Case Background
On April 16,
2024, FLORIDA TERRACOM INC. d/b/a MAXSIP TEL (TERRACOM or Company) filed a
petition with the Florida Public Service Commission (FPSC or Commission)
seeking designation as an eligible telecommunications carrier (ETC) for the
sole purpose of providing Lifeline service to qualifying consumers throughout
Florida. TERRACOM is a provider of commercial mobile radio service (CMRS) and offers
prepaid wireless telecommunications services to consumers as a reseller.
Specifically, TERRACOM uses the network infrastructure and wireless
transmission facilities of T-Mobile USA, Inc. (T-Mobile) and AT&T Mobility
(AT&T) to operate as a Mobile Virtual Network Operator. TERRACOM is
currently designated as an ETC providing Lifeline service in 37 other states.
As
a CMRS provider, TERRACOM is regulated as a common carrier pursuant to 47
U.S.C. § 153(11). TERRACOM is an Oklahoma corporation which
is owned 51 percent by Global Reconnect, LLC, a Delaware limited liability
company; and 49 percent by MAXSIP TEL LLC, a New York limited liability
company. Pursuant to the terms of an outstanding stock purchase agreement,
MAXSIP will purchase 100 percent of the common stock of TERRACOM upon required
regulatory approvals.
TERRACOM
asserts that 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.
TERRACOM 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 a 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 TERRACOM be granted an ETC designation to
provide Lifeline service throughout the State of Florida?
Recommendation:
Yes. TERRACOM 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. (Mallow, Day,
Deas, 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 commercial mobile radio
service 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
ETCs to:
1)
Offer a discounted transitional basic
telecommunications service;
and
2)
Participate in the Lifeline Promotion Process.
Forbearance of Facilities Requirements
TERRACOM 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 AT&T. Therefore, it sought forbearance of the
facilities requirement from the Federal Communications Commission (FCC). On
December 26, 2012, the FCC approved TERRACOM’s compliance plan as a condition
of obtaining forbearance from the facilities requirement for the provision of
Lifeline service. As part of its compliance plan TARRACOM 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 TERRACOM 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, TERRACOM is eligible for
designation as a Lifeline only ETC in Florida.
Financial,
Managerial, and Technical Capabilities
As noted in its petition, TERRACOM has offered service
since 2004 and has not filed for any form of bankruptcy relief. The Company has
operated as an ETC in 37 states and has not been subject to any ETC revocation
proceedings. The Company has over 20 years of technical and managerial
experience, and it does not rely exclusively on Lifeline reimbursements for its
operating revenues. As TERRACOM will be providing resold wireless service, it
will also rely upon the managerial and technical expertise of its underlying
carriers. TERRACOM resolved all FCC enforcement proceedings in 2015.
Public Interest
State commissions are required to find that ETC
designation is in the public interest.
TERRACOM 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 TERRACOM’s petition for ETC designation
in Florida. TERRACOM meets all the requirements for designation as an ETC.
Additionally, the Company has demonstrated sufficient financial, managerial,
and technical capabilities. Therefore, staff recommends TERRACOM should be
granted an ETC designation throughout the State of Florida as 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. (Marquez)
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.
