20110225Fuentes Direct.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street
P.O. Box 2564.83701
Boise, Idaho 83702
Febru 25, 2011
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Comnssion
472 W. Washigton St.
Boise, Idao 83720
Re: In the Matter of The Application ofTracFone Wireless
TFW- T -09-01
Dear Ms. Jewell:
Chas. F. McDevitt
Dean J. (Joe) Miler
""i:..--..g
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..............-0:i-..oN
Enclosed for fig, please fid nie (9) copies of the Direct Testiony and exhbits of Jose
Fuentes, with one copy desigated as the "Reporter's Copy." A compact disk contag the Direct
Testiony and exhibits of the above:-named witnesses is also enclosed.
Kidly retu a fie staped copy to me.
Ver Truy Yours,
McDevitt & Mier lL~~~Dean J. Mier ~
DJM/hh
Encl.
co y
Dean J. Miller (lSB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, il 83702
Tel: [phone]
Fax: [phone]
joe(ßcdevitt-m.ller.com
chasW)mcdevitt -miler. com
RECEI
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Mitchell F. Brecher
Debra McGuire Mercer
GREENBERG TRAURIG, LLP
2101 L Street, NW, Suite 1000
Washington, D.C. 20037
Tel: [phone]
Fax: [phone]
brechermW)gt;aw.com
mercerdmW)gtlaw.com
Attorneys for TracFone Wireless, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TRACFONE WIRELESS, INC. FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARER.
) CASE NO. TFW-T-09-01
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BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
DIRECT TESTIMONY OF JOSE FUENTES
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WHAT is YOUR NAME AND OCCUPATION?
My name is Jose Fuentes. i have been Director of Governent Relations for
TracFone Wireless, Inc. ("TracFone") for the past two years. I am responsible for
facilitating TracFone's designation as an Eligible Telecommuncations Carer by
state utilty commissions and for implementig SafeLink Wireless~ Lifeline
servce thoughout the United States. I am also the corporate spokesperson for the
SafeLink Wireless~ brand.
WHAT is THE PURPOSE OF YOUR TESTIMONY?
This direct testimony is being filed in support of TracFone's First Amended ETC
Application, fied with ths Commission on March 1,2010. My testimony wil
show that TracFone's First Amended ETC Application meets the federal and
Idaho requirements for ETC designation to the extent those requirements are
applicable to TracFone as a prepaid, non-facilities-based reseller of commercial
mobile radio service ("CMRS") that seeks ETC designation for the limited
purose of using federal Universal Servce Fund resources to provide Lifeline
serice to qualified low-income Idaho households.
The federal requirements are contained at Section 214 of the
Communications Act of 1934, as amended, and in the rules of the Federal
Communications Commission ("FCC"). The Idaho ETC designation, cerification
and reporting requirements are contained in the Appendix to In the Matter of the
Application ofWWC Holdig Co., Inc. DBA Cellular-One~ Seeking Designation
as an Eligible Telecommuncations Carer That May Receive Federal Universal
Serce Support, Order No. 29841, Case No. WST-T-05-1(Idaho Pub. Utilties
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Comm'n: August 4, 2005), which I wil reference as the "ETC Checklist" in my
testimony.
WHAT is TRACFONE?
TracFone is a 98%-owned subsidiar of America Movi1. Amerca Movil is the
four largest wireless telecommunications carer in the world, serving over 260
milion customers throughout Latin America, the Carbbean and the United States.
TracFone is the largest provider of prepaid wireless serice in the United States
serg over 17 milion customers under the brands TracFone~, NETlO~, Straight
Ta1k~, and SafeLink Wireless~. TracFone's market share in prepaid wireless in
the United States continues to grow, now at over 30% according to Neilson and
others. TracFone is also the fift largest wireless carer and largest mobile
virtal network operator in the United States in terms of total customer counts.
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.
112th Avenue, Miami, FL 33178.
DOES TRACFONE HAVE A PRESENCE IN IDAHO?
TracFone is a reseller of CMRS thoughout the United States, including the State
ofIdaho. TracFone provides service though a "virtal network" consisting of
services obtained from licensed operators of wireless networks. TracFone has
provided CMRS serice thoughout the State of Idaho continuously for over
twelve years. In Idaho, TracFone obtains service from the following underlying
carers: AT&T Mobility, T-Mobile, and Verizon Wireless. TracFone's
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arangements with these provider enable it to offer services wherever any of
those providers offer servce in the State of Idaho.
DOES TRACFONE HAVE THE ABILITY TO PROVIDE LIFELINE?
Yes. TracFone, through its arangements with the underlying carer listed
above, has the ability to provide all serices and fuctionalities supported by the
universal service program, as detaled in the FCC rules at 47 C.F.R. § 54.101,
thoughout its underlyig carers' coverage areas in Idaho. Upon designation as
an ETC, TracFone wil make available to consumers a Lifeline offering, under the
brand SafeLink Wireless~, which wil provide consumers with all of the
fuctionalities and featues curently provided by TracFone to existing customers.
TracFone will provide Lifeline serice to qualifyng low-income Idaho
households requesting these serces puruant to the unversal servce program
and in accordance with federal law. TracFone requests ETC designation
statewide in all exchanges to the extent that its underlying carers have facilities
and coverage.
WHAT AR THE GENERAL TERMS OF TRACFONE'S SAFELINK
WIRLESS~ LIFELINE SERVICE?
TracFone's Lifeline customers in all states, including Idaho, have the option to
select from thee monthly plans. The plans are as follows:
1) 250 free minutes each month, which do not car over to the next
month if unused (unless there are unused purchased minutes at the
end of the month), with texting available at a rate of one text per
minute of airtime; or
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TracFone Wireless, Inc.
1 2)125 free minutes each month, which car over to the following
2 month if unused, with texting available at a fate of one text per
3 minute of airtime; or
4 3)68 free minutes each month, which car over to the following
5 month if unused, with texting available at a rate of 3 texts per each
6 minute of airime, plus International Long. Distance callng to over
7 100 destinations.
8 A list of the international destinations is provided as Exhibit NO.1. Customers
9 who choose the 125 minute plan or the 68 minute plan are able to car over all
10 unused minutes on a month-to-month basis. There is no limit on the number of
11 minutes that may be carred over to the following month. As noted above,
12 whenever a SafeLink Wireless~ customer enrolled in the 250 minute plan
13 purchases additional airtime minutes, those purchased additional minutes wil not
14 expire at the end of the month of purchase. Instead, those purchased minutes wil
15 be cared over for thee succeeding months. In addition, when such customers
16 purchase additional minutes durng a month the unused portions of those
17 customers' free allotment of 250 minutes wil not expire at the end of the month.
18 Rather, like the purchased additional minutes, they wil be cared over for thee
19 succeeding months. However, if a customer enrolled in the 250 minute plan does
20 not purchase any additional minutes, unused minutes will not car over to the
21 following month. Exténding the expiration of the free allotted minutes of Lifeline
22 customers who purchase additional airtime minutes wil ensure that no customer
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who purchases additional minutes wil lose any purchased, but unused, minutes in
less time than the normal expiration date for such purchased minutes of airtime.
TracFone wil provide E911-compliant handsets to its paricipating
Lifeline customers at no charge. The cost of those handsets, including delivery to
consumers, wil be borne solely by TracFone with no support from the federal
Universal Service Fund. TracFone wil pre.-activate handsets provided to
qualified customers, 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 and ready for immediate use upon
receipt. Low-income customer who have limited access to communications
sources wil gain immediate and free access to wireless telecommunications
service simply by tung on the handsets provided by TracFone. In addition,
SafeLink Wireless~ Lifeline customers in Idaho wil be able to contact customer
service by dialing 611 from their SafeLink Wireless~ phones, without having
any minutes deducted.
TracFone pledges that one hundred percent of the federal Lifeline support
it receives wil be flowed though to Lifeline customers in the form of free usage.
TracFone's terms and conditions governg SafeLink Wireless~ Lifeline serice
are attached as Exhibit No.2.
WILL IDAHO LIFELINE CUSTOMERS BE ABLE TO PURCHASE
ADDITIONAL WIRELESS AIRTIME MINUTES? IF SO, AT WHAT PRICE?
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Yes. SafeLink Wireless~ Lifeline customers will be able to purchase additional
minutes at any retail location where TracFone services are sold at a rate of $0. i 0
per minute. Although additional minutes may be purchased, based on TracFone's
experience as an ETC in other states, it does not expect that many Idaho Lifeline
customers wil purchase additional minutes. In the states where TracFone has
been providing Lifeline service as an ETC under its prior plan, fewer than seven
percent of Lifeline customers purchased additional wireless airtime in any month.
With the increase of the availability in the number of free minutes to 250,
TracFone has obsered that a signficantly lower percentage of customers who
select the 250 minute option purchase additional minutes.
EARLIER IN THIS PROCEEDING, TRACFONE STATED THAT ITS
SAFELINK WIRELESS~ SERVICE INCLUDED 67 MINUTES OF AIRTIME
EACH MONTH. WHY DID TRACFONE ENHANCE ITS LIFELINE
PROGRAM WITH THESE NEW OPTIONS?
TracFone is the industr leader in prepaid wireless Lifeline service. It was the
first wireless carer to obtai a favorable forbearance ruling from the FCC to
enable it to be designated as an ETC for the purpose of providing Lifeline service
without providing serice, at least in par, using its own facilities. TracFone was
the first non-facilities-based telecommuncations company to become designated
as an ETC in any state. TracFone was the first ETC to offer a Lifeline plan which
provided Lifeline customers with free service rather than discounts on the
monthly service prices biled to those customers. As TracFone's Lifeline business
grew, and as it sought ETC designation in other states, it was becoming apparent
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that consumer groups and others were becoming increasingly critical of
TracFone's program and were advocating that low-income consumers needed
more free minutes. TracFone was also aware that another ETC offerng prepaid
wireless Lifeline service in cerain states had introduced a Lifeline plan which
provided its Lifeline customers with 200 free minutes per month. As a result of
these developments, TracFone began to evaluate its Lifeline program and to
consider changes. In 2010, TracFone commissioned extensive market research
into customer needs and wants and commenced a seres of market tests in which it
offered differing amounts of free minutes in varous states. The results of that
research and testing enabled TracFone to gauge such factors as the relationship of
free minutes to consumer demand, whether consumers prefered additional free
minutes to other benefits such as the ability to car over unused minutes to
succeeding months, or the ability to place international calls, and the importance
oftext messaging to Lifeline customers. TracFone analyzed the data it compiled
from its market tests and developed the thee options.
PLEASE DESCRIBE THE DIFFERENCES IN THE THREE OPTIONS?
The first option provides for 250 free minutes of wireless airtime each month.
Unlike the other two options, unused minutes do not car over from month to
month (unless, as I explained earlier, there are unused purchased minutes at the
end of the month). This plan was developed in response to concerns from
consumer advocacy groups around the country that low-income households need
more free minutes than were available under TracFone's prior plan. TracFone's
second option provides 125 free minutes each month with unused minutes
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carng over from month to month. That option also allows for text messagig at
the rate of 1 text per minute of airtime. This plan, like TracFone's initial plan
(now the third option) allows for minutes to car over but provides 57 more
minutes (nearly an hour of airtime) per month. It also allows for text messagig.
The third option provides 68 free minutes each month, with unused minutes
carng over to the following month. The plan also allows for text messaging,
but at a lower rate than the text rate of the first two options. The plan also allows
for international long distance callng. This is the only plan in the industry that
allows international long distace calling to more than 100 international
destinations at no additional charge.
WHICH OPTION IS MOST BENEFICIAL TO CONSUMERS?
Whch of the three options is most favorable to any Lifeline customer wil depend
on the calling needs of the specific customer. For those customer who want the
maximum amount of free airtime each month, the first option wil be the best
choice. Therefore, TracFone expects that most Lifeline customers will select that
option. However, TracFone's market research and testing confirmed that some
Lifeline-eligible low-income households prefer the car over featue and prefer
to save unused minutes from month to month rather than lose unused minutes at
the end of the month. For those customers, either the second or thrd option
would be preferable. Other customers do not have large daily calling needs but
do have an ongoing need to communcate with persons in foreign countres. For
example, many of TracFone's Lifeline customers who are recent imigrants
value the ability to use their free Lifeline minutes to call frends and relatives in
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their home countres. For such customers, the thrd option which includes
intemationalcalling would be the most attractive option, despite the fact that the
option provides fewer total free minutes than either of the other two options. The
point is that Lifeline custpmer will have a choice of options which best meet
their needs.
DOES TRACFONE ANTICIPATE FURTHER CHANGES TO ITS LIFELINE
OPTIONS?
The wireless telecommunications serice market is evolving as new competitors
enter, new products are introduced and technology improves. TracFone, like most
prudent businesses, constantly monitors market developments and changes its
servces accordingly. When TracFone first introduced SafeLink Wireless~ in
2008, its plan was "state of the ar." No other company before had offered a
Lifeline program which included free service. As with other wireless services,
what was deemed to be a desirable service two years ago may no longer be what
consumers need and expect. It is for that reason that TracFone introduced its new
plans in August 2010. At ths time, TracFone has no plans to change these
options. However, it is possible that in the futue, fuher changes wil be
appropriate. One thing is certain -- throughout the history of the commercial
mobile service industr the consistent trend has been lower prices, increased and
improved services and featues. TracFone expects that trend to continue
thoughout the wireless telecommuncations market, including the Lifeline
segment of the market. TracFoneis a company prepared for change and it wil
continue to respond accordingly.
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WILL TRACFONE ASSIST APPLICANTS FOR ENROLLMENT IN ITS
LIFELINE PROGRAM TO SELECT THE OPTION MOST APPROPRIATE
FOR THE APPLICANTS?
Yes. TracFone's website wil contai detailed descriptions of each of the three
options. In addition, when prospective SafeLink Wireless~ Lifeline customers
contact TracFone's Lifeline enrollment deparment, they wil be asked to select
which option they prefer. Customer service representatives who assist customers
in the Lifeline enrollment process wil be trained to explain the options, to answer
questions and to help applicants deterne which option is best for them.
Moreover, customers are free to change plans as often as they wish. Therefore, if
a customer is not satisfied with a certain option, he or she can switch to another
option.
HOW DOES TRACFONE'S LIFELINE OFFERING BENEFIT IDAHO
CONSUMERS?
Not too many years ago, wireless telecommuncations service was considered to
be a luxur item that only upper income consumers and business customers could
afford. In recent years, wireless service prices have decreased, new and improved
services and devices have become available and milions of Amercans have come
to rely on wireless service as an essential tool in an increasingly mobile society.
Until recently, the lowest income segments of the population had limited, and
often no, available wireless service options. TracFone has made it possible for
Lifeline-eligible low-income households in many states to obtain wireless
handsets and mobile service though its SafeLink Wireless~ Lifeline program.
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Furherore, the mobile natue of SafeLink Wireless~ wil bring Lifeline-
supported serce to those needy Idahoans with no peranent fixed address.
TracFone has been working with the FCC and with operators of homeless shelters
in varous states to enable homeless persons residing in such shelters to enroll in
SafeLink Wireless~. It plans to do that in Idaho as well.
TracFone's Lifeline offerng wil enable low-income Idaho residents who
qualify for Lifeline assistace to receive 250 minutes of free service per month.
TracFone is not aware of any pary to ths proceeding who has suggested that 250
free minutes wil not be a suffcient amount of servce. Neither is TracFone
aware of any wireless ETC operating in Idaho or elsewhere which provides
Lifeline customers with more free minutes than TracFone wil provide to Idaho
Lifeline customers under its first option.
WILL TRACFONE'S LIFELINE OFFERINGS DIFFER FROM THOSE OF
OTHER IDAHO ETCS? IF SO, HOW?
TracFone's Lifeline offerngs differ from other Idaho ETCs' Lifeline programs in
several ver important respects. First, TracFone wil offer low-income consumers
the convenience, portbility, and securty of wireless services. In addition, unlike
all other ETCs' Lifeline programs, TracFone's Lifeline servce wil provide
quantities of wireless usage at no charge to the consumer. Stated simply,
TracFone's Lifeline servce will be free to qualified customers. Typically,
Lifeline programs provide parcipating consumers with discounts below carers'
standard rates. However, enrolled Lifeline customers stil must pay the ETC's
discounted rates as well as standard rates for additional services and featues not
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subject to the Lifeline discount (including, for example, long distace toll charges
and charges for vertcal featues like call waiting, voice mail, and caller ID), and
face service termination 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 fuded by the USF, the customer wil stil receive an invoice for
$20.00, plus additional charges incured during the biling perod as well as
varous taxes and fees. Such customers wil face termination of service if they
fail to pay those biled amounts -- amounts which often are well in excess of the
discounted local service portion of their bils. TracFone's Lifeline customers wil
not receive bils. Furherore, TracFone's Lifeline customers will be able to
initiate and receive calls from their wireless phones without incurng any
activation charges. In addition, unlike the Lifeline services of other Idaho ETCs,
TracFone's service wil include at no additional charge important vertical featues
like caller ID, call waiting, and voice maiL.
DOES TRACFONE MEET THE REQUIREMENTS FOR ETC
DESIGNATION?
TracFone meets all applicable federal and Idaho requirements for ETC
designation. In addition, TracFone recognzes that the Communications Act
states that ETCs shall offer services, at least in par, over their own facilities and
prohibits state commissions from designating as an ETC a telecommuncations
carer that offers servces exclusively though the resale of another carer's
services. However, on September 8, 2005, the FCC granted a petition filed by
TracFone that requested the FCC to exercise its forbearance authority with respect
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to the facilities-based service requirement ("TracFone Forbearance Order). The
TracFone Forbearance Order is attached as Exhibit No.3. In an Order dated April
11, 2008, the FCC designated TracFone as an ETC in ten states and the Distrct of
Columbia, subject to the conditions set fort in the TracFone Forbearance Order.
Those conditions include TracFone providing its Lifeline customers with 911 and
enhanced 911 ("E911") access regardless of activation status and availability of
prepaid minutes; obtaining a cerification from each Public Safety Answering
Point ("PSAP") where TracFone provides Lifeline servce confirming that
TracFone complies with the 911 serice condition; providing its Lifeline
customers with E911-compliant handsets; requiring its customers to self-certify at
time of service activation and anually thereafter that they are the head of
household and receive Lifeline-supported service only from TracFone; and
establishing safeguards to prevent its customers from receiving multiple TracFone
Lifeline subsidies at the same address. On March 5, 2009, the Commission issued
an Order modifyng one of the conditions imposed in the TracFone Forbearance
Order requiring that TracFone obtain a cerification from each PSAP where
TracFone provides Lifeline service confirming that it provides its customers with
access to basic and E911 service. The March 5,2009 Order is attached as Exhibit
NO.4.
