nexus communications, inc. dba
TRANSCRIPT
4 LAW OFFICES
KAUFFFI71 @ KAUl--f-lzLl - - - ~
300 CAPITOL STREET STE 803
CHARLESTON, WEST VIRGINIA 25301 MAILING ADDRESS P 0 BOX 3082
JAMES D KAUFFELT MARK E KAUFFELT (304) 345-1272
T D KAUFFELT OF COUNSEL
- CHARLESTON, W 25331-3082 FAX (304) 345-1280 June 3,2009
Sandra Squire Executive Secretary Public Service Commission of WV 201 Brooks Street P.O. Box 812 Charleston, WV 25323
Re: Nexus Communications, Inc. dba TSI
Dear Ms. Squire:
Enclosed for filing in the above-styled case is the original and twelve copies of the *‘Petition of Nexus Communications, Inc., dba TSI for Designation as an Eligible Telecommunications Carrier in the State of West Virginia for the Limited Purpose o f Offering Lifeline and Link Up Service to Qualified Households.”
Thank you for your attention to this matter.
Very truly yours,
Mark E. Kauffelt
MEWmmw Enclosures xc: C. Terry Owen, Esquire
Nexus Communications, Inc.
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Beforethe PUBLIC SERVICE COMMISSION OF WEST VIRGINIA
) In the Matter of )
1 Petition of Nexus Communications, Inc., dba TSI ) Docket No. For Designation as an Eligible Telecommunications Carrier in the State of West Virginia for the Limited Purpose of offering Lifeline and Link Up Service to
) ) )
Qualifying Households 1 1
PETITION OF NEXUS COMMUNICATIONS, INC., DBA TSI FOR DESIGNATIONAS AN ELIGIBLE TELECOMMUNICATIONS CARRIER
IN THE STATE OF WEST VIRGINIA FOR THE LIMITED PURPOSE OF OFFERING LIFELINE AND LINK UP SERVICE TO QUALIFIED HOUSEHOLDS
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TABLE OF CONTENTS
I. Background 5
11. Nexus Meets the Requirements For Designation as an Eligible Telecommunications Carrier to Serve the Designated Areas in The State of West Virginia 8
9 A. The Commission has Jurisdiction to Designate Nexus as an ETC Nexus Offers All of the Required Services and Functionalities
B. Nexus Offers all of the Required Services and Functionalities 10
C. Nexus Will Provide the Services Designated for Support Through The Use of its Own Facilities and Resale of Another Carrier’s 14
D. Nexus Will Advertise the Availability of the Services That Are Designated for Support 19
E. Nexus Request Designation Throughout the Geographic Area Served by Non-Rural Provier Verizon West Virginia, Inc. 20
F. Nexus Will Provide Service Throughout its Proposed Designated Service Area to all Customers Making a Reasonable Request for Service and Will Do So Within a Reasonable Time 21
G. Nexus Has the Ability to Remain Functional in Emergency Situations 21
H. Nexus Will Satisfy Consumer Privacy Protection And Service Quality Standards 22
I. Nexus Offers a Local Usage Plan Comparable to Those Offered by the Incumbent Local Exchange Carrier 23
J. Nexus will Provide Equal Access 25
111. Designation of Nexus as an ETC in the State of West Virginia Will Serve the Public Interest 25
A. The Benefits of Increased Competitive Competition 27
B. The Unique Advantages of Nexus’ Service Offerings 29
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C. Nexus Wireless Lifeline Plan 30
D. Nexus Link Up Plan 31
E. Designation of Nexus as an ETC Will Benefit Low Income Consumers in the State of West Virginia 32
F. A Grant of This petition Will Impose a Negligible Burden 33 On the FUSF
IV. Nexus Will Comply With the Lifeline and Link Up Certification And Verification Rules of 47 CFR $ 5 54.4 10 and 54.4 16 35
V. Nexus will Comply With All Annual Reporting Requirements 35
A. Detailed Information On Any Outage 36
B. The Number of Request for Service that Went Unfulfilled 36
C. The Number of Complaints per 1,000 Handsets 36
D. Compliance with Applicable Service Quality and Consumer Protection Rules 36
E. Certification That the Company is Able to Function in Emergency Situations 36
F. Compliance With Local Usage Requirements 37
G. Certification That Nexus Acknowledges That the Commission
May Require It to Provide Equal Access to Long Distance Carriers 37
Conclusion
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Before the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA
In the Matter of 1 1
Petition of Nexus Communications, Inc., dba TSI 1 Docket No. For Designation as an Eligible Telecommunications Carrier in the State of West Virginia for the Limited Purpose of offering Lifeline and Link Up Service to
) ) )
Qualifying Households 1
PETITION OF NEXUS COMMUNICATIONS, INC., DBA TSI FOR DESIGNATIONAS AN ELIGIBLE TELECOMMUNICATIONS CARRIER
IN THE STATE OF WEST VIRGINIA FOR THE LIMITED PURPOSE OF OFFERING LIFELINE AND LINK UP SERVICE TO QUALIFIED HOUSEHOLDS
Nexus Communications, Inc., d/b/a TSI (“Nexus”, the “Company”), by its undersigned
counsel, and pursuant to Section 214(e)(2) of the Telecommunications Act of 1996l, (“1996
Act”, “the Act”), 47 U.S.C. 9 214(e)(2), Section 54.201 of the Rules of the Federal
Communications Commission (“FCC”), 47 CFR 5 54.201, Report and Order in CC Docket No.
96-452, Section 15OCSR6-10 of the West Virginia Code of State Rules and Chapter 24 of the
West Virginia Code, hereby submits this Petition for designation as an Eligible
Telecommunications Carrier (“ET,”) in the State of West Virginia. Nexus seeks ETC
designation solely to provide Lifeline and Link Up service to qualifying West Virginia
consumers and will not seek access to funds fiom the federal Universal Service Fund (“USF”)
1 47 USC $9 214(e)(2) and (6) and 47 USC 5 254.
* In the Matter of Federal State Joint Board on Universal Service, CC Docket No, 96-45.
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for the purposes of providing service to high cost areas. As demonstrated herein Nexus meets all
the statutory and regulatory requirements for designation as an ETC in the State of West
Virginia. Nexus respectfully requests that the Public Service Commission of West Virginia
(“Commission”) grant this Petition and that it do so expeditiously so that Nexus may provide
Lifeline and Link Up service to low income households at the earliest practicable date.
I. BACKGROUND.
This Petition is made pursuant to 47 U.S.C. $ 5 153(27), 153(44), 153(46), 214(e), 253(b),
254(e) and 332(c)(3), as well as 47 CFR $ 5 51.5, 54.5, 54.101, 54.201, 54.207, 54.313, and
54.3 14.
Nexus is an Ohio corporation3 with principle offices located at 3629 Cleveland Ave.,
Suite C, Columbus, OH 43223 and is in the process of applying for certification with the West
Virginia Secretary of State. The Company’s Certificates of Authority are attached with this
Petition as Exhibit A and are hereby incorporated by reference.
Nexus has been designated as an ETC in the states of Alabama, Florida, Illinois, Kansas,
Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Oklahoma, South Carolina,
Tennessee, Texas, and Wisconsin.
Communications regarding this Petition should be directed as follows:
Steven Fenker, President Nexus Communications, Inc. 3629 Cleveland Ave., Suite C Columbus, OH 43224 Tel(740) 972- 1462 Fax (740) 548-1 173 Email sfenkerl @>earthlink.net
Nexus was organized and incorporated in the State of Ohio on September 11, 2000 (Charter ID 1 180608).
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Mark Kauffelt Kauffelt and Kauffelt P.O. Box 3082 Charleston, WV 2533 1-3082 Tel(304) 345-1272 Fax (304) 345-1280 Email mkauffelt@,citynet.net
Nexus has no pending action or final unsatisfied judgment or decision against it from any
state or federal agency or court which involves customer service or rates, which judgment or
decision occurred within the three years preceding the date of this Petition and had no overdue
annual report or fee assessment.
Pursuant to the requirements of 47 C.F.R. 0 54.201(d)(l), Nexus offers “the services that
are supported by federal universal support mechanisms ... using its own facilities or a
combination of its own facilities and resale of another carrier’s service^."^ Nexus obtains from
licensed operators of wireless CMRS service in the state of West Virginia interconnectivity
allowing Nexus to obtain underlying services as necessary to supplement the Company’s own
facilities, Through its arrangement with these underlying carriers, Nexus has the ability to
provide all services and functionalities supported by the universal service program, as detailed in
Section 54.101 (a) of the Federal Communications Commission (“FCC”) Rules (47 C.F.R. 3
54.101 (a)) throughput is Designated Service Area5
By this Petition, Nexus seeks ETC designation as a Commercial Mobile Radio Service
(“CMRS” or “wireless”) provider for the purpose of providing federal USF Lifeline and Link Up
support to qualifying low-income consumers in the geographic area served by non-rural provider
4See 47 C.F.R. 5 54.201(d)(l).
’ See 47 C.F.R. 0 54.10 1 (a).
6
Exhibit B. Upon designation as an ETC, Nexus will make available Lifeline and Link Up
offerings to all qualified consumers requesting these services throughout the designated service
area pursuant to $150 CSR6-10 and in accordance with 47 C.F.R. $ 54.202(a)(l).
