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HomeMy WebLinkAbout20260616Reply Comments.pdf RECEIVED June 16, 2026 C. Tom Arkoosh, ISB No. 2253 IDAHO PUBLIC Nicholas J. Erekson, ISB No. 9325 UTILITIES COMMISSION ARKOOSH LAW OFFICES 913 W. River Street, Suite 450 P.O. Box 2900 Boise, ID 83701 Telephone: (208) 343-5105 Facsimile: (208) 343-5456 Email: tom.arkooshkarkoosh.com nick.erekson(a),arkoo sh.com Admin copy: erin.cecil&arkoosh.com Attorneys for Ziply Fiber BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ZIPLY ) WIRELESS, LLC, D/B/A ZIPLY ) CASE NO. ZWL-T-24-02 FIBER'S APPLICATION FOR ) DESIGNATION AS AN ELIGIBLE ) REPLY COMMENTS OF ZIPLY TELECOMMUNICATIONS CARRIER ) WIRELESS, LLC IN THE STATE OF IDAHO TO ) RECEIVE FEDERAL LIFELINE ) SUPPORT ) COMES NOW Ziply Wireless, LLC, d/b/a Ziply Fiber, by and through its counsel of record, C. Tom Arkoosh and Nicholas J. Erekson of Arkoosh Law Offices, and hereby submits the following Reply Comments. I. BACKGROUND A. The Company Ziply Wireless, LLC d/b/a Ziply Fiber("ZW,""Company," or"Applicant") is a Delaware Limited Liability Company headquartered at 135 Lake Street South, Suite 155, Kirkland, Washington 98033. The Company is affiliated with Ziply Fiber Pacific, LLC ("ZFP"), d/b/a Ziply Fiber, a competitive local exchange carrier in Idaho with a parallel request for statewide Lifeline-only Eligible Telecommunications Carrier ("ETC") designation. The Company is also affiliated with Ziply Fiber Northwest, LLC, and Ziply Fiber of Idaho, LLC, two Incumbent Local Exchange Carriers ("ILECs") that are long-time holders of Idaho ETC status and provide voice REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 1 and data telecommunications services to residents and businesses within their service areas in the State of Idaho. The Company is authorized to do business in Idaho and provide communication services to Idaho customers via fixed wireless facilities. The Company holds a Certificate of Public Convenience and Necessity("CPCN")and is authorized to operate as a competitive local exchange carrier ("CLEC") in Idaho to provide wholesale transport, retail broadband, Voice over Internet Protocol ("VolP") service, and local exchange services. The Company is in the process of expanding its existing fixed wireless network, over which it offers a full suite of communications services to customers in Idaho. The network is currently operating in Boise, Lewiston, Meridian, Payette, Nampa, and Twin Falls. The Company anticipates further construction in Idaho beyond these existing facilities. B. Universal Service Fund and Lifeline Program The Universal Service Fund("USF")is a system of telecommunications subsidies and fees managed by the Federal Communications Commission ("FCC"). It was established in 1997 in compliance with the Telecommunications Act of 1996. The USF aims to promote universal access to telecommunications services in the United States. The fund supports initiatives such as connecting schools and libraries to high-speed internet,helping rural hospitals adopt telemedicine, ensuring low-income households have basic communication services, and investing in broadband in underserved communities.' The USF Lifeline program helps to make communication services more affordable for low-income consumers. Lifeline provides qualifying subscribers with a discount on monthly telephone services, broadband Internet service, or bundled voice-broadband packages purchased from participating wireline or wireless providers. Lifeline provides a monthly 'See FCC,Universal Service,available at:https://www.fcc.gov/general/universal-service(last visited June 15,2026). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 2 discount of up to$9.25 for eligible low-income subscribers and up to $34.25 per month for eligible subscribers on Tribal lands.2 C. Procedural Background On October 3, 2024, the Company applied to the Commission for designation as a Lifeline-only ETC in the State of Idaho ("Application"). The Company is seeking an ETC designation to receive financial support from the Federal USF Lifeline program to provide discounted services to qualifying subscribers throughout the State of Idaho,including Tribal lands. The Company requests that its designation as an ETC include the authority to participate in and receive reimbursement from the Idaho Telecommunications Service Assistance Program ("ITSAP").3 On April 11, 2025, Staff submitted comments ("2025 Staff Comments") opposing the Application. In those comments, Staff asserted its belief that the Company had failed to demonstrate it could satisfy the obligations of a Lifeline-only ETC. Staff specifically identified the Company's purported inability to meet the own facilities, advertising,tribal notice,and emergency functionality requirements. Staff also asserted that the Company had not met its burden of proof to show that granting it ETC status would serve the public interest. 