20231107Comments of the Commission Staff.pdf

STAFF COMMENTS 1 NOVEMBER 7, 2023
ADAM TRIPLETT DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720 BOISE, IDAHO 83720-0074 [phone] IDAHO BAR NO. 10221
Street Address for Express Mail: 11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A BOISE, ID 83714 Attorney for the Commission Staff

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

TRA-T-23-01
OMMENTS OF THE
COMMISSION STAFF (“STAFF”) OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Adam Triplett, Deputy Attorney General, submits the following
comments.

BACKGROUND
On July 13, 2023, Terracom Inc., d/b/a Maxsip Tel, ( “Terracom” or “Company”),
applied to the Idaho Public Utilities Commission (“Commission”) for designation as an Eligible
Telecommunications Carrier (“ETC”) in the State of Idaho (“Application”).
Terracom represents that it seeks designation as an ETC for the sole purpose of
providing Lifeline services, and it will not (and is not eligible to) seek access to funds from the
federal Universal Service Fund (“USF”) to participate in the Link-Up program or high-cost
RECEIVED
2023 November 7 10:15 AM
IDAHO PUBLIC
UTILITIES COMMISSION
STAFF COMMENTS 2 NOVEMBER 7, 2023
program.1 Terracom does, however, request authority to participate in and obtain reimbursement
from the Idaho Telephone Assistance Program (“ITSAP”). Application at 2. The Lifeline
program is intended to provide more affordable telecommunications service benefits to eligible
low-income customers through the federal USF and ITSAP. Idaho participates in the residential
Lifeline program pursuant to Idaho Code § 56-901. See Order No. 21713.
Terracom asserts that it meets all federal and state requirements for designation as an
ETC, including the requirements for ETCs participating in the Lifeline program, that it will
comply with all regulations imposed by the Commission, and that it is positioned to reach
unserved and underserved Lifeline-eligible consumers. Furthermore, Terracom states that this
designation is in the public interest and asks that the Commission grant this ETC status
“expeditiously.” Application at 2.

THE APPLICATION
Terracom states that it is an Oklahoma corporation that was organized on April 10, 2003,
with principal offices located at 6650 East Brainerd Road, Suite 200-C, Chattanooga, Tennessee
37421. Terracom is registered with the Idaho Secretary of State as a Foreign Limited Liability
Company2 with a commercial registered agent in Idaho at Incorp Services, Inc.1310 S Vista
Avenue Suite 28, Boise, Id 83705. Its principal address, both physical and mailing, is shown on
the Idaho Secretary of State certificate as 928 Mccallie Avenue Chattanooga, TN 37403-2724.3
According to the Application, Terracom is a provider of Commercial Mobile Radio
Service (“CMRS”) and provides prepaid wireless telecommunications services to consumers by
using the underlying wireless networks of Tier 1 carriers, currently T-Mobile USA, Inc. (“T-
Mobile”) and/or AT&T (collectively, “Underlying Carriers”) on a wholesale basis.
TERRACOM obtains from its Underlying Carriers the network infrastructure and wireless
transmission facilities to allow the Company to operate as a Mobile Virtual Network Operator
(“MVNO”). The Underlying Carrier is selected based on the best coverage available at the
service address. Id. at 3.

1 Given that the Company only seeks Lifeline support from the low-income program and does not seek any high-cost support, ETC certification requirements for the high-cost program are not applicable to the Company.
2 As verified with the Secretary of State by Staff. 3 As verified with the Secretary of State by Staff.
STAFF COMMENTS 3 NOVEMBER 7, 2023
Terracom represents that with the ETC designation status in Idaho, it will provide
affordable prepaid mobile phone service, including calling, text messaging, and broadband
access, along with user-friendly handsets. It will manage all aspects of the customer experience,
including setting service pricing, handset selection, marketing materials, and live customer
service. Its prepaid, budget-friendly pricing will give many low-income consumers the option of
having mobile phone service and broadband access without the burden of hidden costs, varying
monthly charges, or contractual commitments. Customers will be able to customize their
Terracom service to suit their needs with Terracom’s available bundles of minutes, broadband
data, and text packages to supplement their monthly plan. Id. at 5.
Terracom states that even though it is not a rural telephone company, it nevertheless
requests an ETC designation that is statewide in scope to allow the Company to provide Lifeline
service wherever its underlying, facilities-based provider(s) have wireless coverage, including
federally recognized tribal lands. Id. at 11.
Terracom contends that the Commission has jurisdiction over this matter and that the
Company is a common carrier with the ability to provide wireless telecom services listed in its
Application. Id. at 6. Additionally, the Company asserts that it meets all federal and state
requirements for designation as an ETC. Id. at 7. Most significantly, Terracom asserts that
designating the Company as an ETC in Idaho is in the public interest. Id. at 20.

STAFF ANALYSIS
Staff examined Terracom’s Application and analyzed its fulfillment of the Federal
Telecommunications Act of 1996, the FCC regulations, Commission Order No. 29841, and
Order No. 35126. Staff believes that the Terracom Application should be granted. The specific
state and federal requirements for ETC designation are discussed in more detail below.
Public Interest Considerations
Staff applies a two-prong test when analyzing whether a company’s ETC Application is
in the public interest. First, Staff determines whether the company contributes to Idaho funds.
Second, Staff analyzes whether the company’s Application raises “cream skimming”4 concerns.

