year from the date of
purchase; otherwise the card/PIN expires and you wil not be able to add those minutes to your SAFELINK
WIRELESS phone; nor receive a refund for any unused minutes.
AIRTIME CARDS.
SAFELINK WIRELESS customers may purchase and use for their SAFELINK WIRELESS handset any TracFone Wireless
airtime cards, including Double Minute Airtime cards. Each TracFone Wireless airtime card comes with a number of
minutes and a service period that begins to run from the day you add airtime to your SAFELINK WIRELESS phone.
The free monthly allotment of minutes received by the SAFELINK WIRELESS customer while enrolled in the Double
Minutes for Life program wil not double with the purchase and addition of any airtime cards,
NOTE: On the 60, 90 and 120 minute TracFone Wireless airtime cards, SafeLink Wireless customers wil
receive an additional 40, 35 and 30 minutes respectively, and these minutes do not double with any TracFone
Wireless Double Minute airtime cards.
For each TracFone Wireless airtime card purchased and used on a SAFELINK WIRELESS handset, the SAFELINK
WIRELESS customer wil receive the following:
Card Minutes Service OtherDays
60 100 90 N/A
90 125 90 N/A
120 150 90 N/A
200 200 90 N/A
450 450 90 N/A
One Year 250 orService 365 N/A
Card 400
Double minutes for life of single handset after you
One Year purchase and add this card; not transferable to
plus 800 365 another handset even if phone is damaged, lost or
Double stolen. The minutes that come with this card wil not
Minute double. Free monthly minutes to SAFELINK WIRELESS
customers do not double.
Double 0 0 Double minutes for life of single handset after you
Minute purchase and add this card; not transferable to
Card another handset even if phone is damaged, lost or
stolen. The minutes that come with this card wil not
double, Free monthly minutes to SAFELINK WIRELESS
customers do not double.
You may also purchase SAFELINK WIRELESS airtime cards at selected retail stores. SAFELINK WIRELESS customers
wil receive the following:
Card Minutes Service Days Other
15 15 0 N/A
25 25 0 N/A
50 50 0 N/A
For each additional TracFone airtime card that you add to your phone, your Service End Date wil be extended by
the number of days specified on the card or cash register receipt, without limitation. "Service End Date" is the last
day of your service period, Airtime minutes added to your SAFELINK WIRELESS phone do not expire with active
service and at least one Transaction during a consecutive sixty day period. A 'Transaction" shall be defined as any
one of the following (i) your phone's receipt of the monthly allotment of airtime; (ii) the purchase and addition of
either a TracFone Wireless or SAFELINK WIRELESS airtime card; or (iii) usage of your phone (making a call, sending
or receiving a text message or data usage). Airtime minutes have no cash value and are non-refundable,
Promotional, bonus and other non-purchased airtime minutes wil not double on phones with the double minute
card. The purchase of any airtime card is non-refundable. Airtime cards, airtime rate plans, and card
denominations are subject to change at any time without prior notice.
SERVICE END DATE AND DEACTIVATION.
SAFELINK WIRELESS enrolled customers wil receive 365 days of service upon qualification and enrollment and then
another 365 days of service for re-qualification and re-enrollment. If you use your phone regularly and receive your
monthly minutes but do not re-qualify or re-enroll or purchase and add airtime prior to the Service End
Date(which is the date displayed on your handset screen) your service wil be deactivated on the last day of
service (your Service End Date). In the event TracFone Wireless requires you to re-qualify and re-enroll in the
SAFELINK WIRELESS Service and you fail to do so and you do not purchase a TracFone airtime card providing service
days, then your service will be deactivated on your Service End Date and you wil lose your handset phone
number, even if you have minutes remaining. To prevent this from occurring, please keep your handset service
active by both re-qualifying and re-enrolling or by purchasing and adding TracFone airtime cards before the
Service End Date. Notwithstanding the Service End Date displayed on your handset, SAFELINK WIRELESS and
TracFone Wireless reserve the right to deactivate and cancel the enrollment of any phone from the SAFELINK
WIRELESS service in the event of no activity or Transaction for 60 consecutive days. If your SAFELINK WIRELESS
Service is deactivated because of no activity or Transaction in 60 consecutive days, your phone may be reactivated
by calling 1-800-SafeLink within the twelve month period from the initial enrollment or requalification date, If you
re-activate your SAFELINK WIRELESS phone and service within the twelve month period of your enrollment, you
wil receive the monthly minutes that you were entitled to receive until you were deactivated but you wil lose
any and all minutes that you would have received during your deactivation period. If you attempt to re-activate
after twelve months from the initial enrollment or requalification date, you wil need to re-qualify and re-enroll in
the SAFELINK WIRELESS Service and no compensation or replacement of unused minutes wil be provided.
