NOTICES

PENNSYLVANIA PUBLIC
UTILITY COMMISSION

Petition of Tri-Co Connections, LLC for Designation as an Eligible Telecommunications Carrier in the Commonwealth of Pennsylvania

[49 Pa.B. 2074]
[Saturday, April 27, 2019]

Public Meeting held
April 11, 2019

Commissioners Present: Gladys M. Brown, Chairperson, statement follows; David W. Sweet, Vice Chairperson; Norman J. Kennard; Andrew G. Place; John F. Coleman, Jr.

Petition of Tri-Co Connections, LLC for Designation as
an Eligible Telecommunications Carrier in the Commonwealth of Pennsylvania; P-2018-3005127

Order

By the Commission:

 Before the Pennsylvania Public Utility Commission (Commission) for disposition is the Tri-Co Connections, LLC (Tri-Co or the Company) petition seeking approval to be designated a facilities-based Eligible Telecommunications Carrier (ETC) in the Commonwealth of Pennsylvania, pursuant to Section 214(e)(2) of the Communications Act of 1934, as amended (Petition). Designation as an ETC would make Tri-Co eligible to receive high-cost support from the Federal Universal Service Fund (USF) in any area for which it seeks such support. Specifically, Tri-Co, as one of the winning bidders in the Federal Communications Commission's (FCC) Connect America Fund (CAF) Phase II Auction 903 (Auction 903), is required to certify that it is an ETC in those eligible census block groups (CBGs) for which it had a winning bid to provide voice and broadband service to identified locations. Accordingly, in its Petition, Tri-Co is seeking high-cost designation as an ETC only in specific exchanges throughout the Commonwealth for which it was awarded funding in the CAF II Auction 903.¹

 Concomitantly, as a condition of receiving an ETC designation to receive high-cost support, Tri-Co must also participate in the federal Lifeline program and is required to offer Lifeline service to low-income eligible customers or households in specific areas in accordance with applicable federal and Pennsylvania law.

 Tri-Co filed supplements to its original Petition that set forth other additional pertinent information.² Notice of Tri-Co's Petition was published in the Pennsylvania Bulletin on October 20, 2018.³ No comments in response to Tri-Co's Petition were filed.

 We have reviewed Tri-Co's Petition, as supplemented, to determine whether it meets the statutory criteria and applicable minimum standards necessary under state and federal law to obtain an ETC designation. Designation as an ETC will permit Tri-Co to receive the high-cost support funds it was awarded in Auction 903 by the FCC, if certain other federal requirements are satisfied. We hereby conclude that it is in the public interest that Tri-Co be designated an ETC for purposes of deploying and maintaining voice and broadband service in the rural high-cost eligible census blocks where it will receive Auction 903 funding support.

 Additionally, as a federal high-cost ETC, Tri-Co is also required to participate in the federal Lifeline program and must offer Lifeline services to eligible low-income customers or households. Specifically, Tri-Co will be required to offer Lifeline services to eligible low-income customers or households, subject to the conditions stated by this Order and applicable reporting requirements and annual recertification requirements as they currently exist or may come to exist under federal and/or state law. Accordingly, Tri-Co's Petition is hereby approved under the applicable federal statutory criteria and other relevant federal and Pennsylvania law.

Background

A. FCC and State ETC Orders

 In its 1997 Universal Service Order, the FCC established minimum requirements necessary for a telecommunications carrier to be designated an ETC, and thus, eligible to receive federal universal service high-cost support from the federal USF.⁴ In 2005, pursuant to Section 214(e)(6) of the Communications Act of 1934, as amended (Act), 47 U.S.C. § 214(e)(6), and consistent with the recommendations of the Federal-State Joint Board on Universal Service (Joint Board), the FCC addressed these minimum requirements and adopted additional mandatory requirements for ETC designation proceedings.⁵ Additionally, as recommended by the Joint Board, the FCC encouraged states that exercise jurisdiction over ETC designations pursuant to Section 214(e)(2) of the Act, to adopt these same requirements when deciding whether they should designate a common carrier as an ETC.⁶ Accordingly, in order to provide consistent standards and to obtain the complete and necessary information necessary when reviewing future petitions for ETC designation and annual ETC recertifications, the Commission adopted the FCC's statutorily prescribed requirements for ETC designations and set forth additional Pennsylvania-specific standards as guidelines for all ETC applicants over which it exercises jurisdiction.⁷ The Commission codified these guidelines at 52 Pa. Code § 69.2501 (ETC Guidelines).

 In its 2011 USF/ICC Transformation Order, the FCC comprehensively reformed the federal USF mechanism to accelerate broadband build-out to the 18 million Americans living across the nation in rural areas who were receiving voice service but lacked access to robust broadband infrastructure and service.⁸ Specifically, the FCC concluded that it should adopt high-cost support for broadband-capable networks as an express universal service principle under Section 254(b) of the Act, 47 U.S.C. § 254(b).⁹ Additionally, for the first time, the FCC set specific performance goals for the high-cost component of the federal USF to ensure the reforms are achieving their intended purposes.¹⁰ Accordingly, the FCC revamped the purpose of the Universal Service High-Cost program of the federal USF to expand access to both voice and broadband services by supporting networks capable of providing those services and requiring certain support recipients to provide those services in geographic areas that were clearly unserved or underserved by unsubsidized service providers of broadband service.¹¹

 Concomitant with this repurposing of the six pre-existing programs in the federal USF High-Cost Fund that supported voice service, there was also a renaming and repurposing of the High-Cost program and support to the Connect America Fund or CAF.¹² The CAF was rolled-out in different phases.¹³ Up through the CAF Phase II Auction 903, the FCC through the CAF provided funding to federal price cap incumbent local exchange carriers (ILECs) to support the cost of building new network infrastructure or performing network upgrades to continue to provide voice and, in addition, retail broadband access services in areas where it was lacking.

 In 2018, as a part of CAF Phase II, Part II, the FCC conducted Auction 903 to allocate Phase II support to a certain number of locations in eligible CBGs across the United States, including areas in Pennsylvania where the federal price cap ILEC had declined to receive the model-based high-cost support it had been previously offered by the FCC.¹⁴ Auction 903 ran from July 24, 2018 to August 21, 2018 and awarded up to $198 million annually for 10 years to all service providers that had committed to provide voice and fixed broadband services to specific locations in unserved high-cost areas, including areas in Pennsylvania.¹⁵ As a result of Auction 903, some homes and businesses would have voice as well as broadband Internet access service (BIAS) available with download speeds of at least 100 megabits per second (Mbps).¹⁶ Others would have voice and gigabit service available.¹⁷ And lastly, the remaining locations would have voice as well as at least 25 Mbps download service available, which is more than twice the 10 Mbps minimum standard initially established for support in the pre-Auction 903 Phase II CAF program.¹⁸

 Concomitantly, in order to continue the mission of assisting qualifying low-income Americans to get and stay connected in today's technological climate, while at the same time relieving some of the burden on the entities providing this service, the FCC also had begun restructuring the federal USF Lifeline program.¹⁹ In its 2012 Lifeline Reform Order, the FCC eliminated the previous system of tiered support and set an interim funding rate of $9.25 per month and per eligible subscriber or household effective May 1, 2012.²⁰ The FCC has issued three later Lifeline reform orders establishing a number of additional enhancements to the federal Lifeline Program, further connecting low-income Americans to voice services and, now, broadband.²¹

B. Tri-Co's Petition and Supplements

 On August 28, 2018, the FCC announced that Tri-Co had been awarded federal high-cost support funding in certain designated census blocks in Pennsylvania via the FCC's Auction 903.²² On September 27, 2018, Tri-Co filed its Petition requesting designation as a facilities-based federal high-cost ETC in the Commonwealth of Pennsylvania in certain local exchanges located within the service territories of seven ILECs.²³ The Commission subsequently engaged in detailed analysis of the Petition and supplemental information that was provided to ensure consistency with state and federal law.

 Tri-Co has been certificated by the Commission to provide competitive local exchange services to customers in the following ILEC service territories: Commonwealth Telephone Company d/b/a Frontier Communications Commonwealth Telephone Company (Frontier Commonwealth); Frontier Communications of Canton, LLC (Frontier Canton); Frontier Communications of Oswayo River, LLC (Frontier Oswayo); North Penn Telephone Company (North Penn); Windstream Pennsylvania, LLC (Windstream PA); Verizon North LLC (Verizon North); and Verizon Pennsylvania LLC (Verizon PA).²⁴

 However, at this time, by virtue of its Commission-approved CLEC tariff, Tri-Co is authorized to provide local exchange services and BIAS to customers only in certain local exchanges of these ILECs. Tri-Co has stated that its local exchange service areas in the ILECs' service territories will mirror their local exchange area boundaries as stated in their telephone tariffs.²⁵ Accordingly, Tri-Co will be providing local exchange services and, as an ETC, BIAS to customers in all or parts of the following local exchanges:

Tri-Co Local Exchanges in the ILEC Service Territories

Frontier Commonwealth	Frontier Canton	Frontier Oswayo	North Penn	Verizon North	Verizon Pennsylvania	Windstream PA
Blossburg	Canton	Millport	Bentley Creek	Elkland	Austin	Driftwood
Covington	Leroy	Shinglehouse	Roseville	Harrison Valley	Coudersport	Emporium
Liberty		Genesee	Millerton	Knoxville	Galeton	Hughesville
Mansfield				Sabinsville	Port Allegany
Middlebury Center				Trout Run	Renovo
Morris				Westfield	Roulette
Rome					Ulysses
Tioga
Troy
Ulster
Wellsboro

 In its Petition, Tri-Co states that these local exchanges encompass the electric service area of its affiliate Tri-County Rural Electric Cooperative (TCREC).²⁶ Tri-Co will use facilities that are company-owned to provide, among other things, residential and business voice services.²⁷ Tri-Co's facilities are fiber-based and include Optical Network Terminals (ONTs) at the customers' premises.²⁸ Tri-Co anticipates that messages will originate and terminate at the ONT in Time Division Multiplexing (TDM) or similar, non-Internet Protocol, formats.²⁹ As part of its voice service offerings, Tri-Co proposes to offer stand-alone basic local telephone service, which is a protected service in Tri-Co's proposed service territory.³⁰

 Tri-Co's Lifeline offering, if approved for ETC purposes, would be eligible for the federal $9.25 rate of support. Eligible Lifeline customers will have access to a variety of standard features, including voicemail, caller I.D., and call waiting services at the applicable tariff rates and charges. Furthermore, Tri-Co will offer number porting at no charge to its Lifeline customers.³¹ Tri-Co will also ensure uninterrupted access to 911/Enhanced 911 (E911) emergency services for its Lifeline customers. Tri-Co will bill its customers on a monthly basis and provide invoices through both paper and electronic formats. Tri-Co's Lifeline customers will be advised of the billing method prior to establishing Lifeline service with Tri-Co. Tri-Co will charge all of its customers, including Lifeline-eligible customers, an activation fee unless that fee, or others, are otherwise prohibited or limited by state or federal law.

