20120411Expansion Application.pdf

IDavisWright
!! TremaineLLp RECEIVED
2012 APR It AM 9:i4[
Suite 2400
1300 SW Fifth Avenue
Portland, OR 97201-5630
Mark P. Trinchero
503.778.5318 tel
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[e-mail]
1JT(LI1 C i1 'S101
April 10, 2012
VIA UPS OVERNIGHT MAIL
Ms. Jean Jewell, Commission Secretary
Idaho Public Utilities Commission
P0 Box 83720
472 West Washington
Boise, ID 83720-0074
1WT- /0-0!
Re: In the Matter of the Application of T-Mobile West Corporation for Conditional
Designation as an Eligible Telecommunications Carrier for Purposes of Participating in
the Mobility Fund Phase I Auction and Request for Expedited Consideration
Dear Ms. Jewell:
On behalf of T-Mobile West Corporation, enclosed for filing are an original and seven copies of
Application of T-Mobile West Corporation for Conditional Designation as an Eligible
Telecommunications Carrier for Purposes of Participating in the Mobility Fund Phase I Auction
and Request for Expedited Consideration.
Also enclosed is a Stamp-and-Return copy. Please acknowledge receipt by date stamping the
extra copy of the Application and returning it to us in the self-addressed stamped envelope
provided. Should you have any questions regarding this Application, please contact me.
Very truly yours,
Davis Wright Tremaine LLP
PkP. Trincher
MPT/jan
Enclosures
cc: Coeur d'Alene Tribe
Shoshone-Banock Tribes of the Fort Hall Reservation of Idaho
Nez Perce Tribe of Idaho
Kootenai Tribe of Idaho
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Telecommunications Carrier ("ETC") in areas outside its existing ETC Area for the purpose of
establishing eligibility to participate in the Mobility Fund Phase I auction at the Federal
Communications Commission ("FCC") that is scheduled to be held on September 27, 2012
("Auction 901"). As explained in greater detail below, the FCC, in its USF/ICC Transformation
Order,4 established for the first time a universal service support mechanism dedicated
exclusively to mobile services - the Mobility Fund. Phase I of the Mobility Fund will provide up
to $300 million in one-time support to "immediately accelerate deployment of networks for
mobile voice and broadband services in unserved areas."5
There are numerous unserved census block groups in Idaho where carriers may bid to
receive Mobility Fund support to build infrastructure over which to deliver 3G or better
broadband and voice service.6 However, to participate in Auction 901, a carrier must be
designated as an ETC in all census blocks for which it desires to submit a bid. Furthermore, a
carrier must be designated as an ETC at the time it files its short-form application for
participation in the auction. Short-form applications for Auction 901 are expected to be due 90
days prior to the start of the auction, which would mean that short-form applications could be
due on June 29, 2012. The deadline for short-form applications for Auction 901 has not been set
2 1-Mobile received ETC designation in Idaho, effective August 9, 2011. In Re the Application of T-Mobile West Corp. For
Designation as an Eligible Telecommunications Carrier, Case No. TMW-T- 10-01, Order No. 32319 (August 9, 2011) (2010 7'-
Mobile ETC Order); T-Mobile's ETC Area in Idaho includes all of the incumbent local exchange company wire centers listed in
Attachment A to its Application, as Amended January 2011. See 2010 T-Mobile ETC Order at 13.
Mobility Fund Phase JAuction Scheduledfor September 27, 2012, Comment Sought on Competitive Bidding Procedures for
Auction 901 and Certain Program Requirements, A U Docket No. 12-25, Public Notice, DA 12-121 (rel. Feb.2, 2012) ("Phase I
Mobility Fund PN").
Connect America Fund, WC Docket No. 10-90, A National Broadband Plan for Our Future, GN Docket No. 09-51,
Establishing Just and Reasonable Rates for Local Exchange Carriers, WC Docket No. 07-135, High-Cost Universal Service
Support, WC Docket No. 05-337, Developing an Unified Intercarrier Compensation Regime, CC Docket No. 0 1-92, Federal-
State Joint Board on Universal Service, CC Docket No. 96-45, Lifeline and Link-Up, WC Docket No. 03-109, Universal Service
Re4form - Mobility, WT Docket No. 10-208, Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161 ,rel.
November 18, 2011 ("USF/ICC Transformation Order").
5 1d. at ¶ 28.
6 See h tp://wireless.fcc.gov/auctions/default.htm?job auction summary&id901. See also Eligible Telecommunications Carrier
Designation for Participation in Mobility Fund Phase I, WC Docket No. 09-197; WT Docket No. 10-208; AU Docket No. 12-25,
Public Notice, DA 12-271 at ¶2 (rel. February 24, 2012) ("Phase IMobility Fund Designation PN").
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by the FCC, and it is possible that the short-form application deadline could be set for an earlier
or later date than the typical 90 days prior to the start of an auction.