Once you reactivate, your SAFELINK WIRELESS handset may be assigned a new phone number. Airtime which
remained at the time of deactivation wil remain on your handset if it is reactivated within 60 days from the
deactivation date. However, airtime which remained at the time of deactivation may be lost if your handset
service remains deactivated for longer than 60 days.
AIRTIME USAGE.Airtime minutes wil be deducted for all time during which your SAFELINK WIRELESS phone is
connected to, or using, the wireless system of any Carrier. Use of a wireless system typically begins when you
press the "send," "call" or other key to initiate or answer a call and does not end until you press the "end" key or
the call is otherwise terminated. Airtime minutes are deducted for all incoming and outgoing calls, including
incoming call waiting calls, calls to toll free numbers, 411, 611, Customer Care, and to access your voice maiL.
Airtime minutes are deducted for all text messages sent and all incoming text messages which are opened. Airtime
minutes are not deducted for calls to 911. For outbound calls, you may be charged airtime for incomplete and/or
busy-no answer calls. Airtime minutes are deducted in full unit increments; partial minutes are rounded up to the
next minute. Airtime minutes wil also be deducted for use of other services such as text messaging and accessing
the TracFone Wireless Mobile Web ("WAP"). No credit or refund is given for dropped calls.
UNAUTHORIZED USAGE; TAMPERING. The SAFELINK WIRELESS handset is provided exclusively for use by you, the
end consumer with the SAFELINK WIRELESS Service available solely in the United States, Puerto Rico and the U.S.
Virgin Islands. Any other use of your SAFELINK WIRELESS handset, including without limitation, any resale,
unlocking and/or re-flashing of the handset is unauthorized and constitutes a violation of your agreement with
TracFone Wireless. You agree not to unlock, re-flash, tamper with or alter your SAFELINK WIRELESS phone or its
software, enter unauthorized PIN's, engage in any other unauthorized or ilegal use of your SAFELINK WIRELESS
phone or the Service, or assist others in such acts, or to sell and/or export SAFELINK WIRELESS handsets outside of
the United States. These acts violate TracFone Wireless' rights and state and federal laws. Improper, ilegal or
unauthorized use of your SAFELINK WIRELESS phone is a violation of this agreement and may result in immediate
discontinuance of Services and legal action against you. TracFone Wireless wil prosecute violators to the full
extent of the law. You agree that any violation of this agreement through your improper, ilegal or unauthorized
use or sale of your SAFELINK WIRELESS phone shall entitle TracFone Wireless to recover liquidated damages from
you in an amount of not less than $5,00 per SAFELINK WIRELESS handset purchased, sold, acquired or used in
violation of this agreement..
Some SAFELINK WIRELESS handsets have SIM cards. If your SAFELINK WIRELESS phone has a SIM card, then you
agree to safeguard your SIM card and not to allow any unauthorized person to use your SIM card. You agree not to
allow any other person to, directly or indirectly alter, bypass, copy, deactivate, remove, reverse-engineer or
otherwise circumvent or reproduce the encoded information stored on, or the encryption mechanisms of, your SIM
card. The Carriers, TracFone Wireless, or its service providers, may, from time to time, remotely update or change
the encoded information on your SIM card. Your SAFELINK WIRELESS phone is restricted from operating when you
are located anywhere outside of the United States, Puerto Rico or the U.S. Virgin Islands, including offshore or in
international waters. Any such calls are considered unauthorized usage by TracFone Wireless for which your
Service wil be immediately suspended. In the event of suspension for this or any other unauthorized usage, you
wil not be entitled to receive any refunds for unused airtime.
