HomeMy WebLinkAbouttelecom.pdfIdaho Public Utilities Commission 2012
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Idaho Telecommunications
Case No. GNR‐T‐12‐03, Order No. 32572
July 3, 2012
Commission approves telephone rule settlement by 21 vote
The commission approved a settlement between regulated telephone companies that offer basic
landline service and commission staff, allowing the companies more time to respond to outages and
removing credits to customers if response deadlines are not met. The settlement was approved by the
commission on a 2‐1 vote, with Commissioners Paul Kjellander and Mack Redford voting in favor and
Commissioner Marsha Smith dissenting.
CenturyLink (formerly Qwest), later joined by other landline companies, asked the PUC to be exempted
entirely from Telephone Customer Relations Rule 502 that required regulated telephone companies to
restore outages within 24 hours unless the outage occurs on a weekend. If the company fails to restore
service within the rule’s time frames, it must credit customers an amount equal to the rate for one
month of basic local exchange service. The settlement declines the waiver, but extends the response
time for regulated companies to 48 hours, extends response times if outages occur on a weekend and
removes the customer credit if deadlines are not met.
The 1993 rule made sense when basic landline service from one provider was all that was available to
customers, CenturyLink claimed. “Today, however, a substantial majority of basic local service
customers are not cut off from communication and are not out‐of‐service in the event their wireline
telephone is not working.” Further, CenturyLink claimed, unregulated wireless providers are not
subject to the commission’s customer service rules, giving them an economic advantage.
The commission’s adoption of the settlement complies with the Legislature’s directive that the
commission achieve a “balanced program of regulation and competition,” the majority said. Further,
the majority maintained, other customer service rules still in place require prompt response to outages
and “the presence of competitive alternatives is adequate in those areas to likely compel reasonable
response to reports of outages.”
In her dissent, Commission Smith acknowledged that most customers have competitive choices. “My
concern is for those who do not,” she stated. “The comments in opposition to the rule change from
those in areas where broadband is not available and access to cell phone service is non‐existent or
intermittent convince me that we should not ignore their very important concerns and the vital nature
of landline telephone service in their lives.”
CenturyLink, joined by Frontier Communications Northwest, Citizens Telecommunications Company of
Idaho, TDS Telecommunications Corp and the Idaho Telecom Alliance, and commission staff conducted
settlement negotiations and proposed the compromise that extended the response time to 48 hours
and to close of business on Monday for outages reported on Thursday and to close of business Tuesday
for outages reported on Friday. The rule also requires that at least 80 percent of out‐of‐service trouble
reports be cleared each month within the specified time frames. As in the former rule, there are
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exemptions from the rule if outages are caused by circumstances beyond the company’s control, such as
a natural disaster or a when a customer causes the outage or does not make a reasonable effort to
arrange a repair visit.
The majority pointed to Telephone Customer Relations Rule 500 and 501 still in place even after the
revisions to this rule, Rule 502. Rule 500 requires each local exchange company “to employ prudent
management and engineering practices to ensure that customers receive the best quality of service
practicable.” Additionally, each company “is required to adopt and pursue a maintenance program
aimed at achieving efficient operation of its systems to render safe, adequate and uninterrupted
service.” Rule 501 requires a prompt response to reports of outages. Specifically, “each telephone
company providing local exchange service shall provide for the receipt of customer trouble reports at all
hours and make a full and prompt investigation of and response to all reports.” Companies are required
to “maintain an accurate record of trouble reports made by its customers,” which are required to “be
available to the Commission or its authorized representatives upon request at any time within two years
of the date of the record.”
However, Smith said existing rules won’t protect customers in all situations. “It is my experience that
business entities respond to the financial consequences that follow from their decisions. There will be
changes in restoration service protocol from this rule change. I doubt they will benefit customers in
Idaho who rely solely on landline telephone service.”
According to the Federal Communications Commission, wireless services were available at between 80
and 90 percent of populated areas in 2009. The FCC identified 1,221,000 wireless connections in Idaho
during 2009, while the 2009 census recorded only 647,502 housing units, according to CenturyLink.
CenturyLink said its workers are taking time to restore landline service to meet the rule’s requirements
instead of installing broadband service, which, the company claims, is more important to many
customers than landline connections. Commissioner Smith disagreed, stating customers do not care less
about their landline service. “In some situations, landline telephone service is their only life line.”