The Lifeline program offered by Nexus will differ fiom the more traditional ETC’s
Lifeline programs in a number of important respects. First, Nexus will offer low-income
consumers the convenience and portability of wireless services. Nexus believes that many
Lifeline-eligible consumes will take advantage of the opportunity to obtain subsidized wireless
service and will offer a unique, easy-to-use service with quantities of wireless usage included at
no charge to the consumer. Typical Lifeline programs provide qualified consumers with
discounts below the carriers’ standard rates. However, customers still face the possibility of
service disconnection if they fail to pay the reduced charges. For example, Verizon West
Virginia, Inc.’s Local Exchange Services Tariff indicates that Verizon’s Lifeline Plan, known as
the Market Transition Plan (MTP) Enhanced Tel-Assistance Service, “is available to qualified
customers and is provided in combination with a local exchange plan” such as Verizon WV’s
Thrifty Plan, Community Caller Plan, Community Plus Caller Plan, or Frequent Caller Plan.6
Verizon’s tariff indicates the standard monthly recurring rate for each of these plans to be $6.50,
$1 5.25, $22.00, and $29.00 respectively’ with a Universal Service Fund (“USF”) credit,
applicable to qualified consumers, of $2.00, bringing the reduced rate, for each of these plans, to
See Verizon West Virginia, Inc. Local Exchange Services Tariff, Section 2D.B.1 Original Page
See Verizon West Virginia, Inc. Local Exchange Services Tariff, Section 2.C.l.d, gfh Revised
1.
page 141.
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service offered by Nexus does not require a credit check, deposit, or long-term contracts. Third,
airtime includes both local and long distance calling. As such, eligible consumers can obtain
wireless service with no long distance or overage charges and as such, no termination fees.
Eligible consumers will also have the ability to purchase additional minutes on an as-needed
basis, which are available at the same price throughout the designated service area, Qualified
customers will also receive a free E91 1 compliant wireless handset. All of these factors
contribute to a unique wireless service that is user friendly and affordable. Additional details of
Nexus Lifeline and Link Up plans are described in subsequent sections of this Petition.
11. NEXUS MEETS THE REQUIREMENTS FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER TO SERVE THE DESIGNATED AREAS IN THE STATE OF WEST VIRGINIA.
Section 254(e) of the Act provides that “only an eligible telecommunications carrier
designated under section 2 14(e) shall be eligible to receive specific federal universal support.”
Section 214(e)(2) of the Act provides that a state commission “shall., .upon request designate a
common carrier that meets the requirements of paragraph 1 [of Section 214(e)] as an eligible
telecommunications carrier for a service designated by the State commission.”
Section 214(e)(l)(A) of the Communications Act states that ETCs shall offer services, at
least in part, over their own facilities and 47 C.F.R. $ 54.20 1 (i) prohibits state commissions from
designating as an ETC a telecommunications carrier that offers the services exclusively through
the resale of another carrier’s services.
As demonstrated below, Nexus meets the requirements for ETC designation by the
Commission pursuant to Section 214(e)(2) of the Act. In addition, Nexus complies with the
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standards established by the FCC for determining whether applicants for ETC status serve the
public interest8
A. The Commission Has Jurisdiction to Designate Nexus as an ETC.
A telecommunications carrier may be designated as an ETC and thus eligible to receive
USF support provided that it demonstrates a commitment, throughout the proposed ETC service
area, to: (a) offer the services that are supported by federal universal support mechanisms, and
(b) advertise the availability of such service^.^ In its First Report and Order implementing
Sections 214(e) and 254, the FCC set forth the services a carrier must provide in order to be
designated as an ETC and thus receive federal universal support. lo
Section 214(e)(2) of the Act authorizes state commissions to designate ETC status for
federal universal service purposes. Although Section 332(c)(3)(A) of the Act prohibits states
from regulating the entry of or the rates charged by CMRS providers, this prohibition does not
allow states to deny wireless carriers ETC status.” Therefore, the Commission is fully and duly
authorized to designate Nexus as an ETC. Specifically, the Act provides that a state commission
shall designate a common carrier as an ETC” provided that the carrier meets the requirements of
Section(e)(l), which requires a carrier designated as an ETC to offer the services that are
supported by the Federal universal service support mechanisms “using either its own facilities or
See Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371, 17
- See 47 U.S.C. 5 214(e)(l).
40-43 (2005).
l o Federal-State Joint Board on Universal Service, Report and Order, 12 FCC Rcd 8776, 8809-25 (1997).
l1 - See USF Order, at 8858-59,7 145,
l2 - See $214(e)(2) of the Act.
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a combination of its own facilities and resale of another carrier’s service^"'^ and to “advertise the
availability of such services and the related charges using media of general distrib~tion.’~ As
discussed in subsequent sections, Nexus meets the facilities-based requirement of the Act and
commits to advertise the availability of its Lifeline and Link Up programs in a manner that
complies with these requirements.
B.
As previously stated, Section 214(e)(l) of the Act and Section 54.201(d) of the FCC’s
Nexus Offers All of the Required Services and Functionalities.
rules provide that carriers designated as ETCs shall, throughout their service area, (a) offer the
services that are supported by federal universal service support mechanisms, either using their
own facilities or a combination of their own facilities and resale of another carriers. Upon
designation as an ETC in West Virginia, Nexus will offer all of these services and functionalities
within the State of West Virginia and therefore satisfies the requirements of 214(e)(l) as detailed
below.
Voice Grade Access - Voice grade access to the public switched telecommunications
network (“PSTN”) is defined as “a functionality that enables a user of telecommunications
services to transmit voice communications, including signaling the network that the caller wishes
to place a call, and to receive voice communications, including receiving a signal indicating there
is an incoming call” in a bandwidth, at a minimum, between “300 and 3,000 Hertz.”” Nexus will
provide wireless access for qualified low-income consumers to the PSTN throughout its
designated service area through the use of contractual purchase of wireless service and will offer
l3 47 CFR 5 54.201(d)(l).
l 4 47 CFR 5 54.201(d)(2).
l5 47 CFR 5 .54.1Ol.(a)(l).
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its subscribers this service at bandwidths between 300 and 3,000 hertz. In addition, Nexus will
respond to all reasonable requests for service by providing service to a customer who has address
in the designated service area.
Local Usage - Local usage is defined by the FCC to mean ‘‘an amount of minutes of use
of exchange service, prescribed by the Commission, provided free of charge to end users”16
(emphasis added). Moreover, an ETC is required to “[dlemonstrate that it offers a local usage
plan comparable to the one offered by the incumbent LEC in the service areas for which it seeks
de~ignation.”’~ Nexus commits that it will comply with all applicable minimum local usage
requirements adopted by the FCC.
Dual Tone Multi-Frequency (“DTMF”) Signaling or Its Functional Equivalent - DTMF
is defined as “a method of signaling that facilitates the transportation of signaling through the
network, shortening call set-up time.”” All telephone handsets, made available by Nexus, will be
DTMF-capable as necessary to meet all applicable FCC requirements.
Single-party Signaling - or its Functional Equivalent - In the case of wireless, single-party
service is defined as “a dedicated message path for the length of a user’s particular
tran~mission.”’~ Nexus will provide all customers with single-party access for the duration of
every phone call in accordance with this rule and does not provide “multi-party” or “party line”
service.
I6 47 CFR $ 54.101 (a)(2).
l 7 47 CFR $ 54.202(a)(ii)(4).
l8 47 CFR 54.101(a)(3).
l9 47 CFR $ 54.101(a)(4).
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Access to 91 1 and E91 1 Emergency Services - Access to Emergency Service is defined
as “a service that permits a telecommunications user, by dialing the three-digit code ‘91 1’’ to call
emergency services through a Public Service Access Point (PSAP) operated by the local
government.”2o The FCC has declared that access to emergency services is essential.*’ Pursuant
to the FCC’s E91 1 Order, providers that use another carrier’s facilities to provide wireless voice
service have an obligation to comply with the FCC’s E911 rules only “to the extent that the
underlying facilities-based licensee has deployed the facilities necessary to deliver enhanced 9 1 1
information to the appropriate PSAP [public service answering point].”22 Through the use of a
combination of the Company’s own facilities and contractual wireless service agreements, Nexus
is able to provide its customers with access to emergency services consistent with the
requirements of Section 254(c) of the Act and 47 CFR § 54.101,
Access to Operator Services - Access to operator services is defined as “access to any
automatic or live assistance to a consumer to arrange for billing or completion, or both, of a
telephone calLZ3” Through the use of its own facilities and contractually arranged wireless
services, Nexus has the capability of delivering operator calls to various operator service
companies, for which the Company has existing agreements with, allowing it to fulfill its
obligation to provide this supported service.
’O 47 CFR 0 54.101(a)(5).
21 USF Order, 12 FCC Rcd at 8814, T[ 71. 22 See Revision of the Commission’s Rules to Ensure Compatibility With Enhanced 911 Emergency Calling Systems, Report and Order and Second Further Notice of Proposed Rulemaking, 18 FCC Rcd 25340 (2003).
23 47 CFR 4 54.lOl(a)(6).
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Access to Interexchange Services - Access to interexchange service is defined as “the use
of the loop, as well as that portion of the switch that is paid for by the end user, or the finctional
equivalent of these network elements in the case of a wireless carrier, necessary to access an
interexchange carrier’s Consistent with the requirements of 47 CFR $0 54.101 (a)( 1)
and 54.101(a)(7), Nexus’ customers can use their service to complete both local and toll calls. As
a result, Nexus does not impose separate charges for interexchange calls as long distance calls
are included in the usage component of its service.