COVERAGE MAPS.You wil find coverage maps on our website, ww.tracfone.com. These maps are for general
informational purposes only. TracFone Wireless does not guarantee coverage or service availability. Even within a
coverage area, factors such as terrain, weather, structures, foliage, signal strength, traffic volumes, service
outages, network changes, technical limitations, and your equipment may interfere with actual service, quality
and availability. Thus, it is possible your phone wil roam even in the area depicted as your home calling area,
Actual coverage and service areas may vary from the maps and may change without notice.
ROAMING. "Roaming" occurs when a subscriber of one wireless service provider uses the facilities of another
wireless service provider. Roaming most often occurs when you make and receive calls outside the home calling
area. When your SAFELINK WIRELESS phone is roaming, an indicator light on your handset may display the word
"Roam" or "RM" on the screen while the phone is not in use. There are no additional charges for roaming calls for
the SAFELINK WIRELESS phone you were provided, Availability, quality of coverage and Services while roaming are
not guaranteed.
LIMITATIONS OF SERVICE AND USE OF EQUIPMENT. Service is subject to transmission limitations caused by certain
equipment and compatibility issues, atmospheric, topographical and other conditions, Further, Service may be
temporarily refused, limited, interrupted or curtailed due to system capacity limitations, technology migration or
limitations imposed by the Carrier, or because of equipment modifications, upgrades, repairs or relocations or
other similar activities necessary or proper for the operation or improvement of the Carrier's radio telephone
system. At anytime, TracFone Wireless reserves the right to substitute and/or replace any SAFELINKE WIRELESS
equipment (including handsets) with other SAFELINK WIRELESS equipment including handsets of comparable
quality. Some functions and features referenced in the Manufacturer's manual for a particular SAFELINK WIRELESS
handset may not be available on your phone. TracFone Wireless does not warrant or guarantee availability of
network or of any Services at any specific time or geographic location or that the Services wil be provided without
interruption. Neither TracFone Wireless, nor any Carrier, shall have any liability for Service failures, outages or
limitations of Service, Because of the risk of being struck by lightning, you should not use your SAFELINK WIRELESS
phone outside during a lightning storm. You should also unplug the SAFELINK WIRELESS phone power cord and
charger to avoid electrical shock and/or fire during a lightning storm.
WARRANTY EXCHANGE & LOST OR STOLEN PHONE POLICY
Warranty Exchange Policy:SAFELlNK WIRELESS customers shall have up to one year from the activation date of
their phone to return any defective phone to TracFone Wireless. TracFone Wireless wil exchange a defective
phone for another phone during this period of time only. For a defective phone replacement, call SAFELINKWIRELESS Customer Care at 1-800.378.1684.
Exclusions and Conditions. This limited warranty does not cover damage or failure caused by abuse or misuse of
the phone or accessories. TracFone Wireless does not provide refunds. All applicable implied warranties, including
the implied warranties of merchantability and fitness for a particular purpose, are limited to the duration of this
limited warranty, unless otherwise provided by law. Your limited warranty excludes all incidental or consequential
damages, unless otherwise provided by law. Some states do not allow the exclusion or limitation of incidental or
consequential damages, so the above limitation or exclusion may not apply to you, This limited warranty gives you
specific legal rights, and you may also have other rights which vary from state to state.
Lost or Stolen Phone Policy: For any lost or stolen SAFELINK WIRELESS phone, you may request and receive only
one replacement phone per customer (The replacement phone wil be a refurbished phone). All reported lost and
stolen phones wil be permanently deactivated. For the replacement phone resulting from a lost or stolen phone,
SAFELINK WIRELESS wil only replace 10 minutes of lost time. In the event you lose your replacement phone or it is
stolen, you wil need to purchase an additional phone. If a phone is lost or stolen in transit to the customer, before
the customer receives the phone, then the airtime minutes wil be reimbursed and the phone replaced (one time
only). TracFone Wireless reserves the right to determine if a phone was lost or stolen in transit and decide
whether to provide the customer with a new handset.
