20130508Application.pdf

m
N
4M
GIVENS PURSLEYLLP
W. Hugh O'Riordan, I.L.M.
Angela M. Reed
Mark R. Scoville
Robert B. White
Gary G. AJlen Donald E. Knickrehm
Peter G. Barton Debora K Kristenser,
Christopher J. Beeson Anne C. Kunkel
Clint R. Bounder Michael P. Lawrence
Erik J. Bolinder Franklin G. Lee
Preston N. Carter David R. Lombardi
Jeremy C. Chou Emily L. McClure
William C. Cole Kenneth R. McClure
Michael C. Creamer Kelly Greene McConnell
Amber N. Dina Alex P. McLaughlin
Elizabeth M. Donick Christopher H. Meyer
Thomas E. Dvorak L Edward Miller
Jeffrey C. Faraday Patrick J. Miller
Martin C. Hendrickson Judson B. Montgomery
Steven J. Hippler Deborah E. Nelson
May 8, 2013
TA-T 13-Q
LAW OFFICES
601 W. Bannock Street
P0 Box 2720, Boise, Idaho 83701
TELEPHONE: [phone]
FACSIMILE: 208 388-1300
WEBSITE: www.givenspursley.com
Michael C. Creamer
Direct Dial: [phone]
E-mail: MCC©givenspursley.com
Jean Jewell - Secretary
Idaho Public Utilities Commission
472 W Washington St
Boise ID 83702
Retired:
Kenneth L. Pursley
James A. McClure (1924-2011)
Raymond D. Givens (1917-2008)
Re: Application of TerraCom Inc., for ETC Designation
Dear Jean:
Please find enclosed for filing with the Idaho Public Utilities Commission the
Application of TerraCom, Inc. for ETC Dedication dated May 8, 2013. I am enclosing
seven copies for the Commission and one additional copy to be conformed and provided to
our runner.
Should you have any questions concerning the attached Application, please contact
Michael Creamer at 388-1247. Thank you for your assistance in this matter.
Sincere3 '
I
I/ri)
Jill St Stensc
Assis1Içt to
:j ss
1772731_1 [11884-3]
--*
Michael C.Creamer [ISB No.4030]
GIVENSPURSLEYLLP Z1H.Y -F.i L:00
601 West Bannock Street .,
P0 Box 2720 uTIl ‘z:cJ
Boise,Idaho 83701-2720c’Office:[phone]
Fax:(20$)388-1300
[e-mail]
Attorneys for TerraCorn,Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISISON
IN THE MATTER OF THE APPLICATION )
OF TERRACOM,INC.FOR DESIGNATION )
AS AN ELIGIBLE TELECOMMUNICATIONS )CASE NO.TRA-T-1301
CARRIER ON A WIRELESS BASIS (LOW )
INCOME ONLY))
APPLICATION FOR DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER ON A WIRELESS BASIS
TerraCom,Inc.(“TerraCorn”or the “Company”)through its attorneys Givens Pursley
LLP,and,pursuant to the Federal Communications Act of 1934,as amended (the “1996 Act”),
47 U.S.C.§214(e)the Federal Communications Commission (“FCC”)Universal Service
Regulations,47 C.F.R.§54.101 et seq.(the “FCC Rules”)and Idaho Public Utilities
Commission (“Commission”)Eligible Telecommunications Carrier (“ETC”)requirements ,
hereby requests that the Commission designate TerraCom as an ETC in the State of Idaho (the
In the Matter of the Application of WWC Holding Co.,Inc.DBA CellularOne Seeking Designation as an
Eligible Telecommunications Carrier that May Receive federal Universal Service Support,Case No.WST-T-05-1,
Order No.29841,App.§A.4 (Aug.4,2005)(the “Idaho ETC Order”).
Application of TerraCom,Inc.for ETC Designation -1
1771493_3 111884-21
“Service Area”)for the purpose of receiving federal universal service support for wireless
services that will be offered to customers on a prepaid basis.At this time TerraCom does not
seek designation as an ETC on a wireline basis.A list of each wire center for which TerraCom is
requesting ETC status in the State of Idaho is attached hereto as Exhibit “A.”TerraCom will
collect and remit all applicable 911 and ITSAP surcharges.The Commission’s grant of this
request for wireless ETC designation would be consistent with the Commission’s designation of
other carriers as wireless ETCs,including,but not limited to,Tracfone Wireless,Inc.,Budget
Prepay and Cricket Communications,Inc.,all of whom received ETC designation for rural and
urban areas.TerraCom also meets the applicable requirements of Idaho law,including those
required by the Idaho ETC Order.
In further support of this Application,TerraCom states as follows:
1.TerraCom is an Oklahoma corporation with its principal offices located at 401 E
Memorial Road,Suite 400,Oklahoma City,OK 73114.TerraCom is authorized to transact
business in Idaho.TerraCom’s Articles of Incorporation,Certificates of Authority to Transact
Business in Idaho and Good Standing are attached hereto as Exhibit “B”and Exhibit “C,”
respectively.
2.Correspondence or communications pertaining to this Application should be
directed to TerraCom’s attorney of record:
Michael C.Creamer
Givens Pursley LLP
601 W.Bannock St.
Boise,ID 83702
Direct:208-388-1247
Main:208-388-1200
Fax:[phone]
Email:mccgivenspurs1ey.com
Application of TerraCom,Inc.for ETC Designation -2
1771493_3 111884-21
3.Questions concerning the ongoing operations of TerraCom following certification
should be directed to:
Dale R.Schmick
TerraCom,Inc.
401 E Memorial Road
Suite 400
Oklahoma City,OK 73114
Telephone:[phone]
Email:[e-mail]
4.As a result of the work and cooperation of federal and state regulators,the FCC
has adopted a number of cost recovery policies and mechanisms designed to promote and
maintain universal service (the “Universal Service Fund”or “USF”).The Universal Service
Fund was established,in part,to provide support to qualifying low-income communications end-
users such as those serviced by TerraCom.Mechanisms were also established in an effort to
moderate the amount of costs to be recovered through basic,recurring charges to low-income
users,thereby assisting efforts to maintain reasonable basic rate levels.The FCC’s Rules related
to Lifeline and Link Up were modified most recently in the FCC’s Report and Order and
further Notice ofProposed Rulemaking in FCC 11-161;26 FCC Rcd 17663;2011 WL 5844975
(rel’d November 18,2011)(“U$F/JCC Transformation Order”)and in In re Lifeline and Link
Up Reform and Modernization,2012 WL 387742 (rel’d February 6,2012)(“Lifeline/Link Up
Reform Order”),as clarified and modified in subsequent FCC orders.
5.Since January 1,1998,a competitive local exchange carrier qualifies to receive
the universal service support set forth above only if it has been designated by a state regulatory
agency as an ETC.The Universal Service Fund therefore represents significant additional
resources which could greatly benefit the consumers and businesses of the State of Idaho upon
the designation of TerraCom as an ETC.
Application of TerraCom,Inc.for ETC Designation -3
1771493_3 111884-21
6.TerraCom requests that the Commission,by order,designate the company as an
ETC throughout its requested Service Area.As described below,TerraCom seeks ETC status on
a wireless basis beginning as soon as possible upon approval by the Commission.TerraCom is
not seeking ETC designation on a wireline basis.
7.Pursuant to this Application,TerraCom requests ETC status solely for the purpose
of providing the services supported by,and participating in the Low Income Programs of,the
Universal Service Fund.TerraCom does not request ETC status for the purpose of participating
in any High Cost programs of the Universal Service fund.Such action is entirely consistent
with both the 1996 Act and the public interest ofthe State of Idaho.
8.TerraCom will provide consumer-oriented wireless services throughout its
requested Service Area in the State of Idaho.TerraCom’s communications services include the
provision of wireless services through a combination of its own facilities and resold services.As
an ETC,TerraCom will also be permitted to participate in the Low Income cost recovery
mechanisms established by the FCC.
9.Over the past nine years TerraCom has actively reached out to consumers in
underserved markets and has been an ETC since 2004.TerraCom is currently a wireline ETC in
Oklahoma and Texas,as well as a wireless ETC in Maryland,Arkansas,Oklahoma,Texas,West
Virginia,Nevada,Indiana,Arizona,Puerto Rico,the Virgin Islands,Colorado,Iowa,Louisiana,
Minnesota,Wisconsin and Nebraska.ETC designation in Idaho will enhance TerraCom’s ability
to provide service to low income consumers within the Service Area,and will bring unique
benefits to Idaho consumers.
10.TerraCom has a long history of investment in its facilities,as well as the
neighborhoods it serves.TerraCom has and will continue this investment and will provide the
Application of TerraCom,Inc.for ETC Designation -4
1771493_3 111884-21
supported services using a combination of its own facilities and resale of other carriers’services.
During the past nine years TerraCom has also invested in advertising the availability of those
services in the markets served by it using media of general distribution.TerraCom is committed
to continue this investment,both in the markets it currently serves,and in Idaho,through locally
oriented product and service distribution,including such face-to-face methods as door-to-door
contact with consumers,and the use of neighborhood sales representatives.Under TerraCom’s
proposed low income wireless offerings,each eligible wireless customer will receive a new or
refurbished basic voice,texting and E911 compatible handset at no cost to the subscriber or have
the option of purchasing a E91 1 compatible higher end model if they choose to do so.Each
handset comes with a one-year warranty.Should a customer require replacement,he or she will
be able to call a TerraCom toll-free help line,contact a local sales representative,or visit a
TerraCom-authorized retail outlet and receive assistance.
11.The 1996 Act,47 U.S.C.214(e)(6),generally requires that an ETC provide
supported services “either using its own facilities or a combination of its own facilities and resale
of another carrier’s services (including the services offered by another eligible
telecommunications carrier).”47 U.S.C.214(e)(1)(A).By virtue of the USf/ICC
Transformation Order,the single supported service is now “voice telephony service.”2
TerraCom will provide voice telephony service as defined in amended 47 C.F.R.§54.101(a).In
2 U$f/ICC Transformation Order,¶62.“Voice telephony services”must provide:(1)voice grade access to the
public switched network or its functional equivalent;(ii)minutes of use for local service provided at no additional
charge to end users;(iii)access to the emergency services provided by local government or other public safety
organizations,such as 911 and enhanced 911,to the extent the local government in an eligible carrier’s service area
has implemented 911 or enhanced 911 systems;and (iv)toll limitation services to quali1’ing low-income
consumers.47 C.F.R.§54.101(a).
Application of TerraCom,Inc.for ETC Designation -5
1771493_3 111884-21
the Lifeline/Link Up Reform Order,the FCC decided to forbear,on its own motion,from
applying the 47 U.S.C.214(e)(1)(A)“own facilities”requirement:
[T]he commission will forbear from the “own-facilities”requirement contained in
section 214(e)(1)(A)for carriers that are,or seek to become,Lifeline-only ETcs,
subject to the following conditions:(1)the carrier must comply with certain 911
requirements,as explained below;and (2)the carrier must file,and the Bureau must
approve,a compliance plan providing specific information regarding the carrier’s
service offerings and outlining the measures the carrier will take to implement the
obligations contained in this Order as well as further safeguards against waste,fraud
and abuse the Bureau may deem necessary.[Id.,¶368 (footnote omitted).]
As a result of Lifeline/Link Up Reform Order,carriers requesting ETC designation from the
Idaho Commission,and whose compliance plan the FCC has approved,are not required to meet
the “own facilities”language of 47 U.S.C.214(e)(1)(A).While TerraCom meets the minimum
facilities requirements,out of an abundance of caution,TerraCom filed its Compliance Plan with
the FCC.TerraCom’s Second Revised Compliance Plan,hereby provided as Exhibit “D”
(along with its associated Exhibits 1-4)was approved by the FCC on May 25th,2012.A copy of
the FCC’s Grant of Compliance is hereby provided as Exhibit “E.”
As is pertinent under the Communications Act of 1934,as amended by the
Telecommunications Act of 1996 and as this status recently became relevant for purposes of
new reporting requirements imposed by the FCC in its Lifeline Reform Order,4 TerraCom hereby
informs the Commission that YourTel America,Inc.(“YourTel”)is an affiliate of TerraCom,
Pub.LA.No.104-104,110 Stat.56 (1996).47 U.S.C.§1,etseq.
Federal-State Joint Commission on Universal Service;Advancing Broadband Availability Through Digital
Literacy Training,wc Docket Nos.11-42,03-109,CC Docket No.96-45,wc Docket No.12-23,Report and Order
and Further Notice of Proposed Rulemaking,FCC 12-11 (rel.Feb.6,2012)(Lfeline Reform Order).
Application of TerraCom,Inc.for ETC Designation -6
1771493_3 111884-21
Inc.Both TerraCom and YourTel have explained this relationship in the current versions of their
Compliance Plans on file with the FCC.5
Only TerraCom seeks to provide wireless service as an ETC in Idaho.While TerraCom
is the only service provider (between TerraCom and YourTel)with a petition for ETC status in
the State of Idaho,it should be made clear that TerraCom and YourTel have the necessary
systems in place to ensure that neither company will enroll a customer already receiving Lifeline
service from the other.This ability to cross-check customer service records between companies
is company-wide.
As discussed above,for ETC applicants that take advantage of the FCC’s forbearance by
obtaining FCC approval of a compliance plan,the Idaho Commission need require no further
showing regarding facilities ownership.Nevertheless,TerraCom would meet the “own
facilities”requirement of 47 U.S.C.214(e)(l)(A)even without its FCC Compliance approval.
TerraCom,in its provision of wireless services,obtains services through its contracts with two
commercial mobile radio service (“CMR$”)providers,Sprint Spectrum,LLC and Cellco
Partnership d/b/a Verizon Wireless.Through these arrangements,TerraCom is able to offer all
of the services and functionalities supported by the universal service program,as detailed in
Section 54.101(a)of the FCC Rules6,throughout its requested Service Area.
Designation of TerraCom as an ETC on a wireless basis is in the public interest of the
State of Idaho and its low-income telecommunications end-users.Under the 1996 Act,“[u]pon
See,Third Revised Compliance Plan of TerraCom,Inc.Available at
http://apps.fcc.gov/ecfs/document’view?id=702 1923780
6 See 47 C.F.R.§54.101(a).
Application of TerraCom,Inc.for ETC Designation -7
1771493_3 111884-21
request and consistent with the public interest,convenience and necessity”7 the Commission
shall “designate more than one common carrier as an eligible telecommunications carrier for a
service area designated”8 by the Commission.In doing so,the Commission “shall find that the
designation is in the public interest.”9 The FCC Rules require that an ETC application
demonstrate that designation would be consistent with the public interest.10 Pursuant to this
requirement,TerraCom provides the following information which clearly demonstrates that
TerraCom’s designation as an ETC on a wireless basis is consistent with the public interest
below.
(a)Increased Consumer Choice.The FCC has determined that while
designation of competitive ETCs promotes and benefits consumers by increasing customer
choice,designation must include “an affirmative determination that such designation is in the
public interest regardless of whether the applicant seeks designation in an area served by a rural
or non-rural carrier.”TerraCom is seeking ETC designation on a wireless basis which will
provide an additional valuable alternative to the existing telecommunications services currently
available in these areas and will promote availability and facilitate the provision of advanced
communications services to low-income residents of Idaho.
TerraCom knows from its experience in other markets that there are significant areas
within its proposed ETC Service Area in which its target market,low income subscribers,are
47 C.F.R.§54.20 1(c).
$Id.
Id.
10 C.F.R.§54.202(b).
‘See Federal-State Joint Commission on Universal Service.20 FCC Rcd 6371,¶42 (2005)
Application of TerraCom,Inc.for ETC Designation -8
1771493_3 111884-2]
underserved by wireless and wireline telephone facilities.This is underscored by the fact that
while the latest Universal Service Monitoring report shows an Idaho Lifeline subscribership of
just over 27,000,the latest American Community Survey 5-Year Estimates Census figures for
Idaho show almost 139,000 households with an annual income of less than $25,000.12
Additionally,TerraCom knows from experience that there are pockets of consumers who still do
not have basic communications.TerraCom’s mission is to identify and reach out to these
disparate groups in Idaho as it has done in the other jurisdictions where it provides Lifeline
service,to bring the benefit of communications to these unserved consumers.The mobility of
TerraCom’s prepaid wireless service will assist low income consumers who often are dependent
on public transit or others for their own mobility.Without a wireless connection our customers
typically would not be able to contact transportation sources,friends or family,or have timely
access to emergency services when needed.
The public interest benefits of inclusion of the Company’s wireless service include larger
local calling areas (as compared to traditional wireline carriers),the convenience and security
afforded by mobile telephone service,the opportunity for customers to control cost by receiving
a preset amount of monthly airtime at no charge,the ability to purchase additional usage at
flexible and affordable amounts in the event that included usage has been exhausted,9-1-1
service and,where available,E 9-1-1 service in accordance with current FCC requirements.
The inclusion of toll calling as a part of TerraCom’s wireless offering,along with the fact
that service is provided without a monthly recurring charge,will allow consumers to avoid the
12 http://factfinder2.census.gov/bkmk/table/1 .O/en!ACS/1 1_5YRJDPO3/O400000US 16
Application of TerraCom,Inc.for ETC Designation -9
1771493_3 [11884-21
risk of becoming burdened with large and/or unexpected charges for domestic toll calling and
unexpected overage charges while remaining in touch with friends and family in other parts of
the country.
Designation of the Company as an ETC on a wireless basis will also provide other
carriers serving the same area an incentive to improve their existing networks and service
offerings in order to remain customer focused,which will result in improved consumer services
and will also benefit consumers by allowing TerraCom to offer the services designated for
support at rates that are ‘just,reasonable,and affordable.”3
As provided by the 1996 Act,the availability of basic telecommunications services to
low-income consumers is critical to the provision of public health,safety,and other services.In
addition,the FCC has long acknowledged the benefits to consumers of being able to choose from
a variety of telecommunications providers and the resulting variety of telecommunications
services they This is of particular interest in cases where wireless providers,such as
TerraCom,seek to provide services as alternatives to those of the traditional ILEC.In the
Highland Cellular’5 case,the FCC recognized and affirmed that some households may not have
access to the public switched network as provided by the incumbent local exchange carrier.The
availability of a wireless competitor benefits consumers who routinely rely on alternative
transportation to attend work or school or to accomplish everyday tasks such as shopping or
attending community and social events.The wireless service offered by TerraCom will provide
“See 47 U.S.C.§254(b)(1).
14 See e.g.,Specialized Common Carrier Services,29 FCC 2d 870 (1971).
‘Federal-State Joint Bd.on Universal Serv.,Highland cellular,Inc.,Memorandum Opinion and Order,19
F.C.C.R.6422 (2004).
Application of TerraCom,Inc.for ETC Designation -10
1771493_3 111884-2]
these consumers with a convenient and affordable alternative to traditional telecommunications
service that can be used while at home and away from home.
The Lifeline service offered by TerraCom also provides important benefits that are
especially needed by low-income Idaho residents in these continuing times of economic
uncertainty.Savings accounts,upon which many depend for emergencies and retirement,have
significantly eroded.Since the recession began,millions ofjobs have been lost nationally.16 By
the end of 2012,the number of unemployed persons is just over twelve and half million with the
unemployment rate at 7.9 percent.As of December,2012 Idaho’s unemployment rate stood at
6.6 percent’7,which,while below the national rate,continues to represent a significant group of
unemployed persons.While there have been scattered signs of improvement,it is yet too early to
claim that the economic recovery is behind us,all of which has a significant impact on many
Idaho residents.The availability of a no cost mobile telephone and wireless service will be
critical to the efforts of the unemployed as they search for other employment opportunities.
Without a regular paycheck,wireless telephone seivice becomes a luxury beyond the means of
many of those persons.
TerraCom’s Lifeline programs will thus enable thousands of residents to obtain wireless
service which would otherwise be unavailable to them.The economic circumstances indicate
that low-income individuals,now more than ever,can greatly benefit from the advantages
offered by TerraCom’s Lifeline service,allowing those adversely impacted by the current
Source United States Department ofLabor Bureau of Labor Statistics.
17
Application of TerraCom,Inc.for ETC Designation -11
1771493_3 111884-2]
economy or by job loss to have access to a free wireless service to assist in emergency situations,
facilitate job search efforts,and to maintain contact with family members.
It is also a commonly accepted fact that in today’s market all consumers,including,
qualified Lifeline customers,view the portability and convenience of wireless service not as a
luxury,but as a necessity.Mobile service allows children to reach their parents,wherever they
may be,allows a person seeking employment the ability to be contacted by potential employers,
and provides end users with the ability to contact emergency service providers,regardless of
location.Added together,TerraCom expects these additional advantages to create an atmosphere
that will cause many qualified consumers,at their option,to select the Company’s low income
wireless Lifeline service in lieu of the more traditional wireline or wireless services.
(b)The Unique Advantages of TerraCom’s Service Offerings.As it has in
other markets it serves,TerraCom will continue its business strategy of offering unique,
customer-friendly,flexible and competitively affordable wireless telecommunications service,
which it will make available to qualified consumers who either have no other service alternatives
or who choose a prepaid wireless solution.As stated,TerraCom will constantly challenge the
marketplace with new and innovative offerings designed to meet the needs of our customers.
TerraCom will publicize the availability of Lifeline services in a manner reasonably
designed to reach those likely to qualify for those services.TerraCom has used many mediums
for outreach,including mass media,outreach events,and community and charitable involvement.
Accordingly,more low-income Idaho residents will be made aware of the opportunities afforded
to them under the federal Lifeline program and will be able to take advantage of those
opportunities by subscribing to TerraCom’s service.An example of TerraCom’s planned
Application of TerraCom,Inc.for ETC Designation -12
1771493_3 111884-21
advertising is included hereto as Exhibit “F”.TerraCom’s marketing will comply with
47 C.F.R.§54.405(c)and the Idaho ETC Order.
TerraCom will offer Lifeline service as an ETC in all of its Service Area.
TerraCom is willing to accept carrier of last resort obligations throughout the universal
service areas in which TerraCom is designated as an ETC by the Commission.
TerraCom will provide equal access to long distance carriers,to the extent to which it is
able to do so.
(c)TerraCom’s Lifeline Plan.Lifeline is a component of one of four
separate federal universal service fund mechanisms 18 known as the “low-income support
mechanism”19 and is defined in 47 C.F.R.§54.40 1 as “a non-transferable retail service
offering,”“[f]or which qualifying low-income consumers pay reduced charges as a result of
application of the Lifeline support amount”for “voice telephony service.”With regard to
service standards and monthly usage for wireless pre-paid ETCs,the Lifeline/Link Up Reform
Order found:
While we applaud the work the states have done to require pre-paid ETCs to offer a
minimum set of monthly minutes,we do not find it necessary to impose minimum
federal service standards.To the extent possible,service standards should be
determined by the communications marketplace....While we do not adopt
minimum service requirements for any ETCs offering Lifeline service,we expect all
ETCs to continue to offer low-income subscribers innovative and sufficient service
plans.[Id.,¶50 (emphasis added;footnotes omitted)]
Consistent with the FCC’s findings above,TerraCom submits that the Idaho Commission should
likewise allow minimum service plan standards to be determined by the communications
18 C.f.R.§54.8(a)(1);See “Definitions”at second sentence.
19 C.f.R.§54.8(a)(1);See “Definitions”at first sentence.
Application of TerraCom,Inc.for ETC Designation -13
1771493_3 111884-21
marketplace.The Company will offer a suite of Lifeline plans with a range of voice/text/data
options for both Tribal and Non-Tribal customers.TerraCom’s plans will range from a basic free
voice or text minute plan for both tribal and non-tribal areas to plans that include options for
larger amounts of voice and data options.Additional voice and data ‘top ups”will also be made
available.Plans that will be initially available are set out in TerraCom’s statement of terms and
conditions attached as Exhibit “J”hereto.
The wireless plans also include the following Custom Calling features,consistent with
47 C.F.R.§54.401(b):
(1)Caller ID;
(2)Call Waiting;
(3)Call Forwarding;
(4)3-Way Calling
(5)Voicemail.
Wireless handsets will be delivered at no charge to qualifying customers,service will be
activated,and the requisite number of minutes will be added upon certification of the customer
for Lifeline.
The above-described local usage plans are comparable to those offered by the ILECs in
the Service Areas for which TerraCom seeks designation.In the FCC’s March 17th,2005
Report and Order,the FCC concluded:“we require an ETC applicant to demonstrate that it offers
a local usage plan comparable to the one offered by the incumbent LEC in the service areas for
which the applicant seeks designation.As in past orders,however,we decline to adopt a specific
local usage threshold.”2°
20 Report and Order,In the Matter of federal-Joint Commission on Universal Service,CC Docket No.96,45,
FCC 05-46,para.32 (rel’d March 17,2005).
Application of TerraCom,Inc.for ETC Designation -14
1771493_3 111884-21
For a typical Lifeline customer with average normal usage of 769 minutes per month,the
monthly cost under the Company’s Lifeline Free Plan 250 is $25.95 (769 minutes less 250
included minutes,times $0.05 per minute),inclusive of the Custom Calling features stated above
and no additional charges for domestic long distance calling.TerraCom submits that its local
usage plans are either comparable to or more economic than those offered by the ILECs in
TerraCom’s requested Service Areas for ETC designation in Idaho.
Qwest/Centurylink is advertising several options including a Home Phone Plus Plan that
starts at $35.00 per month for unbundled residential telephone service that included unlimited
local calling,a variety of calling features and long distance calling at $0.05 per minute.Their
Home Phone Unlimited Plan at $45.00 per month includes unlimited local and domestic long
distance in addition to the variety of calling features.Bundling the telephone plans with high-
speed internet starts at $54.95.Activation fees appear to be around $30.00.
TerraCom commits to submit annual reports describing its local usage plan(s)in
accordance with the Idaho ETC Order.