2025 Staff Comments at 3-9. On April 23, 2025, the Company submitted reply comments refuting Staff s flawed analysis and providing additional information in support of its Application.4 In addition, on November 10, 2025, the Company submitted the Declaration of Jessica Epley ("Declaration"), which includes five confidential attachments to supplement the record and respond to Staffs 2 See FCC, Lifeline Support for Affordable Communications, available at: https://www.fcc.gov/lifeline-consumers (last visited June 15,2026). 3 See Idaho Code § 56-901. 4 Additional filings and procedural actions in the case can be found at: https://puc.idaho.gov/Case/Details/7441 (last visited June 15,2026). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 3 objections. The Declaration includes attestations from a senior Company officer regarding the issues raised by Staff, including a statement that the "Company will offer and provide Lifeline services in the State of Idaho using facilities owned by Company and/or facilities owned by Affiliates or a combination of those facilities and resale of Affiliates' services." Declaration at 1. The confidential attachments provide extensive information on the locations and ownership of tangible assets,including real property and network facilities,owned or controlled by the Company or its affiliates,which will be used to provide Lifeline services in Idaho. The exhibits also include a current copy of the Company's Idaho Emergency Preparedness, Backup Power, Disaster Recovery, and Business Continuity Plan. Declaration at 1-2 and Confidential Exhibits. On March 19, 2026, the Company filed a Supplemental Notice Regarding Tribal Notification("Supplemental Notice"). In its Supplemental Notice,the Company requested that the Commission: (1) accept the Supplemental Notice; (2) accept the attached Tribal notice materials as part of the record supporting the application; and (3) consider the ETC Application once the Commission was satisfied that Tribal authorities had a reasonable opportunity to review and respond to the notice provided. See Supplemental Notice at 2. On May 20, 2026, the Commission issued a Second Notice of Modified Procedure and established comment and reply comment deadlines for the proceeding. On June 10, 2026, Staff again filed comments recommending denial of the Company's requested statewide Lifeline-only ETC designation ("Staff Comments"). In its Comments, Staff concedes that the Applicant has provided supplemental information sufficient to meet "some of the requirements, such as tribal notices." Staff Comments at 2. However, Staff also claims,without identifying a valid basis for its assertion, that the Company has not demonstrated "the ability to continuously provide universal REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 4 services throughout the proposed service area." Staff Comments at 2. Staff also asserts that it believes that the Company has not satisfied the public interest standard. Staff Comments at 4. The Company now submits these Reply Comments in response to Staff s most recent arguments and urges the Commission to reject Staffs recommendation. Instead, the Company again respectfully requests that the Commission promptly designate it as a statewide ETC for Lifeline-only purposes. Alternatively,to assuage Staffs concerns regarding the Company's ILEC affiliates, the Company requests that the Commission grant the Company's statewide Lifeline-only ETC designation on the condition that Lifeline service within the service territories served by the Applicant's ILEC affiliates would be provided by the ILEC affiliates, and not by the Applicant. As a second alternative, to assuage Staffs concerns regarding the geographic scope of the ETC designation, the Company requests that the Commission grant it a statewide ETC designation to operate within the areas of the state covered by its current and future network deployments, consistent with the approach taken in the Commission's recent decision to grant Assurance Wireless a Lifeline-only ETC designation. See Order No. 36904 at 1-2. II. DISCUSSION The Company and its affiliates are making a generational investment to upgrade their facilities,build out network infrastructure,and extend the reach of their advanced communications networks within the state of Idaho. These efforts will bring more competitive service offerings, including high-speed broadband, to more customers throughout the state. Throughout this multi-year proceeding, the Company has remained focused on ensuring that the benefits of these competitive service offerings are made available, on competitive terms, to the most vulnerable communities in the State. These goals are consistent with the pro-competitive directives issued by REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 5 the FCC and embodied in the Idaho Code.S