The commission received about two dozen comments from citizens opposed to the compromise rule, as
well as AARP Idaho. AARP said elderly customers “are far less likely to rely on cell phone service than
are other residents, and those residing in rural areas often have limited or spotty cell coverage.”
The revisions, CenturyLink argued, “promote a more competitive telecommunications market in which
customers’ desires and concerns, not outmoded regulatory constructs, drive competitive companies’
responses.” The revised rules lengthen and clarify response issues “while still maintaining standards for
restoration that protect customers.”
CenturyLink particularly objected to the month’s free service credited customers if the company did not
timely respond to outages, calling it the “most blatant example of how Rule 502 creates a competitive
disadvantage for incumbent companies. No other competitor is required to pay such credits, which total
a substantial economic cost.”
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Case No. TFW‐T‐09‐01, Order No. 32550
May 25, 2012
Settlement between TracFone, commission staff approved
A company that provides wireless service through pre‐paid calling cards has said it will start paying into
a fund that helps low‐income customers in exchange for state regulators declaring it eligible to receive
funds from federal and state low‐income assistance programs.
As part of the settlement, TracFone Wireless Inc. also said it will drop its current appeal before the Idaho
Supreme Court and will let a district court decide if it has to pay into the state E‐911 fund.
The settlement is intended to resolve a longstanding dispute between TracFone, the commission and
other Idaho telecommunications providers.
In March 2010, TracFone filed an application seeking commission designation as an Eligible
Telecommunications Carrier in Idaho. ETC status would qualify TracFone to receive money from federal
and state low‐income assistance programs. The commission denied the company’s request due
primarily to TracFone’s belief that its customers are not required to pay an assessment to the ldaho
Telephone Service Assistance Fund (ITSAP) or its federal counterpart, Lifeline.
ITSAP and Lifeline allow telephone customers who meet state Health and Welfare Department
guidelines to receive discounts that help to ensure they have access to local dial‐tone service for medical
and other emergencies. The program is funded by a monthly charge of 6 cents per line for each Idaho
residential, business and wireless customer. The revenue from that charge and the federal Lifeline funds
provide for a discount that is currently $12.75 per month for qualifying participants. The federal Lifeline
fund provides $9.25 of that amount, while the state provides $3.50 from the Idaho Telephone
Assistance Program (ITSAP).
TracFone claimed it could not assess its customers the surcharge because it offers its service through
pre‐paid airtime cards available at third‐party outlets (e.g. Wal‐Mart, Target, Best Buy, etc.) rather than
billing its customers, which would be the mechanism for collecting the surcharge. TracFone also said it
would not contribute to Idaho’s Emergency‐911 fund for primarily the same reasons. Not doing so is a
violation of the Idaho Emergency Communications Act, the commission ruled.
TracFone already offers pre‐paid wireless service in Idaho, but sought ETC designation so it could
provide service to low‐income customers under the name SafeLink Wireless. Under the program,
qualifying customers would receive a free handset and up to 250 minutes of free time. For use beyond
250 minutes, customers would purchase a pre‐paid card at 10 cents per minute. In other states,
SafeLink offers service to low‐income, low‐volume users and transient users who either choose not to
enter into long‐term service commitments or are unable to meet the credit requirements necessary to
obtain service from other carriers.
After the commission denied TracFone’s petition for reconsideration, TracFone appealed to the state
Supreme Court. Since the appeal, TracFone, commission staff, The Idaho Telecom Alliance (a 14‐
member association of commercial telephone companies and cooperatives) and CTC Telecom (Snake
River PCS) engaged in settlement discussions.
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Under the settlement, TracFone agrees to contribute to the ITSAP fund retroactive to January 1, 2011.
TracFone also agrees to file a Declaratory Judgment Action in state district court requesting a
determination as to whether it must pay into the E‐911 fund. If the court determines TracFone is
subject of E‐911 fees, it will reimburse the Idaho Emergency Communications Commission past due
funds dating from Jan. 1, 2011. If TracFone appeals an adverse district court decision, the PUC may
revoke TracFone’s ETC status.
The Idaho Telecom Alliance and CTC Telecom opposed the settlement. Granting the settlement allows
TracFone a “waiver” of 11 of the 12 years TracFone has conducted in business in Idaho, shortchanging
counties more than $4 million in E‐911 fees and giving TracFone a competitive pricing edge, they argued.