DO ANY OF THE CONDITIONS IMPOSED ON TRACFONE IN THE
FORBEARNCE ORDER APPLY TO TRACFONE'S DESIGNATION AS AN
ETC IN IDAHO?
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Yes. I understand that all state commissions, including this Commission, are
required to comply with the FCC's decision to forbear from applying or enforcing
the facilities requirement on TracFone. Accordingly, the FCC-imposed
conditions offorbearance are binding on TracFone in all jursdictions where it
may be designated as an ETC.
WHAT FUNCTIONS WILL TRACFONE OFFER TO LIFELINE CUSTOMERS
IF GRANTED ETC STATUS?
Upon designation as an ETC in Idaho, TracFone wil offer all of the services and
fuctionalities required by the FCC's rues (47 C.F.R. § 54.101) and the ETC
Checklist, ir A.2. as applicable to TracFone. These serices and fuctionalities
include the following:
Voice Grade Access to the Public Switched Network.
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.
Local Usage.
As par of the voice grade access to the public switched telephone
network, an ETC must provide local calling. TracFone provides customers the
ability to send and receive local phone calls wherever it provides servce.
TracFone's Lifeline offering allows customers to use their free aiime minutes
(68, 125, or 250 minutes, depending on the Lifeline offering in which the
customer is enrolled) to send and receive local phone calls by using their free
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1 airtime minutes. Thus, a cerin amount of free local usage is included in
2 TracFone's Lifeline callng plan. The FCC rules require an ETC applicant to
3 show it has a local usage plan comparable, although not identical, to that offered
4 by the incumbent local exchange caers ("ILECs") in the same service areas.
5 Furermore, the FCC has not adopted any mium local usage requirements.
6 As a designated ETC, TracFone wil comply with any applicable minimum local
7 usage requirements established by the FCC. Wireless and wireline servces,
8 though increasingly substitutable for each other, are different from each other and
9 they are priced differently. Given those differences, the FCC and ETC
10 designating authorities in 24 states have concluded that TracFone's local service
11 offering meets the comparability stadard codified in the FCC's rules.
12 This Commission, however, does not require ETC applicants to comply
13 with the FCC's comparability standard. Instead, ETC Checklist, ir BA requires an
14 ETC applicant to provide a description of its local usage plans and a description
15 of the local usage plans of the ILECs. As I just descrbed, TracFone's Lifeline
16 offering includes free airtime minutes that can be used for local calling. Based on
17 a review of information available on ILECs' websites, ILECs providing service
i 8 withn TracFone's proposed Lifeline serice area offer unlimited local usage at
19 the following rates: Cambridge Telephone Company - $16.50-$24.10; Inland
20 Telephone Company - $13.80-$26.00; Rural Telephone Company - $25.76;
21 Verzon Nortwest - $12.78; Qwest Corporation - $12.00-$24.00. The ILECs'
22 monthly rates may var depending on the location of the customer. ILECs'local
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1 usage plans are also available on the Commission's website at
2 http://ww.puc.state.id.us/tarffapproved!approved.htm.
3 Dual Tone Multi-Frequency (DTMF) Signaling or Its Functional Equivalent.
4 DTMF signaling allows carers to provide expeditious call set-up and call
5 detail information and enables modem usage. All telephone handsets provided
6 by TracFone are DTMF-capable as required by federal law.
7 Single-pary Service or Its Functional Equivalent.
8 Single-party service means that only one pary wil be sered by a
9 subscriber line or access loop in contrast to a multi-pary line. TracFone provides
10 customers with single-pary access for the duration of every phone calL.
11 Access to 911 and E911 Emergency Service.
12 TracFone provides unversal access to the 911 system for its customers.
13 TracFone has implemented and wil continue to implement enhanced 911 serices
14 consistent with the FCC's rules and orders applicable to wireless resellers. Given
15 that TracFone is a reseller, it does not own or operate any facilities. TracFone has
16 the ability to remain fuctional in emergency situations. TracFone provides
17 service in Idaho by resellng services of underlying wireless network carers,
18 including AT&T Mobility, T -Mobile, and Verizon Wireless. Those network
19 operators have implemented state-of-the-art network reliabilty stadards.
20 TracFone and its customers benefit from the network operators' high stadards.
21 Throughout its more than twelve years of operation, TracFone has never received
22 a complaint about a 911 system failure.
23 Access to Operator Services.
Fuentes, Di 16
TracFone Wireless, Inc.
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TracFone offers all its customers access to operator serices.
Access to Interexchange Serice.
TracFone does not impose separate charges for interexchange calls. Long
distance calling is included in TracFone's service with no additional charge.
Access to Directory Assistance.
All TracFone customers, including those customers located in Idaho, have
access to directory assistance services provided by TracFone's vendors. Unlike
other telecommunications carers, TracFone does not impose separate charges for
directory assistance.
Toll Limitation for Qualified Low-Income Customer.
There is no need for TracFone to offer a toll limitation featue to
qualifyng low-income customers. Since TracFone's serice is a prepaid service,
no customers wil incur toll charges that they canot pay for or 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. Therefore, customers are
not subject to additional charges for toll serces.
WILL TRACFONE OFFER LINK-UP SERVICE IN IDAHO?
TracFone does not seek designation as an ETC for the purose of offerig Link-
Up service to customers. In the TracFone Forbearance Order, the FCC forbears
from applying the facilities requirement to TracFone only for the purose of
offerig Lifeline serice. Moreover, TracFone does not impose activation or
connection charges -- charges which are offset by Link-Up support. Thus, there is
no need for TracFone to offer Link-Up.
Fuentes, Di 17
TracFone Wireless, Inc.
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HOW QUICKLY WILL TRACFONE BE ABLE TO START PROVIDING
LIFELINE SERVICE?
Within a very reasonable timeframe, since TracFone already provides
service in Idaho by reselling serice which it obtains from underlying facilities-
based providers. Each of those providers' networks are operational and largely
built out. Thus, TracFone already serves those areas. The only delay wil be the
time needed to implement proceures and internal systems to offer the Lifeline
program.
HOW RELIABLE IS TRACFONE'S QUALITY OF SERVICE?
As a reseller of other cariers' wireless services, TracFone's service is of the same
quality and reliability as that of its underlying vendors. I canot assure the
Commission that TracFone wil never experience servce disruptions. Occasional
dropped calls and inconsistent coverage depending on atmospherc conditions are
a fact oflife in the wireless industr. However, TracFone's 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 ~ Consumer Code for Wireless Service. A copy of the
CTIA Code is attached as Exhibit No.5. TracFone's SafeLink Wireless~ serice
is also subject to a Privacy Policy available to all customers on its website at
ww.safelink.com. A copy of the Privacy Policy is attched as Exhibit No.6.
CAN TRACFONE MEET ALL RESPONSIBILITIES UNDER THE CTIA
CONSUMER CODE GWEN ITS RESELLER STATUS?
Fuentes, Di 18
TracFone Wireless, Inc.
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Yes. TracFone is able to and does meet each of the CTIA Consumer Code
provisions. The following describes TracFone's compliance with each of the
provisions of the CTIA Consumer Code for Wireless Service.
Disclose rates and terms of serce to consumers: TracFone discloses its rates and
terms of serice to consumer on its website.
Make available maps showing where serice is generally available: TracFone
makes available maps showing where service is generally available on its website.
See http://ww.tracfone.comljsplib/verify mapcov.jsp. Coverage maps are
accessed by clicking on "Site Map" on TracFone's home page, then clicking on
"Coverage Maps".
Provide contract terms to customers and confirm changes in service: TracFone
does not require its customers to enter into contracts. TracFone's service is
governed by the terms and conditions as set forth on its website.
Allow a tral period for new serice: TracFone only offers prepaid service and
does not charge an early termination fee. Consumers can purchase the amount of
airtime minutes they wish to use. Therefore, there is no need for TracFone to
offer a tral period for service. Customers may terminate their use of TracFone
serice at any time without incurng any penalty or termination charge.
Provide specific disclosures in adversing: TracFone provides specific
disclosures in any advertising of prices. TracFone does not charge activation or
initiation fees, monthy access fees, or early termination fees and does not have a
required contract term or peak and off-peak callng times. TracFone makes all
disclosures related to prices that are applicable to its service.
Fuentes, Di 19
TracFone Wireless, Inc.
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Separately identify carer charges from taxes on biling statements: As a prepaid
service provider, TracFone does not issue billng statements. Therefore,
requirements concerning biling statements are not applicable to TracFnne.
Provide customers the right to terinate service for changes to contract terms:
TracFone does not require its customers to enter into contracts. TracFone's
serice is governed by the ters and conditions as set fort on its website.
Therefore, requirements concerning cancellation of contracts are not applicable to
TracFone.
Provide ready access to customer serice: TracFone provides ready access to its
customer service deparent via a toll-free telephone number durng regular
business hours. TracFone's toll-free customer service telephone number is
provided on its website and in all communications with its customers.
Promptly respond to consumer inQuiries and complaints received from
governent agencies: TracFone promptly responds to consumer inquiries and
complaints received from federal and state goverent agencies.
Abide by policies for protection of consumer privacy: TracFone's Privacy Policy
is available to all customers on its website. TracFone also complies fuly with
applicable requirements governng Customer Proprietar Network Information set
forth at Section 222 of the Communications Act and in the FCC's rules.
HOW WILL TRACFONE ENSURE THAT ELIGIBLE CUSTOMERS AR
MADE AWARE OF ITS SERVICES?
TracFone wil aggressively adverse the availability of its SafeLink Wire1ess~
Lifeline servce and the associated charges using media of general distribution, in
Fuentes, Di 20
TracFone Wireless, Inc.
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accordance with the requirements under federal and Idaho state law. TracFone
plans to utilize such marketing and outreach efforts as necessar and appropriate
to ensure that as many potentially eligible consumers are aware of TracFone's
prepaid wireless Lifeline offering. TracFone understands that it wil be
competing with other ETCs in Idaho, including the incumbent local exchange
carers, which may 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 will 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 programing is
targeted to signficant lower income communties including, for example, Spanish
language stations in areas with signficant Spanish-speaking populations.
WILL TRACFONE OFFER LIFELINE SERVICES THROUGHOUT THE
PROPOSED SERVICE AREA AND ATTEMPT TO PROVIDE SERVICE TO
EVERY REQUESTING CUSTOMER IN THE AREA AS REQUIRED BY ETC
CHECKLIST, ~ B.l ?
Yes. Ths requirement is based on FCC rule 54.202(a)(1)(i) (47 C.F.R. §
54.202(a)(1)(i)), which provides that in order to be designated as an ETC, a
carer must commit to provide service thoughout its proposed designated serice
area to all customers making a reasonable request for service. ETC Checklist, ~
B.l also refers to the six-step process that must be used when service is requested
within the applicant's serce area, but outside its existing network coverage. The
Fuentes, Di 21
TracFone Wireless, Inc.
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purose of this requirement is to ensure that an ETC is using high-cost support to
expand and improve network services. TracFone does not own and operate a
network and it will not seek high-cost support. However, TracFone wil provide
serice on a timely basis to all qualified customers requesting Lifeline service
within its designated service area. TracFone, as a reseller, defines its servce area
to include the coverage areas of its underlying carers. TracFone does not have
the ability to expand or make any changes to the networks of its underlying
carers. As such, it can only comply with requests for serce within its
underlying carers' servce areas.
is TRACFONE ABLE TO REMAIN FUNCTIONAL IN EMERGENCIES AS
REQUIRED BY ETC CHECKLIST, ~ B.2?
In accordance with FCC Rule 54.202(a)(2) (47 C.F.R. § 54.202(a)(2)) and ETC
Checklist, ~ B.2, TracFone has the abilty to remain fuctional in emergency
situations. Given that TracFone is a reseller, it does not own or operate any cell
sites, microwave hubs, or switches. Therefore, the requirement that TracFone
demonstrate that it has back-up power and is able to reroute and manage traffc in
emergency situations is not applicable. TracFone provides service in Idaho by
reselling services of underlying wireless network carers, including AT&T
Mobility, T -Mobile, and Verzon Wireless. Those network operators have
implemented state-of-the-ar network reliability standards. TracFone and its
customers benefit from the network operators' high standards. Thoughout its
over twelve years of operation, TracFone's servce reliability has compared
favorably with that of any facilities-based operator in the wireless
Fuentes, Di 22
TracFone Wireless, Inc.
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telecommunications industr.
WILL TRACFONE'S RESELLER STATUS LIMIT ITS ABILITY TO
RESOLVE ALL COMPLAINTS REGARING ITS SERVICE THAT MAY BE
RECEIVED BY THE COMMISSION?
No. TracFone has been providing nationwide wireless telecommuncations
service for more than twelve years. During that time period, TracFone has
satisfactorily resolved complaints that have been forwarded to it by state utility
commissions and by the FCC. TracFone's status as a reseller has not limited its
ability to address and resolve any complaint. TracFone will promptly work to
resolve any complaits it receives from this Commission or from an Idaho
customer.
WILL TRACFONE BE ABLE TO COMPLY WITH THE ANNAL
REPORTING REQUIREMENTS FOR ETCS IN IDAHO?
TracFone understands that the anual reporting requirements for ETCs are set
fort in the ETC Checklist, ~ C. TracFone wil be able to comply with all
reporting requirements to the extent that they are applicable to a reseller that only
offers Lifeline serice. Some of the reporting requirements relate to high-cost
support or network improvements, such as the two-year network improvement
plan required by ~ C.L and the high-cost certification required by ~ D. Such
reporting requirements are not applicable to TracFone because it does not seek
high-cost support and does not own or operate a network.
ETC Checklist, ~ C.2. requires a wireless ETC to fie an anual outage
report consistent with 47 C.F.R. § 54.209(a)(2). ETC Checklist, ~ C.2 requires
Fuentes, Di 23
TracFone Wireless, Inc.
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the anual outage report to include information detailing: (A) the date and time
of onset of the outage; (B) a brief description of the outage and its resolution; (C)
the paricular services affected; (D) the geographic areas affected by the
outage; (E) steps taken to prevent a similar situation in the futue; and (F) the
number of customers affected. TracFone receives outage information from each
of its underlying carers in Idaho. The information received by TracFone
identifies the date and time of the onset of the outage, the duration of the outage,
the natue of the outage, and the general geographic location of the outage.
However, as a reseller, TracFone does not own or operate any switches, and
therefore canot identify the steps taken to prevent a similar situation in the
future. Furermore, the outage information provided to TracFone does not
enable TracFone to identify the number of customers affected. Therefore,
TracFone will provide outage information to the extent that it is able to do so. In
ths regard, the Commission should be aware that Section 54.209 of the FCC's
rules is applicable to TracFone as a designated ETC. TracFone submits Section
54.209 reports anually to the FCC for the states in which it is a FCC-designated
ETC.
WHY WOULD DESIGNATION OF TRACFONE AS AN ETC SERVE THE
PUBLIC INTEREST?
The FCC has determined that designation of competitive ETCs serves the public
interest by promoting competition and benefits consumers by increasing customer
choice, inovative services, and new technologies. Designation of TracFone as
an ETC will provide a valuable alterative to the existing Lifeline wireline and
Fuentes, Di 24
TracFone Wireless, Inc.
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wireless servces available in Idaho. TracFone's Lifeline servce wil provide
important public interest benefits, including larger local callng areas, the
convenience and securty afforded by mobile telephone serice, the opportty
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 monthy supply of free service, availabilty of important
vertical featues such as caller ID, call waiting, and voice mail at no additional
charge, and availability ofE911 service in accordance with the FCC's E911
requirements. In addition, TracFone's inclusion of all distance callng (local and
long distance) and roamng withn its calling plans wil enable consumers to avoid
the risk of becoming burdened with large and unanticipated charges for toll
calling.
IS TRACFONE ADDRESSING THE CURRENT ECONOMIC DOWNTURN?
TracFone's SafeLink Wireless~ Lifeline service offers important benefits that are
especially needed by low-income Idaho residents in this time of economic
downtu. Idaho has an unemployment rate of9.5 percent. These conditions
have had a significant impact on Idaho residents. The availability of a mobile
telephone is crtical to many unemployed Idaho residents' efforts to search for
other employment opportities. Without a mobile telephone, unemployed
individuals face extreme diffculty in finding employment. A mobile telephone
allows individuals to be reached at any time and location, which enables
unemployed individuals to respond to potential employers immediately. In
addition, a mobile telephone assists employed low-wage individuals by allowing
Fuentes, Di 25
TracFone Wireless, Inc.
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those individuals to stay in contact with employers, manage relationships with
supervisors, and respond to requests for work of additional shifts or hour.
TracFone's SafeLink Wireless~ Lifeline program wil enable thousands ofIdaho
residents, including residents seeking employment and residents with low-wage
positions, to obtain a handset and wireless service which would otherwise be
unavailable to them.
WHY WOULD IDAHO BENEFIT FROM ANOTHER ETC PROVIDING
LIFELINE SERVICE?
As I wil describe below, a signficant number of Idaho residents who are eligible
for Lifeline benefits are not enolled in a Lifeline program with an ETC. Whle
TracFone does not know the precise causes for the undertilzation of a program
established to provide discountèd telecommuncations servces to low-income
households, based on its experience in other states, it believes that its Lifeline
service wil attract a significant number eligible low-income Idaho consumers.
WHAT ARE SOME BENEFITS OF INCREASED COMPETITIV CHOICE?
The benefits of competitive choice are especially valuable in situations in which
wireless providers like TracFone seek to provide servce to rual communties and
elsewhere. The availabilty of a wireless competitive alternative benefits those
rual consumers who often must drve significant distances to work, schools,
stores, and other communty locations. TracFone's prepaid wireless servce
alterative wil provide all qualified Lifeline consumers with convenient and
affordable telecommuncations service, both from their residences and when they
are away from their homes.
Fuentes, Di 26
TracFone Wireless, Inc.
