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HomeMy WebLinkAbout20250402Staff Comments.pdf RECEIVED April 02, 2025 ADAM TRIPLETT IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 10221 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 CABLE ONE VOIP LLC ) d/b/a SPARKLIGHT'S APPLICATION TO ) CASE NO. CAB-T-24-01 RELINQUISH DESIGNATION AS AN ) ELIGIBLE TELECOMMUNICATIONS ) CARRIER ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its Attorney of record, Adam Triplett, Deputy Attorney General submits the following comments. BACKGROUND On December 16, 2024, Cable One VoIP LLC d/b/a Sparklight("Company") submitted a request to the Commission to relinquish the Company's Eligible Telecommunications Carrier ("ETC") designation status in Idaho. Request at 1. The Company sought "an order confirming the Company's relinquishment of its ETC designation in its entirety." Id. at 6. This entails the relinquishment of its Rural Digital Opportunity Fund("RDOF") ETC designation status and its Lifeline ETC designation status in non-RDOF areas. STAFF COMMENTS 1 APRIL 2, 2025 The Federal Communications Commission's ("FCC") RDOF 1 Broadband initiative is the single largest distribution of Universal Service Fund("USF") dollars made available to communications service providers. RDOF provides $20.4 billion in funding over ten years to support the construction of broadband networks in rural communities across the country. The program is divided into two phases: Phase 1: RDOF provides up to $16.4 billion, and Phase 2: RDOF provides at least $4.4 billion. Eligible areas include those without current(or already funded) access to adequate broadband service, defined by the FCC as 25 Mbps2 downstream and 3 Mbps upstream (25/3). Funding for RDOF comes from traditional high-cost USFs and is not dependent on legislative appropriations. The RDOF Auction 904 process is as follows: the FCC awards RDOF funds through a descending clock, reverse auction process. Interested service providers can participate in the auction and bid for a percentage of RDOF funds to serve one or more eligible areas. Providers must determine whether they have a sustainable business case with(or without) RDOF funds before bidding. If the business case is solid, providers may submit a"short form" application to the FCC and apply for approval to bid in the RDOF Phase 1 auction. Upon initial notification of the award, the winning bidders must submit a detailed and comprehensive"long form" application to the FCC. Suppose the FCC accepts the winning bidders' long form and the winning bidders, in turn, accept RDOF support. In that case, the winning bidders effectively promise to deliver broadband and voice services to all funded locations identified in their applications. As an RDOF award recipient, a winning bidder must also secure ETC status. THE REQUEST The Company stated that it is a Delaware Limited Liability Company with headquarters located at 210 E. Earl Drive, Phoenix, Arizona 85012. The Company is a wholly owned subsidiary of Cable One, Inc. ("Cable One"), a publicly traded Delaware Corporation. Cable One and its owned subsidiaries provide cable/video, internet access,broadband, and voice 1 https://www.fcc.gov/auction/904 Auction 904: Rural Digital Opportunity Fund I Federal Communications Commission z Megabits per seconds STAFF COMMENTS 2 APRIL 2, 2025 services in Idaho. Id. 1-2. The Company may do business in Idaho as a foreign limited liability Company3. The Company represented that its parent company, Cable One, was part of a consortium that was a winning bidder in the RDOF Auction 904 to provide voice and broadband services in select census blocks in numerous states, including Idaho. On April 19, 2021, the Commission, in Case No. CAB-T-21-01, "designated the Company as an ETC in 57 census block groups in which the Company was deemed the winning bidder in Auction 904 as well as additional geographic areas in which the Company requested to be designated as an ETC for the provision of federal Lifeline services." Id. at 2. The Company stated, subsequently, on July 26, 2021, that the FCC sent a letter to the Company(and other winning RDOF bidders) requesting a review of its service areas in numerous states, including in Idaho, and assess whether these areas were already being served by "`one or more service providers . . . ."' Id. at 2-3. The request for the review was based on "significant