20190108Comments.pdf

IiICIIVTDSEAN COSTELLO
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8743
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Street Address for Express Mail:
472W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THB IDAHO PUBLIC UTILITIBS COMMISSION
IN THE MATTER OF THE APPLICATION OF
VIASAT CARRIER SERVICES,INC. FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER
CASE NO. VCS.T.I8.Ol
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Sean Costello, Deputy Attorney General, submits the following comments.
BACKGROUND
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. The Company needs ETC designation so it can receive
funding it was provisionally awarded2 under the Federal Communications Commission (FCC)
Connect America Fund Phase II Auction (CAF II Auction). Application at l-2.
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 provisionally awarded the CAF II
Auction funding and, it claims, properly assigned its winning bid to Viasat. See Application at 4.
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ISTAFF COMMENTS JANUARY 8,2019
Overview of the Connect America Fund Phase II Auction
On January 31,2018, the FCC issued an Order on Reconsideration concerning its
Connect America Fund initiative, which enabled the FCC to move forward with the CAF II
Auction, in which service providers competed to receive up to $1.98 billion to offer voice and
broadband service in unserved high-cost areas.3 That Order followed a series of orders
establishing the details of the CAF II Auction.a Under this program the FCC will disburse up to
$198 million annually for providers - including competitive providers such as competitive local
exchange carriers, cable operators, fixed wireless ISPs, satellite broadband, or alternative
providers such as electric utilities and governmental entities - to deploy broadband networks in
high-cost unserved price cap areas.
On August 28,2018, the FCC announced the Auction 903 results. The FCC designated
Viasat as a winning bidder in 127 Census Block Groups in Idaho. Funding is contingent on
Viasat demonstrating that it meets the FCC's technical and financial qualifications, including
obtaining ETC designation from the Idaho Public Utilities Commission by February 25,2019,
for the service area. ETC designation by this Commission is, therefore, a prerequisite for
Viasat's eligibility for funding.5
THE APPLICATION
Viasat is a Delaware corporation with its principal place of business in Carlsbad,
California. Id. at2. Viasat states it is an innovator in broadband technologies and services.
Using end-to-end platform of high-capacity ka-band satellites, ground infrastructure and user
terminals enabling it to provide "cost-effective, high-speed, high-quality broadband solutions to
enterprises, consumers and government users around the globe ." Id. The Company also provides
advanced wireless communications systems, secure networking systems and cybersecurity and
information assurance products and services. The service for which the Company requests
designation is set forth in the Company's Application. Id. at 14.
The Company states it qualifies for ETC designation under the Federal
Telecommunications Act (47 U.S.C. $ 21a(e)(1)), the Federal Communications Commission's
3 Connect America Fund, et al., Order on Reconsideration,33 FCC Rcd 1380 (2018).
a See, e.g., Connect America Fund et al, Report and Order and Further Notice of Proposed Rulemaking, 3l FCC Rcd
s949 (2016).
s Auction 903 Results Notice, para. 15, n. I l.
2STAFF COMMENTS JANUARY 8,2019
eligibility rules (47 C.F.R. $ 54.101(a)), and other requirements set forth by this Commission,
outlined in the Appendix to Commission Order No. 29841. Id. at 10-15.
The Company asserts it satisfies the requirements for designation as an ETC in that it: (1)
has common carrier status; (2) commits and is able to provide services supported by federal
universal support mechanisms; (3) will advertise the availability of supported services; (4) will,
through its ETC designation, advance the public interest, convenience and necessity; (5) has
contacted the Coeur d'Alene Tribe, Shoshone-Paiute Tribes, Nez Perce Tribe and has provided
relevant and necessary Tribal notifications; (6) commits and is able to provide supported services
as required by this Commission for ETC status; (7) is capable of managing traffic and
maintaining functionality without an external power source; (8) complies with applicable
consumer protection and service quality standards; and (9) will comply with annual reporting
requirements established by this Commission. 1d.
STAFF ANALYSIS
Staff reviewed Viasat's Application and conducted an analysis of the Company's
fulfillment of the Federal Telecommunications Act of 1996,the Connect America Fund
requirements, and Commission Order No. 29841 . In addition, Staff analyzed the public interest
benefits of awarding the Company a conditional ETC designation. Specific state and federal
requirements for ETC designation are discussed in more detail below.