T-Mobile desires to participate in the FCC's Mobility Fund Phase I auction to bring voice
and mobile broadband services to unserved areas in Idaho, thereby giving Idaho consumers
increased access to basic and advanced telecommunications services. T-Mobile is a facilities-
based telecommunications carrier with a substantial Idaho presence that is seeking the additional
approval necessary to be eligible to participate in the Mobility Fund Phase I auction for census
blocks outside its existing ETC Area. T-Mobile seeks ETC designation for census blocks outside
its existing ETC Area that is conditioned upon T-Mobile winning support from the Mobility
Fund Phase I auction, which is permitted by the FCC's USF/ICC Transformation Order.7
T-Mobile meets all statutory and regulatory prerequisites for ETC designation' and the
public interest would be greatly served by granting this application, thereby enabling T-Mobile
to bid in the FCC's Auction 901 and, if successful, deploy mobile wireless infrastructure in order
to provide mobile voice and broadband service to unserved areas of the state that would benefit
consumers in rural Idaho.
Due to the upcoming Auction 901 that is scheduled to occur on September 27, 2012, and
the FCC's requirement that all carriers that wish to participate must be designated as ETCs at the
time the auction short-form applications are filed with the FCC, T-Mobile requests expedited
review and consideration of its Application.
III
III
7 See ICC/USF Transformation Order footnote 665; 47 C.F.R. §54.1003(a).
8 See 2011 T-Mobile ETC Order.
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I. BACKGROUND
A.Company Overview
T-Mobile is a national facilities-based provider of wireless voice, messaging, and data
services capable of reaching over 293 million Americans. T-Mobile employs approximately
42,000 individuals nationwide and has had a long-standing presence in Idaho, where it employs
more than 700 individuals. At the end of the fourth quarter of 2011, T-Mobile had
approximately 33.2 million mobile customers nationwide. T-Mobile has deployed an advanced
telecommunications network capable of serving consumers' basic and advanced communications
needs.
B.Previous ETC Designations
T-Mobile's corporate affiliates have been designated as an ETC in ten jurisdictions --
nine states and Puerto Rico.9 In addition to Idaho, the eight other states in which T-Mobile has
been designated include Florida, Georgia, Hawaii, Kentucky, Louisiana, Minnesota, North
Carolina, and Washington. T-Mobile also has nineteen pending requests for high cost or
Lifeline-only ETC designation for purposes of providing Lifeline service in Alabama, Arizona,
90rder Granting Eligible Telecommunications Carrier Designation, In Re: Petition for designation as eligible
telecommunications carrier by T-Mobile South LLC, Docket No. 090507-TP, Order No. PSC-I0-0475-PAA-TP (Florida Public
Service Commission, July 28, 2010) (Florida ETC Order); Application of T-Mobile South LLCfor designation as an Eligible
Telecommunications Carrier pursuant to Section 214(e) (2) of the Communications Act of 1934, Docket No. 32967 (Ga. Pub.
Serv. Comm'n, decided Feb. 10, 2012, adopted Nov 17, 201 lDecision and Order, In Re the Application of T-Mobile West
Corporation For Designation as an Eligible Telecommunications Carrier in the State of Hawaii, Docket No. 2010-0119 (Hawaii
Public Utilities Commission, March 14, 2011); Order, In Re Petition of T-Mobile Central LLC and Powertel/Memphis, Inc. for
Designation as Eligible Telecommunications Carriers Pursuant to Section 214(E) (2) of the Communications Act of 1934
(Kentucky Public Service Commission, July 14, 2010); Public Decision, T-Mobile Central, LLC, ex parte. In Re Application for
Designation as an Eligible Telecommunications Carrier (ETC) for the purposes of receiving Universal Service Support for low
income and rural service, S-31865 (Louisiana Public Service Commission, Minutes from Open Session, October 12, 2011
(corrected), Ex, 31, p. 7); Order Granting Petition for ETC Designation, Setting Conditions, and Requiring Compliance Filings,
In Re T-Mobile Central LLC 's Petition for Designation as an Eligible Telecommunications Carrier (ETC) in Minnesota, Docket
No. P-6856/M-1 1-123 (Minnesota Public Utilities Commission, September 27, 2011); Order, High -Cost Universal Service
Support; Federal-State Joint Commission on Universal Service, WC Docket No. 05-337, CC Docket No. 96-45, Order, 23 FCC
Rcd 8834, 8837-50, ¶ 42 (2008) (Interim Cap Order); Resolution and Order, Telecorp Communications, Inc., d/b/a AT&T
Wireless, Case No. JRT-2003-SU-0003 (Puerto Rico Telecommunications Regulatory Commission, September 10, 2003); Order
Granting Designation as an Eligible Telecommunications Carrier, In Re the Petition of T-Mobile West Corporation for
Designation as an Eligible Telecommunications Carrier, Docket No. UT-101060 (Washington Utilities and Transportation
Commission, October 14, 2010).
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Connecticut, Delaware, District of Columbia, Indiana, Maryland, Massachusetts, Michigan,
Mississippi, Missouri, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania,
Tennessee, and Virginia. In addition, T-Mobile has filed or will file requests for conditional
ETC designation for purposes of obtaining Mobility Fund Phase I support in a number of states
in addition to Idaho.