(d)Designation of TerraCom as an ETC Will Benefit Low Income
Consumers in the State of Idaho.Under the FCC Rules and the Idaho ETC Order,an ETC
applicant must demonstrate that it will satisfy applicable consumer protection and service quality
standards21;TerraCom will satisfy all such standards.As required by 47 C.F.R.§54.202(a)(3)
and the Idaho ETC Order,TerraCom is committed to complying with the Cellular
Telecommunications and Internet Association’s (“CTIA’s”)Consumer Code for Wireless
21 C.F.R.§54.202(a)(3).
Application of TerraCom,Inc.for ETC Designation -15
1771493_3 111884-21
Service.In addition,TerraCom commits to reporting information on consumer complaints per
1,000 lines on an annual basis consistent with 47 C.f.R.§54.422(b)(2)and the Idaho ETC order
as well as the number of unfilled service requests,also in compliance with the Idaho ETC Order.
TerraCom in general commits to satisfying all such applicable state and federal requirements
related to consumer protection and service quality standards.
Under the FCC Rules and the Idaho ETC Order,an ETC applicant must demonstrate its
ability to remain functional in emergency situations22.Since TerraCom is providing service to its
customers through the use of facilities obtained from other carriers,this arrangement allows
TerraCom to provide to its customers the same ability to remain functional in emergency
situations as currently provided by the carriers to their own customers,including access to a
reasonable amount of back-up power to ensure functionality without an external power source,
rerouting of traffic around damaged facilities,and the capability of managing traffic spikes
resulting from emergency situations.Facilities owned by TerraCom are collocated in a Tier 1
carrier’s switching center,which is capable of remaining fully functional with both generator and
battery back-up.
In addition,designation of TerraCom as an ETC on a wireless basis will make Lifeline
discounts available to many more Idaho residents.This provision of Lifeline discounts is
particularly valuable to low-income customers in the wireless field where,to TerraCom’s
knowledge,there are a limited number of wireless providers offering USF supported service and
even fewer offering the same with absolutely no monthly recurring charge to the end-user.
22 C.F.R.§54.202(a)(2).
Application of TerraCom,Inc.for ETC Designation -16
1771493_3 (11884-21
Furthermore,in keeping with TerraCom’s long history,it will continue to adjust its offering to
benefit Idaho consumers by presenting new and unique plans as TerraCom expands and invests
in Idaho.As such,the service for which TerraCom seeks ETC status is unique;TerraCom will
not only enter the market,it will lead the market.
Inclusion of TerraCom wireless service will serve the public interest by increasing
participation of qualified consumers in the Lifeline program,thereby contributing to an overall
increase in the number of Idaho residents receiving Lifeline and an increase to the amount of
federal USF dollars benefiting Idaho residents.
finally,inclusion of TerraCom wireless service will serve the public interest by
furthering the extensive role that TerraCom believes it will play in the provision of
communications service to low-income consumers,transient users,and other consumers who,
due to the restrictive credit criteria,deposit requirements,and long-term commitments of
traditional service providers,are off network and,without any viable alternative,are likely to
remain so.
(e)Designation of TerraCom on a Wireless Basis Will Impose a
Negligible Burden on the USF.TerraCom reiterates that it is applying for ETC designation
solely for the purpose to provide Lifeline discounts to qualified low-income consumers and to
seek reimbursement for the same and will not seek or accept High Cost support.Since Lifeline
support is designed to reduce the monthly cost of telecommunication services for eligible
consumers,is distributed on a per-customer basis,and is directly reflected in the price that the
eligible customer pays,it is assured that all support received by the carrier is used to provide
Lifeline services to consumers,thus promoting Lifeline and the availability of telephone service
to low-income users,which is clearly in the public interest.In addition,designation of the
Application of TerraCom,Inc.for ETC Designation -17
1771493_3 111884-21
Company as an ETC will not pose any adverse effect in the growth in the high cost portions of
the USf,nor will it create or contribute to an erosion of high cost funding from any rural or non-
rural telephone company.
The FCC reaffirmed this position when it stated that “the potential growth of the fund
associated with high-cost support distributed to competitive ETCs”is not relevant to carriers
seeking support associated with the low-income program.23 Accordingly,total low-income
support for 2011 accounted for only 21.6 percent of the total distribution of the USF,with high-
cost accounting for over 49 percent of the total.24
The FCC also recognized that the total effect of additional low-income-only ETC
designations would have a minimal impact on the fund when it stated that “any increase in the
size of the fund would be minimal and would be outweighed by the benefit of increasing eligible
participation in the Lifeline and Link-Up programs,furthering the statutory goal of providing
access to low-income consumers.”25
It is also vital to recognize that in the case of Lifeline support,an ETC receives Federal
USf support only for the customers it obtains and,by virtue of the Ltfeline/Link Up Reform
Order,26 a single subscription per household.In the scenario where a competitive ETC obtains a
Lifeline customer from another ETC,only the “capturing”ETC provides Lifeline discounts and
as a result,only the “capturing”ETC receives support reimbursement.
23 Petition of TracFone Wireless,Inc.for Forbearance from 47 U.S.C.§214(e)(1)(A)and 47 C.F.R.§54.201(1),
cc Docket No.96-45,Order,20 FCC Rcd 15095 (2005)(Tracfone Forbearance Order)at ¶17.
24 http://www.usac.org/about!aboutluniversal-service/fast-facts.aspx
25 TracFone Forbearance Order,at ¶17.
26 Lfeline/Linkup Reform Order,¶69.
Application of TerraCom,Inc.for ETC Designation -1$
1771493_3 111884-21
In addition,all providers are required to contribute a portion of the interstate revenues
received from their customers to the Federal Universal Service fund.In accordance with current
federal regulations,TerraCom will make contributions based on that portion of its revenue that is
determined to be interstate.As such,approving TerraCom as an ETC could be expected to
actually create contributions to the FUSF that previously did not exist,since in TerraCom’s
experience in other markets,its customers traditionally do not have telephone service at the time
they sign up for service with TerraCom.
(1)TerraCom Has Internal Controls in Place to Prevent Subscribers
from Receiving More Than One Lifeline Discount,and Internal Policies in Place to Handle
Inactive Accounts.Consistent with federal requirements,TerraCom requires customers to
certify at the time of service activation and annually thereafter that they will comply with
Appendix C:Certification Requirements for Lifeline Subscribers,included on pages 240-242 of
the FCC’s recent Lifeline/Link Up Reform Order.Said Appendix is attached as Exhibit “G.”A
certification form specific to the State of Idaho is attached as Exhibit “H.”Verification of
continued eligibility is accomplished on a yearly basis in accordance with federal and
state-specific procedures.TerraCom actively worked on the federal level to advance a national
database to prevent more than one discount.Until the new FCC-approved National Lifeline
Accountability Database is operational,TerraCom believes that its controls represent best
practices available today.
12.The Lifeline/Link Up Reform Order (J 387)amended §54.201 and 54.202 to
require a carrier seeking designation as a Lifeline-only ETC to demonstrate that it is financially
and technically capable of providing the supported Lifeline service in compliance with all of the
low-income program rules.In support of this,TerraCom would like to direct the Commission’s
Application of TerraCom,Inc.for ETC Designation -19
1771493_3 111884-21
attention to Exhibit 4 to TerraCom’s Compliance Plan;a declaration submitted by TerraCom
with its FCC Compliance Plan,which directly speaks to this requirement.
13.In order to be designated as an ETC,the FCC Rules require that carriers offer the
list of services supported by the federal universal service mechanisms.Although no longer
strictly required following the USf/ICC Transformation Order ‘s establishment of “voice
telephony service”as the sole supported service,TerraCom will continue to offer the following
services:
a)Voice grade access to the public switched network;
b)Access to free-of-charge “local usage”defined as an amount of minutes of use of
exchange service;
c)Dual tone multi-frequency signaling or its functional equivalent;
d)Single-party service or its functional equivalent;
e)Access to emergency services;
f)Access to operator services;
g)Access to interexchange services;
h)Access to directory assistance;and
i)Toll limitations services for qualifying low-income customers.
14.TerraCom will utilize all Federal universal service support for the provision,
maintenance,and upgrading of the supported services.
15.TerraCom attaches as Exhibit “I”the current list of its officers,along with
biographical information for each.
16.Attached hereto as Exhibit “J”are TerraCom’s standard customer terms and
conditions in connection with its wireless service offering.
Application of TerraCom,Inc.for ETC Designation -20
1771493_3 111884-21
17.TerraCom also commits that it will remit directly all applicable 911 charges to the
appropriate Idaho jurisdictions in accordance with the Idaho Emergency Communications Act
Fund.TerraCom’s underlying carriers will route 911 calls for TerraCom customers in the same
manner as they do for its own end user customers.
18.To the extent not otherwise addressed above,TerraCom will comply with the
reforms set forth in the USF/ICC Transformation Order and the Lifeline/Link Up Reform Order,
as clarified and modified in subsequent FCC orders,including (but not limited to):
a.TerraCom certifies that it will comply with the service requirements
applicable to the support that it receives (47 C.F.R.§202(a)(l)(i));
b.TerraCom wireless subscribers who exceed sixty days without any
utilization (defined below),will be de-enrolled from the TerraCom wireless Lifeline
program.According to the Lifeline Reform Order,“Utilization”is defined as an
account being active if the customer “...does at least one of the following:makes a
monthly payment;purchases minutes...to add to an existing pre-paid Lifeline account;
completes an outbound call;answers an incoming call from anyone other than the ETC,
its representative,or agent;or affirmatively responds to a direct contact from the ETC
confirming that he or she wants to continue receiving the Lifeline supported service.”27
Upon de-enrollment for non-usage,the TerraCom wireless subscriber will have up to
thirty days to re-enroll by contacting TerraCom.If a customer does not re-enroll or call
a TerraCom customer service representative within thirty days of the de-enrollment,the
27 para.261.
Application of TerraCom,Inc.for ETC Designation -21
1771493_3 111884-21
phone service will be deactivated and any airtime will be lost.A subscriber must
provide proof of eligibility to re-enroll in the TerraCom wireless Lifeline program.
Additionally,and in accordance with the Lifeline Reform Order,TerraCom will
notify’Lifeline applicants at the time of service initiation about the usage requirements,
and the de-enrollment and deactivation that will result following non-usage in any 60-day
period of time.As is its current practice,TerraCom will not seek or receive USf support
for a qualifying low-income customer until that individual subscriber has used the
supported service to either personally activate the service or complete an outgoing call;
c.Upon having reasonable basis to believe that a Lifeline subscriber no
longer meets the Lifeline eligibility criteria,TerraCom will notify the subscriber of
impending termination in writing and in compliance with 47 C.f.R.§54.405(e)(l);
d.TerraCom will report,on an annual basis,its outages as required by
47 C.F.R.§54.422(b)(l);
e.TerraCom will annually certify its continuing compliance with all
applicable service quality standards and consumer protection rules (47 C.f.R.
§54.422(b)(3));
f.TerraCom will annually certify its continued ability to remain functional
in emergency situations (47 C.F.R.§54.422(b)(4));and
g.TerraCom will annually provide information describing the terms and
conditions of any voice telephony service plans offered to Lifeline subscribers,
including (1)the number of minutes provided,(ii)additional charges,if any,for toll
calls,and (iii)rates for each plan (47 C.f.R.§54.422(b)(5)).
Application of TerraCom,Inc.for ETC Designation -22
1771493_3 111884-21
Please note that because TerraCom is seeking ETC designation only to provide low income
support services,submission of a five-year plan is not required under 47 C.F.R.
§54.202(a)(1)(ii).TerraCom also respectfully requests that the Commission find that the two-
year service improvement plan in the Idaho ETC Order be found inapplicable to TerraCom or
waive the requirements.
19.TerraCom also commits that it will remit directly all applicable ITSAP surcharges
to the Idaho Telecommunications Service Assistance Program.
20.TerraCom has reviewed,and will comply with all applicable requirements of the
Idaho Commission’s Telephone Customer Relations Rules,IDAPA 31.41.01 et seq.
21.As required by the Idaho ETC Order,TerraCom has,contemporaneously with the
filing of this Application,provided a copy of this Application to affected tribal government or
tribal regulatory authority,addressed as follows:
Chief James Allan,Chairman
Tribal Council
Coeur d’Alene Tribe
850 A Street
P.0.Box 408
Plummer,ID 83851
Cc:IT Director,Valerie Fast Horse
Nathan Small,Chairman
Fort Hall Business Council
Shoshone-Bannock Tribes
P.O.306
ft.Hall,ID 83203
Joe Durglo,Chairman
Tribal Council
Confederated Salish &Kootenai Tribes
42487 Complex Blvd.
P0 Box 278
Pablo,Montana 59855
Application of TerraCom,Inc.for ETC Designation -23
1771493_3 111884-21
Silas C.Whitman,Chairman
Nez Perce Tribal Executive Committee
P.O.Box 305
Lapwai,ID $3540
CONCLUSION
Having demonstrated that TerraCom satisfies the conditions necessary for designation as
an ETC in Idaho,including the reforms set forth in the USF/ICC Transformation Order and the
Lifeline/Link Up Reform Order,and having shown that the public and universal service interests
of the telecommunications consumers of the State of Idaho will be properly served,TerraCom
respectfully requests that the Commission designate TerraCom,Inc.as an ETC for the provision
of low income support on a wireless basis throughout TerraCom’s requested Service Area.
DATED this 8th day of May,2013.
GIVENS PURSLEY LP
ichael C.Creamer
Attorneysfor TerraCom,Inc.
Application of TerraCom,Inc.for ETC Designation -24
1771493_3 111884-2]
EXHIBITS
Exhibit A -Wire Centers
Exhibit B -Articles of Incorporation and Certificates -Oklahoma
Exhibit C -Idaho Secretary of State Certificates
Exhibit D -TerraCom Second Revised Compliance Plan
Exhibit E -FCC Grant of Compliance Plan
Exhibit F -Sample TerraCom Lifeline Services Advertising
Exhibit G -FCC Lifeline and Link Up Reform Order Appendix C
Exhibit H -Lifeline Certification Form
Exhibit I -TerraCom Officers Biographies
Exhibit I -TerraCom Services,Terms and Conditions
Application of TerraCom,Inc.for ETC Designation -25
1771493_3 [118S4-21
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT A
EXHIBIT A
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEIuCoM
Page 1 of6
TERRACOM SERVICE AREA
RURAL WIRE CENTERS
COMPANY WIRE CENTER
ALBION TELEPHONE CO.DBA AIC COMMUNICATIONS ALBNIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS ALMOIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS ARCOIDXC
ALBION TELEPHONE CO.OBA ATC COMMUNICATIONS ELBAIDXC
ALBION TELEPHONE CO.DBA AIC COMMUNICATIONS RLBKIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS HOWEIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS MALTIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS MCKYIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS MLCYIDXC
ALBION TELEPHONE CO.DBA ATC COMMUNICATIONS MOORIDXC
ALBION TELEPHONE CO.DBA AIC COMMUNICATIONS RFRVIDXC
CAMBRIDGE TELEPHONE COMPANY CMBRIDXC
CAMBRIDGE TELEPHONE COMPANY CNCLIDXC
CAM BRIDGE TELEPHONE COMPANY CPRMIDXC
CAMBRIDGE TELEPHONE COMPANY LWMNIDXC
COLUMBINE TELCO DBA SILVER STAR COMMUNICATIPMS DRGSIDMA
DIRECT COMMUNICATIONS ROCKLAND,INC.ARBNIDXC
DIRECT COMMUNICATIONS ROCKLAND,INC.PARSIDXC
DIRECT COMMUNICATIONS ROCKLAND,INC.RKLDIDXC
FARMERS MUTUAL TELEPHONE CO.FRLDIDXX
FARMERS MUTUAL TELEPHONE CO.NUARIDXC
FILER MUTUAL TELEPHONE CO.FILRIDM
FILER MUTUAL TELEPHONE CO.HLSTIDXC
FREMONTTELCOM CO STATIDMA
INLANDTELEPHONECO.LENRIDXA
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION,INC.DUBSIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION,INC.HAM RIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION,INC.KLG1UDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION,INC.MNVWIDXC
MUD LAKE TELEPHONE COOPERATIVE ASSOICATION,INC.TRTNIDXC
OREGON -IDAHO UTILITIES,INC.SOMTI DXC
POTLATCH TELEPHONE CO.,INC.JLUIDXA
POTLATCH TELEPHONE CO.,INC.KNDIUDXX
POTLATCH TELEPHONE CO.,INC.TROYIDXX
PROJECT MUTUALTELEPHONE COOP.ASSOCIATION,INC.MNDKIDXC
PROJECT MUTUAL TELEPHONE COOP.ASSOCIATION,INC.NRLDIDXC
PROJECT MUTUAL TELEPHONE COOP.ASSOCIATION,INC OKLYIDXC
EXHIBIT A
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERI.&CoM
Page2of6
PROJECT MUTUAL TELEPHONE COOP.ASSOCIATION,INC.PAULIDXC
PROJECT MUTUAL TELEPHONE COOP.ASSOCIATION,INC.RPRTIDXC
SILVER STAR TELEPHONE CO.,INC.IRWNIDXC
SILVER STAR TELEPHONE CO.,INC.WAYNIDXC
NON-RURAL WIRE CENTERS
COMPANY WIRE CENTER
OWEST CORPORATION AMECIDMA
QWEST CORPORATION BLFTIDMA
QWEST CORPORATION BLSSIDMA
QWEST CORPORATION BNCRIDMA
QWEST CORPORATION BOISIDMA
QWEST CORPORATION BOISIDNW
QWEST CORPORATION BOISIDSW
QWEST CORPORATION BOISIDWE
QWEST CORPORATION BRLYIDMA
QWEST CORPORATION BUIHLIDMA
QWEST CORPORATION CLWLIDMA
QWEST CORPORATION CRGMIDO1
QWEST CORPORATION CSFRIDMA
QWEST CORPORATION CflNDIDO1
QWEST CORPORATION DECLIDMA
QWEST CORPORATION DWNYIDMA
OWEST CORPORATION DYTNIDMA
QWEST CORPORATION FAGLIDNM
QWEST CORPORATION EDHZIDMA
QWEST CORPORATION EMMII DMA
QWEST CORPORATION FKLNIDMA
QWEST CORPORATION FRIHIDMA
QWEST CORPORATION GAVLIDO1
QWEST CORPORATION GDNGIDMA
QWEST CORPORATION GLFYIDMA
QWEST CORPORATION GRACIDMA
QWEST CORPORATION HALYIDMA
QWEST CORPORATION HGMNIDMA
QWEST CORPORATION IDCYIDMA
QWEST CORPORATION IDFLIDMA
QWEST CORPORATION INKMIDMA
QWEST CORPORATION JERMIDNM
QWEST CORPORATION KAMHIDO1
QWEST CORPORATION KMBRIDMA
QWEST CORPORATION KOSKIDO1
QWEST CORPORATION KTCHIDMA
QWEST CORPORATION KUNAIDMA
EXHIBIT A
CASENO.TRA-T-1301
APPLICATION FOR ETC DESIGNATIoN,TERI&CoM
Page 3 of 6
QWEST CORPORATION LAPWIDO1
QWEST CORPORATION LHSPIDMA
QWEST CORPORATION LSMNIDMA
QWEST CORPORATION LSTNIDSH
QWEST CORPORATION MCCMIDMA
QWEST CORPORATION MDTNIDMA
QWESI CORPORATION MECRIDMA
QWEST CORPORATION MRDNIDMA
QWEST CORPORATION MRTGIDMA
QWEST CORPORATION MTHOIDMA
QWEST CORPORATION MTHOIDSO
QWEST CORPORATION MTPLIDMA
QWEST CORPORATION NMPAIDMA
QWEST CORPORATION NPMOIDMA
QWEST CORPORATION NZPRIDO1
QWEST CORPORATION PCTLIDMA
QWFST CORPORATION PCFLIDNO
QWEST CORPORATION PSTNIDMA
OWEST CORPORATION PY1TIDMA
OWEST CORPORATION RBRTIDMA
OWEST CORPORATION RGBYIDMA
QWEST CORPORATION RIRIIDMA
OWEST CORPORATION RYSDIDMA
QWEST CORPORATION RXRGIDMA
QWEST CORPORATION SDSPIDMA
QWEST CORPORATION SHLYIDMA
WEST CORPORATION SHSHIDMA
OWEST CORPORATION STARIDNM
QWEST CORPORATION THTCIDMA
QWEST CORPORATION TWFLIDMA
QWEST CORPORATION WESRIDMA
QWEST CORPORATION WNDLIDMA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID BNFYIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID BOVLIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID YVWIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID CLFKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID CRALIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID DERYID)
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID DERYIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID FRFDWAXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID FRTNWAXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID GENSIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID HOPEIDXX
FRONTIERCOMMUNICATIONS NORTHWEST,INC.-ID HRSNIDXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID HYLKIDXX
ExHIBIT A
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERICoM
Page4of6
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID KLLGIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID MLLNIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID MSCWIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID ORFNIDXC
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PECKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PIRCIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PCMRIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PNHRIDXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PRLKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PRRVIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PSFLIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PTLTIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID RTHDIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID SNPNIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID SPLKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID STMRIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID TEKOWAXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID WEPPIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID WLLCIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID BNFYIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID BOVLIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID BYVWIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID CRALIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID DERYIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID FRFDWAXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID GENSIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID HRSNIDXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID HYLKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID KLLGIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID MLLNIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID MSCWIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID ORFNIDXC
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PECKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PIRCIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PLMRIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PNHRIDXA
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PRLKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PRRVIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PSFLIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID PTLTIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID RTHDIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID SNPNIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID SPLKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID WEPPIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID FRTNWAXX
EXHIBIT A
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERICoM
Page 5 of 6
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID CLFKIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID HOPEIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID MSCWIDXX
FRONTIER COMMUNICATIONS NORTHWEST,INC.-ID WLCCIDXX
FRONTIER COMMUNICATIONS NORTHWEST INC -WA RCFRWA)(B
FRONTIER COMMUNICATIONS NORTHWEST INC.-WA FRTNWAXX
FRONTIER COMMUNICATIONS NORTHWEST INC -WA FRFDWAXA
FRONTIER COMMUNICATIONS NORTHWEST INC.-WA GRFDWAXX
FRONTIER COMMUNICATIONS NORTHWEST INC.-WA PALSWAXX
FRONTIER COMMUNICATIONS NORTHWEST INC.-WA NWPTWAXX
ExHrnIT A
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page6of6
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT B
EXHIBIT B
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 1 of7
1VUI’ACHMENT “B”
FILED
AFR1o2nnAttidesoioeoeptwationOi%LiIOMASECFUIiiMY
oF erASE
TIflUNI)EtttitCiNiil)ucihitiso toc000rctorof ocorpohiduit iiopt Ui4 followingcitlnlesofioconponitlon
thywickcorporoilon:
1.The seine of the corporotioll ic TriruCern Ins.
Thu pencil ofIts doretloto ie peipetuol.
1 lbs piliposu Is to igags in coy netivitius or hnnlnnn pci-milled iimIer lbs laws of the United Slates cml
thu stub otOklnhomo.-
4.iSis corporatloiioholl hove onthority to issue 50030
climes ofcommon stock,$1.00 pun veliuc.
S Ike oddrninot Iliccoifouotc office to
5375 Ilorsuoliuc lw Giuthrlo OK 75044
6.lImo noisesod cddrcoo ofits trOloteted seed i
Jones Uhwcl,5375 Thirsu.qluue Lii,Guthnle,OK 73044
7.‘lIme mnmmber mmtdirecLors constituting its Initlol Bound ofDirecboio is I wIt000notitu soil mmddret Ic:
Noose:Addruou:
Jonon Hired 5375 Horoeclton Lu Uolhrio,OK 71044
8.The sewn end ndthess of thuIncurpoostor In:
Horns:Atlitre’,:
Jooon Fliroel 5375 Honucotups Lii Guthuic,OK 73044
8iuuujirq,ofIroei,rponotnr
Stole otflklnhoinu
County ofOblahotun
Betoreinn,limo nodmoclgnedtiuthocily,pnrcnnnlty opfeionml 3conFkmut who tosicmcli known tube time
pctsmmuu dennrikctt hi nod who subscribed due shoOt mImics of iocorpornilniu,toil did Odnly umiol ynluntoiiy
octnuow(citUe tuuthre ins seconding to tow that Posy incite und oumbocuibed mite sonic fur lu,tines nod ;nirponce
ihereth mentioned end oct foittu,
iN WII1’lRSS WIIISIOJIOF,Ihiuvnticrnuitlo ontnsy houdond toy oEticI;ul ccitt.
in sold county sod stole this /Cl doy of At/s-,Y ,,ZOO
Nnlnmy inhito steIn of,c,_
Printed Notoy Nonto _K Hruwn,
My Couenibooicn tiopiror;RECEIVIfI-)
Co.-)/7y7 Ol(SLC.OF StATE
APR 1 0 0O3
scions ii OuiOsnii
EXHIBIT B
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERCoM
Page2of7
)61ô UI%SD)LJ3q
EXHIBIT B
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEACoM
Page 3 of 7
OFFICE Of THE SECRETARY OF STATE
CERTIF1CATJ OF INCORPORATION
WHLtREAS Me Ce,ilficafe ofincotpomttwt f
TEflRACOM INC.
has I etaflied in the office ofthe Secretcoy ofState as pcai’lded by the laws Qfthe FiaM
of Oklahoma,
NOW 7WtREFOR I,the ondelsignc4,Secrela,y of State of the Stole of
Oklahoma,Icy virtue ofthe powess vested in nit by law,do hereby Issue this cerdficafe
cyldeiccing suchflung.
