Idaho Public Utilities Commission
Case No. ALL-T-10-01, Order No. 32209
April 4, 2011
Contact: Gene Fadness (208)
334-0339, 890-2712
Website: www.puc.idaho.gov
Wireless company qualifies for
high-cost support in rural Idaho
State regulators have granted a
request by Allied Wireless Communications Corporation, doing business in Idaho
as Alltel Wireless, to be declared eligible to receive federal funds to expand
its wireless network to serve several rural areas of Idaho.
The Idaho Public Utilities
Commission ruled that Alltel qualifies as an “eligible telecommunications
carrier” (ETC). The designation means the wireless carrier is now eligible to
receive support from the federal Universal Service Fund (USF). The USF was created by Congress to ensure that telephone consumers in rural
areas – where it costs more to build a telephone network – can have
access to the same telecommunications services as consumers in urban areas at
roughly the same cost. All telephone companies providing interstate service
contribute to the USF. The companies pass that cost on to their customers who
pay a portion of their bill each month to support the Universal Service Fund.
Competitive wireless companies now
receive the same federal support as wireline companies if state commissions find
that ETC designation promotes competition and is in the public interest. Edge
Wireless became the first cellular phone company in Idaho to qualify for ETC
designation in 2007.
Alltel will provide service to 20
rural wire centers now served by five incumbent telephone companies. (A wire
center is a geographic area served by a central office switch, which provides
dial tone and dialing functions.) The
wire centers are in areas now served by Cambridge Telephone Company (Cambridge,
Council, Cuprum, Lowman and Indian Valley), CenturyTel of Idaho (Leadore, North
Fork and Salmon), Custer Telephone Cooperative (Challis, Clayton, Elk Bend and
May) Famers Mutual Telephone Co. (Fruitland and Nu Acres) and Midvale Telephone
Exchange (Lakeview, Midvale, Warm Lake, Warren and Yellow Pine).
Alltel cited five public interest
benefits in its application including: 1) higher speed service, 2) potential
solution to health and safety risks by not having to travel long distances to
find a telephone (its customers will have access to E 911 dispatch); 3)
negligible impact on the overall Universal Service Fund; 4) the benefit of
increased competition and economic development in rural areas and 5) no
possibility for “cream skimming,” or serving only those customers within an
exchange’s lower cost areas and not building the network out to also take in
customers in more remote, high-cost areas. Alltel maintains it will serve the entire wire
center in all its areas, not just the lower-cost areas.
The commission said ETC
designation is in the public interest because Alltel had demonstrated it is
capable of providing the services described in its application, has a viable
network plan to provide service throughout the areas, has a local use plan that
is similar to the companies already serving the area and is able to remain
functional during emergencies.
A
full text of the commission’s order, along with other documents related to this
case, is available on the commission’s Web site at www.puc.idaho.gov. Click on “File Room”
and then on “Telecom Cases” and scroll down to case number ALL-T-10-01.
Interested parties may petition the
commission for reconsideration by no later than April 12. Petitions for
reconsideration must set forth specifically why the petitioner contends that
the order is unreasonable, unlawful or erroneous. Petitions should include a
statement of the nature and quantity of evidence the petitioner will offer if
reconsideration is granted.
Petitions can be delivered to the
commission at 472 W. Washington St. in Boise, mailed to P.O. Box 83720, Boise,
ID, 83720-0074, or faxed to 208-334-3762.