concerns about the best use of[the public's] limited universal service funds". Id. at 3. The Company asserted that on August 24, 2021, as a result of the review, it informed the FCC that it would no longer seek RDOF support in several additional census blocks, including some of those for which it received ETC designation in Idaho. This was acknowledged by the FCC in January and May 2022. Id. at 3. As a result of this change, on August 1, 2022, the Company submitted a request to the Commission to partially relinquish its ETC designation status for certain RDOF areas and to partially relinquish the additional Lifeline ETC designation support it received for non-RDOF areas. On February 24, 2023, the Commission granted this Request by issuing Commission Order No.35688 in Case No. CAB-T-22-01. Id. at 3. The Company represented that on October 17, 2024, it notified the FCC that it was withdrawing from the RDOF program for the state of Idaho. This was due to Cable One's, its parent company, significant investments to deploy broadband in new geographic areas and to increase broadband speeds in existing areas. The planned RDOF deployment in Idaho was no longer viable due to unforeseeable costs that increased since the conclusion of the RDOF auction. The FCC acknowledged this withdrawal and issued a public notice on November 27, 2024. Id. at 4. 3.Registration Certificate No.4121333,as verified by Staff on the website of the Idaho Secretary of State. STAFF COMMENTS 3 APRIL 2, 2025 The Company confirmed that it meets all the established standards for full ETC relinquishment under the Federal Telecommunications Act of 1996 (47 U.S.C. § 214(e)(4) and Idaho Code § 62-610D(4)). Specifically, the Company asserted the following: (i) As shown in Exhibit 1, there are numerous other ETC designated providers operating in the geographic areas in which the Company is seeking relinquishment, including wireless ETCs and incumbent local exchange carriers; (ii) since the Company does not have customers in Idaho, customers will not be impacted because of the Company's request for total relinquishment of its ETC designation in Idaho, and thus, a customer notice is not required regarding the full relinquishment; (iii) there will not be a discontinuance of service because the Company does not currently serve any customers in Idaho. Id. at 4-5. STAFF ANALYSIS Staff reviewed the Company's Request and examined the Company's fulfillment of requirements under the Federal Telecommunications Act of 1996, the FCC's regulations, and the RDOF requirements. Staff concluded that the Company has fulfilled the statutory requirements for the entire relinquishment of its ETC designation status in Idaho. The Commission"shall permit an eligible telecommunications carrier to relinquish its designation as such a carrier in any area served by more than one eligible telecommunications carrier." Idaho Code § 62-610D (4). The Commission is also required to ensure that customers of the withdrawing company will continue to be served by another ETC provider. The Company states it satisfies the statutory requirements because numerous other ETC providers are currently serving customers in the designated area, and it currently does not have customers that require Commission assurance of continued service. The Company requested that the Commission issue an order acknowledging that it has properly relinquished and is fully relieved of its designation status as an ETC in Idaho. STAFF COMMENTS 4 APRIL 2, 2025 STAFF RECOMMENDATION Staff examined the Company's Request. Staff recommends that the Commission issue an order finding that the Company satisfies the statutory requirements for a full relinquishment of its ETC designation status in Idaho. Respectfully submitted this 2nd day of April 2025. Adam Triplett Deputy Attorney General Technical Staff. Johan Kalala-Kasanda 1:\Utility\UM1SC\COMMENTS\CAB-T-24-01 Comments.docx STAFF COMMENTS 5 APRIL 2, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS DAY OF APRIL 2025, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. CAB-T-24-01, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: RONALD WILLIAMS ANGELA F COLLINS HAWLEY TROXELL CAHILL GORDON& REINDEL 877 W MAIN ST, l OTH FLOOR 1990 K ST NW STE 950 BOISE ID 83702 WASHINGTON DC 20006 E-MAIL: rwilliams(cr�hawleytroxell.com E-MAIL: acollins(cr�,cahill.com I PATRICIA JORDA , S CRETARY CERTIFICATE OF SERVICE