1 TracFone believes that many consumers, including qualified Lifeline
2 customers, view the portability and convenience of wireless servce as a modem
3 necessity, not a luxur. Parents need to be able to reach their children wherever
4 . they may be, and vice versa; persons seeking employment opportities need to
5 be reachable by potential employers, even when they are away from home;
6 persons need to be able to call for emergency assistance while away from home,
7 since not all emergencies requiring 911 access occur at home. TracFone
8 recognizes that not all Lifeline-eligible low-income Idaho consumers wil select
9 TracFone's SafeLink Wireless~ offering. Some consumers wil prefer the
10 traditional Lifeline plans of other ETCs, such as that of their incumbent wireline
11 local exchange carer. For those consumers who would prefer the benefits of a
12 wireless Lifeline plan, SafeLin Wireless~ wil provide an important alternative.
13 According to most recent FCC data available, Idaho's statewide Lifeline
14 paricipation rate is 22.1 percent of eligible households and according to
15 Universal Administrative Service Company the statewide paricipation rate for
16 2009 was between 20 and 50 percent of eligible households. In other words, more
17 than 50 percent of low-income Idaho household that are eligible to receive
18 Lifeline are not receiving Lifeline benefits. TracF one expects that many
19 qualified low-income households wil elect to enroll in its SafeLink Wireless(l
20 Lifeline program, and that the availability of competing Lifeline programs wil
21 encourage greater paricipation in Lifeline. In fact, since late 2008 when
22 TracFone commenced offering SafeLin Wireless~ Lifeline service in three states
23 (Tennessee, Virginia, and Florida), TracFone has substantially increased the
Fuentes, Di 27
TracFone Wireless, Inc.
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number of Lifeline paricipants in each state where SafeLink Wireless~ is offered.
For example, in each of those states, TracFone has increased Lifeline enrollment
by more than one hundred percent.
WHAT ARE THE ADVANTAGES OF TRACFONE'S SERVICE
OFFERINGS?
As described earlier in my testimony, 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
otherise unavailable or unaffordable. TracFone wil offer qualified low-income
Idaho consumers an opportty to acquire wireless serice using state-of-the-ar
E911-compliant handsets and such featues as caller ID, call waiting, voice mail,
text messaging, and long distance calling without toll charges, as well as
international calling to more than 100 destinations. Because TracFone's service
requires no term contracts, no minimum service perods or volume commitments,
no credit checks, and no early termination fees, the serice is available to
everyone - irrespective of age; irrespective of residency; irrespective of
creditwortiness. 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 serce
offers Lifeline-qualified customers access, quality and price. All of these
benefits and advantages wil be available to TracFone's Idaho Lifeline customers.
Fuentes, Di 28
TracFone Wireless, Inc.
1 Q.WILL TRACFONE'S DESIGNATION AS AN ETC RESULT IN
2 CREAM SKIMING IN THE RURAL ILEC ARAS IN WHICH IT SEEKS
3 DESIGNATION AS AN ETC?
4 A.No. A creamskimming analysis as par of the Commission's consideration of
5 TracFone's ETC application is neither not relevant nor appropriate. TracFone is a
6 reseller which seeks ETC designation for the limited purose of providing
7 Lifeline service and wil not seek support from the high-cost fund. The FCC
8 developed the "creamskimming" analysis requirement when it began to designate
9 wireless ETCs who sought support from this high-cost portion of the Universal
10 Serice Fund to subsidize the costs of building alterative networks which would
11 compete with rual LECs. The FCC's concern was that such facilties-based
12 wireless ETCs would get high-cost support to build out competing networks with
13 those of the rual LECs but would actually deploy competing networks only in the
14 most populous areas of the rual ILECs serice terrtories -- effectively
15 "creamskimming" in the LECs' terrtories since the ILECs had to build out
16 thoughout their entire service areas, including the sparsely-populated portions of
17 their serce areas. Since TracFone is a reseller, it wil not, and canot, engage in
18 creamskimming as that term has been used by the FCC. It can provide Lifeline
19 serice only where its underlying vendors have wireless coverage. Ifits
20 underlying vendors do not have coverage, it canot provide service.
21 Q.WHAT KIND OF IMPACT WILL TRACFONE HA VB ON THE FEDERAL
22 UNIVERSAL SERVICE FUND IF GRANTED ETC STATUS?
Fuentes, Di 29
TracFone Wireless, Inc.
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The FCC considered the impact on the USF when determining whether to grant
TracFone's petitions for designation as an ETC and concluded that designation of
TracFone as an ETC for the limited purose of offering Lifeline would not have a
significant impact on the USF. The FCC noted in its decision granting TracFone
forbearance from the facilities requirement for ETCs: "Any increase in the size of
the fud would be minimal and is outweighed by the benefit of increasing eligible
paricipation in the Lifeline program, fuering the statutory goal of providing
access to low-income consumers." TracFone Forbearance Order, ,r 17.
Whatever impact designation of TracFone as an ETC in Idaho wil have
on the size of the universal service fud wil be relatively modest and wil be
more thai offset by the fact that USF resources wil be used for a very important
purose -- to make available to all Amercans, including low-income persons,
affordable telecommunications serices. TracFone seeks ETC designation solely
to enable it to offer Lifeline benefits to eligible low-income Idaho consumers.
TracFone does not seek access to fuds from the federal Universal Serice Fund
for the purose of obtaining high-cost support.
TracFone's designation as an ETC wil not increase the number of persons
eligible for Lifeline support. As stated in the Communcations Act, the unversal
serice fud was established to ensure that quality serices are available to all
individuals at just, reasonable, and affordable rates. TracFone's ability to increase
the Lifeline paricipation rate of qualified low-income individuals from the
curent paricipation rate of less than 50 percent wil fuher. the goal of Congress
to provide all individuals with affordable access to telecommunications serice.
Fuentes, Di 30
TracFone Wireless, Inc.
1 Q.
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ARE THERE ANY OTHER WAYS IN WHICH TRACFONE'S
DESIGNATION AS AN ETC WILL BENEFIT THE PUBLIC INTEREST IN
IDAHO?
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 serce is otherse 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 fuer promoting the extensive role TracFone plays in the provision of
communcations serces to lower income and lower volume users, transient
users, as well as other consumers who either choose not to enter into long-ter
servce commitments or who are unable to meet the credit requirements necessar
to obtain service from other wireline or wireless carers. TracFone's wireless
service enables consumers to enjoy the convenience and securty of wireless
telecommunication without being subject to extensive credit reviews and long-
term serice commitments which historically have limited the availability of
wireless service to many Americans, including many Idaho residents.
IS THERE ANYTHING ELSE YOU WOULD LIKE TO ADD TO YOUR
TESTIMONY?
Based on my testimony above, I would like to reiterate that TracFone meets all
legal requirements for designation as an ETC and that designation ofTracFone as
an ETC for the limited purose of providing Lifeline serice to low-income Idaho
Fuentes, Di 31
TracFone Wireless, Inc.
1 households wil serVe the public interest. Accordingly, the Idaho Public Utilities
2 Commission should unconditionally and promptly grant TracFone's application
3 for designation as an eligible telecommuncations carer so that TracFone may
4 commence providing its SafeLink Wireless~ service to low-income Idaho
5 households at the earliest possible time.
Fuentes, Di 32
TracFone Wireless, Inc.
Exhibit No.1
Case No. TFW-T-09-01
J. Fuentes, TracFone Wireless, Inc.
TracFone International Callng
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Available International Destinations
Calls to cellular phones are not included unless the word "Cellular" is specifically listed next to the country name.
Numbers in parentheses indicate the Country Code.
Albania. Tirana (355)
Andorra (376)
Argentina (54)
Australia (61)
Austria (43)
Bahamas . Cellular (1)
Bahamas (1)
Bangladesh - Cellular (880)
Bangladesh. Chittgong (880)
Bangladesh - Dhaka (880)
Bangladesh - Sylhet (880)
Belgium (32)
Bermuda - Cellular (1)
Bermuda (1)
Bolivia - La Paz (591)
Bolivia - SantCruz (591)
Brazil (55)
Brunei. Cellular (673)
Brunei (673)
Bulgaria (359)
Canada - Cellular (1)
Canada (1)
Chile (56)
China - Cellular (86)
China (86)
Colombia - Cellular (57)
Colombia (57)
Costa Rica (506)
Croatia (385)
Cyprus. Cellular (357)
Cyprus (357)
Czech Republic (420)
Denmark (45)
Dominican Republic (1)
Estonia (372)
Finland (358)
France (33)
French Antiles (596)
French Guiana - Cellular (594)
French Guiana (594)
Georgia (995)
Germany (49)
Gibraltar (350)
Greece (30)
Guadeloupe (590)
Guatemala - Telgua (502)
Hong Kong. Cellular (852)
Hong Kong (852)
Hungary (36)
Iceland (354)
India. Cellular (91)
India (91)
Indonesia - Cellular (62)
Indonesia - Jakart (62)
Indonesia .Surabaya (62)
Iraq - Baghdad (964)
Ireland (353)
Israel (972)
Itly (39)
Japan (81)
Jordan (962)
Kazakhstan (7)
Kenya - Nairobi (254)
Lithuania (370)
Luxembourg.. Cellular (352)
Luxembourg (352)
Macao - Cellular (853)
Macao (853)
Malaysia - Cellular (60)
Malaysia (60)
Malta (356)
Mexico (52)
Monaco (377)
Netherlands (31)
New Zealand (64)
Norwy (47)
Panama (507)
Paraguay (595)
Peru (51)
Poland (48)
Portgal (351)
Romania (40)
Russia. Cellular (7)
Russia (7)
San Marino - Cellular
(378)
San Marino (378)
Saudi Arabia. Riyadh
(966)
Singapore - Cellular (65)
Singapore (65)
Slovakia (421)
Slovenia (386)
South Korea - Cellular
(82)
South Korea (82)
Spain (34)
Sweden (46)
Switzerland (41)
Taiwan. Cellular (886)
Taiwn (886)
Thailand (66)
Turkey (90)
United Kingdom (44)
Uzbekistan (7)
Venezuela (58)
Vietnam - Ho Chi Minh
(84)
zambia (260)
-Available International
Destinations are subject to change
without prior notice.
Privacy Policy I Terms & Conditions I Vendor Code I About Us I Contact Us I Retailers I Affliate Program I Careers I Site Map
ii 2008 TRACFONE(! is a registere trdemark of TracFone Wireless, Inc., a subsidiary of Aménca Móvil.
All other trademarks, service marks, and trade names referenced in this site are the property of their respective owners.
htt://ww.auristechnology.comltracfoneild/countries.asp 2/23/2011
Exhibit No.2
Case No. TFW-T-09-01
J. Fuentes, TracFone Wireless, Inc.
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 upon you once posted on the SAFELINK
WIRELESS website at www.safelink.com. You should check the SAFELINK website regularly for updates to
these terms.
By enrolling in the SAFELINK WIRELESS Program (the "SAFELINK WIRELESS Program" or "SAFELINK Program") and by
using the SAFELINK WIRELESS service (the "SAFELINK WIRELESS Service" or "SAFELINK Service"), you ("You"), the
participant, acknowledge and agree to the following terms and conditions:
1. SAFELINK WIRELESS PROGRA DESCRIPTION.
SAFELINK WIRELESS Service is funded by the Universal Service Fund Lifeline program and administered by the
Universal Service Administrative Company. In order to qualify for enrollment in the SAFELINK WIRELESS Program, a
person must meet certain eligibility requirements set by each state where the SAFELINK Program is offered. 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 the SAFELINK Program. The SAFELINK Program allows one (1) enrollment per "household"
and only the "head of household" may apply. The SAFELINK Program permits only one Lifeline benefit per
household, therefore, no person currently living in the household may receive Lifeline benefits from any other
Lifeline program. Applicants for the SAFELINK Program must complete an application form, provide supporting
documentation that they meet the eligibility requirements and certify, under penalty of perjury, that they:
. Are'eligible for and currently receive benefits from the public assistance program(s) identified in the application
form.
. Are a "head of household."
. Do not currently receive lifeline support for a telephone line serving their residential address and no other
resident in their household participates in the Lifeline program. If the applicant is already participating in another
Lifeline program, then the applicant agrees to cancel their current household Lifeline support provider in order to
enroll in the SAFELINK Program.
. Are not claimed as a dependent on another person's federal or state income tax return.
. Wil notify SAFELINK Wireless by calling 1-800-SAFELINK if and when they no longer qualify for any of the public
assistance programs identified in their application form.
. Wil notify SAFELINK Wireless of any change of address by calling 1-800-SAFELINK.
. Reviewed the information contained in their application and it is true and correct to the best of their knowledge
and belief.
Applicants who qualify and are enrolled in the SAFELINK Program 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 Program. Texas residents application is subject to state approvaL. The state wil
confirm your participation within 30 days, you will receive a letter in the mail from the Texas Public UtilityCommission with more information. If you do not qualify, your Free Minutes may be suspended, however the phone
and the minutes you previously received are yours to keep. You can stil use the handset by purchasing TracFone
airtime cards available at any of the following retailers: Wal-Mart, Walgreens, CVS, Family Dollar, Dollar GeneraL.
For more information visit www.tracfone.com. The monthly airtime minutes provided by the SAFELINK Program
wil vary from state to state (in Washington state, the number of monthly airtime minutes is 68 under Plan Option
1) and wil be based upon the Plan Option selected. Please call SAFELINK WIRELESS at 1-800-SAFELINK or visit our
website at www.safelink.com for further information.
Applicants who do not meet the eligibility requirements wil receive written notification, via US Mail, of the reason
for their non-eligibility. Upon enrollment in the SAFELINK Program, You wil be qualified to participate for up to
one (1) year. To continue your enrollment in the SAFELINK Program after the initial year, You must verify annually
that you are qualified for continued enrollment in the SAFELINK Program as required by your state Public Service
Commission, Public Utiity Commission or other agency administering the SAFELINK Program in Your state.
TracFone Wireless wil also conduct verification drives for each state according to its rules. If TracFone Wireless
determines during its verification drive, or at any other time, that a customer fails to continue to qualify for the
SAFELINK Program, such customer wil immediately be deemed ineligible to participate in the SAFELINK Program,
wil be de-enrolled from the SAFELINK Program and wil no longer receive the free monthly minutes. SAFELINK
Customers who are no longer eligible (for any reason) for enrollment in the SAFELINK Program must immediately
notify SAFELINK Wireless that they no longer meet the eligibility requirements for enrollment. A SAFELINK
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
permanently deactivate any customer's SAFELINK WIRELESS phone for fraud, misrepresentation or other
misconduct as determined solely by TracFone Wireless. While participating in the SAFELINK Program, a customer
shall not be permitted to sell, rent, give away or in any way allow another person to use the cellular phone or
SAFELINK 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 customer has violated these
prohibitions, TracFone Wireless wil the permanently de-enroll the customer from the SAFELINK Program, their
phone wil be permanently deactivated and the customer's personal information wil be permanently flagged so
that the customer may not re-enroll in the SAFELINK Program in the future. If you have any questions, concerns,
comments or complaints regarding the SAFELINK Program or 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.
2. ACTIVATION AND USE OF YOUR SAFELINK WIRELESS PHONE.
Upon enrollment in the SAFELINK Program, 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 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 or TracFone Wireless. 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 or if the number is lost
following the deactivation of your phone. You may not select a number to be assigned to your SAFELINK WIRELESS
phone. 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 Wireless' 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
SAFELINK Service or take corrective action at any time without prior notice and for any reason, including but not
limited to your violation of these terms and conditions of service. TracFone Wireless notifies
Illinois residents that SafeLink Wireless(ß wil not provide a telephone
directory to any customer nor will any customer's telephone number be
published in any telephone directory.
3. AIRTIME RATES, USAGE AND INClUDED MONTHLY MINUTES.
While you are enrolled in the SAFELINK Program, you wil receive a free monthly allotment of airtime minutes as
provided for the SAFELINK Program approved in your state and the minute Plan that you select. SAFELINK WIRELESS
airtime is issued in minute (or unit) increments. Units are deducted from the SAFELINK WIRELESS phone at a rate
of one (1) unit per minute or partial minute of use. There is no additional charge for nationwide long distance. If
you are on Plan 1, there is no additional charge for international long distance to countries designated at
www.tracfone.com. SAFELINK offers three plans that are currently available to all new and existing SAFELINK
customers. Each plan offers different benefits, features and carryover options. The 3 Plans that are currently
available are:
Free Monthly Unused Minutes Text Free Voicemail
Caller IDMinutesCarryover Each Message International CallIncluded in Plan Month Charge*Long Distance Waiting
Plan 68 in all states Yes 3 Texts/1 Yes Yes1(80 in MA)Minute
Plan 125 Yes 1 Textl1 No Yes2Minute
Plan 250 No..1 Text/1 No Yes3Minute
.These text messaging rates wil apply even if a different text messaging rate is stated on an airtime card.
..With Plan 3, your phone wil reset to 250 minutes each month when your monthly minutes are delivered. Unused
minutes wil not automatically carry over to the next month. You may carry over unused airtime minutes on this
plan for up to 3 consecutive months if you purchase and add airtime from a TracFone Airtime Card before the 25th
day of the month. By purchasing and adding a TracFone airtime card before the 25th of the month, your unused
airtime minutes (including your free monthly allotment and any additional TracFone Airtime cards) will carry over
for 3 consecutive months from the date of your last TracFone Airtime Card redemption. If you purchase and
redeem a TracFone Airtime Card on or after the 26th day of any month, your airtime balance wil be reset and not
be carried over to the next month. The minutes you purchased wil be carried over together with your next three
allotments of free monthly minutes. Adding more than one Airtime Card at the same time wil NOT extend your
airtime carry over for more than the 3 consecutive months. The 3 month carry over is effective from the date of
redemption of the last airtime card redeemed to your phone.
New SAFELINK customers must choose a plan upon enrollment. Existing SAFELINK customers who wish to switch
plans may do so at www.safelink.com or by calling 1-800-SAFELINK. If you switch plans before the 25th day of any
given month, the change wil be effective the following month. If you switch plans on or after the 25th day of the
month, the change wil be effective in the second month following your request to switch plans.
You may use your free monthly allotment of airtime minutes to place or receive calls, to send or read text
messages or multi-media messages and to access the internet (with certain models of phones). In order to receive
your monthly allotment of minutes, you wil need to leave your SAFELINK WIRELESS phone powered "on" during
the first few days of each month. 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 powered
"ON." You may self-retrieve by following the instructions below. If for any reason these instructions do not work
on your handset, please call us at 1-800-378-1684.