 Tri-Co asserts that its policy for de-enrolling an account from Lifeline support for non-use is consistent with the FCC rules. If Tri-Co certifies that if it receives notification from the Universal Service Administrative Company (USAC), the administrator of universal service, that a subscriber is receiving Lifeline service from another ETC or if another member of the household is receiving Lifeline service, Tri-Co will de-enroll that subscriber in accordance with Section 54.405(e)(2) of the FCC's rules. Additionally, if Tri-Co has a reasonable basis to believe that a Lifeline subscriber is no longer eligible to receive Lifeline service, it will notify that subscriber of impending termination of service utilizing a combination of communication methods including calling the subscriber. The subscriber will then have 30 days to demonstrate appropriate eligibility for Lifeline service via the National Lifeline Accountability Database (NLAD) that it is eligible for Lifeline.³²

 Additionally, Tri-Co also certifies that it will de-enroll Lifeline customers for non-usage and failure to recertify in accordance with Sections 54.405(e)(3) and (4), respectively, of the FCC's rules. Furthermore, Tri-Co certifies that it will de-enroll subscribers who have not used their Lifeline service for a period of 30 days. Pursuant to procedures outlined in the FCC's rules, following 30 days of non-usage by a Lifeline subscriber, Tri-Co will send a notice to that subscriber stating that failure to use the service within the next 15 days will result in de-enrollment from Lifeline service.³³ However, where a carrier bills on a monthly basis and collects or makes a good faith effort to collect any money owed within a reasonable amount of time, the Lifeline service provider will not be subject to the non-usage requirements.

Discussion

 Section 254(e) of the Act provides that ''only an eligible telecommunications carrier designated under Section 214(e) shall be eligible to receive specific Federal universal service support.''³⁴ Section 214(e)(2) of the Act provides state commissions with the primary responsibility for performing ETC designations.³⁵ Thus, pursuant to Section 214(e)(2), each certificated telecommunications carrier seeking federal universal service high-cost support must file a petition with the state commission in order to be designated an ETC. In those instances where a state cannot or will not make the requisite ETC designation, the FCC makes the ETC designation.³⁶

 A federal high-cost ETC applicant must meet federal statutorily-prescribed requirements before we can approve its request for ETC designation. The FCC's rules governing ETC designations have evolved over time from the minimum requirements set forth in the Universal Service Order and the additional mandatory requirements for ETC designations adopted in the 2005 ETC Designation Order. Additionally, the Commission has adopted these federal requirements as a starting point for review of a request for ETC designation. We also have Pennsylvania-specific guidelines discussed below that a federal high-cost ETC petitioner must satisfy before we can approve its request for ETC designation in Pennsylvania. ETC Guidelines Order at 4.³⁷ As set forth below, Tri-Co satisfies all federal requirements, including the FCC's Universal Service Order, the 2005 ETC Designation Order, the USF/ICC Transformation Order, the Lifeline Reform Orders, and FCC regulations codifying the requirements of these Orders. Tri-Co also satisfies related Pennsylvania-specific requirements or guidelines.

I. Federal Requirements For Designation As A High-Cost ETC

 Pursuant to 47 U.S.C. § 214(e)(1), an ETC petition must contain the following: (1) a certification that the petitioner offers or intends to offer all services designated for support by the FCC pursuant to Section 254(c); (2) a certification that the petitioner offers or intends to offer the services supported by the federal universal service mechanisms throughout the designated service area ''either using its own facilities or a combination of its own facilities and resale of another carrier's services'' (including the services offered by another ETC); (3) a description of how the petitioner ''advertise[s] the availability of [supported] services and the charges therefore using media of general distribution''; and (4) a detailed description of the geographic service area for which it requests an ETC designation from the Commission.³⁸

 As the FCC set forth in its 2005 ETC Designation Order,³⁹ a telecommunications carrier must also satisfy these additional mandatory requirements for it to be designated an ETC and thus eligible to receive federal universal service support: (1) a commitment and ability to provide services, including providing service to all customers within its proposed service area; (2) how it will remain functional in emergency situations; (3) that it will satisfy consumer protection and service quality standards; (4) that it offers local usage comparable to that offered by the ILEC; and (5) an understanding that it may be required to provide equal access if all other ETCs in the designated service area relinquish their designations pursuant to 47 U.S.C. § 214(e)(4).⁴⁰ These requirements were codified in the FCC's rules and regulations.⁴¹ The FCC subsequently added an additional requirement concerning the Anti-Drug Abuse Act of 1988.⁴²

 In addition to meeting these statutory requirements, state commissions must also perform a ''public interest'' review before approving an ETC designation. Section 214(e)(2) of the Act states that, ''[u]pon request and consistent with the public interest, convenience, and necessity, the State commission may, in the case of an area served by a rural telephone company, and shall, in the case of all other areas, designate more than one common carrier as an eligible telecommunications carrier'' for a designated service area, so long as the requesting carrier meets the requirements of Section 214(e)(1). Section 214(e)(2) further states: ''[b]efore designating an additional eligible telecommunications carrier for an area served by a rural telephone company, the State commission shall find that the designation is in the public interest.'' Accordingly, this Commission reserves the right to review any designation and recertification on a case-by-case basis and grant or deny designation and recertification after considering the circumstances particular to each application.

 Thus, our review of Tri-Co's petition will be done consistent with the federal requirements that must be met in order for an applicant to receive designation as an ETC, as codified, which we have adopted and implemented in the Commonwealth as the minimum standards applicable to ETC designation.⁴³

A. The FCC's Rules Governing ETC Designations

1. 47 CFR § 54.101(a) and (b)

 The FCC defines supported service as qualifying voice service and the offering of qualifying broadband services.⁴⁴ Accordingly, all ETCs must therefore offer voice telephony as a standalone service throughout their designated service area and must offer voice telephony services at rates that are reasonably comparable to urban rates.⁴⁵

 All ETCs must offer qualifying voice service using their own facilities, at least in part.⁴⁶ The Commission has interpreted the term ''facilities,'' for purposes of Section 214(e) of the Act, to mean ''any physical components of the telecommunications network that are used in the transmission or routing of the services designated for support under section 254(c)(1).''⁴⁷ As explained by the FCC, ''a carrier need not offer universal service wholly over its own facilities in order to be designated an eligible carrier because the statute allows an eligible carrier to offer the supported services through a combination of its own facilities and resale.''⁴⁸ Facilities are the ETC's ''own'' if the ETC has exclusive right to use the facilities to provide the supported services⁴⁹ or when service is provided by any affiliate within the holding company structure.⁵⁰

 An ETC satisfies its obligation to ''offer'' qualifying services by being legally responsible for dealing with customer problems, providing quality of service guarantees, and meeting federal USF-related requirements.⁵¹ Accordingly, a broadband provider may satisfy its voice obligation by offering voice service through an affiliate or by offering a managed voice solution (including Voice-over-Internet Protocol or VoIP) through a third-party vendor but cannot simply rely on the availability of over-the-top voice options.⁵²

 Tri-Co attests that it will be providing all of the services and functionalities supported by the federal universal service program as set forth in Section 54.101(a) of the FCC's regulations throughout its designated service territory in the Commonwealth of Pennsylvania using at least a portion of its own facilities.⁵³

a. Voice Grade Access to the Public Switched Telephone Network

 Tri-Co will be a common carrier by virtue of its provision of voice service to customers. Tri-Co states that it will use ONTs that will allow for the transmission of voice signals using TDM or IP-enabled formats. Tri-Co anticipates that it will use TDM or similar, non-IP format for voice.⁵⁴ Because fiber to the premises (FTTP) technologies transmit voice and data over the same physical network, voice traffic is provisioned separately from the Internet traffic, which allows for the network operator to prioritize voice traffic over other types of traffic. Since light is not susceptible to electromagnetic interference like copper-based (e.g., DSL, cable modems, etc.) or wireless technologies, the FTTP deployments offer high signal-to-noise ratios and the lower possible error rates of any access technology. Additionally, Tri-Co will provide services for originating and terminating interstate calls to the public switched telephone network (PSTN), which is both an interstate and intrastate network.⁵⁵ Therefore, Tri-Co is a common carrier under 47 U.S.C. § 214(e)(1) for purposes of ETC designation.⁵⁶

b. Minutes of Use for Local Service

 As part of the voice grade access to the PSTN, an ETC must provide local calling services to its customers at no additional charge. Although the FCC did not set a minimum local usage requirement, in the Universal Service Order, it determined that ETCs should provide some minimum amount of local usage as part of their ''basic service'' package of supported services.⁵⁷ However, the FCC has determined that a carrier satisfies the local usage requirements by including a variety of local usage plans as part of a universal service offering. Tri-Co has stated that it will offer a variety of local usage plans.⁵⁸ Additionally, Tri-Co's proposed Lifeline offering, as described, also complies with the local usage requirements established by the FCC. This meets the local calling requirement of 47 CFR § 54.101. In addition to voice services, Tri-Co will provide Lifeline customers with access to a variety of other features at no cost, including voice mail, caller I.D., call waiting services and E911 capabilities.⁵⁹

c. Access to Emergency Services

 Tri-Co certifies that it will provide access to 911 and E911 emergency services for all of its customers throughout its entire service area.⁶⁰

d. Toll Limitation Services

 Under the language of Section 54.400, the FCC has defined three terms addressing the service provided by an ETC by which a subscriber may prevent toll charges from accumulating beyond a set point. Specifically, Subsection 54.400(b) of the FCC's regulations defines ''toll blocking'' as the service a subscriber may elect to not allow outgoing toll calls. Subsection (c) defines ''toll control service'' as the service a subscriber may elect to specify a set amount of toll usage allowed per month or per billing cycle. Subsection (d) defines ''toll limitation service'' as a generic term covering either toll blocking or toll control service for ETCs that are incapable of providing both or covering both where an ETC is capable of providing both.

 As described in its Petition, Tri-Co understands that pursuant to Section 54.401(a)(2), toll limitation service does not need to be offered for any Lifeline service that does not distinguish between toll and non-toll calls in the pricing of the service. If an ETC charges Lifeline subscribers a fee for toll calls that is in addition to the per month or per billing cycle price of the subscribers' Lifeline service, the carrier must offer toll limitation service at no charge to its subscribers as part of its Lifeline service offering. Tri-Co will offer toll limitation to its Lifeline customers, at no charge, as part of its universal service offering. Therefore, the nature of Tri-Co's service eliminates the concern that low-income customers will incur significant charges for long distance calls, risking disconnection of their service.

e. Eligible Broadband Internet Access Services

 An ETC subject to a high-cost public interest obligation to offer BIAS must offer BIAS that provides the capability to transmit data to and receive data by wire or radio from all or substantially all Internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up service, within the areas where it receives high-cost support.⁶¹

 Tri-Co plans to implement a proposed FTTP network across its service area that allows for delivery of voice and data services, including BIAS, across a broadband access platform.⁶² Tri-Co will implement redundant Ethernet uplinks from the proposed FTTP electronics to its core data network.⁶³ These redundant connections ensure highly reliable broadband data communications services. Tri-Co also plans to implement data network routers, Internet uplinks, and Internet service provider (ISP) services to support customers from the awarded census block locations in Auction 903.⁶⁴ Ultimately, the proposed FTTP architecture enables the network operator to provide peak data speeds to individual users in increments of 1 Mbps or less. That functionality allows Tri-Co to provide a wide variety of data rates up to 1 Gbps (including raw data and ethernet overheads). The FTTP technologies to be implemented by Tri-Co utilize pulses of light to transmit voice and data traffic. This type of terrestrial technology using light results in one of the fastest possible transmission paths, thus creating a very low-latency network. Tri-Co satisfies 47 CFR §§ 54.101(a)(2) and (c).

2. 47 CFR § 54.201

Definition of ETC

 Pursuant to Section 153(10) of the Act, ''common carrier'' is defined as ''any person engaged as a common carrier for hire, in interstate or foreign communications by wire or radio[.]'' 47 U.S.C. § 153(10). A carrier is eligible under Section 54.201 so long as it offers the services set forth in Section 54.101, either through its own facilities or a combination of its own facilities and the resale of another carrier's services and advertises the availability of the federal universal support services using media of general distribution.⁶⁵ Common carriers that provide services consistent with the requirements of Section 214(e) may be designated ETCs. As set forth in its Petition, Tri-Co will be capable of providing the supported services over its own network infrastructure.⁶⁶ Thus, by virtue of its provision of voice and BIAS service to its customers through its own network, Tri-Co satisfies the facilities-based requirement. Therefore, Tri-Co is a common carrier.

