Federal Communications Commission
Before the
Federal Communications Commission
Washington, D.C. 20554
·DA 02·1252
In the Matter of
Fedeml-State Joint Board on
Universal Service
Pine Belt Cellular, Inc. and
Pine Belt PCS, Inc.
Petition for Designation as an
Eligible Telecommunications Carrier
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CC Docket No. 96-45
l\-IEMORANDUM OPINION AND ORDER
Adopted: May 24, 2002
By the Deputy Chief, Wireline Competition Bureau:
I. INTRODUCTION
Released: May 24, 2002
I. In this Order. we grant the joint petition of Pine Belt Cellular, Inc. and Pine Belt
PCS,lnc. (referred to collectively hereinafter as the Pine Belt companies) to be designated as
eligible telecommunications carriers (ETCs) in Alabama, pursuant to section 214(e)(6) ofthe
Communications Act of 1934, as amended (the Act).' In so doing. we conclude that the Pine
Belt companies have provided an affirmative statement that the Alabama Public Service
Commission (Alabama Commission) lacks the jurisdiction to perform the designation for them,
and that the FederaJ Communications Commission (Commission) therefore has authority to
perfonn the requested ETC designations under section 214(e)(6) of the AC1.
2
We also find that
the Pine Belt companies have satisfied the statutory eligibility requirements ofsection
2I4(e)(1 ):' Specifically. we conclude that the Pine Belt companies have demonstrated that they
will offer and advertise the services supported hy the federal universal service support
mechanisms throughout thede~ignatedservice areas.
II. BACKGROUND
2. The Act. Section 254(e) of the Act provides that "only an eligible
I Petition for Designation as an Eligible Telecommunications Carrier by Pine Belt Cellular, Inc. and Pine Belt PeS.
Inc.. filed November 26.2001 (Pine Belt Petition). See 47 U.S.c. § 214(e)(6). Pine Bell Cellular, Inc. and Pine Belt
PeS, Inc.• are both affiliated with Pine Belt Telephone Company. a provider of wireline telephone service in rural
Alabama. Pine Bell Petition at 2. BOlh companies seek designation as eligible telecommunications carriers for the
same service areas. and submit a cenific3tion by John C. Neules. President of both companies. Su Pine Belt
Petition at 2, Exhibits I. 3. We there!ilre consider their requests together.
247 U.S.C. § 214(e)(6).
J 47 U.S.c. § 214(e)(I).
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Federal Communications Commission DA02.1252
telecommunications carrier designated under section 2l4(e) shall be eligible to receive specific
Federal universal service support.'.4 Pursuant to section 214(e)(l), a common carrier designated
as an ETC must offer and advertise the services supported by the federal universal service
mechanisms throughout the designated service areas.
s
3. Section 214(e)(2) of the Act gives state commissions the primary responsibility
for performing ETC designations.
6
Section 214(e)(6), however, directs the Commission, upon
request. to designate as an ETC "a common carrier providing telephone exchange service and
exchange access that is not subject to the jurisdiction of a State commission.',7 Under section
214(e)(6), upon request and'consistent with the public interest, convenience, and necessity. the
Commission may, with respect to an area served by a rural telephone company, and shall. in all
other cases. designate more.than one common carrier as an ETC for a desi,nated service area, so
long as the requesting carrier meets the requirements of section 2l4(e)(l).
4. Filing Requir.ements (or ETC Designation. On December 29.1997, the
Commission released a Public Notice establishing the procedures for carriers seeking
Commission designation as an ETC under section 214(e)(6).9 In the Section 2J4(e)(6) Public
Notice. the Commission delegated authority to the Chief of the Common Carrier (now Wireline
Competition) Bureau to designate carriers as ETCs pursuant to section 2l4(e)(6).10 The
Commission instructed carriers seeking ETC designation to set forth in a petition several items in
compliance with the statute. First. petitioners must submit a certification and brief statement of
supporting facts demonstrating that the petitioner is "not SUbject to the jurisdiction of a state
commission.,,11 Second. petitioners must submit a certification that the petitioner offers all
4 47 U.S.C. § 254{e).
