WIXLIB

Resolution T-17729DRAFTAgenda ID# 19448(Rev. 1)CD/KCHItem# 8PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIACommunications DivisionCarrier Oversight and Program BranchRESOLUTION T-17729June 3, 2021RESOLUTIONResolution T-17729. Approving IM Telecom, LLC, dba Infiniti Mobile, to be designated asan Eligible Telecommunications Carrier and authorized as a California LifeLine Provider tooffer prepaid wireless telephone services supported by both the federal Lifeline programand the California LifeLine Program throughout California.SUMMARYThis Resolution approves the request of IM Telecom LLC, dba Infiniti Mobile (U-4457-C)(IM Telcom), a wireless reseller to be designated as an Eligible Telecommunications Carrier(ETC) by the California Public Utilities Commission (Commission or CPUC). Additionally,the Commission also approves IM Telecom as an authorized California LifeLine ServiceProvider. This Resolution authorizes IM Telecom to provide discounted prepaid wirelesstelephone services to eligible low-income households throughout California, includingservice areas of the Uniform Regulatory Framework carriers1 and the Small Local ExchangeCarriers2 where its underlying carriers, AT&T Mobility, T-Mobile, and Verizon Wireless,provide wireless service. IM Telecom will not serve federally recognized Tribal Lands atthis time.This Resolution specifically approves the following prepaid wireless plans as eligible forboth federal Lifeline and California LifeLine support: 31The URF carriers are AT&T California, Consolidated Communications, Frontier California, Inc., FrontierCommunications of California, and Frontier of the South West.2The Small LECs group is composed of Calaveras Telephone Co. (U-1004-C), Cal-Ore Telephone Co. (U-1006-C),Ducor Telephone Co. (U-1007-C), Foresthill Telephone Co. (U-1009-C), Happy Valley Telephone Co. (U-1010-C),Hornitos Telephone Co. (U-1011-C), Kerman Telephone Co. (U-1012-C), Pinnacles Telephone Co. (U-1013-C),Ponderosa Telephone Co. (U-1014-C), Sierra Telephone Co. (U-1016-C), Siskiyou Telephone Co. (U-1017-C), VolcanoTelephone Co. (U-1019-C), Winterhaven Telephone Co. (U-1021-C), and Frontier Communications West Coast(U-1020-C). These telephone companies generally operate in rural areas and have regulated rates.3 Service plans must be updated according to CPUC’s D.20-10-006. Also see In the Matter of Lifeline and Link upReform and Modernization, Telecommunications Carriers Eligible for Universal Service Support, Connect AmericaFund, Order, WC Dkts. 11-42, 09-197, & 10-90, (DA 20-1358), Released November 16, 2020.385963657377967816

Resolution T-17729CD/KCH DRAFTJune 3, 2021Basic Plan – Unlimited voice and text with 4.5 GB data for 0 per month (Free newhandset) Retail price: 24.10.Standard Plan - Unlimited voice and text with 6 GB data for 0 per month (Free newhandset) Retail Price: 28.10.IM Telecom’s rate plans are subject to a 39 activation fee, which the company will seekreimbursement from the California LifeLine Program for eligible households. IM Telecomis responsible for any activation/connection fee that is not eligible for reimbursement fromthe California LifeLine Program.4IM Telecom’s Advice LetterOn August 8, 2019, IM Telecom submitted Tier 3 Advice Letter (AL) 7 to the CPUCrequesting ETC designation to offer prepaid wireless services to low-income householdsthrough the California LifeLine Program and federal Lifeline program. 5 IM Telecom doesnot seek federal high-cost fund support.On December 11, 2019, IM Telecom filed supplement AL 7A to update information on theunderlying service providers and service areas and a change in company management.On February 23, 2021, IM Telecom filed supplement AL 7B at Staff’s request to update itsservice offerings consistent with CPUC Decision 20-10-006.BACKGROUNDFederal ETC Designation RequirementsIn order to receive federal universal service support, an applicant must be designated as anETC. Section 254(e) of the federal Telecommunications Act of 1996 (the Act) states that“only an eligible telecommunications carrier under section 214(e) shall be eligible to receivespecific federal universal service support.”6State commissions are given the primary responsibility for designating ETCs in their states.Section 214(e)(2) of the Act states that, “[u]pon request and consistent with the publicinterest, convenience, and necessity, the state commission may, in the case of an area4IM Telecom AL 7B, p. 4.5IM Telecom AL 7, p. 2.647 C.F.R. §§ 54.400 et seq. contains the Federal Communications Commission’s (FCC) Lifeline rules issued toimplement § 254 of the Act.2