Public Interest Analysis
When applying the public interest test in an Application for ETC designation, Staff
believes there are two primary considerations that merit discussion. First, Staff verifies that the
Company will contribute to the appropriate Idaho Funds. Second, Staff analyzes whether the
Company's Application raises "cream skimming" concems.
In the Company's Application, Viasat confirmed that upon approval as an ETC in Idaho,
the Company would participate in the appropriate Idaho programs, specif,rcally the Idaho 9-1-1
program and any future reporting requirements deemed appropriate for competitive
telecommunications providers. The Company requests ETC designation for entire census blocks
in areas where price cap carriers previously declined support to serve and, therefore, no cream
skimming analysis is required. Id. at 12 and Exh. A thereto. Thus, Staff believes Viasat satisfies
the public interest considerations.
JSTAFF COMMENTS JANUARY 8,2019
Network Improvement Plan
In the Idaho ETC Designation Order, a two-year network improvement and progress
report is required for all ETCs receiving high-cost support. See OrderNo. 29841 at 18.
However, the FCC waived the requirement for a winning bidder to file a five-year plan as part of
the ETC designation process. Thus, Staff agrees that a network improvement plan is not a
requirement for Viasat's ETC Application.
Ability to Remain Functional in Emergencies
The Company states that it has the ability to remain functional in emergency situations
in accordance with Commission Order No. 29841 and 47 C.F.R. $ 5a.202(a)(2). Application
at 13-14. Viasat asserts that it "is necessary to have in place contingency plans for credible
emergency situations for each of the major network facilities that are geographically distributed
across the United States ... ground-based facilities are equipped with independent power
generators and sufficient fuel to operate for several days so as to mitigate power outages. The
design of these facilities contains multiple levels of redundancy and autonomy that also mitigate
the need for dedicated human interaction." Application at 13-14. Staff agrees Viasat satisfies
this requirement.
Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix 1 of Order No.
29841and are discussed in more detail below.
l. Common Carrier Status. Viasat is a common carrier as defined in U.S.C. Title 47.
Id. at 10.
2. Provide Universal Services. Viasat will provide all required services and functionalities
as set forth in Section 54.101(a) of the FCC's Rules (47 C.F.R. $ 54.101(a)).
Id. at l0-ll.
3. Advertising. Viasat 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.
$ 21a(e)(1)(B). Id. at 11
4. A Commitment to Consumer Protection and Service. Viasat commits to satisfying all
such applicable State and Federal requirements related to consumer protection and
service quality standards. Id. at 14.
4STAFF COMMENTS JANUARY 8,2019
5. Description of the Local Usage Plan. Viasat has provided a description of its local usage
plan. Id. at14.
STAFF RECOMMENDATIONS
Based on its review of the Company's Application, Staff believes that the Application
demonstrates the Company's commitment to fulfill the obligations of an ETC in Idaho. The
Company will provide all universal services supported by the federal USF throughout its service
territory; it has addressed all of the public interest questions that accompany an ETC
Application; and it will provide a local usage plan. Thus, Staff believes Viasat's Application for
designation as an ETC in Idaho is in the public interest and should be approved.
Respectfully submitted this g,A day ofJanuary 2019.
ean Costello
Deputy Attorney General
Technical Staff: Daniel Klein
i:umisc/comments/newtl 8. lscdk comments
5STAFF COMMENTS JANUARY 8,2019
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 8TH DAY oF JANUARY 2019,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. VCS-T-l8-OI, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
JASON SOPHINOS
ASSOC GENERAL COI.]NSEL
VIASAT INC
349INVERNESS DR S
ENGLEWOOD CO 80112
E-mail : Jason. Sophinos@,r,iasat.com
MICHAEL P DONAHUE
ALEX SCHNEIDER
MARASHLIAN & DONAHUE
1420 SPRING HILL RD, SUITE 401
TYSONS Y A22IO2
E-mail: mpd(g)CommlawGroup.com
coln
CERTIFICATE OF SERVICE
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