! Section 214(e){1) provides that:
A common carrier designated as an eligible telecommunications carrier under [subsections 214(e)(2), (3), or (6)]
shall be eligible to receive universal service support in accordance with section 254 and shall. throughout the service
area forwhic~the designation is received --
(A) offer the services that are supported by Federal universal service support mechanisms under section 254(c),
either using its own facilities or a combination of its own facilities and resale of another carrier's services (including
the services offered by another eligible telecommunications carrier); and
(B) advertise the availability of such services and the charges therefor using media ofgeneral distribution.
47 U.S.c. § 214(e){l).
647 U.S.C. § 214(e)(2). See also Federal-State Joint Board on Universal Serviu: Promoting Deployment and
Subscribership in Unserved and Undersen'ed Areas. Including Tribal and Insular Areas, CC Docket No. 96-45,
Twelfth Report and Order. Memorandum Opinion and Order, and Further Notice of Proposed Rulemaking, 15 FCC
Red 12208. 12255. para. 93 (2000) (Twelfth Report and Order).
7 47 U.S.c. § 214(e)(6). See, e.g., Designation ofFort Mojave Telecommunications. Inc.. Gila River
Telecommunications. Inc.. San Carlos Telecommunications. Inc.. and Tohono O'odham Utility Authority as Eligible
Telecommunications Carriers Pursuant to Section 2J4(ej(6) of/he Communications Act, CC Docket No. 96-45,
Memorandum Opinion and Order. 13 FCC Red 4547 ICom. Car. Bur. 1998).
B 47 U.S.C. § 214(e)(6).
9 Procedures for FCC Designation ofEligible Telecommunication.s Carriers Pursuant to Section 214(eX6) ofthe
Communications Act. Public Notice, 12 FCC Rcd 22947 (1997) (Section 2J4(eX6) Public Notice).
10 Id. at 22948.
IIld.
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Federal Communications Commission DA02·1252
services designated for support by the Commission pursuant to section 254(c).12 Third,
petitioners must provide a certification that the petitioner offers the supported services "either
using its own facilities or a combination of its own facilities and resale of another carrier's
services.',13 Fourth, petitioners must offer a description ofhow the petitioner "advertise[s] the
availability of [supported] services and the charges therefor using media ofgeneral
distribution.',14 H the petitioner is not a rural telephone company, the petitioner must include a
detailed description of the geographic service areas for which it requests an ETC designation
from the Commission.'s
5. Pursuant to the Twelfth Report and Order, a carrier seeking designation as an
ETC for service provided on non-tribal lands must first consult with the appropriate state
regulatory commission, even if the carrier contends that the state commission lacks jurisdiction
over the carrier. 16 While a carrier may assert that state law precludes the state commission from
exercising jurisdiction over the carrier for purposes ofETC designation under section 2I4(e)(2),
the principle offederal-state comity dictates that the state commission be afforded an opportunity
to interpret state law.
17
Accordingly, the Commission will only consider a section 214(e)(6)
designation request from a carrier serving non-tribal lands where a carrier provides the
Commission with an "affirmative statement" from a court ofcompetent jurisdiction or the state
commission that it lacks jurisdiction to perform ETC designations over a particular carrier.
18
An
"affumative statement" from a state commission may consist ofany duly authorized letter,
comment, or state commission order indicatin, that the body lacks jurisdiction to perform the
requested designation for a particular carrier.I
6. Pine Belt Petition. The Pine Belt companies submitted to the Alabama
Commission a request for ETC designation and request for clarification regarding jurisdiction on
September II, 2001.
20
The application sought clarification regarding the Alabama
Commission's jurisdiction over providers ofcellular services, broadband personal
communications services, and commercial mobile radio services in connection with the Pine Belt
companies' efforts to obtain ETC designation in Alabama
21
On March 12,2002, the Alabama
Commission issued an order stating:
... [The Alabama Commission] has no authority to regulate, in any respect,
cellular services, broadband personal communications services and commercial
12/d.
13
1
d. at 22949.
I- Id.
IS Id.
16 Twelfth Report and Order. IS FCC Red at 122SS. para. 93.
•7/d. at 12264. para. 113.
li/d.