HEARING, VISUAL OR SPEECH IMPAIRED ACCOMMODATIONS
Any hearing, visual or speech impaired persons interested in applying for a specially equipped SAFELINK WIRELESS
must specify the need(s) in the application and TracFone Wireless wil make every effort to assist such customer in
obtaining a handset and at the same time be in compliance with all applicable laws, rules, and regulations.
EMERGENCY CAllS.
If you are in an area where your SAFELINK WIRELESS phone is searching for a wireless signal or there is no wireless
signal or wireless service, it is highly probable that a call to 911 wil not go through, Do not rely solely on your
SAFELINK WIRELESS in an emergency situation. In an emergency, locate the nearest landline phone and call for
help.
DATA SERVICES.
With certain SAFELINK WIRELESS phone models, you can download ring tones, graphics, access information services
such as news, weather and sports ("nformation Services") and utilize multi-media services ("MMS") (ringtones,
graphics, Information Services and MMS are collectively referred to as "Data Services") through our Wireless Mobile
Web ("WAP"). Data Services are additional Services offered by us and there is an additional charge or debit of
minutes/units for use of such services.
Access/Purchase Data Servces. In order to purchase, download or access Data Services, your handset must have
active service and suffcient available airtime (minutes). Your handset wil not let you open the WAP browser
without an airtime balance of at least 10 minutes. Each time you access our Wireless WAP with your handset's
browser, 0.5 units per minute wil be deducted from your handset ("Access Charges"). Access Charges are deducted
in full minute increments. WAP access of less than 60 seconds is rounded up to the next full minute.
Access Charges begin when your handset makes a data connection. This should occur shortly after you open your
browser, send or receive a multi-media message (e.g., a picture), initiate a content download, view subscribed
Information Services or if WAP access is initiated for any other purpose. Access Charges end when the data
connection terminates. This should occur shortly after you close your browser, successfully receive or send a multi.
media message (e.g., a picture), after a successful content download or after any other closure of a WAP session.
The WAP access duration and the related Access Charges are NOT determined from the exact moment you press a
button on your handset to open or close the browser.
In addition to the Access Charges, there wil be an additional one-time charge for any content you select to
download ("Content Charge") and if you subscribe to an Information Services ("Subscription Charge"). The Content
Charges and Subscription Charges vary depending on the type of content and/or subscription. You wil be advised
of the Content Charges and/or Subscription Charges prior to finalizing your purchase. The Data Services you
purchase and download may only be used or viewed on the handset for which they were purchased and cannot be
transferred to any other device, including a new or replacement handset. Data Services are non-refundable and
non- transferable.
Purchase Options for Data Services: You may purchase Data Services either through your handset's WAP browser
or through the Internet (with a personal computer) at www.tracfone.com.
When you purchase Data Services from the Internet at ww.tracfone.com. the Content Charge wil be shown in
both U.S. Dollars and in minutes/units. You wil have the opportunity to select one of two payment options: (1)
using a credit card to pay the purchase price shown, or (2) a direct deduction of minutes from your SAFELINK
WIRELESS handset. If you buy a TracFone card the number of minutes to be charged is based on the last airtime
card added to your handset. See Purchasing Data Services With Airtime Minutes below.
How to purchase from the Internet (ww.tracfone.com): Go to "Ringtones and More" at ww.tracfone.com and
enter your SAFELINK WIRELESS serial number (ESN /IMEI). This wil take you to the Wireless Data Services content
catalog where you can browse, sample and purchase ringtones and/or graphics. After you find a title, and select
"Buy", you wil then be presented with the two purchase options described above.