Access to Directory Assistance - Access to directory assistance is defined as
“access to a service that includes, but is not limited to, making available to customers, upon
request, information contained in directory li~ting.”~’ As with access to operator services, Nexus,
through the use of a combination of its own facilities, agreements with various directory
assistance service providers, and contractual arranged wireless services will offer access to
directory assistance, thereby allowing it to fulfill its obligation to provide this supported service.
Toll Limitation for Qualified Low-Income Customers - Although Nexus possesses the
capability to provide toll limitation, it does not believe customers will voluntarily choose to
restrict toll service as Nexus customers can use their service to complete both local and toll calls.
In addition, Nexus is a prepaid service provider, which means that customers pay for their
service in advance and can use only the amount of service for which they have already paid. As
such, no customer can be disconnected for failure to pay toll charges or usage as the company
does not differentiate toll usage from local usage and all usage is paid for in advance. This
24 47 CFR 6 54.101(a)(7).
25 47 CFR 54.101(a)(8).
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service is idea for low-income consumers who enjoy the ability to control or limit their charges
for both local phone and toll service. In fact, according to the FCC, the calling ability such as
that offered by Nexus, “essentially hnctions as a toll control feature” and “may be an attractive
alternative to Lifeline-eligible consumers who are concerned about usage charges or lone-term
contracts”.26
C. Nexus Will Provide the Services Designated for Support Through the Use of its Own Facilities and Resale of Another Carrier’s.
Section 214(e)(l)(A) of the Commissions Act states that ETCs shall offer services, at
least in part, over their own facilities while 47 C.F.R. $ 54.201(i) prohibits state commissions
from designating as an ETC a telecommunications carrier that offers the services exclusively
through the resale of another carrier’s services.
47 C.F.R. $ 54.201(d) of the FCC’s Rules require that “[a] common carrier designated as
an eligible telecommunications carrier. . . shall be eligible to receive universal service
support,, .and shall, throughout the service area for which the designation is received” “[olffer
the services supported by federal universal service support mechanisms.. .either using its own
facilities or a combination of its own facilities and resale of another carrier’s services”27 and
mandates that a “state commission shall designate a common carrier.. .as an eligible
telecommunications carrier irrespective of the technology used” by the carrier to meet this
requirement. 28
26 In the Matter of Federal-State Joint Board on Universal Service TracFone Wireless, Inc. Petition for Designation as a Eligible Telecommunications Carrier (FCC 08-1 00), Order Released April 11,2008 at 7 15.
27 - See 47 C.F.R. 9 54.201(d)(1).
28 - See 47 C.F.R. 6 54.201 (h).
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Consistent with theses requirements, Nexus uses a combination of its own facilities and
resold services of another carrier in its provision of the services that are designated for support,
Carriers, that use a combination of facilities, are allowed under federal rules to obtain ETC
designation. As explained by the FCC:
“We adopt the Joint Board’s analysis and conclusion that a carrier need not offer universal service wholly over its own facilities in order to be designate as eligible because the statute allows an eligible carrier to offer the supported services through a combination of its own facilities and resale.”29
This is fully consistent with the three types of carriers envisioned in the federal
Telecommunications Act of 1996, which are 1) pure facilities-based carriers that would need
interconnection only; 2) pure resellers that would simply resell the services of another carrier;
and 3) “combination” or “mixed-mode” carriers that would be neither purely facilities-based nor
purely resale. Under the “mixed-mode” model, the telecom entrant uses resale but also has its
“own facilities” such as a switch or other “network element” in order to compete.
Carriers, such as TracFone, provide the services designated for support exclusively
through resale of another carrier’s services and as such fall under the classification of a “pure
reseller” making it ineligible for designation as an ETC. As a result, TracFone was compelled to
seek forbearance from the FCC to overcome the facilities requirement of 47 C.F.R. 8 54.201.
The FCC granted TracFone’s request for forbearance, but did so with specific conditions, one of
which was that TracFone would be eligible to receive only Lifeline support but would not be
eligible to receive Link Up support.
Consistent with FCC requirements Nexus, as a “combination” or “mixed-mode” carrier,
does not require a forbearance from the provisions of 47 C.F.R. 9 54.201 and directly meets the
29 USF Order at 71 69.
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federal universal support mechanisms.. .either using its own facilities or a combination of its
own facilities and resale of another carrier’s and 2) advertises “the availability of
such services and the charges thereof using media of general distrib~tion”.~’ When a carrier is
relying on the “combination” or “mixed-mode” standard, a state commission, such as this
Commission, is directed to grant ETC designation “irrespective of the technology”32 used by the
applicant and cannot require the facilities to be in the “relevant service area” as long as the
facilities are used “to provide services designated for support.. .within the service area”.33 In
short, as long as Nexus offers any portion of the supported services through the use of its own
facilities, the Commission can not require those facilities to be located in the relevant service
area. In addition, the FCC considers such an arrangement to be sufficient to meet the facilities
requirement and to be sufficient for such a carrier to qualify for both Lifeline and Link Up
support, In fact, the Code of Federal Regulations states that “[all1 eligible telecommunications
carrier sha1Y4 “[mlake available Lifeline service”35 and defines Link Up as an “assistance
program for qualifying low-income consumers, which an eligible telecommunications carrier
shall offer as a part of its obligation set forth in Q Q 54.101 (a)(9) and 54.10 1 (b)””. In other words,
30 See 47 C.F.R. Q 54.201(d)(I) (emphasis added).
31 See 47 C.F.R. Q 54.201(d)(2).
32 See 47 C.F.R. Q 54.201(h).
33 See 47 C.F.R. 6 54.201(g).
34 See 47 C.F.R. Q 54.405.
35 See 47 C.F.R. Q 54.405(a).
36 See 47 C.F.R. 5 54.41 l(a) (emphasis added).
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unless specifically prohibited by the FCC, a combination carrier, such as Nexus, is required to
provide Lifeline and Link Up.
The FCC, in the USF order, also expressed concerns that a strict interpretation of the term
"facilities" would violate the FCC's express policy of competitive neutrality stating:
"We also decline to adopt a more restrictive definition of the term "facilities," as some commenters suggest. For example, we reject the suggestion that we define "facilities" as both loop and switching facilities based on our concern that such a restrictive definition would erect substantial entry barriers for potential competitors seeking to enter local markets and, therefore, would unduly restrict the class of carriers that may be designated as eligible telecommunications carriers. Rather, we conclude that the definition of "facilities" that we adopt will serve the goals of universal service and competitive neutrality to the extent that it does not dictate the specific facilities that a carrier must provide or, by implication, the entry strategy a carrier must use and, therefore, will not unduly restrict the class of carriers that may be designated as eligible.37
Currently, there is no state or federal definition or requirement as to the number of or the
amount of the supported services that an ETC must offer via its "own facilities." The ETC
merely must provide some portion of the supported facilities through the use of the same, which
Nexus does. Additionally, Federal law does not require any particular level of facilities. The
FCC stated in the USF Order that:
"We adopt the Joint Board's analysis and conclusion that a carrier need not offer universal service wholly over its own facilities in order to be designated as eligible because the statute allows an eligible carrier to offer the supported services through a combination of its own facilities and resale. Although the Joint Board did not reach this issue, we find that the statute does not dictate that a carrier use a specific level of its "own facilities" in providing the services designated for universal service support given that the statute provides only that a carrier may use a "combination of its own facilities and resale" and does not qualify the term "own facilities" with respect to the amount of facilities a carrier must use. For the same reasons, we find that the statute does not require a carrier to use its own facilities to provide each of the designated services but, instead,
37 USF Order at para. 253
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permits a carrier to use its own facilities to provide at least one of the supported services. ”3
In affirming its own decisions, the FCC choose to continue to define the term “own facilities” as
“any physical components of the telecommunications network that are used in the transmission
of the services that are designated for support”39 (emphasis added). The Communication Act’s
definition of “network element” matches that of the FCC and defines a “network element” as “a
facility or equipment used in the provision of a telecommunications service such as features,
hnctions, and capabilities that are provided by means of such facility or equipment, including
subscriber numbers, databases, signaling systems, and information sufficient for billing and
collection or used in the transmission, routing, or other provision of a telecommunications
~ervice.”~’ All facilities-based carriers - not just incumbent LECs - have and use network
elements.“
Nexus will offer the supported services using a combination of its “own facilities” and
the services of another carrier. Nexus’s “own facilities” consists of co-located facilities that are
interconnected with Nexus’ underlying carriers which allow Nexus the ability to route the
international interexchange services of its subscribers which is one of the supported services.42
Additionally, regarding services such as E9 1 1, because it uses a combination of facilities,
Nexus is the responsible party to equip, translate and pay the respective PSAP the fees incurred
38 USF Order at para. 169 (emphasis added).
39 See 47 CFR Q 54.101; 47 CFR 9 54.201(e).
40 See 47 USC Q 153(29). 41 Only ILEC network elements can be designated as “unbundled” under 0 251(c)(3) using the criteria in 5 25 1 (d)(2), but all facility-based carriers, including nondominant wireline and wireless carriers also have “network elements.”
42 See 47 CFR Q 54.101(a)(7).
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for all E91 1 services, to the extent they are applicable to Nexus’ subscribers. Only those CMRS
carriers that have fully “interconnected” with other carriers are primarily responsible for
complying with the rules of underlying regulatory compensation. If Nexus were a “pure
reseller”, it would not be solely responsible for payment of these regulatory compensation
charges and surcharges, which would instead become the responsibility of the underlying carrier
providing the resold service.