.91d.
'"Set Pine Bell Cellular. Inc. and Pine Belt PCS. Inc. Petitionlor ETC StaIiIS and/or Clarification Regarding the
Jurisdiction olthe Commission 10 Granl ETC SttJtus to Wireless CArrius. Dockel U-UOO. Order. Alabama Public
Service Commission (March 12.2002) (Alabama Commission Order).
21/d.
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Federal Communications Commission DA 02-1252
mobile radio services in Alabama. Given the aforementioned conclusions by the
Commission. it seems rather clear that the [Alabama] Commission has no
jurisdiction to take action on the Application of the Pine Belt companies for ETC
status in this jurisdiction. The Pine Belt companies and all other wireless
providers seeking ETC status should pursue their ETC designation request with
the FCC as provided by 47 U.S.C. § 214(e)(6).22
7. On November 26,2001, the Pine Belt companies filed with the Commission a
joint petition pursuant to section 214(e)(6) seekin:fi designation ofeligibility to receive federal
universal service support for service in Alabama. On December 7.2001. the Wireline
Competition Bureau released a Public Notice seeking comment on the Pine Belt Petition.
24
No
comments were submitted.in response to the Public Notice.
III. DISCUSSION
8. We find, as discussed in more detail below. that the Pine Belt companies have met
all the requirements set f6rth in sections 214(e)(I) and (e)(6) to be designated as ETCs by this
Commission for the provision ofservice in the designated area of Alabama. We conclude that
the Pine Belt companies have demonstrated that the Alabama Commission lacks the jurisdiction
to perfonn the designation, and that the Commission therefore may consider the Pine Belt
companies' petition under section 214(e)(6). We also conclude that the companies have
demonstrated that they now offer and advertise, or will offer and advertise. the services
supported by the federal universal service support mechanisms throughout the designated service
areas upon designation as ETCs. Furthermore, we find that the designation of the Pine Belt
companies as ETCs serves the public interest because it will benefit consumers in Alabama by
promoting competition and new technologies in the area and universal service to those
consumers. Pursuant to our authority under section 214(e)(6), we therefore designate the Pine
Belt companies as ETCs in Alabama.
9. Commission Authority to Perform the ETC Designation. We find that the Pine
Belt companies have demonstrated that the Alabama Commission lacks the jurisdiction to
perfonn the requested ETC designation and that the Commission therefore has authority to
consider their petition under section 214(e)(6) of the Act. We deem the Alabama Commission
Order ofMarch 12, 2002 to constitute the affirmative statement required under our rules.
2S
10. Offering the Services Designated for Support. We find that the Pine Belt
companies have demonstrated through the required certifications that they now offer, or will
offer, the services supported by the federal universal service mechanisms upon designation as
ETCs. The Pine Belt companies are CMRS carriers serving. in accordance with licenses granted
by the Commission, wireless service territories that include Alabama Rural Service Area 3B2 for
cellular services and the Selma basic trading area (FCC Market 8415) for personal
Z2 A/Qbama CommissionOrd~rat 2 (emphasis in the original).
Z3Se~g~n~ral/yPine Belt Petition.
24S~~CommonCarri~rBur~auSeeks Co_ntonPin~BdtC~llularandPin~B~/tPCSP~/itionfor DtsigNJIUm
as anEligib/~T~/~communicationsCarri~rin AlabanllJ. CC Docket No. 96-45. Public Notice, DA 01-2841 (rei.
December 7. 200I).S~ealso 66,Fed. Reg. 65210 (December 18. 200 I).
!\Su Alahanfo.l Commission Order;TM.'~lfthR~p()nalldOrd~rat 12264.
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Federal Communications Commission DA 02-1252
communications services.
26
The Pine Belt companies certify that they currently provide all of
the services and functionalities enumerated in section 54.101(a) of the Commission's rules
throughout their cellular service areas in Alabama.
27
The Pine Belt companies certify that they
have the capability to offer single-party service, voice-grade access to the public switched
network, the functional equivalents to DTMF signaling, access to operator services, access to
interexchange services, access to directory assistance, and toll limitation for qualifying low 
income consumers.
