Case Background
Section 254(e) of the Telecommunications Act of 1996,
provides in part, 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.” States seeking
federal high-cost support for carriers within their jurisdiction are required
to file a certification annually with the Federal Communications Commission
(FCC) and with the Universal Service Administrative Company (USAC). The federal
universal service high-cost program is designed to ensure that consumers in
rural, insular, and high-cost areas have access to modern communications
networks capable of providing voice and broadband service, both fixed and
mobile, at rates that are reasonably comparable to those in urban areas. The
program fulfills this universal service goal by allowing eligible carriers who
serve these areas to recover some of their costs from the federal Universal
Service Fund.
The carrier annual reporting data collection form known as
Form 481 is an FCC form that all eligible telecommunications carriers (ETCs) in
the High Cost and Lifeline programs file annually with the FCC and state
commissions. For carriers in the High Cost Program, the form collects:
·
a carrier’s five-year improvement or upgrade
plan (only required for interstate rate-of-return ETCs)[1]
·
detailed information on any outages
·
the number of unfulfilled requests for service
·
the number of complaints per 1,000 connections
·
certification of service quality compliance
·
certification of emergency operation capability
·
branding information of the holding company and
its affiliates
·
documentation demonstrating whether the carrier
is engaged with Tribal governments
·
certification that frozen support received in
2015 was used consistently with the goal of achieving universal availability of
voice and broadband
·
certification that high-cost support designated
for the use of offsetting reductions in access charges was used in the prior
calendar year to build and operate broadband-capable networks used to offer
provider’s own retail service in areas substantially unserved by an
unsubsidized competitor[2]
Carriers in the High Cost Program
are also required to provide the company’s price offerings for voice and
broadband services. Incumbent carriers receiving high-cost support with rates
below the FCC’s benchmark must report rates and lines on the Rate Floor Data
Collection Report and Certification. For carriers in the Lifeline Program, the
form collects branding information of the holding company and its affiliates
and terms and conditions on service plans offered to subscribers.
Florida ETCs filed their Form 481s concurrently with the
Florida Public Service Commission (Commission) and the FCC. Staff reviewed each company’s Form 481 filing
to verify that all of the required information for high-cost certification was
provided. Staff’s recommendation for
certification affirms that the federal high-cost funds flowing to carriers in
the state, or to any competitive eligible telecommunications carriers seeking
support for serving customers within a carrier’s service area, will be used in
a manner that comports with Section 254(e) of the 1996 Telecommunications Act.
Certification is defined by 47 C.F.R. 54.314(a) as follows:
Certification of support for
eligible telecommunications carriers
(a) Certification.
States that desire eligible telecommunications carriers to receive support
pursuant to the high-cost program 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 was used in the preceding calendar
year and will be used in the coming calendar year only for the provision,
maintenance, and upgrading of facilities and services for which the support is
intended. High-cost support shall only be provided to the extent that the State
has filed the requisite certification pursuant to this section.
In order for a carrier to be eligible
for high-cost universal service support for all of calendar year 2017,
certification must be submitted by the Commission by October 1, 2016.[3] The
certification may be filed with the FCC and USAC in the form of a letter from
the Commission.[4] Based on
prior support received by carriers in Florida, staff estimates that the amount
of funding carriers will receive for 2017 will likely be between $60 and $65
million in high-cost support.
USAC has developed a letter
template for use with annual high-cost certifications of state ETCs. Attachment
A is a draft letter, to be signed by the Chairman, using the USAC template to
certify high-cost for Florida ETCs. In addition, USAC has also developed an
online certification process whereby a state commission representative can
sign-in to select and submit the ETCs from their states that have been
certified for the upcoming year. Staff
suggests filing both the letter and using USAC’s online process this year.
Discussion
of Issues
Issue 1:
Should the Commission certify to the FCC and to
USAC, by letter from the Chairman and through USAC’s online portal, that BellSouth
Telecommunications, LLC d/b/a AT&T Florida; Embarq Florida, Inc. d/b/a
CenturyLink; Frontier Communications of the South, LLC; Frontier Florida LLC;
GTC, Inc. d/b/a FairPoint Communications; Knology of Florida, Inc. d/b/a WOW!