Having the ability to use its own facilities to provide the international portion of its end
users’ interexchange calls, along with the fact that Nexus, as a mixed-mode or facilities-based
reseller, is solely responsible for underlying regulatory compensation such as E91 1
reimbursement, allows Nexus to meet the federal requirement that an ETC must offer the
supported services at least in part through the use of its own facilities.
D. Nexus Will Advertise the Availability of the Services Designated for Support.
47 CFR 9 54.201(d)(2) requires a common carrier designated as an ETC to advertise the
availability of each of the services designated for support and the charges thereof using media of
general distribution. 47 CFR $5 54.405(b) and 54.41 l(d) require ETCs to publicize the
availability of Lifeline and Link Up “in a manner reasonably designed to reach those likely to
qualify” for the service and support while
Nexus commits that it will advertise the availability of its Lifeline and Link Up services
and the associated charges using media of general distribution, in accordance with the
requirements of Section 214(e)(l)(A) of the Act and Section 54.201 l(d)(2) of the FCC’s rules.43
In addition Nexus will advertise the availability of its Lifeline and Link Up “service in a manner
43 47 CFR 8 54.201(d)(2).
19
~~
reasonable designed to reach those likely to qualify for the service.”44 Nexus understands that it
is the stated goal of the FCC to increase the penetration of Lifeline and Link Up by identifying
and offering the service to as many qualifying consumers as possible. As a result, Nexus will
utilize traditional means for promoting Lifeline and Link Up such as print and radio advertising,
especially through the use of free publications and commercial radio stations whose
programming is targeted to a significant number of low-income communities. Nexus will also
use non-traditional means to promote Lifeline and Link Up such as advertisement at local
counsel-on-aging locations and other low-income community services.
In addition, Nexus will draw on its previous and highly successful experience marketing
Lifeline and Link Up and will provide point-of-purchase materials to retail outlets throughout the
designated service area, especially those which are frequented by low-income consumers such as
various rent-to-own centers and mass merchandisers like Wal-Mart and CVS. These materials
will be provided in both English and Spanish and will plainly and visibly make consumers aware
of both the availability and price for Lifeline and Link Up, thereby fulfilling the requirements of
47 CFR $8 54.405(b) and 54.41 l(d).
The combination of outreach programs will increase the participation in Lifeline and Link
Up by making qualifying consumers, who were previously unaware of these vital low-income
programs, aware of their existence.
E. Nexus Request Designation Throughout the Geographic Area Served by Non Rural Provider Verizon West Virginia. Inc.
~~ ~
44 47 CFR $ $ 54.405(b) and 54.41 l(d).
20
Nexus is not a rural telephone company as that term is defined in the As such,
Nexus is required to describe the geographic area(s) within which it request designation as an
ETC.46 Consistent with this requirement, Nexus is not requesting ETC designation in the territory
of any rural service provider and limits its request for ETC designation to the geographic area
that encompasses geographic area served by non-rural provider Verizon West Virginia, Inc.
F. Nexus Will Provide Service Throughout its Proposed Designated Service Area to all Customers Making a Reasonable Request for Service and Will Do So Within a Reasonable Time.
As previously stated, Nexus provides service through a combination of its own facilities
and resale of another carriers facilities, which the Company obtains through agreements with
licensed CMRS providers. As the network of these providers are already operational, Nexus will
be able to commence offering of its Lifeline service program to all qualified consumers soon
after it receives approval from the Commission. In addition, Nexus is ready to provide free 91 1
compliant handsets to qualified low income consumers under its Lifeline program. The only
delay will be the time needed to implement procedures and internal systems necessary to offer its
Lifeline and Link Up programs, which includes distribution of point-of-sale materials to
authorized agents locations. As a result, Nexus will be able to meet the requirements of 47 CFR
0 54.202(a)(l) which requires an ETC to provide service throughout its proposed designated
service area to all customers making a reasonable request for service and to do so on a timely
basis or within a reasonable period of time.
G . Nexus Has the Ability to Remain Functional in Emergency Situations.
45 47 U.S.C. 5 153(37).
46 Public Notice - Procedures for FCC Designation of Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of the Communications Act, FCC 97-419, 12 Rcd 22947 (1997).
21
- __ ~- ~~ ~~~
47 C.F.R. $ 54.202(a)(2) require that an ETC provide “[a] demonstration of the carrier’s
ability to remain functional in emergency situations.. . .”. Providing some of “the services that are
supported by federal universal support mechanisms.. .using.. .resale of another carriers
service^"^' allows Nexus the ability to provide to its customers the same the same ability to
remain functional in emergency situations as is currently provided by the underlying carrier to its
own customers, which includes access to a reasonable amount of back-up power to ensure
functionality without an external power source, rerouting of traffic around damaged facilities,
and the capability to manage traffic spikes resulting from emergency situations.
As required, Nexus will also offer some of the “services supported by the federal
universal support mechanisms.. .using its own facilities”. In doing so, Nexus has installed a
network of back up systems that allow Nexus to remain functional in emergency situations.
Consistent with federal regulations, this network has the capability to ensure functionality
without an external power source, rerouting of traffic around damaged facilities, and the
capability to manage traffic spikes resulting from emergency situations.
H. Nexus Will Satisfy Consumer Privacy Protection Standards and Service Quality Standards
Nexus commits that it will satisfy all consumer privacy protection standards as provided
in 47 CFR $ 64 Subpart U as applicable. In addition, Nexus will protect Customer Proprietary
Network Information (“CPNI”) as required by state and federal law and will certify compliance
the same on an annual basis.
Providing crucial elements of the service through resale and a combination of the
Company’s own facilities will enable Nexus to provide the same quality and reliability as that
47 47 C.F.R. 0 54.201(d)(l).
22
currently provided by any other wireless provider. Although no carrier can assure the
Commission that it will never experience service disruptions, Nexus’ contractual arrangements
are designed to minimize any failures, provide alternate call routing, and expedite recovery in the
event a failure occurs.
Nexus certifies that it will comply with the Cellular Telecommunications and Internet
Association’s (“CTIA”) Consumer Code for Wireless Service as required by 47 C.F.R. §
54.202(a)(3). As a part of its Application, Nexus has included, as Exhibit C, a copy of the CTIA
consumer Code and will Nexus will file with the Commission any changes to the same.
I. Nexus Offers a Local Usage Plan Comparable to Those Offered by the Incumbent Local Exchange Carrier (“ILEC”).
An ETC is required to “[dlemonstrate that it offers a local usage plan comparable to the
one offered by the incumbent LEC in the service areas for which it seeks de~ignation.”~’
However, the FCC has explained that the local usage plan(s) of an ETC applicant should be
reviewed on a case-by-case basis49 in order to ensure that each ETC is providing a local usage
component as a part of its universal service offering that meets the requirements of the FCC’s
Rules5’. As the FCC has not adopted any minimum local usage requirements, it is important to
point out that an ETC is required to offer a local usage plan that is “comparable” not identical.
Nexus will comply with all applicable minimum local usage requirements adopted by the FCC.
48 47 CFR 8 54.202(a)(ii)(4).
49 Federal-State Joint Board on Universal Service, Report and Order, 20 FCC Rcd 6371, 6385,l 33 (2005).
50 47 CFR 0 54.201(a)(ii)(4).
23
~ ~~~ -
With respect to wireless service, to date, the FCC has not quantified an amount of local
usage required to be included by an ETC in its universal service offering. In the First Report
and Order, the FCC deferred a determination on the amount of local usage that a carrier would be
required to In a subsequent rulemaking docket, the FCC sought comment on a
definition of the public service package that must be offered by all ETCs, including how much
local usage should be required to be provided to customers as a part of a universal service
~ffering.’~ After considering public comments and recommendations of the Joint Board, the
FCC, in July, 2003, released an order declining to impose a specific amount of local usage as a
condition of ETC status.54 Recently, the FCC sought comment on another set of
recommendations by the Joint Board regarding ETC criteria and again declined to specify a
minimum quantity of local usage.” Instead, the FCC has determined that when a carrier offers a
choice of rate plans containing varying amounts of local usage, it meets the local usage
req~irernent.~~ As such, Nexus will provide qualifying customers with an amount of usage
consistent with the FCC’s pronouncements. As detailed in the following sections, Nexus offers,
as a part of its Lifeline plan, an amount of local and long distance usage with no monthly
51 - See NPCR, Inc, d/b/a Nextel Partners, 19 FCC Rcd 16530, 16536 (2004) (“Nextel Partners”).
52 See Federal-State Joint Board on Universal Service, Report and Order, 12 FCC Rcd at 8776, 8809-25 (1997).
53 Federal-State Joint Board on Universal Service. Memorandum Opinion and Order and Further Notice of Proposed Rulemaking, 13 FCC Rcd 2 1252,2 1279-8 1 (1 998).
54 Federal-State Joint Board on Universal Service, Order and Order on Reconsideration, FCC 03- 170 at 7 14 (rel. July 14, 2003). 55 Federal-State Joint Board on Universal Service, Notice of Proposed Rulemaking, 19 FCC Rcd
56 See e.g. Sprint Corp, DA 04-361 7 at l’/ 1 1 (rel. Nov 18, 2004); ALLTEL Communications, Inc., 19FCC Rcd 20496,20500-01 (2004); Nextel Partners, supra, 19 FCC Rcd at 16536.
10800, 10826-27 (2004).