28
The Pine Belt companiescomp~with applicable law and Commission
directives on providing access to emergency services. In addition, although the Commission
has not set a minimum local usage requirement, the Pine Belt companies certify that they
currently offer several service options including varying amounts oflocal usage, and intend to .
offer their universal service customers a rate plan that includes unlimited local usage.
30
The Pine
Belt companies indicate that, upon designation as ETCs, ther will make available "universal
service offerings" that include all ofthe supported services.
3
Finally, the Pine Belt companies
commit to provide service to any requesting customer within the designated service areas.
32
We
therefore conclude that the Pine Belt companies comply with the requirement ofsection
2l4(e)(I)(A) to "offer the services that are supported by Federal universal service support
mechanisms under section 254(c) .. .',33 .
II. Offering the Supponed Services Using a Carrier's Own Facilities. We conclude
that the Pine Belt companies have demonstrated that they satisfy the requirement ofsection
214(e)(1 )(A) that they offer the supported services using either their own facilities or a
combination oftheir own facilities and resale of another carrier's services.
34
The Pine Belt
companies state that they provide the supported services "using [their] existing network
infrastructure, consisting ofswitching, trunking, cell sites, and network equipment, together with
any expansions and enhancements to that network.,,3S We find this certification sufficient to
satisfy the requirements ofsection 214(e)(I)(A).
26 Pine Belt Petition at 2.
21 Id. at 2. Pursuant to section 254(c). the Commission has defined those services that are to be supported by the
federal universal service mechanisms to include: (I) voice grade access to the public switched network; (2) local
usage; (3) Dual Tone Multifrequency (DTMF) signaling or its functional equivalent; (4) single-party service or its
funclional equivalent; (5) access to emergency services. including 911 and enhanced 911; (6) access 10 operator
services; (7) access to inlerexchange services; (8) access to directory assistance; and (9) toll limitation for qualifying
low-income customers. 47 C.F.R. § 54.lOl(a).
28 Pine Belt Petition at 4-7.
29 See 47 C.F.R. § 54.lOl(a)(5) (stating that access to emergency services includes access to 911 and enhanced 911
to the extent the local government in an eligible carrier's service area has implemented 911 or enhanced 911
systems). The Pine Belt companies currently provide access to emergency services throughout their cellular service
areas by dialing 911. Pine Belt Petition at 5. The Pine Bell companies indicate that they have completed Phase I
E911 implementation in all jurisdictions that have requested it (four ofthe five counties they serve), and that no
public emergency service provider in their service area has requested Phase II compliance. Id. at 6.
30 Pine Belt Petition at 5.
31 Id. at 2-4.
321d. at 3.
33 47 V.S.c. §214(e)(I)(A).
·lol
l
d.
35 Pine Belt Petition at 7.
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Federal Communications Commission DA 02·1252
12. Advertising the Supported Services. We conclude that the Pine Belt companies
have demonstrated that they satisfy the requirement of section 214(e)(l)(B) to advertise the
availability of the supported services and the charges therefor using media ofgeneral
distribution.
36
The Pine Belt companies certify that they will advertise the availability oftheir
universal service offerings, and the charges therefor, using media of general distribution.
31
The
Pine Belt companies currently advertise their wireless services through various media, including
television, radio, newspaper, and billboards. as well as targeted advertising.
38
The Pine Belt
companies state that they will expand upon these media. as necessary. to ensure that customers
within their designated service areas are fully informed oftheir universal service offerings:
l9
We
find this certification sufficient to satisfy the requirements ofsection 214(e)(I )(B). Moreover,
because ETCs receive unive.rsal service support only to the extent that they serve customers, we
believe that strong economic incentives exist, in addition to the statutory obligation, to advertise
the universal service offerings in Alabama.
4O
13. Public Interest Analysis. We conclude that it is "consistent with the public
interest, convenience, and necessity" to designate the Pine Belt companies as ETCs in the
requested non-rural service area that is served by Verizon and BellSouth.
41
As the Commission
has previously stated, for those areas served by non-rural telephone companies, the designation
ofan additional ETC based upon a demonstration that the requesting carrier complies with the
statutory eligibility obligations ofsection 214(e)(1) is consistent per se with the public interest.