However, without a Lifeline ETC designation, the Company cannot hope to offer these services on an equal footing with its competitors that have received an ETC designation in the state and can thereby offer discounted services through the Lifeline and ITSAP programs. As part of its ongoing commitment to promoting competition in the state and securing its ETC designation,the Company has made every effort to address the myriad and evolving concerns raised by Staff. For over two years,the Company has responded to Staff s objections and concerns by providing detailed information on its operations in the State of Idaho. These include the Declaration and its associated exhibits, the Supplemental Notice, and extensive responses to multiple Staff production requests. These submissions, along with the Application and other supplemental filings in the docket, amply demonstrate that the Company complies with all applicable federal and state requirements and is qualified to hold a statewide Lifeline-only ETC designation. Yet, at every turn, Staff has raised new, specious arguments to criticize the Application and the supporting documentation in an effort to prevent the Company from obtaining 5 See Idaho Code § 62-610A (directing the Commission to establish a "competitively and technologically neutral funding mechanism" ensuring that "[a]ll consumers in this state, without regard to their location, should have comparable accessibility to basic telecommunication services at just and reasonable rates"); Idaho Code § 62-602(4) (the Legislature"encourages the development of open competition in the telecommunications industry. . .consistent with the federal telecommunications act of 1996"); Idaho Code § 62-602(1) (finding that universally available telecommunications services are "essential to the health,welfare and economic well-being of the citizens"of Idaho and directing a"balanced program of regulation and competition");see also In re Lifeline and Link Up Reform and Modernization,Memorandum Opinion and Order,WC Docket Nos. 09-197, 11-42, 28 FCC Rcd 4859 at paras. 10- 11 (2013) ("Lifeline Forbearance Order") (competitive Lifeline entry"will spur innovation among carriers in their Lifeline offerings, expanding the choice of Lifeline products for eligible consumers");Lifeline and Link Up Reform and Modernization, Third Report and Order, Further Report and Order, and Order on Reconsideration, WC Docket Nos. 11-42, 09-197, 10-90, 31 FCC Rcd 3962 at paras. 5, 8 (2016) ("2016 Lifeline Order") (adopting reforms to increase consumer choice and encourage competition among Lifeline providers and "encourag[ing] entry of new Lifeline providers"); Federal-State Joint Board on Universal Service, Report and Order, CC Docket No. 96-45, 12 FCC Rcd 8776 at para. 47 (1997) ("Universal Service Order") (universal service rules must "neither unfairly advantage nor disadvantage one provider over another"). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 6 an ETC designation. In its most recent Comments, Staff shifts its focus to, among other things, unrelated customer service complaints about service offerings provided by the Company's ILEC affiliates and seeks to elevate a novel analysis of the "unique" service offerings provided by the Company vis-a-vis its affiliates to the level of a statutory requirement. As described below, if the Commission accepts Staffs unsupported recommendation to deny ETC designation, such an order would be unlawful and arbitrary and capricious. Such a decision would also run counter to federal law and the Commission's own precedent. Moreover, it would deny an additional competitive Lifeline option to the most vulnerable residents of Idaho, in direct contravention of federal and state policy. A. Legal Standard Section 214(e)(1) of the Communications Act, the FCC's rules, Idaho Code § 62- 6101)(3)(a), and the Commission' s Order No. 35126 set forth the requirements for ETC designation in Idaho.6 The Commission has authority to grant ETC designation to a telecommunications carrier under federal and state law. 47 U.S.C. § 214(e); and Idaho Code §§ 62-61OD, 62-615(1). In its Comments, Staff emphasizes that "the ETC applicant must demonstrate that it is capable of providing and will continuously provide throughout its proposed service area the universal services set forth in C.F.R. § 54.101 (a),either by using its own facilities or a combination of its own facilities and resale of another carrier' s services."7 Under the Communications Act, state commissions are also empowered to determine whether granting the requested ETC designation is "consistent with the public interest, convenience, and necessity." 47 U.S.C. § 214(e)(2). This authority is constrained, however, by Section 254(f) of the Communications 147 U.S.C. §214(e)(1);47 C.F.R. §§ 54.201,54.202;Idaho Code §62-6101)(3)(a);Order No.35126,Appendix. 7 See Order No. 35126,Appendix citing 47 U.S.C. 214(e)(1)(A). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 7 Act, which states that "[a] State may adopt regulations not inconsistent with the Commission's rules to preserve and advance universal service."47 U.S.C. § 254(f). B. Staff does not identify any specific "universal services" that the Company is unable to provide. Staff correctly notes that an ETC applicant must demonstrate that it can provide, and will continuously provide, nine "universal services" throughout its service area using either its own facilities or a combination of its own facilities and resale of another carrier's services. See 47 U.S.C. § 214 (e)(1)(a), 47 CFR 54.101(a), and Order No. 35126. The Company has repeatedly demonstrated its ability to provide all nine universal services and has provided extensive supplemental information in support of its assertions. In its Comments, Staff concedes that the Company has addressed "some" of its earlier concerns but states that it "does not believe that the Company will be able to provide all nine services across the entire state of Idaho."Staff Comments at 2. Staff does not, however, identify any specific universal services that the Company would be unable to provide. It appears, therefore, that Staff s current objections are focused on the ability of the Company to provide these services throughout its requested ETC area rather than its ability to provide the nine services themselves. As set forth below, these concerns are unfounded. C. Staff's assertion that the Company's ETC boundary should not exceed its CPCN boundaries is not consistent with applicable rules or Commission precedent. Staff asserts its belief that the Company's ETC service area should not exceed the size of its CPCN service area. In support of its belief, Staff cites only to the general requirement in 47 U.S.C. § 214(e) that an ETC must "offer the services that are supported by Federal universal service support mechanisms" throughout its designated service area. However, the service area definition referenced by Staff is specific to the ETC designation and does not mention the CPCN REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 8 service area.8 The CPCN, by contrast, is a state-law authorization to provide telecommunications service and was not established for the purpose of determining universal service obligations. Nothing in federal law, statute, or this Commission's prior orders requires that the ETC service area be coextensive with a carrier's CPCN. Section 214(e)(2) gives this Commission the authority to designate the ETC service area as part of the designation process, and the Commission has exercised that authority in prior cases by granting statewide Lifeline-only ETC designations. See e.g., Order No.35126 at 5;Order No.36050 at 5-6.Moreover,the FCC has granted categorical forbearance from the rural service area conformance requirement of Section 214(e)(5) for all Lifeline-only ETCs, further undermining the premise that any geographic limitation should constrain a Lifeline-only designation. See Lifeline Forbearance Order at para. 1. As previously stated, the Commission's authority is limited to actions that are not inconsistent with the Commission's rules. See 47 U.S.C. § 254(fl. The Company addressed in its Application and has provided extensive information regarding its Idaho facilities in response to Staff inquiries. See Declaration and Confidential Exhibits. The Company is currently operating in Boise,Lewiston,Meridian,Payette,Nampa, and Twin Falls and has stated that it intends to expand its advanced fixed wireless network beyond the current CPCN boundaries to bring high-quality, competitive telecommunications services to more of Idaho's population. Granting the Company a statewide Lifeline-only ETC designation will allow it to expeditiously and efficiently offer competitive Lifeline services in these expanded a 47 U.S.0 § 214(e)(5) defines "service area" as "a geographic area established by a State commission . . . for the purpose of determining universal service obligations and support mechanisms." The implementing rule mirrors this definition: "The term service area means a geographic area established by a state commission for the purpose of determining universal service obligations and support mechanisms.A service area defines the overall area for which the carrier shall receive support from federal universal service support mechanisms."47 C.F.R. § 54.207(a). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 9 service areas. Taken together, it is clear that the Commission should disregard Staff s unsupported recommendation to limit the Company's ETC designation to its CPCN areas. D. Staff s reliance on complaints against the Company's affiliates as a rationale for denying the Company's ETC designation is unsupported by law or precedent. In its Comments, Staff states that it is "concerned" about the Company's ability to demonstrate that it can continuously provide universal services within its service area. Staff Comments at 3. Staff bases its concern on the fact that the Company is sharing facilities with two affiliates that are the subject of open investigation proceedings(PUC Case Nos. CTC-T-24-01 and GNR-T-25-05) involving quality of service and customer responsiveness complaints. Staff Comments at 3-4. Both investigations are open dockets that do not directly involve the Applicant, and the Commission has not made any final determinations in either proceeding. Staff makes no effort to connect these open proceedings to the services the Applicant plans to offer, nor does it cite Commission precedent for denying an ETC designation based on the mere existence of service quality complaints involving an affiliate. Moreover, these service quality allegations against the Applicant's ILEC affiliates apply to last-mile copper facilities, none of which are directly implicated by the Application. The Company itself is a CLEC, certified to operate throughout the State,that is building a state-of-the- art fixed wireless network to bring competitive telecommunications services to Idaho. The shared elements of the affiliate facilities relate to transport, switching, electronics, and core network functions,none of which utilize copper facilities and none of which are the subject of any pending complaints or Commission service quality investigations. The last-mile facilities the Applicant will use to provide Lifeline services to its customers are state-of-the-art fixed wireless facilities. The Applicant's affiliated ILECs will provide transport over fiber facilities back to the core network, where ILEC affiliate switching equipment will route traffic to the intended destination. REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 10 No last-mile ILEC copper facilities will be involved in any way in the provision of Applicant's Lifeline services. E. Staffs affiliate facilities and "unique or distinguishable services" analysis is not consistent with federal law or the Commission's recent actions. Staff discounts the public interest benefits of the Company's application on the basis that the Company shares facilities with ILEC affiliates that already hold ETC designations and with ZFP, and that it "does not appear to Staff that there are any unique or distinguishable services being offered to customers that would support an increase in consumer choice." Staff Comments at 4. Staff further asserts that the Company has not identified any"unique benefits"that set it apart from its competitors or its affiliates. Staff Comments at 4. First, Staffs uniqueness argument rests on a fundamental misinterpretation of the Company's proposal. The Company is a CLEC and will not be competing directly with its affiliated ILECs within the ILEC service territory. Rather, to a Lifeline-qualified resident in the CLEC territory, the Company's service offerings will be compared with the offerings of other ETC-designated carriers in the area, not with the offerings of the ILEC affiliates. The provided benefit will be high-quality services from the Company's network and additional competition in the Lifeline marketplace. Second, in evaluating Lifeline-only ETC applications, Staff has typically focused on two threshold considerations: (1) whether the Company will contribute to Idaho telecommunications funds; and (2) whether the Company's Application raises "cream-skimming" concerns.' The Commission then typically undertakes a more fulsome assessment of the public interest benefits of the Application. See Order No. 35126 at 4 and Order No. 36050 at 3. Here,rather than applying 9"Cream skimming"is not a factor here,and staff did not raise it as an issue,since the Company is seeking statewide ETC designation. See e.g., Order No.35126 at 5 and Order No. 36050 at 5. REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 11 the usual two-factor screen, Staff introduces novel criteria, including the provision of"unique or distinguishable services" provided vis-a-vis competitors or affiliates with overlapping service areas. Staff Comments at 4. Staff does not provide an explanation for this departure or citations to analogous Lifeline ETC cases where these factors have been applied. While not cited in its most recent Comments, Staff s"unique services" standard appears to derive from a set of public interest factors described in Virginia Cellular, which Staff references via the Commission's Clear Talk Order, Order No. 29841. 