24
~
~ ~ ~~~
~- -~ ~ _ _ ~ - -~ __
~~~
recurring charge and will allow customers to purchase additional minutes of usage, if needed,
thereby fulfilling the requirements of 47 CFR $ 3 54.101(2) and 54.202(a)(4), which require an
ETC to meet the local usage requirement by offering “a choice of rate plans”.
J.
Per the requirements of 47 C.F.R. $ 54.202(a)(5), Nexus certifies that it will “provide
Nexus Will Provide Equal Access
equal access to long distance carriers in the event that no other eligible telecommunications
carrier is providing equal access with the designated service area’y57 pursuant to section 2 14(e) of
the Telecommunications Act of 1996.
111. DESIGNATION OF NEXUS AS AN ETC IN THE STATE OF WEST VIRGINIA WILL SERVE THE PUBLIC INTEREST.
The FCC has determined that while “[dlesignation of competitive ETCs promotes and
benefits consumers.. .by increasing customer choice7758, designation must include “an affirmative
determination that such designation is in the public interest regardless of whether the applicant
seeks designation in an area served by a rural or non-rural carrier”.59 FCC Rules require that an
ETC application demonstrate that designation would be consistent with the public interest,
convenience and necessity and that prior to designating an ETC pursuant to section 214(e)(6),
the Commission “shall consider the benefits of increased consumer choice, and the unique
advantages.. ,of the applicant’s service offering”.60 Pursuant with this requirement, Nexus
s7 47 C.F.R. $ 54.202(a)(5).
58 47 U.S.C. $ 214(e)(2).
s9 See Federal-State Joint Board on Universal Service 20 FCC Rcd 6371,142 (2005).
6o 47 C.F.R. $ 54.202(c).
25
~~ -~ ~~
provides the following information that clearly demonstrates that Nexus’ designation as an ETC
is consistent with the public interest, convenience and necessity providing consumers with
increased competitive choice through the offering of a unique service.
Although Nexus is seeking ETC designation in areas that are typically served by wireline
carriers, designation as an ETC will provide a valuable alternative to the existing
telecommunications services currently available in these areas and will promote competition and
facilitate the provision of advanced communications services to low-income residents of West
Virginia.
The public interest benefits of designating Nexus as an ETC include larger local calling
areas (as compared to traditional wireline carriers), the convenience and security afforded by
mobile telephone service, the opportunity for customers to control cost by receiving a preset
amount of monthly airtime at no charge, the ability to purchase additional usage in the event that
included usage has been exhausted, 9-1-1 service and, where available, E9-1-1 service in
accordance with current FCC requirements.
The inclusion of toll calling as a part of Nexus’ wireless offering, along with the fact that
service is provided without a monthly recurring charge, will allow consumers to avoid the risk of
becoming burdened with large and unexpected charges for toll calling and unexpected overage
charges.
Designation of Nexus as an ETC will also provide the incumbent LECs, serving the same
area, an incentive to improve their existing networks and service offerings in order to remain
competitive, which will result in improved consumer services.
26
designated for support at rates that are “just, reasonable, and affordable.”61
A.
The FCC has long acknowledged the benefits to consumers of being able to choose from
a variety of telecommunications providers and the resulting variety of telecommunications
services they provide.62 This is of particular interest in cases where wireless providers, such as
Nexus, seek to provide service as an alternative to those of the traditional incumbent LEC. In the
Highland Cellular case, the FCC recognized and affirmed that some households may not have
access to the public switched network as provided by the incumbent local exchange carrier. The
availability of a wireless competitor benefits consumers, residing in the more rural exchanges of
wireline providers such as Verizon WV, who routinely drive long distances to attend work or
school or to accomplish everyday tasks such as shopping or attending community and social
events.63 Nexus’ wireless service will provide those consumers with a convenient and affordable
alternative to traditional telecommunications service that can be used while at home or away
from home.
The Benefits of Increased Competitive Choice
Nexus believes that in today’s market consumers, including qualified Lifeline and Link
Up customers, view the portability and convenience of wireless service not as a luxury, but as a
necessity, allowing children to reach their parents wherever they may be, persons seeking work
the ability to be contacted by potential employers, and the ability to contact emergency service
61 - See 47 U.S.C. 9 254(b)( 1).
See e.g.. Specialized Common Carrier Services, 29 FCC2d 870 (1971).
63 Highland Cellular, Inc. petition for Designation as an Eligible Telecommunications Carrier in the Commonwealth of Virginia, 19 FCC Rcd 6422,lT 23 (2004).
27
wireless service in lieu of the more traditional wireline service.
The Lifeline and Link Up service, offered by Nexus, also provides important benefits that
are especially needed by low-income West Virginia residents in this time of economic downturn.
As the Commission is aware, the Dow Jones Average, a primary indicator of the health of the
economy, is at a 12 year low. Thus, the savings accounts, upon which many depend on for
emergencies and retirement, have significantly eroded. Since the recession began, 5.1 million
jobs have been lost nationally, with nearly two-thirds (3.1 million) of the decrease occurring in
the last 5 months.64 By March of 2009, the number of unemployed persons increased by 694,000
to 13.2 million, and the unemployment rate rose to 8.5 percent.65 Although West Virginia’s
March 2009 unemployment rate of 6.9 percenP is lower than the national average, it is
dramatically higher than the 4.5 percent unemployment figure, reported in December 2008, and
has had a significant impact on many residents of the state. The availability of a mobile
telephone will be critical to the efforts of the unemployed as they search for other employment
opportunities. Without a regular paycheck, wireless telephone service would become a luxury
beyond the means of many of those persons.
Nexus’ Lifeline and Link Up programs will enable thousands of residents to obtain
wireless service which would otherwise be unavailable to them. The dire economic
circumstances indicate that low-income individuals, now more than ever, can greatly benefit
from the advantages offered by Nexus’ Lifeline and Link Up service, allowing those, adversely
64 Source United States Department of Labor Bureau of Labor Statistics.
6s Id.
b6 Id.
28
~ _ _
impacted by the failing economy or job loss, to have access to a free wireless service to assist in
emergency situations, facilitate job search efforts, and to maintain contact with family members.
Added together, Nexus expects these additional competitive advantages to create an
atmosphere that will cause many qualified consumers to select the Company’s wireless Lifeline
and Link Up service in lieu of the more traditional wireline or wireless services.
B. The Unique Advantages of Nexus’ Service Offerings
As described throughout this Petition, Nexus will offer a unique, easy to use, competitive
and highly affordable wireless telecommunications service, which it will make available to
qualified consumers who either have no other service alternatives or who choose a wireless
prepaid solution in lieu of a more traditional wireline or wireless services.
Qualified consumers will have the ability to acquire a wireless service that includes a free
E91 1 compliant handset, local and long distance calling, and several features, all without the
requisite credit check, deposit, contract requirements, and monthly recurring service charges
associated with more traditional wireline and wireless service providers. Optional features, such
as Voice Mail and Text Messaging, will also be available. Customers will not incur roaming
charges and unused minutes will rollover from month to month. Customers will be able to
purchase varieties of airtime cards at authorized retail outlets located throughout the designed
service area, in denominations of $5.00, $10.00 and $20.00. Each airtime card will be clearly
labeled with the available minutes for each denomination and will include instructions, in both
English and Spanish, on how to load the minutes into the handset. Usage balances may be
accessed on a real time basis through the customer’s handset. When sending or receiving a call,
an audible beep will alert the customer when usage reaches 10 minutes of available airtime.
29
Through the Link Up program, Nexus will be able to provide consumers with a reduction
in the cost of the fees associated with the connection of service. Because Nexus’ service is
provided with no credit check, deposit requirement, minimum service periods, or early
termination fees the service will be an attractive and affordable alternative to qualified low-
income consumers without regard to age, residency, or credit worthiness. In short, Nexus’
Lifeline Service Plan offers qualified Lifeline customers a combination of wireless access and
quality service at rates that are just, reasonable, and affordable.
C. Nexus Wireless Lifeline Plan
Lifeline is a component of one of four separate federal universal service fund
mechanisms6’ know as the “low-income support mechanism”.68 and is defined in 47 C.F.R. 5
54.40 1 as “a retail local service offering” “available only to qualified low-income consumers”
“for which qualifying low-income consumers pay reduced charges as a result of application of
the Lifeline support amount” “that includes the services or functionalities enumerated in 5
54.401(a)(l) through (a)(9)”, which the Company will use to “[m]ake available Lifeline
service., .to qualifying low-income cons~mers” .~~ Under the Company’s Lifeline this plan Nexus
will provide qualified Lifeline customers, who reside in the State of West Virginia, with an
amount of free anytime local and long distance minutes each month and will use all low-income
universal service support to allow the Company to provide the service with no monthly recurring
charge ensuring that the consumer receives 100% of all universal service support funding for
67 47 C.F.R. 6 54.8(a)(l); See “Definitions” at second sentence.
47 C.F.R. 5 54.8(a)(l); See “Definitions” at first sentence.
69 47 C.F.R. $ 9 54.401(a), 54.401(a)(l), 54 401 (a)(2), 54.401(a)(3), 54.405(a).
30
~
~ ~~
-~ ~ ~~ ~~
~~
~~ ~
which the Company will seek reimbursement. The plan will include a free handset and Caller ID
and Call Waiting;
Unused minutes will roll over from month-to-month and “fresh” minutes will be
automatically loaded to the currently available minutes of the account of each customer on a
monthIy basis month. In the event that all airtime has been used, Lifeline customers will have the
capability of purchasing additional airtime replenishment cards in $5.00, $1 0.00, and $20.00
denominations. Airtime replenishment cards will be made available at retail outlets frequented
by low income customers throughout the Designated Service Area.
