20210503Comments.pdf

MATT HI]NTER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10655
' .-') til I l. ?i-.,.--: r r., .1.ttl'Lu
-; '--' , tt i\
Street Address for Express Mail:
1 1331 W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE, ID 837I4
Attorney for the Commission Staff
BBFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TORCH WIRELESS'S
APPLICATION FOR DESIGNATION AS AN
ELIGIBLE TELECOMMUNICATIONS
CARRIER IN IDAHO
CASE NO. TOR.T.2I-01
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Matt Hunter, Deputy Attorney General, submits the following comments.
BACKGROUND
On March 15,2021, Torch Wireless ('oTorch" or "Company") applied to the Commission
for an Order designating it as an eligible telecommunications carrier ("ETC") for the purpose of
providing Lifeline services to quali$ing customers in the State of Idaho. Application at l.
Torch also requested to participate in the Idaho Telecommunications Service Assistance Program
("ITSAP"). Id. The Lifeline program is intended to provide more affordable
telecommunications service benefits to eligible low-income customers through the federal
Universal Service Fund ("USF") and ITSAP. Idaho participates in the residential Lifeline
program pursuant to ldaho Code $ 56-901 . See Order No. 2171 3.
)
)
)
)
)
)
)
1STAFF COMMENTS MAY 3,2021
The Application
The Company is a Wyoming corporation authorized to do business in Idaho as a foreign
corporation. See Application, Exhibit A. Torch provides prepaid and Lifeline wireless
telecommunications services, and its network is integrated with Sprint Spectrum, L.P., Verizon
Wireless and T-Mobile USA, Inc. Id. at 4. Torch states that it will operate throughout Idaho,
including Tribal lands. Id. at2. Torch asserts that it meets the requirements of Section 2la(e)(l)
of the federal Telecommunications Act to be designated an ETC. Id. at 6-10.
Torch asserts it is entitled to ETC designation under 47 U.S.C. $ 2la(e)(2), which
authorizes state commissions to designate wireless ETCs. Id. at 6. The Company asserts that it:
(1) is a common carrier; (2) commits and is able to provide services supported by federal
universal support mechanisms; (3) will advertise the availability of supported services in a
manner reasonably designed to reach those likely to qualiS; (4) is committed to consumer
protection and service quality standards; (5) is capable of remaining functional in emergency
situations; (6) has the financial and technical capability to provide Lifeline service; and (7) will
comply with requirements imposed by this Commission. Id. at 6-10.
The Company further states that granting it ETC designation "will further the public
interest by providing Idaho consumers, especially low-income consumers, with low prices and
high-quality services." Id. at 10. The Company notes, "Many low-income Consumers have yet
to reap the full benefits of the intensely competitive wireless market, whether because of
economic or financial constraints, employment impacts, or poor credit history." 1d.
The Company states it seeks to be a Lifeline-only ETC, and "is not seeking nor
requesting high-cost support. " Id. at2. The Company also seeks Commission authorization to
participate in and receive reimbursement from the Idaho Telecommunications Service Assistance
Program. Id.
The Company asserts it meets all federal and state requirements for designation as an
ETC and argues that designating the Company as an ETC is in the public interest. Id. at 6-11.
2STAFF COMMENTS MAY 3,2027
Torch's Lifeline Service Offerings
Torch intends to offer three Idaho service plans: Tribal Lifeline, Non-Tribal Lifeline, and
Non-Lifeline. See Application, Exhibit C. Torch allows customers to purchase additional
minutes. Id. Torch' s plans include nationwide calling, caller ID, call waiting, call forwarding,
3-way calling and voicemail. Id. Torch does not appear to provide free handsets but does have a
Bring Your Own Device option. Id.
STAFF ANALYSIS
Staff has reviewed Torch's Application. Staff has conducted an analysis of the
Company's fulfillment of the federal Telecommunications Act of 1996,the FCC's regulations,
and Commission Order No. 29841. Specific state and federal requirements for ETC designation
are discussed in more detail as follows.
Public Interest Considerations
Staff typically applies a two-prong test when analyzing whether a Company's ETC
Application is in the public interest. First, Staff determines whether the Company contributes to
Idaho funds. Second, Staff analyzes whether the Company's Application raises'ocream
skimming" concerns.
In the Company's Application, Torch confirmed that upon approval as an ETC in Idaho,
the Company would participate in the appropriate Idaho programs, specifically the ITSAP
program. See Application at 10. The Company requests ETC designation statewide. Id. at2.