2025 Staff Comments at 5-6 (citing Order No. 29841 at 6, Virginia Cellular, LLC Petition for Designation as an ETC, 19 FCC Rcd 1563, 1574 (2004)).10 However, Virginia Cellular was a high-cost ETC designation proceeding, not a Lifeline-only ETC proceeding. In that proceeding, the FCC granted Virginia Cellular's petition for the purposes of receiving federal universal service high-cost support. The public interest factors it articulated, including the assessment of the applicant's unique service offerings and their advantages relative to existing providers,were developed to address concerns specific to high-cost support, not Lifeline-only service. The FCC has emphasized the inherent benefits of competition for Lifeline providers and rejected application of the factors used in high-cost support analyses to Lifeline-only ETC designations. As the FCC explained, the Joint Board identified those factors "in the context of a carrier seeking ETC designation to receive both low-income and high-cost support, in particular, under the identical support rule."Lifeline Forbearance Order at para. 5. The FCC found that those factors"do not apply in the context of conditionally designating ETCs in areas eligible for Lifeline io The Virginia Cellular factors originated in the 1996 Joint Board Recommended Decision, 12 FCC Rcd 87, 179-80, paras 172-74,and were subsequently applied by the FCC in Highland Cellular,Inc., 19 FCC Rcd 6422,6426,para 9 (2004) and Virginia Cellular. In the Lifeline Forbearance Order, the Commission had Virginia Cellular directly before it(citing the case at para. 4, n.14)when it found that these factors were developed"in the context of carrier seeking ETC designation to receive both low-income and high-cost support" and "do not apply in the context of conditionally designating ETCs in areas eligible for Lifeline support."Lifeline Forbearance Order at paras. 5 and 10. REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 12 support."Lifeline Forbearance Order at para 10. Rather than requiring Lifeline-only applicants to demonstrate unique or distinguishable services, the FCC found that competitive Lifeline entry inherently serves the public interest. Lifeline Forbearance Order at para. 10. The Commission further found that Lifeline-only ETCs "offer Lifeline-eligible consumers an additional choice of providers for discounted telecommunications services."Lifeline Forbearance Order at para. 11. This Commission's own recent decisions are consistent with this reading. In evaluating the statewide ETC applications of Torch Wireless and Terracom, Staff applied its typical two-factor screen and recommended approval. The Commission then made broader public interest findings grounded in competition, consumer choice, and service to underserved populations. Neither Staff nor the Commission applied the Virginia Cellular factors in their analysis. Order No. 35126 at 4-5; Order No. 36050 at 3-5. Thus, Staff s application of factors rooted in the Virginia Cellular case to the Company's Lifeline-only ETC application is inconsistent with the scope of the original decision, Staffs typical practice, the Commission's own recent precedent, and subsequent FCC forbearance from geographic limitations on Lifeline-only ETC designations. See Lifeline Forbearance Order at para. 1. If the Commission accepts Staffs analysis and recommendation, it would be setting a new standard of review for future Lifeline-only ETC applicants that could chill competition in the Lifeline marketplace and result in disparate treatment of new competitive entrants, contrary to well-established FCC policy and precedent." F. If Staff s recommendation is adopted, the decision would violate the FCC's competitive neutrality principles. The FCC has adopted competitive neutrality as a binding principle of universal service "As stated previously,the state may only adopt regulations that are"not inconsistent with the Commission's rules to preserve and advance universal service." 47 U.S.C. §254(fl. REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 13 policy under Section 254(b)(7). See Universal Service Order at para. 46.12 The FCC defined competitive neutrality to mean that "universal service support mechanisms and rules neither unfairly advantage nor disadvantage one provider over another." Universal Service Order at para. 47. The FCC further held that competitive neutrality is "embodied in... section 214(e)'s requirement that any carrier can become an eligible telecommunications carrier if it meets certain statutory criteria," Universal Service Order at para. 48. As previously noted,this Commission has granted statewide ETC designations to operators using a two-part test and subsequent public interest analysis. See Order No. 35126 at 4-5; Order No. 36050 at 3-5. The same approach should therefore be applied to the review of the Company's Application. A decision denying Lifeline-only ETC designation to a qualified applicant, particularly by applying novel and more rigorous standards to new entrants, would unfairly advantage existing providers and disadvantage the Company, in direct contravention of the FCC's competitive neutrality principle and would exceed the scope of the Commission's authority under