C. The Mobility Fund - Phase I Auction and Commission Authority to
Designate ETCs
On November 18, 2011, the FCC adopted comprehensive reforms of the universal service
and intercarrier compensation systems "to ensure that robust, affordable voice and broadband
service, both fixed and mobile, are available to Americans throughout the nation."" The FCC
recognized that "too many Americans today do not have access to modern networks that support
broadband" and that "[t]here are unserved areas in every state of the nation and its territories, and
in many of these areas there is little reason to believe that Congress's desire to 'ensure that all
people of the United States have access to broadband capability' will be met any time soon with
current policies."
As part of the FCC's reform of the universal service program, the FCC created a Mobility
Fund as part of the Connect America Fund, which is the first universal service mechanism
dedicated to ensuring availability of mobile wireless networks for voice and broadband services.
In Phase I of the Mobility Fund, the FCC stated that it will provide up to $300 million in one-
time support to accelerate the deployment of next generation 3G or better networks for mobile
voice and broadband services in unserved areas. Mobility Fund Phase I support will be awarded
through a nationwide reverse auction, administered by the FCC, which will be held on
° USF/ICC Transformation Order at ¶1.
Id. at 14.
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September 27, 2012. 12 The FCC has published a preliminary list of census blocks that are
potentially eligible for Mobility Fund Phase I support. The list includes census blocks that the
FCC considers unserved today by mobile broadband services, based on a centroid analysis of
whether there is service at the center of the census block. 13 T-Mobile seeks conditional
designation as an ETC in all census blocks in Idaho outside of its existing ETC Area that are
designated as eligible for bidding in the Mobility Fund Phase I auction. The FCC's preliminary
list was released by the FCC on February 10, 2012, along with an interactive map of the
potentially eligible blocks on the list. 14 The FCC has not yet released a final list. T-Mobile will
provide the Commission a copy of the final list from the FCC once it is published. 15
To participate in Auction 901, at the time it files its short-form application for
participation in the auction, a carrier must be designated as an ETC for all census blocks for
which it intends to submit a bid. The typical timeframe for submitting a short-form application
in a spectrum auction is 90 days prior to the start of the auction. In this case, that would make a
short-form application due by June 29, 2012. This would, in turn, require T-Mobile to be
designated as an ETC for all census blocks for which it intends to submit a bid in a reasonable
timeframe before that short-form application deadline.
In states that retain jurisdiction for designating ETCs, such as Idaho, it is the state
commission that must grant the necessary ETC designation. The FCC stated that:
By statute, the states, along with the [FCC], are empowered
to designate common carriers as ETCs. ETCs must satisfy various
service obligations, consistent with the public interest. We decline
to adopt new federal rules to govern the ETC designation process
solely for purposes of designating entities to receive non-recurring
12 See Phase I Mobility Fund PN.
See http://wireless.fcc.gov/auctions/default.htm?job=auction_summary&id901.
14 http://wireless.fcc.gov/auctions/Auction 901 _Attachment A_Jan2O 1 2.htm.
The map can be found at http://www.fcc.gov/maps/mobility-fund-phase- 1 -potentially-eligible-areas.
15 Many parties, including T-Mobile, filed comments on March 16, 2012, challenging the FCC's determinations regarding the
potential eligibility of specific census blocks for Mobility Fund Phase I support. Reply comments were filed on March 20h•
DWT 19345277v 1 0048172-000324 6
support, as suggested by some commenters. In light of the roughly
comparable amounts of time required for the Commission and
states to process applications to be designated as an ETC.
parties contemplating requesting new designations as ETCs for
purposes of participating in the auction should act promptly to
begin the process. The Commission will make every effort to
process such applications in a timely fashion, and we urge the
states to do the same. 6
Therefore, the Commission has the authority necessary to designate T-Mobile as an ETC
pursuant to this petition. 47 U.S.C. § 214(e), 47 C.F.R. 54.1003 and the IPUC ETC
Requirements Order provide the Commission with the authority to designate competitive carriers
as ETCs, which the Commission previously exercised in designating T-Mobile as an ETC. 17
T-Mobile seeks ETC designation conditioned upon T-Mobile winning support from the Mobility
Fund Phase I auction, which is permitted by the FCC's USF/ICC Transformation Order. 18
Therefore, T-Mobile would ultimately be an ETC in the areas in which it won Mobility Phase I
support.
T-Mobile satisfies all of the requirements for designation as an ETC, including:
(i) common carrier status; (ii) offering all of the supported services; (iii) offering service
throughout its designated ETC service area; (iv) advertising the availability of its universal
service offerings; and (v) meeting all other requirements for designation as an ETC. Based on
satisfying the ETC designation requirements, and the FCC's encouragement to the states to
process ETC applications in a timely fashion so that carriers can participate in Auction 901, the
Commission should expeditiously designate T-Mobile as an ETC in Idaho.
16 USF/1CC Transformation Order at 1390 (emphasis added).
17 See 2011 T-Mobile ETC Order.
See ICC/USF Transformation Order footnote 665; 47 C.F.R. section 54.1003(a).