 Furthermore, Tri-Co avers it will advertise the availability of its Lifeline services using media of general distribution.⁶⁷ Tri-Co states that it will provide service offerings in a manner reasonably designed to reach those likely to qualify for the service.⁶⁸ Tri-Co states that while its eventual advertising for its Lifeline service offering is still in development, it will utilize outreach materials and methods designed to reach households that currently do not have telephone and/or broadband service, will develop advertising materials for non-English speaking populations within its service area, and will coordinate its outreach efforts with relevant government agencies.⁶⁹ Tri-Co will also assist in outreach to its members regarding the availability of the supported services. Tri-Co states that its outreach will likely include targeted direct mail, advertisements in daily and weekly print periodicals, and online search engines.⁷⁰

 Finally, as set forth in a supplement to the Petition, Tri-Co certifies that it will inform customers of the availability of its Lifeline program through general distribution media which may include print, radio and television ads.⁷¹ Tri-Co also intends to promote these offerings to its existing customers who may otherwise qualify for Lifeline. Tri-Co has demonstrated knowledge addressing compliance with current Lifeline requirements and practices including participation with the National Verifier.⁷²

3. 47 CFR § 54.202

Additional Requirements

 Tri-Co also meets the additional requirements for ETC designation set forth in Section 54.202, as discussed below.

a. 47 CFR § 54.202(a)(1)

Compliance with Service Requirements

 In order to satisfy these criteria, an ETC applicant must demonstrate its commitment and ability to provide supported services throughout the designated service area: (1) by providing services to all customers making a reasonable request for service within the ETC's designated service area; and (2) by submitting a formal network improvement plan that demonstrates how universal service funds will be used to improve coverage, signal strength, or capacity that would not otherwise occur absent the receipt of high-cost support.

 To satisfy the first prong and ensure that an ETC serves requesting customers in its designated service area and demonstrates its capability and commitment to provide service throughout its designated service area to all customers who make a reasonable request for service, the FCC requires an ETC to make specific commitments to provide services to requesting customers in the service area for which it is designated. If the ETC's network already passes or covers the potential customer's premises, the ETC should provide service immediately. In those instances where a request comes from a potential customer within the petitioner's certificated service area but outside its existing network coverage, the petitioner should provide service within a reasonable period of time if service can be provided at reasonable cost.

 For supported locations in the eligible CBGs, Tri-Co in its Petition certifies that it will satisfy the FCC's deployment obligations at 47 CFR § 54.310(c) applicable to recipients of CAF Phase II money awarded through a competitive bidding process. For non-supported locations, Tri-Co in its Petition committed to providing services throughout its proposed designated service area to all customers making a reasonable request for services (i.e., where Tri-Co has facilities or can deploy them at reasonable expense). Specifically, Tri-Co's designated service area in Pennsylvania is the electric service area of TCREC, which comprises a portion of or the entirety of the exchanges set forth on Exhibit 5 to the Petition, plus a small number of census block locations awarded in the CAF II Auction 903 that are outside of TCREC's territory. Tri-Co certifies that it will serve any potential customer listed in Exhibit 5 who requests connection to Tri-Co's system, as long as the fiber facilities have been constructed in the particular area.⁷³ Tri-Co projects that all areas will have fiber access within six years of deployment. Thus, Tri-Co certifies that it will comply with the service requirements applicable to the support it receives.

 The ''five-year plan'' requirement set forth in 47 CFR § 54.202(a)(1)(ii) is inapplicable to Tri-Co. The FCC has eliminated the five-year improvement plan requirement for price cap carriers, rate-of-return carriers and petitioners seeking ETC designation to become eligible to receive Auction 903 support.⁷⁴ Therefore, consistent with this decision, since Tri-Co is a winning bidder in Auction 903 and seeking an ETC designation from us, it is not required to file a five-year improvement plan with this Commission.

b. 47 CFR § 54.202(a)(2)

Functionality in Emergency Situations

 An ETC applicant is required to demonstrate its ability to remain functional in emergency situations. In order to satisfy this criterion, an applicant must demonstrate it has a reasonable amount of back-up power to ensure functionality without an external power source, is able to reroute traffic around damaged facilities, and is capable of managing traffic spikes resulting from emergency situations.

 Tri-Co certifies that it intends to design the network with redundancy to enable continuous service.⁷⁵ Tri-Co states that the options that are currently contemplated include locating multiple dead ends in the service territory and ensuring that the network contains at least two backhaul interconnections.⁷⁶ This will ensure that Tri-Co is capable of rerouting traffic around damaged facilities. Additionally, the ONTs installed at the customers' premises also will have battery back-up for up to eight hours when fully charged.⁷⁷

c. 47 CFR § 54.202(a)(3)

Customer Service and Service Quality Standards

 For applicants seeking ETC designation for the purposes of becoming authorized to receive Auction 903 high-cost support, the FCC waived the requirement to submit proof of compliance with consumer protection and service quality standards—finding that the need for such requirements is obviated by specific service quality standards applicable to Auction 903 winning bid areas and specific reporting obligations relating to such standards.⁷⁸ Nonetheless, under independent Pennsylvania law, Tri-Co must still demonstrate that it will satisfy applicable consumer protection and service quality standards. Tri-Co has certified that as a jurisdictional CLEC and IXC facilities-based carrier in Pennsylvania, it will remain subject to the consumer protection and service quality standards and regulations promulgated by the Commission.⁷⁹

d. 47 CFR § 54.202(a)(4)

Financial and Technical Ability

 Generally, a carrier seeking only low-income support under Subpart E, 47 CFR §§ 54.400—54.422, must demonstrate that it possesses the financial and technical ability to provide Lifeline service. Tri-Co in its Petition submits that Section 54.202(a)(4) does not apply here because Tri-Co is not seeking designation as an ETC for purposes of receiving Lifeline support only. However, Tri-Co must participate in the federal Lifeline program as a condition of receiving an ETC designation to receive high-cost support, and Tri-Co is required to offer Lifeline service to low-income eligible customers or households. Moreover, as discussed in more detail, infra, in this Order, there are areas in Pennsylvania where Tri-Co will be a Lifeline-only ETC.⁸⁰ Therefore, the Commission determines that Tri-Co must still demonstrate financial and technical ability to provide Lifeline service and all other services, including in those areas where Tri-Co becomes a Lifeline-only provider.

 As noted above, Tri-Co is a ''facilities based'' applicant in Pennsylvania. Information concerning Tri-Co is as follows:

 • Tri-Co is a Pennsylvania Limited Liability Company with its principal place of business at 22 North Main Street, Mansfield, Pennsylvania 16933, telephone (570) 662-2175, facsimile (570) 662-2142.

 • Tri-Co has complied with Pennsylvania law relating to a domestic limited liability company.

 • Tri-Co has affiliates or predecessors within Pennsylvania: Tri-County Rural Electric Cooperative, C&T Enterprises, Inc., Wellsboro Electric Company, Valley Energy, Inc., and Citizens' Electric Company of Lewisburg PA.

 • Tri-Co has one affiliate rendering public utility service outside Pennsylvania: Valley Energy, Inc.

 Tri-Co has been awarded federal and state funding to assist in constructing a fiber optic network to serve residential, business, and institutional customers along that route.⁸¹ Specifically, Tri-Co has been awarded $3.2 million annually in CAF II funding for 10 years in order to develop and implement an FTTP network for voice and broadband services for 7,015 census block locations.⁸² Moreover, Tri-Co has received a Pennsylvania funding commitment of $17.15 million. In addition to relying upon state and federal grants, TCREC also plans to borrow funds and arrange for a letter of credit to pursue construction of the building out its FTTP network.⁸³ Tri-Co's total estimated construction cost for building out the FTTP network is $77 million.

 Tri-Co will use facilities that are company-owned to provide, among other things, residential and business voice and BIAS. Tri-Co's facilities are fiber-based and include ONTs at the customers' premises. Tri-Co anticipates that messages will originate and terminate at the ONT in TDM or similar, non-Internet Protocol, formats.⁸⁴ As part of its voice service offerings, Tri-Co proposes to offer standalone basic local telephone service, which is a protected service under Pennsylvania law in Tri-Co's currently approved service territory.

 In terms of financial integrity, although Tri-Co is a privately held firm with no publicly rated securities, its dual track of funding including support awarded to Tri-Co through the FCC's Auction 903 in addition to the funding from the Pennsylvania Redevelopment Capital Assistance Funds, gives us confidence in the financial ability of Tri-Co. However, if additional information becomes available that casts doubt on Tri-Co's financial integrity, we reserve the right to revisit our determination in this area.

 As part of our granting its application to operate as a CLEC and IXC in Pennsylvania, we have previously concluded that Petitioner has demonstrated it is technically, managerially, and financially fit to offer the proposed services.⁸⁵ We note that Tri-Co asserts that it possesses the requisite managerial and technical fitness to render CLEC and IXC services in Pennsylvania and is working with a qualified consultant on the engineering, project management, and construction of the network facilities that will provide these services.⁸⁶ Moreover, we are administratively aware that TCREC was one of the successful bidders in the FCC's CAF II Auction 903 that is aiding with the construction of the planned network facilities in Pennsylvania, and that the FCC's CAF II bidding process required the substantive demonstration of managerial, technical, and financial fitness elements for the participation of the successful bidders.⁸⁷ Although Tri-Co will provide voice and broadband services mainly to customers that are being served by TCREC, it will also build out to and offer services in the few locations within the FCC's census block groups for which Tri-Co was awarded CAF II funding that are just outside the service territory of TCREC.⁸⁸ Based on these considerations, we conclude that Tri-Co has the requisite technical, financial, and managerial ability to be designated as an ETC.

e. 47 CFR §§ 54.202(a)(5) and 54.202(a)(6)

Terms and Conditions of Lifeline Plans

 Tri-Co in its Petition submits that Sections 54.202(a)(5) and 54.202(a)(6) do not apply here because Tri-Co is not seeking designation as an ETC for purposes of receiving Lifeline support only. However, consistent with our prior determination regarding Section 54.202(a)(4), we believe these sections are applicable to Tri-Co's request. Upon review, Tri-Co in its Petition commits to offering Lifeline discounts to qualifying low-income consumers, consistent with the FCC's rules and the Commission's rules and guidelines in all high-cost areas where it is authorized to receive support. Tri-Co's supplements include the requisite description of the service offerings for Lifeline subscribers.⁸⁹ Accordingly, we find that Tri-Co meets the requirements of 47 CFR § 54.202(a)(5) and 47 CFR § 54.202(a)(6).

f. 47 CFR § 54.202(b)

Public Interest Standard

 When making a public interest determination for an ETC designation, the FCC historically has considered the benefits of increased consumer choice and the unique advantages and disadvantages of the petitioner's service offering.⁹⁰ In particular, granting an ETC designation may serve the public interest by providing a choice of service offerings in rural and high-cost areas. However, the value of increased competition, by itself, may not satisfy the public interest test.

 In this case, we believe the public interest standard has been met through Tri-Co's participation in the CAF II process. Tri-Co was a winning bidder in Auction 903 in the following manner:

Bidder	State	Total Assigned Support for 10-year period	Locations Assigned
Tri County Rural Electric Cooperative, Inc.	PA	$32,326,228.30	7,015

 ETC designations in areas where a winning bidder is authorized to receive Auction 903 support serve the public interest. That arises, in part, because approving an ETC designation for Tri-Co permits it to secure the release of the total 10-year support by the FCC from Auction 903 to ^{85 86 87 88} deploy broadband-capable networks in rural underserved areas in Pennsylvania that might otherwise prove more expensive or longer to deploy. Receipt of these CAF Phase II federal funds is a considerable benefit as it will help provide Commonwealth consumers with additional access to voice service and broadband deployment. Through participation in Auction 903 bidding and application processes, Tri-Co demonstrates that it can offer voice and BIAS in high-cost areas efficiently and at a price and quality more than comparable to the service offerings in more competitive areas. Many rural customers in Pennsylvania, including many in the TCREC service footprint, have yet to reap the full benefits of access to high speed broadband-capable networks that provide download and upload access under more current federal speed standards. Designating Tri-Co as an ETC in Pennsylvania, therefore, will enable it to expand the availability of advanced telecommunications services to Pennsylvania consumers.