The commission disagreed with the telephone companies’ assertion that past fees are being waived,
noting that TracFone has not conceded it owes the fees. The commission “is in no way ceding its
authority or waiving any past due amounts. Rather, the commission is approving a reasonable
settlement of a disputed issue pending before the Idaho Supreme Court.” Further, the companies’
argument that TracFone has needlessly deprived ITSAP of needed funds ignores the fact that TracFone is
not currently drawing from the ITSAP fund, the commission said.
In earlier orders, the commission said the just because TracFone does not bill its customers does not
justify violating Idaho statutes requiring all telecommunications providers to contribute to E‐911 and
Lifeline. “TracFone has elected to pursue a business model that makes the collection of the fees more
challenging than a more typical telecommunications provider .... However, TracFone’s selection of a
business model does not render the relevant statutes inapplicable.” The commission said TracFone’s
testimony indicated it has the ability to track the usage rate of its customers and calculate the amount
that would be due in low‐income and E‐911 surcharges.
TracFone argued denial of its application would be a disservice to low‐income households in Idaho.
Case No. TMW‐T‐10‐01, Order No. 32581
June 26, 2012
TMobile granted conditional ETC status for unserved areas
The commission granted T‐Mobile West LLC’s application for conditional eligible telecommunication
carrier (ETC) status, allowing the company to compete for federal dollars to accelerate deployment of
cellular and broadband services in unserved areas of Idaho.
ETC status qualifies T‐Mobile to receive federal support to help consumers in rural areas where it costs
more to provide a telecommunications network. In this application, T‐Mobile sought conditional ETC
status in areas not receiving wireless voice or broadband service.
The conditional ETC designation allows T‐Mobile to compete in a Federal Communications Commission
auction for one‐time federal support.
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Last November, the FCC created the Connect America Fund, which reforms the Universal Service Fund.
The USF was created to make telephone service available at reasonable cost in rural areas. The Connect
America Fund was created from savings and efficiencies within the Universal Service Fund to provide
cellular and high‐speed Internet service in rural areas.
Part of the Connect America Fund is the Mobility Fund, which will provide up to $300 million through an
FCC auction on Sept. 27 to accelerate deployment of next generation 3G or better cellular and
broadband networks in unserved areas of the country. As a prerequisite for bidding in the FCC auction,
T‐Mobile must have conditional ETC designation in all the census blocks for which it will submit a bid.
A commission staff analysis determined there are about 43,200 Idahoans residing in 39 counties with
areas that do not have access to wireless voice and/or broadband service.
“The expansion of broadband and voice services throughout Idaho will provide direct and substantial
benefits to Idaho residents,” the commission said.
Other providers with applications pending before the commission for conditional ETC status to
participate in the FCC’s Mobility Fund auction are Allied Wireless Communications and Syringa Wireless
LLC.
Case No. ALL‐T‐10‐01, Order No. 32590
Case No. SYR‐T‐08‐01, Order No. 32591
July 13, 2012
Wireless companies granted conditional ETC status for FCC auction
The commission granted two more cellular companies conditional eligible telecommunication carrier
(ETC) status, allowing them to compete for federal dollars that would assist them in accelerating
deployment of cellular and broadband services in unserved areas of the state.
Allied Wireless Communications Corporation and Syringa Wireless LLC were granted the conditional
status, which qualifies them to receive federal support to help consumers in rural areas where it costs
more to provide a telecommunications network.
Last November, the Federal Communications Commission created the Connect America Fund, which
reforms the Universal Service Fund. The USF was created in 1997 to make telephone service available at
reasonable cost in rural areas. The Connect America Fund was created from savings and efficiencies
within the Universal Service Fund to provide cellular and high‐speed Internet service in rural areas.
Part of the Connect America Fund is the Mobility Fund, which will provide up to $300 million through an
FCC auction on Sept. 27 to accelerate deployment of next generation 3G or better cellular and
broadband networks in unserved areas of the country.
As a prerequisite for bidding in the FCC auction, Allied and Syringa must have conditional ETC
designation in all the census blocks for which it will submit a bid.
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A commission staff analysis determined there are about 43,200 Idahoans residing in 39 counties with
areas that do not have access to wireless voice and/or broadband service.
Case No. GNR‐T‐12‐07, Order No. 32637
September 21, 2012
Surcharge to support universal service increases
A surcharge that helps Idaho’s rural telephone companies provide service in high‐cost rural areas will
increase slightly on Oct. 1 as a result of an order signed by the Idaho Public Utilities Commission.
The Idaho Telecommunications Act of 1988 created the Universal Service Fund (USF) to maintain
universal availability of local telephone service at reasonable rates in areas where greater distances and
fewer customers makes providing service more costly than providing the same service in urban areas.
