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.[2] 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.[3]
Certification will 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 2022, certification must be submitted
by the Commission by October 1, 2021.[4]
Discussion
of Issues
Issue 1:
Should the Commission certify to USAC and 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 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, 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
were used, and funds 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 and projected changes in support, staff estimates
that the amount of 2022 high-cost support that these carriers may receive in
Florida will be approximately $15 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 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. (Trierweiler, Jones)
Staff Analysis:
·
This docket should be closed upon issuance
of a Final Order.