IN TESTIMONY WItEKlOI Ihereunto set my hand a,1ttcause to be qflxed the
Great Scat ofthe Slate of Oklahoma.
Filed In the City ofOklahoma City lids _,WIk.
clay oL......Ap2lTJ.I
crcrvafSe
-o
FILED -Oklahoma Secretary of State #1900712018 0210712012
FIRST AMENDMENT TO CERTIFICATE OF INCORPORATION
OF TERRACOM TNC.
t#1o7,i)
TO THE SECRETARY OF STATS OF THE STATE OF OKLAHOMA,101 State Capitol
Building,Oklahoma City,Oklahoma 73105:
The Corporation filed its Certificate of Incorporation with the Secretary of State of the
State ofOklahoma on AprIl 10,2003.
The Corporation,for the purpose of amending Its Certificate ofIncorporation pursuant to
Section 1077 of the Oklahoma General Corporation Act,hereby files this First Amendment and
certifies as follows:
AR11CLE ONE
cve7,20z2 oz;ea prI Nochange,asfiled.
uxLnuorlfl SECRETnRY OF STATE
ARTICLE TWO (but oreviously not numbered)
so No change,as filed.
ARTICLETHREE
No change,as filed.
ARTICLE FOUR
As amended,Article Four shall state in full,as follows:
The total nwnber of shares of capital stock that the Corporation has authority to issue is
55,000 shares,divided into 45,000 shares of Nonvoting Common Stock,par value $.0l per share,
and 10,000 shares of Voting Common Stock,par value $,0l per share.The following is a
de3criplion ofthe stock ofthe Corporation:
1.With respect to any matter that Is subject to a vote of the shareholders of the
Corporation,except as otherwise required by law,the holders of Voting Common Stock shall
possess all.voting powers for all purposes,and the holders of Nonvoting Common Stock shall
have no voting power whatsoever.
2.Except as provided above,the Voting Common Stock and the Nonvoting
Common Stack shall be identical in all respects,
At any time and from time to time when authorized by resotudon of the Board of
Directors and without any action by its shareholders,the Corporation may issue or sell shares of
its capital stock of any class or series,whether out of the unissued shares thereof authorized by
the Certificate of Incorporation of the Corporation or out ofshares acquired by it after the issue
thereoL When similarly authorized,but without necessity tot any action by its shareholders,the
Corporation may issue or grant rights,warrants or options,in such form as the Board of
zv
ExHIBIT B
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERIt&C0M
Page4of7
Directors may dctennine,for the purchase of shares ofthe capital stock of any class or series of
the Corporation within such period oftime,or without limit as to time,to such aggregate number
ofshares,and at such price per share,as the Board ofDirectors may dctennine.
ARTICLE FIVE
The street address of the principal office,wherever located is:
401 E Memorial,SuIte 400,Oklahoma City,Oklahoma 73114
ARTICLESJX
The name and address ofthe registered agent for service ofprocess in the State ofOklahoma Is:
Len Cason of Hartzog CougerCason &Neville
201 Robert S.Kerr Ave.,1600 Bank ofOklahoma Plaza,Oklahoma City,Oklahoma 73102
ARflCSEVEN
No change,as filed.
ARTICLE EIGHT
No change,as filed.
Except as amended by this First Amendment,the Certificate of Incorporation of
Corporation shall continue In effect and be unchanged.
[Signature Page Follows]
cii I36&9auA1pIin Am.ndmcrIc COl Cta,cm)(4I6I73)DOC
ExHW;TB
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERnCoM
Page 5 of 7
N WIThESS WHEREOF,the Corporation has caused this First Amendment to be
signed by Its President and attested by its Secretary this J’day ofJanuary,2012.
ThRRACOM NC.
By:___
Rlc1ard Yuñch,resident
ATTEST:
Jason Hind,S
Signature Pag.
To
Pirsi Amendment to Certificate
atincorporation TeniCom Inc.
EXHIBIT B
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page6of7
OFFICE OF THE SECRETARY OF STATE
I FURTHER (ERTJfYthut AOMJc.whose registeredagent i.vLEN
c4SON with its registered office at HAROG CONGER CASOJ MiVJLLE20]
R(ffiERTSRR,1600BANKOFOKJ4ffQMA P1A14 O4HOM4jj 73102
iL5.Oklahoma is a Domestic ForPrtifit Business Co,poration duv organizedand
existing under and by uirtue qf the laws of the stale of Oklahoma and is in good
standing according to the records ofthis office.This certificate isnot tobe construc’d
as an endorsement,recommendation or o(ice ofapproval ofthe en(itysfinw2cial
condition or businessactivities andpractices.Such iformation isnotavailableftom
this office.
:***:IL
\/
IA’TESTIMONY WHEREOI l hereunto
set my hand and affixed the Great Seal of the
State ofOklahoma.dojie at the City of
Oklahoma City,this 22 day of icmpqiy.
2t)13.
Secretary OfState
EXHIBIT B
CASE No.TRA-T-3O1
APPLICATION FOR ETC DESIGNATION,TERCoM
Page 7 of 7
CERTIFICATE OF GOOD STANDING
DOMESTIC FOR PROFIT BUSINESS CORPORATION
I,THE UNDERSIGNED,Secretary ofState of the State of Oklahoma,do
hereby cer1fy that Jam,by the laws ofsaidstate,the custodian ofthe recordsofthe
dale of Oklahoma relating to the right of certain business entities to transact
business in this state andam the proper officer to execute this certficale.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT C
EXHIBIT C
CAsEN0.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRAC0M
Page 1 of3
—IiStateofIdaho
TERRACOM INC.
File Number C 197237
I,BEN YSURSA,Secretary of State of the State of Idaho,hereby certify that an
Application for Certificate of Authority,duly executed pursuant to the provisions of the
Idaho Business Corporation Act,has been received in this office and is found to
conform to law.
ACCORDINGLY and by virtue of the authority vested in me by law,I issue this
Certificate of Authority to transact business in this State and attach hereto a duplicate of
the application for such certificate.
/
)
Dated:January 23,2013
SECRETARY OF STATE
By
EXHIBIT C
CAsINo.TRA-T-1301
APPLIcATION FOR ETC DEsIGNATIoN,TERRACOM
Page2of3
]
II ©I
CERTIFICATE OF AUTHORITY
7’OF
L
1’
1—
202
APPLICATION FOR CERTIFICATE’”’34/V23
OF AUTHORITY (For Profit)5E(’1-4’:08
(Inatructlons on Back of Application)5A1
The undersignedCorporatIon appliesfora CertIfIcate of Authontyand statesas follows:
1.The name of the corporation is:
TerraCom Inc.
2.Thu name which it shall use In Idaho Is:
_______________________________________________________________
3.It is Incorporated under thu laws of:Oklahoma
4.Its date of Incorporation Is:04110/2003
5,The address of its princIpal office is:
401 E.Memorial Road,Suite 400,Oklahoma City,OK 73114
6.The address to whIch correspondence should be addressed,(different from item 5,is:
P0 Box 720128,Oklahoma City,OK 73172.0128
7.The street address of Its registered office in Idaho is:,lit 1 West Jefferson,Suite 530,Baiae,Idaho 83702
and Its regIstered agent In Idaho atthat address is:CT COtVflrttIOn System
The names and respective business addresses ufItsdirectors and officers are:
Name Title Business Address
Json Hirzel Preidt 401 E.Memorial Road,Suite 4
Richani Yurich Vice President
Dale Schesick Vice Ptctidcnt
401 E Memorial Road,Suite 4
401 E.Memorial Road.Suite 4
::Jz—
Typed Name:Dale Sebmick
Capacity:Vice President —
_______________________________
ffnN’OWIcaI CTflblMWOIOiIiit
CuStomerAcd a:
em p,,’.aa .ai
Secretary at Stile use only
IDAHO SECRETARY OF STATE
131/23/21313 050(3
CK:28294 CI;28168 88:1356998
1 8 188.88 188.88 AUTH PRO $2
EXHIBIT C
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERCoM
Page3 of3
B,
fThe sinar muse be a dirscfof a’an vffe,r e ha co(paraUonj
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT D
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TEICoM
Page 1 of53
Before the
FEDERAL COMMUNICATIONS COMMISSION
Washhigton,D.C.20554
In the Matter of )
Telecommunications Carriers Eligible for )WC Docket No.09-197
Universal Service Support
Lifeline and Link Up Refonn and Modernization )WC Docket No.11-42
TenaCom,Inc.Second Revised Blanket )
Forbearance Compliance Plan
Amended Petition of TenaCorn,Inc.for Limited )
Designation as an Eligible Telecommunications )
Carrier for Purposes of Receiving Low Income
Support Only
SECOND REVISED COMPLIANCE PLAN OF TERRACOM.INC.
TERRACOM,INC.
Jonathan D.Lee
J.D.Lee Consulting.LLC
1776 I Street.NW.
Suite 900
Washington.DC 20006
[phone]
Its Attorney
May 1,2012
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 2 of 53
TABLE OF CONTENTS
SUsnIARY .
I.INTRODUCTION .1
II.T&&CoM BACKGROUND AND CORPORATE STRUCTURE 3
III.OBLIGATIONS IMPOSED ON ETCs By Th LIFELINE REFORM OR.ER 5
A.Customers ofTerraCom Lifeline-supported Services Will Have Access to
911/E911 Compatible Handsets 7
B.Description of TerraCom’s Lifeline Service Offerings 9
C.TerraCom’s Plans To Implement New Lifeline Service Offerings 1 1
1.Enrollment 12
2.Dc-Enrollment 20
3.Recordkeeping Requirements 23
i.Individual Account Records 24
ii.Company-wide Records 26
4.Reimbursement from USAC 28
5.Marketing Materials 28
6.Financial and Technical Capability to Provide Service 29
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 3 of53
SnINIARY
Ten-aCorn.Inc.(“TerraCom”)submits this Second Revised Compliance Plan in place of
its earlier filed Revised Compliance Plan (March 16,2012).in order to demonstrate how it plans
to comply with the new obligations imposed on Lifeline-only ETCs as part of the Commission’s
recently released L fe1me Reform Order.In submitting this Second Revised Compliance Plan,
TenaCom seeks to benefit from the Commission’s grant of “blanket forbearance”from Section
214(e)(1)(A)ofthe Communications Act of 1934,as amended (the “Act”),to
telecommunications carriers seeking limited ETC designation to offer Lifeline services.
regardless ofthe facilities used to provide the services.Accordingly,TeraCom also seeks the
Commission’s approval of its Petition for ETC Designation,as amended,for the states of
Alabama.Comiecticut.Delaware.Florida,New Hampshire,New York,North Carolina.
Tennessee.the Commonwealth of Virginia.and the District of Columbia.
In this submission,TerraCom explains that in many instances,it is already operating
largely in compliance with the Commission’s new rules.Nonetheless.TeiTaCom will describe
(for all the major rule changes the Commission adopted in the Order)how it plans to comply
with the Commission’s new rules.
TeraCom has considerable experience operating as both a wireline and wireless Lifeline-
only ETC.It is currently in compliance with all federal mid state rules in the states of Arkansas,
Indiana,Iowa,Louisiana,Maryland,Nevada,Oklahoma.Texas.West Virginia,Wisconsin,and
the Commonwealth of Puerto Rico,where it has been designated an ETC by the state or territory
commissions.As a Lifeline-only ETC,operating successfully within the Commission’s existing
rules,Ten-aCom has given considerable thought towards how it will comply with the
Commission’s recently-adopted new rules for Lifeline-only ETCs.
ExHIuIT D
CASE No.TRA-T-130l
APPLICATION FOR ETC DESIGNATIoN,TERa.&C0M
Page 4 of 53
In its Lefrline Reform Order,the FCC imposed a number of changes to its existing rules
in order to ensure that Lifeline consumers receive ati the same public safety benefits that are
available to other telecommunications services consumers,and to ensure that carriers operate in a
maimer that facilitates prudent Fund administration by the USAC.Among olher obligations
imposed,the Commission explicitly requires all Lifeline-only ETCs to 1)provide 911 E91 1-
compliant handsets to all their customers.2)describe their service offerings and die areas in
which these services are available,mid 3)explain how the ETC plans to comply with the other
major nile changes adopted in this Order.
TenaCom believes that it is already in compliance with the 911!E911 handset obligations
imposed by the Order,and it will continue to comply with these obligations.Moreover,
TerraCom also describes its company-wide.and state-specific.Lifeline service offerings in this
document.
The most significant iiifoniiation provided in this Second Revised Compliance Plan
explains how TerraCom will implement the many major nile changes in this Order.Among
these nile changes,one of the largest involves how TeiTaCom enrolls customers,specifically
how it plans to obtain customer information,customer consent to use this information pre
enrollment for the purposes of determining that the customer’s household does not already
receive any other Lifeline-supported services,and to verify whether the customer is eligible for
Lifeline enrollment under either a supported proam,or by virtue of income qualification.
To this end.TerraCom has adopted a new customer certification forni.a copy of which is
aftached as Exhibit 1.This new customer certification form will be the focus of all initial
customer contact,regardless of how the customer chooses to initiate contact with TeimCom—
whether through a TenaCom retail store,online,or over the phone.Additionalk;TenaCoin has
ii
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERR1kC0M
PageS of53
adopted a new eligibility certification practice in order to comply with the Commission’s new
rules designed to protect the integrity of the Fund.TeraCom will,as the Commission’s new
rules require,first check the National Lifeline Accountability Database to detennine that the
customer’s household is not already receiving a Lifeline-supported service.TeraCoui will then
continue to use (where available)state eligibility databases or employee verification ofthe
customer’s program/income-based eligibility.
For successfully enrolled customers,and for all its existing customers,TerraCoin has
adopted new procedures to ensure that a customer re-certifies eligibility as required (either every
90 days for customers enrolling using a temporary address,after 60 consecutive days of non
usage.or annually),by contacting TerraCom through a number of convenient channels (in-
person,over the phone,via return text,email,or online,using TerraCom ‘s website.
Correspondingly,TerraCom has also developed procedures to promptly dc-enroll Lifeline
customers when notitied by the Administrator that the customer’s household is receiving
duplicative supported services,or when a customer fails to timely recertify ongoing eligibility.
TennCom is also modifying its internal data collection/customer account databases in
order to be able to comply with the many new record keeping requirements imposed by the
Commission’s Order.The Commission has specified a iuunher ofnew requirements that will
better facilitate an ETC’s ability to respond to an audit request.or to conduct its own internal
audits periodically.TelTaCom is also modifying its customer-specific,and company-wide.
databases so as to facilitate quicker and easier retrieval of the information necessary to comply
with the Commission’s new reporting requirements.
lie Conunission’s new rules also impose several other “new”requirements on ETCs.
which TcnaCom is already in compliance with,or with which TerraCom can easily comply.
iii
ExHInIT D
CASE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERw&C0M
Page 6 of53
These new requirements include providing additional information on Lifeline eligibility and
terms of receiving the federal assistance on all new advertising materials.To demonstrate
colnpliance with this new obligation.TeraCom has included a sample of the information it will
include on all new marketing materials.
The Commission,in its Order and new riles,also changed and standardized the Lifeline
reimbursement procedures for all ETCs.Under the new rules.all carriers must limit requests for
reimbursement to those customers that they actually sen-ed in the past month—also known as
“actual”reimbursement (vs.the previously-acceptable scheme of allowing caiTiers to receive
advance reimbursement for “projected”customers).TerraCom will move to operating on an
“actual”reimbursement schedule in accordance with the process set forth in the Order.
Finally,the Commission also imposes a requirement that sen’ice providers seeking to
receive Lifeline subsidies be able to demonstrate that the;’are technically and financially capable
of providing Lifeline-supported service.TeraCom has been providing sen’ice to,primarily,low
income customers since first being designated an ETC in 2004.TerraCom is a profitable firm,is
in good standing with all its vendors so as to ensure its ability to provide customers with safe and
reliable service,and has been providing telecommunications services to its customers,in
compliance with applicable federal and state regulations for 8 years.
Accordingly,upon the demonstrated intent and ability to comply with the Commission’s
newly-adopted Lifeline obligations described in the foregoing Second Revised Compliance Plan,
TerraCom asks that the Commission promptly approve this Plan and allow TeraCom to operate
as a beneficiary ofthe “blanket forbearance”want extended to all qualth’ing providers under the
Lifeline Reform Order.Upon approval of this Second Revised Compliance Plan.TeraCom also
ash that the Commission grant its pending Amended Petition for Limited ETC Designation.
i’,
EXHIBIT D
CASE No,TRA-T-1301
APPLICATION FOR ETC DESIGNATIoN,TERRACOM
Page 7 of53
Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington,D.C.20554
In the Matter of
Telecommunications Carriers Eligible for )WC Docket No.09-197
Universal Service Support
Lifeline and Link Up Reform and Modernization )WC Docket No.11-42
TerraCom,Inc.Revised Blanket Forbearatice
Second Revised Compliance Plan
Amended Petition of TerraCom,Inc.for Limited
Designation as an Eligible Telecommunications
Carrier for Purposes of Receiving Low Income
Support Only
SECOND REVISED COMPLIANCE PLAN OF TERRACOM,INC.
I.INTRODUCTION
TerraCom.Inc.(“TerraCom”).by its undersigned counsel,hereby submits this revised
plan’to comply with the new legal obligations imposed on telecommunications carriers by the
federal Communications Commission (“FCC”or the “Commission”)itt its Order reforming and
modernizing the Lifeline and Link Up programs of the Universal Service fund (“USF”).2 In its
TenaCom previously filed a Revised Compliance Plan in the above-referenced dockets on
March 16,2012.It now seeks to replace its Revised Compliance Plan with this Second Revised
Compliance Plan.Thus,TenaCom is withdrawing its previous Revised Compliance Plan.
2 In the iIatter ofLifeline andLink UpRefonu andModerntation;Lifline andLink Up,
Federal-State Joint Board on Universal Sen’ice;Advancing BroadbandAvailability Through
Digital Literacy Training.Report and Order and Further Notice of Proposed Rulemaking.
Docket Nos.96-45.03-109.11-42.and 12-23.January 31,2012 [re february 6,2012].
(“LtJhne Reform Order”or “Order”).
EXHIBIT D
CAsE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page 8 of53
Lifeline Reform Order,the Commission granted “blanket forbearance”from Section
214(e)(1)(A)ofthe Communications Act of 1934,as amended (the “Act”),to all
telecommunications caiTiers seeking limited ETC designation to offer Lifeline services.3
TenaCom has a Petition for Limited ETC Designation pending at the Commission.and requests
that,concordant with Commission grant ofthis Second Revised Compliance Plan,the
Commission also approve its Pending Amended ETC Petition.3
All telecommunications carriers are eligible to receive blanket forbearance on the
condition that the carriers seeking the blanket forbearance agree to submit a compliance plan.
subject to the approval ofthe Wireline Competition Bureau (“the Bureau”).describing how they
intend to comply with the Conrn3ission’s new requirements for participating in the Lifeline
program.5 As explained below,TenaCom will fully comply with the conditions imposed in the
Lifeline Reform Order to ensure that the Commission’s concerns regarding consumer safety and
the fiscal integrity of the Universal Service Fund (“the Fund”)are completely satisfied.
Accordingly,and because TenaCom has several state Lifeline-only ETC applications pending
(and which are now dependent on the Commission’s approval of TenaCom’s Second Revised
See,Lifeline Reform Order,J1 368-391.
‘See,Petition ofTerraConi,Inc.forLimitedDesignation as an Eligible Telecommunications
Carrier in the States af4lahama,Connecticut,Delaware,New Hampshire,New York-,North
Carolina,Tennessee,the Commonwealth of’Virginia.and the District ofColumbia,WC Docket
No.09-197.filed June 13.20011.This Petition was subsequently amended on June 28,2011 to
include the state of Florida,and again on April 18,2012 to update it in light ofthe Commission’s
recent nile changes affecting Lifeline-only ETCs.While TcrraCom’s Petition for Limited ETC
Designation originally sought Link Up support,in addition to Lifeline support,this portion of its
request has been rendered moot by the Lifeline Reform Order,mid is hereby withdrawn.
TenaCom still seeks Lifeline-only designation in the above-mentioned jurisdictions for which
the Commission is the proper designating authority,because the states lack the authority to
perform such designation for wireless telecommunications service providers seeking designation.
See,Lifeline Reform Order,¶J 368-39 1.
2
ExHInIT D
CASE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERItACOM
Page 9 of53
Compliance Plan6).it is TeraCom’s sincere desire that the Commission act expeditiously to
approve its Second Revised Compliance Plan.
H.TERCoM BACKGROUND AND CoRPoTE STRuCTURE
TenaCom began providing retail landline telecommunications service iii 2004.TeiTaCom
is a corporation.based in Oklahoma City,Oklahoma,and incorporated under the laws of
Oklahoma.In 2010,TeiraCom’s shareholders became investors in another competitive
wireline/wireless sen-ice provider called YourTel America.Inc.(“VourTel”),which was based
in Kansas City,Missouri.TerraCom and VourTel are separate companies with some common
shareholders.TerraCom and VourTel are not owned wholly in common.Neither TeiraCom.nor
VourTel.operates as a holding company,and neither finn has affiliate companies.
With TenaCom’s years of experience focu.sing on providing high quality
telecommunications sen’ices to low income consumers,TerraCom became one ofthe first
competitive ETCs in 2004.Today.TerraCom provides both landline and wireless service to well
over 200,000 customers as an ETC in Arkansas,Indiana,Maryland.Nevada.Oklahoma,Texas,
West Virginia.lo’va Louisiana,Puerto Rico and Wisconsin.While TenaCom specializes in
providing superior sen’ice at affordable rates to low income consumers,and is a “Lifeline-only”
ETC,its customers are not exclusively Lifeline-supported.In most states,TenaCom’s service
territory is limited to the area sen-ed by the large incumbent LECs (which are required tinder the
Act to lease pieces of their networks to competitive carriers at cost-based rates).
TeraCom prefers direct contact with consumers and will use outreach events,direct
sales,neighborhood agents,and TeiraCom branded or authorized retail outlets.TerraConi’s
specialty is in identiing underserved customers through sen’ing communities by local outreach.
6 Lifeline Refonn Order,at ¶380.
3
ExHinir D
CASE No.TRA-T-130l
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 10 of53
and by becoming part of the communities it serves.To this end,TerraCom does not offer its
services through “chai&’stores.but rather through its own store,and locally-owned stores
familiar with the underserved consumers in the communities TerraCom serves.TeraCom sells
the remainder of its service through Internet sales-inbound telemarketing (where a customer is
seeking to initiate sen-ice with TerraCom).
Consistent with Commission and industry trend data,TerraCom has found that
consumers—including low income consumers—axe migrating away from wireline
telecommunications service and towards mobile wireless sen-ices.In its existing service
territories,TerraCom offers wireless sen-ice to consumers by using a combination of its own
facilities,leased wireline fixcilities,and the wholesale wireless services of Sprint Spectrum,LLC
and CelIco Partnership dib/a Verizon Wireless.
As an ETC.and provider of teleconTmunications services to its customers.TeraCom has
an impeccable reputation.It has never been subject to sanctions by a state or the FCC,and—
while no carrier is without its mistakes or errors—TerraCom has auditing systems in place.has
been diligent in perforning its obligations as an ETC,and has caught its few errors before they
were ever submitted to USAC for reimbursement.This inforniation,coupled with certain other
detailed demonstrations made,infra,helps to establish TeraCom’s financial and technical
capability to provide the supported sen’ice.7
Moreover,as part of the overall carrier certifications required by the Order and its rules,
TerraCom commits to comply with the Cellular Telecommunications and Internet Industry
See,e.g.,Lifeline Reform Order,¶388 (whether a carrier has been the subject of an
enforcement action is relevant to financiaL-technical capability to provide Lifeline sen-ice under
new nile §54.202(a)(4).)
4
ExHtnlT D
CASE No.TRA-T-130l
APPLtCATI0N FOR ETC DEStONATtON,TEtutACorvi
Page 11 of53
Associalioifs Code for Wireless Service.8 Thus.TerraCom has the intention and demonstrated
ability to fastidiously comply with the Commission’s new requirements for Lifeline-only ETCs.
Ill.OBLIGATIONS IMPOSED ON ETCs By THE LIFELINE RnoR 11 ORDER
In order to continue to offer low income service and qualify for future state and/or federal
Lifeline-only ETC designations,TerraCom wishes to avail itself ofthe Commission’s
conditional grant ofblanket forbearance and obtain approval of its Second Revised Compliance
Plan.In its Lifeline Reform Order,the Commission explains that carriers seeking Lifeline-only
ETC designation must,as part of their compliance plans,describe how they intend to implement
certain conditions specified in the Order,as well as explain how the carrier plans to comply with
the new rules,generally.The conditions (both broadly and specifically)established by the
Conimission tend to focus on ensuring that consumers are protected,and that carriers will do
their best to ensure that they (and their customers)cooperate filly in assisting with prudent,
efficient administration of the Low Income Fund by the Universal Service Administrative
Company.
In paragraphs 368 through 391,the FCC sets forth the conditions that carriers must
satisfy in order to receive approval oftheft compliance plans.and the corresponding blanket
forbearance allowing them to be granted Lifeline-only ETC designation by the states or the
Colmnission.The conditions established b’the Commission range from the yen specific,such
as requiring carriers to provide all customers receiving Lifeline-supported service with access to
911 and E9 11 service (regardless of activation status or available minutes)as well as E9 t 1-
See.47 C.F.R.§54.202(a)(3).
