20100115Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:JANUARY 15,2010
RE:TRACFONE WIRELESS INc.'S APPLICATION FOR DESIGNATION
AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER; CASE NO.
TFW-09-01.
On October 29 2009, TracFone Wireless Inc. (TracFone) submitted an Application to the
Commission for designation as an eligible telecommunications carrier (ETC) for service areas in
Idaho that are currently served by other carriers. TracFone seeks ETC designation solely to
provide Lifeline service, under its trade name SafeLink Wireless, to qualifying Idaho consumers
and will not seek funds from the federal Universal Service Fund for the purpose of providing
service to high cost areas. Application at I.
TracFone is a prepaid wireless service reseller of commercial mobile radio service
(CMRS) throughout the United States, including the State ofldaho. Id. at 2. 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 continuously 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.
DECISION MEMORANDUM - 1 -JANUARY 15 2010
On April 9, 2008, the Federal Communications Commission (FCC) granted TracFone
petition for forbearance with respect to the facilities based service requirement. Id. pg 4-
See also FCC 08-100. The FCC's decision paved the way for TracFone to seek ETC designation
in Idaho.
TracFone is incorporated in the state of Delaware and is headquartered in Miami, Florida.
Id. at 2.
STAFF ANALYSIS
Staff has reviewed the Application and determined that TracFone provided company
contact information Agent of Service information, and 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. See Attached Secretary of State Business Entity
document. 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.
TracFone s failure to submit the requisite annual report to the Secretary of State s Office
leads Staff to believe that granting ETC designation is not in the public interest, nor does it elicit
confidence that the Company will 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. Several wireless ETC designated companies
provide service in Idaho: Inland Cellular, Syringa Wireless (includes ClearTalk), CTC Telecom
(dba Snake River PCS), Alltell (Verizon Wireless), and Edge Wireless (AT&T Mobility). For
these reasons, Staff recommends that TracF one s Application be denied.
COMMISSION DECISION
Does the Commission wish to deny TracFone s Application for designation as an ETC?
!h CLUI ~~CWt
Grace Seaman
GS:udmemos/tfwtO9.1 dec memo
DECISION MEMORANDUM - 2 -JANUARY 15 2010
IDSOS Viewing Business Entity http://www .accessidaho.orglpublic/sos/ corp/search.html ?ScriptForm....
IDAHO SECRETARY OF STATE
Viewing Business Entity
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Ben Ysursa, Secretary of State
TRACFONE WIRELESS, INC.
8390 N W 25TH ST
MIAMI, FL 33122
Type of Business: CORPORATION, GENERAL BUSINESS
Status: ADMIN REVOKED , ADMIN REVOKE 07 Oct 2004
State of Origin: FLORIDA
Date of 30 Jul 1997
Origination! Authorization:
Current Registered Agent:CORPORATE CREATIONS NETWORK INC
2219 N CURTIS ROAD
BOISE , ID 83706
Organizational ID ! Filing C120356
Number:
Number of Authorized Stock
Shares:
Date of Last Annual Report: 19 May 2003
Original Filing:
Filed 30 Jul 1997 CERTIFICATE
OF AUTHORITY
Amendments:
Amendment Filed 11 Jun NAME CHANGED
2001 TO TRACFONE
WIRELESS , INc.
Annual Reports:
Report for year 2008 CHNG
RAjRO
Report for year 2003 ANNUAL
REPORT
Report for year 2003 CHNG
RAjRO
Report for year 2002 ANNUAL
REPORT
Report for year 2001 ANNUAL
REPORT
Report for year 2000 ANNUAL
REPORT
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Report for year 1999 ANNUAL
REPORT
Report for year 1998 ANNUAL
REPORT
Report for year 1998 CHNG
RAjRO
Report for year 1998 CHANGE
ADDRESS
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