Source: http://www.fcc.gov/document/etc-designation-t-mobile-and-ntch
Timestamp: 2015-04-28 20:45:29
Document Index: 404448976

Matched Legal Cases: ['§ 54', '§ 214', '§ 54', '§ 214', '§ 54', '§ 254', '§ 54', '§ 254', '§ 214', '§ 214', '§ 214', '§ 54', '§ 214', '§ 54', '§ 54', '§ 54', '§ 214', '§ 214', '§ 214']

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ETC Designation of T-Mobile and NTCH
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DA 12-1339
Petition of T-Mobile USA, Inc. for Designation as )a Low-Income Eligible Telecommunications )
Amended Petition of NTCH, Inc. for Designation )
as an Eligible Telecommunications Carrier in the )
States of North Carolina and Tennessee
In this order, we conditionally grant a third amended petition filed by T-Mobile USA, Inc. (T-Mobile) for limited designation as an eligible telecommunications carrier (ETC) for the purpose of providing Lifeline services in the states of Alabama, Connecticut, Delaware, New Hampshire, New York, Tennessee, Virginia and the District of Columbia.1 We also conditionally grant an amended petition filed by NTCH, Inc. (NTCH) seeking limited designation as an ETC for the purpose of providing Lifeline services in the states of North Carolina and Tennessee.2 T-Mobile and NTCH (together, the petitioners) respectively filed the Third Amended T-Mobile ETC Petition and the Amended NTCH ETC Petition (together, the Petitions) pursuant to section 214(e)(6) of the Communications Act, as amended (the Act), 1 See Petition of T-Mobile USA, Inc. for Designation As A Low-Income Eligible Telecommunications Carrier, WC Docket No. 09-197 (filed Jul. 31, 2012) (Third Amended T-Mobile ETC Petition). The specific areas for which we designate T-Mobile as an ETC to provide Lifeline service are identified in Appendix B. Separately from this Order, the Commission recently conditionally designated as ETCs four wholly owned T-Mobile subsidiaries, contingent for each upon the particular subsidiary becoming authorized to receive support in Mobility Fund Phase I and limited to those areas in which the particular subsidiary becomes so authorized. See Petition of T-Mobile For FCC Designation As An Eligible Telecommunications Carrier For Mobility Fund Phase I (Auction 901), WC Docket No. 09-197, WT Docket No. 10-208, AU Docket No. 12-25, Order, 27 FCC Rcd 7247 (2012). We note that, if any of those T-Mobile subsidiaries become authorized to receive support in Mobility Fund Phase I, that T-Mobile subsidiary must, as a condition of being an ETC, offer Lifeline services and comply with all Lifeline rules in the areas in which it becomes authorized to receive Mobility Fund Phase I support, i.e., its ultimate service area. See 47 C.F.R. § 54.405. Nothing in this order affects the conditional ETC status of those four T-Mobile subsidiaries or their ability to receive support in Mobility Fund Phase I, nor any obligations such T-Mobile subsidiary may incur as a result of becoming authorized to receive Mobility Fund Phase I support.
2 See Amended Petition of NTCH, Inc. for Designation as an Eligible Telecommunications Carrier, WC Docket 09-197 (filed July 16, 2012) (Amended NTCH ETC Petition). The specific areas for which we designate NTCH as an ETC to provide Lifeline service are identified in Appendix C.
and section 54.202 of the Commission’s rules.
