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ROWNRUDNICK One AMY I. TIERNEY Financial direct dial: (617) 856-8113 Center fax: (617) 289-0443 Boston [email protected] Massachusetts 02111 tel 617.856.8200 June 1, 2012 fax 617.856.8201 VIA HAND DELIVERY AND E-FILE Catrice C. Williams, Secretary Department of Telecommunications and Cable 1000 Washington Street 8th Floor, Suite 820 Boston, MA 02118-6500 RE: D.T.C. 12-4 - T-Mobile Northeast LLC Petition for Limited Designation as an Eligible Telecommunications Carrier for Purposes of Low Income Support Only Dear Ms. Williams: Enclosed for filing in the above-captioned proceeding, please find an original and three (3) copies of the following: 1. Post- Hearing Brief of T-Mobile Northeast LLC; and 2. T-Mobile's Responses to Record Requests Nos. 1 through 14 ("Responses"). Redacted copies of the Responses are provided with this letter while confidential copies are provided to the Hearing Officer. Additionally, I have enclosed the requisite Certificate of Service. Please note that the responses to RR 10 and RR 11 contain confidential materials which were the subject of T-Mobile's Motion for Confidential Treatment dated April 25, 2012. Please call me if you have any questions with respect to this matter. Sincerely, BROWN RUDNICK LLP Amy I.Tie Enclosures AIT:ljr cc: Betsy Whittey, Hearing Officer (w/enc. via hand delivery) Paul Abbott, General Counsel (w/enc. via hand delivery) Kalun Lee, Deputy General Counsel (w/enc. via hand delivery) Karlen Reed, Director, Competition Division (w/enc. hand delivery) Michael Mael, Competition Division (w/enc. via hand delivery) Michael Scott, Legal Division (w/enc. via hand delivery) Michele Thomas, Esq. (w/enc. via email) Paul G. Afonso, Esq. (w/enc. via email) 60550487 vl-Wo rkSiteU S-026311/0009 Brown Rudnick LLP an international law firm Boston I Dublin I Hartford I London I New York I Providence I Washington COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF TELECOMMUNICATIONS AND CABLE ) In the Matter of ) ) T-Mobile Northeast LLC ) D.T.C. 12-4 ) Petition for Limited Designation as an ) Eligible Telecommunications Carrier ) For Purposes of Lifeline Support Only ) ) POST-HEARING BRIEF OF T-MOBILE NORTHEAST LLC Paul G. Afonso Amy I. Tierney Brown Rudnick LLP One Financial Center Boston, MA 02111 Tel: 617.856.8200 Fax: 617.856.8201 Michele Thomas Principal Corporate Counsel — State Regulatory T-Mobile USA, Inc. 4 Sylvan Way Parsippany, NJ 07054 Tel: 973-451-8399 Fax: 866-836-6868 June 1, 2012 I. INTRODUCTION 1 A. Description of T-Mobile's Lifeline Offering 1 B. Procedural History 2 C. T-Mobile's Previous ETC Designations 3 II. JURISDICTION AND STANDARD OF REVIEW 4 III. TIMELY DESIGNATION OF T-MOBILE AS AN ETC FOR THE PURPOSES OF OFFERING LIFELINE IS IN THE PUBLIC INTEREST 5 A. T-Mobile's Lifeline Offerings Will Provide Lifeline Customers With Increased Consumer Choice at Affordable Rates 5 B. T-Mobile's Lifeline Offerings Will Provide Lifeline Customers With Quality Lifeline Offerings 6 IV. T-MOBILE ESTABLISHED THAT IT MEETS ALL STATUTORY AND REGULATORY REQUIRMENTS FOR ELIGIBLE TELECOMMUICATIONS CARRIER DESIGNATION 8 A. T-Mobile Is a Common Carrier 8 B. T-Mobile Will Provide All of the Supported Services in its Lifeline Offerings 8 C. T-Mobile Will Use Its Own Facilities to Provide Lifeline Service and All of the Supported Services Throughout Its Designated Service Area 8 D. T-Mobile Will Advertise the Availability of Its Lifeline Offerings Using Media of General Distribution 9 E. T-Mobile Meets the Additional Requirements for Designation as an ETC 10 1. T-Mobile Has Demonstrated Compliance With Applicable Service Requirements 10 2. T-Mobile Has Demonstrated Its Ability to Function in Emergency Situations 10 3. T-Mobile Has Demonstrated That It Will Satisfy All Consumer Protection and Service Quality Standards 1 1 4. T-Mobile Has Demonstrated Its Financial and Technical Capability To Provide Lifeline Service 12 5. T-Mobile Has Provided, and Will Continue to Provide, Information on Its Lifeline Service Offering 13 F. T-Mobile Will Comply With All Applicable Reporting and On-Going Operational Requirements 14 1. Federal Communications Commission Requirements 14 2. Massachusetts Department of Telecommunication and Cable Requirements 17 G. T-Mobile Will Take Additional Steps To Prevent Waste, Fraud and Abuse 18 V. CONCLUSION 19 I. INTRODUCTION On March 7, 2012, T-Mobile Northeast LLC, a wholly-owned subsidiary of T-Mobile USA, Inc., ("T-Mobile" or the "Company") filed a petition with the Department of Telecommunications and Cable ("DTC or "Department") seeking designation as an Eligible Telecommunications Carrier ("ETC") in the Commonwealth of Massachusetts pursuant to Section 214(e)(2) of the Communications Act of 1934, as amended ("the Act"), for the limited purposes of