S
ExHInIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page 12 of 53
compliant handsets9,to the ubiquitously general (requiring compliance plans to describe “the
measures the carrier will take to implement the obligations contained in this Order”).’°
In this Second Revised Conipliance Plan,TerraCom will describe in detail how it plans to
comply with the rule changes made in the Lifeline Reform Order.Specifically.TerraCom will
address the Commission’s concerns regarding how it intends to comply with:1)the
Commission’s 911/E91 1 service requirements’’,2)providing a detailed description of its
Lifeline-supported sen’iee offerings’2,and 3)outlining the measures it will take to implement the
more significant changes in the Order.13 The large majority of changes imposed by the Order,
and the Commission’s new rules implementing the Order,are addressed in this Second Revised
Compliance Plan,which will describe the way TerraCom plans to:a.)enroll customers,
including a description of how TerraCom will:i)initially qualify customers’eligibility to
prevent duplicate subsidies being awarded to the same household.ii)initially qualift customers’
eligibility to make sure that only program.or income,eligible customers are able to receive
service:iii)how TelTaCom intends to annually certify its customers continued eligibility,
including procedures for annual re-certification’4.b)TerraCom’s procedures to dc-enroll
customers who no longer meet the eligibility requirements to receive Lifeline service,customers
who have failed to use a free service within a continuous 60 day period.and customers who have
See.e.g.,Lifeline Reform Order,¶373.
‘°Id.at ¶379.
“Id.atJ373.
12 Id.at ¶368.
‘Id.
‘Id.at ¶J379.383,n.1004.TeraCom will,of course,also re-certify those customers that
enrolled using temporary addresses every 90 days.
6
EXHIBIT D
CAsnNo.TRA-T-1301
APPLICATION FOR ETC DnsIGNATION,TERIL4C0M
Page 13 of 53
failed to re-certify their continued Lifeline eligibility as part ofan animal (or 90 day,for
customers initially enrolling with temporary addresses)re-certification process’5,c)the records
that TelTaCom will keep to facilitate efficient audits of TerraCom’s customer base16,as well as
the customer data TerraCom will collect to satisfy its reporting requirements to USAC (and to
allow it to further cooperate with USAC should additional information be needed);d)
TenaCom’s proposed procedures for submitting and collecting reimbursements from USAC:e)
providing copies of its marketing materials that describe the customer eligibility requirements for
Lifeline (both income and one per household),the continued obligation ofcustomers to notify
TerraCom of changes in theft address,changes effecting eligibility,the customer’s obligation to
initially certify eligibility and to annually re-certify eligibility under penalty of perjury:and 0
TenaCom’s technical and financial capability to provide Lifeline-supported services to low
income customers.’7
A.Customers of TerraCom Lifeline-Supported Services \UH Have Access to
9111E911 Service and Will Receive E911 Compatible Handsets
In its Lifeline Reform Order,the Commission (as it has in all of its previous forbearance
grants)requires carriers seeking “blanket forbearance”to provide—as a condition to the
forbearance grant—911 and (where available)E9ll service to customers regardless ofthe
activation status of their service plans.’8 Thus,regardless of whether the customer has any
remaining minutes on their monthly service plan,the customer must be able to use emergency
services.
See.47 C.F.R.§54.405(e)
16 Lifeline Reform Order at ¶379.
‘Id.at ¶379.383.and 390.
Id.at ¶373.
7
EXHIBIT D
CASE No.TRA-T-130l
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 14 of53
TelTaCom supports the Commission’s reasoning in requiring this condition,and,is aware
that this requirement—-that customers always have access to the technologically-mandated
emergency access on all active mobile phones—is a current obligation the Commission imposes
on all wireless providers for their customers.19 TerraCom understands that mobile wireless
service is much less valuable to its customers ifthe customer cannot rely on their TerraCom
mobile service for emergency situations,and TerraCom already complies with this obligation.
Another public safety-related condition,routinely required by the Commission,is for
carriers receiving forbearance to ensure that all Lifeline-only customers have access to E911-
capable handsets.2°This is another condition that is already a TerraCom policy,and comes with
all TerraCom mobile wireless services (both Lifeline-supported,and non-Lifeline-supported).
TerraCom currently complies with this condition and automatically provides each new customer
with an E91 1-capable handset In fact,TerraCom has no non-E91 1-compliant handsets in its
inventory.Nonetheless,if TerraCom discovers any Lifeline-supported customers that do not
have a handset that is E9 11-capable.TerraCom will promptly replace that handset with a
compliant handset.Similarly,ifTelTaCom has any non-Lifeline-supported customers that are
eligible for,and wish to convert their service to,mobile wireless Lifeline service,TerraCom will
provide these customers with E9 11-capable handsets.
Finally,the Commission requires Lifeline-supported carriers to comply with both ofthese
conditions as of the effective date ofthe Order.TerraCom is currently in compliance with both
911 E9t 1-related conditions,and will still be in compliance when the Order becomes effective.
B.Description of TerraCom’s Lifeline Service Offerings
19 See,generally,47 C.F.R.§20.18.
20 Lifeline Refonn Order at ¶373.
8
ExHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERIt4C0M
Page 15 of53
The Commission requires that every carrier seeking blanket forbearance submit a
compliance plan containing detailed information regarding its Lifeline-supported service
offerings,including terms of service and the geographic areas where the services are available 21
Ten-aCorn offers all supported services,throughout the Sprint Wireless Service Area footprint
and that of Verizon Wireless,in Arkansas,Indiana,Iowa,Louisiana.Maryland.Nevada,
Okiahoma,Texas.Puerto Rico.West Virginia.and Wisconsin.All 611 and 911 calls are free,
and do not count against the customer’s airtirne.Directory assistance calls (411)are “free”;
however,applicable airtirne charges are assessed as minutes of usage.
Ten-aCorn offers three basic Lifeline service packages throughout all of its service
territories,except Oklahoma.In addition.TerraCom offers two plans that are only available to
Oklahoma residents.Ten-aCorn’s basic Lifeline programs are listed below.These plans are
taken directly from the TerraCorn Wireless website.22
Lifeline Free Plan 68
Each month you will receive 6$free voice minutes.Text messaging will be assessed at a rate of
0,3 minutes per text message for sending and 0.3 minutes per text message for receiving text
messages.Unused minutes will rolLover from month to month,see terms and conditions for
more information.This plan is not available to new subscribers and existing subscribers may
change to any plan they choose.
Lifeline Free Plan 125
Each month you wilt receive 125 free voice minutes.Text messaging will be assessed at a rate
of 1 minute per text message for sending and 1 minute per text message for receiving text
21 Lfe1ine Reform Order,at ]36$.
22 www.ten-acomwireless corn/plans/lifeline-free-plans!
9
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page 16 of53
messages.Unused minutes will rollover from month to month,see terms and conditions for
more information.This plan is not available to new subscribers and existing subscribers may
change to any plan they choose.
Lifeline Free Plan 250
Each month you will receive 250 free voice minutes.Text messaging will be assessed at a rate
of 1 minttte per text message for sending and 1 minute per text message for receiving text
messages.There are no rollover minutes with this plan.Unused minutes will expire cacti month
on the service expiration date.This plan is available in alt states where TerraCom Wireless offers
service except in tribal areas of Oklahoma.
Oklahoma Lifeline Unlimited Plan
Each month you vill receive unlimited voice minutes for $6.20 per month plus fees and taxes.
Text messaging will hot he available with the unlimited talk plan.There are no rollover minutes
with this plan.Unused minutes will expire each month on the service expiration date.This plan
is only available to Oklahoma residents.
Oklahoma Lifeline 1000 Ptaii
Each month you will receive 1000 voice minutes or 1000 text messages for $1.00 per month plus
fees and taxes.Text messaging will be assessed at a rate of 1 minute per text message for
sending and 1 minute per text message for receiving text messages.There are no rollover
minutes with this plan.Unused minutes will expire each month on the service expiration date.
This plan is only available to Oklahoma residents.
With all TerraCom Lifeline service plans.additional minutes are available for as low as
S.05/mninute.This low per minute rate does not require the customer to purchase an
10
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRACOM
Page 17 of53
unseasonably large amount of minute.but can be obtained with a purchase of only 200 additional
minutes for $10.00.The lowest incremental purchase of minutes is 60 minutes for $5.00.
Moreover,each TerraCom subscriber can select a phone—either a free phone (choices
include refurbished phones.as well as refurbished smaflphones such as the Blackberry Curve®
and in the fithire new phones).or purchase an upgraded phone from a wide inventors’.For those
customers choosing the smartphone.data can be added to any phone plan starting at
S1.25inegabyte—a price that can be reduced on a “per/megabyte”basis when the customer
purchases multiple megabytes ofdata.
Thus,TerraCom has demonstrated that it offers a number of “no contract”plans for
Lifeline users that provide for flexibility based on the particular consumer’s usage pattern.
TerraCom also allows low income customers to add affordable data usage to these free voice/text
minutes—facilitating greater sniartphone utilization,consistent with the Commission’s goal of
promoting broadband access to all Americans.
C.TerraCom’s Plans To Implement New Lifeline Provider Obligations
As previously noted,one of the Commission’s requirements for all compliance plans it
requires to be submitted in order to benefit from the grant of “blanket forbearance”in the Order
is for the carrier to describe how it will comply with the remainder ofthe new obligations
imposed on Lifeline participants in the Order.In this section,TerraCom will explain how it
plans to implement the new obligations in the Order,and incorporate those obligations into
TenaCom’s existing processes for enrollment,dc-enrollment,record keeping/re-certification,
seeking reimbursement from USAC.and marketing service to eligible consumers.TerraCom
will also demonstrate that it is technically and financially capable of providing Lifeline service to
consumers.
11
ExnInIT D
CASE No,TRk-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERn&CoM
Page 18 of 53
I.Enrollment
By way ofbackground.the Order requires each prospective customer to apply for
Lifeline sen’ice.The Commission has changed its procedures for how carriers must qualify
customers for enrollment in the Lifeline program.and how customers must certify their
eligibility.The Commission,for the first time,has established uniform eligibility and
application criteria for enrolling low-income customers in the Lifeline program.In the Lifeline
Reform Order,the FCC integrated and standardized the eligibility and certification criteria
through the establishment of what may be called a uniform application process.Each new
prospective customer will have to provide certain isifonnation and eligibility certifications as part
of an overall application to receive benefits under the Lifeline program.
However,before submitting an application to receive Lifeline-supported service under
the Commission’s new rules,the ETC providing the Lifeline service must obtain consent from
each of its new and existing subscribers to transmit the subscriber’s information to the program
Administrator.The carrier must explain in clear,and easy-to-understand.language the
infonnation that the can-icr will have to transmit to the Administrator.23 Ifthe subscriber refuses
to grant the carrier permission to transmit this iuifonsiation to the Administrator,the subscriber
will not be eligible to receive Lifeline service.
The application will require each prospective customer to provide all of the information
required in revised rule 47 C.F.R.§54.410(d)(2):the subscriber’s full name;the subscriber’s
residential address;whether the subscriber’s residential address is permanent or temporary;the
subscriber’s hilling address (if different from the residential address);the subscriher’s date of
birth:the last four digits of the subscriber’s social security number,or the subscriber’s tribal
identification number in lieu of a social security number:whether the subscriber is seeking to
23 See 47 C.F.R.§54.404(b)(9).
12
ExHIBIT D
CASE No,TRA-T-l301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 19 of 53
demonstrate eligibility to receive Lifeline service under the program-based criteria,or based on
income.
Moreover,as part of the application (and pursuant to revised rule 47 C.F.R.§410(d)(3))
the prospective subscriber will have to certify under penalty of peijuiy that:the subscriber meets
the income-based or program-based eligibility criteria for receiving Lifeline,explained in §
54.409;the subscriber will notify Ihe can-icr within 30 days iffor any reason the subscriber no
longer satisfies the eligibility criteria,or ifthe subscriber no longer satisfies the “one subsidy per
household”qualification;ifthe subscriber is seeking to qualify for Lifeline as an eligible resident
of Tribal lands,that they actually live on Tribal lands;ifthe subscriber moves to a new address,
they will notify the can-icr of their address change within 30 days;ifthe subscriber provided a
temporary address upon sign-up,the subscriber will verify their correct address evefl’90 days or
face dc-enrollment;the subscriber’s household will receive only one Lifeline service and,to the
best ofthe subscriber’s knowledge,their household is not already receiving a Lifeline sen-ice;
the subscriber’s information on their application is true and accurate to the best oftheir
knowledge;the subscriber understands that providing false information to obtain Lifeline
benefits is punishable by law;and the subscriber acknowledges that they may be required to re
certify continued eligibility for Lifeline at any time,and that the subscriber’s failure to re-certify
will result in dc-cnrolhnent and termination of the subscriber’s Lifeline benefits pursuant to §
54.405(e)(4).
Ten-aCorn-Specific Enrollment
As an initial matter,in those few states that have a state administrator,Ten-aCorn will
filly cooperate with the state Lifeline administrators to ensure that it does everything necessary
to ensure it is in compliance with both state and federal enrolhnent,verification,and re
13
EXHIBIT D
CASE No,TRA-T-l301
APPLICATION FOR ETC DESIGNATION,TERItAC0M
Page 20 of53
certification procedures.For all states that do not have a Lifeline administrator,TenaCom will
perform the same first step in the process of enrollment.Regardless of how the customer
applies—whether iii a retail store,online,or over the phone,each customer will end up supplying
the same information via TenaCom’s standard customer certification form.(Attached as
Exhibit 1.)This form contains all relevant information required by the Commission’s new rules,
and requires the customer to certify,under penalty of perjury,that to the best ofthe customer’s
knowledge all ofthe infonnation supplied is correct.The customer will also agree to contact
TenaCom in the event any infonnation regarding the customefs ongoing eligibility,or
household iiilbnnation,should change.
TenaCom enrolls Lifeline customers through several different marketing channels:1)in
person,through company-owned and affiliated retail stores,2)in person,through company
employees that arc retail sales representatives,and 3)through customer-initiated contact,either
through inbound telemarketing or (more frequently)through online sales over the Internet.The
large majority of TenaCom’s sales are through its “in person”channels.
What is significant is that all of TenaCom’s retail sales are the result of direct contact
with the potential Lifeline consumer.The maimer in which the sales will be made will be
slightly different but the obligations imposed by the new rules will be addressed directly by
TerraCom.Before examining each new enrolhnent obligation,it will be helpful to explain how
TenaCom will interact directly with its customers through each sales channel.
Retail Store.These sales are the most “direcf’and easiest to explain how TenaCom will
comply with the Commission’s new Lifeline obligations.The prospective customer comes into
the store,and is asked the basis for his or her claim to Lifeline eligibility:participation in a
qualifying program,or earning household income below 135%ofthe Federal Poverty
14
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERItAC0M
Page 21 of53
Guidelines.The store employee can verify the customer’s program,or income,based eligibility
in person.TenaCom provides excellent training/reference materials to its employees—an
example of which is attached as Exhibit 2—which allows the employees to verify the most
common fonns of proof for each eligible program and/or income verification (based on the
Corumission’s definition of “income”in §54.400(0).The store employee will then ask the
prospective customer for additional documentation proving identity,and/or address verification.
The final program/income eligibility-specific step is for the customer to provide the required
infonnation and make the certifications required by new nile §54.4l0(d)(3).
if the customer appears to be eligible,the employee will explain the Commission’s
definition of “household”,defined in new rule §54.400(h),as an “economic unit”where related
or unrelated people share income and expenses.In the case ofmultiple applicants at the same
mailing address,the customer will then make the “one per household”certification required by
§54.410(d)(l).Finally,TenaCom will collect the necessary customer-specific information
required by new rule §54.401(d)(2)so that TeiTaCom can report the iiffonnation to USAC to be
used to populate the National Lifeline Accountability Database (“duplicates database”),defined
in §54.400(i)of the Commission’s new rules.
The retail store employee then enters the customer’s information into TerraCom’s OSS
systems,where the information is checked against available databases (the duplicates database,
and TenaCom’s own list of existing customers).The retail store rep quickly determines whether
the customer is eligible to receive Lifeline service.In cases where a state program eligibility
database exists,the retail store personnel will contact TenaComs internal group dedicated to
verthing eligibility who will query the state database and either approve or den the applicant.
Where proof of eligibility is needed,the retail personnel.who are trained on what is eligible
15
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 22 of 53
documentation will witness the documentation mid sign the application demonstrating they have
witnessed the documentation.
Upon successful completion ofthe certification process,the customer is allowed to
choose a service plan.and,as mentioned earlier,select a phone—either a free phone (choices
include refurbished phones,as well as refurbished smattphones such as the Blackberry Curve®
and in the future new phones),or purchase an upgraded phone from a wide inventory.The
customer then receives their phone right at the store,upon payment of a TenaCom’s customary
activation fee.The customer’s account is activated upon completion of an outbound call.24 For
purposes of “enrollment”in the Lifeline program.TerraCom will use the date of this first
completed outbound call froni its call records as the customer’s effective start date.
Field Representatives.Frequently,TeraCom will dispatch employees as “field
representatives”to undersen’ed comniunities,where the “field rep”focuses on traditionally
underseiwed low income customers.Opportunities for field reps to reach those customers not on
the network range from educational sessions at low income housing.or nursing homes,to
sponsoring booths at community events.
The protocol for signing up customers in the field is similar to that of signing up
customers in a store,in the sense that the field rep can personally see whether the customer is
eligible based on proam participation or income qualification.The customer can also provide
the requisite infonriation,and sign the required eligibility verifications,from the field.Should a
customer in the field be detennhied to be ineligible but feels that the detemiination is incoffect
the order can be submitted to TeraCom for review and investigation.In such a case the phone
would be mailed to the customers upon approval and the customer can personally activate their
service —as hi the manner of all TerraCom phones —by completing an outbound call.
24 See,47 C.F.R.§54.407(c)(2)(i).
16
ExHInIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERIL&C0M
Page 23 of53
Inbound Channel Mathetin.Prospective customers can also apply for,and obtain,Lifeline
service from TenaCom either over the phone or through the Internet.Customers choosing to
obtain service through inbound channels must either fill out an application online,or provide the
relevant information to the customer sales rep over the telephone.In these cases,TenaCom will
verifr eligibiliw via a state database,state administrator,or by reviewing documentation of
eligibility submitted by the applicant in advance of receiving service.TenaCom will not ship a
phone to a customer until it has verified the customer’s eligibility.The customer’s account is
activated upon completion of an outbound call.25 For purposes of”enrollment”in the Lifeline
program,TenaCom will use the date ofthis first completed outbound call from its call records as
the customer’s effective start date.
Online Sales.To apply for TerraCom Lifeline service online,a customer will fill out an
application,provide the necessarv infonnation that all prospective Lifeline customers must
provide,and he taken through successive screens,which clearly explain all relevant legal
eligibility requirements.Wthe customer is seeking to qualify for Lifeline service based on their
participation in a particular program (or income level),the prospective customer may be able to
be qualified by an inbound sales rep who inputs the prospective customer’s infonnation into an
eligibility database (if available for the relevant state).However,in most cases,the prospective
customer will fill out the relevant eligibility forms on the computer.and then send in copies of
the records needed by TenaCom to verify the customer’s eligibility to participate in Lifeline.
Once the prospective customer is successfully verified by TenaCom,the customer can be
enrolled in the service plan they have chosen,and then mailed their handset.As in all cases.the
customer’s Lifeline service is not activated until a customer first completes an outbound call
using their handset.
25 See,47 C.F.R.§54.407(c)(2)(i).
17
EXHIBIT D
CASE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 24 of53
Assuming the customer has successfully completed the online application process,
TerraCom will have all the information it needs to verify the customer is only receiving one
Lifeline subsidy for their household,to verify eligibility,to satisfy its record-keeping obligations,
and to send to USAC in order to populate the duplicates database.The requisite certifications
needed by TeiTaCom to establish service with the prospective customer can he obtained as
electronic signatures.26
TerraCom’s proposed method ofaccepting electronic signatures—on all of its online
certifications and re-certifications—is to allow the customer to create a unique electronic
signature by typing their name,and providing their date of birth and their social security number.
The customer’s name,combined with their date of birth and their social security number,is
sufficiently unique to satisfy the Commission’s new rules for accepting electronic signatures.
Inbound Telema,*etinp.To obtain TelTaCom Lifeline service,a customer can call TelTaCom to
initiate service.The process is very similar to online enrollment,except that instead ofbeing
taken through successive screens.the customer is asked a series ofquali’ing questions by a
customer sen’ice representative.The questions will all be designed to elicit true and accurate
information that is necessary for TerraCom to obtain a complete standard certification form.See
Exhibit 1.I at any time during the conversation,it becomes apparent to the customer service
rep that the prospective customer is unlikely to qualify for TenaCom Lifeline service,the
customer sen’ice rep will explain the issue to the customer and offer to allow the customer to
sign up for one of TenaCom’s non-Lifeline service plans.
On the other hand,ifthe customer provides information indicating that the customer
would be eligible to obtain Lifeline service,the customer service rep will take the customer as
far as possible in trying to qualil5’the customer.For example,if there are no oilier Lifeline
26 See,47 C.F.R.§54.419.
18
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERW&C0M
Page 25 of53
subscribers in the customer’s household,and the customer participates in a Lifeline-eligible
program (or is income-qualified),the customer service rep will try to verify the customer’s
information through a state database (if available).Ifthe customer seems to qualify (through a
database query),then the customer service rep ivill open a file for the customer,take the
customer’s information that is required to be collected from each customer,send the customer
the requisite certification forms for verification of eligibility (or allow the customer to certify
eligibility through au IYR recorded and associated with the customer’s account).aiid request
copies of the evidence that would prove eligibility in cases where a state database is not
available.
As always,ifthe prospective customer fails to qualify for Lifeline service,TerraCom will
explain to the customer why the request was rejected.On the other hand,if the prospective
customer sends in sufficient evidence to qualify for Lifeline eligibility,and adequately certifies
eligibility,TerraCom will notify the customer,and enroll the customer in their requested service
plan,and send the customer the phone they have requested/purchased (ifthe customer has
expressed a handset preference).The customer’s account is activated upon completion of an
outbound call.27 For purposes of “enrollment”hi the Lifeline prograni,TerraCom will use the
date of this first completed outbound call from its call records as the customer’s effective start
date.
2.De-EHrollment
In order to most efficiently use funds set aside for Lifeline customers.the FCC has
adopted rules to ensure that only customers eligible to participate in the Lifeline proam receive
the benefit ofthe Lifeline subsidy.These rules require that Lifeline ETCs “dc-enroll”customers
27 See,47 C.F.R.§54.407(c)(2)(i).
19
ExHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERwCoM
Page 26 of 53
who are no longer eligible to receive Lifeline benefits from the carrier’s list of customers for
whom Lifeline reimbursement is sought from USAC.28
The Commission’s new nile requires cifiTiers to “dc-enroll”customers from Lifeline
enrollment for several reasons:the carrier has reason to believe that the customer no longer
participates in a Lifeline-eligible program.or no longer meets the income-based criteria for
Lifeline eligibility.and the customer fails to prove eligibility within 30 days29;the Fund
Administrator notifies the ETC that either the customer is receiving Lifeline support from more
than one carrier,or that more than one person in the customer’s household is receiving a Lifeline
subsidy30,the customer has failed to “use”a free service for more than 60 consecutive days31:or,
the customer has either thiled to perform their required annual recertification of continued
eligibility,the annual re-certitication that the customer is not in violation ofthe one-per-
household nile,or (for customers who provided a temporary address upon enrollment)the
customer has failed to re-certify their temporary address within the 90 day window (or failed to
provide the carrier with a permanent address within the same time period).32
With the exception of the situation where an ETC is notified by the Administrator that a
customer:customer’s household is receiving duplicate support.each basis for dc-enrollment
requires the carrier to notify the customer that their support is in jeopardy,and provide the
customer with 30 days to either refute or cure their apparent ineligibility to receive Lifeline
28 Id.at §54.405(e)(j)-(4).
29 Id.at §54.4O5(e)(1).
30 Id.at §54.405(e)(2).
31 Id.at §54.405(e)(3).
32 C.F.R.§54405(e)(4).
20
EXHIBIT D
CASE No.TRA-T-l301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 27 of 53
support.33 When an ETC is notified that they are receiving duplicative support for a customer
that has been confirmed to be ineligible by the Administrator,the ETC has 5 days to remove the
ineligible Lifeline recipient from its reimbursement list.
Customers receiving duplicative subsidies not only present a risk to the Fund,but they
present a financial risk to TerraCom ifcustomers not eligible for reimbursement are allowed to
continue to use their phones,and thereby raise TerraCom’s unrecoverable costs.Because it is in
TerraCom’s self-interest to immediately remove from its Lifeline roles those customers
identified by the Administrator as disqualified from receiving Lifeline service.TerraCom will
fithher explain how it will comply with this new obligation.
Putting aside those subscribers recovering duplicative support,every qualifying Lifeline
subscriber is subject to dc-enrollment for reasons both completely outside the ETC’s control (e.g.
customers failing to use service and customers no longer qualifying for the subsidy),and for
reasons that can be avoided if the customer has sufficient notice to con3ply with the rules.For
this reason,TerraCom has adopted procedures to help deserving customers to avoid undeserved
dc-enrollment,and procedures for quickly removing subscribers that the Administrator has
determined to he wasting Lifeline fUnds.
\Vhen TeraCom establishes a customer account,it also places a Lifeline start date on the
account consistent with the date ofthe customefs first outbound call,based on the potential
vulnerabilities of the customer to undeserved dc-enrollment.For example,even’Lifeline
account is subject to recertification on an annual basis that:the subscriber still meets the criteria
to he considered a qualifying low-income customer under §54.409,and that the subscrib&s
household is not receiving more than one Lifeline subsidy.Thus,even’Lifeline subscriber
Id.ot §54.405(e)(1).
