20240325Comments of the Commission Staff.pdf

STAFF COMMENTS 1 March 25, 2024
MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11714
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 IM TELECOM, LLC
D/B/A INFINITI MOBILE’S APPLICATION
FOR DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER
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CASE NO. IMT-T-23-01
COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF (“STAFF”) OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Michael Duval, Deputy Attorney General, submits the following
comments.
BACKGROUND
On December 15, 2023, IM Telecom, LLC d/b/a Infiniti Mobile (“Company” or
“INFINITI”) applied to the Idaho Public Utilities Commission (“Commission”) for designation
as an Eligible Telecommunications Carrier (“ETC”) in the State of Idaho (“Application”). The
Company also filed a Notification of Intent to Provide Service on December 20, 2023.
The Company stated that it submitted the Application for designation as an ETC in the
entire State of Idaho—including those on federally recognized Tribal lands for the sole purpose
of utilizing Universal Service Fund (“USF”) funding to provide Lifeline service to qualified
Idaho low-income consumers. The Company also stated that it is not eligible for and does not
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seek Link-Up or high-cost support. Application at 9. The Company requested that its
designation as an ETC include “the authority to participate in and receive reimbursement from
the Idaho Telecommunications Service Assistance Program (ITSAP).” Id. at 2. The Lifeline
program1 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.
The Company represented that the Commission has jurisdiction over this matter and that
the Company is a common carrier with the ability to provide the telecom services listed in its
Application. It also asserted that it meets all federal and state requirements for designation as an
ETC, including the requirements for ETCs participating in the Lifeline program, and that being
designated as an ETC is in the public interest. The Company asked that the Commission grant it
ETC status “expeditiously.” Id. at 2.

The Application
The Company is an Oklahoma limited liability company, which was organized in the
State of Oklahoma on February 9, 2012, with its principal office located at 500 N. Central
Expressway, Suite 202, Plano, Texas 75074. It is authorized to do business in Idaho, by the
Secretary of State, as a Foreign Limited Liability Company.2 The Company is a wholly owned
subsidiary of KonaTel, Inc., a Delaware corporation. The Company confirmed that it is a
provider of Commercial Mobile Radio Service and provides prepaid wireless
telecommunications services to consumers by using the underlying wireless networks of AT&T
Mobility (“AT&T”), Verizon Wireless (“Verizon”) and T-Mobile USA, Inc. (“T-Mobile”)
(collectively “Underlying Carriers”) on a wholesale basis. Id at 3.
The Company requested an ETC designation that is statewide in scope to allow the
Company to provide basic Lifeline service wherever its underlying, facilities-based providers
have wireless coverage, including federally recognized tribal lands,3 including as it may change

1 The Lifeline program does ensure that low-income consumers have access to and can afford essential voice and
broadband communications services.

2 Staff confirmed and reviewed the certificate of registration with the Secretary of State website.
3 In compliance with Commission Order 35126, the Company stated that a copy of this Application was sent
concurrent with this filing to the tribes identified on the attached Certificate of Service. Additionally, the Company
requested that the Commission expressly indicate in the ETC designation order that such designation includes
federally recognized tribal lands.
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going forward. Id. at 9. The Company asserted that it meets the requirements of Section
214(e)(1) of the Federal Telecommunications Act (“Act”) to be designated as an ETC. Id. at 4-6.
The Company stated that it is entitled to an ETC designation status under 47 U.S.C. §
214(e)(2), which authorizes state commissions to grant ETC designations. Id. at 5-6. The
Company asserts that it: (1) is a common carrier; (2) commits and can provide services supported
by federal universal support mechanisms; (3) will advertise the availability of supported services
in a manner reasonably designed to reach those likely to qualify; (4) is committed to consumer
protection and service quality standards; (5) is capable of remaining functional in emergencies;
(6) has the financial and technical capability to provide Lifeline service; and (7) will comply
with requirements imposed by this Commission. Id. at 7-13.
The Company affirmed that it seeks the ETC designation “solely to utilize USF funding
to provide Lifeline service to qualified low-income consumers” in Idaho. Id. at 9. The Company
represents that being granted the ETC designation will benefit the public interest by making the
Company’s services available to a broad range of low-income consumers in Idaho. Id. at 18.
The Company noted that one of the goals of the Act is to secure lower prices and higher quality
services for American telecommunications consumers and encourage the rapid deployment of
new telecommunications technologies to all consumers, regardless of geographic location or
income. Thus, granting it the ETC designation in Idaho will further that public interest. Id. at
17.