How to purchase through your handset's WAP browser: Select "BROWSER" on your handset, Then select "Start
Browser" and you wil be presented with a menu. When you use your handset's WAP browser to purchase Data
Services, only the unit charge purchase option is available. Credit card payments are not available when
purchasing through your handset. Note: Ringtones can only be sampled at ww.tracfone.com.
Purchasing Data Services With Airtime Minutes: If you add TracFone airtime cards, the charges for Data Services
purchases are determined by the last airtime card added to your handset. The chart below details the number of
minutes you wil be charged for each dollar you spend for the Data Services you purchase. Your TRACFONE wil be
assigned the appropriate dollar-to-minute conversion factor each time an airtime card is added to your handset.
The charges for Data Services in U.S. Dollars and/or minutes and the dollar-to-minute conversion factor(s) are
subject to change without prior notice.
Dollar-To-Minute Conversion Factors for Data Servces
If the last airtime card you You will have this number of minutes deducted
added to your handset was:per dollar you spend on Data Services:
TRACFONE Airtime Cards
30, 40 or 60 minute cards 3.00
90 minute card 3.60
100 or 120 minute cards 4.00
200, 250 or 400 minute cards 5.00
450 minute card 5.62
200, 250 or 400 minute cards 3,00with Double Minutes
Annual Plan and Double Minute Prepaid Plan Cards
150 unit Annual Plan card 1.66
250 unit Annual Plan card 2.50
400 minute Annual Plan Card 4.00
800 minute Annual Plan Card 5.71
Double Minute Card without N/Aminutes
300 minute Double Minute 2.30Annual Prepaid Plan Card
400 minute Double Minute 3.07Annual Prepaid Plan Card
Regular Airtime Cards Added to TRACFONE's with active Double Minute Benefi
30, 40 or 60 minute cards with 6.00Double Minutes
90 minute card with Double 7.20Minutes
100 or 120 minute cards with
Double Minutes
200, 250 or 400 minute cards
with Double Minutes
450 minute card
Other (not listed above) Airtime
cards with Double Minutes
8,00
10.00
11.24
6.00
Subscription to Information Services. For Data enabled phones, SAFELINK WIRELESS offers two options for
subscription-based Information Services (news, weather and sports): (1) a one-day (24 hour) subscription or (2) a
30-day subscription.
A subscription for Information Services allows you to view the various Information Services during the duration of
the subscription. For example, a 30-day subscription allows access to the subscription based Information Servce at
any time during the 30-day period. In addition to the initial Subscription Charge to purchase the one-day or 30.day
subscription, you wil also incur Access Charges whenever you open your handset's WAP browser to access and/or
view the Information Services. The Access Charge is 0.5 minutes (units) per minute (or partial minute) of use.
Subscriptions to Information Services can only be purchased directly from your handset.
Subscriptions to Information Services are only accessible on the handset on which they were purchased and cannot
be transferred to any other device, including a new or replacement handset, Information Services are non-
refundable and non-transferable.
Your SAFELINK WIRELESS Service must remain active to access your subscription to Information Services. If your
service expires, your subscription to Information Services will be terminated. Your Information Services
subscription will not be reinstated, even if your handset is reactivated during the original subscription period,
There is no pro-rated refund of Subscription Charges as a result of deactivation or expiration of service.
Charges for MMS (e.g., picture messaging). You wil be charged 1.0 unit to send or receive a multi-media message
(the "MMS Charge"). In addition to the 1.0 unit MMS Charge, there wil also be an additional WAP Access Charge of
0.5 units per minute for the time it takes to send or receive the multi-media message. The total WAP Access
Charge wil vary depending on the size of the multi-media message being sent or received.
Additional Access Charges for Data Services. In addition to the Content Charges, Subscription Charges and MMS
Charges, and regardless of the payment option you use, there is always an additional Access Charge of 0,5 units
per minute associated with downloading content, accessing/viewing Information Services or utiizing MMS. Total
Access Charges will vary depending on the size of the content and the actual time it takes to download the
content, access/view the Information Service or utilize MMS.
