20240711Staff Comments.pdf

RECEIVED
Thursday, July 11, 2024 4:52:08 PM
IDAHO PUBLIC
UTILITIES COMMISSION
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 TRUCONNECT )
COMMUNICATIONS,INC.'S APPLICATION ) CASE NO. TCC-T-24-01
FOR DESIGNATION AS AN ELIGIBLE )
TELECOMMUNICATIONS CARRIER )
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 March 04, 2024, TruConnect Communications, Inc. ("TruConnect" or the
"Company") filed an Application("Application") with the Idaho Public Utilities Commission
("Commission") for designation as an Eligible Telecommunications Carrier("ETC") in the State
of Idaho. On May 1, 2024, the Company submitted an addendum to the Application providing
additional information in compliance with Commission Order No. 35126.
On July 9, 2024, the Company submitted a supplement to its Application providing
additional information regarding the changes that the parent company, TSC Acquisition
STAFF COMMENTS 1 JULY 11, 2024

Corporation("TSC") is planning to make regarding the Company and its sister company, Sage
Telecom Communications, LLC ("Sage Telecom").
The Company stated that it submitted the Application for designation as an ETC in the
entire State of Idaho for the sole purpose of utilizing Universal Service Fund("USF") funding to
provide Lifeline service to qualified Idaho consumers. The Company also stated that it is not
eligible for and does not seek Link-Up or high-cost support. Application at 1-2. 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.
The Lifeline program' 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 Application
The Company is a Delaware corporation with its principal office located at 1149 S. Hill
Street, Suite H-400, Los Angeles, California 90015. It is authorized to conduct business in Idaho
as a Foreign Limited Liability Company by the Idaho Secretary of State.2
The Company stated that it is a subsidiary of TSC Acquisition Corporation ("TSC"), but
was formerly known as Telscape Communications, Inc. TSC also owns Sage Telecom
Communications, LLC d/b/a TruConnect, formerly known as Sage Telecom, Inc. before a
corporate restructuring in 2012. The owners of TSC separately own TruConnect Mobile, LLC,
which sells mobile hotspot devices and low-cost monthly data plans, as well as TruConnect
Technologies, LLC, a mobile data analytics company that develops data intelligence products
and services for wireless carriers, cable operators, and content providers. Application at 3.
The Company represented that it provides prepaid wireless telecommunications services
to customers by using the underlying wireless networks of facilities-based providers, T-Mobile
USA, Inc. ("T-Mobile") and Verizon Wireless ("Verizon") (collectively, "Underlying Carriers")
on a wholesale basis to offer nationwide service. Id. at 3-4.
' 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.
STAFF COMMENTS 2 JULY 11, 2024

The Company requested an ETC designation that is statewide in scope to allow the
Company to provide basic Lifeline service wherever its Underlying Carriers have wireless
coverage, including federally recognized tribal lands.3 Additionally, the Company stated that it
understands that its service area overlaps with rural carriers in Idaho but maintains that the public
interest factors do justify its ETC designation status in these carriers' service areas, especially
because it seeks ETC designation solely to utilize USF funding to provide Lifeline service to
qualified low-income consumers. Id. at 11.
The Company stated that it satisfies the requirements for an ETC designation status under
47 C.F.R. § 54.201. Section 254(e) of the Act provides that only an eligible telecommunications
carrier designated under Section 214(e) shall be eligible to receive specific federal universal
service support. Also, 47 U.S.C. § 214(e)(2) does authorize state commissions to grant ETC
designations. Id. at 5 and 7.
As required by Sections 214(e)(1) and 54.201(d), of the Federal Telecommunications Act
of 1996 ("the Act"), the Company asserts that it is: (1) 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-
14.
The Company represented that being granted the ETC designation will benefit the public
interest because its wireless service includes larger calling areas, the convenience and security
afforded by mobile service, and an unlimited amount of voice and a generous amount of
broadband access included without cost, after application of the Lifeline support, as well as free
access to caller ID, call waiting, Voicemail features, and access to 911 services regardless of the
number of voice minutes remaining on the Lifeline consumer's plan. The Company stated that
these no-cost-to-consumer services are an invaluable resource for cash-strapped consumers. The
prepaid nature of the service also provides an alternative for unbanked consumers. Id. at 21.
3 In compliance with Commission Order 35126,the Company submitted an addendum to this Application providing
a declaration certifying that a copy of the Application was sent by United States Mail to the authorities of the five
Tribes located in the State of Idaho.
STAFF COMMENTS 3 JULY 11, 2024

