20250822Final_Order_No_36738.pdf

Office of the Secretary
Service Date
August 22,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TRUCONNECT ) CASE NO. TCC-T-24-01
COMMUNICATIONS, INC.'S APPLICATION )
FOR DESIGNATION AS AN ELIGIBLE ) ORDER NO. 36738
TELECOMMUNICATIONS CARRIER IN )
THE STATE OF IDAHO )
On March 4,2024,TruConnect Communications,Inc. ("TCC") applied to the Idaho Public
Utilities Commission("Commission") for designation as an Eligible Telecommunications Carrier
("ETC") in the State of Idaho. The Company requested designation as an ETC for the sole purpose
of providing Lifeline services. The Company asked that it be allowed to participate and receive
reimbursement from the Idaho Telephone Service Assistance Program ("ITSAP") accordingly.
On June 20, 2024, the Commission issued a Notice of Application and set deadlines for
public comments and the Company's reply. Order No. 36227. The Company submitted materials
supplementing its Application on July 9, 2024.
On July 11, 2024, Staff submitted comments, arguing that the Company's request for ETC
status should be denied. Among other things, Staff asserted that the Company failed to meet the
necessary requirements for an ETC to remain functional in an emergency and promote the public
interest.
On July 18, 2024, the Company submitted reply comments, arguing that the items of non-
compliance referred to by Staff were not actually requirements for obtaining ETC status.
Therefore, the Company contended it should not be denied ETC status for not submitting these
non-mandatory items. After reviewing the reply comments, Staff recommended that the
Commission issue a Notice of Supplemental Comment and Reply Deadlines to allow the parties
to submit additional documentation and analysis for consideration by the Commission. The
Commission adopted Staff s recommendation and ordered a supplemental comment and reply
period accordingly. Order No. 36284.
On August 15, 2024, the Company moved to stay this case for six months. The Company
explained that this would give its corporate parent time to decide on the future of TCC and Sage
Telecom Communications, LLC dba TruConnect ("Sage")—an affiliate telephone company
operating in Idaho. Staff did not oppose this request. On August 16,2024, Staff filed supplemental
ORDER NO. 36738 1

comments. In these comments, Staff explained that they believed TCC's corporate parent did not
intend for both TCC and Sage to provide the same services in the same area while operating under
separate ETC designations. Instead,the companies were to have different owners or be sufficiently
distinct to justify separate designations. Because the Company had yet to decide which path to
take, Staff recommended that the Commission stay the case for up to six months so the Company
could finalize its plan. The Commission directed Staff to recommend the appropriate course of
action once the six-month stay elapsed or TCC and Sage's futures became clear.
On October 4, 2024,the Commission stayed this case for six months to give the Company
time to determine its path forward.
On June 11,2025,the Commission issued a Notice of Second Supplemental Comment and
Reply Deadlines, establishing deadlines for Staff and the Company to address the impact of a
certification Sage would file regarding its plans in relation to TCC's application for ETC
designation. Order No. 36634.
On May 30, 2025, prior to the issuance of Order No. 36634, a representative of TCC's
corporate parent filed a document certifying that it would either within one year of TCC obtaining
ETC status in Idaho,it will either 1) enter an agreement to sell Sage; or 2) Sage will begin offering
at least one different service plan than TCC.Alternatively,if neither occurs,it will voluntarily give
up Sage's ETC status without prejudice. Subsequently, Staff filed supplemental comments to
which the Company replied on June 25, 2025 and June 26, 2025, respectively.
With this Order, we approve the Company's Application and grant it limited designation
as an ETC to provide Lifeline services.
BACKGROUND
Under the federal Telecommunications Act of 1996 ("Federal Act"), a carrier designated
as an ETC is eligible to receive federal support from the federal Universal Service Fund("USF").1
47 U.S.C. § 214(e). This Commission has the authority, under the Federal Act, to grant ETC
1 The Federal Communications Commission established the federal USF with the intent to make adequate, efficient
communications available nationwide, at reasonable charges. In the Matter of Lifeline and Link Up Reform and
Modernization, Lifeline and Link Up, Federal-State Joint Board on Universal Service, Advancing Broadband
Availability Through Digital Literacy Training("Lifeline and Link Up Reform Order")27 F.C.C.R.6656,at 6660-62
(Feb. 6, 2012); 47 U.S.C. § 254(b). Lifeline is a program supported by the USF that provides monthly discounts to
eligible low-income subscribers to maintain access to communications networks.Lifeline and Link Up Reform Order,
27 F.C.C.R. 6656 at 6662-63. Idaho has an analogous state USF program, established in Idaho Code§§ 62-610 and
62-610A-610F, and a Lifeline program known as the Idaho Telecommunications Service Assistance Program
("ITSAP").Idaho Code§ 56-901.
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designations within Idaho. 47 U.S.C. § 214(e)(2). Authority for the Commission to grant ETC
designation is also provided in Idaho law—the Idaho Telecommunications Act of 1988 ("Idaho
Act")— and expounded upon in Commission orders. See Idaho Code §§ 62-610D(1), 62-615(1);
Order No. 29841. Under this authority, this Commission has granted ETC designations to
numerous carriers in Idaho, including wireless carriers. See, e.g., Order Nos. 32586, 32645, and
34163.
To qualify as an ETC, an applicant must satisfy several requirements established in federal
and state law. See 47 U.S.C. § 214(e); Order No. 29841. The Federal Act requires the applicant to
be a"common carrier,"offering services supported under Section 254(c)of the Federal Act"using
its own facilities or a combination of its own facilities and resale of another carrier's services,"
unless otherwise granted Federal Communications Commission ("FCC") forbearance. 47 U.S.C.
§§ 153(11), 214(e)(1)(A), 160(a)(3) (FCC has regulatory flexibility to forbear the application
where consistent with the public interest). The Federal Act also requires the applicant "advertise
the availability of such services and the charges therefor using media of general distribution." 47
U.S.C. § 214(e)(1)(B).
Under the Federal Act, state commissions shall determine whether ETC designation is
"consistent with the public interest, convenience, and necessity." 47 U.S.C. § 214(e)(2). In
evaluating this public interest element, the Commission has generally considered two factors. See
Order No. 33002 at 2-3; Order No. 33226 at 3. First,the Commission evaluates whether the carrier
contributes to state assistance programs such as the Idaho Telephone Service Assistance Program
("ITSAP") and the Idaho Telecommunications Relay Services ("TRS") program consistent with
Idaho Code § 61-1301.Id. Second,the Commission considers if the designation is sought for only
part of a rural telephone company's study area, thus leaving some (perhaps less profitable)
customers without service. Id. Such practice, known as "cream skimming," has been determined
by the Commission to be contrary to the public interest.Id.
Federal regulations include the following additional requirements, which the Commission
has adopted by reference, in evaluating applications for ETC designation: (1) compliance with
service requirements applicable to support received; (2) submission of a plan for proposed
improvements or upgrades to the network (where applicable); (3) demonstrated ability to remain
functional in emergencies without an external power source; (4) demonstrated willingness to
satisfy consumer protection and service quality standards; (5) financial and technical capability to
ORDER NO. 36738 3