Modifications, Interruptions, or Discontinuation of Data Service.SAFELINK WIRELESS does not guarantee the
availability of Data Services on all of its phone models nor does it guarantee the availability of Data Services at all
times. SAFELINK WIRELESS reserves the right to modify, suspend, interrupt, discontinue or permanently cancel
Data Services, or portions thereof, without notice. Data Services are not available in analog service areas,
SAFELINK WIRELESS is not responsible and wil not be liable for any modifications, interruptions or discontinuation
of the Data Services or for any failure in receipt of the purchased Data Services. If the Data Servces, or any part
thereof, for which you subscribe, are modified, interrupted, discontinued or canceled, you wil not receive a
refund or credit from SAFELINK WIRELESS for any remaining used or unused subscription time. If you cancel or
attempt to cancel a Data Service download, a subscription purchase or a multi-media message in progress, or if
this process is otherwise interrupted through no action on your part, you may nevertheless be charged in
accordance with the terms and conditions set forth herein,
Non-Rated Content. SAFELINK WIRELESS and TracFone Wireless strive to present and offer only generally
acceptable content, However, it is impossible to proof all content, titles and news articles for appropriate
content. Our wireless content is NOT rated and you are solely responsible for the use of such material, which may
be offensive or objectionable to you or to others. You agree not to hold SAFELINK WIRELESS or TracFone Wireless
liable for any offensive or objectionable content.
LIMITATION OF LIABILITY. TracFone Wireless wil not be liable to you for any indirect, special, incidental,
consequential, exemplary or punitive damages of any kind, including lost profis (regardless of whether it has been
notified such loss may occur) by reason of any act or omission in its provision of equipment and/or Services.
TracFone Wireless wil not be liable for any act or omission of any other company furnishing a part of our Services
or any equipment or for any damages that result from any Service or equipment provided by or manufactured by
third parties. When your SAFELINK WIRELESS phone is returned to SAFELINK WIRELESS for any reason, TracFone
Wireless is not responsible and shall not be liable to you or anyone else for any personal information such as user
names, passwords, contacts, pictures, SMS, MMS and/or additional downloads you may have stored on your phone
or which may remain on your phone.
INDEMINIFICATION.You agree to indemnify and hold harmless TracFone Wireless from any and all liabilities,
penalties, claims, causes of action, and demands brought by third parties (including the costs, expenses, and
attorneys' fees on account thereof) resulting from your use of a SAFELINK WIRELESS phone and/or use of the
SAFELINK WIRELESS Services, whether based in contract or tort (including strict liabilty) and regardless of the
form of action.
BINDING ARBITRATION. PLEASE READ THIS SECTION CAREFULLY AS IT AFFECTS RIGHTS THAT YOU MAY
OTHERWISE HAVE. IT PROVIDES FOR RESOLUTION OF ALL DISPUTES AND CLAIMS (INCLUDING ONES THAT
ALREADY ARE THE SUBJECT OF LITIGATION), EXCEPT FOR CLAIMS CONCERNING THE UNAUTHORIZED RESALE,
EXPORT, ALTERATION, AND/OR TAMPERING OF YOUR SAFELINK WIRELESS PHONE, ITS SOFTARE, THE SERVICE
AND/OR PIN NUMBERS, THROUGH ARBITRATION INSTEAD OF SUING IN COURT IN THE EVENT THE PARTIES ARE
UNABLE TO RESOLVE A DISPUTE OR CLAIM. ARBITRATION IS BINDING AND SUBJECT TO ONLY A VERY LIMITED
REVIEW BY A COURT. THIS ARBITRATION CLAUSE SHALL SURVIVE TERMINATION OF TRACFONE WIRELESSlM
AGREEMENT WITH YOU. This provision is intended to encompass all disputes or claims arising out of your
relationship with TracFone Wireless, arising out of or relating to the Service or any equipment used in connection
with the Service (whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory).
