20240102Final_Order_No_36050.pdf

ORDER NO. 36050 1

Office of the Secretary
Service Date
January 2, 2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF TERRACOM INC.
d/b/a MAXSIP TEL’S APPLICATION FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER FOR
THE LIMITED PURPOSE OF OFFERING
LIFELINE SERVICE TO QUALIFIED
HOUSEHOLDS

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CASE NO. TRA-T-23-01

ORDER NO. 36050

On July 13, 2023, Terracom Inc., d/b/a Maxsip Tel, (“Company”), applied to the Idaho
Public Utilities Commission (“Commission”) for designation as an Eligible Telecommunications
Carrier (“ETC”) in the State of Idaho (“Application”). As part of its Application, the Company
provided the certificate of service for the notice it provided to tribal authorities affected by the
Application.
On October 23, 2023, the Commission issued a Notice of Application and Modified
Procedure. Order No. 35966. Commission Staff (“Staff”) submitted the only comments. With this
Order, we approve the Company’s Application and grant it limited designation as an ETC.
BACKGROUND
Under the federal Telecommunications Act of 1996 (“Federal Act”), a carrier designated
as an ETC is eligible to receive federal support from the federal Universal Service Fund (“USF”).1
47 U.S.C. § 214(e). This Commission has the authority, under the Federal Act, to grant ETC
designations within Idaho. 47 U.S.C. § 214(e)(2). Authority for the Commission to designate ETC
status is also provided in Idaho law—the Idaho Telecommunications Act of 1988 (“Idaho Act”)—
and expounded upon in prior Commission orders. See Idaho Code §§ 62-610D(1), 62-615(1);
Order No. 29841. Under this authority, this Commission has granted ETC designations to

1 The Federal Communications Commission established the federal USF with the intent to make adequate, efficient
communications available nationwide, at reasonable charges. In the Matter of Lifeline and Link Up Reform and
Modernization, Lifeline and Link Up, Federal-State Joint Board on Universal Service, Advancing Broadband
Availability Through Digital Literacy Training (“Lifeline and Link Up Reform Order”) 27 F.C.C.R. 6656, at 6660-62
(Feb. 6, 2012); 47 U.S.C. § 254(b). Lifeline is a program supported by the USF that provides monthly discounts to
eligible low-income subscribers to maintain access to communications networks. Lifeline and Link Up Reform Order,
27 F.C.C.R. 6656 at 6662-63. Idaho has an analogous state USF program, established in Idaho Code §§ 62-610 and
62-610A-610F, and a Lifeline program known as the Idaho Telecommunications Service Assistance Program
(“ITSAP”). Idaho Code § 56-901.
ORDER NO. 36050 2

numerous carriers in Idaho, including wireless carriers. See, e.g., Order Nos. 32586, 32645, and
34163.
To qualify as an ETC, an applicant must satisfy several requirements established in federal
and state law. See 47 U.S.C. § 214(e); Order No. 29841. The Federal Act requires the applicant to
be a “common carrier,” offering services supported under Section 254(c) of the Federal Act “using
its own facilities or a combination of its own facilities and resale of another carrier’s services,”
unless otherwise granted Federal Communications Commission (“FCC”) forbearance. 47 U.S.C.
§§ 153(11), 214(e)(1)(A), 160(a)(3) (FCC has regulatory flexibility to forbear application where
consistent with public interest). The Federal Act also requires the applicant “advertise the
availability of such services and the charges therefor using media of general distribution.” 47
U.S.C. § 214(e)(1)(B).
Under the Federal Act, state commissions shall determine whether ETC designation is
“consistent with the public interest, convenience, and necessity.” 47 U.S.C. § 214(e)(2). In
evaluating this public interest element, the Commission has generally considered two factors. See
Order No. 33002 at 2-3; Order No. 33226 at 3. First, the Commission evaluates whether the carrier
contributes to state assistance programs such as the Idaho Telephone Service Assistance Program
(“ITSAP”) and the Idaho Telecommunications Relay Services (“TRS”) program consistent with
Idaho Code § 61-1301. Id. Second, the Commission considers if the designation is sought for only
part of a rural telephone company’s study area, thus leaving some (perhaps less profitable)
customers without service. Id. Such practice, known as “cream skimming,” has been determined
by the Commission to be contrary to the public interest. Id.
Federal regulations include the following additional requirements, which the Commission
has adopted by reference, in evaluating applications for ETC designation: (1) compliance with
service requirements applicable to support received; (2) submission of a plan for proposed
improvements or upgrades to the network (where applicable); (3) demonstrated ability to remain
functional in emergencies without an external power source; (4) demonstrated willingness to
satisfy consumer protection and service quality standards; (5) financial and technical capability to
provide Lifeline service; and (6) notice to affected Tribes where designation is sought for any part
of Tribal lands. See 47 C.F.R. § 54.202; Order No. 29841 at 5, 16.
For applicants seeking Lifeline-only ETC designation, the FCC has waived the requirement
to submit a network improvement and upgrade plan, noting that such ETCs do not receive funds
ORDER NO. 36050 3

