20181214Decision Memo.pdf

DECISION MEMORAI\DUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SEAN COSTELLO
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 12,2018
SUBJECT: VIASAT CARRIER SERVICES, INC.'S ELIGIBLE
TELECOMMUNICATIONS CARRIER APPLICATION, CASE NO. VCS-
T-18-01
On September 27,2018, Viasat Carrier Services, Inc. (Viasat or the Company)
appliedl to the Commission for an Order designating it as an eligible telecommunications carrier
(ETC) in specific Idaho census blocks, in order to receive funding support it was provisionally
awarded2 under the Federal Communications Commission (FCC) Connect America Fund Phase
II Auction (CAF II Auction). Application at 1-2.
THE APPLICATION
The Company states that it must obtain designation as an ETC in specific eligible
Census Block by February 25,2019. Id. at2. The service areas for which the Company requests
designation include one hundred and twenty-seven Census Block Groups in Idaho, as set forth in
Exhibit A to the Company's Application.
The Company states that Section2la@)Q) of the Communications Act of 1934 (Act),
and the rules and regulations of the Federal Communications Commission (FCC), coupled with
the Idaho Public Utilities Commission's requirements in Order No. 29841, govern designation as
an Eligible Telecommunications Carrier (ETC). The Company states that it has received its
Certificate of Registration to transact business in the State of Idaho. See Supplement to
I Viasat filed a Supplement to its Application with the Commission on December 12,2018.
2 Viasat, Inc., (VSI) the parent company of Viasat Carrier Services, Inc., was awarded the CAF II auction funding
and, it claims, properly assigned its winning bid to Viasat. See Application at 4.
DECISION MEMORANDUM 1
Application at 4 and Exhibit B thereto. It further claims to qualify under the relevant ETC
statutory definitions because it will: (l) provide service on a common carrier basis; (2) offer
voice telephony and broadband services supported by federal universal service support
(including voice grade access to the public switched telephone network and broadband internet
access); (3) comply with high-cost universal service support rules (see 47 C.F.R. $ 5a.101(c));
(4) provide Lifeline service according to FCC rules (see 47 C.F.R. $ 54.101(d)); offer standalone
telephony rates reasonably compared to urban rates; and (5) provide supported services
throughout the designated CAF II Auction award service areas. Application at l0-l l.
The Company further claims that it will advertise the availability of its universal
service offerings and charges using media of general distribution, as well as providing proper
notice to Tribal authorities in Idaho. Id. at 10-13. It further believes ETC designation would be
in the public interest and makes a commitment that it has the ability to provide supported
services, to remain functional in emergencies, to fulfill all required reporting requirements to the
Commission and to protect consumers utilizing the Company's services. Id. at 13-14.
In order to provide its services, the Company claims that it will utilize broadband
technologies and services through an "end-to-end platform of high-capacity Ka-band satellites,
ground infrastructure and user terminals . . . provid[ing] cost-effective, high-speed, high-quality
broadband solutions to enterprises, consumers and government users around the globe." Id. at2.
It also develops and provides, among other functions, wireless communications systems and
secure networking systems. Id. Along with its geostationary-satellite orbit (GSO) satellites,
"[]ast mile connectivity is provided to end users through GSO user terminals that communicate
directly with VSI's satellites. VSI's satellites also connect to satellite access nodes (SANs) that
are located on the ground and interconnect with the Internet, public switched telephone network
(PSTN), and other terrestrial networks using leased fiber." Id. at 3.
Viasat states that it is qualified to meet applicable CAF II obligations given VSI's
track record of technical and commercial success as a provider of satellite broadband services
and associated equipment. Id. at 6. The Company states that VSI has been reviewed on
numerous occasions by the FCC, resulting in multiple FCC licenses and authorizations. 1d. VSI
also holds patents in satellite technology and, as is evidenced by its confident participation in the
CAF II auction, has at its disposal extensive and qualified staff, and will be able to fulfill its
obligations as an ETC. Id. lt also includes detailed descriptions of its expertise and experience
2DECISION MEMORANDUM
in providing communications across a variety of technologies, its established GSO network
architectures (including its space segment, terrestrial network, and user segment). Id. at 5-10.
STAFF RECOMMENDATION
Staff recommends that the Commission process Viasat's Application under Modified
Procedure with a 2l-day comment period.
COMMISSION DECISION
Does the Commission wish to process Viasat's Application under Modified
Procedure with a Zl-day comment period?
Sean
Deputy Attomey General
I:\Legal\TELEPHONE\VCS-T- I 8-0 I \VCS-T- I 8-01 _sc doc
aJDECISION MEMORANDUM