 Consequently, designating Tri-Co an ETC in these census blocks will further the delivery of voice and BIAS in a manner that is consistent with the ongoing universal service obligations arising under state and federal law. Consumers will benefit from the Commission's decision to designate Tri-Co an ETC because Tri-Co will be receiving federal high-cost support in these census blocks and will be required to use its federal support from Auction 903 to expand voice and broadband-capable networks with service quality that meets the FCC's and this Commission's requirements.^{89 90}

 Moreover, Tri-Co may possibly replace current federal price cap ETCs as the only carrier receiving federal USF high-cost support in these local exchanges.⁹¹ In the December 2014 Connect America Order, the FCC determined that federal price cap carriers can remove their ETC status via the Section 214 process if (1) the census block is determined to be low cost; (2) the census block is served by an unsubsidized competitor offering voice and broadband at speeds of 10/1 Mbps or better to all eligible locations; or (3) the census block is served by a subsidized competitor (another ETC) receiving federal high-cost support to deploy modern networks capable of providing voice and broadband to fixed locations.⁹² While Section 214(e)(4) of the Act enables a price cap ETC to seek relinquishment of its ETC designation, it also requires states (or the FCC if it designated the ETC) to ''ensure that all customers served by the relinquishing carrier will continue to be served.''⁹³ Hence, if all other ETCs in Tri-Co's particular designated service area relinquish their ETC designations, Tri-Co, as the competitive ETC, may be required to ensure that all customers served by the relinquishing carriers in their respective designated service areas will continue to be served.⁹⁴

 Since an ETC designation will assist Tri-Co to secure federal universal service high-cost support funding under CAF Phase II in various census blocks in specific local exchanges and also provide voice while promoting the deployment of advanced telecommunications and BIAS to all regions of the Commonwealth, the Commission determines that ETC designation for Tri-Co is in the public interest. It promotes both the FCC's and the Pennsylvania General Assembly's goals of preserving and advancing universal service and ensuring the availability of quality telecommunications services at just, reasonable, and affordable rates within rural and high-cost areas. See 66 Pa.C.S. § 3011(2).

g. 47 CFR § 54.202(c)

Tribal Lands

 ETC designation to serve any tribal lands is inapplicable in Pennsylvania, making Section 54.202(c) inapplicable to Tri-Co's Petition.

h. 47 CFR §§ 54.202(d) and (e)

Designation as Lifeline Broadband Provider

 A Lifeline Broadband Provider (LBP) is a service provider that will provide only Lifeline-supported broadband service, and not Lifeline-supported voice service. Tri-Co is not seeking designation as an LBP but as a federal high-cost ETC. Therefore, Sections 54.202(d) and (e) are inapplicable to Tri-Co's Petition.

4. 47 CFR § 54.203

ETCs for Unserved Areas

 Because Tri-Co's Petition does not involve service to an unserved area, Section 54.203 is not applicable.

5. 47 CFR § 54.205

Relinquishment of Universal Service

 If at some point in the future Tri-Co seeks to relinquish its ETC designation, Tri-Co agrees to comply with the requirements of Section 54.205 as well as independent state law.

6. 47 CFR § 54.207

Service Areas

 The term service area means a geographic area established by a state commission for the purpose of determining universal service obligations and support mechanisms. A service area defines the overall area for which the carrier shall receive support from federal universal service support mechanisms.⁹⁵ In the case of a service area served by a rural telephone company, service area means such company's study area unless and until the Commission and the states, after taking into account recommendations of a Federal-State Joint Board instituted under Section 410(c) of the Act, establish a different definition of service area for such company.⁹⁶

 Tri-Co states that since it is not requesting redefinition of any of the service areas served by a rural incumbent local exchange carrier (RLEC) for which it is seeking an ETC designation, Section 54.207 is inapplicable to its request. We disagree that consideration of redefinition of the RLECs' service territories was not triggered in Tri-Co's Petition. However, as explained below, we determine that in light of the FCC's policies regarding Auction 903 awards, redefinition is not required in this instance. Thus, we agree with Tri-Co that Section 54.207 is inapplicable here notwithstanding that a similar proposal outside of Auction 903 otherwise may qualify as a redefinition.

 In its Petition, Tri-Co is not seeking an ETC designation on an RLEC service territory-wide basis. Hence, under standard ETC requests, redefinition of an RLEC service territory would apply because the Petitioner requests to serve only portions of RLECs' service areas. However, based on our analysis of Tri-Co's Petition and applicable law, we approve Tri-Co's request for an ETC designation below the study area level for each of these five RLECs and conclude that redefinition is not required.

 Tri-Co is requesting to be designated an ETC only in all or part of certain exchanges of the service territories of five RLECs: Frontier Commonwealth; Frontier Canton; Frontier Oswayo River; North Penn; and Windstream PA. Tri-Co is seeking ETC designation in certain local exchanges within the service area of these RLECs. In particular, Tri-Co was a winning bidder for a certain number of locations in specific eligible CBGs in Pennsylvania, including in these RLECs' service areas, and it is only seeking ETC designation in all or part of specific exchanges where it was awarded CAF Phase II support funding via Auction 903.

 Specifically, Tri-Co seeks ETC designation in the exchanges of the RLECs as follows:

 • Frontier Commonwealth: Only Blossburg, Covington, Liberty, Mansfield, Middlebury Center, Morris, Rome, Tioga, Troy, Ulster and Wellsboro local exchanges.

 • Frontier Canton: Only Canton and Leroy local exchanges.

 • Frontier Oswayo River: Only Millport, Shinglehouse and Genesee local exchanges.

 • North Penn: Only Bentley Creek, Roseville and Millerton local exchanges.

 • Windstream PA: Only Driftwood, Emporium and Hughesville local exchanges.

 Generally, once an entity is designated an ETC in a service area, it must offer the supported services throughout that entire service area.⁹⁷ If an area is served by an RLEC, the Act defines the service area for the purpose of designating an ETC to be the rural telephone company's entire study area.⁹⁸ When a competitive ETC seeks to serve an area already served by an RLEC, Section 214(e)(5) of the Act imposes an additional requirement that the competitive ETC's service area must conform to the rural telephone company's service area.⁹⁹ Accordingly, if a state commission sought to designate a competitive ETC in an RLEC service area that differs from the RLEC's existing service area, that rural service area must first be redefined under the process set forth under the Act.¹⁰⁰

 However, in its Phase II Auction Order, the FCC held that for those entities that were seeking to obtain ETC designations solely as a result of being selected as winning bidders for the Auction 903 support, it was best to forbear from applying Section 214(e)(5) of the Act and Section 54.207(b) of the FCC's rules insofar as those sections require that the service area of such an ETC conform to the service area of any RLEC serving an area eligible for Phase II support.¹⁰¹ The FCC concluded that forbearance from the Section 214(e)(5) service area conformance requirement for recipients of the Phase II competitive bidding process was appropriate and in the public interest.¹⁰²

 The FCC noted that since price cap ETCs declined the offer of model-based support and another entity is now receiving that declined support through Auction 903, the incumbent ETC's service area is no longer a relevant consideration in determining the geographic scope of a winning bidder's ETC designation. Pennsylvania-specific carrier of last resort obligations notwithstanding, the FCC expressly noted that ''[i]f the rural telephone affiliate of a [federal] price cap carrier declines the offer of support and another entity is selected as the winning bidder to serve a portion of its area through the competitive bidding process, the incumbent will be replaced by the Phase II competitive bidding recipient in those areas, and the incumbent's legacy service area will no longer be a relevant consideration in determining where the winning bidder should be designated as an ETC.''¹⁰³ Consequently, the FCC decided that it was a more efficient use of CAF II funds to provide support to only one provider in a given geographic area in exchange for that provider's commitment to offer service that meets the FCC's requirements throughout the funded area.

 Additionally, the FCC noted that forbearing from the service area conformance requirement eliminated the need for redefinition of any RLECs' service areas in the context of the Phase II competitive bidding process.¹⁰⁴ The FCC directly addressed its previously required ''cream-skimming analysis,'' an analysis triggered out of the concern that an ETC serving only a relatively low-cost portion of an RLEC's service area might skim only the cream of customers by receiving per line support based on the RLECs' cost of serving the entire service area. The FCC determined that such an analysis is irrelevant since a winning bidder will be the only carrier receiving support to serve a bid area and must serve areas the marketplace would not otherwise serve absent the Auction 903 support.¹⁰⁵ Thus, past ''cream-skimming'' concerns are not relevant to the Phase II support awarded through a competitive process.¹⁰⁶

 Accordingly, the analysis that the relevant state and the FCC historically undertook when deciding whether to redefine an RLEC's service area is not applicable to this Phase II competitive bidding process. Therefore, even though Tri-Co is seeking ETC designation below the study area level of these five RLECs, the FCC rules regarding the redefinition process for Auction 903 replace those set forth in 47 CFR §§ 54.207(c) and (d) are not applicable to petitioners seeking ETC designation solely to secure CAF Phase II Auction 903 funding.¹⁰⁷

B. Certification of Eligibility for Benefits under the Anti-Drug Abuse Act

 Petitioners must certify that neither the petitioner nor any party to the petition is subject to a denial of federal benefits pursuant to Section 5301 of the Anti-Drug Abuse Act of 1988, as implemented in Section 1.2002 of the FCC's rules.¹⁰⁸ Tri-Co has submitted a certification that satisfies the requirements of the Anti-Drug Abuse Act of 1988, as codified in Sections 1.2001—1.2003 of the FCC's rules.¹⁰⁹

C.  Tri-Co Satisfies the FCC's Rules and Federal Requirements Governing High-Cost ETC Designations

 Based upon our review of Tri-Co's Petition, as supplemented, we determine that Tri-Co satisfies all the applicable and relevant FCC rules and federal requirements necessary to obtain an ETC designation for the purpose of receiving Auction 903 high-cost support. Consumers will benefit from the Commission's decision to designate Tri-Co an ETC in the local exchanges specified in its Petition and this Order, which will allow Tri-Co to receive the CAF Phase II support to expand voice and broadband-capable networks with service quality that meets the FCC's requirements. As an ETC receiving federal high-cost support, Tri-Co is obligated to ensure that support it receives is being used only for the provision, maintenance, and upgrading of facilities and services in the areas where it is designated an ETC. Additionally, because Tri-Co will also be providing voice and BIAS to non-Lifeline customers, we require Tri-Co to comply with applicable Commission and FCC requirements governing the delivery of voice and BIAS to non-Lifeline consumers.

 Moreover, as discussed above, in the future, Tri-Co may replace the current incumbent ETCs as the only carrier receiving federal high-cost support in the local exchanges where it has received an ETC designation. Consequently, if all other ETCs in Tri-Co's particular designated service area relinquish their respective ETC designations, Tri-Co, as the competitive ETC, may be required to ensure that all customers served by a relinquishing carrier in its designated service areas will continue to be served under 47 U.S.C. § 214(e)(4).

