DATE:	January 28, 2010
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Regulatory Analysis (Williams, Casey) Office of the General Counsel (Brooks, Teitzman)
RE:	Docket No. 090337-TX – Petition for designation as an eligible telecommunications carrier by Easy Telephone, Inc.
AGENDA:	02/09/10 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Skop
CRITICAL DATES:			None
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\RAD\WP\090337.RCM.DOC

 

 Case Background

On June 18, 2009, Easy Telephone, Inc. (Easy Telephone) petitioned the Florida Public Service Commission (FPSC or Commission) for designation as an eligible telecommunications carrier (ETC) in the State of Florida.  In its petition, Easy Telephone requested that it be granted ETC status in certain BellSouth/AT&T (AT&T), Sprint, and Verizon exchanges for purposes of receiving federal universal service support.  However, on October 23, 2009, in response to a staff data request, Easy Telephone explained that it is only requesting ETC status within AT&T’s service territory.  Further, Easy Telephone states that it is only seeking low-income support, and that it is not requesting high-cost support from the federal Universal Service Fund (USF). 

 

In its petition, and in response to a staff data request, Easy Telephone states that it provides local exchange and exchange access service using a combination of resale and unbundled network elements, or unbundled network equivalents obtained through a Interconnection Agreement (UNEs) with AT&T that allows end-to-end switching delivery of calls.  Easy Telephone signed an applicant certification attesting that it will follow all Florida Statutes, Florida Administrative Rules, Florida PSC Orders, Federal Communications Commission (FCC) Rules, FCC Orders, and regulations contained in the Telecommunications Act of 1996 regarding Universal Service, ETCs, Link-Up, Lifeline, and toll limitation service.  (Attachment A)

 

Easy Telephone is a Florida corporation organized in 1999 with its headquarters in Tamarac, Florida.  The company was granted certification to operate as a Competitive Local Exchange Company (CLEC) in Florida on January 21, 2000, by Order Number PSC-00-0144-CO-TX. 

 

As of October 23, 2009, Easy Telephone states that it serves 1,100 residential customers in Florida.  The Commission has authority under Section 364.10(2), Florida Statutes, to decide a petition by a CLEC seeking designation as an ETC pursuant to 47 C.F.R. § 54.201.

 

Discussion of Issues

Issue 1: 

 Should Easy Telephone be granted ETC designation in the State of Florida?

Recommendation:

 Yes.  Staff recommends that Easy Telephone be granted ETC designation status in the AT&T wire centers listed in Attachment B of this recommendation. (Williams, Casey)

Staff Analysis: 

 Pursuant to Federal Statute, state commissions have the primary responsibility to designate providers as ETCs.[1]  Designation as an ETC is required in order for a provider to be eligible to receive monies from the federal USF.  Section 254(e) of the Telecommunications Act of 1996 (Act) provides that “only an eligible telecommunications carrier designated under Section 214(e) shall be eligible to receive specific federal universal service support.”[2]  According to Section 214(e)(1), a common carrier designated as an ETC must offer and advertise the services supported by the federal Universal Service mechanisms throughout its designated service area.  Further, 47 CFR 54.405(b) specifies that ETCs must publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the service. 

 

ETC Certification Requirements

 

            The Code of Federal Regulations addresses a state commission’s responsibilities related to an ETC designation:[3]  

 

Upon request and consistent with the public interest, convenience, and necessity, the state commission may, in the case of an area served by a rural telephone company, and shall, in the case of all other areas, designate more than one common carrier as an eligible telecommunications carrier for a service area designated by the state commission, so long as each additional requesting carrier meets the requirements of paragraph (d) of this section.  Before designating an additional eligible telecommunications carrier for an area served by a rural telephone company, the state commission shall find that the designation is in the public interest.

To qualify as an ETC, a carrier must provide nine services identified in 47 CFR 54.101.  The services are:

(1)    Voice grade access to the public switched network  Voice grade access is defined as a functionality that enables a user of telecommunications services to transmit voice communications, including signaling the network that the caller wishes to place a call, and to receive voice communications, including receiving a signal indicating there is an incoming call;

 

(2)    Local Usage Local usage indicates the amount of minutes of use of exchange service, provided free of charge to end users;

 

(3)    Dual-tone multi-frequency signaling or its functional equivalent Dual-tone multi-      frequency ("DTMF") is a method of signaling that facilitates the transportation of signaling through the network, thus shortening call set-up time;

 

(4)    Single-party service or its functional equivalent Single-party service is telecommunications service that permits users to have exclusive use of a wireline subscriber loop or access line for each call placed, or in the case of wireless telecommunications carriers which use spectrum shared among users to provide service, a dedicated message path for the length of a user's particular transmission;

 

(5)  Access to emergency services  Access to emergency services includes access to services, such as 911 and enhanced 911, provided by local governments or other public safety organizations; 

 

(6)  Access to operator services Access to operator services is defined as access to any automatic or live assistance to a consumer to arrange for billing and/or completion of a telephone call;

 

      (7)  Access to interexchange service  Access to interexchange service is defined as the use  of the loop, as well as that portion of the switch that is paid for by the end user, or the        functional equivalent of these network elements in the case of a wireless carrier,      necessary to access an interexchange carrier’s network;

 

      (8)  Access to directory assistance  Access to directory assistance is defined as access to a              service that includes, but is not limited to, making available to customers, upon request,          information contained in directory listings; and

 

(9)   Toll limitation for qualifying low-income consumers  Toll limitation or blocking restricts all direct-dial toll access.

