20050113Final Order No 29686.pdf

Office of the Secretary
Service Date
January 13, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF VCI
COMPANY FOR DESIGNATION AS AN
ELIGIBLE TELECOMMUNICATIONS CARRIER )
PROVIDING SERVICE TO CUSTOMERS UNDER
THE IDAHO TELECOMMUNICATIONS
SERVICE ASSISTANCE PROGRAM.
CASE NO. VCI-O4-
ORDER NO. 29686
On September 13 , 2004, VCI Company (VCI) filed a Petition with the Commission
requesting designation as a wireline Eligible Telecommunications Carrier (ETC). In the Notice
of Application and Modified Procedure issued December 3 , 2004, the Commission solicited
comments regarding the Petition. Order No. 29652. Only the Commission Staff filed comments
and recommended that the Commission grant the Petition. In this Order, the Commission grants
ETC status to VCl.
BACKGROUND
The federal Telecommunications Act of 1996 allows qualifying telecommunications
carriers to receive universal service support for providing service in high cost areas of the nation.
47 D.C. ~ 214(e).1 To be designated as an ETC, the carrier must: 1) be designated a "common
carrier" as defined by 47 D.C. ~ 153(10); and 2) offer throughout its proposed service area the
universal services set forth in 47 C.R. ~ 54.101(a) either by using its own facilities or a
combination of its own and the resale of another carrier s? In addition, to be designated as an
ETC in an area already served by an incumbent telephone company, an applicant must
demonstrate that doing so is in the public interest. 47 D.C. ~ 214(e)(2).
1 For a brief review of the 1996 Act and the purpose ofETC designation, see Order No. 29541 at 3-
2 The services are: 1) voice grade access to the public switched network; 2) local calling; 3) touch tone signaling or
its functional equivalent; 4) single-party service or its functional equivalent; 5) access to 911 emergency services
where available; 6) access to operator services; 7) access to long-distance service; 8) access to directory assistance;
and 9) toll limitation service. 47 C.R. ~ 54.101(a). In addition, ETCs are also required by FCC Regulations
54.405 and 54.411 to offer qualifying low-income customers both "Lifeline and Link Up" programs as a conditionprecedent to receiving federal universal service support.
ORDER NO. 29686
THE PE TITI 0 N
VCI requests that the Commission designate it as an ETC for the purpose of
providing local exchange service to Idaho residents qualifYing for the Idaho Telephone
Assistance Plan (ITSAP). VCI's Petition states that it will provide such services primarily
through the leasing of unbundled network elements (UNE- P) from Qwest Corporation
throughout Qwest's territory.
VCI holds a certificate as a competitive telecommunications provider in the State
Idaho. In addition, VCI has been designated as an ETC in Washington, Oregon, and Wyoming.
According to its Petition, VCI complies with all Federal Communications Commission (FCC)
rules, including federal high-cost support regulations. The Petition also provides that VCI
advertises these services throughout its service areas in Washington, Oregon, and Wyoming and
will do so in Idaho upon ETC approval.
THE STAFF COMMENTS
Based on its review of VCI's Petition and discussions with VCI, the Commission
Staff determined that V CI' s Petition complies with the state and federal requirements for ETC
status and is consistent with the public interest, convenience, and necessity. According to Staff
VCI provides the services provided for in the definition of universal service set forth in 47
R. ~ 54.101(a); offers such services using its own facilities or a combination of its own
facilities and resale of another carrier s service throughout the service area; and, upon ETC
designation, will advertise such services. Staff confirmed that VCI advertises its services in
Washington, Oregon and Wyoming.
Staff asserts that ETC status for VCI is in the public interest, in large part because
VCI will benefit Idaho s ITSAP customers who may not be able to afford a supplemental
communications service, such as a cell phone. Idaho Code ~ 56-901. Moreover, this is a niche
market that can benefit from a competitive company. By granting the petition of VCI, Idaho
customers will have an opportunity to choose a competitor in certain Qwest territories. In
addition, VCI proposes to waive the subscriber line charge (SLC) for its customers and will use
the federal match to offset the SLC, thereby reducing the monthly telephone charges for eligible
Idaho customers.
ORDER NO. 29686
DISCUSSION AND FINDINGS
The Commission has jurisdiction to determine whether VCr's Petition for ETC status
should be granted. 47 D.C. ~ 21; Idaho Code ~~ 62-615(1) and 62-610D. In making this
determination, the Commission considers both whether VCI meets the state and federal
requirements necessary to be designated as an ETC and whether ETC status is in the public
interest. In evaluating the "public interest " the Commission weighs whether the potential
benefits of ETC designation outweigh the potential harms. Virginia Cellular, LLC Petition for
Designation as an ETC 19 F.R. 1563 , 1574 (2004).
Based upon our review of VCr's Petition and the supporting comments of Staff, we
grant the Petition. In particular, we find on the record presented that VCI has complied with the
federal and state requirements for ETC status. VCI is a "common carrier" as defined by
C. ~ 153(10) and offers throughout its proposed service area the services set forth in 47
R. ~ 54.01(a) either by using its own facilities or a combination of its own and the resale of
Qwest's. We further find that it is in the public interest to grant ETC status to VCI in Qwest'
service area. The benefits identified in the record include greater competition and the provision
of universal services at reduced cost to Idaho residents qualifYing for ITSAP. There are no
harms identified in the record. Because the potential benefits of ETC designation outweigh the
potential harms, the Commission concludes that it is in the public interest to grant ETC status to
VCl.
ORDER
IT IS HEREBY ORDERED that VCr's Petition seeking designation as an ETC in
Qwest's service area is granted.
IT IS FURTHER ORDERED that VCI update its tariffs pages that pertain to its
service area(s) and offerings currently on file in its Competitive Local Exchange Carrier (CLEC)
price list to the extent such action is necessary.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code
~ ~
61-
626; 62-619.
ORDER NO. 29686
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this / 3
~tk
day of January 2005.
O1~MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, OMMISSIONER
ATTEST:
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J ~ D. Jewel
Commission Secretary
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ORDER NO. 29686