 However, we clarify that in Pennsylvania, Tri-Co is being designated a federal high-cost ETC only in the CAF-eligible census blocks covered by Tri-Co's award in Auction 903 that are located in the local exchanges where Tri-Co plans to provide local exchange services. This limited designation of Tri-Co as a federal high-cost ETC in the rural high-cost CAF-eligible census blocks in Pennsylvania is in the public interest.

 Notwithstanding, we understand that Tri-Co specifically stated in is Petition that it is seeking ETC designation in Pennsylvania in thirty-five specific local exchanges in seven different ILEC service territories.¹¹⁰ The Commission notes that the FCC has recently designated entities as federal high-cost ETCs in all relevant high-cost census blocks where they are eligible to receive CAF Phase II support via Auction 903.¹¹¹ In that Order, the FCC also noted that some of the entities before it had also requested designation as an ETC for areas outside of the Auction 903 CAF-eligible census blocks.¹¹² Consequently, the FCC held in such a case where an entity sought ETC designation to serve areas outside of the Auction 903 CAF-eligible census blocks, it would treat that portion of the petition as a Lifeline-only petition.¹¹³ Likewise, for any non-CAF eligible census blocks located within the local exchanges for which Tri-Co has sought an ETC designation, Tri-Co will receive a Lifeline-only ETC designation and is eligible to receive only Lifeline support. Doing otherwise could contravene FCC requirements.

II. Federal Requirements Of Eligible Telecommunications Carriers For Universal Service Support For Low-Income Consumers

 Upon receipt of a federal high-cost ETC designation, a winning CAF bidder is required to offer Lifeline services and is required to comply with the rules and requirements of the federal Lifeline program. These rules and requirements have now been amended by the FCC's Lifeline Reform Orders and are codified at 47 CFR §§ 54.101, et seq.

 The major goal of the FCC's Lifeline Reform Orders was to implement procedures designed to preserve federal USF resources and prevent waste, fraud and abuse. To that end, the FCC codified rules governing the entire process of Lifeline reimbursement from the USF. These changes established defined terms governing the provision of low-income support and established parameters governing a carrier's duties and eligibility for USF low-income support. Specifically, revised Section 54.400 establishes relevant terms and definitions for provision of Lifeline; Section 54.401 defines Lifeline as a non-transferrable retail service; Section 54.403 establishes the Lifeline support amounts that ETCs may seek from the federal USF; and Section 54.404 requires the creation of the NLAD, which intends to provide a national database for ETCs to cross-check subscriber eligibility as a means to eliminate the federal USF support for duplicative or otherwise ineligible subscribers.

 Further, the Lifeline Reform Orders instituted substantial changes which have impacted consumer qualification for Lifeline, including: Section 54.410 (Subscriber Eligibility Determination); Section 54.416 (Annual Certifications by ETCs); Section 54.417 (Record Keeping Requirements); and Section 54.422 (Annual Reporting for ETCs that Receive Low-income Support). These regulations govern the prerequisite duties of an ETC seeking low-income support from the federal USF.

 All current and future ETCs must meet the minimum standards set forth in the FCC's Lifeline Reform Orders. All minimum federal requirements of the FCC's Lifeline Reform Order not expressly discussed herein, are nonetheless applicable to ETC designation requests in Pennsylvania. This includes any subsequent developments in those federal requirements.

A. The FCC's Rules Governing Lifeline

1. 47 CFR § 54.410

Subscriber Eligibility Determination and Certification

 The requirements for subscriber eligibility determination and certification requirements in Section 54.410 of the FCC's rules are the major requirements established to prevent waste, fraud, and abuse. These requirements pertain to consumer eligibility factors for Lifeline and the corresponding obligation for verification of that eligibility. The FCC's further requirements for specific formats and process for accomplishing verification are additional requirements for ETC designations. This section further requires that every consumer's eligibility be recertified annually.

 In its 2016 Lifeline Order, the FCC established the National Verifier as the entity designated to make eligibility determinations and perform a variety of other functions necessary to enroll eligible subscribers into the Lifeline Program. As outlined in the 2016 Lifeline Order, ''[t]he Commission's key objectives for the National Verifier are to protect against and reduce waste, fraud, and abuse; to lower costs to the Fund and Lifeline providers through administrative efficiencies; and to better serve eligible beneficiaries by facilitating choice and improving the enrollment experience.''¹¹⁴ The National Verifier is a centralized system that determines whether subscribers are eligible for Lifeline. USAC manages the National Verifier and its customer service department, the Lifeline Support Center. Service providers can help Lifeline consumers obtain an eligibility decision from the National Verifier through the service provider portal, or consumers can apply on their own by mail or online. USAC will determine if the applicant is eligible for Lifeline.

 The National Verifier was fully launched in Pennsylvania in March of 2019. Because the National Verifier has launched in Pennsylvania, it is the only means used for eligibility determination now and into the future. New and potential Lifeline consumers will receive their initial income-based eligibility determination by signing into CheckLifeline.org from any computer or mobile device to create an account, receive an eligibility decision, and use the list of service providers in their area to contact one to enroll. Tri-Co must use the National Verifier to determine eligibility for its potential Lifeline customers given USAC's implementation of the National Verifier in Pennsylvania.

 The FCC modified Sections 54.410(b)(2)(ii), (c)(2)(ii), and (e) of its rules to clarify that where use of the National Verifier determines the consumer's initial eligibility determination or recertification, the National Verifier is not required to deliver copies of those certifications to the ETC. The FCC determined that this amendment to the rules was consistent with its goals that the National Verifier ease burdens on Lifeline service providers while improving privacy and security for consumers applying to participate in the program.

 Further, this amendment brings Section 54.410 of the rules in line with the FCC's stated intent in the 2016 Lifeline Order that Lifeline providers would not be required to retain eligibility documentation for eligibility determinations made by the National Verifier as it presents unnecessary risk to the privacy and security of subscriber information. Thus, Tri-Co is not required to retain documentation of eligibility criteria and provide subscribers with form eligibility certifications which provide notice to the subscribers of the Lifeline plan eligibility rules and requires that subscribers provide detailed personal and billing information.¹¹⁵

 For low-income consumers residing in group facilities or at an address shared by multiple households, the FCC's ''One Per-Household rule'' establishes that a ''household'' is defined as ''any individual or group of individuals who are living at the same address as one economic unit.'' 47 CFR § 54.400(h). Lifeline applicants may demonstrate at the time of enrollment that another Lifeline recipient resides at their address as part of a separate household.

 Finally, Section 54.410(f) of the federal rules provides for an annual recertification process by which each subscriber's eligibility for Lifeline service must be recertified. 47 CFR § 54.410(f). In Pennsylvania, service providers must use the National Verifier, which has assumed the responsibility for annual recertification where it has been launched in a state. Lifeline subscribers will be recertified either automatically through the National Verifier's state/federal data sources, or receive a recertification request from USAC.

 Tri-Co agrees it will verify consumer eligibility to participate in the Lifeline program in accordance with the applicable FCC rules. This includes the FCC's Lifeline Reform Orders' amendment to the minimum eligibility criteria for consumers to receive Lifeline support, the revision to the eligibility determination process through the use of the National Verifier, and the modification of the annual recertification process as the National Verifier will also recertify subscribers each year.

2. 47 CFR §§ 54.416, 54.417 and 54.422

Annual Certifications, Recordkeeping and Reporting

 As previously noted, the FCC's rules contain certain annual certification, recordkeeping, and reporting requirements for ETCs participating in the Lifeline program. For one, a service provider must annually certify to USAC that it complies with all applicable federal Lifeline certification procedures to recertify the continued eligibility of all of its Lifeline subscribers.¹¹⁶ Consistent with our prior discussion related to Section 54.410(f), Tri-Co's Lifeline subscribers will be recertified either automatically through the National Verifier's state/federal data sources, or receive a recertification request from USAC. In any event, Tri-Co in its Petition represents that it will establish procedures to comply with these provisions.

B. Tri-Co Satisfies All the Federal Requirements Regarding Lifeline

 As a CAF II winning bidder and high-cost ETC, Tri-Co is obligated to offer Lifeline-supported services throughout its designated service areas and is obligated to comply with the rules and requirements of the federal Lifeline program. This obligation includes, inter alia, compliance with the FCC's rules for determining subscriber eligibility and annual recertification. Based upon our review of Tri-Co's Petition, as supplemented, we determine that Tri-Co satisfies all the applicable and relevant FCC rules and federal requirements regarding Lifeline.

III. Pennsylvania-Specific Requirements For ETC Designation

 In addition to the minimum federal standards above, through our ETC Guidelines, Tri-Co must comply with Pennsylvania statutory law and Commission orders which govern Pennsylvania's Lifeline program.¹¹⁷ 52 Pa. Code § 69.2501(b).

A. Section 3019(f) Requirements

 Section 3019(f) of the Pennsylvania Public Utility Code, 66 Pa.C.S. § 3019(f), and the Commission's PA Lifeline Order set forth the minimum Pennsylvania requirements for ETCs seeking low income support from the federal Lifeline Program. Section 3019(f) includes the following requirements for ETCs:

 (1) All eligible telecommunications carriers certificated to provide local exchange telecommunications service shall provide lifeline service to all eligible telecommunications customers who subscribe to such service.

 (2) All eligible telecommunications customers who subscribe to lifeline service shall be permitted to subscribe to any number of other eligible telecommunications carrier telecommunications services at the tariffed rates for such services.

 (3) Whenever a prospective customer seeks to subscribe to local exchange telecommunications service from an eligible telecommunications carrier, the carrier shall explicitly advise the customer of the availability of lifeline service and shall make reasonable efforts where appropriate to determine whether the customer qualifies for such service and, if so, whether the customer wishes to subscribe to the service.

 (4) Eligible telecommunications carriers shall inform existing customers of the availability of lifeline services twice annually by bill insert or message. The notice shall be conspicuous and shall provide appropriate eligibility, benefits and contact information for customers who wish to learn of the lifeline service subscription requirements.

 (5) Eligible telecommunications carriers shall provide the department of public welfare with lifeline service descriptions and subscription forms, contact telephone numbers, and a listing of the geographic area or areas they serve, for use by the department of public welfare in providing the notifications required by this paragraph.

 (6) No eligible telecommunications carrier shall be required to provide after the effective date of this section any new lifeline service discount that is not fully subsidized by the federal universal service fund.

 Tri-Co certifies that it will comply with each of the Section 3019(f) requirements. Tri-Co will provide its prepaid Lifeline service to all eligible telecommunications customers who wish to subscribe to such service and who reside within Tri-Co's service area as defined in its tariff. The Company will also agree to permit eligible customers to subscribe to any number of its other telecommunications services at the standard rates for such services. Tri-Co will establish protocols so that whenever a prospective customer in Pennsylvania seeks to subscribe to Tri-Co's service, Tri-Co will explicitly advise the customer of the availability of Lifeline service and shall meet federal requirements to determine whether the customer qualifies for such service and, if so, whether the customer wishes to subscribe to the service.

 Furthermore, Tri-Co will inform existing customers of the availability of Lifeline service twice annually by bill insert, in compliance with Section 3019(f)(4). Finally, Tri-Co will provide the Commonwealth's Department of Human Services (DHS), formerly the Department of Public Welfare, with its Lifeline service descriptions and subscription forms, contact telephone numbers and a listing of the geographic area or areas it serves for use by DHS in providing the notification under Section 3019(f)(5).

B. Other Pennsylvania Requirements and Relevant Reporting Requirements¹¹⁸

 In addition to the Pennsylvania statutory requirements, the Commission has established Lifeline eligibility criteria, as well as procedures for certification and verification of a consumer's initial and continuing eligibility.¹¹⁹ Additionally, ETCs are further ordered to report to the Commission annual changes in Pennsylvania Lifeline enrollment.¹²⁰ The Commission continues to reserve our right to impose separate state-specific requirements where necessary for the protection of the Commonwealth's consumers.