The Company observed that, in today's market, consumers (including qualified Lifeline
customers)view the portability and convenience of wireless service not as a luxury but as a
necessity. Mobile service allows children to reach their parents, allows a person seeking
employment greater ability to be contacted by potential employers, and provides end users with
the ability to contact emergency service providers regardless of location. Mobile service often
also serves as a key bridge in closing the homework gap for students who live in rural areas with
limited broadband access. Thus, granting it the ETC designation in Idaho will promote public
interest. Id. at 22.
The Company represented 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.
Lifeline Service Offerings
The Company confirmed that its service offering includes prepaid wireless services,
budget-friendly pricing of local and long-distance calling, text messaging, broadband access, and
the option for a consumer to bring their device. It also included access (at no charge)to custom
calling features such as Caller ID, Call Waiting, Call Forwarding, 3-way Calling, and Voicemail.
A user-friendly handset or hotspot device may also be provided. No service contract will be
required from customers. Additionally, its products and plans will be specially geared toward
serving lower-income communities in rural areas that are predominantly unserved by other ETCs
designated in the state. Thus, the Company's service offering will contribute to the expansion of
mobile wireless and broadband services for low-income consumers in Idaho. Id. at 4-5.
The Company stated that its Lifeline customers will receive, as shown in Table I below,
unlimited voice minutes, unlimited text messages, and 4.5 gigabytes ("GB") of data per month
with full access to the T-Mobile and Verizon networks at a net cost of$0.00 after application of
Lifeline support. Customers will be able to purchase additional data as needed. All plans will
include nationwide domestic long-distance at no extra per-minute charge and free international
calling to Canada, Mexico, China, Vietnam, and South Korea. The Company will not assess any
usage for access to its free customer services (611). Emergency (911) calls will be free,
STAFF COMMENTS 4 JULY 11, 2024

regardless of service activation or availability of minutes, and will not count against the
customer's airtime. Id. at Exhibit 6.
Table 1: Proposed Wireless Lifeline Offering
DATA (High Free
LIFELINE TEXT Speed-4G International Lifeline
PLAN VOICE (SMS) minimum) Calling Price
Canada, Mexico,
Lifeline China, Vietnam,
Only Unlimited Unlimited 4.5 GB South Korea $0.00
Tribal Canada, Mexico,
Lifeline China, Vietnam,
Only Unlimited Unlimited 10 GB South Korea $0.00
The packages offered also include, as illustrated in Table 2, free calls to TruConnect
Customer Service, free calls to 611 services, free calls to 911 emergency services, free access to
Voicemail, Caller-ID, Call Waiting features (Voice minutes may be used for Domestic Long
Distance at no extra cost) and free SIM Card. Id. at Exhibit 6.
Table 2• Top-Ups
"TOP-UPS" Price
International Top-Up 55 Countries $5
500 MB High-Speed Data $5
1 GB High-Speed Data $10
3 GB $20
8 GB $30
STAFF COMMENTS 5 JULY 11, 2024

