20100205final_order_no_30996.pdf

Office of the Secretary
Service Date
February 5, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TRACFONE WIRELESS, INc. FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER
CASE NO. TFW-09-
ORDER NO. 30996
On October 29, 2009, TracFone Wireless, Inc. ("TracFone" or "Company ) filed an
Application, pursuant to Section 214( e )(2) of the Communications Act of 1934, for designation
as an Eligible Telecommunications Carrier ("ETC"
).
Application at 1. TracFone is seeking ETC
designation solely for the purpose of providing Lifeline service under its trade name SafeLink
Wireless and will not seek funds from the federal Universal Service Fund. Id.
On January 15, 2010, Commission Staff submitted a decision memorandum
recommending that the Commission deny TracFone s Application.
THE APPLICATION
TracFone is incorporated in the State of Delaware and is headquartered in Miami
Florida. Id. at 2. TracFone is a prepaid wireless service reseller of commercial mobile radio
service (CMRS) throughout the United States, including the State of Idaho. Id. The Company
provides service through a virtual network consisting of services obtained from numerous
licensed operators of wireless networks and has provided CMRS service throughout the State of
Idaho for the past ten years. Id. In Idaho, TracFone obtains service from several underlying
carriers, including AT&T Mobility, T-Mobile, and Verizon Wireless that enable the Company to
offer services wherever these providers offer service. Id.
TracFone proposes to provide a free handset and free service minutes based on the
amount of federal USF low-income support available pursuant to the rules of the FCC. Id. at 21.
This equates to approximately 67 minutes of free service per month. Each additional minute will
be billed at $.20 per minute. Id. at 22.
On April 9, 2008, the Federal Communications Commission (FCC) granted
TracFone s petition for forbearance with respect to the facilities-based service requirement. Id.
at 4-5; See also FCC 08- 100. The FCC's decision paved the way for TracFone to seek ETC
designation in Idaho.
ORDER NO. 30996
STAFF ANALYSIS AND RECOMMENDATION
Staff reviewed the Application and noted that TracFone failed to provide Company
contact information, Agent of Service information or a certificate of good standing from the
Secretary of State s Office. Upon further investigation, Staff was advised by the Secretary of
State s Office that TracFone s certificate to conduct business in Idaho was revoked on October 7
2004, for failure to submit an annual report. Staff attached a copy of the Secretary of State
Business Entity document to its memorandum and remarked that the Company will be required
to re-file with the Secretary of State s Office as if it is a new company doing business in Idaho.
Id.
TracFone s failure to submit the requisite annual report to the Secretary of State
Office suggested to Staff that granting ETC designation would not be in the public interest, nor
did it elicit confidence that the Company would follow similar annual reporting requirements as
outlined in Commission Order No. 29841. Staff also notes that low-income consumers are no
longer limited to wireline ETC companies to receive the Idaho Telephone Service Assistance
Program (ITSAP) and the federal Lifeline and Linkup benefits. Staff then listed several wireless
ETC designated companies already providing service in Idaho. Accordingly, Staff
recommended that TracFone s Application be denied. Id.
COMMISSION DISCUSSION AND FINDINGS
The Commission "has full jurisdiction and authority to designate carriers as ETCs
pursuant to the federal Telecommunications Act of 1996. .
. .
" Order No. 29841 at 2. In order to
be designated an ETC, the telecommunications provider must: (1) be a "common carrier" as
defined by 47 U.C. ~ 153(10); (2) offer throughout its proposed service areas the universal
services set forth in 47 C.R. ~ 54.101(a) either by using its own facilities or a combination of
its own facilities and the resale of another carrier s services; and (3) must advertise the
availability of its universal service offering and the charges therefore using media of general
distribution. 47 U.C. ~ 214(e)(1); Id. at 3. Additionally, TracFone has the burden of
demonstrating that the public interest would be served by granting its ETC Application. Id. at 8
After a thorough review of TracFone s ETC request and Staffs recommendation, the
Commission finds that TracFone has failed to meet the statutory requirements for ETC
designation as set forth in 47 U.C. ~ 214(e)(1) and Commission Order No. 29841. The
Commission finds that TracFone has failed to demonstrate that granting its Application for ETC
ORDER NO. 30996
designation in Idaho would be in the public interest. TracFone s failure to comply with the
minimal filing requirements of the Idaho Office of the Secretary of State is strong evidence that
TracFone maintains a rather limited and tangential commitment to consumer service in the state
of Idaho. See id. at 11 (ETC Applicant's commitment to consumer protection and service to be
considered on a case-by-case basis ). Moreover, granting TracFone s Application would not
provide any additional benefit to low-income wireless subscribers in Idaho or provide significant
competition within the proposed service area, as several wireless ETCs are currently providing
the same wireless Lifeline service TracFone proposes to offer.
ORDER
IT IS HEREBY ORDERED that the Application of TracFone Wireless, Inc. for
designation as an Eligible Telecommunications Carrier is denied without prejudice.
THIS IS A FINAL ORDER. Any person interested in the Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
ORDER NO. 30996
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this sofA
day of February 2010.
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PTON-;'PRE S ENT
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MARSHA H. SMITH, COMMISSIONER
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ATTEST:
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Commission Secretary
O:TFW-09-
ORDER NO. 30996