provide Lifeline service; and(6)notice to affected Tribes where designation is sought for any part
of Tribal lands. See 47 C.F.R. § 54.202; Order No. 29841 at 5, 16.
For applicants seeking Lifeline-only ETCs,the FCC has waived the requirement to submit
a network improvement and upgrade plan, noting that such ETCs do not receive funds to improve
or extend their networks. Lifeline and Link Up Reform Order, 27 F.C.C.R. 6656, ¶ 386. The
Commission—which requires a two-year network improvement plan and progress report (Order
No. 29841 at 18) where applicable—has also waived the requirement where a Lifeline-only ETC
is requested. Order No. 35126 at 3.
THE APPLICATION
TCC seeks statewide ETC designation to offer Lifeline service anywhere its network
partners, T-Mobile and Verizon, provide wireless coverage, including on federally recognized
tribal lands. While its service area overlaps with rural carriers in Idaho, the Company argues that
it should still receive ETC status because it only intends to use federal Universal Service Fund
support to provide Lifeline service to eligible low-income consumers. TCC asserts 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.
COMMISSION FINDINGS AND DECISION
The Commission has authority to grant ETC designation to a telecommunications carrier
under federal and state law. 47 U.S.C. § 214(e); Idaho Code §§ 62-610D and 62-615(1). The
Commission has considered the record, including the Company's Application and Staff
Comments. We now make these findings.
A. Common Carrier, Own Facilities, and Advertising
We first address requirements listed in § 214(e)(1) of the Federal Act. That provision
requires an applicant to be a "common carrier" offering services "using its own facilities or a
combination of its own facilities and resale of another carrier's services,"unless otherwise granted
FCC forbearance. 47 U.S.C. §§ 153(11), 214(e)(1)(A) and 160(a)(3). The FCC has granted
forbearance from the "own-facilities" requirement to Lifeline-only ETCs provided they comply
with certain 911 requirements and file a compliance plan. See Lifeline and Link Up Reform Order,
27 F.C.C.R. 6656,¶386. The Company represented that, as a Lifeline-only ETC, it complied with
the Federal Act with the filing of its December 2012 FCC-approved Compliance Plan. The
Company stated its intention to follow 911 requirements governing Lifeline subscribers in
ORDER NO. 36738 4