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II. T-MOBILE MEETS THE STATUTORY AND REGULATORY PREREQUISITES
FOR ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION
As demonstrated herein, and as previously determined by the Commission," T-Mobile
meets the requirements for designation as an ETC as established under federal law, 20 Federal
Communications Commission ("FCC") rules, 21 and applicable Idaho requirements.22 In
particular, T-Mobile:
1.is a common carrier; 23
2.will offer the services supported by federal universal service support
mechanisms; 24
3.will use its own facilities to provide the supported services;"
4.will rovide the supported services throughout its designated service
area; 6
5.will advertise the availability of its universal service offerings and charges
for such offerings using media of general distribution; 27
6.will make Lifeline service available to qualifying low-income
consumers; 28
7.will meet the additional application requirements:
a)certify that it will comply with the service requirements applicable
to the support that it receives,* 29
b)submit a 2-year service improvement plan;30
C) be able to remain functional in emergency situations;3 1
d) satisfy consumer protection and service quality standards;32
19 See 2011 T-Mobile ETC Order.
2047 U.S.C. § 214(e)(1).
21 C.F.R. § 54.201(d). In its USF/ICC Transformation Order, the FCC modified the required supported services in 47 C.F.R.
§ 54.10 1 and the additional requirements for designation as an ETC in 47 C.F.R. § 54.202.
22 IPUC ETC Requirements Order.
23 47 U.S.C. § 214(e)(1); 47 C.F.R. § 54.201(d).
24 47 U.S.C. § 214(e)(1)(A); 47 C.F.R. §* 54.201(d)(1) and 54.405.
2547 U.S.C. § 214(e)(1)(A); 47 C.F.R. § 54.201(d)(1).
2647 U.S.C. § 214(e)(1); 47 C.F.R. § 54.201(d).
27 U.S.C. § 214(e)(1)(B); 47 C.F.R. § 54.201(d)(2).
28 C.F.R. § 54.405; see also In the Matter of Lifeline and Link Up Reform and Modernization, Report and Order and Further
Notice of Proposed Rulemaking, WC Docket No. 11-42, FCC 12-11, released February 6, 2012 ("Lifeline Reform Order"). The
FCC adopted comprehensive reforms to the federal low-income program, including steps to limit fraud, waste and abuse within
the program.
29 C.F.R. § 54.202 (a)(1)(i).
30 C.F.R. § 54.202 (a)(l)(ii) and IPUC ETC Requirements Order, App., at 2-3.
47 C.F.R. § 54.202(a)(2); IPUC ETC Requirements Order, App., at 3.
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e)provide local usage plans comparable to the incumbent local
exchange carriers (ILEC5) already operating in the proposed
area ;33
f)provide notice to affected tribal governments or tribal regulatory
authorities. 34
8.will comply with all applicable reporting requirements;35 and
9.will take steps to limit fraud, waste and abuse of the FUSF.36
Furthermore, T-Mobile's conditional designation as an ETC serves the public interest by
expanding the availability of next generation networks, if T-Mobile receives Mobility Fund
Phase I support, which will increase customer choice and service availability and make available
to consumers new service offerings, including wireless broadband and Lifeline services. This
is consistent with the Commission's conclusions in the 2011 T-Mobile ETC Order, where the
Commission stated:
We find that designating T-Mobile as an ETC in its requested rural
and non-rural service areas is in the public interest. Granting ETC
status will benefit consumers by offering new services and
increased competition. In addition, we find granting T-Mobile
ETC status will provide rural customers with greater access to
wireless services and may be beneficial to eligible recipients for
ITSAP and Lifeline services. 38
Therefore, in granting the additional conditional ETC designations requested in this Petition, the
Commission will further advance the public interest by permitting T-Mobile to participate in
Auction 901 and thereby, if it is the successful bidder, allow T-Mobile to bring enhanced service
offerings and broadband wireless and Lifeline services to unserved areas in the State.
32 C.F.R. § 54.202(a)(3); IPUC ETC Requirements Order, App., at 3.
° IPUC ETC Requirements Order, App., at 3. In the USF/ICC Reform Order, the FCC eliminated the additional requirement of
offering local usage, but 1-Mobile will continue to meet this requirement to the extent it is still required do so in Idaho.
Id. at 2. Because the FCC has not yet finalized the list of census block groups eligible for Auction 901, 1-Mobile is providing
a courtesy copy of its Application to all Tribal governments in Idaho. u See IPUC ETC Requirements Order, App., at 3-4.
See Lifeline Reform Order. T-Mobile will comply with all applicable Lifeline requirements and implement measures to
prevent fraud, waste, and abuse.
3747 U.S.C. § 214(e)(2).
2011 1-Mobile ETC Order at 13.
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T-Mobile's compliance with each of the applicable federal and Idaho requirements to
obtain designation as an ETC is further discussed below.
A.T-Mobile is a Common Carrier
T-Mobile is a Commercial Mobile Radio Service ("CMRS") provider, and, as such, T-
Mobile is regulated as a common carrier, 39 subject to all applicable regulations. Therefore, T-
Mobile meets the ETC requirement of being a common carrier. 40
B.T-Mobile Offers the Services Supported by the Federal Universal Service
Support Mechanisms
T-Mobile provides each of the four services supported by federal universal service
support mechanisms and will provide toll-limitation service for qualifying low-income
consumers upon designation as an ETC as set forth below. 41 In the 2011 T-Mobile ETC Order,
the Commission concluded that T-Mobile provides the requisite services. 42
1.Voice Grade Access To The Public Switched Telephone Network 43 -
T-Mobile meets this requirement through its provision of mobile voice
communications service and interconnection to the public switched
telephone network.