Nothing contained in this arbitration provision shall preclude TracFone Wireless from bringing claims concerning
the unauthorized resale, export, alteration, and/or tampering of your SAFELINK WIRELESS phone, its software, the
Service and/or PIN numbers, in state or federal court. References to you and TracFone Wireless include our
respective subsidiaries, affiiates, predecessors in interest, successors, and assigns. All claims, except those
excluded above, wil be resolved by binding arbitration where permitted by law. You must first present any claim
or dispute to TracFone Wireless by contacting Customer Care to allow an opportunity to resolve the dispute prior
to initiating arbitration. The arbitration of any dispute or claim shall be conducted in accordance with the
American Arbitration Association ("AM") under the Commercial Dispute Resolution Procedures and the
Supplementary Procedures for Consumer Related Disputes (collectively, "AM Rules"), as modified by this
agreement. The AM Rules are available online at ww.tracfone.com or by calling the AM at 1-800-778-7870. You
and TracFone Wireless agree that use of the Service evidences a transaction in interstate commerce and this
arbitration provision wil be interpreted and enforced in accordance with the Federal Arbitration Act and federal
arbitration law. All issues are for the arbitrator to decide, including the scope of this arbitration clause, but the
arbitrator is bound by the terms of this agreement. You and TracFone Wireless agree that any arbitration will be
conducted on an individual basis and not on a consolidated, class wide or representative basis. Further, you agree
that the arbitrator may not consolidate proceedings or more than one person's claims, and may not otherwise
preside over any form of a representative or class proceeding, and if this preclusion of consolidated, class wide or
representative proceedings is found to be unenforceable, then this entire arbitration clause shall be null and void,
All fees and expenses of arbitration wil be divided between you and TracFone Wireless in accordance with the WIA
Rules, except that TracFone Wireless wil reimburse you for the amount of the fiing fee in the event you prevail in
the arbitration, Each party wil bear the expenses of its own counsel, experts, witnesses, and preparation and
presentation of evidence. If for any reason this arbitration provision is deemed inapplicable or invalid, or to the
extent this arbitration provision allows for litigation
CERTIFICATE OF SERVICE
1bs is to certify that I have duly served TracFone Wireless, Inc.'s Direct Testimony and
Exhibits, as indicated, on the following, ths 24th day of Februar, 2010, by electronic mail
addressed as follows:
Sta Counsel Support
Public Utilties Commssion of Nevada
1150 East Wiliam Street
Carson City, NY 89701-3109
pucn.sc~puc.nv.gov
Don Eachus
Verizon - State Public Afais, Policy &
Communcations
112 S. Lakeview Canyon Road CA501LS
Thousand Oak, CA 91362
don.eachus~verion.com
Tamara Cordova
Staff Counsel
Public Utilties Commssion of Nevada
101 Convention Center Drive, Suite 2
Las Vegas, NY 89109-2042
tcordova~puc,nv.gov
Karen Peterson
Allson, MacKenzie, Pavlaks, Wright & Fagan,
Ltd.
402 N, Division Street
Carson City, NY 89703
kpeterson~allisonmackenzie.com
Louise Utting~r
Assistant Staff Counsel
Public Utilties Commission of Nevada
1 150 East Wiliam Street
Carson City, NY 89701-3109
uttinger~puc.nv ,gov
Karen Pearl, Executive Director
Nevada Telecommuncations Association
P.O. Box 34449
Reno, NY 89533-4449
nevtelassn~sbcglobal.net
Linda Stina
Central Telephone Company
303 S. Valley View Blvd.
Las Vegas, NY 89107
linda.c.stinar~centulink.com
Torr Somers
Central Telephone Company
330 S. Valley View Blvd.
Las Vegas, NY 89107
torr .r.somers~centulink,com
rd4Ra ond Lee
2
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that I have this 26th day of February 2010, served the forgoing
First Amended Application of TracFone Wireless, Inc. for Designation as an Eligible
Telecommunications Carrier upon the following by sending a copy thereof via electronic mail to:
Grace Seaman
Utilities Analyst
Idaho Public Utilities Commission
472 W Washington
Boise, ID 83702
grace,seaman~puc.idaho.gov ~ú
Ra ond Lee
TracFone's Application 30