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 otherwiseterminated. Airtime minutes are deducted for all incoming and outgoing calls, including incoming call waiting
calls, simultaneous calls, calls to toll free numbers, 411, 611, Customer Care, and to access your voice maiL. For
simultaneous calls, such as incoming call waiting and 3-way calling (where available) airtime minutes wil be
deducted for each calL. Airtime minutes are not deducted for calls to 911, and all handsets wil be able to call 911
even if they have no airtime remaining. Customers in the State of Washington will not be charged for calls to
Customer Care if they dial 611 directly from their handset. For outbound calls, you may be charged airtime for
incomplete and/or busy-no answer calls. Airtime minutes wil be deducted for use of otner services such as text
messaging and accessing the TracFone Wireless Mobile Web ("WAP"). No credit or refund is given for dropped calls.
Customers in the State of Washington who have a problem with their SAFELINK Wireless service and are unable to
resolve it by contacting Customer Care, may contact the Washington State Attorney General, Consumer Protection
Division, by calling 1-800-551-4636.
4. SELF-RETRIEVAL AND ADDING AIRTIME
Self-Retrieve Your Monthly Minutes by following these instructions:
. Press the MENU key located in the center of the navigation keys or arrow keys. "Prepaid" wil be displayed across
your screen. Press SELECT.
. Using the arrow keys on your phone, go to "Redeem Airtime" or "Add Airtime." If your screen displays a
message, scroll down and press OK until you see "Card #" or "Airtime Pin."
· To Self Retrieve your Monthly Minutes, enter 555 and press OK.
Add or Redeem an Airtime Card by following these instructions:
. Press the MENU key located in the center of the navigation keys or arrow keys. "Prepaid" wil be displayed across
your screen. Press SELECT.
. Using the arrow keys on your phone, go to "Redeem Airtime" or "Add Airtime." If your screen displays a
message, scroll down and press OK until you see "Card #" or "Airtime Pin."
If you do NOT have a Promotional Code:
. Enter your 15 digit Airtime PIN number (located on the back of your airtime card or on your register receipt) and
press OK.
If you have a Promotional Code, follow the instructions for your model of phone:
. For Motorola C139, C155 or Nokia 1112: Enter your 15 digit Airtime PIN plus your 5 digit promotional code and
press OK.
. For Motorola W175 and all other models: Enter your 15 digit Airtime PIN and press OK. You should see the
phrase "Have a promotional code?" displayed on your SAFELINK phone screen. Press the key below YES and follow
the prompts.
Make sure to keep your SAFELINK phone ON until you receive your Minutes!
If your phone does not allow you to self-retrieve, your phone does not automatically retrieve your monthly
airtime, if you are having difficulty receiving your monthly allotment of minutes or you are having diffculty
-loading an airtime card, please call Technical Customer Care at 1-800-378-1684.
5. TEXT MESSAGING.
You may use your free monthly allotment of minutes to send and/or open text messages. Text messages sent to
you by SAFELINK WIRELESS are free of charge. The charge to send or open an incoming text message using your
SAFELINK WIRELESS phone wil vary depending upon your plan. Under Plan 1, you wil be charged 0.3 minutes per
text message for sending and 0.3 minutes per text message for opening a received text message. Under Plans 2
and 3, you wil be charged 1 minute per text message for sending and 1 minute per text message for opening a
received text message. If you have exhausted your free monthly allotment of minutes, you wil need to purchase
and redeem additional airtime minutes in order to continue to send text messages and open incoming text
messages and to place and receive voice calls. If you do not want minutes deducted from your SAFELINK WIRELESS
phone for text messaging, then do not send text messages or open incoming text messages. SAFELINK WIRELESS
does not allow international text messages. Attempting to send international messages could result in service
deactivation and de-enrollment from the SAFELINK Program. Please note that SAFELINK WIRELESS does not
generally participate in Premium SMS services or campaigns. Premium SMS refers to text messages that are sent 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 are not refundable whether you incur charges as
deductions from your SAFELINK WIRELESS phone or from your credit card. You may purchase from SAFELINK
WIRELESS ring tones, graphics and certain information services. You may utilize multi-media services with certain
SAFELINK WIRELESS models of phones. See SAFELINK WIRELESS Data Services below for more information.
6. INTERNATIONAL CALLING.
International calling is available only if you are enrolled in Plan 1. If you selected Plan Option 1, you may use yourSAFELINK WIRELESS phone to make international calls to landlines and some cellular phones in some countries at
no additional charge (see www.tracfone.com for available countries and details). The countries where
international calling is available under Plan 1 are subject to change at any time without prior notice. In order to
place an international call, you wil need to dial 1-800-706-3839 (the International Long Distance ("ILO") access
number) and follow the instructions. If you are calling from Alaska, Hawaii or the US Virgin Islands, the ILD Access
number you should dial is 305-938-5673. Airtime deductions for international calls begin the moment the ILD
access number is dialed and apply to dropped calls, misdialed numbers and busy destination numbers. When
placing international calls, you may experience connection failures more frequently than calls made within the
United States. SAFELINK WIRELESS wil not credit airtime minutes deducted for unsuccessful calls. You wil not beable 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 and de-enrollment from the SAFELINK
Program. International calling is not available under Plan Option 2 or 3.
7. AIRTIME CARDS.
Your SAFELINK WIRELESS phone wil only operate when you have airtime minutes available on the SAFELINK
WIRELESS phone. If you run out of your free monthly allotment of airtime, you may purchase and add additional
airtime to your phone. See the instructions above for adding airtime. SAFELINK WIRELESS customers may purchase
and use any SAFELINK WIRELESS or TracFone Wireless airtime cards, including Double Minute Airtime cards, for
their SAFELINK WIRELESS phone. PLEASE NOTE: Customers who are enrolled in any Double Minutes for Life
program wil receive double minutes ONLY on their purchased airtime. The free monthly minutes provided to
customers enrolled in the SAFELINK Program and any Bonus or Promotional Minutes WILL NOT DOUBLE.
Each TracFone Wireless airtime card includes a set number of minutes and service days that begin to run from the
date you add the airtime to your SAFELINK WIRELESS phone. SAFELINK WIRELESS customers who purchase and
redeem 30, 60, 90 and 120 minute TracFone Wireless airtime cards at our regular price wil receive an additional
20, 40, 35 and 30 Bonus minutes respectively (SAFELINK WIRELESS customers in the state of Washington will
receive 140 Bonus minutes fora 60 minute card purchased at regular price and 180 Bonus minutes for a 120 minute
card purchased at regular price). Bonus and promotional minutes wil not double with any TracFone Wireless
Double Minute airtime cards. TracFone reserves the right to modify, adjust and/or eliminate the extra Bonus
minutes at any time in its discretion. SAFELINK customers in certain states may purchase airtime at the rate of 10t
per unit. TracFone reserves the right to adjust its airtime rates at any time in its sole discretion.
For each TracFone Wireless airtime card or PIN purchased at our regular price and added to a SAFELINK phone, the
SAFELINK customer wil receive the following:
Minutes on
Face of TotalTracFoneMinutes Service Cards OtherCardProvidedDaysCost
(Purchased at
Regular Price)
30 50 30045 $9.99 N/A
60 100*90 $19.99 N/A
90 125 90 $24.99 N/A
120 150*90 $29.99 N/A
200 200 90 $39.99 N/A
450 450 90 $79.99 N/A
One Year 250 or 365 $99.99 N/AService Card 400
Double minutes for the life of your
phone on all airtime that you purchase.
Not transferable to another handset
even if your phone is damaged, lost or
stolen. The minutes included with this
One Year plus 800 365 $119.99 card have already been doubled for
Double Minute your convenience. YOUR FREE
MONTHLY MINUTES FROM SAFELINK
WILL NOT DOUBLE. BONUS,
PROMOTIONAL AND OTHER NON-
PURCHASED MINUTES WILL NOT
DOUBLE.
Double minutes for the life of your
phone on all airtime that you purchase.
Double Minute 0 0 $19.99 Card is not transferable to another
Card handset even if your phone is damaged,
lost or stolen. YOUR FREE MONTHLY
MINUTES FROM SAFELINK WILL NOT
DOUBLE. BONUS, PROMOTIONAL AND
OTHER NON-PURCHASED MINUTES
WILL NOT DOUBLE
'Customers in the state of Washington may obtain additional airtime at an effective rate of $.10 per minute by
purchasing a 60-minute or 120-minute TracFone Wireless airtime card. The 60-minute card has a retail price of
$19.99 and provides 200 total minutes (including Bonus minutes). The 120-minute card has a retail price of $29.99
and provides 300 total minutes (including Bonus minutes).
8. SERVICE END DATE, DEACTIVATION AND REACTIVATION.
As a SAFELINK WIRELESS customer, You wil receive 425 service days upon Your enrollment and activation in the
SAFELINK Program and another 365 service days following each successful annual verification for your continued
program eligibility in the SAFELINK Program. If you fail to complete your annual verification within 120 days of the
required verification date, you wil be de-enrolled from the SAFELINK Program. Upon de-enrollment from the
SAFELINK Program, you wil cease receivintthe free monthly allotment of airtime. If you are de-enrolled, your
phone wil remain active and you may continue to use your phone so long as you have available airtime minutes
and service days remaining on your phone. You may purchase airtime and service days to keep your phone service
active. If you are de-enrolled from the SAFELINK Program and You allow your remaining service days to expire or
go "past due," Your phone service wil be deactivated, you may lose your unused minutes and you wil lose yourwireless telephone number.
If your service is deactivated, you may reactivate your service by re-enrolling in the SAFELINK Program (if eligible)
or purchasing and redeeming a TracFone Wireless airtime card with service days. Upon reactivation of your phone,
you may be assigned a new telephone number. Any airtime remaining on your handset at the time of deactivation
wil be reinstated if your phone is reactivated within 60 days from the deactivation date. If your phone remains
inactive for more than 60 days, you wil lose any remaining airtime.
If you have been de-enrolled from the SAFELINK Program but you wish to keep your service active, You must
purchase and redeem additional airtime and service days before the "Service End Date" displayed on your phone.
To prevent any interruption in your phone service, please keep your handset service active by timely completing
your annual verification as required by the SAFELINK Program or by purchasing and adding TracFone airtime cards
before your Service End Date.
"No Usage" De-Enrollment and Deactivation: Regardless of the Service End Date displayed on your handset, if
you exceed 2 months without any Usage (as defined in this section), You wil be de-enrolled from the SAFELINK
Program. "Usage" is defined as any transaction including, but not limited to, making or receiving a call, sending oropening a text message, downloading data content, adding airtime or receiving Your free monthly airtime. Upon
de-enrollment for non-Usage, You wil have up toa 30 day grace period to reenroll in the SAFELINK Program by
calling 1-800-SAFELINK. If you do not re-enroll or call SAFELINK Customer Care within 30 days of your de-
enrollment, your phone service wil be deactivated. In order to reactivate your SAFELINK phone and re-enroll in
the SAFELINK Program, you wil need to call SAFELINK Customer Care and you wil need to purchase a TracFone
airtime card or PIN number with service days in order to reactivate your phone service. Upon successful re-
enrollment, you wil receive the monthly minutes that you were entitled to receive through the date your
enrollment was cancelled. You wil not, however, receive any airtime for the period of time you were not enrolled
in the SAFELINK Program.
9. OUR RIGHT TO TERMINATE YOUR SAFELINK WIRELESS SERVICE.
You agree not to give away, resell or offer to resell the SAFELINK Phone or Service provided by the SAFELINK
Program. You also agree your SAFELINK Phone wil not be used for any other purpose that is not allowed by this
agreement or that is ilegaL. WE CAN, WITHOUT NOTICE, LIMIT, SUSPEND, OR END YOUR SERVICE AND DE-ENROLL
YOU FROM THE SAFELINK PROGRA FOR VIOLATING THIS PROVISION OR FOR ANY OTHER GOOD CAUSE, including,
but not limited to, if You: (a) violate any of the terms and conditions of service; (b) lie to us or attempt to defraud
us; (c) allow anyone to tamper with your SAFELINK Phone; (d) threaten or commit violence against any of our
employees or customer service representatives; (e) use vulgar and/or inappropriate language when interacting
with our representatives; (f) steal from us; (g) harass our representatives; (h) interfere with our operations; (i)
engage in abusive messaging, emailing or calling; (j) modify your device from its manufacturer's specification; or
(k) use the service in a way that adversely affects our network or the service available to our other customers. Wereserve the right to, without notice, limit, suspend or end your service for any other operational or governmental
reason. In addition to permanently terminating your Service, criminal offenses (i.e., sellint or giving away your
Service; threatening violence, etc.) wil be reported to the appropriate legal authorities for prosecution.
10. 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 $5,000
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 toallow 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. You may not remove your SIM Card from your phone nor place the SIM Card in any other phone. Doing so
could result in the immediate termination of your service and de-enrollment from the SAFELINK Program. 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.
11. COVERAGE MAPS AND ROAMING.
You wil find coverage maps on our website at www.tracfone.com. These maps are for general informational
purposes only. Actual coverage and service areas may vary from the maps and may change without notice.
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. "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 of the network coverage area of your service
provider. 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.
12. 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, servce 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.
13. WARRANTY EXCHANGE AND LOST OR STOLEN PHONE POLICY.
Limited Warranty Exchange Policy: SAFELINK 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 a new or refurbished phone, at TracFone's discretion, during this period of time only pursuant
to the terms of the Limited Warranty set forth below. For a defective phone replacement, call SAFELINK WIRELESS
Technical Customer Care at 1-800-378-1684.
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. The replacement phone wil include only 10 minutes of lost
airtime. Any additional airtime that you may have had on your lost phone wil not be replaced. 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 while in transit to the customer before the customer receives the phone, the lost phone and airtime may be
replaced as a onetime courtesy in TracFone's sole discretion.
14. DISCLAIMER OF WARRANTIES.
EXCEPT FOR THE LIMITED WARRANTY SET FORTH IN THESE TERMS AND CONDITIONS, AND TO THE EXTENT
PERMITTED BY LAW, THE SERVICES AND DEVICES ARE PROVIDED ON AN "AS IS" AND "WITH ALL FAULTS" BASIS AND
WITHOUT WARRANTIES OF ANY KIND. WE MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE CONCERNING
YOUR SERVICE OR YOUR DEVICE. WE CANNOT PROMISE UNINTERRUPTED OR ERROR-FREE SERVICE AND DO NOT
AUTHORIZE ANYONE TO MAKE ANY WARRANTIES ON OUR BEHALF. WE DO NOT GUARANTEE THAT YOUR
COMMUNICATIONS WILL BE PRIVATE OR SECURE; IT IS ILLEGAL FOR UNAUTHORIZED PEOPLE TO INTERCEPT YOUR
COMMUNICATIONS, BUT SUCH INTERCEPTIONS CAN OCCUR.
15. HEARING, VISUAL OR SPEECH IMPAIRED ACCOMMODATIONS
Any hearing, visual or speech impaired persons interested in applying for a specially equipped SAFELINK WIRELESS
must call SAFELINK WIRELESS at 1-800-378-1684 and specify the need(s) to an agent and TracFone Wireless wil
make every effort to assist such customer in obtaining a handset that is in compliance with all applicable laws,
rules, and regulations.
16. EMERGENCY CALLS.
SAFELINK Wireless customers have access to 911. Occasionally, however, callers may attempt to call 911 in areas
where there is no wireless coverage. If there is no wireless coverage, your call to 911 may not go though and You
should dial 911 from the nearest land line phone.
17. 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 messaging 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 at an additional charge in the
form of a debit of minutes for Your use of such services.
Accessing and Purchasing Data Services. In order to purchase, download or acCess Data Services, your handset
must have active service and sufficient 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 ýour 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 WAPsession.
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"). The Content Charges vary depending on the type of content. You wil be advised of
the Content 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 (accessed with a personal computer) at www.tracfone.com
When you purchase Data Services from the Internet at www.tracfone.com. the Content Charge wil be shown in
both U.S. Dollars and in minutes. 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 (www.tracfone.com): Go to "Downloads and More" at www.tracfone.com
and enter your SAFELINK WIRELESS serial number (ESN IIMEI) and SAFELINK Wireless Number. This wil take you to
the Wireless Data Services content catalog where you can browse, sample and purchase ringtones andlor graphics.
After you find a title and select "Buy," you wil 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. You may not purchase Data Services through your
handset using a Credit card. Note: Ringtones can only be sampled at www.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 phone 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 Services
If the last airtime card you You wil have this number of minutes deductedadded to your handset was:for every S 1 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
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 Benefit
30, 40 or 60 minute cards 6.00
90 minute card 7.20
100 or 120 minute cards 8.00
200, 250 or 400 minute cards 10.00
. 450 minute card 11.24
Other (not listed above)6.00
Charges for MMS (e.g., picture messaging). You will 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. Partial minutes wil be
rounded up.
Additional Access Charges for Data Services.ln addition to the Content 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 utilizing MMS. Total Access Charges wil 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 certain 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 Services, 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 isotherwise 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.
18. LIMITATION OF LIABILITY
SAFELINK WIRELESS and TracFone Wireless are not liable to you for any direct or indirect, special, incidental,
consequential, exemplary or punitive damages of any kind, including lost profits (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.
SAFELINK WIRELESS and 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.
19. INDEMINIFICATION. You agree to indemnify and hold harmless SAFELINK WIRELESS and 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 liability) and
regardless of the form of action.
20. 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 SUBJEc:T OF LITIGATION), EXCEPT FOR CLAIMS CONCERNING THE UNAUTHORIZED RESALE,
EXPORT, ALTERATION, AND/OR TAMPERING OF YOUR SAFELINK WIRELESS PHONE, ITS SOFTWARE, THE SERVICE
AND/OR PIN NUMBERS, THROUGH ARBITRATION INSTEAD OF SUING IN COURT IN THE EVENT THE PARTIES AREUNABLE 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 WIRELESS1M
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 SAFElINK Service or any equipment used in
connection with the SAFELINK 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 SAFELINK Service and/or PIN numbers, in state or federal court. References to you and
TracFone Wireless include our respective subsidiaries, affliates, 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 ("AA") under the Commercial Dispute Resolution Procedures
and the Supplementary Procedures for Consumer Related Disputes (collectively, "AA Rules"), as modified by this
agreement. The AA Rules are available online at www.tracfone.com or by calling'the AA at 1-800-778-7870. You
and TracFone Wireless agree that use of the SAFELINK 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
wil be conducted on an individual basis and noton 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 of disputes in court, you
waive to the fullest extent permitted by law, (i) the right to a trial by jury and (ii) any claims for punitive or
exemplary damages. Unless TracFone Wireless and you agree otherwise, the location of any arbitration shall be
Miami, Florida. Except where prohibited by law, TracFone Wireless and you agree that no arbitrator has the
authority to award punitive damages or any other damages not measured by the prevailing party's actual damages.
