DATE:	September 16, 2010
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Regulatory Analysis (Polk, Casey) Office of General Counsel (Teitzman)
RE:	Docket No. 100383-TP - T-Mobile South LLC's 2011 annual certification as an eligible telecommunications carrier in rural service areas and request to amend certification area.
AGENDA:	09/28/2010 – Regular Agenda – Issue 1 - Final Agency Action; Issue 2 - Proposed Agency Action – Interested Persons May Participate.
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Administrative
CRITICAL DATES:			October 1, 2010, High-Cost Universal Service Certification for 2011 must be submitted to the Federal Communication Commission and Universal Service Administrative Company by October 1.
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\RAD\WP\100383.RCM.09-28-10.DOC

 

 Case Background

Section 254(e) of the Telecommunications Act of 1996 provides that a carrier that receives universal service support “…shall use that support only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.”  In its Fourteenth Report and Order, Twenty-Second Order on Reconsideration, and Further Notice of Proposed Rulemaking in CC Docket No. 00-256 (the Rural Task Force Order; hereafter, the RTF Order), the Federal Communications Commission (FCC) modified its rules pertaining to the provision of high-cost support for rural telephone companies.  The FCC adopted a rule requiring that states who wish for rural carriers within their jurisdiction to receive federal high-cost support must file a certification annually with the FCC and with the Universal Service Administrative Company (USAC).  This certification is to affirm that the federal high-cost funds flowing to rural carriers in the state, or to any competitive eligible telecommunications carriers seeking support for serving customers within a rural carrier’s service area, will be used in a manner that comports with Section 254(e).  47 C.F.R. §54.314 provides the following:

State certification of support for rural carriers.

 

(a)        State certification.  States that desire rural incumbent local exchange carriers and/or eligible telecommunications carriers serving lines in the service area of a rural incumbent local exchange carrier within their jurisdiction to receive support pursuant to §§54.30 (local switching support), 54.305 (sale or transfer of exchanges), and/or 54.307 (support to competitive ETC) of this part and/or part 36, subpart F of this chapter must file an annual certification with the Administrator and the Commission stating that all federal high-cost support provided to such carriers within that State will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended...

 

(c)        Certification format.  A certification pursuant to this section may be filed in the form of a letter from the appropriate regulatory authority for the State, and shall be filed with both the Office of the Secretary of the Commission clearly referencing CC Docket No. 96-45, and with the Administrator of the high-cost universal service support mechanism, on or before the deadlines set forth below in subsection (d). . . .

 

The FCC requires that certifications for the next calendar funding year must be submitted by the preceding October 1; thus, in order for a rural carrier to be eligible for high-cost universal service support for all of calendar year 2011, certification must be submitted by October 1, 2010.

 

            On March 17, 2005, the FCC released Order No. FCC 05-46 establishing new annual certification and reporting requirements to comply with the conditions of Eligible Telecommunication Carrier (ETC) designation and to ensure universal service funds are used for their intended purposes.  In making its decision, the FCC believed that the new reporting requirements were reasonable and consistent with the public interest and the Act, and will further the FCC’s goal of ensuring that ETCs satisfy their obligation under Section 214(e) of the Act to provide supported services throughout their designated service areas.  The FCC also believed that the administrative burden placed on carriers would be outweighed by strengthening the requirements and certification guidelines to help ensure that high-cost support is used in the manner that it was intended, and would help prevent carriers from seeking ETC status for purposes unrelated to providing rural and high-cost consumers with the access to affordable telecommunications and information services.

 

            By Order No. PSC-05-0824-FOF-TL, issued August 15, 2005, and Order No. PSC-05-0824A-FOF-TL, issued August 17, 2005, the Florida Public Service Commission (FPSC or Commission) approved the establishment of the annual certification and reporting requirements.  T-Mobile South LLC (T-Mobile) is seeking Florida rural high-cost certification for 2011.

 

By Order No. PSC-10-0478-PAA -TP, issued July 29, 2010, in Docket No. 090510-TP, the FPSC designated T-Mobile South LLC as an ETC in the rural areas of CenturyLink, Frontier, Indiantown, NEFCOM, TDS, Smart City, and Windstream in order to be eligible to receive high-cost federal universal service support.  Consummating Order No. PSC-10-0535-CO-TP, issued August 20, 2010, made the Commission’s Proposed Agency Action (PAA) effective and final.

This docket addresses T-Mobile’s petition for its annual ETC certification required by 47 C.F.R. sections 54.209, 54.313, 54.314, 54.809, and 54.904; and, concurrently, its request to amend its authorized list of rural wire centers for which it is authorized to receive federal universal service high-cost support from the federal Universal Service Fund (FUSF).  T-Mobile inadvertently omitted a wire center from its list of authorized rural wire centers in Docket No. 090510-TP.

Discussion of Issues

Issue 1: 

 Should the FPSC certify to the FCC and to the USAC that for the year 2011, T-Mobile will only use the federal high-cost support it receives for the provision, maintenance and upgrading of facilities and services for which the support is intended?

Recommendation: 

 Yes. (Polk, Casey)

Staff Analysis: 

 Pursuant

 to FCC rules under 47 C.F.R. §54.314, the state commission has the primary responsibility to certify that an ETC is eligible to receive high-cost federal universal service support.  Unless the Commission submits T-Mobile’s certification to the FCC and to the USAC by October 1, 2010, T-Mobile will receive no interstate high-cost universal service funds during the first quarter of 2011, and would forego all federal support for that quarter.  Certifications filed after October 1, 2010, would cause T-Mobile to be eligible for high-cost funds for only partial quarters of 2011.  T-Mobile has provided the Commission with an affidavit (see Attachment A) in which it has certified that its use of interstate high-cost universal service support received during 2011 will comport with Section 254(e) of the Act and applicable FCC rules.  Given this ETC certification, staff recommends that the Commission certify to the FCC and to the USAC that for the year 2011, T-Mobile will only use the federal high-cost support it receives for the provision, maintenance and upgrading of facilities and services for which the support is intended.

 

Issue 2: 

 Should T-Mobile be allowed to amend its authorized list of rural wire centers for which it is authorized to receive federal high-cost universal service support to add a wire center that T-Mobile inadvertently omitted from its list in Docket 090510-TP?

Recommendation: 

 Yes.  Staff recommends that T-Mobile be allowed to amend its authorized list of rural wire centers by adding the LKPCFLXA wire center which T-Mobile inadvertently omitted from its list of authorized rural wire centers in Docket 090510-TP. (Polk, Casey)

Staff Analysis: 

 Pursuant

 to FCC rules 47 C.F.R. §54.314, the state commission has the responsibility to approve the list of rural wire centers for which an ETC can receive high-cost support.  Staff recommends that T-Mobile be allowed to amend its authorized list of rural wire centers by adding the LKPCFLXA wire center which T-Mobile inadvertently omitted from its list of authorized rural wire centers in Docket 090510-TP.

Issue 3: 

 Should this docket be closed?

 Yes.  With the approval of Issues 1 and 2, this docket should be closed upon the issuance of an Order consummating Issue 2, if no person whose substantial interests are affected by the proposed agency action files a protest of Issue 2 within 21 days of the issuance of the order. (Teitzman)

 

Staff Analysis: 

 With the approval of Issues 1 and 2, this docket should be closed upon the issuance of an Order consummating Issue 2, if no person whose substantial interests are affected by the proposed agency action files a protest of Issue 2 within 21 days of the issuance of the order.