1. Compliance with Eligibility Certification and Verification

 As a condition of its ETC designation, Tri-Co must independently certify a Lifeline applicant's eligibility for service. Compliance with the Lifeline eligibility verification requirements are essential for prevention of waste, fraud and abuse. In particular, all ETCs designated by this Commission are required to take the necessary steps to ensure that Lifeline support paid by the federal USF to the carrier is remitted only for eligible low-income consumers or households.

 As stated above, with launch of NLAD in Pennsylvania, Tri-Co must use the National Verifier when helping consumers apply to the Lifeline Program. In addition, Tri-Co must include a public education component as part of its Lifeline outreach program to ensure that consumers are aware of and can participate in, the eligibility determination from the National Verifier.

 By our PA Lifeline Order we also required eligibility be confirmed annually and required:¹²¹

That LECs offering Lifeline . . . services are directed to recertify their Lifeline . . . customers at least annually in accordance with FCC procedures established at 47 C.F.R. § 54.410 (relating to certification and verification of consumer qualifications for Lifeline)[.]''

Id. at 27.

 Tri-Co is directed, as a condition of receiving an ETC designation, to ensure all of its Lifeline subscribers are recertified. As previously discussed, the National Verifier assumed the responsibility for annual recertification in Pennsylvania as of March 5, 2019, and Tri-Co's Lifeline subscribers will be recertified either automatically through the National Verifier's state/federal data sources, or receive a recertification request from USAC.

 Prior to recertification, however, we note that the FCC has adopted a reverification process that must occur to determine the continued eligibility of existing Lifeline subscribers. Reverification is the one-time process by the National Verifier to confirm that all existing Lifeline subscribers meet the eligibility standards. Reverification will be performed in groups based on subscribers' enrollment dates. Reverification will reset a subscriber's anniversary date. Subscribers will then be recertified one year after the date that they are successfully reverified.¹²² Thereafter, Lifeline subscribers will be recertified either automatically through the National Verifier's state/federal data sources, or receive a recertification request from USAC. Because Tri-Co has no existing Lifeline subscribers, we note that reverification likely will not be required since all Tri-Co's Lifeline customers will be newly certificated.

2. Compliance with the Tracking Report Order

 As a condition of ETC designation, ETCs are required under Pennsylvania law to report to the Commission annual changes in Lifeline enrollment, per our Tracking Report Order. Tri-Co will fully comply with the Commission's annual Lifeline Tracking Report requirement.

 Further, in order to ensure the Pennsylvania Lifeline program advances the Commonwealth's universal service policy, Tri-Co shall be required to provide to BCS a copy of its annual Lifeline Eligible Telecommunications Carrier Certification Form, FCC Form 555, that it files with USAC.¹²³ The FCC Form 555 reports the results of the annual recertification process and includes data accuracy certifications.

3. Chapter 64 Requirements for Standards and Billing Practices

 As a condition of designation, Tri-Co agrees to comply with the standards and billing practices set forth in Commission regulations at 52 Pa. Code §§ 64.1—64.213. Compliance with Chapter 64 will ensure that Tri-Co customers receive the same protections as other Pennsylvania telecommunications services customers.

4. Consumer Lifeline-Related Complaints Processed by the Bureau of Consumer Services

 As a final condition of designation, Tri-Co agrees to work with BCS to resolve informal complaints and to submit to Commission jurisdiction on formal complaints filed by Tri-Co Lifeline customers on Lifeline-related issues.¹²⁴ Specifically, BCS will address Lifeline-related issues which pertain to the consumers' rights under its Residential Service Agreement, including: (1) eligibility disputes; (2) program offering issues; and (3) limited equipment-related issues.

 Tri-Co will provide notice to consumers in its Pennsylvania promotional materials as well as Pennsylvania-specific information on its web page of their right to contact BCS and of the Commission's contact information, if Lifeline service-related complaints brought to Tri-Co's customer service division are not resolved. In addition, we expect Tri-Co to consult with BCS in preparation of Pennsylvania promotional materials to ensure that they further the delivery of voice and broadband services in a comprehensible fashion in Pennsylvania.

 Adherence to these Pennsylvania-specific requirements applicable to ETCs designated by the Commission will assure uniformity among Lifeline services offered by different ETCs, will provide consumer protection for low-income consumers, and will enable BCS to monitor Lifeline Program effectiveness in Pennsylvania.

5. Change in Corporate Control and Renewed ETC Designation

 In the event of a change of or transfer in corporate control, as defined in the Commission's regulations at 52 Pa. Code § 63.322, Tri-Co will have to petition this Commission for a renewal of its ETC status. Corporate changes of control may also be accompanied with changes in ETC status of a particular telecommunications entity with reference to the various and evolving support mechanisms of the federal USF. In this respect, this Commission is lawfully entitled to timely re-examine any such changes and ascertain whether a particular telecommunications entity should continue with an ETC designation. For this reason, we shall require Tri-Co to file for renewal of its ETC designation at the same time it files any application for a change or transfer of control under our regulations.

6. Provision of ETC Application, Annual Certification and Promotional Materials to the Bureau of Consumer Services

 All ETCs are required to supply the Commission's BCS with copies of subscriber Lifeline applications, annual certifications, promotional/advertising materials, and Lifeline-related customer notices for review for consistency with eligibility determination criteria and annual certification requirements as well as plain language requirements. Accordingly, as a condition of receiving ETC designation, Tri-Co is directed to provide the Commission with copies of any and all reports submitted to USAC, and, upon request, provide BCS with copies of subscriber Lifeline applications, promotional/advertising materials, annual certifications reports, and Lifeline-related customer notices. Any failure of Tri-Co to comply with these requirements will be a basis for revocation of its ETC designation or other enforcement action.

7. Reporting Requirements for State-Designated ETCs Receiving High-Cost Support

 In its 2016 Rate-of-Return Reform Order, the FCC eliminated many of the related reporting obligations for ETCs set forth in Form 481. The FCC amended the rules to require ETCs to provide additional detail regarding their broadband deployment during each year. Specifically, ETCs are now required to provide location and speed information of newly-served locations. Also, for those ETCs electing to receive CAF Phase II support they were required to provide information for the locations already served at the time of election.

 Tri-Co must comply with the following reporting requirements. ETCs must submit to USAC the geocoded locations to which they have newly deployed broadband. This data will provide an objective metric showing the extent to which ETCs receiving high-cost support are using funds to advance as well as preserve universal service in rural areas, demonstrating the extent to which they are upgrading existing networks to connect rural consumers to broadband. ETCs will also be required to report the number of locations at the minimum speeds required by the FCC's rules. The location and speed data will be used to determine compliance with the FCC's associated deployment obligations. The geocoded location information should reflect those locations that are broadband-enabled where Tri-Co is prepared to offer service within ten business days that meets the FCC's minimum requirements for high-cost recipients subject to broadband public interest obligations.

 ETCs must provide annual reports and certifications regarding specific aspects of their compliance with public interest obligations to the FCC, USAC, and this Commission as the relevant state commission. These annual reporting requirements will provide the factual basis underlying this Commission's annual Section 254(e) certification by October 1 of every year that support is being used for the intended purposes.

C. Tri-Co Satisfies All Pennsylvania-Specific Requirements for Lifeline

 In addition to the minimum federal standards mentioned above, all ETCs are required to comply with Pennsylvania law and Commission orders which govern Pennsylvania's Lifeline programs. 52 Pa. Code § 69.2501(b). As already determined above, Tri-Co commits to: (1) abide by the applicable eligibility certification and verification requirements set forth in the Commission's PA Lifeline Order; (2) abide by the applicable requirements set forth in the Commission's Tracking Report Order; (3) abide by the Commission's Chapter 64 regulations regarding standards and billing practices, 52 Pa. Code §§ 64.1—64.213; and (4) have consumer Lifeline-related complaints which are unresolved by Tri-Co's customer service, handled by BCS as appropriate and, if not, be resolved through formal or informal Commission processes.

Conclusion

 In consideration of the Tri-Co Petition for ETC designation, as supplemented, we conclude Tri-Co satisfies all federal and Pennsylvania-specific requirements for ETC designation. As a federal high-cost ETC designee, Tri-Co must meet the minimum standards set forth in the FCC's Lifeline Reform Orders, reporting and performance metrics set forth in the USF/ICC Transformation Order, and all related regulations. Further, in Pennsylvania, Tri-Co must satisfy the Commission's requirements in the Public Utility Code, our ETC Guidelines, and all related orders. Designation of Tri-Co as a federal high-cost ETC to secure the federal high-cost support from Auction 903 in discrete census blocks in its tariffed service area in Pennsylvania and as a Lifeline-only ETC in all other census blocks in its service area in Pennsylvania where Tri-Co is not receiving high-cost support is in accord with Section 214 of the Act, the FCC's regulations and orders related to ETC designation, Section 3019(f) of the Public Utility Code, and the Commissions orders on ETC designation. 47 U.S.C. § 214; 47 CFR §§ 54.201, et seq.; and 66 Pa.C.S. § 3019(f); Therefore,

It Is Ordered:

 1. The Petition of Tri-Co Connections, LLC for Designation as an Eligible Telecommunications Carrier in the Commonwealth of Pennsylvania is granted, subject to the terms and conditions set forth in this order.

 2. That the Commission grants Tri-Co Connections, LLC a designation as a federal high-cost Eligible Telecommunications Carrier in all of the CAF-eligible areas of the specific local exchanges located in the service territories of the following companies as listed in the body of this Order: Verizon Pennsylvania LLC; Verizon North LLC; Commonwealth Telephone Company d/b/a Frontier Communications Commonwealth Telephone Company; Frontier Communications of Canton, LLC; Frontier Communications of Oswayo River, LLC; North Penn Telephone Company; and Windstream Pennsylvania, LLC.

 3. That the FCC rules regarding the redefinition process as it relates to Tri-Co Connections, LLC's designation as a federal high-cost Eligible Telecommunications Carrier below the study area level of Commonwealth Telephone Company d/b/a Frontier Communications Commonwealth Telephone Company; Frontier Communications of Canton, LLC; Frontier Communications of Oswayo River, LLC; North Penn Telephone Company; and Windstream Pennsylvania, LLC is inapplicable as set forth in this Order.

 4. That Tri-Co Connections, LLC is designated an Eligible Telecommunications Carrier eligible only for Lifeline support in those census blocks throughout its designated service area for which it will not be receiving Connect America Fund Phase II Auction 903 high-cost support to the extent described in this Order.

 5. That Tri-Co shall provide the Bureau of Consumer Services with copies of subscriber Lifeline applications and annual certification and promotional materials for review for consistency with eligibility determination criteria and annual certification requirements.

 6. That the failure of Tri-Co Connections, LLC to comply with any of the provisions of this Order may result in revocation of its ETC designation(s) for purposes of receiving federal Universal Service Fund high-cost support and the federal Lifeline support or be subject to further Commission process.

 7. That Tri-Co Connections, LLC shall petition this Commission for any future change to the basic Lifeline service offerings provided through this ETC designation as described herein which represents a limitation or reduction of Lifeline services/equipment provided free of charge, and shall provide notice to this Commission of any addition, change or new offering which is in addition to the basic Lifeline offering.

 8. That Tri-Co Connections, LLC shall petition this Commission for renewal of its Eligible Telecommunications Carrier status at the same time it files any application for a change or transfer of control as defined at 52 Pa. Code § 63.322.

 9. That the Secretary shall serve a copy of this Order on Tri-Co Connections, LLC, on the Office of Consumer Advocate, and the Office of Small Business Advocate.