All landline and long distance companies pay to the fund through a surcharge on customer bills and, in
turn, charge their customers a monthly amount set by the commission. Effective Oct. 1, customers with
residential lines will pay 15 cents per month, up from 12 cents. Business lines will be assessed 23 cents
per line, up from 19 cents. Customers of long distance companies also pay the surcharge. The surcharge
for in‐state toll calls will increase from $.0035 per minute to $.004 (four‐tenths of a cent) per minute.
Idaho Code 62‐610A, states that, “all consumers in this state, without regard to their location, should
have comparable accessibility to basic telecommunications services at just and reasonable rates.” With
assistance from the Universal Service Fund, rural telephone companies are able to keep their rates at no
more than 25 percent above rates in more urban areas.
The fund collected $1.65 million through June 30, but payments from the fund to the eight rural
telephone companies in Idaho that qualify for assistance total nearly $1.7 million, thus necessitating an
increase in the surcharge.
With the increasing use of cell phones, the number of residential and business landlines continues to
decrease, which causes the amount paid into USF to decline. As of May 1, telephone companies
reported 253,461 Idaho residential landlines, an 8 percent decrease from the previous year. Business
lines also decreased by 1 percent to 219,108. Long‐distance billed minutes increased by 2 percent.
However, that increase is attributed to more accurate reporting by some telephone companies rather an
actual increase in long‐distance minutes.
The eight telephone companies that qualify for USF disbursements include: Albion Telephone Company,
Cambridge Telephone Company, Direct Comm of Rockland, Inland Telephone Company of Roslyn, Wash.
(serving Idaho customers in Lenore and Leon), Fremont Telecom, Inc. of St. Anthony; Midvale Telephone
Exchange, Rural Telephone Co. of Glenns Ferry and Silver Star Telephone Co. of Freedom Wyo. (serving
Idaho customers in the eastern portions of Bonneville and Caribou counties).
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Telecommunication Utilities Under PUC Jurisdiction
Albion Telephone Corp (ATC) , P.O. Box 98, Albion, Idaho 83311‐0098 208/673‐5335
Cambridge Telephone Co. P.O.Box 88, Cambridge, Idaho 83610‐0086 208/257‐3314
*CenturyLink, (formerly Qwest Communications) North and South Idaho, Box 7888 (83723) or
999 Main Street, Boise, Idaho 83702 800/339‐3929
CenturyTel of Idaho, Inc., P.O.Box 1007, Salmon, Idaho 83467 208/756‐3300
CenturyTel of the Gem State, P.O.Box 9901, 805 Broadway, Vancouver, WA 98668
360/905‐5800
Also: 111 A Street, Cheney, Washington 99114 509/235‐3170
*Citizens Telecommunications of Idaho, dba as Frontier Communications of Idaho (formerly
Verizon Northwest, Inc.)
Direct Communications Rockland, Inc., Box 269, 150 S. Main St. Rockland, ID 83271
208/548‐2345
Inland Telephone Co., 103 South Second Street, Box 171, Roslyn, WA 98941
509/649‐2211
Fremont Telecom, Inc., 110 E. Main Street, St. Anthony, Idaho 83445 208/624‐7300
Midvale Telephone Exchange, Box 7, Midvale, Idaho 83645‐0007 208/355‐2211
*Citizens Telecommunications of Idaho, dba as Frontier Communications of Idaho (formerly
Verizon Northwest, Inc.)
Oregon‐Idaho Utilities, Inc., 3645 Grand Ave., Ste. 205A, Oakland, CA 94610 510/338‐4621
Local: 1023 N. Horton St., Nampa, Idaho 83653 208/461‐7802
Pine Telephone System, Inc., Box 706, Halfway, OR 97834 541/742‐2201
Potlatch Telephone Company, dba/ TDS Telecom, Box 138, 702 E. Main St.
Kendrick, Idaho 83537 208/835‐2211
Rural Telephone Company, 829 W. Madison Avenue, Glenns Ferry, Idaho 83623‐2372
208/366‐2614
Silver Star Telephone Company, Box 226, Freedom, WY 83120 307/883‐2411
Columbine Telephone Co. Inc., dba Teton Telecom Box 900, Driggs, Idaho 83422
208/354‐3300
*These companies, which represent more than 90 percent of Idaho customers, are no longer
rate regulated. However, they are still regulated for customer service.