4 Cream skimming is a pejorative conceptual metaphor used to refer to the perceived business practice of a company providing a service to only the high-value or low-cost customers of that service, while disregarding clients that are less profitable for the company.
STAFF COMMENTS 4 NOVEMBER 7, 2023
In the Application, Terracom specifically requested that its ETC designation include the
authority to participate in and receive reimbursement from the Idaho Telephone Service
Assistance Program (“ITSAP”). Id at 2. Terracom also requested an ETC designation that is
statewide in scope including federally recognized tribal lands. Id. at 11-12. Therefore, no cream
skimming analysis was required. Thus, Staff believes the Company satisfies the public interest
considerations.

Tribal Notification
Pursuant to Commission Order No. 35126, an ETC applicant seeking ETC designation
for any part of tribal lands shall provide a copy of its application to the affected tribal
government or tribal regulatory authority, as applicable, at the time it files its application with
the Commission. Evidence of such notification shall be provided to the Commission.
On July 13, 2023, as part of its Application, Terracom provided the certificate of service
for its communications with the various authorities of the tribal lands.5 Staff believes that these
communications comply with Commission Order No. 35126.

Network Improvement Plan
The Commission requires a two-year network improvement and progress report from all
ETCs receiving high-cost support. See Order No. 29841 at 18. However, the Commission
determined in Cricket Communications, Inc.’s ETC Application in Case No. CRI-T-11-01 that a
two-year network improvement plan did not apply to Lifeline-only ETCs. Order No. 32501.
In its USF and Inter-Carrier Compensation (“ICC”)6 Transformation Order, the Federal
Communications Commission (“FCC”) amended 47 C.F.R. § 54.202 to clarify that a common
carrier seeking designation as a Lifeline-only ETC is not required to submit a five-year network
improvement plan as part of its application for designation as an ETC. Lifeline-only ETCs do
not receive high-cost funds to improve or extend networks, therefore the FCC “saw little purpose
in requiring such plans as part of the ETC designation process.”7

5 See Exhibit 8 : Certificate of Service
6 ICC is the system of regulated payments in which carriers compensate each other for the origination, transport, and termination of telecommunications traffic.
7 See Lifeline and Link up Reform and Modernization et al, WC Dkt No. 11-41 et al. Report and Order and Further Notice of Proposed Rulemaking, FCC 12-11 at para 386.
STAFF COMMENTS 5 NOVEMBER 7, 2023
Terracom’s Application seeks only low-income USF support as a Lifeline-only ETC.
Therefore, Staff agrees that a network improvement plan is not a requirement for Terracom’s
ETC Life-only Application.

Ability to Remain Functional in Emergencies
Terracom states that it can remain functional in emergencies per Commission Order
29841 and FCC requirement 47 C.F.R, § 54.202(a)(2). Id 13.
Terracom states that in emergencies, it will utilize the extensive and well-established
network and facilities of Tier 1 carriers to provide its Lifeline services. Its underlying Carriers’
networks have access to a reasonable amount of backup power to ensure functionality without an
external power source, can reroute traffic around damaged facilities, and are capable of
managing traffic spikes resulting from emergencies. Thus, through access to the Underlying
Carriers’ networks, Terracom and its customers benefit from this functionality. Id 13-14. Staff
agrees that Terracom satisfies this requirement.

Other ETC Designation Requirements
The additional requirements for ETC designation detailed in Appendix 1 of Order
Nos. 29841 and 35126 are discussed in more detail herein below:
1. Common Carrier Status. The Company is a common carrier as defined in U.S.C.
Title 47 U.S.C. § 153(11). Id. at 5.
2. Provide Universal Services. The Company will provide all required services and
functionalities as outlined in Section 54.101(a) of the FCC’s Rules (47 C.F.R. §
54.101(a)). Id. at 9.
3. Advertising. The Company will advertise the availability and rates for its services
described in the Application through media of general distribution as required by
47 U.S.C. § 214(e)(1)(B), 47 C.F.R. § 54.201(d)(2) and in 54.405(c)(d). Id. at 12
and 13. A sample of the Company’s Lifeline advertising is attached to the
Application as Exhibit 4.
4. A Commitment to Consumer Protection and Service. The Company commits to
satisfying all such applicable state and federal requirements related to consumer
protection and service quality standards, including compliance with the Cellular
STAFF COMMENTS 6 NOVEMBER 7, 2023
Telecommunications and Internet Association’s Consumer Code for Wireless
Service as required by 47 C.F.R. § 54.202(a)(3). Id. at 14.
5. Description of the Local Usage Plan. The Company will offer a Lifeline service
plan. Exhibit 6. Furthermore, the Company will meet the service standards
outlined in 47 C.F.R. § 54.101(a), including as such standards are updated going
forward. Id. at 15.

STAFF RECOMMENDATION
Based on Staff’s examination of Terracom’s Application and all of the additional filings,
Staff believes that Terracom demonstrated its commitment to fulfilling the obligations of a
Lifeline-only ETC in Idaho. Terracom will provide all universal services supported by the
federal USF throughout its service territory. Terracom has addressed the public interest
questions that accompany an ETC Application. Terracom will provide multiple pricing plans,
which will increase consumer choice for low-income telephone services in Idaho. Currently, the
Commission has granted wireless ETCs access to participate in the State’s ITSAP program, so
Staff supports allowing the Company to participate in the ITSAP program.
Staff believes that Terracom’s Application for designation as an ETC is in the public
interest and should be approved for the entire State of Idaho as the service area.

Respectfully submitted this 7th day of November 2023.

________________________________ Adam Triplett Deputy Attorney General

Technical Staff: Johan Kalala-Kasanda
i:umisc/comments/ TRA-T-23-01 Comments