Case Background
On April 16,
2024, TruConnect Communications, Inc. (TruConnect or Company) filed a petition
with the Florida Public Service Commission (FPSC or Commission) seeking
designation as an eligible telecommunications carrier (ETC) in the State of
Florida. TruConnect’s request for ETC designation is specifically for the sole purpose
of providing Lifeline services to qualifying consumers throughout Florida.
TruConnect is a provider of commercial mobile radio service (CMRS) and offers
prepaid wireless telecommunications services to consumers as a reseller.
Specifically, TruConnect uses the network infrastructure and wireless
transmission facilities of T-Mobile USA, Inc. (T-Mobile) and Verizon Wireless (Verizon)
to operate as a Mobile Virtual Network Operator. TruConnect is currently
designated as an ETC providing Lifeline service in 11 other states.
As
a CMRS provider, TruConnect is regulated as a common carrier pursuant to 47
U.S.C. § 153(11). TruConnect is a Delaware corporation
authorized to do business as a foreign corporation in the state of Florida. Formerly
known as Telscape Communications, Inc., TruConnect is a subsidiary of TSC
Acquisition Corporation.
TruConnect
asserts it meets all applicable federal requirements for designation as a
Lifeline only ETC in Florida pursuant to 47 U.S.C. § 214(e) and 47 C.F.R. § 54.201.
TruConnect acknowledges and asserts that, if approved it will comply with Sections
364.10 and 364.105, Florida Statutes (F.S.), and Rule 25-4.0665 Florida Administrative Code
(F.A.C.), which govern Lifeline service and provide for transitional discount
for customers who no longer qualify for Lifeline. In addition to the federal
rules and statutes discussed above, the Commission has jurisdiction in this
matter pursuant to Section 364.10, F.S.
Section
214(e)(2) of the Telecommunications Act of 1996 (the Act) provides state public
utility commissions with “primary responsibility” for the designation of ETCs. The
Commission initially exercised this authority to designate both wireline and
wireless carriers as ETCs. In 2011, the Florida Legislature removed the FPSC
authority to designate wireless ETC providers. However, the Florida Legislature amended
Section 364.10, F.S., in 2024 to specifically grant the Commission jurisdiction
to address wireless ETC petitions for Lifeline purposes only.
Discussion
of Issues
Issue 1:
Should TruConnect be granted an ETC designation to
provide Lifeline service throughout the state of Florida?
Recommendation:
Yes. TruConnect should be granted an ETC designation
to provide Lifeline service throughout the State of Florida. Staff also
recommends that if there is a future change of Company ownership, the new
owners should be required to file a petition with the Commission to demonstrate
that it is in the public interest to maintain the Company’s ETC designation. (Deas,
Mallow, Day, Fogleman)
Staff Analysis:
ETC designation is necessary for telecommunications
companies to participate in the federal lifeline program.
Section 364.10, F.S. allows the Commission to approve wireless Lifeline ETC
petitions for requesting carriers. Specifically, paragraphs 364.10(1)(a) and
(3)(a) F.S., provide the Commission with the authority to designate a CMRS
provider as an ETC for the limited purpose of providing Lifeline service.
Federal rules outline the requirements for ETC designation. To
obtain ETC designation to provide Lifeline services, federal rules require that
carriers:
1)
Be a common carrier;
2)
Offer the services that are supported by the federal
universal support mechanisms either using its own facilities or a combination
of its own facilities and resale of another carrier’s services;
3)
Advertise the availability of its Lifeline service
through a media of general distribution;
4)
Provide voice grade access to the public switch network
or its functional equivalent;
5)
Offer minutes of use for local service at no additional
charge to end users;
6)
Provide access to the emergency services available by
local government or other public safety organizations;
7)
Provide Broadband Internet Access Service;
8)
Demonstrate financial and technical capability to
provide Lifeline service; and
9)
Not charge Lifeline customers a monthly
number-portability charge.
In addition, Florida law
requires the following for ETC designation:
1)
Offer discounted transitional basic telecommunications
service.
2)
Participate in the Lifeline Promotion Process.
Forbearance of Facilities Requirements
TruConnect plans to offer all of
the supported services enumerated under Section 254(c) of the Act through its
wireless resale agreements with T-Mobile and Verizon. Therefore, it sought
forbearance of the facilities requirement from the FCC. On December 26, 2012,
the FCC approved TruConnect’s compliance plan which is a condition for obtaining
forbearance from the facilities requirement for the provision of Lifeline
service. As part of its compliance plan TruConnect committed to do the
following:
1)
Provide the supported services throughout the carriers’
designated areas;
2)
Remain functional in emergency situations;
3)
Comply with the Cellular Telecommunications and
Internet Association's Consumer Code for Wireless Service;
4)
Demonstrate that it is financially and technically
capable of providing the Lifeline service in compliance with federal rules; and
5)
Describe the terms and conditions of the broadband
Internet access service plans offered to Lifeline subscribers.
Because TruConnect will offer the supported services and
is compliant with the FCC requirements pursuant to 47 U.S.C. 214(e) and 47 C.F.R.
54.201, as well as the Florida specific requirements, TruConnect is eligible
for designation as a Lifeline only ETC in Florida.
Financial,
Managerial, and Technical Capabilities
As noted in its petition, TruConnect has offered service
since 1996 and has not filed for any form of bankruptcy relief. The Company has
operated as an ETC in 11 states and has not been subject to any ETC revocation
proceedings. The Company has over 25 years of technical and managerial
experience, and it does not rely exclusively on Lifeline reimbursements for its
operating revenues. As TruConnect will be providing resold wireless service, it
will also rely upon the managerial and technical expertise of its underlying
carriers.
Public Interest
State commissions are required to find that ETC
designation is in the public interest.
TruConnect asserts granting its ETC designation will bring Lifeline eligible
consumers more choice in providers without creating an additional burden on the
federal high-cost programs. In Florida, consumers are currently limited to
three wireless Lifeline providers. These three companies represent 98 percent
of the Lifeline market in Florida.
However, the FPSC’s estimated Lifeline participation rate for the last two
years has hovered around 18 percent.
The increase in carriers servicing this market may increase participation
through additional marketing and would serve the public interest.
Conclusion
Staff has reviewed TruConnect’s petition for ETC
designation in Florida. TruConnect meets the requirements for designation as an
ETC. Additionally, the Company has demonstrated sufficient financial,
managerial, and technical capabilities. Therefore, staff recommends TruConnect
should be granted an ETC designation in the service areas identified in Attachment
A of this recommendation. Staff further recommends that if there is a future
change of Company ownership, the new owners should be required to file a
petition with the Commission to demonstrate that it is in the public interest
to maintain the Company’s ETC designation.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no person whose substantial interests are
affected by the proposed agency action files a protest within 21 days of the
issuance of the Proposed Agency Action Order, this docket should be closed upon
the issuance of a consummating order. (Imig)
Staff Analysis:
At the conclusion of the protest period, if no
protest is filed, this docket should be closed upon the issuance of a
consummating order.