offering Lifeline service to qualified low-income consumers and receiving Federal Universal Service Fund ("FUSF") support for such services provided within T-Mobile's designated service area in Massachusetts.' T-Mobile has demonstrated its full compliance with all applicable Federal Communications Commission ("FCC") rules and orders, as well as the requirements of this Department as set forth in its previous orders designating ETCs. 2 Moreover, the timely designation of T -Mobile as an ETC is in the public interest because it will provide Massachusetts' low-income consumers with access to additional competitive choices for affordable wireless service from a facilities-based provider. Accordingly, based on the complete record in this matter, the Department should expeditiously designate T-Mobile as an ETC for the limited purposes of proving Lifeline services in Massachusetts. A. Description of T-Mobile's Lifeline Offering Upon designation as an ETC, consistent with 47 C.F.R. § 54.405, T-Mobile will make available to qualified low-income consumers a discounted service offering that meets all applicable federal and state Lifeline requirements. 3 T-Mobile's Lifeline service offering includes a low $9.99 per month Lifeline rate based upon a non-discounted rate of $19.99 per month (less I Exh. 1. 2 T-Mobile notes that the Department issued a Notice regarding revised Lifeline reporting requirements on May 24, 2012. In reviewing these reporting requirements, T-Mobile intends to comply with any and all requirements that are applicable to our Lifeline offerings and consistent with current federal requirements. 3 See In the Matter of Lifeline and Link Up Reform and Modernization, Report and Order and Further Notice of Proposed Rulemaking, WC Docket No. 11-42, FCC 12-11, released February 6, 2012 ("Lifeline Reform Order"). 1 the $10.00 Lifeline discount) 4, 145 Whenever minutes®, 500 night minutes, and 500 weekend minutes per month, with a per minute overage rate of $0.05, and traditional wireless calling features including call waiting, conference calling, three-way calling, caller identification, voice mail, and access to affordable handsets. (119.99 Offering"). 5 The $19.99 Offering also allows qualified subscribers to purchase certain optional features such as handset insurance, text messaging, and others. 6 T-Mobile plans to expand its Lifeline offerings to include: (1) T- Mobile's Monthly 4G Plans, (2) T-Mobile's Classic Plans for Families and Individuals; (3) T- Mobile's Value Plans for Families and Individuals; and (4) T-Mobile's Wal-Mart Family Mobile plan.7 These plans will offer Massachusetts Lifeline customers a wide-variety of service offerings to choose from including several no contract plans that do not have either Early Termination Fees or Activation Fees. 8 T-Mobile intends to begin offering the Lifeline discount on the Monthly 4G Plans and T-Mobile's Wal-Mart Family Mobile plan within a matter of weeks of receiving the requisite Department approvals. 9 All T-Mobile Lifeline plans allow customers to check their balance of minutes free of charge.' Both the $19.99 Offering and the pay in advance services provide eligible Lifeline customers access to T-Mobile's advanced communication network and its ongoing commitment to quality of service. B. Procedural History On March 7, 2012, T-Mobile filed its Petition with the Department for Limited Designation as an Eligible Telecommunications Carrier for the Purposes of Lifeline Support 4 T-Mobile will offer qualified consumers a Lifeline discount of the $9.25 federal discount amount, plus a $.75 Company additive for a total discount of $10.00 on all Lifeline offerings in Massachusetts. Exh. IR 1-6(a); Transcript of the May 16, 2012 Hearing before the Department in this proceeding ("Tr.") at 37:15-23. The FCC's Lifeline Reform Order eliminated the previous system of tiered support and set a rate of $9.25 effective May 1, 2012. See, WC Dkt. No-11-42 et al. FCC Dkt. No. 96-45, DA 12- 493(Wireline Comp. Bur. Mar. 29, 2012). 5 Exh. 1 at 12-13; see Exh. IR 1-7; Exh. 1-13; see also Tr. at 26:24 -27:5. 6 Exh. IR 1-7. 7 Exh. IR 1-11, Exh. D; Exh. 1-11 (Supp.), Exh. D (Supp.); RR 8. See id.; see also Tr. at 86:24-87:17. 9 See Tr. at 87:21-88:3. io RR 2. 2 Only." On April 2, 2012, the Department issued a Notice of Public Hearing, Order of Notice, Procedural Schedule, and the Department's First Set of Information Requests. T-Mobile timely published the Department's Notice of Public Hearing in accordance with the Department's Notice of Hearing, and proof of such publication was filed on May 3, 2012. 12 On April 25, 2012, T-Mobile served its Objections and Responses to the Department's First Set of Information Requests and supplemented those responses on April 30, 2012. 13 No parties objected to, or intervened in, this proceeding.