 

In addition to providing the above services, 47 CFR 54.405(b) specifies that ETCs must publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the service. 

 

Additional ETC Certification Requirements

 

            In addition to requiring the above services, the FCC, on March 17, 2005, issued a Report and Order that established additional criteria that all ETC applicants must satisfy in order to be granted ETC status by the FCC.[4]  In this Order, the FCC determined that an ETC applicant must also demonstrate:

1)      a commitment and ability to provide the supported services throughout the designated area;

2)      the ability to remain functional in emergency situations;

3)      ability to satisfy consumer protection and service quality standards;

4)      provision of local usage comparable to that offered by the incumbent LEC; and

5)      an acknowledgement that the applicant may be required by the FCC to provide equal access if all other ETCs in the designated service area relinquish their designations pursuant to Section 214(e)(4) of the Act.

 

            The FCC encouraged states to also adopt these criteria, and the FPSC has done so in Docket No. 010977-TL (State certification of rural telecommunications carriers pursuant to 47 C.F.R. 54.314),  by Order No. PSC-05-0824-TL, issued August 15, 2005.

 

Public Interest Determinations

 

            Under Section 214 of the Act, the FCC and state commissions must determine that an ETC designation is consistent with the public interest, convenience and necessity for rural areas.  They also must consider whether an ETC designation serves the public interest consistent with Section 254 of the Act.  Congress did not establish specific criteria to be applied under the public interest tests in Sections 214 or 254.  The public interest benefits of a particular ETC designation must be analyzed in a manner that is consistent with the purposes of the Act itself, including the fundamental goals of preserving and advancing universal service; ensuring the availability of quality telecommunications services at just, reasonable, and affordable rates; and promoting the deployment of advanced telecommunications and information services to all regions of the nation, including rural and high-cost areas.[5]  Staff believes that before designating a carrier as an ETC, the FPSC should make an affirmative determination that such designation is in the public interest, regardless of whether the applicant seeks designation in an area served by a rural or non-rural carrier.

 

Easy Telephone’s Petition

 

Easy Telephone is requesting that it be granted ETC status throughout the non-rural wire centers of AT&T (Attachment B) for the purpose of receiving federal universal service support.  The company maintains that it is only seeking low-income support, and it is not requesting high-cost support from the federal USF.  Easy Telephone’s primary purpose in requesting ETC status in Florida is to provide Lifeline and Link-Up services over landline access lines. 

 

Easy Telephone has acknowledged the requirements of the Florida Lifeline program, and it has agreed to adhere to the program which provides qualified customers a total of $13.50 in Lifeline assistance credits consisting of: $6.50 in federal subscriber line charges, $1.75 in federal support for states that have approved the credit, and $1.75 which is a 50% match of federal support for having a state Lifeline program requiring a $3.50 credit under the Florida eligibility criteria.  Easy Telephone indicates that it will provide the $3.50 credit to qualified clients, advertise the availability of Lifeline, and begin offering these services within 60 days of receiving ETC status.

Easy Telephone states that it can provide local exchange and exchange access services using a combination of resale and unbundled network elements (UNEs).  Federal rules do not require companies to lease UNEs prior to ETC designation.  However, Federal rules do require that ETCs provide local exchange and exchange access services using a combination of resale and UNEs prior to requesting reimbursement from the USF.

 

Easy Telephone has also indicated that its accounts with the FCC and the Universal Service Administrative Company (USAC) are current, and it is not aware of any outstanding complaints or violations with either entity.  As part of the petition process, Easy Telephone has agreed to abide by the Commission’s rules pertaining to the Lifeline and Link-Up programs.  Easy Telephone commits to use federal universal service support only for the provision of services for which the support is intended. 

           

Staff reviewed Easy Telephone’s payment history of regulatory assessment fees, consumer complaint incidents and the timely resolution of those complaints, compiled financial statements, and the company’s status with the Florida Department of State Division of Corporations, among other sources.  Easy Telephone appears to be in good standing with the Commission.

           

Conclusion

 

Based on staff’s review, along with Easy Telephone’s commitment to abide by both state and federal rules and procedures, staff believes that Easy Telephone’s petition to be designated as an ETC is in the public interest and should be approved.  If Easy Telephone should decide in the future to seek High Cost universal service funds, ETC status in rural areas, or ETC designation as a wireless ETC, it should be required to file a petition and make a showing that it would be in the public interest to grant such a request.  Upon a decision by the Commission, staff will continue the necessary oversight to ensure that Easy Telephone, along with all other ETCs in Florida, are upholding these principles and attaining the goals and objectives of both the state and federal universal service programs.  Therefore, staff recommends that Easy Telephone be granted ETC designation status in the AT&T wire centers listed in Attachment B of this recommendation.