Therefore, no cream skimming analysis is required. Thus, Staff believes Torch satisfies the
public interest considerations.
Network Improvement Plan
The Commission requires a two-year network improvement and progress report from all
ETCs receiving high-cost support. See Order No. 29841 at 18. However, the Commission
determined in Cricket Communications, Inc.'s ETC Application in Case No. CRI-T-l l-01 that a
two-year network improvement plan was not applicable to Lifeline-only ETCs. Order No.
3250t.
JSTAFF COMMENTS MAY 3,202t
In the USF/ICC Transformation Order, the FCC amended 47 C.F.R. 5 54.202 to clarifu
that a common carrier seeking designation as a Lifeline-only ETC is not required to submit a
five-year network improvement plan as part of its application for designation as an ETC.
Lifeline-only ETCs do not receive high-cost funds to improve or extend networks, therefore the
FCC "saw little purpose in requiring such plans as part of the ETC designation process."l
Torch's Application seeks only low-income USF support as a Lifeline-only ETC. Thus, Staff
agrees that a network improvement plan is not a requirement for Torch's ETC Application.
Ability to Remain Functional in Emergencies
The Company states that it has the ability to remain functional in emergency situations in
accordance with Commission Order 29841 and 47 C.F.R, $ 5a.202(a)(2). Application at 9.
Torch asserts that because it is reselling wireless services, the Company is able to provide the
same ability to remain functional in emergency situations as the underlying carriers provide to its
own customers. Id. Namely, the Company asserts that the underlying carrier networks "have
access to a reasonable amount of back-up power to ensure functionality without an external
power source, are able to reroute traffic around damaged facilities, and are capable of managing
traffic spikes resulting from emergency situations." Id. at9. Staff agrees Torch satisfies this
requirement.
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix I of Order No.
29841and are discussed in more detail below.
1. Common Carrier Status. Torch is a common carrier as defined in U.S.C. Title 47 . Id.
at7.
2. Provide Universal Services. Torch will provide all required services and
functionalities as set forth in Section 54.101(a) of the FCC's Rules (47 C.F.R. $ 5a.101(a)). 1d.
at 7 -8.
rSee Lifeline and Link up Reform and Modernization et al, WC Dkt No. 11-41 et al. Report and Order and Further
Notice of Proposed Rulemaking, FCC l2- I I at para 386.
4STAFF COMMENTS MAY 3,2021
3. Advertising. Torch will advertise the availability and rates for its services described
in the Application through media of general distribution as required by 47 U.S.C. $ 2la(e)(l)(B).
Id. at8.
4. A Commitment to Consumer Protection and Service. Torch commits to satis$ing all
such applicable state and federal requirements related to consumer protection and service quality
standards, including compliance with the Cellular Telecommunications and Intemet
Association's Consumer Code for Wireless Service as required by 47 C.F.R. $ 5a.202(a)(3). Id.
at 8.
5. Description of the Local Usage Plan. Torch will offer a Lifeline service plan. Exhibit
C. Furthermore, the Company will meet or exceed the minimum service standards set forth in 47
C.F.R. $ 54.408, including as such standards are updated going forward. Id. at 4-5.
STAFF RECOMMENDATION
Based on its review of the Company's Application, Staff believes that the Application
demonstrates the Company's commitment to fulfill the obligations of a Lifeline-only ETC in
Idaho. The Company will provide all universal services supported by the federal USF
throughout its service territory. It has addressed the public interest questions that accompany an
ETC Application. Torch will provide multiple pricing plans, which will increase consumer
choice for low-income telephone service in Idaho. Currently, the Commission has granted seven
wireless ETCs access to participate in the State's ITSAP program, so Staff supports allowing
Torch to participate in the ITSAP program. Thus, Staff believes Torch's Application for
designation as an ETC is in the public interest and should be approved for the entire state.
Respectfully submitted this 3 rd day of May 2021.
Matt Hunter
Deputy Attorney General
Technical Staff: Daniel Klein
5STAFF COMMENTS MAY 3,2021
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 3RD DAY OF MAY 2021, SERVED
THE FOREGOING COMMENTS OF TIm COMMTSSION STAFF, IN CASE NO.
TOR-T.2I-OI, BY E.MAILING A COPY THEREOF, TO THE FOLLOWING:
JORGE E PEREA CEO
TORCH WIRELESS
4320 DEERWOOD LAKE PKWY
srE l0l-ls8
JACKSONVILLE FL 32216
E-MAIL: [e-mail]
SECRETAR
CERTIFICATE OF SERVICE