Wireless handsets will be delivered at no charge to qualifying customers, service will be
activated, and the requisite number of minutes will be added upon certification of the customer
for Lifeline and Link-Up.
D. Nexus Link Up Plan
Like Lifeline, Link Up is also a component of one of four separate federal universal
service fund mechanisms70 known as the “low-income support me~hanism”,~~ and is defined in
47 C.F.R. 8 54.41 1 as an “assistance program for qualifying low-income consumers, which an
eligible telecommunications carrier shall offer as part of its obligations set forth in $§
54.101 (a) (9) and 54. IO1 (b)”72 73(empha~i~ added). Assistance is in the form of a “reduction in the
’O 47 C.F.R. § 54.8(a)( 1); See “Definitions” at second sentence.
71 47 C.F.R. 3 54.8(a)(l); See “Definitions” at first sentence. 72 47 C.F.R. 0 54.41 l(a). The plain reading of this definition is that an ETC is obligated to provide this discount to qualifying low-income consumers. In addition, 8 54.41 3(a) stipulates that carriers, that provide Link Up discounts, “may receive universal service support reimbursement for the revenue they forgo in reducing their customary charge for commencing telecommunications service. . . ’’
31
~~
~ ~ ~- __ ~~
carrier’s customary charge for commencing telecommunications service for a single
telecommunications connection” and “shall be half of the customary charge or $30.00,
whichever is less”.74 Consistent with FCC requirements, Nexus will use Link Up support to
reduce the company’s “customary charge for commencing service” by “half of the customary
charge.. .”75, which will result in a reduction of the Company’s activation charge of $30.00.
Unlike TracFone, which was compelled to seek forbearance from the FCC to overcome
the facilities requirement of 47 C.F.R. 5 54.20, and as a condition for forbearance, was
prohibited from receiving Link up support, Nexus is eligible to receive Link Up support and is in
fact required by 47 C.F.R. 6 54.41 l(a) to offer Link Up to qualifying low-income consumers.
Qualifying subscribers will have the option of deferring the reduced activation charge
over a twelve month period with no interest allowing subscribers to obtain service without being
required to pay any up front fees to activate service with Nexus.
E. Designation of Nexus as an ETC Will Benefit Low Income Consumers in the State of West Virginia.
Designation of Nexus as an ETC will make Lifeline and Link Up discounts available to
many more West Virginia residents. This is particularly true in the wireless field, where, to
Nexus’ knowledge, there are a limited number of wireless providers offering USF-subsidized
(Cont’d from preceding page) 73 5 54.101(a)(9) is the specific obligation to offer Toll Limitation for qualifying low-income consumers while 5 54.10 1 (b) is the requirement that an “eligible telecommunications carrier must offer each of the” services designated for support “in order to receive federal universal service support”. As a part of its application, Nexus has demonstrated that it has the capability to and will offer all of the supported services specified in 5 54(a)(l) - (9).
74 47 C.F.R. 5 54.4 1 1 (a)( 1). 75 47 C.F.R. 5 54.41 l(a)(l).
32
user. As such, the service for which Nexus seeks ETC status is unique.
Granting Nexus ETC status will serve the public interest by increasing participation of
qualified consumers in the Lifeline and Link Up programs thereby contributing to an overall
increase in the number of West Virginia residents receiving Lifeline and Link Up and an increase
to the amount of federal USF dollars benefiting West Virginia customers.
Finally, designation of Nexus as a wireless ETC will serve the public interest by
furthering the extensive role that Nexus believes it will play in the provision of communications
service to low-income consumers, transient users, and other consumers who, due to the
restrictive credit criteria, deposit requirements, and long-term commitments of wireline and
traditional wireless service providers, are off network and, without and viable alternative, are
likely to remain so.
F. A Grant of This Petition Will Impose a Negligible Burden on the FUSF
Nexus reiterates that it is applying for ETC designation solely for the purpose to provide
Lifeline and Link Up discounts to qualified low-income consumers and to seek reimbursement
for the same and will not seek or accept high cost support. As such, Nexus’ designation as an
ETC will not pose any adverse effect in the growth in the high cost portions of the USF, nor will
it create or contribute to an erosion of high cost fbnding from any rural or non-rural telephone
company. As previously mentioned, Nexus’ designated service area is the geographic area served
by non-rural provider Verizon WV. Consistent with FCC rules, the Commission is authorized to
designate Nexus as an ETC in non-rural areas that Nexus will serve without redefining the
service areas of non-rural telephone companies.
33
fund associated with high-cost support distributed to competitive ETCs” is not relevant to
carriers seeking support associated with the low-income program.76 Accordingly, total low-
income support, for 2005, accounted for only 12.4 percent of the total distribution of the
universal service fund, with high-cost accounting for over 58 percent of the
The FCC also recognized that the total effect of additional low-income only ETC
designations would have a minimal impact on the fund when it stated that “any increase in the
size of the fund would be minimal and would be outweighed by the benefit of increasing eligible
participation in the Lifeline and Link Up programs, furthering the statutory goal of providing
access to low-income consumer^."^^
The FCC acknowledged the benefits of designating a carrier as an ETC, when the carrier
is seeking only to participate in the USF’s low-income program, in the release of the following
statement in its May 1 , 2008 Order establishing an interim cap on high-cost support:
Moreover, there are advantages in obtaining and maintaining an ETC designation regardless of whether a competitive ETC receives high-cost support. In particular, the ability of competitive ETCs to receive low-income universal service support shows value in obtaining and maintaining ETC designation separate and apart from high-cost support.79
Further, by offering Lifeline and Link Up service, a competitive ETC may attract new subscribers that nay not otherwise have taken telephone service. This would increase a competitive ETC’s base of subscribers and, consequently, lower its average cost of
76 TracFone Forbearance Order, at 7 17.
77 2007 Wireline Competition Bureau, FCC, Trends in Telephone Service, Table 19.1 and Chart 19.1.
78 TracFone Forbearance Order, at 7 17.
79 High-Cost Universal Service Support, et al., Order, WC Docket No, 05-337, CC Docket No. 96-45, FCC 08-122 (released: May I , ZOOS), 7 30.
34
serving all of its subscribers. Moreover, competitive ETCs may be eligible for separate universal service support at the state
It is also vital to recognize that in the case of Lifeline and Link Up support, an ETC
receives USF support only for the customers it obtains. In the scenario where a competitive ETC
obtains a Lifeline customer from another ETC, only the “capturing” ETC provides Lifeline
discounts and as a result, only the “capturing” ETC receives support reimbursement.
In addition, all providers are required to contribute a portion of the interstate revenue
received from its customer to the USF. In accordance with current federal regulations, Nexus
will make contributions based on that portion of its revenue that is determined to be interstate.
As such, approving Nexus as an ETC will actually create contributions to the USF that were
previously non-existent.
IV. Nexus Will Comply with the Lifeline and Link Up Certification and Verification Requirements of 47 CFR $6 54.410 and 54.416.
Sections 54.410 and 54.416 of the FCC’s rules require ETCs to comply with the requirements of
initial certification of eligibility and the verification of continued eligibility for participation in
the Lifeline and Link Up programs. Nexus commits that it will certify and verify consumer
eligibility in accordance with applicable FCC rules governing both certification and verification
of Lifeline and Link Up eligibility, Nexus has developed a detailed compliance policy that
includes the Company’s procedures for initial certification of eligibility and the verification of
continued eligibility for participation in these vital low-income programs and will make these
materials available to the Commission upon request.
V. NEXUS WILL COMPLY WITH ALL ANNUAL REPORTING REQUIREMENTS.
35
Consistent with the requirements of 47 C.F.R. 6 54.209, Nexus will comply with the
following annual reporting requirements.
A.
As required by 6 54.209(a)(2), Nexus will report, on an annual basis, “any outage, as that
term is defined in 47 CFR 4.5, of at least 30 minutes in duration” that potentially affects 1) at
Detailed Information on any Outage
least ten percent of the end users served in a designated service area; or 2) a 91 1 special facility.
The report will include 1) the date and time of the outage; 2) a brief description of the
outage and its resolution; 3) the particular services affected 4) the geographic areas affected; 4)
the steps take to prevent a similar situation in the future; and 5) the number of customers
affected.
B.
As required by 4 54.209(a)(3), Nexus will report the number of request for potential
customers within its ETC service area that were unfulfilled in the past year and how it attempted
Number of Request for Service that Went Unfulfilled
to provide service to those potential customers.
C.
Consistent with the requirements of §54.209(a)(4), Nexus will annually report the
Number of Complaints per 1,000 Handsets
number of complaints received by the Company from the FCC, this Commission, or the Better
Business Bureau, per 1,000 handsets.
D. Compliance with Applicable Service Quality Standards and Consumer Protection Rules
36
~
As required by 5 54.209(a)(5), Nexus will certify its continuing compliance with all
applicable service quality standards and consumer protection rules.
E. Certification That the Company is Able to Function in Emergency Situations
Consistent with the requirement of 5 54.209(a)(6), Nexus will certify, on an annual basis,
its continued ability to remain functional in emergency situations.
F.
Pursuant to the requirements of 5 54.209(a)(7), Nexus will certify annually that it offers a
Compliance with Local Usage Requirements
local usage plan comparable to that offered by the incumbent LEC operating in the designated
service area.