INFINITI’s Lifeline Service Offerings
The Company represented that it offers an easy-to-use, competitive, and highly
affordable wireless telecommunications service, which benefits qualified consumers who either
have no other service alternatives or who choose a wireless prepaid solution instead of a more
traditional service. Id. at 18. The prepaid mobile phone services include calling, text messaging,
and broadband access, along with user-friendly handsets, tablets, or hotspot devices. Id. at 4.
The Company confirmed that it intends to offer the following Idaho service plan.4 All Plans, as
shown in Table 1 below, include Free phone or SIM card, Calls to 911 emergency services, Calls
to Customer Service, Access to Voicemail, Caller-ID, Call-Waiting, Call-Forwarding, and 3-
Way Calling features, Domestic, Long-Distance Calls. Additionally, Customers will have the

4 This is also shown on Exhibit 7 attached to the Application.
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possibility to top up their services. Top ups will be composed of $10.00 for 1,000 minutes and
1,000 texts; $10.00 for 1 Gigabyte (“GB”) Refill; $20.00 for 2GB Refill; and $30.00 for 4GB
Refill.

Table 1: Proposed Wireless Lifeline Offering

Product Plans Plan 1 (Non- Tribal) Plan 2 (Non-Tribal) Plan 3 (Tribal)
Data 1 GB 4.5 GB 6 GB
Voice Minutes 1,000 3,000 3,000
Text 1,000 Unlimited Unlimited
Price to Lifeline
Subscribers $14.00/month $20.00/month $0.00/month

STAFF ANALYSIS
Staff reviewed The Company’s Application. Staff analyzed the Company’s fulfillment of
the Federal Telecommunications Act of 1996 (“Act”), the Federal Communications Commission
(“FCC”) regulations, and Idaho Public Utilities Commission Order Nos. 29841 and 35126. 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” concerns.
In the Application, the Company confirmed that upon approval as an ETC in Idaho, it
would participate in the appropriate Idaho programs, specifically the ITSAP program.
Application at 2. The Company requests an ETC designation that is statewide in scope. Id. at 9.
Therefore, no cream skimming analysis5 is required. Staff believes that the Company satisfies
the public interest considerations.

5 Cream skimming analysis is the examination of the perceived business practice of a company providing a product
or a service to only the high-value or low-cost customers of that product or service, while disregarding clients that
are less profitable for the company.
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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 Case No. CRI-T-11-01 that ETC Applications for Lifeline-only ETC designations
do not require a two-year network improvement plan. Order No. 32501.
In the USF and Inter-Carrier Compensation (“ICC”)6 Transformation Order, the 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
The Company’s Application seeks only low-income USF support as a Lifeline-only ETC.
Therefore, Staff believes that the Company need not submit a network improvement plan with its
Application.

Tribal Notification
Pursuant to Commission Order No. 35126, an ETC applicant seeking ETC designation
for any part of tribal lands in Idaho 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. The
Company provided a Certificate of Service8 that certified that it sent USPS-certified mail to the
tribal authorities. Staff believes this certificate complies with Commission Order No. 35126.

Ability to Remain Functional in Emergencies
The Company stated that it will provide prepaid wireless telecommunications services to
consumers by using the underlying wireless networks of the Underlying Carriers. Application at

6 An 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.
8 See Exhibit 8 attached to the Application.
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11. Thus, because of this access to the Underlying Carriers’ networks, it can remain functional
in emergencies per Commission Order Nos. 29841, 35126, and 47 C.F.R, § 54.202(a)(2).
Application at 11-12. The Company asserts that it will utilize the extensive and well-established
network and facilities of Tier 1 carriers to provide its Lifeline services. The 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. Id. Therefore, the Staff accepts that the
Company satisfies this requirement.

Other ETC Designation Requirements
Additional requirements for ETC designation are detailed in Appendix 1 of Order No.
29841 and Order No. 35126 and are discussed in more detail below.

1. Common Carrier Status.
The Company is a common carrier as defined by Title 47 U.S.C. § 153(10) and
section 332(c)(1)(A) of the Act. Id. at 7.
2. Provide Universal Services.
The Company states that it 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 13-
14.
3. Advertising.
The Company stated that it 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); and section 54.405(c) of the FCC’s rules. Id. at 10.
4. A Commitment to Consumer Protection and Service.
The Company stated that it is committed to satisfying all such applicable state and
federal requirements related to consumer protection and service quality standards,
including compliance with the Cellular Telecommunications and Internet
Association’s Consumer Code for Wireless Service as required by 47 C.F.R. §
54.202(a)(3). Id. at 12.

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5. Description of the Local Usage Plan.
The Company offered a Lifeline service plan as outlined in Exhibit 7.

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

Respectfully submitted this 25th day of March 2024.

________________________________
Michael Duval
Deputy Attorney General

Technical Staff: Johan Kalala-Kasanda

I:\Utility\UMISC\COMMENTS\IMT-T-23-01 Comments.docx

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CERTIFICATE OF SERVICE
CERTIFICATE OF SERVICE

I HEREBY CERTIFY THAT I HAVE THIS 25TH DAY OF MARCH 2024,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IMT-T-23-01, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:

LANCE JM STEINHART
LANCE JM STEINHART PC
1725 WINDWARD CONCOURSE
STE 150
ALPHARETTA GA 30005
E-MAIL: [e-mail]

_________________________________
KERI HAWKER

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