 10. That a copy of this Order be published in the Pennsylvania Bulletin.

 11. That this docket be marked closed.

ROSEMARY CHIAVETTA, 
Secretary

Statement of Chairperson Gladys M. Brown

 The Eligible Telecommunications Carrier (ETC) designation we grant today is required by federal law before a carrier can receive federal funding. It is also historic.

 Tri-Co can now proceed to get the funding it seeks to construct a Fiber-to-the-Home Broadband network in very high-cost areas of rural Pennsylvania. This fiber network, a network that offers virtually unlimited capacity, is going to provide broadband service to rural consumers at speeds greater than the federal minimum and at affordable rates. This includes eligible low-income consumers under the federal Lifeline program.

 Tri-Co's petition was successful, at least in part, due to a $17.15M funding commitment from Pennsylvania as part of the Office of Broadband Initiative's focus on getting broadband to rural Pennsylvania. We look forward to working with Tri-Co as it deploys this state-of-the-art fiber broadband network and begins to provide service to rural Pennsylvania.

GLADYS M. BROWN, 
Chairperson

[Pa.B. Doc. No. 19-639. Filed for public inspection April 26, 2019, 9:00 a.m.]

_______

¹  The FCC made eligible for Auction 903 certain high-cost census blocks in states where the price cap carriers had declined an earlier offer of model-based support in CAF Phase I, Part 2 and in other unserved areas nationwide (excluding New York, Alaska, Puerto Rico, Virgin Islands) that were not served by an unsubsidized service provider. It was through this competitive bidding process that Tri-Co was a winning bidder in certain high-cost census blocks located in Verizon Pennsylvania, LLC and Verizon North, LLC, service territories and in other extremely high-cost census blocks in unserved areas of rural incumbent local exchange carriers' service territories that were not served by an unsubsidized service provider. It is in these federally-funded census blocks that Tri-Co is seeking federal high-cost ETC designation and will be offering voice and broadband services under federal law consistent with the FCC's public interest obligations.

²  Tri-Co filed supplements on December 14, 2018, January 22, 2019 and February 4, 2019 in response to staff inquiries.

³  48 Pa.B. 6760.

⁴  See Federal-State Joint Board on Universal Service, First Report and Order, 12 FCC Rcd 8776, 8847-76, paras. 130—180 (1997) (Universal Service Order).

⁵  See Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371, 6372, 6380, paras. 2, 20 (2005) (2005 ETC Designation Order).

⁶  See 2005 ETC Designation Order, 20 FCC Rcd at 6372, 6380, paras 1, 20.

⁷  Final Policy Statement on Commonwealth of Pennsylvania Guidelines for Designation and Annual Recertification as an Eligible Telecommunications Carrier (ETC) for Purposes of Federal Universal Service Support, Docket No. M-2010-2164741 (Order entered August 2, 2010) (ETC Guidelines Order).

⁸  In the Matter of Connect America Fund, Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011), aff'd sub nom In re FCC 11-161, 753 F.3d 1015 (10th Cir. 2014) (USF/ICC Transformation Order). The FCC, inter alia, adopted rules that modernized and refocused the federal USF to make affordable broadband access available to all Americans and an inherent part of the universal service concept).

⁹  See USF/ICC Transformation Order, 26 FCC Rcd at 17672, para. 17.

¹⁰  Id.

¹¹  Id. at 17673, paras. 19—25.

¹²  Id. at 17673, para. 20.

¹³  Id. at 17673, paras 22-23.

¹⁴  See Public Notice, Connect America Fund Phase II Auction Closes Winning Bidders Announced FCC Form 683 Due October 15, 2018, AU Docket No. 17-182 and WC Docket No. 10-90 (rel. August 28, 2018) (CAF Auction Results Notice).

¹⁵  Id.

¹⁶  Id.

¹⁷  Id.

¹⁸  Id.

¹⁹  Lifeline and Link Up Reform and Modernization, et al., Report and Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (2012) (2012 Lifeline Reform Order or Lifeline FNPRM).

²⁰  At the current time, federal rules limit the $9.25 Lifeline support to either voice or broadband service. The Lifeline subscriber's $9.25 support is applicable to whatever service a Lifeline consumer may choose to purchase but subscribers cannot receive the $9.25 support separately for each service. However, Lifeline also supports broadband-voice bundles so consumers choosing a bundled package containing voice and broadband service can apply the $9.25 support to that bundle.

²¹  Lifeline and Link Up Reform and Modernization et al., Second Further Notice of Proposed Rulemaking, Order on Reconsideration, Second Report and Order, and Memorandum Opinion and Order, 30 FCC Rcd 7818 (2015) (2015 Lifeline FNPRM); Lifeline and Link Up Reform and Modernization et al., Third Report and Order, Further Report and Order, and Order on Reconsideration, 31 FCC Rcd 3962, 4038, para. 211 (2016) (2016 Lifeline Order); Fourth Report and Order, Order on Reconsideration, Memorandum Opinion and Order, Notice of Proposed Rulemaking, and Notice of Inquiry, 32 Rcd 10475 (2017), vacated and remanded, National Lifeline Association et al. v. FCC, Docket Nos. 18-1026, Order issued February 1, 2019 (D.C. Cir. 2019) (2017 Lifeline NPRM and NOI) (collectively Lifeline Reform Orders).

²²  Along with the federal funding awarded to Tri-Co in the recent CAF II Auction 903 conducted by the FCC, Tri-Co has also been awarded state funding to assist in constructing a fiber optic network to serve residential, business, and institutional customers within a specific geographic area. This state funding includes Pennsylvania Redevelopment Capital Assistance Funds. See Petition at 3. This dedicated federal and Commonwealth funding entails certain conditions and obligations relevant to the deployment of Tri-Co's planned network and provision of broadband access services that are under the purview of the FCC and Pennsylvania Governor's Office of Broadband Initiatives. See Petition at 3, Exhibit 4 at 7, ¶ 16.

²³  At the same time, Tri-Co had filed an Application seeking Certificates of Public Convenience under our orders issued pursuant to the implementation of the federal Telecommunications Act of 1996, 47 U.S.C. §§ 201 et seq. (TA-96) and Chapter 11 of the Public Utility Code (Code) (66 Pa.C.S. §§ 1101 et seq.) to operate as a competitive local exchange carrier (CLEC) and an interexchange carrier (IXC). In December 2018, the Commission approved Tri-Co's application to operate as a CLEC and an IXC. See Application of Tri-Co Connections, LLC for Approval to Offer, Render, Furnish or Supply Telecommunications Services to the Public in the Commonwealth of Pennsylvania as a Competitive Local Exchange Carrier in the Service Territories of: Verizon Pennsylvania LLC; Verizon North LLC; Commonwealth Telephone Company d/b/a Frontier Communications Commonwealth Telephone Company; Frontier Communications of Canton, LLC; Frontier Communications of Oswayo River, LLC; North Penn Telephone Company; and Windstream Pennsylvania, LLC and Application of Tri-Co Connections, LLC for Approval to Offer, Render, Furnish or Supply Telecommunications Services to the Public in the Commonwealth of Pennsylvania as a Detariffed Facilities-Based Interexchange Carrier, Docket Nos. A-2018-3005309 and A-2018-3005312 (Order entered December 6, 2018) (Tri-Co CLEC and IXC Order).

²⁴  See Tri-Co CLEC and IXC Order at 9.

²⁵  Frontier Commonwealth, Tariff Telephone—PA P.U.C. Nos. 23 and 24; Frontier Canton, Tarif Telephone—PA P.U.C. No. 3; Frontier Oswayo, Tariff Telephone—PA P.U.C. No. 5; North Penn, Tariff Telephone—PA P.U.C. No. 2; Verizon North, Tariff Telephone—PA P.U.C. Nos. 1, 3, 5, 6; Verizon PA, Tariff Telephone—PA P.U.C. No. 180A; and Windstream PA, Tariff Telephone—PA P.U.C. No. 7. See Petition, Exhibit 4, Appendix 4 at 1.

²⁶  See Petition at 4.

²⁷  See Petition, Exhibit 4, at 5, ¶ 10.

²⁸  Id.

²⁹  Id.

³⁰  We note that standalone basic local exchange telephone service has not been reclassified as competitive under Section 3016 of the Code, 66 Pa.C.S. § 3016, in any of the ILEC service area exchanges or wire centers where the Company proposes to provide CLEC services.

³¹  ETCs may not charge Lifeline customers a monthly number portability charge. See 47 CFR 54.401(e).

³²  NLAD is a national database that allows service providers to check on a real-time, nationwide basis whether a consumer is already receiving a Lifeline Program-supported service. Thus, the NLAD is used to prevent duplicative Lifeline enrollments. In 2016, the FCC established the Lifeline National Eligibility Verifier (National Verifier) to make eligibility determinations to enroll eligible subscribers into the Lifeline Program. There are a variety of criteria by which an applicant can demonstrate Lifeline eligibility, including income eligibility or participation in various federal assistance programs. USAC, the federal USF administrator, manages both the National Verifier and NLAD. Tri-Co's eligibility, verification, and enrollment processes did not specifically address the use of the National Verifier because it had not yet launched in Pennsylvania. However, as stated infra, Tri-Co's ongoing Lifeline requirement remains subject to future developments for Lifeline service in general under state and federal law.

³³  See Tri-Co's February 4, 2019 supplement at 1.

³⁴  47 U.S.C. § 254(e).

³⁵  47 U.S.C. § 214(e)(2).

³⁶  47 U.S.C. § 214(e)(6).

³⁷  The Commission's ETC designation and related requirements imposed under state and federal law reflect the current requirements recognizing that state and federal law, and the related requirements, may change in response to subsequent developments.

³⁸  See Universal Service Order, 12 FCC Rcd 8776, 8847-76, paras. 130—180.

³⁹  See ETC Designation Order, 20 FCC Rcd at 6380, para. 20 (citing Federal-State Joint Board on Universal Service, Recommended Decision, 19 FCC Rcd 4259, para. 5 (Fed-State Jt. Bd. 2004)).

⁴⁰  In the USF/ICC Transformation Order, the FCC determined that the above ETC equal access requirement was obsolete and deleted it from 47 CFR § 54.202. The FCC stated because this rule was obsolete, it found good cause to delete it without notice and comment. USF/ICC Transformation Order, FCC Rcd 17872, para. 647 and Appendix A.

⁴¹  See 47 CFR § 54.202.

⁴²  21 U.S.C. § 862; 47 CFR § 1.2002(a)-(b).

⁴³  We note that this Order also includes a review of Tri-Co's Petition to ensure consistency with independent Pennsylvania law.

⁴⁴  47 CFR § 54.101 (including both eligible voice telephony and eligible broadband Internet access as services ''supported by federal universal service support mechanisms,'' and characterizing the provision of eligible broadband service as a high-cost public interest obligation); see also USF/ICC Transformation Order, 26 FCC Red at 17691-94, paras. 74—89 (describing the ''core functionalities of the supported services as 'voice telephony service,''' and as a separate condition of receiving federal high-cost universal service support, all ETCs are required to offer BIAS in their supported area that meets certain basic performance requirements).

⁴⁵  See USF/ICC Transformation Order, 26 FCC Red at 17693, paras. 80-81; see also CFR § 54.101(b). The FCC has adopted a similar reasonable comparability rate certification requirement for broadband performance obligations. See Connect America Fund et al., Report and Order, 29 FCC Red 15644, 15686-87, para. 120 (2014) (December 2014 CAF Order).

⁴⁶  47 U.S.C. § 214(e)(1); 47 CFR § 54.101. The FCC has exercised forbearance from the provision requiring that providers must provide supported service using at least a portion of their own facilities for certain wireless Lifeline-only providers. See Virgin Mobile USA, L.P. Petition for Forbearance from 47 U.S.C. § 214(e)(1)(A); Petitions for Limited Eligible Telecommunications Carrier Designation in New York, Pennsylvania, Virginia, North Carolina, and Tennessee, Order, 24 FCC Rcd 3381 (2009) (Virgin Mobile Order).