The designation of T-Mobile as an ETC is conditioned on T-Mobile’s compliance with: (i) the representations and commitments made by T-Mobile in its Third Amended T-Mobile ETC Petition; and (ii) the Commission’s rules, including those adopted by the Commission in the Lifeline Reform Order.3 The designation of NTCH as an ETC is conditioned on NTCH’s compliance with: (i) the representations and commitments made by NTCH in its Amended NTCH ETC Designation Petition; (ii) the NTCH Forbearance Order;4 (iii) the commitments NTCH made in its compliance plan;5 and (iv) the Commission’s rules, including those adopted by the Commission in the Lifeline Reform Order.6 In the NTCH Forbearance Order, the Commission granted NTCH forbearance from the requirement to serve the entirety of a rural telephone company’s study area or to obtain approval to modify the service area boundaries, provided it obtains approval of a compliance plan, which includes the measures it would take to implement certification procedures and processes to prevent waste, fraud and abuse in the Lifeline program.7 The Bureau approved NTCH’s compliance plan on June 11, 2012.8
Congress directed the Commission to establish the universal service support mechanisms to help ensure that “[q]uality services [are] available at just, reasonable, and affordable rates” for consumers throughout the nation, “including low-income consumers.”9 The Commission’s Lifeline program furthers this goal by reducing the price of monthly telephone service for low-income consumers.10
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.”11 Pursuant to section 214(e)(1)(A) and (B), a common carrier designated as an ETC must offer the services supported by the federal universal service support mechanisms either using its own facilities or a combination of its own facilities and resale of another carrier’s services throughout its designated service area and must advertise the availability and charges for those services.12 3 See generally Lifeline and Link Up Reform and Modernization, WC Docket Nos. 11-42 et al., CC Docket No. 96-45, Report and Order and Further Notice of Proposed Rulemaking, FCC 12-11 (rel. Feb. 6, 2012) (Lifeline Reform Order).
4 See NTCH, Inc. Petition for Forbearance from 47 U.S.C. § 214(e)(5) and 47 C.F.R. § 54.207(b); Cricket Communications, Inc. Petition for Forbearance, WC Docket No. 09-197, Order, 26 FCC Rcd 13723, 13723-24, para. 2 (2011) (NTCH Forbearance Order).
5 See Wireline Competition Bureau Approves the Compliance Plan of NTCH, Inc., WC Docket No. 09-197, Public Notice, 27 FCC Rcd 6192 (2012) (NTCH Compliance Plan Approval Public Notice); NTCH, Inc. Petition for Forbearance from 47 U.S.C. § 214(e)(5) and 47 C.F.R. § 54.207(b), WC Docket No. 09-197, Compliance Plan (filed Mar. 2, 2012) (NTCH Compliance Plan).
6 See generally Lifeline Reform Order, FCC 12-11. 7 See NTCH Forbearance Order, 26 FCC Rcd at 13723-24, para. 2.8 See NTCH Compliance Plan Approval Public Notice.9 47 U.S.C. § 254(b)(1), (3).10 See 47 C.F.R. § 54.403(a). 11 47 U.S.C. § 254(e).12 See 47 U.S.C. § 214(e)(1)(A), (B).
Section 214(e)(2) of the Act gives state commissions the primary responsibility for designating ETCs in their states.13 Section 214(e)(6) directs the Commission, upon request, to designate as an ETC “a common carrier providing telephone exchange service and exchange access that is not subject to the jurisdiction of a state commission.”14 Under section 214(e)(6), the Commission may, with respect to an area served by a rural telephone company, and shall, in all other cases, designate more than one common carrier as an ETC for a designated service area, consistent with the public interest, convenience, and necessity, so long as the requesting carrier meets the requirements of section 214(e)(1).15 Before designating an additional ETC for an area served by a rural telephone company, the Commission must determine that the designation is in the public interest.16 The Bureau has delegated authority to consider ETC designation requests.17
Requirements for ETC Designation by the Commission
In 1997, the Commission issued a Public Notice setting forth the procedures a carrier must use when requesting designation as an ETC from the Commission.18 Pursuant to that Notice, a carrier seeking ETC designation must file a petition providing the following: (1) a certification and brief statement of supporting facts demonstrating that the petitioner is not subject to the jurisdiction of a state commission; (2) a certification that the petitioner offers all services designated for support by the Commission pursuant to section 254(c) of the Act; (3) a certification that the petitioner offers the supported services either using its own facilities or a combination of its own facilities and resale of another carrier’s services;19 (4) a description of how the petitioner advertises the availability of the supported services and the charges therefor using media of general distribution; (5) if the petitioner is not a rural telephone company, a detailed description of the geographic service area for which it requests to be designated as an ETC from the Commission; and (6) a certification that neither the petitioner, nor any party to the application is subject to a denial of federal benefits pursuant to the Anti-Drug Abuse Act of 1988.20