G. Certification That Nexus Acknowledges that the Commission May Require it to Provide Equal Access to Long Distance Carriers.
Per the requirements of 3 54.209(a)(8), Nexus will certify annually an acknowledgment
that the Commission may require it to provide equal access to long distance carriers in the event
no other eligible telecommunications carrier is providing equal access within the service area.
37
CONCLUSION
WHEREFORE pursuant to Section 2 14(e)(2) of the Act, Nexus request that the
Commission issue an Order granting its Petition for designation as and ETC in West Virginia
consistent with this Petition, including ETC status for its wireless service offering in the
geographic area served by Verizon West Virginia, Inc.
Respectfully Submitted,
WV Bar No. 1965 Kauffelt & Kauffelt P.O. Box 3082 Charleston, WV 2533 1-3082
[email protected] (304) 345-1272
38
CERTIFICATE OF SERVICE
I, Mark E. Kauffelt, counsel for Nexus Communications, Inc., dba TSI, do hereby certify
that I have served the foregoing “Petition of Nexus Communications, Inc., dba TSI for
Designation as an Eligible Telecommunications Carrier in the State of West Virginia for the
Limited Purpose of Offering Lifeline and Link Up Service to Qualified Households” by
depositing a true copy thereof in the United States Mail, First Class postage prepaid, addressed
as follows:
C. Terry Owen, Esquire Public Service Commission of WV 201 Brooks Street Charleston, WV 25323
this the 3rd day of June, 2009.
39
~~
VERIFICATION
STATE OF WEST VIRGINIA,
COUNTY OF KANAWHA, to-wit:
I, Mark E. Kauffelt, Counsel for of Nexus Communications, Inc., dba TSI, after first
being duly sworn, upon my oath depose and say that I have read and am familiar with the
foregoing “Petition of Nexus Communications, Inc., dba TSI for Designation as an Eligible
Telecommunications Carrier in the State of West Virginia for the Limited Purpose of Offering
Lifeline and Link Up Service to Qualified Households” and that the facts and allegations
contained therein are true, except so far as they are therein stated to be on information, and that,
so far as they are therein stated to be on information, I believe them to be true.
Taken, subscribed and sworn to before me, the undersigned authority, this the 3rd day of June, 2009.
My Commission expires F C ~ V O 4 26 2.0 15
Notary Public
40
DOC ID --> 20002580001 4 ___
~~
1ll111llllllll~llll~llllllllllllilllllllll I I Ill11 1111 11111 1111 1111 DATE: 09/14/uxK)
DOCUMENT ID 200025800014
DESCRDTION DOMESTIC ARTICLESiFOR PROFIT
FILING 85.00
EWED .W
PENALTY . 00 CERT .oo
COPY .oo
(ARR Receipt
This is not a bill. Please do not remit payment.
NATHANIEL HAWTHORNE 27600 CIrlAGRZN BLVD NO. 260 CLEVELAND, OH 44122
Ohio Secretary of State, J. Kenneth Blackwell 1180608
It i s hereby certified that the Secretary of State of Ohio has custody of the business records for
NEXUS COMMUNICATIONS, INC.
and, that said business records show the filing and recording o f
Document(s) Document No(s): DOMESTIC ARTICtESlFOR PROFIT 200025800014
Witness my hand and the seal of the Secretary of State at CoIumbus, Ohio this 11th day of September,
United States of America State of Ohio
Office of the Secretary of State - - -- -
Page 1
DOC ID --> 20002580001 4
Prescribed by J. Kenneth Blackwell Please obtain fee amount and mailing instructions from the Forms Inventory List (using the 3 digit form ii located at the bottom of this form). To obtain the Forms Inventory List or for assistance, please call Customer Service: Central Oluo: (614)466-3910 Toll Free: 1-877kOS-EaE (1-877-767-3453)
ARTICLES OF INCORPORATION (Under Chapter 1701 of the Ohio Revfwd Code)
Profit Corporation
The undersigned, desiring to form a corporation, for profit, under Sections 1701.01 et seq. of the Ohio Revised Code, do hereby state the following:
FlRST. The name of said corporation shall be:
. . . .. . . Nexus Communications, Inc.
SECOND. The place in Ohio where its principal office is to be located is
Lewis Center ,Franklin. County. Ohio . . (city, village or t o G h i p j
mv-a d istance tele c m m u n i cations. internet access. cell ular. w a n d
other telecommunications services. .
. . THIRD. The purpose(s) for which this corporation is formed is:
. .- FOURTIL The number of shares which the corporation is authorized to have outstanding is: I OD
(Please state whether shares are common or preferred, and their par value, if any. Shares will be recorded as cornman with no par value unless otherwise indicated.)
September I O , 2000 IN WITNESS WHEREOF, we have hereunto subscribed our names, on (date) -
Signature: q b , , ,_ , , lncorporator
. . ~ a m e : Nathaniel
Signature: , lncorporator Name: Paul Karas
C , lncorporator
Name: Marcia Schmidt -
1 13ARF Page 1 of 2 Version: May 1, 1999
Page 2
DOC ID --> 200025800014
Prescribed by J. Kenneth Blackwell Please obtein fee amount and mailing instructions from the Forms Inventory Llst ( using the 3 digit form #located at the bottom of this form). To obtain the Forms Inventory List or for assistance, please call Customer Service: Cenual Ohio: (614)466-3910 Toll Free: 1-877-SOS-FILE (1-877-767-3453)
ORTGTNAL APPOINTMENT OF STATUTORY AGENT
The undersigned, baing at l a s t a majority of thc incorporators of Nexus COmmUniCatiOnS, InC.
bereby appoint Nathaniel Hawthorne . _. , to be .. statutory . agent upon whom any process, notice or
. . I .
.r,.:. . .I
demand rcqui ~f~~@tt;tt,~&s@[t$ to&u~f;.f&on the corporation may be served. The complete address of the agent is: ,
(street name and nizbir P.O. Box& are oo~acceptabk) ' . ' '
(rip code). -' . ., - - . ... . . Cleveland, . ._ - .Ohio 44122 .:-
(city, v i i l a p or town&&) . ..
Signature: -_ . 4
Name:Nathanrel Hawthorne
Signature: _fd& Name: Paul Karas - -
Signature: N m e : Marcia Ychmidt
ACCEPTANCE OF APPOINTMENT
, named herein as the statutory agent for, Inc.
.. - ,hereby acknowledges and accepts the The undersigned,Nathanici Hawthorne
apporntment of statutory agent for said corporation : ..- "-
Signature: d A w - Statutory Agent
'l13-ARF Psge 2 of 2 Version: May I, 7999
Page 3
DOC ID --> 200829101388
Receipt This is not a bill, Please do not remit payment.
CORPORATION SERVICE COMPANY AlTN: COA PO BOX 2969 SPRINGFIELD, II 62708
S T A T E OF O H I O C E R T I F I C A T E
Ohio Secretary of State, Jennifer Brunner
1180608
It is hereby certified that the Secretary of State of Ohio has custody of the business records for
NEXUS COMMUNICATIONS, INC.
and, that said business records show the filing and recording of:
Document( s) DOMESTIC AGENT SUBSEQUENT APPOINTMENT
Document No( s) : 2008291 01388
DATE: DOCUMENT ID DESCRIPTION FILING EXPED PENALTY CERT COPY 10/20/2008 200829101388 DOMESTIC AGENT SUBSEQUENT 25.00 .oo .oo 00 .oo
APPOINTMENT (AGS)
United States of America State of Ohio
Office of the Secretary of State
Witness my hand and the seal of the Secretary of State at Columbus, Ohio this 17th day of October, A.D. 2008.
g--e-& Ohio Secretary of State
I.
Page 1
DOC ID --> 2008291 01 388
(I) Subsequent Appointment of Agent (2) Change of Address of an Agent &orp U L P (ie5-AGs) &orp LP (145AOA)
LLC (171-LSA) 0 LLC (1441AD)
Prescribed by : The Ohio Sccrctary of State
Central Ohio: (614) 466.3910 Toll Frre. 1-877-SOS-FILE (1-877-767-3453)
(3) Resignatlon of Agent n c O r p LP (155-AGR)
U L L C (159110)
Expedite this Form: {LIU~IMII
PO Box 1390 1 Oyer Columbus, OH 43216
. -- STATUTORY AGENT UPDATE (For DomesNc or Foreign, Profit or Nonprofit)
Filing Fee $25.00 OCT 1 7 20Qb
S E G R ~ A ~ ? ~ OF s W E
Name and Address of New Agent
CSC-Lawyers Incorporating Service (Corporation Service Company) (NamsJ 50 West Broad Street, Suite 1800 [SfreetJ NOTE: P.O. Box Addresser are NOTacceptabls.
Columbus Franklin nhin 43215 (Zip Codo) lCW ICWfY) (steta)
\The Undersigned, CSC-Lawyers Incorporating Service (Corporation Sewice Company) , named herein as
the Statutory agent for, NEXUS COMMUNICATIONS, INC. ,hereby acknowledges and accepts the appointment of statutory agent for said entity.
Signature: Company) (Sthtutory Agent)
Keyna Etter, Asst. Seoretary If the entity listed is a foreign corporation, the agent does not have to sign he-t
521 Page 1 of 2 Lad Revioed: May 2W2
Page 2
Doc ID --> 2008291 01 388
CompieN tha information in this section if bar (21 Is checked. 1 Old Address of Agent
(Slfeet) NOTE; P.O. Box Addmssss am NOT aocaptabk.