2.Local Usage - an amount of minutes of use provided free of charge to end
users. 44 T-Mobile meets this requirement by providing an amount of local
usage free of charge in each universal service rate plan.
3.Access To Emergency Services - access to emergency services includes
both access to 911 and E91 1 services to the extent the local government
has implemented such services .45 T-Mobile meets this requirement by
providing 911 service and meeting all requests for E91 I service from local
public service answering points ("PSAPs").
47 C.F.R. § 20.9.
40 See 2011 T-Mobile ETC Order at 12-13.
41 In the USF/ICC Transformation Order, the FCC revised the supported services to eliminate the requirement to offer dual tone
multi-frequency signaling, single party service, access to operator service, access to interexchange service, and directory
assistance, but T-Mobile continues to provide these services and functionalities as part of its universal service offerings,
including Lifeline service. 42 2011 T-Mobile ETC Order at 12-13.
'° 47 C.F.R. § 54.101(a).
47 C.F.R. § 54.101(a).
4547 C.F.R. § 54.101(a).
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4. Toll Limitation For qualifying Low-Income Consumers - toll limitation
means both toll blocking and toll control, or, if a carrier is not capable of
providing both toll blocking and toll control, then toll limitation is defined
as either toll blocking or toll control.46 Upon implementing any Lifeline
service offering that distinguishes between toll and non-toll calls,
T-Mobile will offer toll limitation to qualifying low-income consumers at
no additional charge. However, T-Mobile's typical service offerings do
not distinguish between toll and non-toll calls and, therefore, toll
limitation service is not applicable to such offerings. '
C.T-Mobile is a Facilities-Based Wireless Telecommunications Carrier
T-Mobile is a facilities-based wireless telecommunications carrier with its own
switching, cell sites, and associated telecommunications facilities in Idaho, enabling T-Mobile to
provide universal service throughout its proposed designated ETC service area. 48 The Company
uses radio licenses issued by the FCC to provide CMRS and will use its own extensive network
facilities throughout Idaho to provide service to consumers in its requested ETC Service Area.
In the 2011 T-Mobile ETC Order, the Commission concluded that T-Mobile is a facilities-based
carrier.
D.T-Mobile Will Provide Service Throughout Its Designated Service Area
T-Mobile commits to provide all of the supported services throughout its designated
service area, consistent with all applicable requirements. T-Mobile holds radio licenses from the
FCC that cover the entire state of Idaho. In the 2011 T-Mobile ETC Order, the Commission
concluded that T-Mobile satisfies this requirement. 50
47 C.F.R. § 54.101(a); 47 C.F.R. § 54.400(d).
In its Lifeline Reform Order, the FCC stated "[un this Order, we relieve ETCs of the obligation to offer TLS in the first
instance if their Lifeline offering does not distinguish in the pricing of toll and non-toll calls, which may relieve many ETCs of
the obligation to offer TLS." Lifeline Reform Order at ¶ 238. T-Mobile has not previously sought and has no plans in the future
to seek reimbursement for any toll limitation services provided to Lifeline customers.
4847 U.S.C. § 214(e)(1)(A); 47 C.F.R. § 54.201(d)(1).
n 2011 T-Mobile ETC Order at 12-13.
50 Id.
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E.T-Mobile Will Advertise the Availability of Its Universal Service Offerings
and Charges for Such Offerings Using Media of General Distribution
T-Mobile will advertise the availability of, and charges for, its universal service offerings
using media of general distribution, and will undertake outreach initiatives to increase consumer
awareness of T-Mobile's Lifeline service offering, consistent with all applicable requirements. 51
T-Mobile currently offers and advertises its wireless telecommunications services, including
those offerings that include all of the supported services, using radio, television, billboards, print,
internet, and targeted mailings, among others. T-Mobile will use the appropriate media outlets
to advertise its universal service offerings in a manner consistent with applicable requirements,
and, for its Lifeline service offerings, it will undertake outreach initiatives designed to reach
eligible low-income consumers and will include all required disclosures in its Lifeline
advertising and outreach. 52 In the 2011 T-Mobile ETC Order, the Commission concluded that T-
Mobile satisfies this requirement. 53
F.T-Mobile Meets the Additional Requirements for Designation as an ETC
1.Certify Compliance With Applicable Service Requirements
T-Mobile will serve all consumers within its ETC service area, and certifies that it will
comply with the service requirements applicable to the support that it receives, consistent with
47 C.F.R. § 54.202(a)(1)(i).
2.Service Improvement Plan ("SIP")
T-Mobile will use universal service finding consistent with the applicable requirements
for funding received under the Phase I Mobility Fund. The FCC has set forth several specific
requirements for providers who are awarded Mobility Fund Phase I support. Mobile service
47 U.S.C. § 214(e)(1)(B); 47 C.F.R. § 54.201(d)(2).
52 C.F.R. §§ 54.405(b) and (c).
2011 T-Mobile ETC Order at 12-13.
DWT 193452770 0048172-000324 12
providers are obligated to provide the supported services over a 3G or better network with
specific data transmission speeds. 54 Recipients that provide the supported services over 3G
networks will have two years from authorization of support to meet their requirements; those
deploying 4G networks will have three years. At the end of the build-out periods, recipients
must provide service over the areas in which they received support over at least 75 percent of the
total road miles in the identified census blocks.