In addition, the Commission’s rules require that in order to be designated as an ETC, an applicant must: (1) certify that it will comply with the service requirements applicable to the support that it receives; (2) demonstrate its ability to remain functional in emergency situations; (3) demonstrate that it will satisfy applicable consumer protection and service quality standards; (4) demonstrate that it is financially and technically capable of providing the Lifeline service; and (5) submit information describing the terms and conditions of any voice telephony plans offered to Lifeline subscribers, including details on the number of minutes provided as part of the plan, additional charges, if any, for toll calls, and rates for each such plan.21
13 See 47 U.S.C. § 214(e)(2).14 47 U.S.C. § 214(e)(6).15 See id.16 See id.17 See Procedures for FCC Designation of Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of the Communications Act, Public Notice, 12 FCC Rcd 22947, 22948 (1997) (Section 214(e)(6) Public Notice).
18 Id.19 But see Lifeline Reform Order, FCC 12-11 at para. 368 (adopting a blanket forbearance of the facilities requirement of section 214(e)(1)(A) for non-facilities based carriers that seek limited ETC designation to participate in the Lifeline program).
20 See Section 214(e)(6) Public Notice, 12 FCC Rcd at 22948-9, paras. 1-5. 21 See 47 C.F.R. § 54.202(a).
Prior to designating an ETC pursuant to section 214(e)(6), the Commission must determine whether such designation is in the public interest.22 In determining the public interest, the Commission historically has considered the benefits of increased consumer choice and the unique advantages and disadvantages of the applicant’s service offering.23 C.
Federal Universal Service Lifeline Support
The federal universal service Lifeline program is designed to reduce the monthly cost of telecommunications service for qualifying consumers. The Lifeline program reimburses ETCs for providing qualifying low-income consumers with discounts of $9.25 off of the monthly cost of their telephone service.24 The Lifeline program provides additional reimbursement to ETCs for providing eligible residents of Tribal lands with discounts of up to an additional $25.00 off the monthly cost of their telephone service.25
As described below, T-Mobile and NTCH have provided the Commission with the information required for designation as an ETC in the service areas at issue.26 We find that the public interest supports such designations subject to the petitioners’ compliance with the representations and commitments made by the petitioners in their petitions, and the Commission’s rules. NTCH must also comply with the conditions in its forbearance order as well as the conditions set forth in its compliance plan.27
Commission Authority to Perform the ETC Designation
In order for the Commission to designate a carrier as an ETC, an applicant must provide a certification and a brief statement of supporting facts demonstrating that the petitioner is not subject to the jurisdiction of a state commission.28 Petitioners have complied with this requirement by each providing a statement of supporting facts and certification from each of the relevant state commissions providing that the state commission lacks jurisdiction to perform the requested ETC designation and that the Commission has authority to consider the relevant petitioner’s petition under section 214(e)(6) of the Act.29 Specifically, T-Mobile has demonstrated that it is not subject to the jurisdiction of the Alabama 22 See 47 U.S.C. § 214(e)(6); 47 C.F.R. § 54.202(b); see also Federal-State Joint Board on Universal Service, CC Docket No. 95-45, Report and Order, 20 FCC Rcd 6371, 6388-96, paras. 40-57 (2005) (ETC Designation Order); Federal-State Joint Board on Universal Service; Virginia Cellular, LLC Petition for Designation as an Eligible Telecommunications Carrier in Virginia, CC Docket No. 96-45, Memorandum Opinion and Order, 19 FCC Rcd 1563, 1575, para. 27 (2005); Federal-State Joint Board on Universal Service; Highland Cellular, Inc. Petition for Designation as an Eligible Telecommunications Carrier for the Commonwealth of Virginia, CC Docket No. 96-45, Memorandum Opinion and Order, 19 FCC Rcd 6422, 6431–32, para. 21 (2004). The Commission places the burden on the ETC applicant to demonstrate that designation will serve the public interest. ETC Designation Order, 20 FCC Rcd at 6390, para. 44. 23 See Virgin Mobile ETC Designation Order in the States of Alabama, Connecticut, Delaware, New Hampshire and the District of Columbia, WC Docket 09-197, Order, 25 FCC Rcd 17797, 17799, para. 6 (2010).