accordance with its FCC-approved Compliance Plan. We find the Company properly complied
with the FCC forbearance regarding the "own facilities"requirement. On the record before us,we
find the Company is also a"common carrier."See 47 U.S.C. § 153(11).
An applicant seeking ETC designation must also"advertise the availability of such services
and the charges therefor using media of general distribution."47 U.S.C. § 214(e)(1)(B). Based on
the record and the Company's assurances, we find this requirement to also be satisfied.
B. Public Interest and Related ETC Designation Requirements
Under the Federal Act, state commissions shall determine whether granting the requested
ETC designation is "consistent with the public interest, convenience, and necessity." 47 U.S.C. §
214(e)(2). Whether granting ETC status to TCC aligned with the public interest was a matter of
significant concern for Staff. Although TCC committed to offering Lifeline services to a wide
array of low-income and unserved and underserved Idaho residents, Staff was not concerned with
clientele TCC intended to target. Rather, Staff believed that granting ETC status to affiliated
entities operating within the same service area, offering indistinguishable telecommunications
services at identical prices, was not consistent with the public interest. However, the certification
submitted by a representative of Sage addresses and alleviates this concern. According to that
certification, TCC's parent does not intend to operate identical affiliated ETCs within the same
Idaho service territory over the long term. Instead, over the next year, Sage's existing Idaho
customers will be transferred to TCC, after which Sage will either be sold, introduce at lease one
new service plan distinct from those offered by TCC, or relinquish its ETC designation. We find
that TCC's commitment to serving low-income Idahoans—without an identical affiliated ETC
operating in the same territory—advances the public interest. To ensure that TCC's corporate
parent fulfills the commitments outlined in the certification filed in this proceeding, we find it
reasonable to require the submission of quarterly reports detailing the status of the customer
transfer and the plans for Sage. These reports shall be filed as compliance filings in this docket.
We also consider whether TCC would contribute to the appropriate Idaho funds. Order No.
33002 at 2-3; Order No 33226 at 3. Staff confirmed that the Company would participate in the
appropriate Idaho programs and comply with the Commission's annual reporting requirements.
We find that the Company's commitment to participating in the appropriate Idaho programs
advances the public interest. Next, we consider whether the Company is engaged in "cream
skimming," which we have found to be contrary to the public interest. Order No. 33002 at 2-3;
ORDER NO. 36738 5

Order No. 33226 at 3. Because the Company requested limited ETC designation for the entire
state, no cream-skimming analysis is required. We therefore find that granting TCC limited
designation as an ETC in its requested service area—the State of Idaho—satisfies the public
interest requirements.
C. Remaining Requirements
We next address the six remaining requirements from federal regulations and Order No.
29841. See 47 C.F.R. § 54.202.
(1) Service Requirements for Support Received. We find that TCC has sufficiently
committed to meeting these requirements.
(2) Plan for Proposed Improvements or Upgrades to the Network. The FCC and this
Commission have waived the requirement for Lifeline-only ETCs who seek only low-income USF
support to submit a network improvement plan. See Order No. 32501 at 3-4; 47 C.F.R. §
54.202(a)(1)(ii). We find that that TCC is not required to submit a network improvement plan.
(3) Ability to Remain Functional in Emergencies. We find that TCC has demonstrated
sufficient compliance with this requirement.
(4) Willingness to Satisfy Consumer Protection and Service Quality Standards. We are
satisfied with TCC's assurances as to this requirement.
(5) Financial and Technical Capability. Based on TCC's assurances and description of its
financial and technical qualifications, as well as how it interacts and partners with its parent
company, we also find this requirement to be satisfied.
(6) Notice to Affected Tribes. We find that TCC has sufficiently notified and engaged
Tribal authorities. 47 C.F.R. § 54.202(c); Order No. 29841 at 16 (superseded in part by Order No.
35126 at 6).
Based on the above findings, we conclude that TCC has satisfied the federal and state
requirements for limited designation as an ETC carrier. We therefore designate TCC an ETC in
the State of Idaho for the purpose of providing Lifeline service to qualifying Idaho consumers and
to participate in and receive reimbursement from the ITSAP.
ORDER NO. 36738 6

ORDER
IT IS HEREBY ORDERED that TCC's Application for limited designation as an ETC in
the State of Idaho is approved.
IT IS FURTHER ORDERED that Sage shall submit as a compliance filing in this case
quarterly reports in this docket for the next 12 months following the service date of this Order
detailing the status of the customer transfer and the plans for Sage.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code §§ 61-626 and 62-619.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 22"d day of
August 2025.
G
EDWARD LODGE, PR V. IDENT
R. HAMMOND, JR., COMMISSIONER
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DAYN HA DIE, COMMISSIONER
ATTEST:
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Commission Secretary
I:\Legal\TELECOWTCCT2401\orders\TCCT2401_final_at.docx
ORDER NO. 36738 7