Case Background
One of the primary principles of universal service support as
described in the Telecommunications Act of 1996 (Telecom Act) is for consumers
in all regions to have reasonably comparable access to telecommunications and
information services at reasonably comparable rates.[1] The federal universal service high-cost
program is designed to help 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 supports the goal of universal
service by allowing eligible telecommunications carriers (ETCs) to recover some
of the costs of service provision in high-cost areas from the federal Universal
Service Fund. In order for carriers to receive universal service high-cost
support, state commissions must certify annually to the Universal Service
Administrative Company (USAC) and to the Federal Communications Commission (FCC)
that each carrier complies with the requirements of Section 254(e) of the
Telecom Act by using high-cost support “only for the provision, maintenance,
and upgrading of facilities and services for which the support is intended.”
Certification
of ETCs for high-cost support is defined 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 [USAC]
and the Commission [FCC] 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.
Certification
may be filed online with USAC through USAC’s online portal. Immediately
following online certification, the USAC website will automatically generate a
letter that may be submitted electronically to the FCC to satisfy the
submission requirements of 47 C.F.R. §54.314(c). In order for a carrier to be
eligible for high-cost universal service support for all of calendar year 2020,
certification must be submitted by the Commission by October 1, 2019.[4]
Discussion
of Issues
Issue 1:
Should the Commission certify to USAC and the FCC, through
online certification with USAC and by electronic filing of a USAC-generated
certification letter with the FCC, that BellSouth Telecommunications, LLC d/b/a
AT&T Florida d/b/a AT&T Southeast; Embarq Florida, Inc. d/b/a
CenturyLink; Frontier Florida LLC; Frontier Communications of the South, LLC; Consolidated
Communications of Florida Company; ITS Telecommunications Systems, Inc. d/b/a ITS Fiber; Knology of Florida, Inc. d/b/a WOW!
Internet, Cable and Phone; Northeast Florida Telephone Company d/b/a NEFCOM;
Quincy Telephone Company d/b/a TDS Telecom; Smart City Telecommunications LLC
d/b/a Smart City Telecom; and Windstream Florida, LLC are eligible to receive
federal high-cost support, that they have used the federal high-cost support in
the preceding calendar year, and they 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. The
Commission should certify to USAC and the FCC, through online certification
with USAC and by electronic filing of a USAC-generated certification letter
with the FCC, that BellSouth Telecommunications, LLC d/b/a AT&T Florida
d/b/a AT&T Southeast; Embarq Florida, Inc. d/b/a CenturyLink; Frontier
Florida LLC; Frontier Communications of the South, LLC; Consolidated
Communications of Florida Company; ITS Telecommunications Systems, Inc. d/b/a ITS Fiber; Knology of Florida, Inc. d/b/a WOW!
Internet, Cable and Phone; Northeast Florida Telephone Company d/b/a NEFCOM;
Quincy Telephone Company d/b/a TDS Telecom; Smart City Telecommunications LLC
d/b/a Smart City Telecom; and Windstream Florida, LLC are eligible to receive
federal high-cost support, that they have used the federal high-cost support in
the preceding calendar year, and they 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.
(Wooten, Bates, Eastmond, Long)
Staff Analysis: All Florida ETCs
that are seeking high-cost support have filed affidavits with the Florida
Public Service Commission (Commission) attesting that the high-cost funds
received for the preceding calendar year and for the upcoming calendar year will
be used only for the provision, maintenance, and upgrading of facilities and
services for which the support is intended. Additionally, each company has
filed FCC Form 481 with USAC. Form 481 includes information such as emergency operation
capability, FCC pricing standards comparability for voice and broadband
service, holding company and affiliate brand details, and tribal lands service
and outreach. Price cap carriers certify in Form 481 that high-cost support received
was used to build and operate broadband-capable networks used to offer the
provider's own retail broadband service in areas substantially unserved by an
unsubsidized competitor. Rate-of-return carriers certify in Form 481 that reasonable
steps are being made to achieve FCC broadband upload and download standards
and, if privately held, submit documents detailing the company's financial
condition. Based on previous years’ data, staff estimates that the amount of
2020 high-cost support that these carriers may receive in Florida will be
approximately $45 million.[5]
Staff reviewed the affidavits and submissions made by each
carrier to the Commission and to USAC.
Each of the Florida ETCs receiving high-cost support has attested that
all federal high-cost support provided to them within Florida 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.
Having
reviewed the carriers’ filings, staff recommends that the Commission certify to
USAC and the FCC, through online certification with USAC and by electronic
filing of a USAC-generated certification letter with the FCC, that BellSouth
Telecommunications, LLC d/b/a AT&T Florida d/b/a AT&T Southeast; Embarq
Florida, Inc. d/b/a CenturyLink; Frontier Florida LLC; Frontier Communications
of the South, LLC; Consolidated Communications of Florida Company; ITS
Telecommunications Systems, Inc. d/b/a ITS Fiber; Knology of Florida, Inc.
d/b/a WOW! Internet, Cable and Phone; Northeast Florida Telephone Company d/b/a
NEFCOM; Quincy Telephone Company d/b/a TDS Telecom; Smart City
Telecommunications LLC d/b/a Smart City Telecom; and Windstream Florida, LLC
are eligible to receive federal high-cost support, that they have used the
federal high-cost support received in the preceding calendar year, and that
they 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 this docket be closed?
Recommendation:
Yes. This docket should be closed upon issuance of a
Final Order. (Dziechciarz)
Staff Analysis:
·
This docket should be closed upon issuance
of a Final Order.