STAFF ANALYSIS
Staff reviewed the Company's Application. Staff analyzed the Company's fulfillment of
the Act, the Federal Communications Commission("FCC") regulations, and Idaho Public
Utilities Commission Order Nos. 29841 and 35126.
Staff have concluded that the Company has failed to adequately demonstrate that it can
fulfill the obligations of a Lifeline-only ETC provider in Idaho. The Company should not be
granted the ETC designation status in the State of Idaho. Commission Order No. 35126 notes
that, for ETC status to be granted, an applicant must show that it has Common Carrier Status,
provides Universal Services, meets advertising requirements, and is in the Public Interest. The
specific reason for this conclusion is that Staff does not believe that the Company's Application
fully satisfies the public interest requirements of Commission Order No. 35126, for it to be
granted the ETC designation status. The details of Staff analysis are provided herein below:
Statutory Designation Requirements of Commission Order No. 35126
1. Common Carrier Status. Order No. 35126, Appendix at 1. 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.
Application at 9.
2. Provide Universal Services. Order No. 35126, Appendix at 1. The Company
confirmed that, through its Underlying Carriers, 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)).
Application at 9.
3. Advertising. Order No. 35126, Appendix at 1. 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). Section 54.405(c) of the FCC's
rules, and Idaho Code § 62- 6101)(3)(b). Application at 12.
4. Public Interest. Order No. 35126, Appendix at 2. The Company represented that
being granted the ETC designation will benefit the public interest because of its wireless service
offering. This includes larger calling areas, the convenience and security afforded by mobile
service, and an unlimited amount of voice. Additionally, a generous amount of broadband
access is included without cost, after the application of the Lifeline support, free access to caller
STAFF COMMENTS 6 JULY 11, 2024

ID, call waiting, Voicemail features, and access to 911 services regardless of the number of voice
minutes remaining on the Lifeline consumer's plan. The Company stated that these no-cost-to-
consumer services are an invaluable resource for cash-strapped consumers, and the prepaid
nature of the service also provides an alternative for unbanked consumers. Id. at 21.
Staff is sympathetic to the needs of the low-income, "cash-strapped consumers" and
"unbanked" customers but does not believe this alone is a compelling public interest argument.
Staff carefully assessed the added benefits of granting ETC designation to another competitive
eligible telecommunications carrier("CETC") in a service area where other CETCs currently
offer service. In this Application, the Company does not appear to offer any unique services, nor
does it present a compelling advantage to the low-income customers it intends to serve. The
Incumbent Local Exchange Carrier ("ILEC") currently offers Lifeline and Link-Up in the ETC-
designated service area. In addition, other wireless and wireline companies offer Lifeline and
Link-Up in the same designated service area. This includes the Company's sister Company Sage
Telecom Communications, LLC.
The Company provides no factual information to support its assertion that a lack of
advertising exists. It also does not provide evidence that a demand or a need exists for another
ETC in the designated service area. Staff, therefore, does not believe that the Company has met
the burden of proof that granting ETC status to the Company would be of public interest in the
designated service area.
5. Tribal Notification. Order No. 35126, Appendix at 2. The Company does
acknowledge this requirement and filed an addendum to its Application, on March 4, 2024,
providing a declaration certifying that a copy of this Application was sent by United States Mail
to all five Tribes located in the State of Idaho. Staff believes this certificate complies with
Commission Order No. 35126.
Additional Eliiibility Requirements of the Commission Order No. 35126
Pursuant to Order No. 35126, all ETC applicants must satisfy the following additional
requirements for ETC designation in Idaho:
1. The Commitment and Ability to Provide Supported Services.
STAFF COMMENTS 7 JULY 11, 2024