21
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEinAC0M
Page 28 of 53
should receive (through multiple channels)an advance reminder that they must re-certify
annually,along with an explanation of the many convenient ways that TerraCom offers
customers to re-certify.TerraCom allows customers to re-certify via dialing a toll free number
(IVR),return text,email,regidar mail,and online through TerraCom’s website.
Moreover.once the duplicate database is up and working.TerraCom will be able to
perform certifications for its customers that have qualified through a database query.Regardless,
though,it is clear that TerraCom.and many other Lifeline-only ETCs,will be sending out annual
re-certification requests on a daily basis.
Annual re-certifications are required for all customers,but TeraCom also creates an
advance reminder for customers that have established their accounts using a temporary’address.
Customers establishing service with a temporary address are potentially difficult to remain in
contact with,so TerraCom sends out text notifications to these customers on a monthly basis.
Similarly,since many—ifnot most—of TerraCom’s Lifeline customers do not pay a
regular monthly bill,TerraCom has tracking soft;vare to notify the customer Wthe customer has
not used their service for more than 60 consecutive days .These notifications are not only
helpful to ensure that the customer does not risk losing their phone by failing to use their phone,
but the notifications also help the customer become more aware of their own usage patterns.
which might cause the customer to choose a different plan (for example,a plan with less monthly
minutes,but minutes that “rollover”to the next month).After notification,ifthe customer fails
to use the phone.it is automatically disconnected by the system.
3.Recordkeeping Requirements
In adopting the Lifeline Refbrm Order the Commission,to paraphrase Commissioner
McDowell’s separate statement.takes the large step of imposing accountability on a government
22
ExHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEmt&CoM
Page 29 of 53
entitlement program.In its directives for what should be included in a carriers compliance plan,
as described in Paragraphs 368-39 1,the Commission frequently states that it would like carriers
to explain and describe how they will comply with the rule changes in the Order.If
accountability eqtials recordkeeping.then this section is perhaps the most challenging and
comprehensive ofthis entire Second Revised Compliance PLan.
While only one section of the new rules.§54.417 is specifically entitled “record
keeping”,most ofthe nile changes either create new records and’or create new recordkeeping
requirements.for purposes of organizing TerraCom’s explanation of how it intends to comply
with the new recordkeeping obligations imposed under the Order,TerraCom will divide records
into “individual account records”and “company-wide records”.The theory behind this
organization of TerraCom’s explanation ofhow it will meet the Order’s recordkeeping
requirements is that,for reporting purposes.TerraCom is required to report on both individual
account compliance (on a company-wide basis).company wholesale compliance,and company-
wide performance compliance.
i.Individual Account Records
For each it1dividtlal Lifeline account.TenaCom will keep customer records for the entire
length of time the customer remains in the Lifeline program.and for certain records within the
individual accounts.TerraCom will keep customer records for 10 ears following customer de
enrollment from the Lifeline program.34 TerraCom will keep the following records for each
suhscnber’s individual Lifeline account:
--date that TerraCom queried the duplicates database35:
See generally.47 C.F.R.§54.417.audLi/lineReform Order,Appendix B.proposed rule §
54.41 7.
47 C.F.R.§54.404(b)(1).
23
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 30 of53
--date and information that TenaCom transmitted to Database36;
--date of transmission oftipdated customer iiff’onnation to Database3’;
--date of transmission of customer dc-enrollment to Database32;
--date of customer service activation and method of activation39;
--certification and re-certification forms for each subscriber40:
--per customer records of revenues forgone by providing Lifeline services in the fonn
requested by the Administrator for periodic reporting to the Administrator upon request41;
--date and database upon which the ETC detennined income-based eligibility42;
--date and documentation/data source used to determine income-based eligibility when no
database was available to determine subscriber eligibility43 which include the following
forms of acceptable documentation:
o prior year’s state,federal,or Tribal tax retun3
o current income statement from an employer or paycheck stub
o a Social Security statement ofbenefits
o a Veterans Administration statement of benefits
o a retirement/pension statement ofbenefits
o an Unemployment/Workers’Compensation statement of benefit
o federal or Tribal notice letter of participation in General Assistance
o a divorce decree
o child support award
o other official document containing income information;
36 Id.at §54.404(b)(6).
Id.,§54.404(b)(8).
38 Id.,§54.404(b)(l0).
See generally,Id.,§54.407(c).
40 Id.,§54.407(d).
41 C.F.R.§54.407(e).
42 Id..§54.410(b)(l)(A).
Id.,§54.41 0(b)(l)(BXi.ii).
24
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page 31 of53
--stale Lifeline administrator documentation ofcustomer eligibility,and subscriber’s
certification of eligibility44;
--dale,database,and program on which ETC determined subscriber eligibility4;
--keep and maintain accurate records detailing data source a carrier used to determine a
subscriber’s program-based eligibility or the documentation a subscriber provided 10
demonstrate Lifeline eligibility46;
--notice ofprogram-certification and customer self-certification,when performed by a
state agency or slate Lifeline administrator47;
--prospective subscriber certification,where subscriber acknowledges 1)Lifeline
qualifications in terms of one benefit per household and the requirement that a violation
ofthe rules could result in dc-enrollment.2)require each prospective subscriber to
provide certain information with which to populate the duplicates database,3)require
each prospective subscriber to certify,under penalty ofperjury.that the subscriber meets
the income-based,program-based.or Tribal Lands criteria for receiving Lifeline,and the
subscriber knows the Lifeline program rules,and will notify the carrier if the subscriber
ceases to qualify48:
--maintain records re-certifying all subscribers remain Lifeline eligible under a qualifying
program or income eligibility,and re-certification by the subscriber that they can confirm
their original certification under §54.410(d),except those subscribers that are required to
be re-certified by state agencies or administrators’9;
--where a state administrator or agency is responsihle for re-certification,the carrier has
to:1)maintain re-certification results from the state,2)maintain the results of each state
administrator’s certification efforts for each subscriber in that state,and 3)where a state
has been unable to re-certify a subscriber,the ETC must keep the record and comply with
the relevant dc-enrollment procedures50;
Id.,§54.410(h)(2).
Id.,at §54.410(c)(1)(A).
46 Id.,at §54.410(c)(l)(iii).
“Id.,at §54.410(c)(2).
48 C.F.R.§54.410(d).
“s’Id..at §54.410(t)(1)-(2).
s°Id.,at §54.410(Q(3)-(5).
25
ExHInIT D
CA5EN0.TRA-T-l301
APPLICATION FOR ETC DEsIGNATIoN,TERIL4C0M
Page 32 of 53
--maintain a record of each subscriber’s re-certification (or failure to re-certify)a
temporary address every 90 days51;
ii.Company-wide Records
The Commission requires ETCs to maintain some “company”records,but it also requires
the ETC to make annual reports.certified by au officer of the company.to the Commission.The
company reporting obligations require company officers to certify company procedures for
maintaining compliance with the rules regarding ETCs participating in the Lifeline program.
The records,on an aggregate basis,that companies have to collect are primarily required to be
collected for reporting purposes.TenaCom will collect the following data,and report it to the
requisite authorities.
--provide,on an annual basis,the results of the ETC’s annual re-certification efforts to
the Commission and the Administrator.For states where the TenaCom has been ranted
state ETC designation.it must report the results of its annual re-certification efforts to the
proper state regulators.and,for Tribal Lands5,the ETC must collect aud report the
results of its Tribal re-certification process to the appropriate tribal government
officials3;
--if the ETC provides Lifeline discounted services to a reseller,it must obtain a
certification from the reseller that it is complying with all relevant Lifeline rules54:
--collect certain outage infonnation for areas in which the carrier owns facilities,the
failure of which.results in an outage lasting greater than 30 minutes in any calendar year
and which affects critical services55;
Si Id.,at §54.410(g).
52 TenaCom will report to the appropriate governing body with respect to Tribal Lands re
certification efforts/results.In some states,like Oklahoma,the type of tribal government
officials (which would regulate service providers)do not exist.lii these states TenaCom will file
its results with the proper local regulator such as the state commission.
47 USC §54.416(b).
Id.,at §54.417(b).
26
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERR.4C0M
Page 33 ofS3
--collect data on the number of complaints per 1,000 connections in the prior calendar
year56;
--certification of compliance with applicable service quality standards and consumer
protection rules57;
--certitication that the carrier is able to fimction in emergency situations58;
--information regarding the terms and conditions of any service plans,and the terms and
conditions of any non-Lifeline plans available to the public9.
4.Reimbursement from USAC
In the Lifeline Reform Order,the FCC eliminated Lifeline reimbursement based on
“projected”lines for which the carrier expects to be compensated based on past growth.Instead,
in the Order,the Commission changed the method of Lifeline reimbursements to “actual”lines
served.60 As explained previously,TerraCom considers a customer “enrolled”,for Lifeline
reimbursement purposes.as of the date the customer completes their first outbound call.To the
dewee it has not already done so.TenaCom will modify its reimbursement requests to comply
with the Commission’s new reimbursement scheme,based on actual lines served.
5.i\larketiug Materials
Id..at §54.422(b)(1).
56 Id.,at §54.422(b)(2).
Id.,at §54.422(b)(3).
58 Id.,at §54.422(b)(4).
47 C.F.R.§54.422(b)(5).
60 Id.at §54.407.
27
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRACOM
Page 34 of53
In its Lifeline Reform Order,the FCC imposed certain obligations on ETCs to clearly
disclose on all of their marketing and advertising materials that the service they are offering is a
Lifeline service,that Lifeline is a government assistance program.that it is only available to
qualifying eligible customers,it is not transferable,and the program is limited to one discount
per household.6’Moreover,all materials describing the service must disclose the name ofthe
ETC providing the service.
TelTaCom will include all of this required iiil’oniiation on all ofits ads describing its
service.TelTaCom is in the process of changing its marketing materials to comply with the new
rules.Since TeraCom will not change its existing advertisements until it is sure it is in
compliance with the Commission’s rules,it has supplied proposed advertising copy.See
Exhibit 3.attached.
6.Financial and Technical Capability to Provide Service
In its Order,the FCC includes a new qualification for carriers seeking to become ETCs:
that they demonstrate they are financially and technically capable of providing the supported
Lifeline service in compliance with the Commission’s rules.62 Because TenaCom is seeking to
have its pending ETC Petition,as amended,granted in tandem with the Commission’s cant of
this Second Revised Compliance Plan,TenaCom will demonstrate that it is financially,and
technically,able to completely comply with all ofthe new Commission rules governing Lifeline
ETCs.
TerraCom can demonstrate that it is financially and technically capable of providing both
wireless and wireline Lifeline service,because it is already successfully providing both services
61 Id.,at §54.405(a)-(d).
62 C.F.R.at §54.20 10),and §54.202(a)(4).
28
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERmtC0M
Page 35 of53
as a designated Lifeline ETC in nine stales and one Commonwealth,serving over 200.000 lines.
TenaCom is not only capable of providing Lifeline-supported service;it is successfully
providing Lifeline-supported services in the slates where it is designated an ETC.In these slates,
TenaCom is growing its customer base,has no disproportionate consumer complaints,mid offers
high quality sen’ice at affordable rates to all its customers.
Nonetheless,TelTaCom will demonstrate,through Exhibit 4 (Declaration of Dale
Sehmick)that it is financially capable of providing Lifeline-only service.TenaCom’s business
model is to serve low-income customers,who may,or may not,be eligible to receive Lifeline-
supported service.So.TeiTaCom does not,and does not intend to,offer exclusively Lifeline-
supported services—and is therefore not exclusively dependent on USAC for its revenue.
TenaCom will also explain that it is on good temis with all of its wholesale vendors,and cmi
afford 10 keep a customer’s service active without depending upon iimiiediate reimbursement
from USAC in order to continue to provide service to its customers.63 lius.it is clear that
TenaCom—with its years as a Lifeline-only sen’ice provider in good standing since first being
designated an ETC in 2004—has only become a more capable and qualified provider of Lifeline-
supported services.
***
As required by the Lifeline Reform Order,in order to take advantage of the
Commission’s conditional grant of blanket forbearance,TenaCom has hereby submitted a
Second Revised Compliance Plan that effectively outlines the measures it will take to address
each specific concern elaborated by the Commission,and even’significant rule change to the
Lifeline program addressed in its Order.The Commission should find that this plan addresses
63 See,Lifeline Refonn Order,at ¶388.
29
ExHIBIT D
CASE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 36 of53
all of its concerns and that the public interest is best served by granting TerraCom the conditional
“blanket forbearance”from Section 2 14(e)O)(A)of the Act and approve the instant Second
Revised C ompliance Plan,as well as TerraCom’spending Amanded Petition for Limited ETC
Designation.For these reasons,TerraCom respectfully requests that the FCC approve this
Second Revised Compliance Plan,and atthe same time grantitspending Amended Petition for
Limited ETC Designation in the subject states ofAlthama,Connecticut Delaware,Florida,New
Hampshire,New York North Carolina,Tennessee,the Commonwealth ofVirginia,and the
District ofColumbia.
Respectfully submitted,
TERRACOM,INC.
Jonathan D.Lee
JD Lee Consulting,LLC
1776 I Street NW
Suite 900
Washington,DC 20006
[phone]
Its Attorney
30
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERILAC0M
Page 37 of53
May 1,2012
31
EXHIBIT D
CASE No.TR4-T-1301
APPLICATION FOR ETC DESIGNATIoN,TERRAC0M
Page 38 of53
EXHIBIT 1:TERRACOM LIFELINE COMPLIANCE PLAN
TerriCom
SECTION 1—RULES
IMPORTANT.[lease mad all of this form camfullyand fill itoutcompletely If you have qaestions,pleaseask for help.Forms thatam not completedaccmrafotywit be
rpleclnd resulting lea delay inyoar service or rejection of yourapplicatiou,
Lifeline isa Federal gonecurnent benefit program that offers a discount 1mm your monthly phone service.Lifeline service is aeailubietm osfy onefine per braastholrt a
household is defined asany indivldavi or goup of irdsldaals who live together at the same addmss and sham income and eupenses.Households am not permitted to
mc&en benefits from multiple pekeders and you may not mcivee multiple Lifeline discounts.You may apply your Lifeline discount to eitherone lanline ormmwireless
namho betpea cannot hannthediscoanl no beth
Violation of theone per household mnpsirmnenl isa violation of Federal Rules snIll msull ri your mmovat [mm the pmgram asd pateotial prosecution by the United
Stolea gosemmesL Applicantswho willfullymake false statements in order to obtain Lifeline benefits can be penished by fine or imprisonmentor can be honedhorn the
Ufoline program
You will be mqaired to annuallyre-certify thatpea continueto qualifyfor Lifeline benefits.
SECTION 2 —ELIGIBILITY BY PROGRAM tesmpate e.slarueasuir 2 sral
If you or a dependent residingin your householdsee mceiaing benefits from one or mom ofthe programs listed below,please check all thatajqiy.You must showproof
ofeligibilityunless we areabletocertify your participation through a state database.
ta ronporeaeiotrnekr Nee*loodoo CO sattowlennnio sentryatoneasu CO aeHoad CO redeni Pe5kencoreaeaaaeoe
CO supplanted Nwonrkeaaroeengram oasestNt Foodsanpe CO seolewen Hone snenyavanniePogromtaecsrt CO sesonoltobooltartsPogonoinetonch Pogrom
CO saernwons CO saemgan2 CO stanengons COsotoorogromi
CO &mudl,aoe MonnomadHosrooron CO sodstar(manned a9eenmrsloto CO redsfroaneuwod tmyaoaronesa4raaPeo COroodneotodeeHogan00 bdan enenareos
SECTION 3—ELIGIBILITY BY INCOMEvampiceearerserrunuonat
if your income is at or below 135%of thefederal paverfy guidelines,as sisows below,pea can qualifyfor Lifeline.
Howrssany pouple are in your Household?
_________
sSdp.qbbbs Oddntea ap.oaroavasad 5o0A.ileoo.d.dp.sbbbfldd nidOa.sdlnet
reman SF5152 gapln tiSdtH S people 535152
2 people 559139 u peeple 150175 tech adelenoal pence tS,t57
m cusurerun scour ccvvut-y evaroast mu.scace’asor ONE or uoeeormnOXM5NThLinen0520W.tryoa mount ooccMssrentus Thanoocu oorccacr eancvcpaoaoran
cusesrar ruesm’nss,sou Mustsurermess oscunurcaTeruns’neu 7n mr seros nus ur cucurounsuireta net cueernvcssrsuar ama.
•Pricr yeats state federal or tribel tan wtum •RetisornenvPonsisr benefit statement •UnemplubmeutMurkersCumpenuabun benetits statement
•Dsnrso decree ci child suppurt document •SaciaI Security henetis statement •Current isesme statement hum emptuber or eaycfwch stub
•Federal ne tribal mike Inner at panlcfratiunin Sumac at Indan MarsGenera Assistance •Vetutars Administration beret :s statement
SECTION 4 —CUSTOMER INFORMATION
_______________________________
11111111111 liii UIDDLSINITIQD J 11111111111 111111
REStDENTIALJPSRMAN5NTADDRESS eu ruerenrocctrraueoi
_______________________________________________
111111111111111111 ICI 11111111111 ImMaWSIPI 11111
TEMPORARYADDRESS sirnopanewssrorauuersseeo manutsccsrrsosst
RaTI 111111111111111111 ICI 11111111111 I5W21I 11111
BILLINGADDRESS rroeemrsn esea emuanmjemsnssrsravuesss
cusfeTi 111111111111111111 ICI 11111111111 I5W1tI 11111
LASH DIGITS OFYOUR SOCIAL 5tCaRIW N’JMSSRI I I I I TRIOAS ID NUMBtRI I I I I I I I I I DATSOF 0lRTZI/L]E]fI I I I I
CORFAGTFIFPHON5NUMfSRI 1111111-Ill II tMAILA110ESSI 11111111111 1111111111
SECTION 5 —QUALIFYING BENEFICIARY (complete it Section t benefluarnire nave elenshanapplrart -in Pnelunah Piogrami
_______
MI best Name____________________________________________________
SECTION 6—STATE REQUIRED CUSTOMER INFORMATION
StateSpecific Reqiimd IDNumber_________________
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 39 of53
IerráCom
SECTION 7—ONE PER HOUSEHOLD
I acknowledge that,to the bent of my knowledge,no one at my household is receiving a Lifeline-supported service from any other provider.
Customer Initials)
SECTION 8—CUSTOMER SIGNATURE
PLEASE READ AND INITIAL THE FOLLOW1NG.BY SIGNING &INALING BELOW,YOU ARE AGREEING TO THE FOLLOWING PROGRAM RULES:
_______
I certify under penalty of perjury that I either participate in the indicated qualifying federal program or I meet the income qualification to
establish my eligibilityfor Lifeline If required to do so,I have provided accurate documentation ofmy eligibility.
I certify I am head of the household,lam not listed as a dependent on another persons tax return lunless over the age of 60)and the address
listed is my primary residence.
________
I confirm local voice service discounts under the low income programs are limited to one per household and that my household is receiving
no more than one Lifeline supported service.If I am participating in another Lifeline program at the time I apply for TerraCom,Inc.Lifeline service,I
agree to cancel that Lifeline service with any other provider.I certify that I will only receive one Lifeline connection,will not have simultaneous or multiple
Lifeline discounts with another provider.I understand that I mustinform TerraCom,Inc.within 30 days if 1111 no longer participate in a federal qualifying
program or programs or my annual hoasehold income exceeds 135%of the Federal Poverty Guidelines;1211 am receiving more than one Lifeline
supported service per household;or (3)1,for any other reason,no longer satisfythe criteria for receiving Lifeline support.I attest under penalty of per
jury that I understand this notification requirement,and that I may be subject to penalties if I fail to follow this rule.
________
I acknowledge that I may be required to re-certify my continued eligibility for Lifeline at any time,and that failureto do so will resaft in the
termination of the my Lifeline benefits.
________
I understand that Lifeline service is a non-transferable benetit,and that I may not transfer my service to any other individual,including another
eligible low-income consumer,
_______
I acknowledge and consent to the use of my name,telephone number,and address to be given to the Universal Service Administrative
Company IUSACI the administrator of the program)and/or its agents for the purpose of verifying that I do not receive more than one Lifeline benefit.
I understand that refusal to grant this permission will mean I am not eligible for Lifeline service.I also authorize TerraCom,Inc.to access any records
required to verify my statements herein and to confirm my continued eligibility for Lifeline assistance
I understand that if I move,I must provide a new address to TerraCom,Inc.within 30 days of my move.I understand that if I provided a
Temporary Address,I must verify withTerraCom,Inc.every 90 days that lam using the same address.I understand that if I fail to do so,I will lose my
Lifeline discount
Bymy signature below,I certity underpenalty of perjury that I have read and understood this turn and that I attest that the information contained in thisapplication
that I have provided is true and correct to the bestof my knowledgeandthat I acknowledge that prodding false or fraudulent information to receive Lifeline benefits is
punishable bylaw
Signature Today’s Date_____________________________________________________
SECTION 9—TRIBAL CERTIFICATION
BY CHECKING HERE AND MV SIGNATURE ABOVE I CERIIFYTHAI MY ADDRESS IS ON FEDERALLY RECOGNIZED TRIBAL LANDS
SECTION 10—INSTRUCTIONS
Mail or Fan completed form to:TenaCom,Inc.
Faa:1 871 211 6011 Attention:Lifeline Depurtmreit
4011 Memorial Road.Suite 500,Oklahoma Gty,OK 73114-2287
COMPANY USE ONLY
I hereby certifythaI I have wotewed and nerifled the required docurnmitation for the programisl indicated by the applicant torthe use ot Lifeline eligibilityor verified the
applicants eligibilityvia the available stale database.I also certify that I have resiowedthe secessary decuruenlahon to verify identity and address ol theapplicant,and I
am aware that falsification nt this is suLedto termination or legel action by the company.
Compvn,j Rrpmrnutve-Prnt Fy11 N,ve (So(nviod ComparvOepesenutve Sgrarv’e
Ens kmvnr Somber
t.’nbiIe Comber
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERRAC0M
Page 40 of53
H
TerraCom,Inc.
Supplemental Lifeline Training
In additioti to your standard Lifeline training documents please refer to this information,which
will he updated as needed as we expand our markets.If you have any questions about this
material or Lifeline policies and procedures please see your supervisor.In addition the audit and
compliance departments are always available for questions and clarifications.Remember
however that TerraCom maintains an open door policy and should you have any concerns yoti
are always welcome to bring them to any member of management.senior management or
executive management.
Customer Eligibility
To help you discuss and explain the Lifeline/Link Up application with the applicant,we have put
together a checklist of items which can be used to help determine a custornef s eligibility as
outlined below.Please go through this checklist with each applicant.
Potentia]applicants:
can only qualify for one Lifeline assistance program per household
cannot receive Lifeline service from more than one company
D cannot receive both Lifeline wirelinc and Lifeline wireless service
At the same time
At the same address
1 From more than one company at the same time
can only qualify ifthey participate in one of the eligible low income
programs listed on the application for Lifeline/Linkup
must certify that they are the head of household
must notify TerraCom immediately if they are no longer eligible for
discounted service.
As a TerraCoin representative,you are the first line ofresponsibility to ensure that the customer
is an eligible participant and that applications arefilled in accurately.
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page 42 of 53
Important Things to Remember:
Social Security Numbers
Some states will require a social security number or another customer identifying number
(i.e..DSHS number).These are listed in each state mandated form and must be obtained.
Please refer to the matrix blow for the correct way to handle a social security number in a
particular state.
Duplicate Address
The rules of the Lifeline program oily allow one Lifeline service per household.For
example.this means the customer can have either a Lifeline discount on one wireless or
one wireline service,but not both.
In the case where multiple households may be using the same address (i.e.,a oup
home)you are responsible for informing the customer of the rule.In most cases there will
be a unit number,bed number or apartment number.These must be included in the
address.Should an applicant claim they are separate households it is your responsibility
to know your neighborhoods and customers and reject an applicant where you believe
they are not properly meeting the rules.Similarly,applicants with the same name and
address must also be rejected.
Beneficiary Name
An applicant may use the benefits of a dependent to qualify for the Lifeline program
should the dependent reside in the household.In many states the state mandated form has
a field for name of the Qualifying Beneficiary and should be completed if the situation
applies.
ExHIBIT D
CASE No.TRA-T-1301
APPLIcATION FOR ETC DESIGNATIoN,TERRACOM
Page 43 of53
LIFELINE POLICIES
Usage Non -Activity Policy
A customer will no longer be eligible for a Lifeline discount ifthey do not ttse the service
for a specified period oftime.usually 60 or 90 days.
Once au account has been moved to a non-usage status,the subscriber has up to 30 days
to re-enroll by contacting the company.If a customer does not re-enroll or call a customer
service representative within 30 days ofthe dc-enroLlment,the phone service wiLl be
deactivated (any afrthue will be lost).Note:A subscribers must provide proof of
eligibility and pay an activation fee to re-enrolL in the wireless Lifeline program.Usage
can be:making or receiving a call,making or receiving a text message,checking a
voicemail message,checking thftime balance,downloading content,data usage,or adding
afrtime.
Link Up Discount
A customer may only receive the Link Up discount once at any address,for example,
should a customer receive a Link Up discount for Lifeline wireline service then
disconnect that service and subsequently sii up for a Lifeline wireless account at the
same address,they are responsible for paving the full amount of the service activation
fee.
They can only receive the Link Up discount again if they have moved and are starting
new service and that new address.
Please note that subscribers are responsible to pay any remaining portion of the activation
fee not covered by Link-Up.Subscribers are solely responsible to pay for the entire
activation fee if they are not eligible for Link-Up.Activation fees due by the subscriber
may be deferred over a period of 12 months (balance at time of activation divided by 12
and billed monthly).