24 See 47 C.F.R. § 54.403(a)(1).25 See 47 C.F.R. § 54.403(a)(2).26 See Appendices B and C for a list of the service areas for which we are designating T-Mobile and NTCH, respectively, as ETCs for the purpose of providing Lifeline services.
27 See NTCH Forbearance Order, 26 FCC Rcd 13730-31; NTCH Compliance Plan. 28 See 47 U.S.C. § 214(e)(6); see also Section 214(e)(6) Public Notice, 12 FCC Rcd at 22948, para. 1. 29 See Third Amended T-Mobile Petition at 6-7, Ex. D; Amended NTCH ETC Petition at 6, Ex. D.
Public Service Commission (Alabama Commission), Connecticut Department of Public Utility Control (Connecticut Commission), Delaware Public Service Commission (Delaware Commission), New Hampshire Public Utilities Commission (New Hampshire Commission), New York Public Service Commission (New York Commission), Tennessee Regulatory Authority (Tennessee Commission), Virginia State Corporation Commission (Virginia Commission), and the District of Columbia Public Service Commission (District of Columbia Commission). NTCH has demonstrated that it is not subject to the jurisdiction of the North Carolina Utilities Commission (North Carolina Commission) and the Tennessee Commission.30 Accordingly, we find that the relevant state commissions lack jurisdiction to designate the petitioners as an ETC and this Commission has authority to perform the requested ETC designations.31
Offering the Services Designated for Support. Applicants for ETC designation must certify that they offer all services designated for support by the Commission pursuant to section 254(c) of the Act.32 The petitioners have demonstrated through their filings and certifications that they now offer or will offer upon designation as a limited ETC, the voice telephony services supported by the Lifeline program.33 The petitioners state that they provide the services and functionalities enumerated in section 54.101(a) of the Commission’s rules throughout their licensed service areas.34
Offering the Supported Services Using a Carrier’s Own Facilities. In general, applicants for ETC designation must certify that they will offer the supported services either using their own facilities or a combination of their own facilities and the resale of another carrier’s services.35 14.
T-Mobile has demonstrated that it offers, or will offer upon designation as an ETC, the supported service using either its own facilities or a combination of its own facilities and resale of another carrier’s services. Specifically, T-Mobile states that it is a facilities-based wireless telecommunications carrier with its own switching, cell sites, and associated telecommunications facilities throughout its proposed designated service area.36 15.
NTCH has demonstrated that it offers, or will offer upon designation as an ETC, the supported service using either its own facilities or a combination of its own facilities and resale of another 30 Amended NTCH ETC Petition at 6, Ex. D.31 See 47 U.S.C. § 214(e)(6).32 See 47 U.S.C. § 214(e)(1)(A); Section 214(e)(6) Public Notice, 12 FCC Rcd at 22948, para. 2.33 See Third Amended T-Mobile ETC Petition at 9, 21-22; Amended NTCH ETC Petition at 6-8.34 Specifically, T-Mobile certifies that it provides voice telephony services, which include: (i) voice grade access to the public switched telephone network, (ii) local usage; (iii) access to emergency services and (iv) toll limitation for qualifying Low-Income Consumers. See Third Amended T-Mobile ETC Petit