to improve or extend their networks. Lifeline and Link Up Reform Order, 27 F.C.C.R. 6656, ¶ 386
(“Lifeline and Link Up Reform Order”). The Commission—which requires a two-year network
improvement plan and progress report (Order No. 29841 at 18) where applicable—has also waived
the requirement where a Lifeline-only ETC is requested. Order No. 35126 at 3.
APPLICATION
The Company seeks ETC designation in Idaho “solely to provide Lifeline service to
qualifying Idaho consumers.” Application at 2. The Company stated that it does not seek access to
funds from the federal USF for the purpose of participating in the Link-Up program or providing
service to high-cost areas. However, the Company requested permission to participate in and be
reimbursed from ITSAP.
The Company asserted that it met all federal and state requirements for designation as an
ETC. The Company contended that designating it as an ETC was in the public interest because it
would allow the Company to provide Lifeline service to a wide array of low-income Idaho
residents.
STAFF COMMENTS
Staff reviewed and analyzed the Company’s Application for compliance with the Federal
Act, FCC regulations, state law, and Commission Order No. 29841 and 35126. Based on this
review, Staff believed the Company satisfied public interest considerations. In reaching that
conclusion, Staff noted that the Company expressly requested authorization to participate in and
receive reimbursement from ITSAP. Additionally, Staff observed that the Company sought a state-
wide ETC designation that included tribal lands, rendering a cream-skimming analysis
unnecessary. Accordingly, Staff believed that designation of the Company as an ETC is in the
public interest.
Staff further believed the Company complied with the tribal notification requirements.
Staff noted the Company was not required to have a network improvement plan. Staff believed the
Company’s underlying carriers provided sufficient ability for the Company to remain functional
in emergencies per Commission Order No. 29841 and FCC requirement 47 C.F.R, § 54.202(a)(2).
Additionally, Staff believed the Company’s Application met all the additional requirements for
ETC designation as delineated in the Appendix to Order No. 29841 and Order No. 35126.
Accordingly, Staff recommended approval of the Company’s Application.