T-Mobile will use funding to construct facilities and provide service in the census blocks
where it receives Mobility Fund Phase I funding. The FCC has not released the final list of
census blocks eligible for Mobility Fund Phase I support, but T-Mobile will provide the final list
as soon as it is released by the FCC. T-Mobile will prepare and file with the Commission a
comprehensive service improvement plan ("SIP") for any additional ETC service areas outside
its existing ETC Area after the FCC awards funding through its reverse auction.
3. Ability to Function in Emergency Situations
T-Mobile has the "ability to remain functional in emergency situations. ,5' As
demonstrated in its Emergency Operation Plan, T-Mobile has a reasonable amount of back-up
power to ensure functionality without an external power source, is able to re-route traffic around
damaged facilities, and is capable of managing traffic spikes resulting from emergency
situations. T-Mobile's Emergency Operation Plan is confidential and will be provided once a
Protective Order is issued. In the 2011 T-Mobile ETC Order, the Commission concluded that
T-Mobile satisfies this requirement. 57
54 See FCC ICC/USF Transformation Order at ¶J 360-362.
Id. at 1 365. The percentage build-out requirement is subject to change based on the FCC's final rules on the Mobility Phase I
auction.
47 C.F.R. § 54.202(a)(2); IPUC ETC Requirements Order, App., at 3.
2011 T-Mobile ETC Order at 13.
DWT 19345277v1 0048172-000324 13
4.Consumer Protection and Service Quality Standards
T-Mobile will satisfy applicable consumer protection and service quality standards in
accordance with 47 C.F.R. § 54.202(a)(3) and the IPUC ETC Requirements Order. 5' T-Mobile
is a strong supporter of and abides by the CTIA-The Wireless Association's® Consumer Code
for Wireless Service ("Consumer Code"). T-Mobile has been a signatory of the Consumer Code
since 2003. Most recently, T-Mobile was certified as CTIA compliant with the Consumer Code
as evidenced by the CTIA letter of certification dated October 7, 2011, attached hereto as Exhibit
1.
5.Comparable Local Usage
T-Mobile's service offerings are comparable to the offerings of the ILECs, taking into
consideration all of the attributes of its and the ILECs' service offerings. 59 In the 2011 T-Mobile
ETC Order, the Commission concluded that T-Mobile satisfies this requirement. 60
G. Make Available Lifeline Service To Eligible Low-Income Consumers
Upon designation as an ETC and receipt of Mobility Fund Phase I support, T-Mobile will
make available to qualified low-income consumers a discounted service offering that meets all
applicable Lifeline requirements. Consumers increasingly rely on their mobile phones for all of
their communications needs and qualifying low-income consumers are no exception.
T-Mobile's Lifeline service offering, which is subject to change, includes:
• a low $6.49 per month Lifeline rate;
145 Whenever minutes ®,ól 500 night minutes, and 500 weekend minutes
per month; 62
58 See IPUC ETC Requirements Order, App., at 3.
In its USF/ICC Transformation Order, the FCC eliminated the requirement to offer local usage comparable to the ILEC
offerings. Nevertheless, to the extent it is still required, T-Mobile will comply.
60 2011 T-Mobile ETC Order at 13.
61 Whenever minutese are minutes that can be used at anytime and anywhere on T-Mobile's nationwide network.
62 Weekend minutes are currently defined as midnight Friday to midnight Sunday, and nights are currently defined as 9:00 p.m.
to 6:59 a.m. Monday-Friday, based on the start time of call.
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additional minutes priced at $0.05 per minute;
• an affordable handset; and
• terms and conditions of service as identified in generally available service
offerings identified on its web page: http://www.t-mobile.coml .
T-Mobile' s Lifeline service offering provides consumers additional benefits. For example, calls
to 911 and to customer service (dialing 611 from the mobile handset) will be free calls,
regardless of whether the customer has sufficient remaining minutes available in their account,
and those calls will not be deducted from the monthly included minutes or charged as additional
minutes. Additionally, qualified consumers who subscribe to T-Mobile' s Lifeline offering are
not charged a fee for the cost of the federal universal service fund or other government-related
surcharges (including a fee for the cost of local number portability). In addition to voice
services, Lifeline customers will also have access to a variety of other standard features at no
additional charge, including voice mail, caller identification and call-waiting services. T-Mobile
also intends to offer Lifeline discounts to other rate plans in the near future. In its Lifeline
Reform Order released on February 6, 2012, the FCC adopted comprehensive reforms to the
low-income program to revise and modernize the Lifeline service requirements and implement
measures to address fraud, waste, and abuse within the system. T-Mobile has thoroughly
reviewed the Lifeline Reform Order and all newly-adopted requirements and will implement the
internal controls and processes necessary to ensure compliance with the FCC's final ruls and
any subsequent FCC orders. 63 T-Mobile is a well-established universal service provider
operating in multiple states, including Idaho, with a comprehensive compliance program in place
to address all existing and future requirements. In the 2011 T-Mobile ETC Order, the
Commission reviewed this same T-Mobile Lifeline service offering, and found that "granting T-