 

Issue 2: 

 Should this docket be closed?

Recommendation: 

Yes.  If no person whose substantial interests are affected files a protest to the Commission’s Proposed Agency Action within 21 days of the issuance of the Commission Order, this docket should be closed upon issuance of a consummating order.

(Brooks, Teitzman) 

Staff Analysis: 

 If no person whose substantial interests are affected files a protest to the Commission’s Proposed Agency Action within 21 days of the issuance of the Commission Order, this docket should be closed upon issuance of a consummating order.

 

                                                                                                                                                                Attachment B

 

 

Company                                                                                 Rate Center                 Switch

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           ARCHER                      ARCHFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BOCA RATON           BCRTFLSADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BROKSVL                    BKVLFLJFDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BALDWIN                   BLDWFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BELLEGLADE            BLGLFLMADSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BUNNELL                   BNNLFLMARSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BRONSON                   BRSNFLMARSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           BOYNTONBCH          BYBHFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           COCOABEACH          CCBHFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CEDAR KEYS             CDKYFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CHIEFLAND               CFLDFLMARSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CHIPLEY                     CHPLFLJADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CANTONMENT         CNTMFLLEDSI

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           COCOA                        COCOFLMEDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CROSS CITY               CSCYFLBARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DEBARY                      DBRYFLMARSI

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DELAND                     DELDFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DELRAY BCH             DLBHFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DELEON SF0               DLSPFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DIJNNELLON             DNLNFLWMRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DEERFLDBCH            DRBHFLMADSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           DAYTONABCH         DYBHFLPODSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           EAU GALLIE              EGLLFLIHDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           EASTORANGE           EORNFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           FLAGLERBCH            FLBHFLMARSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           FERNADNBCH          FRBHFLFPDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           FORTPIERCE              FrPRFLMARSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           GREENCVSPG            GCSPFLCNDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           GRACEVILLE             GCVLFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           GENEVA                      GENVFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           GULFBREEZE            OLBRFLMCDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           GAINESVL                  GSVLFLNW33E

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HAVANA                    HAVNFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HOBE SOUND            HBSDFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HOLLEYNVRR           HLNVFLMADSI

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           FTLAUDERDL           HLWDFLPEDSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HOLLYWOOD            HLWDFLWHDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HOMESTEAD             HMSTFLNARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           HAWTHORNE            HWTHFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JAY                               JAY FLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JACKSOLBCH            JCBHFLMA24E

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JUPITER                      JPTRFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           KEYSTN HTS              KYHGFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           LAKE CITY                 LKCYFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           LYNN HAVEN            LYHNFLOHDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MICANOPY                MCNPFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MIDDLEBURO           MDBGFLPMDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MIAMI                        MIAMFLWMDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MELBOURNE             MLBRFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MILTON                      MLTNFLRADS~)

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JACKSONVL               MNDRELLODSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JULNGTON                MNDRFLLWRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MUNSON                    MNSNFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           MAX VILLE                MXVLFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           NORTH DADE           NDADFLOLDSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           NWSMYRNBCH         NSBHFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           NEWBERRY                NWBYFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           OAK HILL                   OKHLFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           OLD TOWN                OLTWFLLNRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           ORLANDO                  ORLDFLSADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           ORANGEPARK          ORPKFLRWDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PACE                            PACEFLPVRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PAHOKEE                   PAHKFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PNAMACYBCH         PCBHFLNTDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PALM COAST            PLCSFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PALATKA                   PLTKFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           CORAL SPG                PMBHFLCSDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           POMPANOBCH         PMBHFLTADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           POMONAPARK         PMPKFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PANAMACITY          PNCYFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PENSACOLA              PNSCFLWADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PNTVDRABCH          PNVDFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PERRINE                     PRRNFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PIERSON                     PRSNFLFDRSQ

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           PTST LUCIE                PTSLFLSOCGO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           SEBASTIAN                SBSTFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           KEYS                            SGKYFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           OVIEDO                       SNFRFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           SANFORD                   SNFRFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           STAUGUSTIN            STAGFLSHRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           ST JOHNS                    STAGFLWGRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           JENSEN BCH              STRTFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           STUART                      STRTFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           SUNNYHILLS             SYHSFLCCRSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           TRENTON                   TRENFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           TITUSVILLE               TFVLFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           VERNON                     VERNFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           VERO BEACH             VRBHFLMADSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           WELAKA                     WELKFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           WPALMBEACH         WPBHFLRPDS()

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           WEEKICHSPG            WWSPFLSHDSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           YONGSTFNTh            YNFNFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           YANKEETOWN         YNTWFLMARSO

BELLSOUTH TELECOMM INC DBA SOUTHERN BELL TEL & TEL           YULEE                         YULEFLMARSO