The matrix below is to be used as a quick reference guidefor the applicable rules by
state:
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEIut&CoM
Page 44 of 53
!/S/DDSS No &l325
Loan 1W5V3D55 No 3D
Myiaml 3/2D55 No 3D
Neiak V53/EDLS No 3D
BR 4,fMseIyco0octthe Etc AFNounge
cwno,rec&ftoIoe
9 RrtoLocIfrMerytrdIistfoK 5CcosMtNouoae
cocIenficc%nort
RN FOotuoNycoooci thecooouot,Foc SOoys,AthoUtoec CsS€otçJirkonfro5a5ettttyareaoc4 otEom 0.ttRe
otoootOehopfrpF,ooakeoespWVrRabtIf
dfloanwpoonwffetfldesvy5outh’oNyOe
FtaIDoemoNeaNhcrd4nSoNcaomre,tkrctontkhot
ntcstooes,oaotthamfoococwoflltn ConFao5o5oEoade
wannmtiorordroNowbvQote LiFelotooM:,.
NB McmtctOotcsowsfsr&Not FOcktkn0000
tota Ldqooonn
9 kpjzRjconttfreciotonwfsro-ST coo dtFooLooto,Wm79CTCW9fl
9 SeeNotes ST coswtNouoo Cafit9to SSo/UDUeçnodFom’o.a1dbycscRpcd
ooaWoocsitMro*rItrDcotW
oourcflccNtoScioweMJN.Neo’Teoot:tstoweeciooeoctos&oc
t22’cathoMdefl4oFkbtoo9otnot33wd
odflrasdalcoe50oott tNi wee wMwSe,oa,noooo
bFobeEk.WeanNodaoaEooroweooowbtoooffybItyooan
aNeetoyoofooMcothemwothTh.R0Th:ThER5I5AC5FSTFICAT:ON FORM
VURSUNWECM SW FUN NRNUNCI{99(5UNDOFOEFIRST50ffENCEUNDER
WffON55UJLSSEUWS FORAFRSFNIOEO(’JSFOKjONUNREUND FODROS.
wdkwRm000qor€cWñ3300woosL
lute Ilee*elfl Irtafkces b5oP Ci*owe utaISnotR
Eeswdflate a •
-.a a
kNanoa ‘3flDl1 No 3D 5 5 krclecoco:ttcctoorrutxrc LD005EbeszaooW
orfcor
kn.eFscor/NrutIyco0ect:he SteeRswttNoiEngo
cw.oni&orrr-cotiEotion
cot fcoIioniFrce cçciaRicre
boodcertWccMn SeeNot
oMajeern 8/59/5(95 Rer Stee-WED ST
1•Sl
Pan &o UWJDDSS No 3D S
Tess 55)DC55 No 3D 0,0
WoMRN9LnEa 4/55/5(55 No 3D S BR MsJ:Rycortcoteccwtoroorfoorc St,swNhocsioagc
crorcaticot
3D 50 F
E soo taco,
5’4eoMo 5Fd9o,
FOtRnpPrW.4.u9T4D*9s.
F -Qg55
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 45 of53
STATE ELIGIBLE PROGRAMS
The following is a current list of eligible programs by state:
ARKANSAS
HUD/Federal Public HousingtSection 8
Medicaid
Low Income Home Energy Assistance Program (LIHEAP)
National School Lunch Program
Supplemental Nutrition Assistance Program (SNAP)f/ka food Stamps
Supplemental Security Income
Temporary Assistance for Needy families
Transitional Employment Assistance (TEA)
Income Based -135%of the federal Poverty Guidelines
IOWA
Low hicome Home Energy Assistance Program (LIHEAP)
Medicaid
National School Lunch Programs Free Lunch Program
Supplemental Nutrition Assistance Program (SNAP)Food Stamps
Temporary Assistance for Needy Families
federal Public Housing Section $Housing Assistance
Supplemental Security Income
Income Based -135%of the Federal Poverty Guidelines
LOUISIANA
Medicaid
Supplemental Nutrition Assistance Program (SNAP)food Stamps
Supplemental Security Income (SSI)
Temporary Assistance for Families (TANF)
Low Income Home Energy Assistance Program (LIHEAP)
National School Lunch Programs free Lunch Program
Federal Public Housing Section 8 Housing Assistance
Income Based -135%of the federal Poverty Guidelines
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERRCoM
Page 46 of53
MARYLAND
Supplemental Security Income
Medicaid
Temporary Assistance for Needy Families (TANF)
Supplemental Nutrition Assistance Program (SNAP)Food Stamps
National School Lunch Program
Federal Housing Assistance or Section 8
Maryland Energy Assistance Program (MEAP)
Temporary Disability Program (TDAP)
Public Assistance to Adults (PAA)
Electrical Universal Service Program (EUSP)
NEVADA
Supplemental Security Income
Medicaid
Temporary Assistance for Needy families (TANF)
Supplemental Nutrition Assistance Program (SNAP)food Stamps
National School Lunch Program
Federal Housing Assistance or Section $
Low Income Home Energy Assistance Program (LIHEAP)
OKLAHOMA
Supplemental Security Income (SSI)
Food Distribution Program on Indian Reservations
Vocational Rehabilitation (including aid to the hearing impaired)
Tribal Administered Temporary Assistance for Needy Families
Temporary Assistance for Needy Families
Oklahoma Sales Tax Relief
National School Lunch Program’s free Lunch Program
Medical Assistance (Medicaid/Sooner Care)
Low Income Home Energy Assistance Program
Head Start (must meet income qualifying standard)
Food Stamps /SNAP
Federal Public Housing Assistance
Bureau of Indian Affairs General Assistance
PUERTO RICO
Supplemental Nutrition Assistance Program (SNAP)f’k’a Food Stamps
Supplemental Security Income (SSI)
Low Income Home Energy Assistance Program (LIHEAP)
Medicaid
Federal Public Housing Assistance
Temporary Assistance for Needy families
Natiomial School Lunch Program’s Free Lunch Program
Income Based -100%ofthe federal Poverty Guidelines
EXHIBIT D
CASE No.TRA-T-130l
APPLICATION FOR ETC DEsIGNATIoN,TERCoM
Page 47 of53
TEXAS
Supplemental Security Income (581)
Supplemental Nutrition Assistance Program (SNAP)fkJa Food Stamps
Low Income Home Energy Assistance Program (LIHEAP)
Medicaid
federal Public Housing Assistance
Health Benefit Coverage under Child Health Plan (CHIP)
Income Based -150%of the Federal Poverty Guidelines
WEST VIRGINIA
Temporary Assistance for Needy Families
Supplemental Security Income
Supplemental Nutrition Assistance Program (SNAP)food Stamps
School Clothing Allowance
Medicaid
Low-Income Home Energy Assistance Program (LIHEAP)
Federal Public Housing Assistance
National School Lunch Program’s free Lunch Program
WISCONSIN
Homestead Tax Credit
Badger Care
State Supplemental Security Income
Medical Assistance/Iviedicaid
Supplemental Nutrition Assistance Program (SNAP)f/k/a Food Stamps
Low Income Home Energy Assistance Progrmn (LIHEAP)
Wisconsjn Works
ExHIBIT D
CAsENO.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERCoM
Page 48 of 53
EXHIBIT 3:TEREACOM LIFELINE COMPLIANCE PLAN
ExHrnIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERRAC0M
Page 49 of53
WWW.TERRACOMWIRELESS.COM
WWW.TERRACOMWIRELESS.COM
EXHIBIT 4:TEPRACOM LIFELINE COMPLIANCE PLAN
Before the
FEDERAL COMMUMCATIONS COMMISSION
Washington,D.C.20554
)
In the Matter of )
Telecommunications Carriers Eligible for )WC Docket No.09-197
Universal Service Support
Lifeline and Link Up Reform and Modernization )WC Docket No.11-42
TerraCom,Inc.Blanket Forbearance )
Compliance Plan )
Petition ofTerraCom,Inc.for Limited Designation
as an Eligible Telecommunications Carrier for
Purposes of Receiving Low Income Support Only )
Exhibit 4
DECLARATION OF DALE SCUMICK
VP,TerraCom,Inc.
1).My name is Dale Schrnick.I am the Vice President of TerraCom,Inc.(“TerraCom”).As
part ofmy duties,I am in charge of ensuring that TerraCom is in compliance with all applicable
regulations and laws.My business address is 401E Memorial Road,Suite 400,Oklahoma City,
OK 73114.TerraCom provides over 200,000 combined wireless and wireline lines to low
income subscribers through the Universal Service Administrative Company’s (“USAC’s”)
Lifeline program.TerraCom sells its wireless and wireline services through 1 wholly-owned
retail store and through inbound online sales.TerraCom has been in business for over almost $
years and employs approximately 73 people.
EXHIBIT D
CASE No.TRA-T-1301
APPLIcATIoN FOR ETC DESIGNATION,TERRAC0M
Page 50 of53
2.)The purpose of my declaration is to satisfy the requirements of new rule §54.2O2(aX4),
which requires carriers seeking “blanket forbearance”to provide Lifeline-only service to
demonstrate,with detailed information,that they are financially and technically capable of
providing Lifeline-only wireless services.Consistent with the Lfeline Reform Order,and the
rule implementing this obligation,I will provide more than sufficient information to satisfy the
Commission that TerraCom meets these requirements.
3.)t will first address TerraCom’s technical capability to provide Lifeline-only service.
While a fair amount of TerraCom’s total wireless service offering is satisfied by its underlying
carriers’existing certifications that they have sufficient back up power to remain functional in an
emergency,there are portions of TerraCom’s wireless service—as consumed by TerraCom’s
customers—that are provided over TerraCom owned,or controlled,facilities.In compliance
with rule §54.202(a)(3),TerraCom certifies that it does maintain sufficient back up power for its
own facilities to ensure that the total TerraCom customer experience will be preserved in the
case of an emergency situation.In other words,TerraCom has sufficient power to keep its
facilities running in tandem with its wireless wholesale partners in the case of an emergency.
4.)With respect to the detailed financial information the Commission has requested in the
Lfetine Reform Order,’the Commission explained that a carrier seeking “blanket forbearance”
(from the Act’s facilities requirement)could prove that it is financially and technically capable of
becoming a Lifeline-only ETC by addressing certain factors.Specifically,in order to
demonstrate its financial ability to provide service,lerraCom can certify that:I)it offers service
to low-income customers—all low income customers,and notjust those customers that are
1 Lfetine Reform Order,¶388.
EXHIBIT D
CASE No.TRA-T-130l
APPLICATION FOR ETC DESIGNATION,TERRCoM
Page5l of53
eligible to receive reimbursements from the Lifeline program;2)TerraCom has been in business
for almost 8 years;3)TerraCom has never been exclusively dependent on receiving Lifeline
subsidies to operate,and to ensure that all its consumers will receive the service they have been
promised;4)TerraCom has never been subject to state or federal enforcement sanctions,and
TerraCom has never been the subject of a state revocation proceeding.Thus,TerraCom has
almost $years of successfully providing valuable customer service (wireline and wireless)and
growing its business as a Lifeline-only ETC.
5.)finally,while not specifically requested,TerraCom has decided to offer up a tittle more
financial information designed to assure the Commission that it is financially capable of
providing good quality,reliable service to customers.first,TerraCom is a financially stable and
liquid service provider.This fact is relevant in assessing TerraCom’s lack of reliance on
Universal Service fund reimbursements in order to continue providing service to end users.
6.)finally,the most significant piece of information that TerraCom can possibly convey to
assure the Commission of its ability to successfully provide service (aside from TerraCom’s long
track record of successfully providing Lifeline service)is its good commercial relationship with
all ofits vendor partners.I can certifS’that TerraCom is current in all of its accounts with all
relevant vendors who contribute to the provision of TeimCom’s wireless service.This provides
the Commission with the additional assurance that other market participants—parties who will
lose money ifTerraCom is not financially capable ofproviding wireless service—are confident
in TerraCom’s ability to continue to provide service to its customers.
7.)Taking all certifications together,TerraCom has more than demonstrated—within the
financial and technical capability requirement—that it has addressed all of the questions raised in
3
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERIt.CoM
Page 52 of53
the Order,and provided additional assurances to the Commission regarding TerraCom’s ability
to satisfy this requirement.Then,of course,there is the simpler demonstration contained herein
which shows that TerraCom’s long history of providing service in compliance with all relevant
state and federal rules—and at no cost to the Fund (to the best of TerraCom’s knowledge)—for
the past 8 years is more than ample demonstration that TenaCom meets the Commission’s new
requirements for demonstrating fmancial and technical capability to be a service provider.
8.)This concludes my declaration.
Dale Schmick
Dated:3tZtt ?
4
EXHIBIT D
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERCoM
Page 53 of53
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT E
EXHIBIT E
CAsEN0.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRACOM
Page 1 of4
PUBLIC NOTICE
Federal Communications Commission News Media information 202!418-0500
445 12 St.,S.W.Internet:http:!!www.ftc.gov
Washington,D.C.20554 Tfl’:1388-835-5322
BA 12-828
Release Date:May 25,2012
WIRELINE COMPETLTION BUREAU APPROVES THE COMPLIANCE PLANS Of
AMERiCAN BROADBAND &TELECOItIMUNICATIONS,BUDGET PREPAY,CONSUMER
CELLULAR,GLOBAL CONNECTION,TERR4COM AND TOTAL CALL
WC Docket Nos.09-197 and 11-42
The Wireline Competition Bureau (Bureau)approves compliance plans ofsix
telecommunications carriers:American Broadband &Telecommunications;Budget Prepay,Inc.:
Consumer Cellular,Inc.;Global Connection,Inc.of America;TerraCom,Inc.:and Total Call Mobile,
Inc.filed pursuant to the Lifeline Re/örn,Order as a condition of obtaining forbearance from the facilities
requirement of the Communications Act of 1934,as amended (the Act),for the provision of Lifeline
servlce.i
The Act provides that in order to be designated as an eligible telecommunications carrier for the
ptirpose of universal service support,a carrier must “offer the services that are supported by federal
universal service support mechanisms -either using its own facilities or a combination of its own
facilities and resale of another carrier’s services ,,2 The Commission recently amended its rules to
define voice telephony as the supported service and removed directory assistance and operator services,
among other things,from the list of supported services.3 As a result of these amendments,many Lifeline-
only ETC’s that previously met the facilities requirement by relying on operator services,directory
assistance or other previously supported services no longer meet the facilities requirement of the Act4 In
the Life/me ltefirni Order,the Commission found thata grant of blanket forbearance of the facilities
See Lifeline andLink (‘Reform andModernrtation etaf WC Docket No.11-42 ci at,Report and Order and
further Notice of Proposed Rulcmaking.FCC 12-11.at paras.379-380 (rd.Feb 6,20t2)(Lifehne Reform Order).
A list of the compliance plans approved through tIns Public Notice can be found in the Appendix to this Public
Notice.
47 U.S.C.§211(e)(1)(A).
See Connect America 1-md.WC Docket No.10-90 Ct a!..Report mid Order mid Furtlser Notice of Proposed
Rulemaking,26 FCC Red 17663,17692-93.paras.77-7$.80(2011)((1SIK’C’?yansfirmation Order):pets.for
review pending sub nom.in re:i’11-161,No.1 1-990(1 (10th Cfr.filed Dcc.8,2011):Connect America Fund,
WC Docket No.10-90 Ct at..Order on Reconsideration.26 fCC Red 17633,17634-35.pma.4 (2011)(USEICC
lrans/brmatw,i Order on l?cconsideraiion).
See Lifeline iteform Order.FCC 12-11.at para.366,App.A.USE 1CC Transformation Order on Itc’consideration
at para.4.Sonic ETCs Isave included language in theIr compliance plans indicating that they Isave facilities or plmi
to acquire facilities in the future See.e g.,Budget PrePay.Inc.Petition for Designation as an Eligible
Telceomniunications Carrier,WC Docket Not.(19-197 and 1142.Compliance Plan of Budget PrePay.Inc.at 3 n.6
(filed Ma L2012).To the extent ETCs seek to avail themselves of the conditional forbearance relief established in
the I,ifrline ReJbr,n Order,we presume they lack facilities to pro ide the supported sen ice tinder section 51.101 and
54.401 of the Commission’s rules.See 47 C.f.R.§54.101 and 54.401.Such ETCs must comply with the
compliance plan approred herein in each state or territory rshere they are designated as an ETC.regardless of their
claiiim of facilities for other purposes,such as eligibilit for state utuversal sen ice finding
EXHIBIT E
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page2of4
requirement,subject to certain public safeN and compliance obligations,is appropriate for carriers
seeking to provide Lifeline-only service.5 Therefore,in the L fe/the Reform Order,the Commission
conditionally granted forbearance from the Act’s facditics requirement to all telecommunications carriers
seeking Lifeline-only ETC designation.subject to the following conditions:(1)compliance with certain
911 and enhanced 911 (‘E91 1)public safety requirements:and (2)Bureau approval of a comphancc plan
providing specific information regarding the caiTier and its service offerings and outlining the measures
the carrier will take to implement the obligations contained in the Order.6
The Bureau has reviewed the compliance plans listed in the Appendix for conformance with the
Lifline Reform Order,and now approves those six compliance plans.’
Filings,including the Compliance Plans identified in the Appendix,and comments are available
for public inspection and copying during regular business hours at the FCC Reference Infonnation
Center.Portals II.445 l2 Street,SW.,Room CY-A257.Washington.D.C.20554.They may also be
purchased from the Commission’s duplicating contractor.Best Copy and Printing,Inc.,Portals II,445
12 Street,SW..Room CY-B402.Washington,D.C.20554,telephone:[phone],fhx:(202)448-
5563.or via email www.bcpiweb.com.
People with Disabilities:To request materials in accessible formats for people with disabilities
(Braille,large print,electronic files,audio format),send an email to fcc504infcc.gov or call the
Consumer &Govcmmental Affairs Bureau at [phone] or TTY [phone].
For ifirther information,please contact Divya Shenoy.Telecommunications Access Policy
Division.\Vireline Competition Bureau at [phone] or ‘FEY [phone].
-FCC-
See L(felineRefomi Orde;;FCC 1211 st psras.36t-38l.
See Ed st psras 373 snd 389 Subsequently,the Bureau provided guidsnce for carriers submitting compliance
plans pursuant to the Lifeline ReJbnn Order.Wireline Competition Bureau Provides Ouidancefor the Submission of
Compliance Plans Pursuant to die Lifeline Reform Order.WC Docket Nos.09197 and 11-42,Public Notice,27
FCC Red 2186 Wire1ine Comp.Bur.2012).
The Commission has not acted on any pending ETC petitions filed by these carriers,and this Public Notice only
approves the compliance plans ofthe earners listed above.While these compliance plans contain infonastion on
each carrier’s Lifeline offering,we leave it to the designating suthonty to determine whether or not the carrier’s
Lifeline offerings are sufficient to serve consumers.See Lifeline Reform Order,FCC 12-11 at parss.50 and 387.
2
EXHIBIT E
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERIt4C0M
Page 3 of 4
Appendix
Petitioner Conìpliance Plans Date of Filing Docket
As Captioned by Numbers
Petitioner
American Broadband &Telecommunications American April 27,2012 09-197:1142
Broadband &
Telecommunications
Revised Compliance
Plan
Budget PrePay.Inc.Compliance Plan of May 1,2012 09-197;1142
Budget PrePay.Inc.
Consumer Cellular,Inc.Consumer Cellular April 1$,2012 09-197;1142
Amended Revised
Compliance Plan
Global Connection.Inc.ofAmerica Global Connection April 30,2012 09-197;11-42
Inc.of America
Compliance Plan
TenaCom.Inc.TeiraCom,Inc.May 1,2012 09-197:11-42
Second Revised
Blanket Forbearance
Compliance Plan
Total Call Mobile,Inc.Total Call,Inc.May 17,2012 09-197:1142
Revised Compliance
Plan
EXHIBIT I
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRAC0M
Page4of4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT F
EXHIBIT F
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRCoM
Page 1 of2
EXHIBIT F
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page2of2
WWW.IERRACOMWIRELESS.COM
‘1.855.221.9445
WWW.TERRACOMWJRELESS.COM
BEFORE TUE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT G
EXHIBIT G
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 1 of4
Federal Corn munications Commission FCC 12-11
APPENDIX C
Certification Requirements for Li feline Subscribers
Pursuant to the Universal Service Low-Income Order.all ETCs (or the state Lifeline program
administrator,where applicable)must provide the following information in clear.easiiy understandable
language on their initial and annual Lifeline certification forms:
Household Information for Initial and Annual Certification forms
Contact Information:All certification forms must ask for the Lifeline subscriber’s name and address
information.
o ResidentialAddress:Prior to providing service to a consumer,ETCs must collect a residential
address from each subscriber,which the subscriber must indicate is his/her permanent address,
and a billing address,if different than the subscriber’s residential address.ETCs should inform
subscribers that.,ifthe subscriber moves,they must provide their new address to the ETC within
30 days ofmoving.
A consumer who lacks a permanent residential address (e.g.,address not recognized by the
Post Office,temporary living situation)must provide a temporary residential service address
or other address identifying information that could be used to peiform a check for duplicative
support.
o Consumers usIng Post Office Box Addresses:Lifeline subscribers may not use a post office box
as their residential address.An ETC may accept a P.O.Box or General Delivery address as a
billing address,but not a residential address.
o Consumers with Temporan’Addresses:ETCs must collect permanent addresses from
subscribers.If a subscriber does not have a permanent adcfress.ETCs must:
Inform applicants that,ifthey use a temporary address,the ETC will attempt to verify every
90 days that the subscriber continues to rely on that address,and (as noted above)the
subscriber must notify the ETC within 30 days of their new address after moving.
Infoun the subscriber that if he or she does not respond to the ETC’s addre.ss verification
attempts within 30 days,the subscriber may be de-enrolled from the ETC’s Lifeline service.
Multiple Households Sharing an Add,ess:Upon receiving an application for Lifeline support,all
ETCs must check the duplicates database to determine whether an individual at the applicant’s
residential address is currently receiving Lifeline-supported service.The ETC must also search its
own internal records to ensure that it does not already provide Lifeline-supported service to someone
at that residential address.
o If nobody at the residential address is currently receiving Lifeline-supported service,the ETC
may initiate Lifeline service after determining that the household is otherwise eligible to receive
Lifeline and obtaining all required certifications from the household.
o If the ETC determines that an individual at the applicant’s residential address is currently
receiving Lifeline-supported service,the ETC must collect from the applicant upon initial
enrollment and annually thereafler a worksheet that:(1)explains the Commission’s one-per-
household rule:(2)contains a check box that an applicant can mark to indicate that he or she lives
at an address occupied by multiple households:(3)provides a space for the applicant to initial or
certify that he or she shares an address with other adults tvho do not contribute income to the
240
EXHIBIT G
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TEIt.RCOM
Page 2 of4
Federal Communications Commission FCC 12-11
applicant’s household and/or share in the hou.sehold’s expenses:and (4)notifies applicants of the
one-per-household ceitification requirement adopted below and the penalty for a consumer’s
failure to make the required one-per-household certification (i.e..de-enrolhuent).
One-per-Household Certification:All consumers must certify that they receive Lifeline support for a
single subscription per household.
o All ETCs (or state agencies or third-parties,where they are responsible for Lifeline enrollment in
a state)must obtain a certification from the subscriber at sign up and annually thereafter attesting
under penalty of per ury that the subscriber’s household is receiving no more than one Lifeline-
supported service.In addition,the certification foiin must include a place for the subscriber to
separately acknowledge that,to the best of his or her knowledge,no one at the consumer’s
household is receiving a Lifeline-supported service from any other provider.
o The certification form must explain in clear,easily understandable language that:(1)Lifeline is a
federal benefit;(2)Lifeline service is available for only one line per household;(3)a household is
defined,for purposes ofthe Lifeline program,as any individual or group ofindividuals who live
together at the same address and share income and expenses:and (4)households are not
permitted to receive benefits from multiple providers.
o The certification form must also contain clear,easily understandable language stating that
violation of the one-per-household requirement would constitute a violation of the Commission’s
rules and would result in the consumer’s dc-enrollment from the program,and potentially,
prosecution by the Linited States government
Eligibility Information for Initial and Annual Certification Forms
IUentitvhi/rrnation:all certification forms must ask for the Lifeline subscriber’s date ofbirth and
the last 4 digits ofthe subscriber’s social security number.
Establishing eligibilityfor Lifeline:
o The certification form should be written in clear,easily understandable language and should
include a place for the customer to sign under penalty ofperjury attesting to his/her eligibility for
Lifeline.All ETCs (or the state Lifeline program administrator,where applicable)should obtain
the consumer’s signature certifying under penalty of perjury that:
•The consumer either participates in a qualifying federal program or meets the income
qualifications to establish eligibility for Lifeline;
•The consumer has provided documentation ofeligibility,if required to do so;
•The consumer attests that the information contained in Iris or her application is true and
correct to the best of his or her knowledge and acknowledging that providing false or
fraudulent information to receive Lifeline benefits is punishable by law.The certification
form should explain that Lifeline is a govemment benefit program and consumen who
willfully make false statements in order to obtain the benefit can be punished h fine or
imprisonment or can be barred from the program.
o The certification form must include space for consumers qualif’ing for Lifeline under an income-
based criterion to certify the number of individuals in their household.
o ETCs (or the state administrator,where applicable)should also obtain the consumer’s initials or
signature on the certification form acknowledging that the consumer may he required to re-certify
his or her continued eligibility for Lifeline at any time,and that failure to do so will result in the
termination of the consumer’s Lifeline benefits.
