HomeMy WebLinkAbout20151020Exhibit 7 NE ETC approval.pdfApplication No. C-4622/NUSF-90 Page 1
APPENDIX “A”
In the Matter of the Application
of i-wireless, LLC, Newport,
Kentucky, seeking limited
designation as a Lifeline-only
Eligible Telecommunications
Carrier in the State of
Nebraska.
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Application No. C-4622/NUSF-90
GRANTED
Entered: June 16, 2015
APPEARANCES:
For the Applicant:
Russell Westerhold
Fraser Stryker PC LLC
500 Energy Plaza
409 South 17th Street
Omaha, Nebraska 68512
For the Commission:
Shana Knutson
300 The Atrium
1200 N Street
Lincoln, Nebraska 68508
BY THE COMMISSION:
On July 25, 2013, an application was filed by i-wireless,
LLC (“i-wireless” or “Applicant”), of Newport, Kentucky, seeking
designation as an Eligible Telecommunications Carrier (ETC) so
it may receive available support from the federal and Nebraska
universal service funds for the Lifeline and Nebraska Telephone
Assistance Programs. Notice of this application was published
in the Daily Record, Omaha, Nebraska, on July, 30, 2013. No
other party protested the application or filed a Petition
seeking Formal Intervention.
A hearing on the application was held on May 12, 2015, in
the Commission Hearing Room, Lincoln, Nebraska. Appearances at
the hearing are indicated above. i-wireless presented one
witness in support of its application.
Summary of Testimony and Evidence
Applicant is a North Carolina Limited Liability Company.
Its principal office is located in Newport, Kentucky. Applicant
is a provider of commercial mobile radio service (“CMRS”)
throughout the United States and provides prepaid wireless
telecommunications services to consumers by using the Sprint
Spectrum, L.P. network on a wholesale basis. Applicant obtains
from Sprint the network infrastructure, including wireless
transmission facilities, to allow it to operate as a Mobile
Virtual Network Operator.
Applicant presented one witness, Eric Schimpf, who serves
as Director of New Business Development for the company. In his
pre-filed testimony, Mr. Schimpf described how i-wireless
satisfied each of the applicable federal and state prerequisites
for designation as a competitive ETC for Lifeline, known in
Nebraska as the Nebraska Telephone Assistance Program (NTAP),
services throughout the Company’s requested service areas in
Nebraska. Applicant is not seeking eligibility for high-cost
support from the state or federal universal service funds.
Applicant seeks a Lifeline-only ETC and NETC designation in
the Nebraska wire centers listed in the appendix to this Order.
Applicant plans to offer its Lifeline service under the brand
name “Access Wireless.” Applicant offers a couple of different
plans for Lifeline customers. First it offers a 250 Anytime
Minutes Plan where Applicants receive a free handset and 250
anytime minutes per month. Second, applicant offers a retail
discount plan which allows Lifeline eligible customers to choose
from any i-wireless monthly retail plan (except a text only
plan) at a $15 discount. Customers can change their plan on
their monthly plan date, without penalty. Applicant does not
assess charges for activation or connection of service. The 250
minute plan includes all applicable taxes and fees. Minutes are
credited to a customer’s account at the beginning of every 30-
day cycle. Customers may place calls to customer service and 911
for free, regardless of account balance or activation status.
In addition, through Applicant’s partnership with Kroger
Co. (“Kroger”) the nation’s largest grocery retail chain,
customers can accumulate free minutes for dollars spent at
participating Kroger-owned store locations simply by using their
Kroger loyalty shopper’s card. Customers can purchase additional
airtime if needed. Additional airtime may be purchased at
Kroger-owned stores, over the phone, or online. Applicant sends
low and depleted balance alerts in the form of a free text
message to the customer and also alerts the customer through a
free text message when minutes have been added to their account.
Applicant stated that it satisfies all of the applicable
requirements for ETC and NETC designation in Nebraska. Nexus
demonstrated it is a common carrier as defined by the FCC and
provides all of the services and functionalities supported by
the universal service program. Nexus also committed to advertise
the availability of these services using media of general
distribution. Finally, Applicant agreed to comply with Nebraska-
specific ETC and NETC requirements including, but not limited
to, audit and reporting requirements.
Applicant has obtained forbearance of the facilities
requirement by meeting the requisite criteria laid out by the
FCC.1 On September 9, 2011, Applicant submitted an amended
Compliance Plan with the FCC in WC Docket No. 09-197 and WC
Docket No. 11-42.2 The Compliance Plan details the verification,
certification and other anti-fraud measures Applicant will take
to comply with state and federal requirements and ensure that
Lifeline support is provided only to consumers who are truly
eligible. Applicant’s Compliance Plan was submitted as Exhibit 5
to Applicant’s application. On October 21, 2011, the FCC
issued a Public Notice that it had approved Applicant’s
Compliance Plan.