New Address of Agent (stmi) NOTE: P.O. Box Addresses are NOTafCepldbk.
Ohio (CW (Slale) WP codel
Complete the infarmalion in this sectIan lfbox (3) 1s checked. I !Is this agent resigning?
Current or last known address
where a copy of this Resignation of Agent was sent as of the date of filing or prior to the date filed (CW (Stale) fZip code)
of the entity's principal offlce (srmer) NOTE. P . 0 . BO;. Addmrres am NOTacc*ptabl..
REQUIRED Must bs authenticated (signed) by an aulhorized representative
(See instructions)
521 Page 2 a1 2 Last Revised: May 2Wi
Page 3
.,...
Til. (304) 538-8000 Fa% (304 558-8381
a.
b.
c.
Nexus Communications, Xnc,
state of ' 0% Date of incorp tion (# ynr. Qr paq~tuat) rningr T&% qurfing requ
will not cnd until a withdmwt is fill. (If an Insurance company) i
NAJC #
Home state name as Listed on line La. above, if avdilabfe,
DUA name
Corporation Service Company Name
209 West Washington Stwet, Charleston, WV 35302 Address - U.
ALDERSON ALLOY ALUM CREEK ANSTED APPLE GROVE BECKLEY BEECH BOTTOM BELINGTON
BELLE BERKELY SPRINGS BETHANY BRADSHAW BRANDYWINE BRIDGEPORT
BRUSHTON
BUCKHANNON BUFFALO BURNSVILLE ,
CHAPMANVILLE CHARLESTON CHEAT LAKE CHESTER CLAR KS BU RG CLENDENIN CRAIGSVILLE DALL I SON DELBARTON DUTCH RIDGE EAST BANK
ELIZABETH ELK GARDEN ELKINS ELKVIEW FAIRMONT FA1 RVI EW
FALLNG WATERS FARM I NGTON FAYETJEVILLE FLAT TOP FOLLANSBEE FORT GAY FRANKLIN GASSAWAY GAULEY BRIDGE
GILBERT GLEN DANIEL GLENVILLE GORMANIA GRAFTON
G RE E NVI L LE
G RI FITHSVI LLE HARBORSVILLE HEDGESVILLE HELEN HINTON HUNTINGTON HURRICANE IAEGER INWOOD JANE LEW KEN OVA KERMIT KEYSER KI NGWOOD
LEON LEWISBURG LOGAN LUBEK LUMBERPORT MAD1 SON
MAN MANNINGTON MARTINSBURG MASON MATEWAN MEADOW BRIDGE MIDDLEBORNE MILTON
MI NE RAL WELLS
MONTGOMERY MORGANTOWN MOU NDSVl LLE MOUNT HOPE MULLENS NEW CUMBERLAND NEW MARTI NSVl LLE NEWBURG NITRO OAK HILL OCEANA PADEN CITY PARKERSBURG PENNSBORO PETERSTOWN PHILIPPI PIEDMONT PIN EVI LLE POCATALICO POINT PLEASANT
P RI CHARD RAINELLE RAVENSWOOD RICHWOOD RI DGELEY RIPLEY
RIVESVILLE ROCK CAVE ROWLESBURG SALEM SCOTT DEPOT SETH SHIN NSTON SISTERSVILLE
SOPHIA
SPENCER ST. ALBANS SUMMERSVILLE SUTTON TERRA ALTA
TRIADELPHIA
TUNNELTON UNION UNION RIDGE VALLEY MILLS VAN WALTON WEIRTON WELLSBURG WEST LIBERTY WEST MILFORD WEST UNION WESTON WHARTON WHEELING WHITE SULPHUR SPRINGS WHITESVILLE WILLIAMSON WILLIAMSTON WINFIELD
43
CTIA To provide consumers with information to help them make informed choices when
selecting wireless service, to help ensure that consumers understand their wireless serv-
ice and rate plans, and to continue t o provide wireless service that meets consumers’
needs, the CTIA and the wireless carriers that are signatories below have developed the
following Consumer Code. The carriers that are signatories to this Code have voluntar-
ily adopted the principles, disclosures, and practices here for wireless service provided
to individual consumers.
THE WIRELESS CARRIERS THAT ARE SIGNATORIES TO THIS E WILL:
O N E
ISCLOSE RATES AND TERMS OF SERVICE TO CO
or each rate plan offered to new consumers, wireless carriers will make available to consumers in col- F lateral or other disclosures a t point of sale and on their web sites, a t least the following information, as applicable: (a) the calling area for the plan; (b) the monthly access fee or base charge; (c) the number of airtime minutes included in the plan; (d) any nights and weekend minutes included in the plan or other differing charges for different time periods and the time periods when nights and weekend minutes or other charges apply; (e) the charges for excess or additional minutes; (4 per-minute long distance charges or whether long distance is included in other rates; (9) per-minute roaming or off-network charges; (h) whether any additional taxes, fees or surcharges apply; (i) the amount or range of any such fees or sur- charges that are collected and retained by the carrier; (j) whether a fixed-term contract is required and its duration; (k) any activation or initiation fee; and (I) any early termination fee that applies and the trial peri- od during which no early termination fee will apply.
T W O
MAKE AVAILABLE MAPS SHOWING WHERE SERVICE IS GENERALLY AVAILABLE
ireless carriers will make available at point of sale and on their web sites maps depicting approxi- mate voice service coverage applicable to each of their rate plans currently offered to consumers.
To enable consumers to make comparisons among carriers, these maps will be generated using general- ly accepted methodologies and standards to depict the carrier’s outdoor coverage. All such maps will contain an appropriate legend concerning limitations and/or variations in wireless coverage and map
usage, including any geographic limitations on the availability of any services included in the rate plan. Wireless carriers will periodically update such maps as necessary to keep them reasonably current. If nec- essary to show the extent of service coverage available to customers from carriers' roaming partners, car- riers will request and incorporate coverage maps from roaming partners that are generated using similar industry-accepted criteria, or if such information is not available, incorporate publicly available informa- tion regarding roaming partners' coverage areas.
T H R E E
PROVIDE CONTRACT TERMS TO CUSTOMERS AND ONF FIR^ CHANGES IN SERVICE
en a customer initiates service with a wireless carrier or agrees to a change in service whereby the Wh customer is bound to a contract extension, the carrier will provide or confirm the material terms and conditions of service with the subscriber.
F O U R
~ L ~ O ~ A TRIAL PERIOD FOR NEW SERVICE
hen a customer initiates service with a wireless carrier, the customer will be informed of and given W a period of not less than 14 days to try out the service. The carrier will not impose an early termi- nation fee if the customer cancels service within this period, provided that the customer complies with applicable return and/or exchange policies. Other charges, including airtime usage, may sti l l apply.
F I V E
PROVIDE SPECIFIC DISCLOSURES IN ADVERT!
n advertising of prices for wireless service or devices, wireless carriers will disclose material charges and I conditions related to the advertised prices, including if applicable and to the extent the advertising medium reasonably allows: (a) activation or initiation fees; (b) monthly access fees or base charges; (c) any required contract term; (d) early termination fees; (e) the terms and conditions related to receiving a prod- uct or service for "free;" (f) the times of any peak and off-peak calling periods; (9) whether different or additional charges apply for calls outside of the carrier's network or outside of designated calling areas; (h) for any rate plan advertised as "nationwide," (or using similar terms), the carrier will have available sub- stantiation for this claim; (i) whether prices or benefits apply only for a limited time or promotional peri- od and, if so, any different fees or charges to be paid for the remainder of the contract term; (j) whether any additional taxes, fees or surcharges apply; and (k) the amount or range of any such fees or surcharges collected and retained by the carrier.
SEPARATELY I ~ E ~ T t F Y CARRIER CHARGES FROM TAXES 0 BILLING STATEMENTS
n customers' bills, carriers will distinguish (a) monthly charges for service and features, and other 0 charges collected and retained by the carrier, from (b) taxes, fees and other charges collected by the carrier and remitted to federal state or local governments. Carriers will not label cost recovery fees or charges as taxes.
S E V E N
PROVIDE CUSTOMERS THE RIGHT TO TERMINATE SERVICE
FOR CHANGES TO C NTRACT TERMS
arriers will not modify the material terms of their subscribers' contracts in a manner that is materially C adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early ter- mination fee.
E I G H T
ROVlDE READY ACCESS TO C ~ S T O ~ E R ~ERVICE
ustomers will be provided a toll-free telephone number to access a carrier's customer service during C normal business hours. Customer service contact information will be provided to customers online and on billing statements. Each wireless carrier will provide information about how customers can con- tact the carrier in writing, by toll-free telephone number, via the Internet or otherwise with any inquiries or complaints, and this information will be included, a t a minimum, on all billing statements, in written responses to customer inquiries and on carriers' web sites. Each carrier will also make such contact infor- mation available, upon request, t o any customer calling the carrier's customer service departments.
N I N E
RQMPTLY RESPOND TO CONSUMER I N Q U I ~ I E ~ AND COMPLAINT^
RECEIVED FROM GQVE N M ~ ~ T A ~ E N C ~ E ~
ireless carriers will respond in writing to state or federal administrative agencies within 30 days of receiving written consumer complaints from any such agency.
T E N
ABl5E BY POLICIES FOR PROTECTION OF CUSTOMER PRIVACY
ach wireless carrier will abide by a policy regarding the privacy of customer information in accordance E with applicable federal and state laws, and will make available to the public i ts privacy policy con- cerning information collected online.