The Company commits to providing all supported services through its Underlying Carriers'
service throughout its proposed ETC-designated service area to all customers. Order No. 35126
at 2; Application at 9.
2. The Ability to Remain Functional in Emergencies. Order No. 35126 at 3.
Pursuant to Order No. 35126, The Company stated that it will provide prepaid wireless
telecommunications services to consumers by using the underlying wireless networks of the
Underlying Carriers. Order No. 35126 at 3; Application at 3-4. 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 14. The Company
confirmed that it will utilize the extensive and well-established network and facilities of T-
Mobile and Verizon 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. Staff, therefore, must assume no emergency backup will be
available by the Company to its customers other than the services provided by the Underlying
Carriers.
The Commission believes this requirement demonstrates a commitment to service,
quality, and reliability. The Commission Order No. 35126 specifically requires that"an ETC
applicant must demonstrate that it has a reasonable amount of backup power to ensure
functionality without an external power source."Appendix 3. Staff believes that the Company
does not appear to provide any value-added services regarding emergency functionality.
3. 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). Order No. 35126 at 3; Application at 14.
4. Description of the Local Usage Plan. The Company offered a
Lifeline service plan as outlined in Exhibit 6. Order No. 35126 at 3.
5. Network Improvement Plan. Pursuant to Order No. 35126, the Commission requires
a two-year network improvement and progress report from all ETCs receiving high-cost support.
Order No. 35126 at 3;see Order No. 29841 at 18. However, the Commission determined in
STAFF COMMENTS 8 JULY 11, 2024

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")4 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."5
The Company's Application seeks only low-income USF support as a Lifeline-only ETC.
Therefore, Staff believes that the Company does not need to submit a network improvement plan
with its Application.
Additional Elements of the Application
The Company reported that it has been granted ETC designation in other states, including
California,New Jersey, Massachusetts, Rhode Island, Vermont, Tennessee, Virginia, the U.S.
Virgin Islands, Alabama, Illinois, Kentucky, Louisiana,North Carolina,New York, and Texas.
Application at 4. Staff believes an ETC Application must be analyzed based on its own merits
and following the Idaho ETC requirements and not on the actions of other state commissions.
Idaho is a reverse pre-emptive state.
SUMMARY AND RECOMMENDATIONS
After a careful review of the Application and the Idaho ETC designation requirements,
Staff does not believe that the Company has made a compelling argument to satisfy the public
interest argument. In reviewing the Company's Lifeline service offering, Staff does not believe
that the Company offers anything new or provides any unique advantages to Idaho consumers,
including low-income customers. The Company provides prepaid wireless telecommunications
services, on a wholesale basis, to consumers by using the underlying wireless networks of
facilities-based providers such as T-Mobile and Verizon. This doesn't provide new or
exceptional services.
a An ICC is the system of regulated payments in which carriers compensate each other for the origination,transport,
and termination of telecommunications traffic.
5 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.
STAFF COMMENTS 9 JULY 11, 2024

The Company failed to carry the burden of proof in demonstrating the unique advantages
and disadvantages of the Applicant's service offering. More importantly, the Application does
not fully address all of the Commission Order's ETC designation requirements—most notably
the Ability to Remain Functional in an Emergency.
The Company asserts that it intends to serve the unbanked and cash-strapped low-income
consumers in Idaho. However, the Company does not show evidence of this pent-up demand, or
how it will satisfy this demand or need in a manner that cannot be met by the ILEC or other
CETCs in the designated service area.
For these reasons, Staff recommends the Commission deny the Company's request for
ETC Designation within the State of Idaho.
Respectfully submitted this 111h day of July 2024.
Michael Duval
Deputy Attorney General
Technical Staff. Johan Kalala-Kasanda
L•\Utility\UMISC\COMMENTS\TCC-T-24-01 Comments.docx
STAFF COMMENTS 10 JULY 11, 2024

CERTIFICATE OF SERVICE
OF JULY 2024
I HEREBY CERTIFY THAT I HAVE THIS �DAY ,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. TCC-T-24-01, BY E-MAILING A COPY THEREOF TO THE FOLLOWING:
NATHAN JOHNSON DANIELLE PERRY
TRUCONNECT COMMUN. TRUCONNECT COMMUN.
1149 S HILL ST, STE H-400 1149 S HILL ST, STE H-400
LOS ANGELES CA 90015 LOS ANGELES CA 90015
E-MAIL: niohnson(&truconnect.coin E-MAIL: dperry cni truconnect,com
PA RICIA JORDAN, ECRETARY
CERTIFICATE OF SERVICE