O P I N I O N A N D F I N D I N G S
Section 214(e) of the Telecommunications Act of 1996 (the
Act) initially set forth the standards and processes for a state
commission to grant carriers the designation of an eligible
telecommunications carrier. The three general requirements
listed in Section 214(e) are that: (1) the carrier must be a
common carrier; (2) the carrier must offer the “services” that
are supported by the federal fund; and (3) the carrier must
advertise the availability of those services. In addition, the
carrier must fulfill these criteria throughout the service area
for which the designation is received.
In its Lifeline Reform Order, the FCC revised 47 C.F.R. §
54.101(a) to read as follows:
(a) Services designated for support. Voice telephony
services shall be supported by federal universal
service support mechanism. Eligible voice telephony
services must provide voice grade access to the public
switched network or its functional equivalent; minutes
of use for local service provided at no additional
charge to end users; access to the emergency services
provided by local government or other public safety
organizations, such as 911 and enhanced 911 systems. .
1 See i-wireless, LLC, Petition for Forbearance from 47 U.S.C. § 214(e)(1)(A),
CC Docket No. 96-45, filed April 1, 2009 (“Petition for Forbearance”), Order,
FCC 10-117 (rel. June 25, 2010)(“i-wireless Forbearance Order”).
2 See Third Amended Compliance Plan of Nexus Communications, Inc., WC Docket
Nos. 09-197 and 11-42 (filed Dec. 4, 2012) approved in Public Notice DA 12-
2063 on December 26, 2012.
.; and toll limitation to qualifying low-income
consumers as provided in subpart E of this part.3
Federal law also requires the Commission to determine that
the ETC is financially and technically capable4 of providing the
supported Lifeline service and that the designation of an ETC
would be consistent with the public interest.5 47 U.S.C. §
214(e)(2). The FCC offered additional guidance on the public
interest question through its past decisions.6
To implement the forgoing federal requirements and FCC
guidance, the Commission has adopted regulations governing the
application process and ETC designation requirements in the
State of Nebraska (“ETC designation rules”). The Commission’s
ETC designation rules are found at Neb. Admin. Code, Title 291,
Ch. 5, §§ 009.01-009.02C. The Commission’s annual reporting
rules are codified at Neb. Admin. Code, Title 291, Ch. 5, §§
009.03-009.04B.
Common Carrier
Upon review of the application and testimony presented, the
Commission finds that Applicant is a common carrier for purposes
of ETC designation. The Act defines a common carrier as a
person engaged as a common carrier on a for-hire basis in
interstate communications utilizing either wire or radio
technology. 47 U.S.C. § 153(10). The FCC’s Rules also
specifically provide that CMRS is a common carrier service. 47
C.F.R. § 54.20.9(a).
3 47 C.F.R. § 54.101(a)(April 2, 2012).
4 See 47 C.F.R. § 54.201(h).
5 See 47 U.S.C. § 214(e)(2); see also 47 C.F.R. § 54.201(c).
6 See In the Matter of Federal-State Joint Board on Universal Service,
Virginia Cellular, LLC, Petition for Designation as an Eligible
Telecommunications Carrier in the Commonwealth of Virginia, CC Docket 96-45,
Memorandum Opinion and Order, FCC 03-338 (rel. Jan 22, 2004) (“Virginia
Cellular”); In the Matter of Federal-State Joint Board on Universal Service,
Highland Cellular, Inc. Petition for Designation as an Eligible
Telecommunications Carrier in the Commonwealth of Virginia, CC Docket 96-45,
Memorandum Opinion and Order, FCC 04-37 (rel. April 12, 2004) (“Highland
Cellular”); and In the Matter of Federal-State Joint Board on Universal
Service, CC Docket 96-45, Report and Order, FCC 05-46 (rel. March 17, 2005)
(“March 2005 Order”).
Supported Services
We further find that Applicant has demonstrated the ability
and commitment to provide the Supported Services listed above
using its own network facilities or a combination of its own
facilities and the resale of another carrier’s services.
Applicant’s application states it will make service available to
consumers through underlying carriers including Sprint.
Voice Grade Access
Applicant stated its subscribers will receive voice grade
access. Applicant will provide its customers with the ability to
make and receive calls on the public switched telephone network.
Local Usage
Applicant stated that it will provide a variety of rate
plans to provide its customers with minutes of use for local
service at no additional charge.
We find that Applicant meets the local usage requirement.
Access to Emergency Services
The Applicant provided evidence of its ability to remain
functional during emergency situations. Applicant provides 911
and E911 access for all of its customers to the extent the local
government in its service area has implemented 911 or E911
systems. Applicant also complies with the FCC’s regulations
governing the deployment and availability of E911 compatible
handsets.
Advertising
We find that Applicant has provided sufficient evidence of
its commitments to advertise the availability of and charges for
the Supported Services using media of general distribution. The
application provided that Applicant will advertise through a
combination of media channels such as television and radio,
newspaper, magazine and other print advertisements, outdoor
advertising, direct marketing, and the Internet.
Designated Service Areas
We find that Applicant has properly identified the service
areas in which it is requesting ETC designation. Applicant
seeks to be designated as an ETC throughout each of the non-
rural telephone company service areas identified in Exhibit A to
its application for the purpose of receiving Lifeline/NTAP
support only.
