Federal Communications Commission DA 10-2433
Before the
Federal Communications Commission
Washington, D.C.  20554
In the Matter of
Telecommunications Carriers Eligible for 
Universal Service Support
Virgin Mobile USA, L.P. Petition for Designation 
as an Eligible Telecommunications Carrier
in the State  of Alabama
Virgin Mobile USA, L.P. Petition for Designation 
as an Eligible Telecommunications Carrier
in the State of Connecticut
Virgin Mobile USA, L.P. Petition for Designation 
as an Eligible Telecommunications Carrier
in the District of Columbia
Virgin Mobile USA, L.P. Petition for Designation 
as an Eligible Telecommunications Carrier
in the State of Delaware
Virgin Mobile USA, L.P. Petition for Designation 
as an Eligible Telecommunications Carrier
in the State of New Hampshire 
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WC Docket No. 09-197
ORDER
Adopted:  December 29, 2010 Released:  December 29, 2010
By the Chief, Wireline Competition Bureau:
I. INTRODUCTION
1. This order addresses five petitions filed by Virgin Mobile USA, L.P. (Virgin Mobile) 
pursuant to section 214(e)(6) of the Communications Act of 1934, as amended (the Act), and section 
54.202 of the Commission’s rules.1 Virgin Mobile seeks designation as an eligible telecommunications 
carrier (ETC) for the limited purpose of receiving federal universal service Lifeline support in its licensed 
service areas in Alabama, Connecticut, Delaware, New Hampshire, and the District of Columbia. As 
  
1 47 U.S.C. § 214(e)(6); 47 C.F.R. § 54.202; see Petition of Virgin Mobile USA, L.P. for ETC Designation in the 
State of Alabama, WC Docket No. 09-197 (filed Jan. 15, 2010) (Virgin Mobile Alabama Petition); Petition of Virgin 
Mobile USA, L.P. for ETC Designation in the State of Connecticut, WC Docket No. 09-197 (filed Feb. 17, 2010) 
(Virgin Mobile Connecticut Petition); Petition of Virgin Mobile USA, L.P. for ETC Designation in the State of 
Delaware, WC Docket No. 09-197 (filed Feb. 17, 2010) (Virgin Mobile Delaware Petition); Petition of Virgin 
Mobile USA, L.P. for ETC Designation in the District of Columbia, WC Docket No. 09-197 (filed Feb. 17, 2010) 
(Virgin Mobile DC Petition); Petition of Virgin Mobile USA, L.P. for ETC Designation in the State of New 
Hampshire, WC Docket No. 09-197 (filed Feb. 17, 2010) (Virgin Mobile New Hampshire Petition) (collectively, 
Virgin Mobile ETC Petitions).
Federal Communications Commission DA 10-2433
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discussed more fully below, we conditionally grant Virgin Mobile’s petitions for limited designation as an 
ETC.  In so doing, we find that while Virgin Mobile meets the eligibility requirements of section 
214(e)(6) of the Act and the Commission’s rules to be designated as an ETC, the public interest requires 
that Virgin Mobile comply with specific conditions, including fulfillment of certain voluntary 
commitments, designed to promote public safety among Lifeline customers and safeguard against waste, 
fraud, and abuse in the Lifeline program.2
II. BACKGROUND
A. The Act
2. Section 254(e) of the Act provides that “only an eligible telecommunications carrier 
designated under section 214(e) shall be eligible to receive specific federal universal service support.”3  
Pursuant to section 214(e)(1)(A) and (B), a common carrier designated as an ETC must offer and 
advertise the services supported by the federal universal service support mechanisms either using its own 
facilities or a combination of its own facilities and resale of another carrier’s services throughout its 
designated service area.4
3. Section 214(e)(2) of the Act gives state commissions the primary responsibility for 
designating ETCs in their states.5 Section 214(e)(6) 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.”6 Under section 214(e)(6), 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 designated service area, consistent with the public interest, convenience, 
and necessity, so long as the requesting carrier meets the requirements of section 214(e)(1).7 Before 
designating an additional ETC for an area served by a rural telephone company, the Commission must 
determine that the designation is in the public interest.8 The Wireline Competition Bureau (Bureau) has 
delegated authority to consider ETC designation requests.9
B. Commission Requirements for ETC Designation
4. An ETC petition must contain the following:  (1) a certification and brief statement of 
supporting facts demonstrating that the petitioner is “not subject to the jurisdiction of a state 
commission”; (2) a certification that the petitioner offers all services designated for support by the 
Commission pursuant to section 254(c) of the Act; (3) 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”; (4) a description of how the petitioner “advertise[s] the availability of the 
[supported] services and the charges therefor using media of general distribution”; and (5) if the petitioner 
  
2 47 U.S.C. § 214(e)(6); 47 C.F.R. § 54.202.