Neither you nor TracFone Wireless shall disclose the existence, contents, or results of any arbitration, except to
the extent required by law. Judgment on the award rendered may be entered by any court of competent
jurisdiction.
This Agreement shall be construed under the laws of Florida, without regard to its choice of law rules, except for
the arbitration provision contained in these Terms and Conditions, which wil be governed by the Federal
Arbitration Act. This governing law provision applies no matter where You reside, or where You use or pay for the
Services.
21. PRIVACY POLICY. To view the SAFELINK WIRElESS Privacy Policy please refer to the SAFELINK WIRELESS
website found at www.safelink.com.
22. LIMITED WARRANTY.
Your Safelink phone is covered by a one year limited warranty, set forth below, administered by Safelink. A
reconditioned Safelink phone also has a one year limited warranty provided by Safelink and all Safelink
accessories have a 90-day limited warranty against defects in materials and workmanship under normal use by the
purchaser. You may obtain warranty service directly from Safelink.
How to obtain Warranty Service. To obtain warranty service from Safelink on a new or reconditioned phone or
Safelink accessories, please contact Technical Support at 1-800-378-1684 from a landline or another phone in
order to avoid using up your minutes. If your problem cannot be resolved over the phone, our SafeLink technicians
wil provide you with a Ticket Number, which you wil use to send your phone and/or accessories to the designated
SafeLink Service Center for repair or replacement, at SafeLink's discretion.
Terms of Limited Warranty. SafeLink warrants to you, the Customer, that your SafeLink cellular phone ("Product")
is free from defects in material and workmanship that result in Product failure during normal usage, according to
the following terms and conditions:
(1) The limited warranty for the Product extends for one (1)' year beginning on the first date of activation of your
phone.
(2) The limited warranty extends only to the original customer ("Consumer") of the Product.
(3) The limited warranty is not assignable or transferable to any subsequent end-user.
(4) During the limited warranty period, SafeLink wil replace or repair, at SafeLink's sole option, any defective
Products or parts (except as excluded below), or any Products or parts that wil not properly operate for their
intended use (except as excluded below) with new or refurbished replacement Products or parts if such
replacement or repair is needed because of Product malfunction or failure during normal usage. SafeLink may, atits sole discretion, replace the Product with a refurbished phone of the same model if available, or if not
available, of a comparable model of phone. The limited warranty does not cover loss of personal information,
passwords, contacts, music, ringtones, pictures, videos, applications or other content, memory cards, software,
defects in appearance, cosmetic, decorative or structural items, including framing, and any non-operative parts.
SafeLink's limit of liability under this limited warranty is the actual cash value of the Product at the time the
Consumer returns the Product to SafeLink for repair, determined by the price paid by the Consumer for the
Product less a reasonable amount for usage. SafeLink shall not be liable. for any other losses or damages. These
remedies are the Consumer's exclusive remedies for breach of warranty.
(5) The Consumer shall have no coverage or benefits under this limited warranty if any of the following conditions
are applicable:
a) The Product has been subjected to abnormal use, abnormal conditions, improper storage, exposure to moisture
or dampness, unauthorized modifications, unauthorized connections, unauthorized repair, misuse, neglect, abuse,
accident, alteration, improper installation, or other acts which are not the fault of SafeLink, including damage
caused by shipping.
b) The Product has been damaged from external causes such as collision with an object, or from fire, flooding,
sand, dirt, windstorm, lightning, earthquake or damage from exposure to weather conditions, an Act of God, or
battery leakage, theft, blown fuse, or improper use of any electrical source, damage caused by computer or
internet viruses, bugs, worms, Trojan Horses, cancelbots or damage caused by the connection to other products
not recommended for interconnection by SafeLink.
c) SafeLink was not advised in writing by the Consumer of the alleged defect or malfunction of the Product within
fourteen (14) days after the expiration of the applicable limited warranty period.
d) The Product serial number plate or the enhancement data code has been removed, defaced or altered.
e) The defect or damage was caused by the defective function of the cellular system or by inadequate signal
reception by the external antenna, or viruses or other software problems introduced into the Product.
f) The Product is outside of the one (1) year Limited Warranty period.
(6) SafeLink does not warrant uninterrupted or error-free operation of the Product or service. SafeLink cannot and
does not guarantee that your communications wil be private or secure; it is ilegal for unauthorized people to
intercept your communications, but such interceptions can occur.
(7) If a problem develops during the limited warranty period, the Consumer shall contact SafeLink Customer Carefor repair or replacement processing of the Product. SafeLink shall, at its discretion, provide a replacement
product that may consist of a refurbished phone of the same model if available, or of a comparable modeL.
(8) You (the Consumer) understand that the product may consist of refurbished equipment that contains used
components, some of which have been reprocessed. The used components comply with Product performance and
reliability specifications.
(9) SAFELINK EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
P.URPOSE OR USE. THE FOREGOING LIMITED WARRANTY IS THE CONSUMER'S SOLE AND EXCLUSIVE REMEDY AND IS IN
LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. SAFELINK SHALL NOT BE LIABLE FOR SPECIAL, INCIDENTAL,
PUNITIVE OR CONSEQUENTIAL DAMGES, INCLUDING BUT NOT LIMITED TO LOSS OF ANTICIPATED BENEFITS OR
PROFITS, LOSS OF SAVINGS OR REVENUE, LOSS OF DATA, PUNITIVE DAMGES, LOSS OF USE OF THE PRODUCT OR
ANY ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF ANY SUBSTITUTE EQUIPMENT OR FACILITIES, DOWNTIME,
THE CLAIMS OF ANY THIRD PARTIES, INCLUDING CUSTOMERS, AND INJURY TO PROPERTY, RESULTING FROM THE
PURCHASE OR USE OF THE PRODUCT OR ARISING FROM BREACH OF THE WARRANTY, BREACH OF CONTRACT,
NEGLIGENCE, STRICT TORT, OR ANY OTHER LEGAL OR EQUITABLE THEORY, EVEN IF SAFELINK KNEW OF THELIKELIHOOD OF SUCH DAMGES. SAFELINK SHALL NOT BE LIABLE FOR DELAY IN RENDERING SERVICE UNDER THE
LIMITED WARRANTY, LOSS OF USE DURING THE PERIOD THAT THE PRODUCT IS RETURNED FOR REPLACEMENT OR
WARRANTY SERVICE OR FOR THE LOSS OR UNAUTHORIZED USE OF CUSTOMER PASSWORDS, PERSONAL
INFORMTION, CONTACTS, PICTURES, VIDEOS, APPLICATIONS, MUSIC, RINGTONES OR OTHER CONTENT.
(10) Some states do not allow the exclusion or limitation of incidental and consequential damages, so certain of
the above limitations or exclusions may not apply to you (the Consumer). This limited warranty gives the Consumer
specific legal rights and the Consumer may also have other rights which vary from state to state.
(11) SafeLink neither assumes nor authorizes any authorized service center or any other person or entity to assumefor it any other obligation or liability beyond that which is expressly provided for in this limited warranty including
the provider or seller of any extended warranty or service agreement.
(12) This is the entire warranty between SafeLink and the Consumer, and supersedes all prior and
contemporaneous agreements or understandings, oral or written, relating to the Product, and no representatüõin,
promise or condition not contained herein shall modify these terms.
(13) This limited warranty allocates the risk of failure of the Product between the Consumer and SafeLink. The
allocation is recognized by the Consumer and is reflected in the purchase price.
Certain mobile phone features may not be available throughout the entire network or their functionality may be
limited. All plan rates, features, functionality and other product specifications are subject to change without
notice or obligation. Color of phones may vary. All talk and standby times are quoted in Digital Mode and are
approximate.
SafeLink, SafeLink Wireless, TracFone and TracFone Wireless are registered trademarks of TracFone Wireless, Inc.
a subsidiary of América Móvil (NYSE: AM).
Exhibit No.3
Case No. TFW-T-09-01
J. Fuentes, TracFone Wireless, Inc.
Federal Communications Commission FCC 05-165
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)Federal-State Joint Board on Universal Service )
)Petition of TracFone Wireless, Inc. for )
Forbearance from 47 U.S.C. § 214(e)(1)(A) and 47 )C.F.R. § 54.201(i) )
CC Docket No. 96-45
ORDER
Adopted: September 6, 2005
Released: September 8, 2005
By the Commission: Commissioner Abernathy issuing a statement.
I. INTRODUCTION
1. In this Order, we address a petition fied by TracFone Wireless, Inc. (TracFonei pursuant to
section 10 of the Communications Act of 1934, as amended by the Telecommunications Act of 1996 (the
Act/ requesting that the Commission forbear from the requirement that a carer designated as an eligibletelecommunications carer (ETC) for puroses of federal unversal service support provide services, at
least in par, over its own facilties.3 TracFone requests that its eligibilty for federal unversal service
support be limited to Lifeline only. Subject to the conditions that we describe below, we grant TracFone
forbearance from the facilties requirement for ETC designation for Lifeline support only.4
II. BACKGROUND
2. Procedural History: TracFone is a non-facilities-based commercial mobile radio service (CMRS)
provider (i.e., a pure wireless reseUer) that provides prepaid wireless telecommunications services. On
June 8, 2004, TracFone filed a Petition for Forbearance from section 214(e) of
the Act, which requires thatan ETC offer service using its own facilties or a combination of its own facilties and resale of another
carier's services (Forbearance Petition or Petition).5 Contemporaneously with its Petition, TracFone fied
i TracFone Wireless, Inc. Petition for Forbearance, CC Docket No. 96-45, fied June 8, 2004 (Forbearance Petition
or Petition). On February 17,2005, pursuant to section 10(c) ofthe Act, the Wireline Competition Bureau (Bureau)
extended until September 6,2005, the date on which TracFone's Petition shall be deemed grated in the absence ofa Commission decision that the Petition fails to meet the standard for forbearce under section 10(a). TracFone
Wireless, Inc. 's Petitionfor Forbearancefrom 47 U.S.c. § 214(e)(i)(A) and 47 C.FR. § 54.20i(i), CC Docket No.
96-45, Order, 20 FCC Rcd 3677 (2005).
2 Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996).
347 U.S.C. § 214(e).
4 We note that this grant of forbearance does not establish TracFone as an ETC. We wil address TracFone's
petitions for ETC designations in subsequent orders.
5 On June 24, 2004, the Bureau issued a Public Notice seeking comment on TracFone's Petition for Forbearance.
Parties are invited to Comment on TracFone Wireless' Petitionfor Designation as an Eligible Telecommunications
Carrier in the State of New York and Petition for Forbearance from Application of Section 2i4, CC Docket No. 96-
45, Public Notice, 19 FCC Rcd 11264 (2004). Comments and replies to the June 24th Public Notice were received
i
Federal Communications Commission FCC 05-165
with the Commission petitions for ETC designation for several states.6 On August 8,2004, TracFone, in
its reply comments, and shortly thereafer in its applications for ETC designation, amended its Petition and
related ETC applications to limit its eligibilty for federal universal service support to the Lifeline porton
of the low-income program.7 TracFone states that it wil meet all ETC obligations except for the
requirement to "own facilties" and commits to providing its Lifeline customers with access to E911
service, regardless of activation status and availabilty of prepaid minutes, and to requiring its customers to
self-certify they are receiving only one Lifeline-supported service.3 On September 24, 2004, TracFone
amended its Petition a second time to include a request for forbearance from section 54.20 1 (i) of the
Commission's rules, which provides that state commissions shall not designate as an ETC a carier that
offers services supported by federal unversal service support mechanisms exclusively though resale of
another carrer's service.9
3. Applicable Statutes and Rules: The Act provides that only an ETC shall be eligible for universal
service support.IO To be eligible for ETC designation, a carier must meet certain statutory requirements
including offering service over its own facilties or a combination of its own facilties and resale of another
on July 26 and August 9,2004, respectively. In response to certin comments, TracFone limited its Petition to
Lifeline support in its August 9th reply comments. Because TracFone modified its Petition in its reply comments,
commenters did not provide comment in the Forbearance proceeding on the Lifeline-only limitation. Despite this
fact, commenters did address the Lifeline-only limitation in the related TracFone ETC proceedings, which TracFone
likewise modified to reflect the request for limited universal service support. See The Wireline Competition Bureau
Seeks Comment on Petitions Concerning Eligible Telecommunications Designations and the Lifeline and Link-up
Universal Service Support Mechanism, CC Docket No. 96-45 and WC Docket No. 03-109, Public Notice, 19 FCC
Rcd 20462 (2004).
6 TracFone has eight ETC petitions pending before the Commission. See TracFone Wireless, Inc. Petition for
Designation as an Eligible Telecommunications Carer in the State of New York, CC Docket No. 96-45, fied June
8, 2004; TracFone Wireless, Inc. Petition for Designation as an Eligible Telecommunications Carier in the
Commonwealth of Virginia, CC Docket No. 96-45, fied June 21, 2004; TracFone Wireless, Inc. Petition for
Designation as an Eligible Telecommunications Carier in the State of Florida, CC Docket No. 96-45, fied June 21,
2004; TracFone Wireless, Inc. Petition for Designation as an Eligible Telecommunications Carer in the State of
Connecticut, CC Docket No. 96-45, fied November 9, 2004; TracFone Wireless, Inc. Petition for Designation as an
Eligible Telecommunications Carier in the Commonwealth of Massachusetts, CC Docket No. 96-45, fied
November 9, 2004; TracFone Wireless, Inc. Petition for Designation as an Eligible Telecommunications Carier in
the State of Alabama, CC Docket No. 96-45, fied November 9, 2004; TracFone Wireless, Inc. Petition for
Designation as an Eligible Telecommunications Carer in the State of Tennessee, CC Docket No. 96-45, fied
November 9, 2004; TracFone Wireless, Inc. Petition for Designation as an Eligible Telecommunications Carier in
the State of Nort Carolina, CC Docket No. 96-45, fied November 9, 2004.
7 TracFone Reply Comments, fied August 9, at 2-3 (August Reply Comments). See TracFone Wireless, Inc.
Amendment to Petition for Designation as an Eligible Telecommunications Carer in the State of Florida, CC
Docket No. 96- 45, fied Aug. 16, 2004; TracFone Wireless, Inc. Amendment to Petition for Designation as an
Eligible Telecommunications Carier in the State of New York, CC Docket No. 96-45, fied Aug. 16,2004;
TracFone Wireless, Inc. Amendment to Petition for Designation as an Eligible Telecommunications Carrier in the
Commonwealth of Virginia, CC Docket No. 96-45, fied Aug. 16,2004.
3 TracFone Reply Comments, fied October 4,2004, at 3-4 (October Reply Comments); August Reply Comments at
10.
947 C.F.R. § 54.201(i); TracFone Wireless, Inc. Clarification of Petition for Forbearance, CC Docket No. 96-45,
fied September 24,2004.
IO 47 U.S.C. § 254(e).
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Federal Communications Commission FCC 05-165
carier's service. i i Only ETCs may receive high-cost and low-income support.12 The low-income support
mechansm of the universal service fud consists of the Lifeline and Link-Up programs. 13
4. Collectively, the Lifeline and Link-Up programs are designed to reduce the monthly cost of
telecommunications service and the cost of initial connection, respectively, for qualifying consumers.
Lifeline provides low-income consumers with discounts of
up to $10.00 off of the monthy cost oftelephone service.14 Link-Up provides low-income consumers with discounts of up to $30.00 off of the
initial costs of installng telephone service.15 Recognizing the unque needs and characteristics of tribal
communities, enhanced Lifeline and Lin-Up provide qualifying low-income individuals living on tribal
lands with up to $25.00 in additional discounts off
the monthy costs of telephone service and up to $70.00more off the initial costs of installing telephone service.16 TracFone seeks eligibilty to receive support
only for the Lifeline porton of the low-income program. 17
1I 47 U.S.C. § 214(e)(I)(A).
12 A carier need not be an ETC to paricipate in the schools and libraries or rural health care programs. 47 U.S.C. §
254(h)(l)(A) and (B)(ii). See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and
Order, 12 FCC Rcd 8776, 9015, para. 449 (1997 Universal Service Order) (concluding that any telecommunications
carier, not just ETCs, may receive universal service support for providing supported services to schools and
libraries); see also Federal-State Joint Board on Universal Serice, CC Docket No. 96-46, Fourteenth Order on
Reconsideration, 14 FCC Rcd 20106, 20114-5, para. 19 (1999) (Fourteenth Order on Reconsideration) (finding
that although only ETCs may receive universal service support, a non-ETC that provides supported services to
eligible rural health care providers may offset the value of the discount provided against its universal servicecontrbution obligation and, to the extent such discount exceeds its contrbution obligation, receive a refund).
13 47 C.F.R. §§ 54.401,54.411.
14 See 47 C.F.R. § 54.401(a)(2).
15 See 47 C.F.R. § 54.411(a)(I).
16 See 47 C.F.R. §§ 54.405(a)(4), 54.411(a)(3). Under the Commission's rules, there are four tiers offederal
Lifeline support. All eligible subscribers receive Tier 1 support which provides a discount equal to the ETC's
subscriber line charge. Tier 2 support provides an additional $ 1. 7 5 per month in federal support, available if all
relevant state regulatory authorities approve such a reduction. (All fifty states have approved this reduction.) Tier 3
offederal support provides one half of the subscriber's state Lifeline support, up to a maxmum of$1.75. Onlysubscribers residing in a state that has established its own LifelinelLink-Up program may receive Tier 3 support,
assuming that the ETC has all necessar approvals to pass on the full amount of this tota support in discounts to
subscribers. Tier 4 support provides eligible subscribers living on trbal
lands up to an additional $25 per monthtowards reducing basic local service rates, but this discount canot bring the subscriber's cost for basic local service
to less than $1. See 47 C.F.R. § 54.403.