Section 254(f) of the Communications Act.13 III. ALTERNATIVE APPROACHES For the reasons set forth above,the Company believes it has satisfied all of the requirements for granting the Application and issuing a statewide ETC designation. Nevertheless, to facilitate the rapid deployment of competitive Lifeline services to Idaho's low-income consumers, the Company offers two alternative approaches for the Commission's consideration. Both alternatives are presented without conceding any of the underlying facts or legal arguments, and the Company expressly reserves all of its legal rights, including its right to seek reconsideration of, or otherwise 12 The Section 254 framework under which the FCC adopted the competitive neutrality principle was recently upheld by the Supreme Court. See FCC v. Consumers'Research,606 U.S. 656 at 659, 684-91 (2025)(holding that Section 254 provides"determinate standards"for the FCC's administration of universal service). 13 47 U.S.C. §254(f). REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 14 challenge, any denial of the full statewide Lifeline-only ETC designation requested in the Application. First,the Commission could grant the Company's statewide Lifeline-only ETC designation on the condition that Lifeline service within the service territories served by the Applicant's ILEC affiliates would be provided by the ILEC affiliates, and not by the Applicant. This is consistent with the Applicant's intended approach to the provision of Lifeline services. Such a conditional designation would extend Lifeline service to Idaho consumers in areas where no affiliated ILEC entity currently holds ETC status while ameliorating Staff s concerns regarding the "unique" competitive services offered by each affiliate.14 Second, the Commission could grant the Company's statewide Lifeline-only ETC for the areas of the state covered by its current and future network deployments. The Commission has recent precedent for this approach. In Order No. 36904, the Commission granted Assurance Wireless USA, L.P., a statewide Lifeline-only ETC designation, authorizing the Company to "expand its current ETC service area to a statewide designation for the purpose of providing Lifeline service" while recognizing that service would be available "anywhere the Company has wireless coverage in Idaho." Order No. 36904 at 1-2. The Commission found that this approach would be consistent with the public interest. This alternate approach would be consistent with the Commission's treatment of Assurance Wireless, would help bring additional competitive Lifeline services to Idaho consumers, and would preserve the Company's right to offer Lifeline services to additional customers as its network coverage expands. IV. ZIPLY FIBER'S PRAYER FOR RELIEF The Company has demonstrated throughout this multi-year proceeding that it is qualified 14 It should be noted that the Applicant's service area and the service territories of its affiliated ILECs do not overlap. REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 15 for a Lifeline-only ETC designation in the State of Idaho and that granting this designation would further the public interest. Granting the Company's request would help bring additional competitive services to Idaho's most vulnerable communities and would be consistent with the stated policies of the FCC and the Idaho State Legislature. The Company therefore urges the Commission to expeditiously grant the requested statewide ETC designation. In the alternative, the Company requests that the Commission grant it a statewide Lifeline-only ETC designation with certain conditions under one or both of the two alternative approaches described above. If the Commission does not grant the Company's request for ETC status, the Company requests a hearing in this matter to correct inaccuracies of law and fact in the Staff Comments as set forth herein and to develop an adequate record for decision-making by the Commission. DATED this 16th day of June 2026. ARKOOSH LAW OFFICES r� Nicholas J. Erekson Attorneys for Ziply Fiber REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 16 CERTIFICATE OF MAILING I HEREBY CERTIFY that on the 16th day of June 2026, I served a true and correct copy of the foregoing document(s) upon the following person(s), in the manner indicated: Commission Secretary U.S. Mail, Postage Prepaid Idaho Public Utilities Commission Overnight Courier 11331 W. Chinden Blvd., Building 8, Hand Delivered Suite 201-A(83714) Via Facsimile P.O. Box 83720 X_ Email: Boise, ID 83720-0074 secretary@puc.idaho.gov Erika K. Melanson U.S. Mail, Postage Prepaid Jeffrey R. Loll Overnight Courier Deputy Attorneys General Hand Delivered Idaho Public Utilities Commission Via Facsimile P.O. Box 83720 X_ Email: Boise, ID 83720-0074 erika.melanson@puc.idaho.gov jeff.loll@puc.idaho.gov Nicholas J. rekson REPLY COMMENTS OF ZIPLY WIRELESS,LLC—Page 17