63 T-Mobile notes that the Lifeline Reform Order may be subject to petitions for reconsideration.
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Mobile ETC status will provide rural customers with greater access to wireless services and may
be beneficial to eligible recipients for ITSAP and Lifeline services."64
IV. DESIGNATING T-MOBILE AS AN ETC IS IN THE PUBLIC INTEREST
T-Mobile meets all of the requirements for designation as an ETC by providing the
supported services, committing to serve all consumers throughout its designated service area,
offering a Lifeline service consistent with all applicable requirements, advertising the availability
of its universal service offerings, and furthering the goals of the universal service program.
Moreover, conditional designation of T-Mobile as an ETC for census blocks outside its existing
ETC Area is in the public interest because, if T-Mobile is successful in obtaining Mobility Fund
support, consumers will benefit from competitive pricing, new services, a higher level of service
quality, and great customer service. Furthermore, the designation will not adversely impact the
universal service fund. As noted above, in the 2011 T-Mobile ETC Order, the Commission
concluded that granting T-Mobile ETC designation satisfies the public interest test, stating
"[g]ranting ETC status will benefit consumers by offering new services and increased
competition." 65
Granting T-Mobile conditional ETC designation for census blocks outside its existing
ETC Area will allow T-Mobile to participate in the FCC's Auction 901 and bid to serve portions
of Idaho that currently do not have access to 3G or better mobile wireless services. Idaho
consumers will benefit if T-Mobile is successful in winning support from the FCC's Mobility
Fund. This will lead to: (i) customer choice for basic and advanced communications needs;
(ii) new service offerings with competitive pricing, services, and features; and (iii) construction
64 2011 T-Mobile ETC Order at 13.
65 Id.
DWT 19345277v1 0048172-000324 16
and operation of telecommunications facilities and services in unserved areas of the state to
deploy 30 or better networks.
The benefits of competition are widely recognized and extend to all markets, as
recognized by the FCC:
We note that an important goal of the Act is to open local
telecommunications markets to competition. Designation of
competitive ETCs promotes competition and benefits consumers in
rural and high-cost areas by increasing customer choice, innovative
services, and new technologies. We agree with Western Wireless
that competition will result not only in the deployment of new
facilities and technologies, but will also provide an incentive to the
incumbent rural telephone companies to improve their existing
network to remain competitive, resulting in improved service to
Wyoming consumers [consumers in the proposed ETC service
area]. In addition, we find that the provision of competitive
service will facilitate universal service to the benefit of consumers
in Wyoming by creating incentives to ensure that qualit1 services
are available at "just, reasonable, and affordable rates." 6
If T-Mobile obtains Mobility Fund Phase I support, T-Mobile's conditional designation
as an ETC for census blocks outside its existing ETC Area will result in consumers having
greater access to wireless telecommunications services, thereby advancing the basic goal of
preserving and advancing universal service. Congress established a competitive universal
service framework to expand the level of competition among carriers vying for the business of
consumers based on price, service offerings, coverage, and service quality. T-Mobile offers
consumers competitive service offerings and high-quality customer service, and through its
potential entry into additional universal service markets, more Idaho consumers may now have
greater access to all of these benefits. The wireless service that T-Mobile offers will provide
661n the Matter of the Federal-State Joint Commission on Universal Service, Western Wireless Corp. Petition for Designation as
an Eligible Telecommunications Carrier in the State of Wyoming, CC Docket No. 96-45, Memorandum Opinion and Order, DA
00-2896, 117 (released December 26, 2000).
DWT 19345277v 1 0048172-000324 17
these additional customers with an affordable alternative to traditional telecommunications
service.
The wireless consumer in Idaho has taken advantage of heavy market penetration.
Approximately 1.25 million Idaho residents are wireless subscribers. 67 According to the Centers
for Disease Control, 31.7% of adults in Idaho were living in wireless-only households in June of
2010.68 And prices for wireless services continue to fall dramatically. Text messaging prices
declined from $0.011 per message in 2008 to $0.009 in 2009.69 Average smartphone prices net
of carrier subsidies decreased from $220 in 4Q06 to $120 in 4Q09, with average prices for all
handsets after discounts falling from $85 in 4Q06 to $50 in 4Q09.7° Although average monthly
data traffic per subscriber grew 78% between 2008 and 2009, wireless data service ARPU rose
only 22% in that period.7 ' Indeed, as the most recent data from the U.S. Bureau of Labor
Statistics' Wireless Price Index shows, as of July 2011 the price of wireless service has fallen
some 40% since December 1997 72 Despite continuing economic difficulties, incremental capital
investment increased from $20.2 billion in 2008 to $20.4 billion in 2009. Wireless accounts for
more than 30% of all telecommunications investment, nearly a quarter of all information and
communications technology investment, and two percent of total investment in the U.S.
economy. 73
67 See Local Telephone Competition: Status as of December 31, 2010, tbls 8,9,17 (FCC, Industry Analysis & Technical Division,
Wireline Competition Bureau, Oct. 201 l)[available at
http://transition.fcc.gov/Daily_Releases/Daily_Business/2011/db 1 OO7JDOC-3 1 0264A1 .pdfj.
