Case Background
On October 22,
2024, Assurance Wireless USA, L.P. (Assurance or Company) filed a petition with
the Florida Public Service Commission (Commission or FPSC) requesting to expand
its eligible telecommunications carrier (ETC) service area statewide solely to
participate in the Lifeline program. Assurance (previously known as Virgin
Mobile USA, L.P.) was initially granted a Lifeline-only ETC designation on July
12, 2010, over specific Florida wire centers that served AT&T, Frontier
Florida (formerly Verizon), and CenturyLink. Beyond Assurance’s current request for
statewide ETC status, its petition indicates that it specifically seeks ETC
status in three wire centers that are in AT&T, Frontier Florida, and
CenturyLink territories, but which were not part of the list of wire centers
for which ETC designation was previously granted. Assurance is not seeking designation to
receive high-cost support from the Universal Service Fund.
T-Mobile USA,
Inc. (T-Mobile) acquired Assurance in 2020 as part of its purchase of Sprint
Corporation. Assurance is a commercial mobile radio service (CMRS) provider
that utilizes T-Mobile’s network to offer prepaid wireless telecommunications
services. As a result, Assurance does not resell other carriers services. As a CMRS provider, Assurance is regulated
as a common carrier pursuant to 47
U.S.C. § 153(11). Assurance is one of the largest Lifeline providers in the
country and has been designated as a wireless ETC in 45 other states (46
including Florida) and the District of Columbia. Assurance is also Florida's
largest Lifeline provider, serving 116,807 active subscribers as of June 2024.
On November 22,
2024, the Federal Communications Commission (FCC) ordered T-Mobile and
Assurance to continue to provide Lifeline service to former Q-LINK Lifeline
subscribers. T-Mobile was the underlying carrier used
by Q-LINK to provide Lifeline service. Q-LINK’s ETC status was revoked as a
result of fraud. The FCC’s action was taken nationwide in
order to ensure that customers would not lose service as a result of Q-LINK’s actions.
Assurance has indicated that there are nine affected customers in the wire
centers for which it now seeks ETC designation. Assurance is currently
providing Lifeline services to the nine affected customers, but will be unable
to receive reimbursements from Universal Service Administrative Company until its
amended ETC petition is approved.
Assurance
asserts that it meets all applicable federal requirements for a statewide
designation as a Lifeline-only ETC in Florida pursuant to 47 U.S.C. § 214(e)
and 47 C.F.R. § 54.201. Additionally, Assurance acknowledges and asserts its
commitment to comply with Section 364.10 and 364.105, Florida Statutes (F.S.).
Furthermore, Assurance acknowledges and asserts compliance with Rule 25-4.0665,
Florida Administrative Code (F.A.C.), which governs the Lifeline service. This
includes requirements such as providing a transitional discount for customers
who no longer qualify for the Lifeline program and ensuring participation in
the Lifeline Promotion Process.
The Commission is vested with jurisdiction
in this matter pursuant to Section 214(e)(2) of the Telecommunications Act of
1996 (the Act) and Section 364.10, F.S.
Discussion
of Issues
Issue 1:
Should Assurance be granted a statewide ETC
designation to provide Lifeline service in the area depicted in Attachment A?
Recommendation:
Yes. Assurance should be granted a statewide ETC designation to provide
Lifeline service in the area depicted in Attachment A. 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, Fogleman)
Staff Analysis:
In Assurance’s petition for
statewide ETC designation, it specifically identified three wire centers for
which it requests ETC designation. Staff notes that granting the requested
statewide ETC designation will satisfy Assurance's request. A
statewide ETC designation is necessary for telecommunications companies to
participate in the federal Lifeline program throughout the State of Florida.
Section 364.10, F.S., allows the Commission to approve the wireless Lifeline
ETC petitions of requesting carriers. Specifically, Section 364.10(1)(a) and
(3)(a), F.S., provide that the Commission has the authority to grant ETC
designation to a CMRS provider 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.
Assurance asserts it will comply with all federal and state
requirements governing ETCs. Assurance further asserts it offers all the
supported services listed under Section 254(c) of the Act through the use of
its own facilities. The company notes its facilities may change over time.
Financial,
Managerial, and Technical Capabilities
Assurance asserts it has the financial, technical, and
managerial backing of T-Mobile, the second largest wireless carrier in the
United States. As shown in Attachment A, Assurance offers statewide wireless T-Mobile
coverage capable of providing Lifeline services throughout the entirety of
Florida. As a current ETC in Florida, Assurance is in good standing with the
Commission, and consistently responds to Staff’s annual data requests.
Assurance is also an ETC in 45 other states, as well as the District of
Columbia, and has never been subject to any ETC revocation proceedings.
Based on these factors, Assurance has demonstrated the financial, managerial,
and technical qualifications necessary to provide statewide Lifeline services.
Public Interest
State commissions are required to find that ETC
designation serves the public interest. Assurance
offers its Lifeline subscribers 1,000 minutes and 4.5 GB of data a month at no
cost to the consumer. Additionally,
annual data collected by Staff has indicated that Assurance is Florida’s most
selected Lifeline provider. Over the past five years, Assurance has
consistently accounted for more than half of Florida's Lifeline market, with June
2024 Lifeline data indicating that Assurance served 55 percent of all Lifeline
subscribers in the state.
Assurance asserts in its petition that if granted a statewide ETC designation,
substantially more low-income consumers will have the choice of selecting
Assurance as a Lifeline provider. As noted in the Case Background, Assurance is
providing Lifeline discounts to nine households outside of its current ETC
designated area. As a result, it cannot receive reimbursements for these
households from Universal Service Administrative Company. Granting
Assurance its requested statewide ETC designation will ensure that all affected
customers will continue to receive Lifeline services. For these reasons, Staff
finds that granting Assurance a statewide ETC designation is in the public
interest.
Conclusion
Staff has reviewed Assurance’s petition and determined
that the company meets all requirements to expand its service area and receive
the requested statewide ETC designation. Additionally, Assurance asserts it
will comply with all federal and state requirements governing ETCs. Staff believes
that granting Assurance a statewide ETC designation serves the public interest.
Furthermore, Assurance has demonstrated sufficient financial, managerial, and
technical capabilities. Therefore, staff recommends Assurance should be granted
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. (Augspurger)
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.
