Case Background
On June 10,
2024, Amerimex Communications Corp. d/b/a SafetyNet Wireless (Amerimex or
Company) filed a petition with the Florida Public Service Commission
(Commission or FPSC) seeking designation as an eligible telecommunications
carrier (ETC) for the sole purpose of providing Lifeline service to qualifying
consumers throughout Florida. Amerimex is a provider of commercial mobile radio
service (CMRS) and offers prepaid wireless telecommunications services to
consumers as a reseller. Specifically, Amerimex uses the network infrastructure
and wireless transmission facilities of T-Mobile USA, Inc. (T-Mobile) and
AT&T Mobility, LLC (AT&T) to operate as a Mobile Virtual Network
Operator. Amerimex is currently designated as an ETC providing Lifeline service
in 17 other states.
As
a CMRS provider, Amerimex is regulated as a common carrier pursuant to 47 U.S.C. § 153(11). Amerimex
is a Georgia corporation that has authority to conduct business in Florida. Amerimex
does not have a parent company or subsidiaries.
Amerimex
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. Amerimex 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 Amerimex be granted ETC designation to
provide Lifeline service throughout the state of Florida?
Recommendation:
Yes. Amerimex should be granted 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,
Fogleman, Mallow)
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 Lifeline ETC petitions filed
by requesting carriers. Specifically, Sections 364.10(3)(a) and (b), F.S., provide
that the Commission has 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.[5]
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;[6]
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;[7] and
2)
Participate in the Lifeline Promotion Process.[8]
Forbearance
of Facilities Requirements
Amerimex
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 FCC. On
December 26, 2012, the FCC approved Amerimex’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 Amerimex committed to do the
following:[9]
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 Amerimex
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, Amerimex is eligible for designation as a Lifeline only
ETC in Florida.
Financial, Managerial, and Technical
Capabilities
As noted in
its petition, Amerimex has offered service since 1998 and has not filed for any
form of bankruptcy relief. The company has operated as an ETC in 17 states and
has not been subject to ETC revocation proceedings in any state except for
Wisconsin, which was reinstated.[10] 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 Amerimex
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.[11] Amerimex
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.[12] The
FPSC’s estimated Lifeline participation rate in Florida for the last two years
has hovered around 18 percent of eligible households.[13]
Staff believes an increase in carriers servicing this market may increase
participation through additional marketing and would serve the public interest.
Conclusion
Staff has reviewed Amerimex’s
petition for ETC designation in Florida. Amerimex meets all the requirements
for designation as an ETC. Additionally, the company has demonstrated
sufficient financial, managerial, and technical capabilities. Therefore, staff
recommends Amerimex 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.
(Farooqi)
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.