68 See Wireless Substitution: State-level Estimates From the National Health Interview Survey, January-June 2010. U.S. Centers
for Disease Control and Prevention, Division of Health Interview Statistics, National Center for Health Statistics. Table 1 (April
20, 2011), available at http://www.cdc.gov/nchs/datalnhsr/nhsr039.pdf.
69Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile
Services, 2011 FCC LEXIS 2636,$ 193 (2011) (FCC Report).
701d. 1334.
7 Id. 11186, 203.
72 See Bureau of Labor Statistics Consumer Price Index — All Urban Consumers, Series ID CUUR0000SEED03, available at
http://data.bls.gov/pdq/querytool.jsp?survey=cu.
73 Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile
Services, 2011 FCC LEXIS 2636, (2011) (FCC Report).
DWT 19345277v 1 0048172-000324 18
T-Mobile' s designation will not impact the federal universal service fund, since the FCC
has set aside up to $300 million for the Mobility Fund Phase I auction.
T-Mobile's conditional designation as an ETC for census blocks outside its existing ETC
Area will enable the Company to make available universal service offerings to consumers
throughout its designated service area in Idaho, which, for some consumers, T-Mobile's service
offerings will be their primary means of communications. Conditionally designating T-Mobile
as an ETC for census blocks outside its existing ETC Area will enable the Company to
participate in the upcoming Phase I Mobility Fund auction on September 27, 2012, to expand its
coverage and extend its services to consumers in additional rural areas. Conditionally,
designating T-Mobile as an ETC for census blocks outside its existing ETC Area will also help
to secure, and potentially enhance, the contributions T-Mobile makes to Idaho's economy.
I/I
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VI. CONCLUSION
WHEREFORE, for the reasons stated above, T-Mobile respectfully requests that the
Commission expeditiously: (i) designate T-Mobile as an ETC for eligibility for federal universal
service funding conditioned upon T-Mobile winning support from the Mobility Fund Phase I
auction, such that T-Mobile shall be deemed an ETC outside its existing ETC Area only in the
areas in which it is awarded Mobility Fund support; (ii) send the appropriate notice of the Order
designating T-Mobile as an ETC for census blocks outside its existing ETC Area to the FCC and
the Universal Service Administrative Company; and (iii) order such other relief as may be
appropriate.
Dated this 10th day of April, 2012.
Respectfully submitted,
T-Mobile West Corporation
By:___
Mark 43. Trinchero, OSB #88322
DAVIS WRIGHT TREMAINE LLP
1300 SW Fifth Avenue, Suite 2400
Portland, Oregon 97201
Telephone: [phone]
Facsimile: 503-778-5299
Email: [e-mail]
Teri Ohta
Principal Corporate Counsel
T-Mobile USA, Inc.
12920 SE 38th Street
Bellevue, Washington 98006
425-383-5532
DWT 19345277v1 0048172-000324 20
alA
The Wireless Association EXHIBIT 1 Expanding the Wireless Frontier
Steve Largent
Pres,nr/CFO
October 7, 2011
Ms. Kelsey Joyce
Director of Legal Affairs
Marketing
T-Mobile USA, Inc.
12920 SE 38ih Street
Bellevue, WA 98006
Dear Kelsey:
Congratulations! This letter is to notify you that T-Mobile USA ("T-Mobile") has
completed the recertification process for the CTIA Consumer Code for Wireless Service
("Voluntary Consumer Code") for the period January 1, 2011 - December 31, 2011, and is
deemed compliant with the principles, disclosures and practices set forth in the Voluntary
Consumer Code. Accordingly, T-Mobile is authorized to use and display the CTIA Seal of
Wireless Quality/Consumer Information, subject to the terms and conditions set forth in the
attached License Agreement.
Please ensure that the relevant employees ofT-Mobile review the License Agreement
before using the Seal. Use of the Seal constitutes acceptance of these terms and conditions.
Upon request, we will provide two specimens (color and black/white) of the Seal for T-Mobile's
use on its website or collateral materials. If you should have any questions concerning the
recertification process or use of the Seal, please contact Andrea Williams, CTIA's Vice President
of Law and Assistant General Counsel, at [phone] or [e-mail] .
CTIA commends T-Mobile for its ongoing leadership and participation in the CTIA
Voluntary Consumer Code, and we look forward to continuing to work with T-Mobile on this
important industry initiative.
Sincerely,
/Steve Largent
Attachment
cc: Philipp Humm
Dave Miller
1400 16th Street, NW Suite 600 Washington DC 20036 Direct 202 7363204 Fax [phone] www.ctia.org