3 47 U.S.C. § 254(e).
4 47 U.S.C. § 214(e)(1)(A), (B).
5 47 U.S.C. § 214(e)(2).
6 47 U.S.C. § 214(e)(6).
7 Id.
8 Id.
9 See Procedures for FCC Designation of Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of 
the Communications Act, CC Docket No. 96-45, Public Notice, 12 FCC Rcd 22947, 22948 (1997) (Section 214(e)(6) 
Public Notice).
Federal Communications Commission DA 10-2433
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is not a rural telephone company, a detailed description of the geographic service area for which it 
requests an ETC designation from the Commission.10
5. In addition, an ETC applicant must demonstrate:  (1) a commitment and ability to provide 
service, including providing service to all customers within its proposed service area; (2) how it will 
remain functional in emergency situations; (3) that it will satisfy consumer protection and service quality 
standards; (4) that it offers local usage comparable to that offered by the incumbent local exchange carrier 
(LEC); and (5) an understanding that it may be required to provide equal access if all other ETCs in the 
designated service area relinquish their designations pursuant to section 214(e)(4) of the Act.11
6. Prior to designating an ETC pursuant to section 214(e)(6), the Commission must 
determine whether such designation is in the public interest.12 In determining the public interest, the 
Commission considers the benefits of increased consumer choice and the unique advantages and 
disadvantages of the applicant’s service offering.13 As the Commission noted in the ETC Designation 
Order, the same factors may warrant a different outcome depending on the specifics of the proposed 
service area and whether it is served by a rural or a non-rural telephone company.14 In particular, the 
Commission limits its creamskimming analysis to designations in areas served by rural telephone 
companies.15
C. Federal Universal Service Lifeline Support
7. The federal universal service Lifeline program is designed to reduce the monthly cost of 
telecommunications service for qualifying consumers.  Lifeline provides low-income consumers with 
  
10 Id.
11 See Federal-State Joint Board on Universal Service, CC Docket No. 95-45, Report and Order, 20 FCC Rcd 6371, 
6380, para. 20 (2005) (ETC Designation Order) (citing Federal-State Joint Board on Universal Service, CC Docket 
No. 96-45, Recommended Decision, 19 FCC Rcd 4259, 4261, para. 5 (Fed-State Jt. Bd. 2004)).  These requirements 
are mandatory for all ETCs designated by the Commission.  See 47 C.F.R. § 54.202(a), (b).
12 47 U.S.C. § 214(e)(6); 47 C.F.R. § 54.202(c); see also ETC Designation Order, 20 FCC Rcd at 6388–96, paras. 
40–57; Federal-State Joint Board on Universal Service; Virginia Cellular, LLC Petition for Designation as an 
Eligible Telecommunications Carrier in Virginia, CC Docket No. 96-45, Memorandum Opinion and Order, 19 FCC 
Rcd 1563, 1575, para. 27 (2005) (Virginia Cellular Order); Federal-State Joint Board on Universal Service; 
Highland Cellular, Inc. Petition for Designation as an Eligible Telecommunications Carrier for the Commonwealth 
of Virginia, CC Docket No. 96-45, Memorandum Opinion and Order, 19 FCC Rcd 6422, 6431–32, para. 21 (2004) 
(Highland Cellular Order).  The Commission places the burden on the ETC applicant to demonstrate that 
designation will serve the public interest.  ETC Designation Order, 20 FCC Rcd at 6390, para. 44.  The Commission 
adopted a single set of criteria for evaluating the public interest for ETC designations for areas served by both rural 
and non-rural carriers.  Id. at 6389–90, paras. 42–43; see also Virginia Cellular Order, 19 FCC Rcd at 1564, 1565, 
1575–76, 1584–85, paras. 1, 4, 27, 28, 46; Highland Cellular Order, 19 FCC Rcd at 6422, 6439–40, paras. 1, 33.
13 47 C.F.R. § 54.202(c).
14 ETC Designation Order, 20 FCC Rcd at 6390, para. 43.  Section 3 of the Act defines the term “rural telephone 
company.”  See 47 U.S.C. § 153(37).