Provision of Service to Requesting Customers
Pursuant to Section 009.02A5 of the Commission’s ETC
designation rules, an Applicant must demonstrate its commitment
to provide service throughout its designated service area to
customers who make a reasonable request for service. Applicant
demonstrated it was capable of providing service and committed
to providing service dedicated to support as defined in 47
C.F.R. § 54.101. We find Applicant has sufficiently demonstrated
its commitment to provide service throughout its designated
service area to customers making a reasonable request for
service.
Ability to Function During Emergencies
Pursuant to Section 009.02A7 of the Commission’s ETC
designation rules, Applicants must demonstrate an ability to
remain functional during emergency situations. Although this
requirement applies to carriers seeking high-cost support which
Applicant is not, Applicant demonstrated it satisfies this
requirement. Applicant will provide services through the use of
facilities obtained from a major carrier and will provide to its
customers the same ability to remain functional in emergency
situations as is currently provided by the vendor to its own
customers including a reasonable amount of back-up power to
ensure functionality without an external power source, re-
routing of traffic around damaged facilities, and the capability
to manage traffic spikes in the event of emergency situations.
Public Interest
Public interest considerations may include the benefits of
increased consumer choice and the unique advantages of the
Applicant’s service offering. In support of this requirement,
Applicant stated that its designation will serve the public
interest and the needs of low-income consumers. Further,
Applicant states it has specifically tailored its wireless
service plans to the needs of underserved customers by offering
a limited voice service for free and an expanded plan at
affordable rates. Applicant has adopted the CTIA Consumer Code
for Wireless Service and has committed to using its best efforts
to resolve complaints received by the Commission. In addition,
Applicant confirmed its intention of meeting consumer protection
and service quality standards by committing to comply with all
applicable Nebraska statutes and rules and regulations and
paying all applicable federal, state, and local regulatory fees,
including universal service and E-911 surcharges. Based on the
particular facts before us, we find Applicant’s business plan
provides a unique advantage to low-income consumers that would
serve the public interest. We conclude Applicant demonstrated
that its designation as an ETC would be consistent with the
public interest, convenience, and necessity.
Applicant has demonstrated that it meets the standards set
forth in 47 U.S.C. § 214(e), the supplemental requirements set
out in the Lifeline Reform Order, and applicable state and
federal law for the designation of eligible telecommunications
carriers in the proposed geographic area.
Lifeline Certification and Verification Requirements
The Commission utilizes a coordinated enrollment process to
initially enroll and certify Lifeline/NTAP subscriber
eligibility. The Commission maintains an agreement with the
Nebraska Department of Health and Human Services (NDHHS) to
determine whether a subscriber participates in a number of
qualifying programs. In addition, all subscribers of the ETCs
service offerings are required to utilize the Commission’s NTAP
Application Form for enrollment. At the hearing, Applicant
committed to comply with the Commission’s requirements relative
to Lifeline/NTAP certification, verification and use of the
Commission’s application form. Applicant will also be required,
on a monthly basis, to provide the Commission with a list of all
subscribers added or removed and a full report of all
Lifeline/NTAP subscribers twice annually. Applicant committed to
following these requirements.
In addition, Applicant shall also notify the Department in
advance of any promotional events provided at temporary
locations or structures in its designated service territory.
Notification of at least five (5) calendar days, where possible,
will be provided. However, in no instance shall notice to the
Commission be provided later than notice of a promotional event
is provided to consumers. In cases where a temporary promotional
location has changed, Applicant will notify the Department of
its new or revised location.
Continuing Jurisdiction
Finally, the Commission has jurisdiction and authority to
ensure that Applicant continues to meet the ETC criteria set
forth in Section 214(e) of the Act and the Commission’s rules
and regulations. Nothing prevents the Commission from, on its
own motion, modifying, suspending, or revoking Applicant’s ETC
designation if it at any time fails to meet the obligations of
the Act, applicable federal rules, Commission rules and
regulations, or if it fails to provide the supported services
within a reasonable time frame.
O R D E R
IT IS THEREFORE ORDERED by the Nebraska Public Service
Commission that the application of i-wireless, LLC, to be
designated as an Eligible Telecommunications Carrier for the
limited purpose of receiving low-income program (Lifeline/NTAP)
universal service support shall be, and is hereby, granted.
IT IS FURTHER ORDERED that i-wireless, LLC, shall file
information with the Commission evidencing it is advertising
through media of general distribution on or before July 1st each
year hereafter.
IT IS FURTHER ORDERED that i-wireless, LLC, is hereby
declared to be an Eligible Telecommunications Carrier for the
purpose of receiving low-income program (Lifeline/NTAP)
universal service support in the wire centers identified in
Appendix A to this Order.
IT IS FINALLY ORDERED that i-wireless, LLC, shall file a
copy of this Order with the Universal Service Administrative
Company (“USAC”) and the FCC to commence its receipt of federal
universal service support effective as of the date of this
Order.