⁴⁷  Universal Service Order, 12 FCC Red at 8847, para. 128.

⁴⁸  Id. at 8870, para. 169.

⁴⁹  Id. at 8866, para. 160.

⁵⁰  December 2014 CAF Order, 29 FCC Red at 15668 n.43; see also 47 U.S.C. § 153(2) (defining an affiliate as ''a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person'').

⁵¹  Cf. Connect America Fund, Report and Order, 28 FCC Red 7211, 7215, para. 9 (2013) (Phase II Challenge Process Order) (finding that it is not sufficient for a broadband provider to qualify as an ''unsubsidized competitor'' if a consumer must obtain voice service from a third party, because that broadband provider would not be offering a voice service).

⁵²  See Connect America Fund et al., Order on Reconsideration, 33 FCC Red 1380, 1387-88, para. 20 (2018) (rejecting arguments contending that ''because VoIP is provided over broadband networks and over-the-top voice options are available, broadband service providers need only offer broadband as a standalone service,'' and requiring carriers to ''offer VoIP over their broadband network on a standalone basis''); cf. Phase II Challenge Process Order, 28 FCC Rcd 7224, n.21 (explaining that a broadband provider would be considered to be providing voice service if it did so through an affiliated competitive local exchange company or ''through a managed voice solution obtained from a third party vendor. . .so long as the broadband provider is the entity responsible for dealing with any customer problems, and it provides quality of service guarantees to end user customers'').

⁵³  See Petition at 7—9.

⁵⁴  See Petition at 7-8.

⁵⁵  See Petition at 6-7

⁵⁶  See Petition at 6.

⁵⁷  See Universal Service Order, 12 FCC Rcd 8776, 8813, para. 67. Although the FCC's rules define ''local usage'' as ''an amount of minutes of use of wire center service, prescribed by it, provided free of charge to end users,'' the FCC has not specified a number of minutes of use. See 47 CFR 54.101(a)(2). See also Federal-State Joint Board on Universal Service, Recommended Decision, CC Docket No. 96-45, FCC 02J-1 (rel. Jul. 10, 2002).

⁵⁸  See Petition, Exhibit 4, Appendix 4, Proposed Tri-Co Tariff Telephone—Pa. P.U.C No. 1 at 28—43 and Exhibit 5.

⁵⁹  See Petition, Exhibit 4, Appendix 4, Proposed Tariff Telephone—Pa. P.U.C. No. 1 at 49.

⁶⁰  See Petition, Exhibit 4, Appendix 4, Proposed Tariff Telephone—Pa. P.U.C. No. 1, Sec. 4.9, at 43—46.

⁶¹  47 CFR §§ 54.101(a)(2) and (c).

⁶²  See Petition at 7-8.

⁶³  See Petition, Exhibit 4 at 5.

⁶⁴  Id.

⁶⁵  The statutory and regulatory requirement to provide supported Lifeline service through a combination of a carrier's own facilities and those of another carrier has in certain instances been obviated through forbearance by the FCC. See, e.g., Virgin Mobile Order. That forbearance is not at issue in this Petition.

⁶⁶  Petition at 6—9.

⁶⁷  Id. at 9-10.

⁶⁸  Id.

⁶⁹  Id.

⁷⁰  Id.

⁷¹  See January 22, 2019 supplement.

⁷²  See February 4, 2019 supplement.

⁷³  See Petition at 4.

⁷⁴  See Connect America Fund et al., Report and Order, Order and Order on Reconsideration, and Further Notice of Proposed Rulemaking, 31 FCC Red 3087, 3166, 3168, paras. 216, 220 (2016) (eliminating five-year plan and related progress reports for federal rate-of-return and price cap carriers) (2016 Rate-of-Return Reform Order); see also Notice, WCB Reminds Connect America Fund Phase II Auction Applicants of the Process for Obtaining a Federal Designation as an Eligible Telecommunications Carrier, WC Docket Nos. 09-197 and 10-90, Public Notice, 33 FCC Rcd 6696, 6699-6700 (WCB 2019) (Auction 903 ETC Public Notice).

⁷⁵  See Petition at 12-13.

⁷⁶  Id.

⁷⁷  February 4, 2019 supplement, Equipment—No. 2, at 4. Under independent Pennsylvania law, Tri-Co remains subject to Pennsylvania's state emergency service mandates, including the VoIP Freedom Act at 75 P.S. §§ 2251.1—2251.6. See also Eileen Floyd v. Verizon Pennsylvania LLC, Docket No. C-2012-2333157 (Order entered April 30, 2013).

⁷⁸  See Auction 903 ETC Public Notice.

⁷⁹  See Petition at 13.

⁸⁰  See generally In the Matter of Telecommunications Carriers Eligible for Universal Service Support Connect America Fund, Docket Nos. 09-197 and 10-90 (March 28, 2019) (March 2019 CAF ETC Designation Order).

⁸¹  See Petition at 3.

⁸²  See Petition, Exhibit 2.

⁸³  See Petition at 3.

⁸⁴  Petition, Exhibit 4 at 5, para. 10.

⁸⁵  See generally Tri-Co CLEC and IXC Order.

⁸⁶  See Tri-Co CLEC and IXC Order at 5.

⁸⁷  See, e.g., FCC Public Notice, Instructions for Short-Form Application to Participate in the Connect America Fund Phase II Auction Scheduled to Begin on July 24, 2018, AU Docket No. 17-182, (FCC Rel. March 8, 2018), DA 18-182; FCC Public Notice, Technical Guide on Proposed Bidding Procedures for the Connect America Fund Phase II Auction, AU Docket No. 17-182, WC Docket No. 10-90, (FCC Rel. August 4, 2018), DA 17-733.

⁸⁸  Petition at 5-6, paras. 11-12; Exhibit 4, Original Page Nos. 28—30.

⁸⁹  See January 22, 2019 and February 4, 2019 supplements.

⁹⁰  Federal-State Joint Board on Universal Service, Highland Cellular, Inc. Petition for Designation as an Eligible Telecommunications Carrier for the Commonwealth of Virginia, Memorandum Opinion and Order, 19 FCC Rcd. 6422, 6424, para. 4 (2004); Federal-State Joint Board on Universal Service, Virginia Cellular, LLC Petition for Designation as an Eligible Telecommunications Carrier in the Commonwealth of Virginia, Memorandum Opinion and Order, 19 FCC Rcd 1563, 1565. para. 4 (2004).

⁹¹  Notwithstanding Pennsylvania state law, a state commission must allow an ETC to relinquish its designation in any area served by more than one ETC pursuant to Section 214(e)(4) of the Act if conditions are met. See 47 U.S.C. § 214(e)(2). The relinquishing ETC must provide advance notice of such relinquishment to the state commission. Prior to allowing the relinquishing carrier to cease providing universal service, the state commission must require the remaining ETC or ETCs to ensure that all customers served by the relinquishing carrier will continue to be served. The state commission also must require sufficient notice to the remaining ETC or ETCs to permit the purchase or construction of adequate facilities, with such purchase occurring within a specific time period. See 47 U.S.C. § 214(e)(4).

⁹²  See December 2014 Connect America Order, Report and Order, 29 FCC Rcd 15644, 15663-71, paras. 50—70.

⁹³  47 U.S.C. § 214(e)(4) (emphasis added).

⁹⁴  2005 ETC Designation Order, 20 FCC Rcd at 6386, para 36. The FCC stated that under Section 214(e)(4) of the Act, the state commission or, in the case of a common carrier not subject to state commission jurisdiction, the FCC ''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.'' However, prior to allowing the carrier to cease providing universal service in the area, the remaining ETC or ETCs will be required to ensure that all customers served by the relinquishing carrier will continue to be served. Furthermore, under Section 251(h)(2) of the Act, the Commission may treat another carrier as the incumbent LEC if that carrier occupies a position in the market that is comparable to the position occupied by the incumbent LEC, if such carrier has substantially replaced an incumbent LEC, and if such treatment is consistent with the public interest, convenience and necessity. Moreover, applicable Pennsylvania law notwithstanding, ILECs seeking to relinquish their ETC designations will remain obligated, however, to maintain existing voice service unless and until they receive authority under 47 U.S.C. § 214(a) to discontinue that service. They also will remain subject to the obligation to offer Lifeline service to qualifying low-income consumers or households throughout their service territory.

⁹⁵  47 CFR § 54.207(a).

⁹⁶  47 CFR § 54.207(b).

⁹⁷  47 U.S.C. § 254(e) (stating that only an ETC is ''eligible to receive specific Federal universal service support'').

⁹⁸  See 47 U.S.C. § 214(e)(5); see also Universal Service Order, 12 FCC Rcd at 8880-81, paras. 187-88 (1997).

⁹⁹  See 47 U.S.C. § 214(e)(5); see also 47 CFR § 54.207(b).

¹⁰⁰  47 U.S.C. § 214(e)(5); 47 CFR § 54.207(c), (d).

¹⁰¹  See Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Red 5949, 6005-09, paras. 157—168 (2016) (Phase II Auction Order).

¹⁰²  Id. at 6006, paras. 159—61.

¹⁰³  Id. at 6006, para. 159.

¹⁰⁴  Id at 6006-09, paras. 162—68.

¹⁰⁵  Id. at 6008, para. 165. It does not appear to us that the high-cost CBGs where Tri-Co is a successful bidder are the low cost/high density areas that historically have been the focus of the FCC's cream skimming analysis. Rather, these areas are high-cost or extremely high-cost by virtue of their inclusion in Auction 903.

¹⁰⁶  Id.

¹⁰⁷  Id.

¹⁰⁸  See 47 CFR § 1.2002.

¹⁰⁹  See Petition at 24.

¹¹⁰  See Petition at 4 and Exhibit 5.

¹¹¹  See generally March 2019 CAF ETC Designation Order.

¹¹²  Id. at 2 and 4, paras. 3 and 9.

¹¹³  Id.

¹¹⁴  2016 Lifeline Order, 31 FCC Rcd at 4007, para. 128.

¹¹⁵  47 CFR § 54.410(c) and (d).

¹¹⁶  47 CFR § 54.416

¹¹⁷  Because the FCC's Lifeline Reform Order discontinued the Link-Up support from the federal USF, all references to Link-Up programs are now inapplicable.

¹¹⁸  We note that many Pennsylvania-specific requirements set forth in our PA Lifeline Order such as the requirements for certification and verification of a customer's initial and continued eligibility for Lifeline services have been impacted by Lifeline developments at the federal level. For example, the creation of the NLAD at 47 CFR § 54.404, has led to changes in the Pennsylvania-specific requirements for eligibility verification.

¹¹⁹  In Re: Lifeline and Link-up Programs, Docket No. M-00051871 (Order entered May 23, 2005) (PA Lifeline Order).

¹²⁰  Re: Section 3015(f) Review Regarding Lifeline Tracking Report, Accident Report, and Services Outage Report, 100 Pa. P.U.C. 553 (Dec. 30, 2005) (Tracking Report Order).

¹²¹  Both Pennsylvania and the FCC eliminated the Lifeline's subscriber ability to self-certify annually.

¹²²  See generally PA Lifeline Order and 47 CFR § 54.410.

¹²³  As previously stated in the discussion of Section 54.410 of the FCC regulations, ETCs designated in Pennsylvania must provide our BCS copies of the reports submitted to USAC for purposes of low-income USF support, these reports include, among others, those listed in our PA Lifeline and Tracking Report Orders.

¹²⁴  In its February 4, 2019 supplement, Tri-Co has expressly provided BCS with direct contact information for Tri-Co staff to resolve Lifeline-related issues.

---

No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.

---