241
EXHIBIT G
CASE No.TRA-T-l3Ol
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 3 of4
Federal Communications Commission FCC 12-11
•Consunier no longer eligible for Lifeline:The certification form must notify the consumer using
clear,easily understandable language that he or she must inform the ETC within 30 days if(l)the
consumer ceases to participate in a federal qualifying program or programs or the consumer’s annual
household income exceeds 135%ofthe Federal Poverty Guidelines (2)the consumer is receiving
more than one Lifeline-supported service;or (3)the consumer,for any other reason,no longer
satisfies the criteria for receiving Lifeline support.Additionally,prior to enrolling in Lifeline,
consumers must certify attest under penalty ofperjury that they understand the notification
requirement.and that they may be subject to penalties if they fail to follow this requirement.
•Tribal eligibility:Consumers seeking Tribal lands Lifetine support must cettifv that they reside on
Federally-recognized Tribal lands.
•Non-transferability ofLifeline benefit:The certitication form should inform consumers that Lifeline
service is a non-transferable benefit,and that a Lifeline subscriber may not transfer his or her service
to any other individual,including another eligible low-income consumer.
Annual Re-certification of Consumer Eligibility for Lifeline
•By the end of 2012,each Lifeline subscriber enrolled in the program as of June 1,2012 must provide
a signed re-certification form to the ETC (or the state Lifeline administrator,where applicable)
attesting to their continued eligibility forLifeline.This signed certification should collect all ofthe
subscriber information noted above,including an updated address.Consumers may provide the re
certification in writing,by phone,by text message,by email,or otherwise through the Internet.
•Alternatively,where a database containing consumer eligibility data is available,the carrier (or state
Lifeline administrator,where applicable)must query the database by the end of 2012 and maintain a
record of what specific data was used to re-certify the consumer’s eligibility and the date that the
consumer was re-certified.
•The ETC or the state administrator,where applicable,must report the results oftheir re-certification
efforts to USAC,the Commission.and the relevant state cormnission (where the state has jurisdiction
over the carrier)by January 31,2013.ETCs or the state administrator,where applicable,should also
provide their re-certification results to the relevant Tribal government,for subscribers residing on
reservations or Tribal lands.
•ETCs must remind consumers about the annual re-certification requirement on the ETC’s certification
form that is completed upon program enrollment and annually thereafter.
Database
•‘o,isent toprovide information to the database:An ETC must obtain acbiowledgement and consent
from each of its subscribers that is written in clear,easily understandable language that the
subscriber’s name,telephone number,and address will be divulged to the Universal Service
Administrative Company (1/SAC)(the administrator of the program)and/or its agents for the purpose
ofverifying that the subscriber does not receive more than one Lifeline benefit.In the event that
USAC identifies a consumer as receiving more than one Lifeline subsidy per household,all carriers
involved may be notilied so that the consumer max’select one service and he dc-enrolled from the
other.
242
ExHIBIT G
CASE No.TRA-T-130l
APPLICATION FOR ETC DEsIGNATIoN,TERRAC0M
Page4of4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT H
EXHIBIT H
CASE No.TRA-T-1301
APPLIcATIoN FOR ETC DESIGNATION,TERRAC0M
Page 1 of2
SECTION 7-ONE PER HOUSEHOLD
[]I acknowledge that,tothe best at my knowledge no one atmy household is reoviokig a tJellne-suppoited service tram any sther prodder
(dv Inthax)
SECTION 8-CUSTOMER SIGNATURE
PLEASE READ AND INITIALTHE FOLLOWING BY SIGNING &INITIALING BELOW,YOU ARE AGREEING TO THE FOLLOWING PROGRAM RULES
E l certify under penalty of perjury that I either participate in the indicated qualifying federal plogroun or I meet the income qualification to establish my
eligibility for Lifehne If required to do so,I have provided accurate documentation of my eligibility
E l certify I am head of the household,I am an adult 18 years or older (unless an emancipated minor),I em not listed as a dependent mi wiother
person’s tan return (unless over the age of 50)and the address listed is my pnmary rewdence
I confirm local voice service discounts under the low income programs are limited to one per household and that my household is receiving no more
than one Litalma supported service If I am participating in another Lifeline program at the time I apply for TeiraConi Lifeline service I agree to cancel
E that Lifeline service with any other provider I certify that I will only receive one Lifeline connection,will not have simultaneous or multiple Lifeline
discounts with another provider I understand that I must inform Teiracom within 30 days if I (1)no longer participate in a federal qualifying program
or programs or my annual household income exceeds 135°C at the Federal Poverty Guidelines,(2)1 am receiving more than one Lifeline-supported
service per household,or (3)I,for any other reason no longer satisfy the oritena for receiving Lifeline support I attest under penalty of perjury that I
understand this notification requirement,and that I may be subted to penalties ft tail to follow this rule
E l acknowledge that I may be required to re-certify my continued eligibility for Lifeline at anytime,and that twlure to do so will result in the termination
of the my Lifeline benefits
E l understand that Lifeline service is a non-transferable benefit,and that I may not transfermy service to any other individuaL induding another eligible
low-income consumer
I acknowledge and consent to the use of my name,telephone number,and address to be given to the Universal Service Administrative Company
E (USAC)(the administrator of the program)and/or its agents for the purpose of verifying that I do not recevie more than one Lifeline benefit I
understand that refusal to grant this peimission will mean I am not eligible for Lifeline service I also authorize TerraCom to access any records
required to venfy my statements herein and to coiifiim my continued eligibikty for Lifeline assistance
E l understand that if I move,I must provide a new address to TerraCom within 30 days at my move I understand that if I provided a Temporary
Address,I must verify with TerraCom every 90 days that I am using the same address I understand that if I fwl 10 do so,I will lose my Lifeline
discount
By my signature below I certify under penalty of perjury that I have read aid understood this form and that I attest that the information contained in this
apphcehon that I have provided is true and correct to the best of my knowledge and that I acknowledge that providing false or fraudulent information to receive
Lifeline benefits is punishable by law
Siquatur I Todays DateI/lj/l
SECTION 9-TRIBAL CERTIFICATION
E BY CHECKING HERE AND MY SIGNATURE ABOVE I CERTIFY THAT MY ADDRESS 5 ON FEDERALLY RECOGNIZED TRIBAL LANDS
SECTION 10-INSTRUCTIONS
Mail or Fax completed form to TerraCorn,Inc
Fan 1-877-221-0011 Attention’Ltehne Department
401 E Memorial Road,Suite 500,Oklahoma City,OK 73114-2287
I hereby certify that I have followed the company’s procedures with regard to proof of eligibility I atso venty I have reviewed the necessary documentation to verify
identity and address of the applicant,and I am awarethat tatsillcehon of this is subject to teiminalion or legal action by the cornipany
Company Representative -Pnnt Full Name (No Initials)Company Representative Signature
ESN Account Number
Mobile Number Date
ExHIBIT H
CAsEN0.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TEIuCoM
Page 2 of 2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT I
ExHIBIT I
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERaCoM
Page 1 of2
Richard lunch
Richard Yurich vil1 bring his 10 years of telecommunications experience to YourTel America
leading the company into its new growth phase.His expertise ranges from Operations to Sales
and Marketing.
Mr.Vunch has 15 start-up companies under his belt with enterprises ranging from Oil &Gas to
Telecommunications.He holds a Bachelor’s of Science Degree in History from Oldahoma
Christian University.
Dale Schmick \Tice President
Dale Schmicks telecommunications career began working for PageNet in New York City selling
wireless products.He has been with VourTel America since 1997 in various leadership
positions,leading the migration of the company from a reseller of paging products to a full-
fledged switch-based CLEC and ISP.
In 2010,Mr.Sebmickjoined Terracom,Inc.and was named Vice President.
Dale holds a Bachelors of Business Administration degree from Pace University in New York
City where be graduated Summa Cum Laude.
As an active member ofthe community.Dale serves on the Board of Comptel and the Kansas
City Hispanic Chamber of Commerce,and in 2011 was elected to the Board of Kansas City
Friends of Alvin Ailey.Mr.Schmick is also a Fire Captain with the Southern Platte Fire
Protection District.
Jason Hirzel Secretary
Jason Hirzel has served with Tenacom.Inc.since its inception.He is an experienced business
operator,strategist and investor with 9 years experience in telecommunications as well as 13
years experience in the insurance industry.
Mr.Hirzel graduated with a degree in education from Northeastern University.and is an active
member ofthe community.He is a fonuer coach and board member ofthe Guthrie YMCA,
and a member of the Guthrie Lions Club.
ExHInIT I
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERL&COM
Page2of2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO.TRA-T-1301
TERRACOM,INC.
EXHIBIT J
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERICoM
Page 1 of 17
TermCom Wireless Terms and Conditions of Service
STATE OF IDAHO
TerraCom Wireless is a service brought to you by TerraCom,Inc.C’TerraCom’).TerraCom Wireless
provides both Non-Lifeline and Lifeline assisted wireless services.The Lifeline Assistance program is
supported by the federal Universal Service Fund program and is administered by the Universal Service
Administrative Company.These Terms and Conditions of Service apply to TerraCom wireless services
and wireless phones activated on TerraCom wireless services.Please read these terms carefully as
these Terms and Conditions of Service become effective by activating or using a TerraCom wireless
phone and is a legally binding agreement between you and TerraCom.These Terms and Conditions of
Service contain important information about your consumer rights.TerraCom reserves the right to change
or modify the Terms and Conditions of Service at any time and at its sole discretion subject to the
requirements of the Idaho Public Utility Commission.Changes made to the Terms and Conditions of
Service will become effective at the time the change is posted on the TerraCom Website at
www.TerraComwireless.com.Please check this website often for updates to the Terms and Conditions of
Service.
TerraCom Wireless Lifeline and Proaram Restrictions:
Subscribers applying for service in a TerraCom wireless Lifeline program agree to,and declare under
penalty and perjury,that all of the following conditions below apply (but not limited to):
Lifeline Support is a monthly support that reduces the cost of monthly wireless telephone service or
residential home telephone service.Lifeline is a Federal government benefit program that offers a
discount from your monthly phone service.Lifeline service is available for only one line per household;a
household is defined as any individual or group of individuals who live together at the same address and
share income and expenses.Households are not permitted to receive benefits from multiple providers
and you may not receive multiple Lifeline discounts.You may apply your Lifeline discount to either one
landline or one wireless number,but you cannot have the discount on both.You agree that if you are
participating in another Lifeline program at the time you apply for TerraCom Lifeline service,you will
cancel that Lifeline service with any other provider.By applying for TerraCom service you certify that you
will only receive one lifeline connection and will not have simultaneous or multiple Lifeline discounts with
another provider.
Violation of the one-per-household requirement is a violation of Federal Rules and will result in your
removal from the program and potential prosecution by the United States government Applicants who
willfully make false statements in order to obtain the benefit can be punished by fine or imprisonment or
can be barred from the program.
You will be requited to annually re-certify that you continue to qualify for Lifeline benefits.You
acknowledge that you may be requited to re-certify your continued eligibility for Lifeline at any time,and
that failure to do so will result in the termination of the your Lifeline benefits
By applying for TerraCom service you understand that you must inform TerraCom within 30 days if you
(1)no longer participate in a federal qualifying program or programs or your annual household income
exceeds 135%of the Federal Poverty Guidelines,(2)you are receiving mote than one lifeline-
supported service per household;or (3)you,for any other reason,no longer satisfy the criteria for
receiving Lifeline support.You understand that Lifeline service is a non-transferable benefit,and that
you may not transfer your service to any other individual,including another eligible low-income
1
ExHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERRAC0M
Page2ofl7
consumer.You acknowledge and consent to the use of your name,telephone number,and address to
be given to the Universal Service Administrative Company (USAC)(the administrator of the program)
and/or its agents for the purpose of verifying that you do not receive more than one Lifeline benefit.You
understand that refusal to grant this permission will mean you are not eligible for Lifeline service.
You authorize representatives of any state of federal assistance program to discuss or provide
documentation needed to verify participation requested by TerraCom.You also authorize any state or
federal assistance programs representatives to verify your eligibility for Lifeline programs.Subscribers
applying for the Lifeline program authorize TerraCom and its duly appointed representative’s to have
access to records relating to the applicant to verify eligibility for the TerraCom wireless Lifeline program.
You understand that if you move,you must provide a new address to TerraCom within 30 days of your
move.You understand that if you fail to do so,you will lose your Lifeline discount
A subscriber applying for service will be required to provide a Social Security Number in order to certify or
verify eligibility for Lifeline service.(Social Security information is strictly confidential and will not be
disclosed to others without a subscriber’s written consent).
A subscriber affirms they are least 18 years old.
A Subscriber affirms they are not claimed as a dependant on another person’s tax returns.
Subscribers applying for the TerraCom wireless Lifeline program affirm,under penalty and perjury,that all
foregoing representations made when applying for service are true and correct to the best of the
subscriber’s knowledge.
TerraCom reserves the right to review any subscriber’s continued eligibility for the Lifeline program,at any
time,and may require subscribers to provide TerraCom with written documentation of either subscriber
household income or subscriber’s participation in a qualifying state or federal program.A subscriber may
only participate in one Lifeline program in either landline or wireless service at the subscriber’s principal
place of residence.If a subscriber or any member a subscriber’s family participates in a Liteline program
from another provider,the subscriber is responsible for notifying the other provider that they have been
approved for a TerraCom wireless Lifeline program from TerraCom,Inc.Notice to terminate service from
any other provider’s Lifeline program must be given after activating new service in the TerraCom wireless
Lifeline program.
Income Based Eligibility:
Idaho TerraCom wireless subscribers are eligible to receive a Lifeline discount,under the income based
eligibility;if subscriber’s total combined household income meets 135%of the U.S Government Income
Poverty Guidelines.Proof of income documentation must be provided to TerraCom to demonstrate
income based eligibility.
Number of people in Total household Number of people in Total household
household:income at:household:income at:
1 person $15,512 2 people $20,939
3 people $26,366 4 people $31,793
5 people $37,220 Each additional person $5,427
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERICoM
Page3 of 17
To qualify for income eligibility in Idaho,you must provide copies of one or more of the documents listed
below.If you provide documentation that does not cover a full year,you must submit three consecutive
months of the same type of document within the current calendar year.
•Prior year’s state,federal or tribal tax return
•Social Security benefits statement
•Retirement/Pension benefit statement
•Veterans Administration benefits statement
•Divorce decree or child support document
•Federal or tribal notice letter of participation in Bureau of Indian Affairs General Assistance
•UnemploymentANorkers Compensation benefits statement
•Current income statement from employer or paycheck stub
Program Based Eligibility
•Temporary Assistance for Needy Families
•State Supplemental Security Income (SSI)
•Medicaid
•Federal Public Housing Assistance
•Supplemental Nutrition Assistance Program (SNAP),f/k/a Food Stamps
•Low-Income Home Energy Assistance Program (LIHEAP)
•National School Lunch Program’s Free Lunch Program
Annual Recertification.Verification,or Termination of Lifeline Programs:
Subscribers participating in the TerraCom wireless Lifeline program will be required to re-certify,on an
annual basis,their qualification to continue to participate in Lifeline programs based on the appropriate
state or federal recertification or verification requirements.You understand that if you originally enrolled in
the Lifeline program using the One-Per Household Certification and you fail to annually recertify by
completing this certification again,you will be de-enrolled from the Lifeline program.TerraCom reserves
the right to determine,at its sole discretion,if a subscriber meets the annual recertification or verification
requirements and if the subscriber fails to re-qualify for Lifeline service,If TerraCom is unable to recertify
or verify the required Lifeline qualifications the subscriber will be deemed ineligible to further participate in
TerraCom wireless Lifeline programs.The subscriber’s free minute plan will be discontinued in favor of a
new plan to be chosen by the subscriber.The subscriber will then be eligible to choose from any non-
Lifeline available plan under the applicable terms and conditions for that plan.
TerraCom reserves the right to cancel or suspend,without notice,a subscriber’s account for 1)the illegal
use of TerraCom services,2)any information provided by a subscriber to TerraCom that is determined to
be materially false or materially misrepresents the subscriber’s true status,3)any fraudulent related
reasons or 4)upon any state or federal authority’s direction.TerraCom wireless subscribers have the
ability to terminate from the Lifeline program for any reason.Subscribers who choose to terminate from
the Lifeline program are required to send notice of termination in writing to the address below or by fax.
Upon termination from the program,subscribers will no longer receive free minutes included each month
and will be required to re-qualify for Lifeline qualification if they choose to enroll with another TerraCom
wireless Lifeline program.Please send all termination requests (include name,wireless number,and
identity related information)to:
3
EXHIBIT J
CAsEN0.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRACOM
Page4ofl7
TerraCom,Inc.
Ad n:Wireless Disconnect Department
401 E Memorial Road,Suite 400
Oklahoma City,OK 73114
Or by fax to:
1-877-221-0011
If you do not accept any of these Terms and Conditions of Service,do not activate or use service
provided by TerraCom and contact TerraCom at the TerraCom Service Number located at the end of this
document.By accepting these Terms and Conditions of Service,you represent that you are at least 18
years of age,you meet the eligibility requirements for TerraCom Wireless service,and you agree that you
may not assign your rights or delegate any of your duties under these terms without the prior written
consent of TerraCom Any attempted assignment or delegation without proper consent from TerraCom
shall be void.
Services:
The following services are available to TerraCom wireless subscribers who participate in the Lifeline
program.Questions regarding services can be made in writing or by contacting a TerraCom
representative at the TerraCom Service Number located at the end of this document.
1.Voice grade access to the public switched network.TerraCom wireless service provides
wireless access to the Public Switched Telecommunications Network (“PSTN”).“Voice grade
access to the public switched network is defined as a functionality that enables a subscriber 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 in a bandwidth,at a minimum,between 300 to 3,000
Hertz,
2.Dual tone multi-frequency signaling or its functional equivalent “Dual tone multi-frequency’
(DTMF)is a method of signaling that facilitates the transportation of signaling through the public
telecommunications network,shortening call set-up time.TerraCom wireless handsets are
“DTMF”capable;
3.Single-party service or its functional equivalent.“Single-party wireless service”is a dedicated
message path for the length of a subscriber’s particular transmission TerraCom wireless provides
customers with single-party access for the duration of every call a subscriber makes that is
provided by TerraCom.TerraCom wireless does not provide multi-party or party line service;
4.Access to emergency services “Access to emergency services”is a service available to
TerraCom wireless subscribers that allows a subscriber to call to emergency services through a
Public Service Access Point (PSAP)operated by the local government;
5.Access to operator services,“Access to operator services”is defined as having access to any
automatic or live assistance to a consumer to arrange for billing or completion,or both,of a
telephone call;
6.Access to interexchange service.“Access to interexchange service”is defined as the user of
the telecommunication service having access to complete a long distance call or a toll call;
7.Access to directory assistance “Access to directory assistance”is defined as access to a
service that includes making available to customers,upon request,information contained in
directory listings;and
8.Toll limitation for qualifying low-income consumers.‘Toll limitation”TerraCom wireless
qualifying subscribers have the option to use their wireless service to complete a long distance call
4
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 5 of 17
or toll call in an amount of service that limits the amount of toll service to which the subscriber has
already paid.
9.Local Usage.TerraCom’s plans include local usage minutes available at no extra charge.
TerraCom Wireless Services:
TerraCom Wireless service is provided at the company’s discretion.TerraCom may change pricing or the
company’s Terms and Conditions of Service,from time to time and at any time.Unless expressly
prohibited by law,TerraCom reserves the right to modify or cancel a subscriber’s service,an account,or
take corrective action at any time and for any reason,including,but not limited to,your violation of any
provision of these Terms and Conditions of Service.Check the TerraCom website,
www.TerraComwireless.com,for the most recent pricing and changes to the Terms and Conditions of
Service.A subscriber’s right to use TerraCom service is subject to TerraCom business practices,
policies,procedures,rates and these Terms and Conditions of Service.Terms and Conditions are
provided to customers in writing upon initiation of TerraCom service and whenever a material change in
the Terms and Conditions of service or charges for goods and services takes place.Terms and
Conditions provided upon initiation of service may be separately mailed or included with the paper or
electronic billing statement delivered to the customer.Subsequent notices may be made by separate
mailing,included with a billing statement or,with the customer’s consent,by electronic notice with
reference to information contained on TerraCom’s website,
TerraCom,Inc.provides TerraCom Wireless mobile telecommunications services using the geographic
areas covered by the Nationwide Sprint Network or Verizon footprint.Local phone numbers may not be
available in all areas.Subscribers do not have the ability to use TerraCom Wireless service with any other
wireless phone,device,or on another network.Subscribers also may not use a TerraCom wireless
handset with any other service or network.Airtime may be used for domestic calling from the United
States and for other services as provided in these Terms and Conditions of Service.TerraCom Wireless
service is for personal use only and may not be used in a manner that interferes with another TerraCom
wireless customer’s use of service.TerraCom has determined that ability to provide good service to
subscribers may be impaired when customers place abnormally high numbers of calls,send or receive
unusually high numbers of messages,or repeatedly place calls of unusually long duration,relative to
typical usage by other TerraCom wireless customers on similar service plans.Such non-typical usage
suggests that a wireless phone is being used other than for personal use and is in violation of these
Terms and Conditions of Service TerraCom Wireless services are provided solely for live dialogue
between two persons.TerraCom Wireless services may not be used for any type of monitoring services,
any data transmissions,or other non-personal related connections that do not consist of uninterrupted live
dialogue between two persons.A TerraCom wireless subscriber account may be terminated,without
notice,if a subscriber’s usage is determined to be derived from services obtained,diverted or used
without the authorization or knowledge of TerraCom,
TerraCom Wireless services use radio transmissions and are therefore affected by limitations.Coverage
is not available everywhere.Quality of service may be affected by conditions beyond TerraCom’s control,
including atmospheric,geographical,or topographical conditions.Service may also be affected by
damage to wireless handsets.TerraCom does not guarantee,or warrant,that service will be available at
any specific time or geographical location,or that service will be provided without possible interruption.
You should therefore never solely rely on your wireless phone for emergency calls,such as to 911.
TerraCom wireless customers have access to dial 911 in an emergency.However,occasionally a
5
ExHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TERRAC0M
Page6ofl7
subscriber may attempt to call 911 in an area where there is no wireless coverage.If there is no wireless
coverage,a subscriber’s call to 911 may not go though and the subscriber should dial 911 from the
nearest landline phone.
By applying or activating service with TerraCom,a subscriber agrees not to use TerraCom Wireless
services in any way that is illegal,abusive,or fraudulent This will be determined by TerraCom in its sole
discretion.You also may not alter any ot the software or hardware on your TerraCom wireless handset
for any purpose.TerraCom wireless phones may not be sold to third parties.
In order to verify if you reside within a service area please visit www.TerraComwireless.com.You may
enter your zip code or locate coverage maps on the website to verify coverage.The map is only an
approximation of actual coverage and may differ substantially from the areas of coverage shown on the
website.Coverage can be affected by many factors such as weather,terrain,buildings,equipment,
signal strength or many other factors that may affect network coverage.TerraCom does not guarantee
coverage or network availability.
TerraCom Wireless ETC Services:
TerraCom wireless Lifeline programs are only available for activation by customer’s who reside in the
areas in which TerraCom,Inc.,has been designated as a Eligible Telecommunications Carrier (“ETC”).
To receive subsidized wireless service,a subscriber’s principal residence address must be within a
TerraCom Wireless ETC service area.Visit www.TerraComwireless.com to check whether you reside in a
TerraCom Wireless ETC service area.To be eligible for TerraCom Wireless service,a subscriber must
meet the applicable eligibility standards described throughout these Terms and Conditions of Service,
which may be amended by TerraCom.Where applicable,TerraCom wireless Lifeline programs are
provided to you by TerraCom,Inc.,and may be governed by tariffs.If required,tariffs are on file with the
appropriate public utility commissions in each state and supersede any term related to the Lifeline
Assistance program.TerraCom may provide access to tariffs through its website.Please be aware that
tariffs posted online may not be official documents and you assume full responsibility for any tariff
information you access on the TerraCom wireless website.
TerraCom Wireless Service Rates (Airtime).Features.CoveraQe.and Activation Fees:
Airtime not purchased under an Additional Minute Plan is valued at 50.20 per minute of use.Aiftime
charges apply to standard voice usage calls for both local and domestic long distance calls.TerraCom
wireless voice usage is deducted in full-minute increments and all partial minutes are rounded up to the
next minute.Airtime usage is rounded up to the nearest whole minute.Airtime applies to all message
retrieval and voice calls.Credits will not be given for dropped calls.Any unused aiftime that expires is
forfeited upon expiration or termination of eligibility in the TerraCom wireless Lifeline Assistance program.
Roaming charges,if they apply,will be billed at a rate of $0.59 per minute of use and will be deducted
from the available minutes.Roaming is blocked for Lifeline subscribers and not available unless
specifically requested by the subscriber.Roaming charges occur when a subscriber makes a call using
the facilities of another wireless service provider due to the location the call was placed.Roaming occurs
when you make or receive calls outside the home network calling area.TerraCom does not provide any
guarantees as to the availability or quality of service while roaming A TerraCom wireless Customer must
have airtfme minutes available to make or receive a call.TerraCom wireless handsets will only operate
6
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TE&CoM
Page7ofl7
when you have airtime minutes available on your wireless account.If you run out of your allotment of
airtime,you may purchase and add additional airtime to your account.
[TIES PORTION OF THE PAGE ALLEGEDLY CONTAINS TRADE SECRETS OR CONFIDENTIAL
INFORMATION AND IS SEPARATELY FILED PURSUANT TO IDAHO CODE 9-340D AND
IDAPA 31.01.01.67]
TerraCom Wireless Calling Features include Caller ID,Call Waiting,Three-Way Calling,Call Forwarding,
and Voicemail.Caller ID may display both your billing name and your wireless number when placing
outbound calls TerraCom does not have the ability to block your name and number when making
outbound calls
Subscribers who successfully submit a TerraCom wireless application for the Lifeline program will receive
a free basic wireless phone provided by TerraCom fully capable of voice service,texting,611 and 911
calls including an allotment of free airtime minutes each month from the date service is started.
