Case Background
On August 4,
2026, Frontier Communications of the South, LLC (Frontier or Company) filed a
petition with the Florida Public Service Commission (Commission) for
relinquishment of its Eligible Telecommunications Carrier (ETC) designation for
its service areas in Florida, effective November 1, 2026. Frontier is an
incumbent local exchange carrier (ILEC) in Florida. On October 14, 1997, the
Commission designated Frontier as an ETC in its ILEC service territory pursuant
to 47 U.S.C. 214 (e)(2) and Section 364.10(2), Florida Statutes (F.S.) (1997).[1] An ETC designation is a requirement for
telecommunications carriers to receive funding support from the federal
Universal Service Fund for the Lifeline and High-Cost programs. The Lifeline
program enables low-income households to obtain and maintain basic telephone
and broadband services by offering qualifying households a discount on monthly
bills. The High-Cost program helps carriers provide voice and broadband service
in remote and underserved communities.
Frontier is
relinquishing its ETC designation because the underlying purpose of the
designation - to enable the receipt of high-cost universal service support - no
longer exists for Frontier. Frontier has not received any high-cost universal
service support since December 2021, when the FCC’s Connect America Fund (CAF)
program ended and was replaced by the Rural Digital Opportunity Fund (RDOF). In
the 2020 RDOF auction, the FCC awarded all high-cost support for RDOF-eligible
census blocks in Frontier Communications of the South’s service area to other
providers.
Additionally,
there has been a significant decline in the number of Frontier Lifeline customers.
Frontier Communications of the South currently has only four Lifeline
customers. Consistent with the national trend, the vast majority of
Lifeline-supported households in Florida have chosen to obtain Lifeline service
from one of the many mobile wireless ETCs that have been designated by the Commission
or the FCC.
The Commission
is vested with jurisdiction in this matter, pursuant to Section 364.10, Florida
Statutes, 47 U.S.C. §214(e)(4), and 47 C.F.R. §54.205.
Discussion
of Issues
Issue 1:
Should the Commission approve Frontier's request for
relinquishment of its ETC designation?
Recommendation:
Yes. The Commission should approve Frontier’s
request to relinquish its ETC designation. (Mallow, Fogleman, Hixon)
Staff Analysis:
An ETC may relinquish its ETC designation pursuant
to 47 C.F.R. §54.205(a), which provides that:
A state commission shall permit
an eligible telecommunications carrier to relinquish its designation as such a
carrier in any area served by more than one eligible telecommunications
carrier. An eligible telecommunications carrier that seeks to relinquish its
eligible telecommunications carrier designation for an area served by more than
one eligible telecommunications carrier shall give advance notice to the state
commission of such relinquishment.
In approving a relinquishment, state commissions must
require the remaining ETCs to ensure that existing customers will continue to
be served. 47 C.F.R. §54.205(b), provides that:
Prior to permitting a telecommunications carrier
designated as an eligible telecommunications carrier to cease providing
universal service in an area served by more than one eligible
telecommunications carrier, the state commission shall require the remaining
eligible telecommunications carrier or carriers to ensure that all customers
served by the relinquishing carrier will continue to be served, and shall
require sufficient notice to permit the purchase or construction of adequate facilities
by any remaining eligible telecommunications carrier. The state commission
shall establish a time, not to exceed one year after the state commission
approves such relinquishment under this section, within which such purchase or
construction shall be completed.
Frontier identified in its petition all of the designated
ETCs currently serving its service territory. Staff sent a data request to each
ETC in Frontier’s service area to verify the ETC designation of the company and
to confirm it is providing service in the wire centers identified by Frontier.
Staff compared the responses to ensure that customers in the relinquished area
would continue to have Lifeline service available. Staff has confirmed that customers
in Frontier’s service territory will continue to have Lifeline service
available from one or more ETCs (Attachment A).
Frontier Communications of the South currently has just
four Lifeline customers. The small number of remaining Lifeline customers will
be able to obtain Lifeline service from one of the many other ETCs operating in
Frontier’s service area, or they may instead elect to continue obtaining
service from Frontier at standard rates, terms, and conditions. If a current
Lifeline customer elects to continue obtaining service from Frontier, Frontier
will remove the Lifeline discount as of the relinquishment effective date.
After the Commission issues an order confirming
relinquishment, Frontier will notify its remaining Lifeline customers that they
must select another ETC in order to continue receiving a Lifeline discount
after the relinquishment effective date. Frontier will use the same notice
timeline that the Commission approved in the 2017 and 2021 AT&T Florida
relinquishment orders. Specifically, at least 60 days prior to the
relinquishment date, Frontier will notify any remaining Lifeline customers by
mail that (1) Frontier will no longer offer the federal Lifeline discount; and
(2) if the customer does not choose another provider, Frontier will continue to
provide service at Frontier’s standard prices (including applicable surcharges,
fees and taxes) after the effective date of the relinquishment. Frontier will
also send each remaining affected Lifeline customer a second notice letter at
least 15 days prior to the relinquishment date. All notices will explain that
Lifeline customers can obtain a list of other ETCs from the Universal Service Administrative
Company (USAC), and that they may contact those other ETCs to discuss available
Lifeline benefits. Accordingly, staff recommends that the Commission approve
Frontier’s petition for relinquishment of its 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 order, this docket should be closed upon the issuance of a
consummating order. (Hixon)
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.