Resolution T-17729CD/KCHDRAFTJune 3, 2021served by a rural telephone company, and shall, in the case of all other areas, designatemore than one common carrier as an eligible telecommunications carrier for a service areadesignated by the state commission”7 so long as the requesting carrier meets therequirements of Section 214(e)(1).Section 214(e)(1) of the Act provides that, a common carrier designated as an ETC mustoffer services supported by the federal Universal Service Fund (USF) throughout thedesignated service area either by using its own facilities, resale, or by a combination of itsown facilities and resale of another carrier’s services and must advertise the services andthe related charges using advertising media of general distribution throughout thedesignated service area.8 Advertising must include the availability of federal Lifelineservices in a manner reasonably designed to reach those likely to qualify for those services.In addition to meeting the public interest standard, the FCC rules require that a carrierrequesting ETC designation must:1. Certify that it will comply with the service requirements applicable to thesupport that it receives;2. Submit a five-year plan that describes proposed improvements or upgrades tothe applicant’s network throughout its proposed service area. Wirelessapplicants providing Lifeline-only service are not required to submit a five-yearplan; 93. Demonstrate its ability to remain functional in emergency situations;4. Demonstrate that it will satisfy applicable consumer and service qualitystandards; 105. Demonstrate that it is financially and technically capable of providing the federalLifeline service, specifically whether the applicant previously offered services tonon-Lifeline consumers, how long it has been in business, whether the applicantintends to rely exclusively on USF disbursements to operate, whether theapplicant receives or will receive revenue from other sources, and whether it has747 USC § 214(e)(2).847 USC § 214(e)(1).9 See Inthe Matter of Lifeline and Link-up Reform and Modernization, Lifeline and Link-up, Federal-State Joint Board onUniversal Service, Advancing Broadband Availability Through Digital Literacy Training, Report and Order and FurtherNotice of Proposed Rulemaking, WC Dkt Nos. 11-42, 03-109, and 12-23, and CC Dkt. 96-45 (FCC 12-11), releasedFebruary 6, 2012, para. 386.10 Id., ¶389. Also see 47 C.F.R. § 54.422 – Annual reporting for ETCs receiving low-income support. Also see G.O. 133D, §4.3

Resolution T-17729CD/KCHDRAFTJune 3, 2021been subject to any enforcement action or ETC revocation proceedings in anystate; and116. Submit information describing the terms and conditions and rates of any voicetelephone service plans offered to federal Lifeline participants. Wirelessapplicants must comply with the Cellular Telecommunications and InternetAssociation’s Consumer Code for wireless service. 12CPUC ETC Designation RequirementsA carrier seeking an ETC designation also must comply with CPUC’s ETC rules. InResolution T-17002 (May 25, 2006), the CPUC adopted The Comprehensive Procedures andGuidelines for ETC Designation and Requirements for ETCs that are consistent with FCCUniversal Service Order 97-15713 regarding designation of a telephone carrier as a qualifiedETC. Pursuant to this Resolution, applicants seeking ETC designation in California arerequired to provide the following:1.2.3.4.5.6.7.A description of the proposed service offerings and attached service area maps;A description of the advertising plan(s);A statement of commitment to provide service;Submission of the 2-year service quality improvement plan;A showing of the ability to remain functional in emergencies;A statement of commitment to consumer protection;Demonstration that a carrier’s usage plan is comparable to that of the incumbentLEC in the proposed service area; and8. A public interest determination.In addition to Resolution T-17002 ETC designation rules (or its successor), carriersrequesting ETC designation must also comply with General Order (GO) 153 and all relatedCalifornia LifeLine Program rules, orders, decisions, resolutions, and federal Lifeline rules.Carriers must also comply with CPUC User Fee and surcharge obligations.14 The CPUCUser Fee is levied on all telecommunications carriers providing services directly tocustomers and the amount of fees is a percentage calculation based on all intrastatecustomer billings for telecommunications services. All telecommunications service11Id., ¶¶387-388.1247 C.F.R. §§ 54.201 and 54.202(a).13See In the Matter of Federal-State Joint Board on Universal Service, Report and Order, CC Dkt. 96-45 (FCC 97-157),released May 8, 1997.14 See: https://www.cpuc.ca.gov/General.aspx?id 11244

Resolution T-17729CD/KCHDRAFTJune 3, 2021providers are also required to collect and remit public purpose program surcharges fromend-users. These surcharges fund the CPUC’s universal service programs.California LifeLine Program RequirementsThe purpose of the California LifeLine Program is to provide high quality, residentialtelephone service at affordable rates to low-income citizens of California. The CaliforniaLegislature directed the CPUC to ensure that the program has essential consumerprotections and is competitively neutral. A carrier seeking to be a California LifeLineprovider must comply with the CPUC’s California LifeLine rules and requirements setforth in Public Utilities Code § 871 et seq., GO 153, and various CPUC decisions including,but not limited to, D.20-10-006, D.17-01-032, D.14-01-036 and D.10-11-033. The carrier alsomust comply with all applicable CPUC rules, orders, decisions, resolutions, the PublicUtilities Code, and federal Lifeline rules.In order to become a California LifeLine provider, a carrier must generally demonstrate thefollowing:1) It has a valid, active operating authority issued by the CPUC;152) It is current in its remittance of CPUC User Fees and public purpose programsurcharges;163) Its proposed offerings meet the CPUC’s California LifeLine service elements;174) Its disclosures, schedule of rates and charges, and terms and conditions arethorough and consistent with state and federal rules;5) Its marketing and selling methods are consistent with D.14-01-036 and 47 C.F.R. §54.405(b); and6) Its provisioning process is consistent with and in compliance with the CaliforniaLifeLine Administrator’s enrollment process, validation checks, transmissionrequirements, and efforts to prevent waste, fraud, and abuse.1815See OP 3 of D.14-01-036.16See GO 153 §§ 9.5.3.1., 9.8.5, 9.8.6, 9.9.2, 10, and 11 and Ordering Paragraph 21 of D.13-05-035.17See OP 26.a. of D.14-01-036, Attachment D, See also GO 153, Appendix A as adopted in D.14-01-036.18On February 14, 2014, the CPUC’s Communications Division issued an administrative letter titled“Guidance for Service Providers Interested in Offering California LifeLine Wireless Services Consistent withDecision 14-01-036.”(Administrative 20-0BE4-4811-B545-64AF0349382F/0/CDAdvice Letter Filing Components CaLLWireless APPROVED 021414.pdf). This Administrative Letter provides instructions and guidance for acarrier seeking to become a California LifeLine provider to offer California LifeLine wireless services.5