Subscribers also have the option of purchasing an E911 compatible higher end model if they choose to
do so.TerraCom reserves the right to change,or modify the actual amount of airtime minutes and eligible
subscribers will receive on a monthly basis TerraCom reserves the right to determine,at its sole
discretion,whether or not an applicant meets the eligibility requirements to participate or continue to
participate in the TerraCom wireless Lifeline.
Unlimited Plan Usage
Unlimited Plan services are provided solely for live dialogue between two individuals for personal,non
commercial use.“Unlimited”does not mean unreasonable use.Unreasonable voice use includes,but is
not limited to,the following:machine-to-machine,monitoring services,transmission of broadcasts or
recorded material,telemarketing,call center services,autodialed calls,an abnormally high number of
conference calling,calls,or messages,and/or calls of abnormally long duration and any and all
commercial uses.Other uses have the potential to disrupt reliable service to other customers and/or have
a disproportionate impact on network resources,so are therefore considered abuse of the service and will
not be allowed.
We may determine at our sole discretion that abuse,wasting or interfering with service is taking place if,
for instance,you are placing an unusually high number of calls of unusually long duration,We reserve the
right to respond to such abuse by placing you on a different class of service or,at our discretion and after
providing notice,terminating your service.
This does not mean that there is any type of cap on the minutes and/or texts customers are allowed to
use.A proprietary program of complex algorithms is used to identify the behavior patterns of customers
who are abusing the unlimited plan.Those who have been determined to be abusing the system will have
their account terminated after receiving notice.
7
EXHIBIT J
CASE No.TRA-T-130]
APPLIcATIoN FOR ETC DESIGNATION,TERRACOM
Page8ofl7
TerraCom’s unlimited data or messaging features are provided solely for purposes of non-commercial
messaging,Internet browsing,e-mail access,and the non-continuous streaming of data (e.g.
downloading files).While most common uses are permitted by our data and messaging features,there
are certain uses that cause extreme network capacity issues and are therefore prohibited.Our data and
messaging services may not be used:(a)to generate excessive amounts of Internet traffic through the
continuous,unattended streaming,downloading,or uploading of videos or other files,(b)to operate
hosting services,(c)to maintain continuous active network connections to the Internet such as through a
web camera or automated machine-to-machine connection or peer-to-peer (P2P)file sharing,(d)to
disrupt e-mail use by others using automated or manual routines,including,but not limited to “auto-
responders’or cancel bots or other similar routines,(e)to transmit or facilitate any unsolicited or
unauthorized advertising,promotional materials,“spam,”unsolicited commercial or bulk e-mail or
messaging,(f)for activities adversely affecting the ability of other people or systems to use either
TerraCom’s wireless services or other parties’Internet-based resources,including,but not limited to,
“denial of service”(DOS)attacks against another network host or individual user,(g)for an activity that
tethers or connects any device to personal computers or other equipment for the purpose of transmitting
wireless data over the network (unless customer is using a plan designated for such usage),(h)as a
dedicated data connection,(I)for abnormally long data transmissions,or (j)for any other reason that,in
our sole discretion,violates our policy of providing “unlimited”Services for non-commercial use.
Non-Usage
An account will be considered active if during any 60-day period the authorized subscriber does at least
one of the following:
•Makes a monthly payment
•Purchases minutes from the ETC to add to an existing pre-paid
Lifeline account
•Completes an outbound call
•Answers an incoming call from anyone other than TerraCom,its
representative,or agent
•Affirmatively responds to a direct contact (text included)from
TerraCom confirming that he or she wants to continue service
Should you fail to keep your service active,you will be given 30 days to do one of the preceding actions
to bring your service to active status Should you fail to perform any of these actions,you will be de
enrol led from the Lifeline program and your service terminated
TerraCom Wireless Taxes and Surcharcies:
TerraCom charges state,local sales taxes and surcharges.Pricing listed on the TerraCom wireless
website or listed in advertising methods for wireless service do not include certain taxes or surcharges.
Subscribers are responsible for all charges applicable to the use of TerraCom Wireless service regardless
if the subscriber was the actual user of the service.The amount of these taxes and surcharges is subject
to change and may vary from time to time and by geographic area,TerraCom collects sales taxes on all
Additional Minutes Offering Plans and may also collect regulatory fees in certain states if so required.
Third party authorized retailers are responsible for collecting sales taxes and required regulatory fees for
transactions that occur through such third party authorized retailers.Changes to a tax or surcharge will
become effective as provided by the appropriate taxing authority and changes to applicable contribution
amounts for Federal Universal Service Fund (“FUSF”)will apply Taxes and fees are subject to change
without notice.
8
ExHrnITJ
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page9ofl7
TerraCom Wireless Text Messaging Rates:
A TerraCom wireless subscriber can send and receive text messages of up to 160 characters.This text
message includes the address and suIect line.The type of messages a device can receive may depend
on the wireless handset capabilities.Standard message rates apply when sending or receiving text
messages,regardless if the message is viewed.Any unused messages that expire from one monthly
billing cycle will not carry over to the next monthly billing cycle,unless the monthly plan specifically allows
carry over messages.You may use your free monthly allotment of minutes to send and/or receive text
messages.Text messages sent to you by TerraCom are free of charge.The standard rate to send or
receive a text message on your TerraCom wireless phone is $0.10 per text message for receiving,and
$0.10 per text message for sending.Adding additional airtime or plans to your account may include
incremental minute rates per text messages sent or received.If you have used all of your free monthly
allotment of minutes,you will need to purchase and redeem additional airtime minutes in order to
continue to send and receive text messages and to place and receive voice calls.If you do not want
minutes deducted from your TerraCom wireless phone for text messaging,then do not send or receive
text messages.Due to the transmission method of cellular networks,your cell phone number or other
information may be transmitted over the Internet when using Text Messaging.By activating or using a
TerraCom wireless phone and/or sending a text message,you understand any risks associated and
agree you have been notified of such risks.
Domestic Text Messaging Rates:
Each domestic text will be deducted from the available messages in your free minute plan or in your
purchased TerraCom Wireless Additional Minutes Offering Plan.Any unused messages will expire at the
end of your monthly subscription period and will not be applied to subsequently purchased minutes,
unless your plan includes rollover minutes If you use all the messages in your available plan,and do not
pay a fee for a TerraCom Wireless Additional Minutes Offering Plan,you will not receive your monthly
allocation of messages associated with your plan.Subscriber messaging plans do not include
international text,picture messaging,or voicemail messages.
International Text Messaging Rates:
TerraCom wireless does not allow international text messages.Attempting to send international
messages could result in deactivation of service and de-enrollment from TerraCom wireless Lifeline
Assistance Program.
Premium SMS:
Premium SMS is a text message to a designated “short code.”Buying or attempting to buy SMS services
from anyone other than TerraCom is strictly prohibited.Premium SMS campaigns may include activities
such as sending a vote,playing a game,expressing opinions,subscribing to some type of service,or
some type of interaction with a television program.TerraCom does not participate in Premium SMS
services or campaigns.You are solely responsible for any charges incurred for Premium SMS services or
campaigns.Any text messages sent to a “short code’using TerraCom Wireless service will not likely be
successfully sent or received.Any charges you may incur as a result of any attempts to participate in
Premium SMS campaigns or services are not refundable,regardless whether you incur charges as
deductions from your TerraCom Wireless minutes
9
EXHIOITJ
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATIoN,TERRAC0M
Page lOofl7
Preventing or Sending Spam:
TerraCom wireless subscribers receiving unwanted text messages (“spam”)should contact the source
and request to unsubscribe or remove the subscriber’s wireless phone number from the service,If a
TerraCom Wireless subscriber intentionally sends spam from a TerraCom wireless handset,the
subscriber may be terminated without notice
TerraCom may send you messages via SMS.There is no guarantee you will receive them.
TerraCom Wireless Data Service Rates:
TerraCom Wireless provides wireless data services and mobile internet services using a capable
TerraCom wireless phone.Subscribers may purchase additional data subscription allocations (“Additional
Data Plans”)necessary to access the mobile internet in the following data allocations’
$10-250 MB
$20 —500 MB
$40—1 Gig
Data usage will be deducted from the available data allocation in your purchased Additional Data Plan.
Unused data in these plans expire at the end of your monthly subscription period and may not be used in
subsequent months.If you use your allocation of data before the end of the monthly period,you will be
required to add an Additional Data Plan in order to access the mobile internet.You may terminate your
plan or switch to another data subscription by contacting TerraCom at the TerraCom Service Number
located at the end of this document.Subscribers are responsible for all data activity from and to your
wireless phone,regardless of who initiates the activity.TerraCom reserves the right to suspend,limit,or
terminate a subscriber’s account without notice for any misuse or use that adversely impacts network
performance or TerraCom determines is wasting or interfering with service.TerraCom will not provide free
access to data content
Data services available to TerraCom Wireless subscribers may allow access many forms of data content
such as internet,text,pictures,music,email,or other materials.Some data content that subscribers will
access will be from other third-party websites or services.Some of this data content may be unsuitable
for minors.Subscribers of TerraCom wireless data services are solely responsible for evaluating the data
content accessed while using a TerraCom wireless handset or device.TerraCom strongly recommends
that you monitor data content access by minors.Data content from third parties may harm your TerraCom
wireless handset or software.TerraCom,for any reason,may place restrictions on accessing certain data
content,limit the amount of data you can access,or terminate a subscriber’s access to data services.
TerraCom supports the use of data content,but,TerraCom makes no representations or warranties
(expressed or implied),to the extent permitted by law,including,any warranty of merchantability,fitness
10
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERICOM
Page 11 of 17
for a particular purpose,service quality of content,non-infringement,performance,accuracy,or efforts of
any third party’s data content or to third party data content a subscriber may access while using a
TerraCom wireless handset or device.TerraCom does not have control over the data content provided
on third party’s site that a subscriber may access.TerraCom reserves the right to change,limit,or
terminate access to data content,without notice,at any time,and is not required to replace any data
content requested by subscribers.If you use your cell phone to browse the Internet,your cell phone
number or other information may be transmitted over the Internet.By activating or using a TerraCom
wireless phone and/or using the data service,you understand any risks associated and agree you have
been notified of such risks.
Subscribers may not use TerraCom wireless data service for any illegal purpose.This includes,but is not
limited to,harassing,threatening,abusing,defaming,or slandering any individual or entity TerraCom and
its business partners provide messages,data,information,music,games,text or other material for
subscribers to use on a non-commercial basis only.Subscribers may not sell or resell data content.
Subscribers are solely responsible for engaging in any unauthorized use of data content,TerraCom
intends to present and offer only generally acceptable data content.However,it is impossible to proof all
data content,titles and news articles for appropriate content.TerraCom Wireless data content is not rated
and subscribers are solely responsible for the use of such material,which may be offensive or
objectionable to subscribers or to others.TerraCom wireless subscribers agree not to hold TerraCom
liable for any offensive or objectionable data content.
TerraCom Wireless Directory Assistance,Additional Charges and Services:
Directory assistance calls will not be assessed a charge but minutes will be deducted according the
length of the call.
Calling to 900 /976 numbers are not available to TerraCom Wireless subscribers.Placing calls to 800 /
866 I 877 or other toll-free numbers will incur standard airtime charges.TerraCom allows subscribers to
make or receive domestic long distance calls inside the domestic USA as long as coverage is available.
TerraCom does not allow free calls to other subscribers using TerraCom Wireless service.TerraCom
Wireless subscriber handsets do not provide rate information for services used to make or receive voice
calls or messages.
Subscribers can switch wireless numbers for an additional fee.To make this change,please call
TerraCom at the TerraCom Service Number located at the end of this document to switch your wireless
phone number.A charge of $15 may apply to number change requests.
TerraCom will block any calls to 1-900,1-976,some international calling,or other pay-per-call services.
If a subscriber’s account is deactivated for any reason,TerraCom will assess subscribers a standard
reactivation fee which is not refundable.
Please contact TerraCom at the TerraCom Service Number located at the end of this document,or visit
our website at www.TerraComwireless.com,for additional pricing information or answers to any questions
about TerraCom Wireless services.Calls to TerraCom may be monitored and recorded for quality
assurance.
TerraCom Wireless Subscriber Account History:Subscriber account history is available online for the
previous 60 days of service.You may request a printed copy of your account history detailing the last 60
11
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 12 of 17
days of service by sending a written request to the address below Attention:Account History.If you
deactivate your services or change your wireless phone number,you may obtain your account history by
contacting TerraCom Wireless at the TerraCom Service Number located at the end of this document.
Please visit www.TerraComwireless.com to access your account history at no cost.Send requests to:
TerraCom Wireless
401 E Memorial Road,Suite 400
Oklahoma City,OK 73114
Or byfax to:
1-877-221-0011
TerraCom Wireless Disputed Charges:
If you have a dispute with any charge to your TerraCom Wireless account,you must notify us within 60
days after the charge appears on your account.You may either contact TerraCom at the TerraCom
Service Number located at the end of this document or send notice in writing to the address listed below.
A TerraCom wireless Customer Service Representative will investigate your claim.If TerraCom is not
notified of your dispute within this 60-day period you waive any right to dispute the charge,including in
arbitration and/or a court proceeding.You accept all charges not properly disputed within this 60-day
period.We will provide you a credit or refund if we determine that the disputed charge was inappropriate
and was disputed by you in a timely manner.If we provide a credit or refund,you agree that the dispute is
fully and finally resolved and not subject to any further proceedings.TerraCom is not liable for any
charges for products or services provided by third parties through and for use on our network,regardless
of the date on which you report it.If any unauthorized or disputed charge appears on your statement for
a third-party product,you must contact that third party directly.Third-party contact information is also
available by calling TerraCom at the TerraCom Service Number located at the end of this document.
TerraCom Wireless service,unless otherwise provided by law,excludes all incidental or consequential
damages.Some states do not allow this exclusion.
Dispute by mail:
TerraCom Wireless
Attn:Dispute Resolution
401 E Memorial Road,Suite 400
Oklahoma City,OK 73114
TerraCpm Wireless Refunds.Returns,or Lost Epuioment Policy:
Refunds:TerraCom is not responsible for,nor will we refund any lost,stolen or misused TerraCom
Wireless Additional Minutes or Data offering Plans.Additional plans purchased must be applied to a
subscriber’s account within 1 year of purchase.TerraCom does not accept returns or provide refunds of
any TerraCom wireless Additional Minute or Data offering Plans.All purchases of TerraCom wireless
Additional Minute or Data offering Plans are final and non-refundable regardless of who uses or
possesses the subscriber’s wireless phone after it is purchased,and regardless of whether the wireless
phone is used with the subscriber’s consent or knowledge.Monthly charges are non-refundable.
Returns:Wireless handsets purchased directly from TerraCom may be returned tot a full refund within
30 days of purchase.A subscriber must return the complete handset as was received at the time of
12
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DEsIGNATION,TEIutCoM
Page 13 of 17
activation.Please contact TerraCom at the TerraCom Service Number located at the end of this
document for instructions.TerraCom provides new and recycled handsets to subscribers.All handset
models provided to Liteline subscribers are selected at the sole discretion of TerraCom.Handset models
may vary.TerraCom reserves the right to replace handsets with various models at its sole discretion,All
wireless handsets purchased directly from TerraCom include a 90-day warranty from TerraCom.If you
experience a handset malfunction call TerraCom at the TerraCom Service Number located at the end of
this document.
Lost or Stolen Equipment:If a TerraCom Wireless Subscriber loses or has their handset stolen,the
subscriber is responsible for all charges incurred until TerraCom is notified of the lost or stolen wireless
phone.To report a lost or stolen wireless phone,please contact TerraCom at the TerraCom Service
Number located at the end of this document.Upon receiving notice of the lost or stolen phone,TerraCom
will suspend the account immediately.If a subscriber does not either activate a new TerraCom wireless
phone or notify us that they have found their wireless phone within 30 days of the suspension of the
account,the account will be deactivated and the subscriber will lose the TerraCom wireless phone
number.
TerraCom Wireless Phone Number:
TerraCom Wireless subscribers must accept the number that is assigned to them at the time of activation.
The wireless phone number TerraCom provides for subscribers to use is and will remain the property of
TerraCom.TerraCom may release a subscribers wireless phone number to another subscriber,without
giving notice,if the subscriber cancels service with TerraCom,or if the account expires and is
deactivated,Subscribers may transfer a wireless number prior to the wireless number being reissued to
another subscriber.TerraCom reserves the right to change a wireless number at any time.TerraCom
will attempt to notify the subscriber prior to any change.A subscriber can request to change a wireless
phone number for a number change fee of $15.
In some situations,a subscriber may transfer an existing carrier telephone number to their TerraCom
Wireless service for use as a TerraCom wireless phone number.To switch an existing phone number to
TerraCom,please contact TerraCom at the TerraCom Service Number located at the end of this
document.Before calling,please have a bill available from the existing carrier.When a subscriber
transfers from another wireless carrier to TerraCom,they may have to pay a termination fee to the former
carrier to early terminate the contract.TerraCom will not reimburse a subscriber for any termination fees
imposed by other carriers.
Use of TerraCom Wireless Customer Information:
By agreeing to Terms and Conditions of Service herein,you also agree to the terms of TerraCom
Wireless Privacy Policy available online at www.TerraComwireIess.com.The Privacy Policy may change
from time to time and includes important information on what data we collect about you,how we use this
data and with whom we share that data.Any Customer Proprietary Network Information’(CPNI)data
that TerraCom Wireless collects from subscribers will be handled in accordance with the Federal
Communications Commission regulations,federal consumer privacy laws and the TerraCom Wireless
Privacy Policy.TerraCom will not intentionally share subscriber’s personal information without the
subscriber’s permission.TerraCom may,from time to time,use the information subscribers provide to
market services to subscribers that may be related to TerraCom wireless services or offerings.
Subscribers will have the opportunity to choose whether they would like to receive text messages notices,
13
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERRAC0M
Page 14 of 17
email notices,or direct mail and other updates from TerraCom and its affiliates about new products,
promotions,or other important services offered by TerraCom.Subscribers who choose not to receive
these notices may elect to unsubscribe to the information by calling TerraCom at the TerraCom Service
Number located at the end of this document.TerraCom may disclose to law enforcement authorities and
governmental agencies any information,including your name,account information,account history,or
other information properly requested by law enforcement to comply with appropriate legal requests.
Dispute Resolution:
You agree to contact TerraCom first with any disputes.You must contact TerraCom with any dispute by
calling TerraCom at the TerraCom Service Number located at the end of this document or by writing
TerraCom at 401 E Memorial Road,Suite 400,Oklahoma City,MO 73114,Attn.Dispute Resolution.You
must provide a description of the dispute,all relevant information,any supporting documentation,and the
proposed dispute resolution.A TerraCom representative will contact you at the last address you have
provided or by phone.TerraCom agrees to negotiate in good faith to resolve any dispute you may have.
You agree to pay the full amount reflected on your account statement,even while a dispute is being
resolved,If you do not teach an agreement to resolve your claim within 30 days after notice of dispute
was given,you orTerraCom may commence a Binding Arbitration proceeding (see below).
You also have the tight to contact the Idaho Public Utilities Commission to help resolve your complaint
with TerraCom.You may find out more information and fill out an online complaint form via the web at:
htt://www.ouc.idaho.oov/forms/cons/cons.html
You may contact the PUC via phone at [phone] or [phone].The fax number is (208)334-
4045.
Via Mail:
Idaho Public Utilities Commission
P 0 Box 83720
Boise,Idaho 83720-0074
Or you may contact the Federal Communications Commission (FCC)for assistance.You may reach the
FCC at [phone].
Certain disputes you may have with TerraCom may be resolved through Binding Arbitration.By making
or receiving calls on a TerraCom wireless handset you agree the sole remedy for any dispute shall be
Binding Arbitration on an individual basis.You waive your rights to a jury trial or any class actions.You
also agree the Federal Arbitration Act governs any dispute claim you have with TerraCom.This Binding
Arbitration you agree as the sole remedy limits your options available in the event of a dispute to an
individual basis and survives any termination of your service with TerraCom.Class Arbitrations and Class
Actions are herby excluded as a remedy for any dispute you may have.
This agreement shall be construed under the laws of the state of Oklahoma,without regard to its choice
of law rules,except for the arbitration provision contained in these Terms and Conditions of Service,
which will be governed by the Federal Arbitration Act.This governing law provision applies no matter
where you (the subscriber)reside,or where you (the subscriber)use or pay for TerraCom wireless
14
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TEIuCoM
Page 15 of 17
services.To the extent permitted by law,if a dispute claim proceeds in court.TerraCom and you waive
any right that we may have to trial by jury in any lawsuit or other proceeding
Limitation of Liability:
TerraCom,Inc.is not liable to you (subscriber)for any direct or indirect,special,incidental,
consequential,exemplary or punitive damages of any kind,including lost or potential 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.TerraCom,Inc.will not be liable for any act or omission of any other company
furnishing a part of our services,or our equipment or for any damages that result from any service or
equipment provided by or manufactured by affiliated or non-affiliated third parties.TerraCom,Inc.is not
responsible,at any time,and shall not be liable to you or anyone else for any personal information such
as user names,passwords,contacts,pictures,SMS,or any additional content you may have stored on
your phone or which may remain on your phone during and/or after you no longer have service with
TerraCom.Unless prohibited by law,you (subscriber)agree to limit claims for damages or other
monetary relief against each other to direct and actual damages.TerraCom assumes no risk or
responsibility for a subscriber’s use of any content provided by TerraCom Wireless services.TerraCom is
not liable for any act or omission of any third party company providing part of TerraCom Wireless services
(this includes equipment provided by a third party),any errors or omissions of any vendors or agents
participating in offers made by TerraCom,any damages that result from third parties,or any unauthorized
or disputed charges.There is no fiduciary duty that exists between you (subscriber)and TerraCom,Inc.,
or its affiliates,You (subscriber),also agree that TerraCom will not be liable for any missed voice mails,
any messages from your voicemail system,any data content,or any storage or deletion of contacts from
a handset address hook provided by TerraCom.
Indemnification:
To the full extent by law,you agree to hold harmless and indemnify TerraCom,Inc.,and its affiliates and
their respective officers,agents,directors,partners and employees,from any and all liabilities,
settlements,penalties,claims,causes of action and demands brought by third parties (including any
costs,expenses or attorneys’fees on account thereof),directly or indirectly,resulting from your use of
TerraCom products and services,or another person whom you authorize to use your products or
services,whether based in contract or tort (including strict liability)and regardless of the form of action.
This obligation shall survive any expiration or termination of your service with TerraCom,Inc
A subscriber may reside in a state that does not allow disclaimers of implied warranties or limits remedies
for breach Therefore,the ahove exclusions or limitations may not apply to all subscribers A subscriber
may have other legal rights that vary by state
Warranties:
TerraCom does not manufacture wireless phones or equipment used by subscribers The only warranties
applicable to such devices or equipment are those extended by the manufacturers.We have no liability,
therefore,in connection with wireless phones and other equipment or for manufacturers’acts or
omissions WE MAKE NO REPRESENTATIONS OR WARRANTIES,EXPRESS OR IMPLIED,
REGARDING THE PRODUCTS AND SERVICES PROVIDED HEREUNDER OR ANY SOFTWARE
REQUIRED TO BE USED IN CONNECTION THEREWITH,INCLUDING.BUT NOT LIMITED TO,AND
15
ExHIBITJ
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATIoN,TERCoM
Page 16 of 17
TO THE EXTENT PERMITTED BY LAW,WARRANTY OF TITLE,WARRANTY THAT A PRODUCT OR
SERVICE IS FIT FOR A PARTICULAR USE OR WARRANTY OF MERCHANTABILITY.WE
EXPRESSLY DISCLAIM ANY AND ALL IMPLIED WARRANTIES.WE DON’T PROMISE ERROR-FREE
OR UNINTERRUPTED SERVICE AND DONT AUTHORIZE ANYONE TO MAKE WARRANTIES ON
OUR BEHALF.
The TerraCom Wireless Terms and Conditions of Service,contained herein,supersede all oral or written
communications and understandings between you and TerraCom,Inc.with respect to products and
services provided to you and the terms under which they are offered to you by TerraCom.The surviving
sections of this Terms and Conditions of Service shall continue to be valid and enforceable in the event
that any part of these Terms and Conditions of Service is declared invalid,not applicable,or becomes
unenforceable.There are no provisions of these Terms and Conditions of Service that provide any
person or any entity that is not a party to these Terms and Conditions of Service with any remedy,liabflity,
claim,reimbursement,or any cause of action,or that creates any other third-party beneficiary rights.Any
legal dispute,unless otherwise specified herein,shall be subject to the exclusive jurisdiction of the federal
or state courts located within the State of Idaho.This excludes customers who are residents of the state
of California.
TerraCom reserves the right to suspend or terminate any subscriber’s access to TerraCom Wireless
services or to the TerraCom Wireless website or affiliated websites,at anytime,should we determine in
our sole discretion that a subscriber has violated any of these Terms and Conditions of Service or any
other policy of TerraCom.
Notices:
You may send notices to TerraCom by mail,401 E Memorial Road,Suite 400,Oklahoma City,MO 73114,
or by phone,at the TerraCom Service Number located below.Notices will be considered effective after
received by TerraCom.If a subscriber is unable to resolve concerns with TerraCom,they may file a
complaint with the Federal Communications Commission.Any notice sent to a subscriber will be sent to
your last known residence we have on file,or via text message to your TerraCom wireless phone.
TerraCom Service Contact Numbers
1-877-351-4747
Thank you for choosing TerraCom!!
16
EXHIBIT J
CASE No.TRA-T-1301
APPLICATION FOR ETC DESIGNATION,TERICoM
Page 17of17