rvic November

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1 rvic 201 Brooks Street, P.O. Box 812 Charleston, West Virginia Phone: (304) Fax: (304) November Electronic Service Only J. Andrew Gipson, Esq. Counsel, Boomerang Wireless Jones Walker LLP PO Box 427 Jackson, MS RE: Case No C-T Boomerang Wireless, LLC dba entouh Wireless Dear Mr. Gipson: Pursuant to Rule 4.3.c of the Commission s Rules of Practice and Procedure the Staff memorandum issued today was served via on the above-listed parties. If you wish to respond to the Staff memorandum, you may do so in writing, within 10 days, unless directed otherwise, of this date. You will not receive a copy of the Staff Memorandum by regular mail. Your failure to respond in writing to the utility s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice. Please note - the Public Service Commission does not accept electronic filings. Therefore, if you wish to respond to the Staff Memorandum you must do so in writing submitted to the Executive Secretary s Office at the above address. Sincerely, I F/s Enc. Memo Ingrid Ferrell, Director Executive Secretary Division

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA UTILITIES DIVISION INITIAL AND FINAL RECOMMENDATION DATE: November 19, TO: FROM: Re: Ingrid Ferrell, Executive Secretary a4 David Kennedy, Utilities Analyst Utilities Division Boomerang Wireless, LLC DBA entouch Petition to Revise Tariff Previously Approved by the Commission On October 19, Boomerang Wireless DBA entouch Wireless (Boomerang, Petitioner) filed a letter advising the Commission of its intent to revise its existing tariff Wireless Service Tariff (W PSC No. 1) previously approved and on file. The Petitioner requests an effective date of December 1, The purpose of this filing is to increase the allotment of broadband data given to Lifeline customers pursuant to the FCC s Lifeline Reform Order and relevant supporting regulations. The Lifeline Program is an offering designed to help qualified lowincome individuals pay for their Local Exchange Service. Such qualified low-income customers will receive a federal credit reducing the rate for local telephone service. Prior Commission Action involving the Petitioner s Eligible Telecommunications Carrier Status On October 31, 2012, in Case No C-PC the Commission granted Boomerang Wireless certification as an Eligible Telecommunication Carrier (ETC) pursuant to Section 214(e)(2) of the Telecommunications Act of 1996 for the sole purpose of providing wireless Lifeline service to qualifying low income customers in the Sprint and Verizon West Virginia wireless territories. The Commission s order did not authorize the Petitioner to seek High Cost Universal Service Fund (USF) reimbursement. This case becanzejinal on November 20, 2012

3 Page 2 On July 6, 2016 in Case No C-PC the Commission granted Boomerang permission to expand its wireless Lifeline designation to include areas served by AT&T and TMobile. The order further stated that the expanded ETC designation did not include High Cost support. On October 27, 2016 in Case No T-PC the Commission granted consent and approval for Boomerang Wireless, LLC DBA EnTouch Wireless and Budget Prepay, Inc., DBA Budget Mobile to transfer some of Budget s customers to Boomerang. Lifeline Modernization Order and Relevant FCC Regulations The FCC in its Lifeline Modernization Order pointed out that 64.5 million people are without an Internet connection. The biggest reason these Americans do not sign up for broadband today is cost. Only half of all households in the lowest income tier subscribe to broadband service and 43% say the biggest reason for not subscribing is the cost of the service. Moreover, of the low income consumers who have subscribed to mobile broadband, over 40% cancel or suspend service due to financial constraints. In short, the order concludes that affordability remains the primary barrier to broadband ad~ption.~ In particular, the FCC s order implemented a five and one-half year transition to gradually decrease voice support levels and increase mobile voice and data requirements. On and after December 1, 2019, the minimum standard will be calculated using the mechanism set forth in FCC Rule (~)(2) (ii) (A-D). Accordingly,-Mobile broadband will have minimum service standards for speed and capacity. The standards will be updated as follows: This Case became final on July 26, 2016 Budget Prepay MXZS designuted an ETC on August 16, 2012 in Case No T-PC Lifeline Modernizalion Order at Parugraph 2 5FCC THIRD REPORT AND ORDER, FURTHER REPORT AND ORDER, AND ORDER ON RECONSIDERATION Adopted: March 31, Released: April 27, (Lifeline Modernization Order) at Paragraph 6

4 Page 3 (A) Dividing the total number of mobile-cellular subscriptions in the United States, as reported in the Mobile Competition Report by the total number of American households, as determined by the US. Census Bureau, in order to determine the num ber of mobile-cellular subscriptions per American household. This number will be rounded to the hundredths place and then multiplied by; (B) The percentage of Americans who own a smart phone, according to the Commission s annual Mobile Competition Report. This number will be rounded to the hundredths place and then multiplied by; (C) The average data used per mobile smart phone subscriber, as reported by the Commission in its annual Mobile Competition Report. This number will be rounded to the hundredths place and then multiplied by; (0) Seventy (70) percent. The result will then be rounded up to the nearest 250 MB interval to provide the new monthly minimum service standard for the mobile broadband data usage all0wance.~47 CFR (c) (2) (ii) If the Wireline Competition Bureau does not release a Public Notice giving new minimum standards for mobile broadband capacity on or before July 3 1, or if the necessary data needed to calculate the new minimum standard are older than 18 months, the data usage allowance will be updated by multiplying the current data usage allowance by the percentage of the year-over-year change in average mobile data usage per smart phone user, as reported in the Mobile Competition Report. That amount will be rounded up to the nearest 250 MB.7 On July 18, 2018, the FCC s Wireline Competition Bureau announced the updated minimum service standard for speed and usage allowance for Lifeline supported services as required by the 2016 Lifeline Order. Beginning December 1, 2018, the Lifeline minimum service standard for mobile broadband data usage will increase to 2 GB per month. The Lifeline minimum service standard for mobile broadband speed remains 3G mobile technology.9 Mobile voice telephony minimum service standard. The 2016 Lifeline Order established an automatic update to the Lifeline minimum service standard for mobile voice service through November 30, Beginning December 1,

5 Page , the Lifeline minimum service standard for mobile voice service will increase to 1000 minutes per month.* With regard to bundled service for voice and broadband service, the Modernization Order allows Lifeline support as long as one of the supported services offered satisfies the minimum service requirements. In other words, the discount may be applied to a mobile bundle of voice and data services so long as either the voice service or the data service meets the applicable minimum service ~tandard.~ Stuff Conclusions and Final Recommendation Staff recommends approval of the request by Boomerang Wireless, LLC to revise its W PSC Tariff No. 1 and recommends acceptance and filing of Third Revised Page No. 2 and Third Revised Page No. 25. As the revision increases the benefit given to Lifeline customers, Staff recommends approval of an effective date of December I, Finally, Staff recommends that the utility file the revised tariff pages with the Commission s Tariff Office in accordance with the Rules & Regulations for the Government of the Construction & Filing of Targs of Public Utilities & Common Carrier by Motor Vehicle. [Title 150, Series 21 Each page should state Issued by authority of an Order of the Public Service Commission of West Virginia in Case No. 93 dated Lifeline Modernization Order at Paragraph 64 and 102; PUBLIC NOTICE DA Released: July 18, 2018 WIRELINE COMPETITION BUREAU ANNOUNCES UPDATED LIFELINE MINIMUM SERVICE STANDARDS AND INDEXED BUDGET AMOUNT WC Docket No ; See 47 CFR (b)(2)(iij(C); (b)(2)(i); (6)(3)(iiij 9 Lifeline Modernization Order at Paragraph 67