Internet, Cable, and Phone; and Windstream Florida, Inc. are eligible to
receive federal high-cost support, and have used the federal high-cost support
in the preceding calendar year, and will use the federal high-cost support they
receive in the coming calendar year only for the provision, maintenance, and
upgrading of facilities and services for which the support is intended?
Recommendation:
Yes. Staff recommends that the Commission should
certify to the FCC and USAC, by letter from the Chairman and through USAC’s
online portal, that BellSouth Telecommunications, LLC d/b/a AT&T Florida;
Embarq Florida, Inc. d/b/a CenturyLink; Frontier Communications of the South,
LLC; Frontier Florida LLC; GTC, Inc. d/b/a FairPoint Communications; Knology of
Florida, Inc. d/b/a WOW! Internet, Cable, and Phone; and Windstream Florida,
Inc. are eligible to receive federal high-cost support, and have used the
federal high-cost support in the preceding calendar year, and will use the
federal high-cost support they receive in the coming calendar year only for the
provision, maintenance, and upgrading of facilities and services for which the
support is intended. (Bates, Curry,
Long, Murphy)
Staff Analysis:
Staff reviewed each of the carriers’ annual
reporting data collection forms (Form 481) to ensure all necessary information
required for high-cost certification was provided by the ETCs. Within Form 481, each of the Florida ETCs has
certified that all federal high-cost support provided to them within Florida
was used in the preceding calendar year (2015) and will be used in the coming
calendar year (2017) only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended.
On May 1, 2014, the FCC released
an order waiving the requirement that interstate price cap ETCs receiving
frozen or incremental support file new five-year build-out plans.[7] Each of the companies in Issue 1 are
interstate price cap ETCs.[8] Therefore,
these carriers are exempt from filing a build-out plan. Having reviewed these
ETCs’ filings, staff recommends that the Commission certify to the FCC and
USAC, by letter from the Chairman and through USAC’s online portal, that
BellSouth Telecommunications, LLC d/b/a AT&T Florida; Embarq Florida, Inc.
d/b/a CenturyLink; Frontier Communications of the South, LLC; Frontier Florida
LLC; GTC, Inc. d/b/a FairPoint Communications; Knology of Florida, Inc. d/b/a
WOW! Internet, Cable, and Phone; and Windstream Florida, Inc. are eligible to
receive federal high-cost support, and have used the federal high-cost support
in the preceding calendar year, and will use the federal high-cost support they
receive in the coming calendar year only for the provision, maintenance, and
upgrading of facilities and services for which the support is intended.
Issue 2:
Should the Commission certify to the FCC and to
USAC, by letter from the Chairman and through USAC’s online portal, that ITS
Telecommunications Systems, Inc.; Northeast Florida Telephone Company d/b/a
NEFCOM; Quincy Telephone Company d/b/a TDS Telecom/Quincy Telephone; and Smart
City Telecommunications, LLC d/b/a Smart City Telecom are eligible to receive
federal high-cost support, and have used the federal high-cost support in the
preceding calendar year, and will use the federal high-cost support they
receive in the coming calendar year only for the provision, maintenance, and
upgrading of facilities and services for which the support is intended?
Recommendation:
Yes. Staff recommends that the Commission should
certify to the FCC and to USAC, by letter from the Chairman and through USAC’s
online portal, that ITS Telecommunications Systems, Inc.; Northeast Florida
Telephone Company d/b/a NEFCOM; Quincy Telephone Company d/b/a TDS Telecom/Quincy
Telephone; and Smart City Telecommunications, LLC d/b/a Smart City Telecom are
eligible to receive federal high-cost support, and have used the federal
high-cost support in the preceding calendar year, and will use the federal
high-cost support they receive in the coming calendar year only for the
provision, maintenance, and upgrading of facilities and services for which the
support is intended. (Bates, Curry,
Long, Murphy)
Staff Analysis:
This issue addresses annual federal high-cost
certification for Florida’s four interstate rate-of-return carriers. FCC Form
481 requires interstate rate-of-return carriers receiving support for voice
telephony service and offering broadband (as a condition of such support) to
file a five-year build-out plan that accounts for the broadband obligations
adopted in the USF/ICC Transformation Order.[9]
In 2014, carriers were required to
forecast network improvements for calendar years 2015 through 2019. The initial
five-year build-out plans were consistent with 47 C.F.R. §54.202 (a)(1), and
included the specific proposed improvements or upgrades to the network, and an
estimate of the area and population that will be served as a result of the
improvements. For the July 1, 2016
filing, carriers had to report progress towards those goals.