17 August Reply Comments at 3 (requesting eligibility for Lifeline only support); October Reply Comments at 4
(specifying it does not seek eligibiltY for Link-Up support). TracFone has fied details of two proposed Lifelineplans. TracFone Wireless, Inc. Ex Pàrte Supplement to Petition for Forbearce and Petitions for Designation as an
Eligible Telecommunications Carier, CC Docket No. 96-45, at 3-5, fied July 15,2005. The first plan, the "Pay-
As- You-Go" Lifeline Plan, provides Lifeline customers with access to the network for one year and 30 minutes of
airtime each month. Under TracFone's proposal, the cost of this plan would be completely subsidized by theLifeline support. ¡d. at 3-4. The second plan, the "Net! 0 Pay-As-You-Go" Lifeline Plan, would require the
Lifeline customer to purchase buckets of minutes to be used in an identified period of time that are discounted fromTracFone's retail price to reflect the Lifeline subsidy. ¡d. at 4-5. One variation under this plan would require
Lifeline customers to redeem coupons monthly. ¡d. TracFone states that, under any plan, the Administrator would
provide support to TracFone as it does to all other recipients
of Lifeline support; that is, TracFone's Lifeline supportwil be calculated on a monthly basis and distributed on a quarerly basis. Letter from Mitchell F. Brecher, Counsel
for TracFone, to Marlene H. Dortch, FCC, CC Docket No. 96-45, at 3, fied August 22, 2005.
3
Federal Communications Commission FCC 05-165
5. The Commission has in the past declined to extend ETC statu to pure resellers. In the 1997
Universal Service Order, the Commission found that the plain language of the statute requires that a carier
seeking ETC designation must own facilties, at least in par, thus precluding a carier that offers services
solely though resale from being designated as eligible.18 The Commission reasoned, without
distinguishing among the various universal service support programs, that it was appropriate to deny pure
resellers universal service support because pure resellers could receive the benefit of universal service
support by purchasing wholesale services at a price that includes the universal service support received by
the incumbent provider. 19 Later in the 1997 Universal Service Order, the Commission found that although
resellers were not eligible to receive universal support directly, they were not precluded from offerig
Lifeline services. Resellers could offer Lifeline services by purchasing services at wholesale rates puruant
to section 251(c)(4) that reflect the customer-specific Lifeline support amount received by the incumbent
local exchange company (LEC) and then passing these discounts though to qualifying low-income
customers.20 The Commission, in so finding, considered only that the underlying carer was an incumbent
LEC, subject to price-regulated resale obligations. Furer, the Commission declined to forbear from the
facilties requirement, finding that the statutory criteria had not been met.21 Makng no finding with respect
to the first two prongs, the Commission concluded that forbearance was not in the public interest because
allowing pure reseIIers to receive universal service support would result in double recovery by the
resellers.22 In makg this finding, however, the Commission again did not distinguish among the varous
unversal service support programs. Specifically, it did not consider whether providing only Lifeline
support directly to a pure wireless reseIIer would result in double recovery.
III. DISCUSSION
6. For the reasons provided below, we conditionally grant TracFone's Petition and forbear from
section 214(e) ofthe Act and sections 54.201 (d)(1) and 54.201(i) of our rules for the purpose of
considering its Petitions for ETC Designation for Lifeline support only.23 If ultimately granted ETC status,
TracFone wil be eligible only for Lifeline support. As a limited ETC, TracFone would not be eligible to
receive support for the other supported services under the low-income program nor would it be eligible, as
an ETC, to receive support for services supported by the other unversal support mechanisms.24 We wil
address TracFone's petitions for ETC designation in subsequent orders. In sum, this grant is conditional
on TracFone (a) providing its Lifeline customers with 911 and enhanced 911 (E911) access regardless of
activation status and availabilty of prepaid minutes; (b) providing its Lifeline customers with E911-
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 service; (d) obtaning a certfication from each Public Safety
18 Id at 8875, para. 178 (adopting Joint Board's analysis and conclusion); see Federal-State Joint Board on
Universal Service, CC Docket No. 96-45, Recommended Decision, 12 FCC Rcd 87, 172-73, paras. 160-161 (1996).
19 1997 Universal Service Order, 12 FCC Rcd at 8866, par. 161 and 8875, par. 178.
20 Id at 8972, para. 370. The Commission noted that it would reassess this approach in the future if the Lifeline
progra appeared to be under-utilzed. Id.
21 Id. at 8875-6, par. 179.
22 Id.
23 In addition, and on our own motion, we forbear from section 54.201
(d)(l) of the Commission's rules. 47 C.F.R
§ 54.201 (d)(l). This section mirrors section 21 4( e) of the Act and requires that ETCs be facilty-based, at least in
par. We apply the same forbearance analysis we applied to section 21 4( e) to this section of our rules in
determining that forbearce is warted.
24 See n.l6, supra, for discussion regarding paricipation by non-ETCs in the schools and libraies and rura health
care progras.
4
Federal Communications Commission FCC 05-165
Answering Point (pSAP) where TracFone provides Lifeline service confirming that TracFone complies
with condition (a); (e) requiring its customers to self-certify at time of service activation and anually
thereafer that they are the head of household and receive Lifeline-supported service only from TracFone;
and (t) establishing safeguds to prevent its customers from receiving multiple TracFone Lifeline
subsidies at the same address.25 Finally, as explained below, within thirt days of
the release of this Order,we require TracFone to fie with the Commission a plan outlining the measures it wil take to implement
these conditions.
7. Section 10 of the Act requires that the Commission forbear from applying any regulation or anyprovision of the Act to telecommunications services or telecommunications cariers, or classes thereof, in
any or some of its or their geographic markets, if the Commission determines that the thee conditions set
fort in section lO(a) are satisfied. Specifically, section lO(a) provides that the Commission shall forbear
from applying such provision or regulation if the Commission determines that:
(1) enforcement of such regulation or provision is not necessar to ensure that the charges,
practices, classifications, or regulations by, for, or in connection with that telecommunications
carrier or telecommunications service are just and reasonable and are not unjustly or uneasonably
discriminatory;
(2) enforcement of such regulation or provision is not necessar for the protection of consumers;
and
(3) forbearance from applying such provision or regulation is consistent with the public interest. 26
8. In addition, when considering the public interest prong under section 1O(a)(3), the Commission
must consider "whether forbearance ... wil promote competitive market conditions.,,27 If
the Commissiondeterrines that such forbearance wil promote competition among providers of telecommunications
services, that determination may be the basis for a Commission finding that forbearance is in the public
interest.28 Forbearance is waranted, however, only if all thee prongs of the test are satisfied. For thereasons explained below, we find that TracFone satisfies all thee prongs.
9. This Petition requires that we consider the statutory goals of two related but different provisionsof the Act. We first examine the statutory goals of universal service in section 254 specifically in the
25 Commenters have rased concerns about the administrtive costs, complexities, and burdens of granting this
Petition and presumably the associated ETC designation petitions. See Letter from Robin E. Tuttle, USTelecom, to
Marlene Dortch, FCC, CC Docket No. 96-45 (fied August 17,2005) (USTelecom August 17 Ex Parte). We
believe that this conditional forbearce wil serve to furter the statutory goal of
the providing telecommunicationsaccess to low-income subscribers while establishing the necessar safeguards to protect the universal service fund
and the functioning of the low~income support mechanism. To the extent, however, that our predictive judgment
proves incorrect and these conditions prove to be inadequate safeguards, the paries can fie appropriate petitions
with the Commission and the Commissiori has the option of reconsidering this forbearce ruling. See Petitionfor
Forbearance of the Verizon Telephone Companies Pursuant to 47 US.c. § 160(c),WC Docket No. 01-338,
Memorandum Opinion and Order, 19 FCC Rcd 21496, 21508-9, para. 26 n.85 (2004); see also Petition ofSBC
Communications Inc. for Forbearance from Structural Separations Requirements of Section 272 of the
Communications Act of 1934, As Amended, and Requestfor Relief to Provide International Directory AssistanceServices, CC Docket No. 97-172, Memorandum Opinion and Order, 19 FCC Rcd 521 1, 5223~24, para. 19 n.66
(2004); Cellnet Communications, Inc. v. FCC, 149 F.3d 429, 442 (6th Cir. 1998). Additionally, we note that the
conditions we impose here wil be incorporated into any grant of the ETC designation petitions and any violation ofsuch conditions may result in loss of ETC status.
2647 U.S.C. § 160(a).
2747 U.S.c. § 160(b).
28 Id.
5
Federal Communications Commission FCC 05-165
context of "low-income consumers.'m We then consider the statutory purpose underpinning the facilties
requirement in section 214(e) as it relates to qualifying for federal low-income universal service support.
After carefu examination of the regulatory goals of universal service as applied to low-income consumers,
we determine that a facilties requirement for ETC designation is not necessar to ensure that a pure
wireless reseller's charges, practices, classifications or regulations are just and reasonable when that carer
seeks such status solely for the purose of providing Lifeline-supported services. Indeed, for the reasons
provided below, we find that the facilties requirement impedes greater utilzation of Lifeline-supported
services provided by a pure wireless reseller.
10. Universal service has been a fudamenta goal of federal telecommunications regulation since the
passage of the Communications Act of 1934.30 Congress renewed its concern for low-income consumers
in the Telecommunications Act of 1996 when it established the principles that guide the advancement and
preservation of universal service.3! Specifically, the Act directs the Commission to consider whether
"consumers in all regions of the Nation, including low-income consumers and those in rual, insular, and
high cost areas, ... have access to telecommunications (services) ... at rates that are reasonably comparable
to rates charged ... in urban areas.,,32 We therefore examine the facilties requirement from which
TracFone seeks forbearance in light of the statute's goal of providing low-income consumers with access
to telecommunications services.
11. Just and Reasonable: As an initial matter, we note that a provision or regulation is "necessar" if
there is a strong connection between the requirement and regulatory goal.33 Section 10(a)(I) requires that
we consider whether enforcement of the facilties-based requirement of section 214(e) for a pure wirelessreseller that seeks ETC designation for Lifeline support only is necessar to ensure that the charges,
practices, classifications or regulations are just and reasonable and not unjustly or uneasonably
discriminatory .
12. We find that the facilties requirement is not necessar to ensure that TracFone's charges,
practices, and classifications are just and reasonable and not unjustly or uneasonably discriminatory where
it is providing Lifeline service only. The Commission has in the past declined to extend ETC status to pure
resellers because it was concerned about double recovery of universal service support.34 In makng this
decision, however, the Commission considered the issue in the context of wire line resellers and without
differentiating among the types of unversal service support and the basis of distribution. Lifeline support,
designed to reduce the monthly cost of telecommunications services for eligible consumers, is distributed
on a per-customer basis and is directly reflected in the price that tle eligible customer pays.35 Because it iscustomer-specific, a carier who loses a Lifeline customer to a reseller would no longer receive the Lifeline
support to pass though to that customer. Thus, a wireless reseller who serves a Lifeline-eligible customer
and receives Lifeline support directly from the fund does not receive a double recovery. By comparison,
where the wholesale carer is an incumbent LEC subject to price-regulated resale under section 251 (c)( 4),
the rate at which the reseller obtains the wholesale service is based on a state-mandated percentage
2947 U.S.C. § 254(b)(3).
3047 U.S.C. § 151 ("to make available, so far as possible, to all the people of the United States ... a rapid, effcient,Nation-wide, and world-wide wire and communication service with adequate facilties at reasonable rates")
(emphasis added).
3! 47 U.S.C. § 254(b); see 1997 Universal Service Order, 12 FCC Rcd at 8789, para. 21 and 8793, para. 27.
3247 U.S.C. § 254(b)(3) (emphasis added).
33 See CTIA v. FCC, 330 F.3d 502, 512 (2003).
341997 Universal Service Order, 12 FCC Rcd at 8861,8873,8875, paras. 151-152, 174, and 178.
3547 C.F.R. §§ 54.401, 54.504.
6
Federal Communications Commission FCC 05-165
discount off of the incumbent LEC's retail rate for the service, and any Lifeline support received by the
incumbent LEC would therefore be reflected in the price charged to the reseller.36 In this scenario, a
reseller that also received Lifeline support could recover twice: first because the benefit of the Lifeline
support is reflected in the wholesale price and second because the reseller also receives payment directly
from the fud for the Lifeline customer. That, however, is not the case before us. TracFone, as a CMRS
provider, does not purchase Lifeline-supported services from incumbent LEC providers. Because
TracFone's CMRS wholesale providers are not subject to section 251(c)(4) resale obligations, the resold
services do not reflect a reduction in price due to Lifeline support. Therefore, we find that allowing
TracFone to receive Lifeline supp()rt directly from the fud would not result in double recovery to
TracFone and that the logic of the 1997 Universal Service Order does not apply here.
13. We agree with TracFone that, as a reseller, it is by definition subject to competition and that this
competition ensures that its rates are just and reasonable and not unjustly or uneasonably discriminatory. 37
We note that TracF one's Lifeline offering wil compete with at least one other Lifeline offering whether
from the underlying CMRS provider, if an ETC, or from the incumbent wireline carier.38 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 that TracFone has created a wireless prepaid product
that is neither dependent upon the retail service offerings of its underlying cariers nor simply a rebranding
of the underlying carier's retal service offering which may provide a valuable alternative to eligible
consumers.39
14. For the reasons provided above, we find that the requiements of
the first prong of section lO(a)are met. Where, as here, the wireless reseller is forgoing all universal service support but Lifeline, which is
customer-specific and is designed to make telecommuncation service affordable to eligible consumers, the
facilties requirement is unecessar to preserve the integrity of the universal service program or the fud.
By limiting TracFone's eligibility to Lifeline support, the facilties requirement is not necessar to ensure
that TracFone's charges, practices, and classifications are just and reasonable.
15. Consumer Protection: Section lO(a)(2) requires that we consider whether enforcement of
thefacilities-based requirement of section 214(e) for a pure wireless reseiier that seeks ETC designation only
for Lifeline support is necessar for the protection of consumers. We find that imposing a faciltiesrequirement on a pure wireless reseiier is not necessar for the protection of consumers subject to the
conditions described below. Specifically, we conclude that forbearance from this provision wil actully
benefit consumers. Indeed, if TracFone is ultimately granted limited ETC status, it would be offering
Lifeline-eligible consumers a choice of providers not available to such consumers today for accessing
telecommunications services. The prepaid featue may be an attactive alternative for such consumers who
need the mobilty, security, and convenience of a wireless phone but who are concerned about usage
charges or long-term contracts. We also note that TracFone has committed to ensuring that all of itsconsumers wil be able to place enhanced 911 (E91 1) calls from their handsets even if
the consumer'sservice is not active or does not have prepaid minutes available.40
36 See 47 C.F.R § 25
1 (c)(4).
37 Forbearce Petitiön at 5.
38 See 47 C.F.R. § 54.405(a) (requiring ETCs to offer Lifeline service).
39 TracFone states that its customers pay in advance for minutes of
use, without term contracts or tennination fees,other extraneous or pass-though fees, credit checks, or deposits. TracFonealso states that its pricing is unifonn
across its service areas despite the costs associated with any paricular underlying carer. Forbearance Petition at 3-
4.
40 August Reply Comments at 10.
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Federal Communications Commission FCC 05-165
16. Given the importce of public safety, we condition this grant of forbearance on TracFone's
compliance with the E911 requirements applicable to wireless resellers, as modified below, for all Lifeline
customers. In light of the condition discussed below, that TracFone ensure its customers receive only one
Lifeline-supported service, we find it essential that TracFone's Lifeline-supported service be capable of
providing emergency access. Given the possibilty that this Lifeline-supported service wil be the
customers' only means of accessing emergency personnel, we require that TracF one provide its Lifeline
customers with access to basic and E911 service immediately upon activation of service.41 We note that
this condition is consistent with TracFone's representation that its Lifeline customers wil be able to make
emergency calls at any time.42 To demonstrate compliance with this condition, TracFone must obtain a
certfication from each PSAP where it provides Lifeline service confirming that TracFone provides its
customers with access to basic and E911 service. TracFone must fuish copies of these certifications to
the Commission upon request.43 As an additional condition, TracFone must provide only E911-compliant
handsets to its Lifeline customers, and must replace any non-compliant handset of an existing customer
that obtains Lifeline-supported service with an E911-compliant handset, at no charge to the customer. The
Commission has an obligation to promote "safety of life and propert" and to "encourage and faciltate the
prompt deployment thoughout the United States of a seamless, ubiquitous, and reliable end-to-end
infrastructue" for public safety.44 The provision of911 and E911 services is critical to our nation's abilty
to respond to a host of crises, and this Commission has a longstading and continuing commitment to a
nationwide communications system that promotes the safety and welfare of all Americans, including
Lifeline customers.45 We believe that these conditions are necessar to ensure that TracFone's Lifeline
customers have meaningful access to emergency services. We reiterate that, with the possibilty that the
Lifeline service wil be the customer's only access to emergency services and given the potential gravity of
har if such Lifeline customers canot obtan such access, we believe that these conditions wil fuer the
protection of such Lifeline customers.
17. We are not persuaded by some commenters' concerns regarding the impact on the size of the
unversal service fud and the associated contribution obligation if we grant ths Petition.46 Because
section 1O(a)(2) requires that we consider the welfare of all "consumers," we must consider the effect a
grant of this Petition wil have on consumers who wil likely shoulder the effects of any increased
contribution obligation since cariers are permitted to recover their contrbution obligations from
41 Under section 20. I 8(m) of our rules, wireless reselIers have an independent obligation, beginning December 3 i,
2006, to provide access to basic and E91 I service, to the extent that the underlying facilties-based licensee has
deployed the facilties necessar to deliver E91 i information to the appropriate PSAP. 47 C.F.R. § 20.18(m).
Section 20. i 8(m) furter provides that reselIers have an independent obligation to ensure that all handsets or other
devices offered to their customers for voice communications are location-capable. Id. Under our rules, this
obligation applies only to new handsets sold after December 3 I, 2006. Id. As a condition of this grant of
forbearce, however, we require that TracFone, if grated ETC status, meet the requirements of section 20. i 8(m)
for all of its Lifeline customers as of the date it provides such Lifeline service.
42 August Reply Comments at. i 0 (given E91 i capabilities of its service and handsets, TracFone envisions that its
service "really wil serve as a 'lifeline' for those eligible customers paricipating in the progr").
43 We recognize that, as a practical matter, if TracFone's underlying facilties-based licensee has not deployed the
facilties necessar to deliver E91 i information to the appropriate PSAP, TracFone wil not be able to offer Lifeline-
supported service to customers residing in that area.
44 Applications ofNextel Communications, Inc. and Sprint Corporation For Consent to Transfer Control of
Licensesand Authorizations, WT Docket No. 05-63, Memoradum and Order, FCC 05- i 48, par. i 44 (reI. August 8, 2005).