15 ETC Designation Order, 20 FCC Rcd at 6389–90, paras. 42–43.  The term “creamskimming” refers to an entity 
offering service only to those customers who are the least expensive to serve.  See Federal-State Joint Board on 
Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 8881–82, para. 189 (1997) 
(subsequent history omitted) (Universal Service First Report and Order).  If an ETC applicant seeks designation 
below the study area level of a rural telephone company, the Commission conducts a creamskimming analysis to 
compare the population density of the wire centers in which the ETC applicant seeks designation against that of the 
wire centers in the study area in which the ETC applicant does not seek designation.  ETC Designation Order, 20 
FCC Rcd at 6392–95, paras. 48–53.
Federal Communications Commission DA 10-2433
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discounts of up to $10.00 off of the monthly cost of telephone service.16 Enhanced Lifeline provides 
qualifying low-income individuals living on tribal lands with up to $25.00 in additional discounts off the 
monthly cost of telephone service.17
D. Virgin Mobile Petitions
8. Virgin Mobile is a commercial mobile radio service (CMRS) provider of prepaid wireless 
telecommunications services.  In 2009, the Commission designated Virgin Mobile as a limited ETC, 
eligible to receive only universal service Lifeline support in its licensed service areas in New York, 
Virginia, North Carolina, and Tennessee.18 The Commission conditioned Virgin Mobile’s limited ETC 
designation for Lifeline support on Virgin Mobile’s certification that it comply with any applicable 911 
and enhanced 911 (E911) obligations, including obligations relating to the provision and support of 911 
and E911 services.19
9. Because Virgin Mobile was a non-facilities-based CMRS provider, the Commission also 
conditionally granted Virgin Mobile’s request for forbearance from the statutory requirement that an ETC 
serve its customers using its own facilities.20 Among other things, the Commission conditionally granted 
Virgin Mobile’s forbearance request on its agreement to obtain a certification from each Public Safety 
Answering Point (PSAP) where Virgin Mobile provides Lifeline service confirming that Virgin Mobile 
provides its customers with 911 and E911 access or, under certain conditions, self-certifying that it 
provides such access.21 The Commission also required Virgin Mobile to file a compliance plan, outlining 
the measures that it would take to implement each condition.22 The Bureau approved Virgin Mobile’s 
compliance plan on October 29, 2009.23
10. Virgin Mobile filed the instant petitions seeking designation as an ETC, eligible to 
receive universal service Lifeline support for its entire service area in Alabama, Connecticut, Delaware, 
  
16 See 47 C.F.R. § 54.401(a); see also FCC, Lifeline Across America, 
http://www.lifeline.gov/lifeline_Consumers.html (last visited Dec. 15, 2010).
17 See 47 C.F.R. § 54.405(a)(4).
18 See Virgin Mobile USA, L.P. Petition for Forbearance from 47 U.S.C. § 214(e)(1)(A); Petitions for Designation 
as an Eligible Telecommunications Carrier in the States of New York, North Carolina, Pennsylvania, Tennessee and 
Virginia, CC Docket No. 96-45, Order, 24 FCC Rcd 3381 (2009) (Virgin Mobile Forbearance/ETC Order).
19 Id. at 3395, para. 39.
20 Id. at 3386, para. 12.
21 Id. at 3390–91, para. 22.  The Commission also required Virgin Mobile to:  (1) provide its Lifeline customers with
911 and E911 access regardless of activation status and availability of prepaid minutes; (2) provide its Lifeline 
customers with E911-compliant handsets and replace, at no additional charge to the customer, non-compliant 
handsets of existing customers who obtain Lifeline-supported service; (3) comply with conditions (1) and (2) as of 
the date it provides Lifeline service; (4) require its customers to self-certify at time of service activation and 
annually thereafter that they are the head of household and receive Lifeline-supported service only from Virgin 
Mobile; (5) establish safeguards to prevent its customers from receiving multiple Virgin Mobile Lifeline subsidies at 
the same address; and (6) deal directly with customers to certify and verify the customer’s Lifeline eligibility.  See
id. at 3386–87, 3390–93, paras. 12, 21–28.