ORDER NO. 36050 4

COMMISSION FINDINGS AND DECISION
As previously stated, the Commission has authority to grant ETC designation to a
telecommunications carrier under federal and state law. 47 U.S.C. § 214(e); Idaho Code §§ 62-
610D and 62-615(1). After reviewing the record, including the Company’s Application and Staff
Comments, we make the findings discussed below.
A. Common Carrier, Own Facilities, and Advertising
We first address requirements listed in § 214(e)(1) of the Federal Act. That provision
requires an applicant to be a “common carrier” offering services “using its own facilities or a
combination of its own facilities and resale of another carrier’s services,” unless otherwise granted
FCC forbearance. 47 U.S.C. §§ 153(11), 214(e)(1)(A) and 160(a)(3). The FCC has granted
forbearance from the “own-facilities” requirement to Lifeline-only ETCs provided they comply
with certain 911 requirements and file a compliance plan. Lifeline and Link Up Reform Order. The
Company represented that it complied with the Federal Act to become a Lifeline-only ETC with
the filing of its December 2012 FCC-approved Compliance Plan. Application at 9-10. The
Company stated its intention to follow 911 requirements governing Lifeline subscribers in
accordance with its FCC-approved Compliance Plan. Id. at 8-9. We find the Company properly
complied with the FCC forbearance regarding the “own facilities” requirement. On the record
before us, we find the Company is also a “common carrier.” See 47 U.S.C. § 153(11).
An applicant seeking ETC designation must also “advertise the availability of such services
and the charges therefor using media of general distribution.” 47 U.S.C. § 214(e)(1)(B). Based on
the record and the Company’s assurances, we find this requirement to also be satisfied.
B. Public Interest and Related ETC Designation Requirements
Under the Federal Act, state commissions shall determine whether granting the requested
ETC designation is “consistent with the public interest, convenience, and necessity.” 47 U.S.C. §
214(e)(2).
First, the Company committed to offering Lifeline services to a wide array of low-income
and unserved and underserved Idaho residents. Application at 2. We find that the Company’s
offering of these services in the proposed service areas promotes the public interest because these
services will assist unserved or underserved people and provide investment in facilities and
equipment in these areas.
ORDER NO. 36050 5

We also consider whether the Company would contribute to the appropriate Idaho funds.
Order No. 33002 at 2-3; Order No 33226 at 3. Staff confirmed that the Company would participate
in and receive reimbursement from ITSAP. We find that the Company’s commitment to
participating in the appropriate Idaho programs advances the public interest.
Next, we consider whether the Company is engaged in “cream skimming,” which we have
found to be contrary to the public interest. Order No. 33002 at 2-3; Order No. 33226 at 3. Because
the Company requested limited ETC designation for the entire state, no cream-skimming analysis
is required. We therefore find that granting the Company limited designation as an ETC in its
requested service area—the State of Idaho—satisfies the public interest requirements.
C. Remaining Requirements
Finally, we address the six remaining requirements from federal regulations and Order No.
29841. See 47 C.F.R. § 54.202.
(1) Service Requirements for Support Received. We find the Company has sufficiently
committed to meeting these requirements.
(2) Plan for Proposed Improvements or Upgrades to the Network. The FCC and this
Commission have waived the requirement for Lifeline-only ETCs who seek only low-income USF
support to submit a network improvement plan. See Order No. 32501 at 3-4; 47 C.F.R. §
54.202(a)(1)(ii). We find that the Company is not required to submit a network improvement plan.
(3) Ability to Remain Functional in Emergencies. We find the Company has demonstrated
sufficient compliance with this requirement. Application at 13-14.
(4) Willingness to Satisfy Consumer Protection and Service Quality Standards. We are
satisfied with the Company’s assurances as to this requirement. Id. at 14.
(5) Financial and Technical Capability. Based on the Company’s assurances and
description of its financial and technical qualifications, as well as how it interacts and partners
with its parent company, we also find this requirement to be satisfied. Id. at 14-15.
(6) Notice to Affected Tribes We find the Company has sufficiently notified and engaged
Tribal authorities. See Exhibit 8 to the Company’s Application; 47 C.F.R. § 54.202(c); Order No.
29841 at 16 (superseded in part by Order No. 35126 at 6).
Based on the above findings, we conclude that the Company has satisfied the federal and
state requirements for limited designation as an ETC carrier. We therefore designate the Company
ORDER NO. 36050 6

an ETC in the State of Idaho for the purpose of providing Lifeline service to qualifying Idaho
consumers and to participate in and receive reimbursement from the ITSAP.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for limited designation as an
ETC in the State of Idaho is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. Idaho Code § 62-619.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 2nd day of
January 2024.

_______________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

_______________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

Monica Barrios-Sanchez
Interim Commission Secretary

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