Case Background
On May 19, 2024, TEMPO TELECOM, LLC (TEMPO
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 to provide Lifeline service to qualifying consumers
throughout Florida. TEMPO is a provider of commercial mobile radio service
(CMRS) and provides prepaid wireless telecommunications services to consumers
by using the underlying wireless network of T-Mobile USA, Inc (T-Mobile). TEMPO
is currently designated as an ETC providing Lifeline service in 30 other
states.
As a CMRS
provider, TEMPO is regulated as a common carrier pursuant to 47 U.S.C. § 153(11). TEMPO
is a Georgia limited liability company and a wholly-owned subsidiary of Lingo Management,
LLC (Lingo Management). On January 24, 2023, Lingo Management agreed that,
subject to regulatory approval, Lingo Management will transfer 100 percent of
the outstanding membership interests in TEMPO to Insight Mobile, Inc (Insight
Mobile). Insight Mobile is a Delaware corporation that is not currently
providing telecommunications services, and is wholly-owned by Mr. Shadi
Aslemand. TEMPO currently has an updated compliance plan pending with the FCC
that reflects the aforementioned transaction.
TEMPO
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.
TEMPO acknowledges and asserts that, if approved, it will comply with Section
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 TEMPO be granted an ETC designation to
provide Lifeline service throughout the state of Florida?
Recommendation:
Yes. TEMPO 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. (Day, Deas, Mallow, 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
TEMPO plans to offer all of the supported services
enumerated under Section 254(c) of the Act through its wireless resale
agreement with T-Mobile. Therefore, it sought forbearance of the facilities
requirement from the FCC. On May 25, 2012, the FCC approved TEMPO’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 TEMPO committed to do the
following:
1)
Provide the supported services throughout the carrier’s
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 TEMPO 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, TEMPO is eligible
for designation as a Lifeline only ETC in Florida.
Financial,
Managerial, and Technical Capabilities
As noted in its petition, TEMPO has offered service since
2012 and has not filed for any form of bankruptcy relief. The company has
operated as an ETC in 30 states and has not been subject to any ETC revocation
proceedings. The company has over 10 years of technical and managerial
experience, and it does not rely exclusively on Lifeline reimbursements for its
operating revenues. As TEMPO will be providing resold wireless service, it will
also rely upon the managerial and technical expertise of its underlying
carriers. Additionally, on April 28, 2023, TEMPO asserted to the FCC in an
updated compliance plan filing that it has not been subject to an abnormal number
of FCC enforcement proceedings within the last ten years, and such proceedings
generally have focused on missed/late filings.
Public Interest
State commissions are required to find that ETC
designation is in the public interest.
TEMPO 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 TEMPO’s petition for ETC designation in
Florida. TEMPO meets all the requirements for designation as an ETC.
Additionally, the company has demonstrated sufficient financial, managerial,
and technical capabilities. Therefore, staff recommends TEMPO 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. (Sparks)
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.