42
An important goal of the Act is to open local telecommunications markets to competition, and
Congress recognized that tlie promotion ofcompetition is consistent with the public interest in
those areas served by non-rural telephone companies.
43
AdditionaJly. we note that no parties
filed oppositions to the Pine Belt Petition. We conclude that the Pine Belt companies have
demonstrated that their service offerings fulfill the underlying federal policies favoring
competition.
14. DesignatedService Areas. Consistent with the Pine Belt companies'rc~est.we
designate the Pine Belt companies as ETCs for the requested service areas in Alabama. These
service areas encompass the current service areas of Verizon and BellSouth as indicated in
Exhibit 3 ofthe Pine Belt Petition.
4s
36 47 U.S.C. § 214(e}( I)(B).
31 Pine Belt Petition at 1.
3a ld.
39ld.
«J See id. (assening that the Pine Bell companies will have economic incenlives to advenise).
41 See 47 U.S.C. § 214(e)(6).
42 See. e.g.• Cellco Pannership d/b/a Bell At/amic Mobile Petition for Desixnarion as an Eligible
Telecommunications Carrier, CC Docket No. 96-45. Memorandum Opinion and Order. 15 FCC Rcd 39 (Com. Car.
Bur. 2000).
4~See 47 U.S.C. § 214(e)(6).
~See Pine Belt Pelilion at 1·2, Exhibit 3. Under seclion 214(e)(5) oft/Ie ACI. "service area" connoles a geographic
area established by a state commission, or the Commission under section 214(e)(6). for lhe purpose ofdetermining
universal service obligations and suppan mechanisms. 47 U.S.C. § 214(e)(5).
J~Pine Bell Petition at Exhibil 3.
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Federal Communications Commission
IV. ANTI-DRUG ABUSE ACf CERTIFICATION
DA02-1252
15. Pursuant to section 5301 of the Anti-Drug Abuse Act of 1988, no applicant is
eligible for any new, modified, or renewed instrument ofauthorization from the Commission,
including authorizations issued pursuant to section 214 of the Act, unless the applicant certifies
that neither it, nor anyJ'arty to its application, is subject to a denial offederal benefits, including
Commission benefits. This certification must also include the names ofindividuals specified
by section 1.2002(b) of the Commission's rules.
47
The Pine Bell companies have provided a
certification consistent with the requirements of the Anti·Drug Abuse Act of 1988.
43
We find
that the Pine Belt companies have satisfied the requirements ofthe Anti-Drug Abuse Act of
1988, as codified in sections 1.2001-1.2003 of the Commission's rules.
V. ORDERING CLAUSES
16. Accordingly, IT IS ORDERED that, pursuant to the authority contained in section
2I4(e)(6) ofthe Communications Act, 47 U.S.C. § 214(e)(6), and the authority delegated in
sections 0.91 and 0.291 ofthe Commission's rules, 47 C.F.R. §§ 0.91, 0.291, Pine Belt Cellular,
Inc. and Pine Belt PeS, Inc. ARE DESIGNATED ELIGmLE TELECOMMUNICATIONS
CARRIERS for the designated service areas in Alabama, as discussed herein.
17. IT IS FURTHER ORDERED that a copy ofthis Memorandum Opinion and Order
SHALL BE transmitted by the Wireline Competition Bureau to the Universal Service
Administrative Company.
FEDERAL COMMUNICATIONS COMMISSION
Carol E. Mattey
Deputy Chief, Wireline Competition Bureau
016 47 U.S.C. § 1.2002(a); 21 U.S.C. § 862.
47 Section 1.2002(b) provides that a certification pursuant to that section shall include: "(I) Ifthe applican; is an
individual. that individual; (2) Ifthe applicant is a corporation or unincorporated association. all offIcers. directors,
or persons holding S'll or more ofthe outstanding stock or shares (voting/and or non-voting) ofthe petitioner; and
(3) Ifthe applicant is a partnership. all non-limited partners and any limited partners holding a 5% or more interest
in the partnership." 47 C.F.R. § 1.2002(b).
... See Pine Belt Petition, Exhibit I.
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