45 Id.
46 See, e.g., Comments ofTDS Telecommunications Corp., fied September 20,2004, at 5-6 (TDS Comments).
8
Federal Communications Commission FCC 05-165
customers.47 If TracFone is able to obtain ETC designation for Lifeline-only services, we do not expect
this to significantly burden the universal service fud and thus negatively affect consumers though
increased pass-though charges of the cariers' contribution obligations. The Commission has recognized
the potential growth of the fud associated with high-cost support distributed to competitive ETCs.48TracFone, however, would not be eligible for high-cost support. In 2004, low-income support accounted
for only 14 percent of the distribution of the tota universal service fud; whereas, high-cost support
acc'ounted for 64.2 percent.49 Any increase in the size of the fud would be minimal and is outweighed bythe benefit of increasing eligible paricipation in the Lifeline program, fuering the statutory goal of
providing access to low-income consumers. Significantly, granting TracFone's Petition wil not have any
effect on the number of persons eligible for Lifeline support.
18. We furer safeguard the fund by imposing additional conditions on this grant offorbearance.
Specifically, as a furer condition of this grant offorbearance and in addition to all other required
certifications under the program, we require that TracFone require its Lifeline customers to self-certifY
under penalty of perjur upon service activation and then anually thereafter that they are the head of
household and only receive Lifeline-supported service from TracFone. 50 The penalties for perjur must be
clearly stated on the certification form. Additionally, in order to fuer strengten the head of householdrequirement, we require that TracFone track its Lifeline customer's priar residential address and
prohibit more than one supported TracFone service at each residential address.51 These conditions are
consistent with TracFone's representations in the record.52 In light of these safeguads, we are notdissuaded from granting forbearance by concerns of double recovery relating to customers receiving
Lifeline support for more than one service.53 We recognze, however, that the potential for more than one
47 See 47C.F.R. § 54.712.
48 See Federal-State Joint Board on Universal Service, Virginia Cellular, LLC Petition
for Designation as anEligible Telecommunications Carrier in the Commonwealth of Virginia, CC Docket No. 96-45, Memorandum
Opinion and Order, 19 FCC Rcd 1563, 1577, para. 31 (2004); see also Federal-State Joint Board
on UniversalService, Highland Cellular, Inc. Petition for Designation as an Eligible Telecommunications Carrier in the
Commonwealth of Virginia, CC Docket No. 96-45, Memorandum Opinion and Order, 19 FCC Rcd 6422, 6433-4,
para. 25 (2004).
49 Wireline Competition Bureau, Federa Communications Commission, Trends in Telephone Service, Table 19.1
and Chart 19.1 (June 2005). As of March 2004, the average monthly federal support per non-tribal Lifeline
customer was $8.55. Id. at Table 19.7. See 47 C.F.R § 54.403. Tribal customers are eligible for up to an
additional $25 per month in Lifeline support. 47 C.F.R. § 54.403(a)(4).
50 October Reply Comments at 3-4 (commitment to require Lifeline customers to self-certify that they do not receive
support from any other carier). To monitor compliance, we require that TracFone maintain the self-certifications
and provide such documentation to the Commission upon request.
51 See Reply Comments of TracFone Wireless, Inc. to Petition for ETC Designation in Virginia, fied September 7,
2004, at 7-8 (fully capable offulfillng all record keeping requirements and has the abilty to track each consumer's
primar residence). See also Letter from Mitchell F. Brecher, Counsel for TracFone, to Marlene H. Dortch, FCC,
CC Docket No. 96-45, fied July 13,2005 (capable offulfi1lng certification and verification requirements)
(TracFone July 13 Ex Parte).
52 See n.56 and n.57 above. We point out that
these conditions are in addition to, and do not supplant, thecertification and verification eligibilty aiready required by our rules for federal default states and any similar state
rules for the non-federal default states. See, e.g., 47 C.F.R. § 54.410 (requiring initial certification and annual
verification of eligibilty).
53 See TDS Comments at 5-6; Reply Comments of
the United State Telecom Association, fied October 4,2004, at 6and n.l8; letter from Katherine O'Har, Verizon, to Marlene H. Dortch, FCC, CC Docket No. 96-45, at i, fied
August 9, 2005 (Verizon Ex Parte); USTelecom August 17 Ex Parte at 4.
9
Federal Communications Commission FCC 05-165
Lifeline-supported service per eligible consumer is an industr-wide problem.54 We are confdent that
these conditions of this grant offorbearance wil eliminate this concern with respect to TracFone's
customers. Additionally, we encourage comment on this issue in the Comprehensive Universal Services
Program Management proceeding to address the potential for abuse thoughout the industr. 55
19. USTelecom raised concerns about the fact that TracFone distributes its service though retail
outlets.56 USTelecom argues that TracFone wil not have the requisite control over the retailer's employees
to ensure compliance with Lifeline rules and certifications. We recognize that this may be a problem and
thus require that TracFone distribute its Lifeline service directly to its Lifeline customers. Specifically,
customers may purchase handsets at TracFone's retail outlets, however, we require that TracFone deal
directly with the customer to certify and verify the customer's Lifeline eligibilty. Of the two methods for
certfying and verifying customer eligibilty offered by TracF one, we rej ect the point of sale procedures
that would allow TracFone Lifeline customers to submit qualifying information to the retal vendor. 57
TracFone must have direct contact with the customer, whether by telephone, fax, Internet, in-person
consultation or otherwise, when establishing initial and continued eligibilty.
20. Certai commenters argue that the prepaid, resold nature of TracFone's proposed service offering
wil faciltate fraud, waste, and abuse in the Lifeline program. 58 We find that ths concern is more properly
addressed in any order resolving TracFone's petitions for designation as an ETC. In the ETC designation
proceedings, if TracFone's petitions are granted, we wil address how Lifeline support wil be calculated
and distributed if the prepaid natue of TracFone's service offering requires such clarification.
21. In light of the conditions we have outlined here, we believe that appropriate safeguads are in
place to deter waste, fraud, and abuse. We strve to balance our objective of increasing paricipation in the
low-income program with our objective of preventing and deterring waste, fraud, and abuse. We find that
we have strck the appropriate balance here. We are also mindful of the fact that other prepaid pure
wireless cariers may similarly seek eligibilty for Lifeline-only support. Given the safeguards we put in
place aimed at ensuring that only eligible consumers receive such support and that they receive such
support only once, we do not believe that similar requests wil have a detrimental impact on the fund. We
note that to the extent any similarly situated prepaid wireless reseller seeks forbearance from these
requirements for the purose of providing only Lifeline support, it wil be expected to comply with all the
conditions we impose upon TracFone herein.
22. Accordingly, we find that, subject to the 911 and E911 conditions and the self-certification and
address limitation conditions set out above, the ETC facilties-based requirement is not necessar for
consumer protection. We thus conclude that the second prong of section lO(a) is satisfied.
23. Public Interest: Section 1O(a)(3) requires that we consider whether enforcement of the facilties-
based requirement of section 214( e) for a pure wireless reseller that seeks ETC designation for Lifeline
54 See Verizon Ex Parte at 1; USTelecom August 17 Ex Parte at 2,4.
55 See Comprehensive Review of
Universal Service Fund Management, Administration, and Oversight, Federal
State Joint Board on Universal Service, Schools and Libraries Universal Service Support Mechanism, Rural Health
Care Support Mechanism, Lifeline and Link-Up, Changes to the Board of Directorsfor the National Exchange
Carrier Association, Inc., WC Docket Nos. 05-195, 02-60, 03-109 and CC Docket Nos. 96-45, 97-21, FCC 05-124,
para. 22 (reI. June 14,2005) (Comprehensive Universal Services Program Management).
56 See USTelecom August 17 Ex Parte at 4.
57 TracFone July 13 Ex Parte at 2-3.
58 Letter from Jeffrey S. Lanning, USTelecom, to Marlene H. Dortch, FCC, CC Docket No. 96-45, at 3-5, fied
August 26,2005; Reply Comments ofVerizon, fied October 4,2004, at 3.
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Federal Communications Commission FCC 05-165
support only is in the public interest. In this instance, based on the record before us, we find that the
statutory goal of providing telecommunications access to low-income consumers outweighs the
requirement that TracFone own facilities, where TracFone, should it be designated an ETC, wil be eligible
only for Lifeline support. Thus, we find that requiring TracFone, as a wireless reseller, to own facilties
does not necessarily further the statutory goals of the low-income progr, which is to provide support to
qualifying low-income consumers throughout the nation, regardless of where they live.
24. The Lifeline program is designed to reduce the monthly cost of telecommunications service for
qualifying low-income consumers.59 Presently only about one-third of households eligible for low-incomeassistance actually subscribe to the program. 60 We recently expanded eligibilty criteria and outreach
guidelines for federal default states in an effort to increase paricipation.61 On July 26,2005, we launched
ajoint initiative with the National Association of Regulatory Utility Commissioners to raise awareness ofour Lifeline and Link-Up programs among low-income consumers.62 We believe even more can be done to
fuer expand paricipation to those subscribers that qualify and thus furter the statutory goal of section
254(b). Therefore, consistent with the Commission's assertion in the 1997 Universal Service Order
concerning under-utilzation of the program, we conclude it is appropriate to consider the relief requested
with the goal of expanding eligible paricipation in the program.63 With only about one-third of Lifeline-eligible households actually subscribing, we believe that granting TracFone's Petition serves the public
interest in that it should expand paricipation of qualifying consumers. Accordingly, we conclude that
forbearing from the facilties requirement for Lifeline support only, subject to the conditions set fort
above satisfies the requirements of section IO(a)(3).
25. Withn thir days of this release of ths Order, we requi that TracFone fie with theCommission a plan outlinig the measures it wil take to implement the conditions outlined in this Order.
This plan wil placed on public notice and wil be considered by the Commission in TracFone's ETC
designation proceedings. For the foregoing reasons and subject to the conditions above, we find that the
third prong of section IO(a) is satisfied.
26. Finally, we reject USTelecom's argument that TracFone has not requested forbearance from the
facilties requirement in section 254( e) and that without such forbearance TracF one canot fulfill the
obligations of an ETC. Specifically, section 254( e) requires that "a carer that receives such support shall
use that support only for the provision, maintenance, and upgrading of facilties and services for which the
support is intended."64 USTelecom emphasizes that the words "facilties" and "services" arejoined by the
conjunctive article "and" and therefore an ETC must use any unversal support received for facilties as
well as services.65 We disagree with USTelecom's interpretation. First, we read this provision togetherwith the sentence that precedes it. The preceding sentence states that only an ETC "shall be eligible to
receive specifc Federal universal service support.,,66 The next sentence, which USTelecom quotes, then
5947 C.F.R. § 54.401.
60 Lifeline and Link-Up, WC Docket No. 03-109, Report and Order and Furer Notice of
Proposed Rulemaking, 19FCC Rcd 8302, 8305, para. 1 and Appendix K at Table 1.B.
61 Id at 8305, para 1.
62 FCC and NARUC Launch "Lifeline Across America" to Raise Awareness of Lifeline and Link-Up Programs,
News Release, July 26, 2005.
63 1997 Universal Service Order, 12 FCC Rcd at 8972,para. 370.
64 47 U.S.C. § 254(e).
65 USTelecom August 17 Ex Parte at 5 n.l.
6647 U.S.C. § 254(e) (emphasis added).
11
Federal Communications Commission FCC 05-165
requires that "such service", which we find refers to the specific unversal support from the previous
sentence, be used only for purposes "for which the support is intended." Reading these sentences together
in their entirety, we find that Congress intended that a carer must use the universal support received to
meet the goals of the specific support mechanism under which it was distributed. For example, a carier
who receives specific Lifeline support must use that support to reduce the price of access to
telecommuncations services for the eligible customer. Second, we note that not all the nominalized verbs
in the sentence quoted by USTelecom, "provision," "maintenance," and "upgrading," can be read to apply
to both facilties and services. What for example would it mean to "maintain" a "service" apar from the
"facilities"? We also note that the nominalized verbs themselves are joined by the conjunctive arcle
"and". Therefore, extending USTelecom's logic, any universal support received by a carier must always
be used for the provision, maintenance, and upgrading of both facilities and services. The terms
maintenance and upgrading as generally associated with a carier's network and not with service itself.
Thus, USTelecom's reading of section 254(e) would require us to interpret the term "service" 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 disjunctive. Thus, we conclude that an ETC receiving
Lifeline support uses ths specific universal service support for the puroses for which it was intended
when it reduces the price of the Lifeline service by the amount of the support.
IV. ORDERING CLAUSE
27. Accordingly, IT is ORDERED THAT, pursuant to sections 4(i), 10,214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i), 160,214, and 254, the Petition for
Forbearance filed by TracFone Wireless, Inc. on June 8, 2004, and amended on August 9, 2004 and
September 24, 2004, is GRANTED subject to the conditions set fort above and, on our own motion, we
forbear from enforcing 47 C.F.R. § 54.201(1)(d).
FEDERA COMMICATIONS COMMISSION
Marlene H. Dortch
Secretar
67 See, e.g., TRW Inc. v. Andrews, 534 U.S. 19,31 (2001); Duncan v. Walker, 533 U.S. 167,174 (2001).
12
Federal Communications Commission FCC 05-165
STATEMENT OF
COMMISSIONER KATHLEEN Q. ABERNATHY
Re: Federal-State Joint Board on Universal Service; Petition ofTracFone Wireless, Inc.for
Forbearancefrom 47 u.s.c. § 214(e)(l)(A) and 47 C.F.R. § 54.201(i) (CC Docket No. 96-45).
I am very pleased to join in today's decision, which will help expand the availabilty of
Lifelinesubsidies to low-income users of resold wireless telecommunications services. In the 1996 Act, Congress
directed the Commission to ensure that all Americans, "including low-income consumers," have access to
telecommunications services and information services. One critical component of
the Commission'seffort to guarantee such access is the Lifeline program, which provides discounts to monthly telephone
service for the less fortunate among us. Unfortately, however, a 2004 analysis performed by
Commission staff indicated that only about a thd of households eligible for Lifeline support actuallysubscribe to the program.
While it is clear that today's action wil not close that gap on its own, I believe it is essential that
we tae all possible steps to ensure that low-income users are not bared from utilzing available support
on the basis of the specific technologies they wish to use or the specific business plans pursued by their
service providers. By providing support to resold wireless servces, we are indeed extending a "line" to
customers who might not otherwise make use of the Lifeline program, and thus are helping to fulfill
Congress's vision of trly universal service.
13
Exhibit No. 4
Case No. TFW-T-09-01
J. Fuentes, TracFone Wireless, Inc.
Federal Communications Commission FCC 09-17
Before the
Federal. Communications Commission
Washington, D.C. 20554
In the Matter of )
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Petition for Designation as an Eligible )
Telecommunications Carer in the State of Florida )
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Federal-State Joint Board on Universal Service
TracFone Wireless, Inc.
Petition for Designation as an Eligible
Telecommunications Carrier in the State of NewYork
Petition for Designation as an Eligible
Telecommunications Carrier in the
Commonwealth of Virginia
Petition for Designation as an Eligible
Telecommunications Carrier in the State of
Connecticut
Petition for Designation as an Eligible
Telecommunications Carrier in the
Commonwealth of Massachusetts
Petition for Designation as an Eligible
Telecommunications Carrier in the State of
Alabama
Petition for Designation as an Eligible
Telecommunications Carer in the State of NorthCarolina
Petition for Designation as an Eligible
Telecommunications Carrier in the State of
Tennessee
Petition for Designation as an Eligible
Telecommunications Carrer in the State of
Delaware for the Limited Purpose of Offering
Lifeline Service to Qualified Households
Petition for Designation as an Eligible
Telecommunications Carrer in the State of NewHampshire for the Limited Purose of Offering
Lifeline Service to Qualified Households
Petition for Designation as an Eligible
Telecommunications Carier in the
Commonwealth of Pennsylvania for the Limited
CC Docket No. 96-45
Federal Communications Commission FCC 09-17
Purose of Offering Lifeline Service to Qualified )Households )
)
Petition for Designation as an Eligible )
Telecommunications Carrer in the District of )
Columbia for the Limited Purpose öf Offering )
Lifeline Service to Qualified Households )
ORDER
Adopted: March 4, 2009 Released: March 5, 2009
By the Commission:
I. INTRODUCTION
1. In this order, we grant a petition for modification fied by TracFone Wireless, Inc.
(TracFone). TracFone seeks modification of a condition imposed as part of the Commission's grant of
TracFone's request for forbearance allowing it to be designated as an eligible telecommunications carrier
(ETC) for the purposes of providing low-income universal service support to its customers under the
Lifeline program.1 Specifically, we grant TracFone's request to modify the requirement that TracFone
obtain a certification from each public safety answering point (PSAP) where it provides Lifeline service
confinning that TracFone provides its customers with access to basic and E911 service.2 TracFone must
stil 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 affinnative
finding that TracFone does not provide its customers with access to 911 and E911 service within the
PSAP's service area, TracFone may self-certfy that it meets the basic and E911 requirements. Grant of
this request wil allow TracFone to provide Lifeline service to low-income consumers within its service
areas in a timely manner, while also ensurng that TracFone's Lifeline customers have access to necessary
9 i i services.
i See Petition for Modification of Public Safety Answering Point Certification Condition by TracFone Wireless,
Inc., CC Docket No. 96-45 (filed Nov. 21,2008) (TracFone Petition); see also Petition ofTracFone Wireless, Inc.
for Forbearance from 47 U.S.c. § 214(e)(1)(A) and 47 C.PR. § 54.201 (i), CC Docket No. 96-45, Order, 20 FCC
Rcd 15095 (2005) (TracFone Forbearance Order); Federal-State Joint Board on Universal Service, TracFone
Wireless, Inc. Petitionfor Designation as an Eligible Telecommunications Carrier in the State of New York et al.,
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, North Carolina,
Tennessee, Delaware, New Hampshire, Pennsylvania, and the District of Columbia). Under the Lifeline progrm,
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 Utility Commission (Pennsylvania Commission) sought
an extension of the pleading cycle, seeking four additional weeks for comments and two more weeks for reply
comments. Pennsylvania Commission Comments at 2. The Pennsylvania 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 Secretar,
Federal Commuiications Commission, CC Docket No. 96-45 (dated Jan. 29, 2009) (Pennsylvania Commission
Januar 29th Ex Parte Letter). We find that the Pennsylvania 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 15102, para. 16; see also TracFone ETC Designation Order, 23
FCC Rcd at 6215, para. 22 (declining TracFone's request to modify the forbearance condition requiring TracFone to
obtain the required certification from each PSAP).