22 Id. at 3387, 3397, paras. 12, 23.
23 See Federal-State Joint Board on Universal Service; Virgin Mobile USA, L.P. Petition for Forbearance from 47 
U.S.C. § 214(e)(1)(A); Petition for Designation as an Eligible Telecommunications Carrier in the States of New 
York, North Carolina, Pennsylvania, Tennessee and Virginia, CC Docket No. 96-45, Order, 24 FCC Rcd 13413 
(2009) (Virgin Mobile Compliance Plan Order).
Federal Communications Commission DA 10-2433
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New Hampshire, and the District of Columbia.24 Virgin Mobile states that it will offer Lifeline customers 
prepaid Lifeline services free of charge.25 In its petitions, Virgin Mobile maintains that it satisfies all the 
statutory and regulatory requirements for designation as a limited ETC in these areas.  On November 24, 
2009, Virgin Mobile became a wholly owned subsidiary of Sprint Nextel Corporation (Sprint Nextel), a 
facilities-based wireless provider.26 Virgin Mobile asserts that, with this acquisition, it is no longer a 
reseller of telecommunications services and therefore does not need forbearance from the facilities 
requirement.  Virgin Mobile also asserts that as a facilities-based provider, it should not be required to 
obtain certification from each PSAP where it provides Lifeline service.27
11. On December 14, 2010, Virgin Mobile filed a letter in which it voluntarily commits to 
implement procedures to combat the potential for waste, fraud, and abuse with respect to its provision of 
Lifeline services throughout the United States.  Specifically, Virgin Mobile commits to implementing a 
non-usage policy (i.e., a policy for discontinuance of service in the event of non-usage), to work with 
state commissions to combat duplicative support for households that receive Lifeline service from more 
than one ETC, and to work with the Commission to develop industry-wide procedures that effectively 
curtail waste, fraud, and abuse.28 Virgin Mobile requests that the Commission incorporate these 
procedures into the compliance plan previously approved by the Bureau and agrees to be bound by its 
commitments in all states where it provides Lifeline services.29
III. DISCUSSION
A. Commission Authority to Perform the ETC Designation
12. Virgin Mobile provided an “affirmative statement” from the Public Service Commission 
of the District of Columbia (DC Commission) and each of the relevant state commissions providing that 
each commission lacks jurisdiction to perform the requested ETC designation and that the Commission 
  
24 See Virgin Mobile Alabama Petition; Virgin Mobile Connecticut Petition; Virgin Mobile Delaware Petition; 
Virgin Mobile DC Petition; Virgin Mobile New Hampshire Petition.  The Bureau released public notices seeking 
comment on each of Virgin Mobile ETC Petitions.  Comment Sought on Petition of Virgin Mobile for Limited 
Designation as an Eligible Telecommunications Carrier in Alabama, WC Docket No. 09-197, Public Notice, 25 
FCC Rcd 965 (Wireline Comp. Bur. 2010); Comment Sought on Petition of Virgin Mobile for Limited Designation 
as an Eligible Telecommunications Carrier in Connecticut, Delaware, New Hampshire, and the District of 
Columbia, WC Docket No. 09-197, Public Notice, 25 FCC Rcd 1981 (Wireline Comp. Bur. 2010).  A list of 
commenters is provided in Appendix A of this order.
25 Virgin Mobile states that through its branded prepaid Lifeline service, “Assurance Wireless Brought to You by 
Virgin Mobile,” it will offer free voice services and a variety of other standard features such as voicemail and call 
waiting services.  Virgin Mobile indicates that new customers may elect to receive a free Assurance Wireless-
branded handset with E911 functionality.  See Virgin Mobile Alabama Petition at 8; Virgin Mobile Connecticut 
Petition at 8; Virgin Mobile Delaware Petition at 7–8; Virgin Mobile DC Petition at 7–8; Virgin Mobile New 
Hampshire Petition at 8; see also Virgin Mobile Compliance Plan Order, 24 FCC Rcd at 13418, para. 11 & n.33 
(reminding Virgin Mobile that all Lifeline customers must have E911-compliant handsets if Virgin Mobile is to be 
eligible to receive support).
26 Virgin Mobile Alabama Petition at 2 n.2; Virgin Mobile Connecticut Petition at 2 n.2; Virgin Mobile Delaware 
Petition at 2 n.2; Virgin Mobile DC Petition at 2 n.2; Virgin Mobile New Hampshire Petition at 2 n.2.
27 Virgin Mobile Alabama Petition at 9; Virgin Mobile Connecticut Petition at 9; Virgin Mobile Delaware Petition at 
8–9; Virgin Mobile DC Petition at 8–9; Virgin Mobile New Hampshire Petition at 9.