Staff reviewed each of the interstate rate-of-return
carrier’s annual reporting data collection forms (Form 481) to ensure all
necessary information required for high-cost certification was provided by the
ETCs. Within Form 481, each of the
Florida ETCs has certified that all federal high-cost support provided to them
within Florida was used in the preceding calendar year (2015) and will be used
in the coming calendar year (2017) only for the provision, maintenance, and
upgrading of facilities and services for which the support is intended.
Given these ETCs’ certifications and the companies’
reported progress towards the goals in their five-year build-out plans, staff
recommends that the Commission certify to the FCC and to USAC, by letter from
the Chairman, that ITS Telecommunications Systems, Inc.; Northeast Florida
Telephone Company d/b/a NEFCOM; Quincy Telephone Company d/b/a TDS
Telecom/Quincy Telephone; and Smart City Telecommunications, LLC d/b/a Smart
City Telecom are eligible to receive federal high-cost support, and have used
the federal high-cost support in the preceding calendar year, and will use the
federal high-cost support they receive in the coming calendar year only for the
provision, maintenance, and upgrading of facilities and services for which the
support is intended.
Issue 3:
Should this docket be closed?
Recommendation:
Yes. If no person whose substantial interest are
affected by the proposed agency action (in Issue 2 only) files a protest within
21 days of the issuance of the order, this docket should be closed upon
issuance of the Consummating Order.
(Bates, Curry, Long, Murphy)
Staff Analysis:
Upon conclusion of the 21 day protest period, if no
protest has been filed, this docket should be closed upon issuance of the
Consummating Order.
July
28, 2016
Ms. Marlene H. Dortch
Office of the Secretary
Federal Communications Commission
445 12th Street, SW
Washington, DC 20554
USAC
Vice President, High Cost and Low Income Division
2000 L Street NW, Suite 200
Washington, DC 20036
Re:
CC Docket No. 96-45/WC Docket No. 10-90, Annual State-Certification of Support
for Eligible Telecommunications Carriers Pursuant to 47 C.F.R. § 54.314
Dear Ms. Dortch:
Pursuant to the requirements of
47 C.F.R. § 54.314, the Florida Public
Service Commission hereby certifies to the Federal Communications
Commission and the Universal Service Administrative Company that the
telecommunications carriers included in this letter are eligible to receive
federal high-cost support for the program years cited.
The Florida Public Service Commission certifies for the carriers
listed below that all federal high-cost support provided to such carriers
within Florida was used
in the preceding calendar year (2015) and will be used in the coming
calendar year (2017) only for the provision, maintenance, and upgrading
of facilities and services for which the support is intended.
|
Company Name
|
Study Area Code
|
|
BellSouth Telecommunications, LLC d/b/a AT&T Florida
|
215191
|
|
Embarq Florida, Inc. d/b/a CenturyLink
|
210341
|
|
Frontier Communications of the South, LLC
|
210318
|
|
Frontier Florida LLC
|
210328
|
|
GTC, Inc. d/b/a FairPoint Communications
|
210291, 210329, 210339
|
|
ITS Telecommunications Systems, Inc.
|
210331
|
|
Knology of Florida, Inc. d/b/a WOW! Internet, Cable, and
Phone
|
219904
|
|
Northeast Florida Telephone Company d/b/a NEFCOM
|
210335
|
|
Quincy Telephone Company d/b/a TDS Telecom/Quincy
Telephone
|
210338
|
|
Smart City Telecommunications, LLC d/b/a Smart City
Telecom
|
210330
|
|
Windstream Florida, Inc.
|
210336
|
If you have any questions regarding this
certification, please contact Kiwanis L. Curry at (850) 413-6662, or Mark Long
at (850) 413-6101.
Sincerely,
Julie
I. Brown
Chairman