2
Federal Communications Commission FCC 09-17
II. BACKGROUND
2. Section 254(e) of the Communications Act of 1934, as amended, (the Act) provides that
"only an eligible telecommunications carrer designated under section 2I4( e) shall be eligible to receive
specific Federal universal service support.,,3 Pursuant to section 214(e)(l) of the Act, a common carrerdesignated as an ETC must offer the servces supported by the federal universal service mechanisms
either using its own facilities, or a combination of its own facilties and resale of another carrier's
services.4
3. TracFone provides prepaid wireless servces on a resale basis only, rather than providing
service over its own facilties.5 On September 8, 2005, the Commission conditionally granted TracFone's
request for forbearance from the facilties-based requirement of section 2I4( e)( 1) of the Act. 6 Among
other things, the forbearance grant was conditioned on the requirement that TracFone obtain a
certification from each PSAP where it provides Lifeline service confirming that TracFone provides its
customers with access to basic and E9II service.? On April 11,2008, the Commission conditionally
designated TracFone an ETC for the purose of receiving Lifeline support only in its licensed serviceareas in New York, Virginia, Connecticut, Massachusett, Alabama, North Carolina, Tennessee,
Delaware, New Hampshire, Pennsylvania,s and the Distrct ofColumbia.9 In the TracFone ETC
347 U.S.c. § 254(e).
447 U.S.C. § 214(e)(1)(A); see also 47 C.F.R. § 54.201(d)(1).
5 TracFone Petition at 3-4.
6 TracFone Forbearance Order, 20 FCC Rcd at 15102, para. 16.
? Id at 15098, para. 6. Grant of forbearance was conditioned on TracFone: (a) providingits Lifeline customers with
911 and E911 access regardless of activation status and availability 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 thedate it provides Lifeline service; (d) obtaining a certification from each PSAP where TracFone provides Lifeline
service confinning that TracFone provides its customers with 911 and E911 access; (e) requiring its customers to
self-certify at time of service activation and annually thereafter 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 puroses of ETC designation; therefore the Commission granted
TracFone ETC designation pursuant to section 214(e)(6) of the Act. TracFone ETC Designation Order, 23 FCCRcd at 6207, 6211, paras. 1,9; 47 U.S.c. § 214(e)(6). On Februry 26, 2009, the Pennsylvania Commission
announced that it wil exert its jurisdiction, effective as of that date, to designate wireless carer ETCs pursuant to
section 214(e)(2) of the Act. See Letter from Joseph K. Witiner, Assistant Counsel, Pennsylvania Public Utility
Commission, to Marlene H. Dortch, Secretary, Federal Communications Commission, CC Docket No. 96-45 (fied
Feb. 26, 2009) (attaching Februar 26, 2009 Pennsylvania Commission decision); 47U.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 911lE911obligations, including obligations relating to the provision and support of911 and E911 service. Id at 6213, para.
16. The TracFone Petition and this order are limited to the PSAP certification requirement regarding TracFone's
provision of access to 911 and E911 service to its customers. This condition is separate from the certification
regarding TracFone's compliance with any state 9111E91,l obligations, includig payment of fees into state91l/E911 fuds. See Pennsylvania Commission Januar 29th Ex Parte Letter at 2 (expressing concern about
TracFone's compliance with the separate condition to certify compliance with Pennsylvania law); Pennsylvania
Emergency Management Agency Petition to Reject, CC Docket No. 96-45 (filed Jan. 29, 2009) (asking the
Commission to reject TracFone's certification for compliance with Pennsylvania 91
lIE91 i obligations due toTracFone's failure to contribute to Pennsylvania's Wireless E91 i Emergency Services Fund).
3
Federal Communications Commission FCC 09-17
Designation Order, the Commission declined TracFone's request to eliminate the condition that TracFone
obtain the required certification from each PSAP where it wil provide Lifeline service.IO
4. On November 21, 2008, TracFone fied the instant petition seeking to modifY the PSAP
certification requirements. Specifically, TracFone requests that, if a PSAP does not provide the requisite
certification within 90 days of a request for such certfication from TracFone, TracFone would be allowed
to self-certifY that its customers wil have access to 911 and E911 without regard to activation status or
availabilty of prepaid minutes. 11
III. DISCUSSION
5. As the Commission found in the TracFone ETC Designation Order, TracFone's
universal service Lifeline offering wil provide a variety of benefits to Lifeline-eligible consumers,
including increased consumer choice, high-quality service offerings, and mobilty.12 In addition, the
prepaid featue ofTracFone's service, which essentially fuctions as a toll control feature, may be an
attractive alternative to Lifeline-eligible consumers who are concerned about usage charges or long-term
contracts. Therefore, we find that the public interest is served by allowing TracFone to offer its Lifeline
service to consumers as quickly as possible, while also ensurng that its consumers have access to
necessar emergency services.
6. The Commission has twice stressed the importance of ensuring that TracFone's Lifeline
customers have access to 911 and E911 services though the PSAP certification process. 13 We affirm that
TracFone must continue to comply with this requirement and seek certification from the PSAPs within its
service area. To ensure 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-certifY compliance with the
91 i and E911 availabilty condition if, within 90 days of TracFone's request, 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 service within the PSAP's service area. 14 In making a request for
certification, 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 certification and the PSAP has not made an affrmative
finding that TracFone does not provide its customers with access to 911 and E911 servce. TracFone may
not self-certifY compliance until 90 days after it has provided a PSAP with notification of the 90-day self-
certification period adopted in this order. TracFone also may not make such a self-certification until it
has provided a PSAP with all of the information and/or equipment requested by the PSAP in analyzing
10 Id. at 6213, par. 16.
II TracFone Petition at 1. On December 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 January 6, 2009, and reply comments were due Januar 13,2009.
Comments were fied by Consumer Action, the National Emergency Number Association, and the Pennsylvania
Commission. TracFone and the Pennsylvania Commssion fied reply comments.
12 See TracFone ETC Designation Order, 23 FCC Rcd at 6212, para. 15.
13 TracFone Forbearance Order, 20 FCC Rcdat 15102, para. 16; see also TracFone ETC Designation Order, 23
FCC Rcd at 6215, para. 22.
14 If a PSAP has conducted testing and notified TracFone within the 90-day period of concerns regarding the ability
ofTracFone customers to access 911 and E91 1 services, TracFone may not self-certify compliance until it has
addressed the PSAP's concerns (for example, issues with TracFone's underlying wireless provider concernng
access to 91 1 and E91 1 services), such that the PSAP can provide the required certification. In this circumstance,
TracFone may self-certify 180 days after requesting certification from the PSAP if the PSAP does not approve or
deny the certification within that period.
4
Federal Communications Commission FCC 09-17
TracFone's ability to provide 911 and E911 service to its customers. If TracFone makes such a self-
certification, TracFone must obtain from each of its underlying carrers that provide service to TracFonein the area served by that PSAP certification that the carers route 911 and E911 calls from TracFone
customers to the PSAP in the same maner that they route 911 and E911 calls from their own customers.
TracFone is required to retain such underlying carrer certifications and provide them to the Commission
upon request. TracFone must provide PSAPs with copies of any self-certifications atthe time they arefiled. If after TracFone makes a self-certfication a PSAP finds that TracFone does not provide its
customers with 911 and E911 access, upon receiving notice of this finding TracFone must immediately
notify the Commission 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 thePSAP certification requirement, stating that TracFone has refused to comply with the "drive testing"
requirements included as part of Pennsylvania's Phase II 911 compliance.I5 It is unclear from the
Pennsylvania 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 "drive testing" of
the underlying wireless provider's service would comply with the state requirement. As this Commission
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 certfication that it is in full compliance with any
applicable 911Æ911 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
carers providing service on a purely-resale basis. We do not find that the Pennsylvania Commission's
claim of TracFone's non-compliance with the state "drve testing" requirement warrants denial of
TracFone's request for à 90-day PSAP certfication 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 request and allow it to
self-certify its provision of911 and E911 services to its customers, and also require it to obtain
certfication from its underlying carrers, if, within 90 days ofTracFone's request for certification, 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 E911 servce within the PSAP's servce 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 rules.I7
IV. ORDERIG CLAUSES
8. Accordingly, IT is ORDERED that, pursuant to the authority contained in sections 1,
4(i), 4(j), 214(e) and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i),
154(j), 214 and 254, the petition for modification filed by TracFone Wireless, Inc. is GRANTED as
discussed herein.
15 Pennsylvania Commission Reply Comments at 7-8. The Pennsylvania Commission also requests that the
Commission revisit the decisions granting TracFone's forbearance request and ETC designation in Pennsylvania.
¡d. at 9,12-17. Pursuant to section l.io6(f) of the Commission's rules, petitions for reconsideration of Commissionactions must be filed within 30 days from the date of public notice of the final Commission action. 47 C.F.R. §
1.106(f). The public notice dates of both the TracFone Forbearance Order and the TracFone ETC Designation
Order were their release dates pursuant to section 1.4(b)(2) of the Commission's rules. 47 C.F.R. § 1.4(b)(2).Those dates were September 8, 2005, and April 1 1,2008, respectively. The Pennsylvania Commission's reply
comments were filed on January 13, 2009, well outside of the 30-day reconsideration deadlines for both orders. ThePennsylvania Commission's oppositions to those decisions are therefore untimely and wil not be considered here.
16 TracFone ETC Designation Order, 23 FCC Rcd at 6213, para. 16.
1747 C.F.R. § 1.41.
5
Federal Communications Commission FCC 09-17
9. IT is FURTHER ORDERED that the Pennsylvania Public Utility Commission's request
for an extension of the pleading cycle is DENIED.
10. IT is FURTHER ORDERED that, pursuant to section 1.03 of the Commission's rules,47 C.F.R. § 1.03, this order SHALL BE effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
6
Exhibit No.5
Case No. TFW-T-09-01
J. Fuentes, TracFone Wireless, Inc.
CTIA
Consumer Code for Wireless Service
To provide consumers with information to help them make informed choices when selecting
wireless service, the CTIA and the wireless carriers that are signatories below have developed
the following Consumer Code. The carriers that are signatories to this Code have voluntarily
adopted the principles, disclosures, and practices here for wireless service provided to individual
consumers, including voice, messaging, and data services sold either on a postpaid or prepaid
basis.
THE WIRELESS CARRIERS THAT ARE SIGNATORIES TO THIS CODE WILL:
ONE
DISCLOSE RATES AND TERMS OF SERVICE TO CONSUMERS
F or each service plan offered to new consumers, wireless carriers wil disclose to consumers at point of sale
and on their web sites, at least the following information, as applicable: (a) the coverage area for the service;
(b) any activation or initiation fee; (c) the monthly access fee or base charge; (d) the amount and nature of any
voice, messaging, or data allowances included in the plan (such as night and weekend minutes); (e) the
charges for domestic usage in excess of any included allowances or outside of the coverage area; (f) for
prepaid service plans, the period of time during which any balance is available for use; (g) whether there are
prohibitions. on data service usage and whether there are network management practices that wil have a
materia.1 impact on the customer's wireless data experience; (h) whether any additional taxes, fees or
surcharges apply; (i) the amount or range of any such fees or surcharges that are collected and retained by the
carrier; ü) the amount or nature of any late payment fee; (k) whether a fixed-term contract is required and its
duration; (I) the amount and nature of any early termination fee that may apply; and (m) the trial period during
which a consumer may cancel service without any early termination fee, as long as the consumer complieswith any applicable return policy.
TWO
MAKE AVAILABLE MAPS SHOWING WHERE SERVICE IS GENERALLY AVAILABLE
Wireiess carrers wil make available at point of sale and on their web slles maps depictng approximate
domestic coverage applicable to each of their service plans currently offered to consumers. To enable
consumers to make comparisons among carriers, these maps will be generated using generally accepted
methodologies. and standards to depict the carrier's outdoor coverage. All such maps will contain or link to an
appropriate legend concerning limitations and/or variations in wireless coverage and map usage, including any
geographic limitations on the availability of any services included in the plan. Wireless carriers will periodically
update such maps as necessary to keep them reasonably current. If necessary to show the extent of service
coverage available to customers from carriers' roaming partners, carriers wil request and incorporate coverage
maps from roaming partners that are generated using similar industry-accepted criteria, or if such information
is not available, incorporate publicly available information regarding roaming partners' coverage areas.
THREE
PROVIDE CONTRACT TERMS TO CUSTOMERS AND CONFIRM CHANGES IN SERVICE
W hen a customer initiates new service or a change in existing service, the carrier wil provide or confirm
any new material terms and conditions of the ongoing service with the customer.
FOUR
ALLOW A TRIAL PERIOD FOR NEW SERVICE
W hen a customer initiates postpaid service with a wireless carrier, the customer wil be info;med of and
given a period of not less than 14 days to try out the service. The carner will not impose an early termination
fee if the customer cancels service within this period, provided that the customer complies with applicable
return and/or exchange policies. Other charges, including usage charges, may stil apply.
FIVE
PROVIDE SPECIFIC DISCLOSURES IN ADVERTISING
In advertising of prices for wireless service plans or devices, wireless carriers will disclose material charges
and conditions related to the advertised prices and services, including if applicable and to the extent the
advertising medium reasonably allows: (a) whether activation or initiation fees apply; (b) monthly access fees
or base charges; (c) the amount and nature of any voice, messaging, or data service allowances included in
the plan; (d) the charges for any domestic usage in excess of any included allowances or outside of the
coverage area; (e) for prepaid service plans, the period of time during which any balance is available for use;
(f) whether there are network management practices that wil have a material impact on the customer's
wireless data experience; (g) whether any additional taxes, fees or surcharges apply; (h) the amount or range
of any such fees or surcharges that are collected and retained by the carrier; (i) whether a fixed-term contract
is required and its duration; U) early termination fees; (k) the terms and conditions related to receiving a prod~
uct or service for "free;" (I) for any service plan advertised as "nationwide," (or using similar terms), the carrier
wil have available substantiation for this claim; and (i) whether prices or benefits apply only for a limited time or
promotional period and, if so, whether any different fees or charges wil apply for the remainder of the contract
term.
SiX
SEPARATELY IDENTIFY CARRIER CHARGES FROM TAXES ON BILLING STATEMENTS
()n customers' bils, carriers wil distinguish (a) monthly charges for service and features, and other charges
collected and retained by the carrier, from (b) taxes, fees and other charges collected by the carrier and
remitted to federal state or local governments. Carriers will not label cost recovery fees or charges as taxes.
SEVEN
PROVIDE CUSTOMERS THE RIGHT TO TERMINATE SERVICE FOR CHANGES TO CONTRACT
TERMS
Carriers wil not modify the material terms of their postpaid cUstomers' contracts in a manner that is
materially adverse to those customers without providing a reasonable advance notice of a proposed
modification and allowing those customers a time period of not less than 14 days to cancel their contracts with
no early termination fee.
EIGHT
PROVIDE READY ACCESS TO CUSTOMER SERVICE
Customers wil be provided a toll-free telephone number to access a carrier's customer service during
normal business hours. Customer service contact information wil be provided to customers online and on
billng statements. Each wireless carrier wil provide information about how customers can contactthe carrier in
writing, by toll-free telephone number, via the Internet or otherwise with any inquiries or complaints, and this
information will be included, at a minimum, on all biling statements, in wrtten responses to customer inquiries
and on carriers' web sites. Each carrier wil also make such contact information available, upon request, to any
customer callng the carrier's customer service departments.
NINE
PROMPTLY RESPOND TO CONSUMER INQUIRIES AND COMPLAINTS RECEIVED FROM
GOVERNMENT AGENCIES
Wireiess carriers wil respond in writing to state or federal administrative agencies within 30 days of
receiving written consumer complaints from any such agency.
TEN
ABIDE BY POLICIES FOR PROTECTION OF CUSTOMER PRIVACY
Each wireless carrier will abide by a policy regarding the privacy of customer information in accordance with
applicable federal and state laws, and will make available to the public its privacy policy concerning information
collected online. Each wireless carrier wil abide by the CTIA Best Practices and Guidelines for Location-
Based Services.
Exhibit No.6
Case No. TFW-T-09-01.
J. Fuentes, TracFone Wireless, Inc.
Privacy Policy
.....................................................................................................................................................................__...........................'....................................................................................................................................
SAFELINK WIRELESS~ service is U.S. government supported program for Income eligible households provided byTracFone Wireless.
Please read the TRACFONE Privacy Policy.
TRACFONE 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 policy is to ensure that all Web site visitors' customer identification,
which we term "customer identifiable information," is kept private at all 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 activities
that are directly linked to them.
The collection of customer identifiable information is a critical element in the day-to-day operation of the Web
site to allow TRACFONE to maintain the highest level of customer service 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 servces.
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
TRACFONE wil 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. TRACFONE wil, 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 services on its behalf¡ TRACFONE wil 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.
Collection and Use:
In some instances, TRACFONE may collect information that is not "customer identifiable information." 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 Service
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 identifiable information for various purposes, including but not limited
to, biling purposes, to provide or change service, to anticipate 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 your
customer identifiable information, in conjunction with information available from other sources, to market new
services that may be of interest to you, but TRACFONE wil not disclose your customer identifiable information to
third parties who want to market products to you.
Declining e-mail offers:
,
TRACFONE wil only send our customers e-mail regarding promotional offers or other news if a customer
specifically 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 unsubscribe 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) wil not contact that customer directly with TRACFONE promotional messages, and (b) wil not use
customer identifiable information obtained from that customer's registration to contact that customer with
TRACFONE product or service messagès. 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 improper 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 private e-mail communications that are transmitted using
TRACFONE services except as required to operate the service 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 otherwise violates the customer agreement for that service.
Account Information:
TRACFONE honors requests from customers fOr account information and wil correct any such information, which
may be inaccurate. Customers may contact TRACFONE 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 process 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 to
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 will 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 collect personal information from our customers. We recommend that you examine the privacy policiesof such third party 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 Website information. 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 submitting any personal information.
Third Party Advertising Companies
We may use third-party advertising companies to serve ads on our behalf. These companies mayemploy cookies
and action tags (also known as single pixel. gifs or web beacons) to measure advertising effectiveness. 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, click here. You may also visit the Advertising.com Privacy
Policy, dick 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 services, 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 does 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 passively, collect information from children under the age of 13. If we
create offers and products that make it appropriate to collect information from children under the age of 13, wewil notify you of the change in this Policy. We also wil 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 services or offerings, including but not limited to any sweepstakes or other
offering. We do not sell any personally identifiable 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 services 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 information~tracfone.com.