28 Virgin Mobile December 14 Ex Parte Letter at 2–3.
29 Id. at 1–2.
Federal Communications Commission DA 10-2433
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has authority to consider Virgin Mobile’s petition under section 214(e)(6) of the Act.30 Virgin Mobile 
therefore has demonstrated that it is not subject to the jurisdiction of the Alabama Public Service 
Commission (Alabama Commission), Connecticut Department of Public Utility Control (Connecticut 
Commission), Delaware Public Service Commission (Delaware Commission), New Hampshire Public 
Utilities Commission (New Hampshire Commission), or the DC Commission.  Accordingly, we find that 
the commissions lack jurisdiction to designate Virgin Mobile as an ETC and this Commission has 
authority to perform the requested ETC designations.31
B. Analysis of Eligibility Requirements
13. Offering the Services Designated for Support.  Virgin Mobile has demonstrated through 
its filing and certifications that it now offers or will offer upon designation as a limited ETC, the services 
supported by the Lifeline program.32 Virgin Mobile states that it now provides the services and 
functionalities enumerated in section 54.101(a) of the Commission’s rules throughout its licensed service 
areas.33
14. With respect to providing access to emergency services, Virgin Mobile states that it 
provides nationwide access to 911 emergency services for all of its customers.34 Virgin Mobile also states 
that it complies with the Commission’s regulations governing the deployment and availability of E911 
compatible handsets.35 Given the nature of Virgin Mobile’s service offering, as well as the possibility 
that Virgin Mobile’s Lifeline supported service will be the customer’s only means of accessing 
emergency personnel, we require Virgin Mobile (1) to provide its Lifeline customers with 911 and E911 
access regardless of activation status and availability of prepaid minutes and (2) to provide E911-
compliant handsets to all of its Lifeline customers, and to replace, at no charge to the customer, any non-
compliant handset of an existing customer that obtains Lifeline-supported services with an E911-
compliant handset, consistent with prior determinations by the Commission.36 We find that continuing to 
require Virgin Mobile to comply with these additional requirements promotes public safety among 
Lifeline customers.
  
30 Virgin Mobile Alabama Petition at 5–6, Exh. 1; Virgin Mobile Connecticut Petition at 5–6, Exh. 1; Virgin Mobile 
Delaware Petition at 5–6, Exh. 1; Virgin Mobile DC Petition at 5–6, Exh. 1; Virgin Mobile New Hampshire Petition 
at 5–6, Exh.1.
31 47 U.S.C. § 214(e)(6).
32 See Virgin Mobile Alabama Petition at 12–14; Virgin Mobile Connecticut Petition at 10–13; Virgin Mobile 
Delaware Petition at 10–12; Virgin Mobile DC Petition at 10–12; Virgin Mobile New Hampshire Petition at 10–13.
33 Specifically, Virgin Mobile certifies that it provides voice grade access to the public switched telephone network, 
local usage, dual-tone multi-frequency (DTMF) signaling, access to 911 emergency services, the functional 
equivalent of single-party service, access to operator services, access to interexchange services, and access to 
directory assistance for qualifying low-income customers.  See Virgin Mobile Alabama Petition at 11; Virgin 
Mobile Connecticut Petition at 10; Virgin Mobile Delaware Petition at 10; Virgin Mobile DC Petition at 10; Virgin 
Mobile New Hampshire Petition at 10.  The Commission previously found that the prepaid nature of Virgin 
Mobile’s Lifeline offering essentially functions as a toll control feature, which is required under the Act and the 
Commission’s rules.  See Virgin Mobile Forbearance/ETC Order, 24 FCC Rcd at 3394, para. 34.  Virgin Mobile 
also states that it commits to complying with (1) any minimum local usage requires adopted by the Commission; and 
(2) the Commission’s regulations governing the deployment and availability of E911 compatible handsets.  See 
Virgin Mobile Alabama Petition at 10–13; Virgin Mobile Connecticut Petition at 10–13; Virgin Mobile Delaware 
Petition at 10–12; Virgin Mobile DC Petition at 10–12; Virgin Mobile New Hampshire Petition at 10–13.
34 Virgin Mobile Alabama Petition at 12; Virgin Mobile Connecticut Petition at 12; Virgin Mobile Delaware Petition 
at 11; Virgin Mobile DC Petition at 11; Virgin Mobile New Hampshire Petition at 12.
35 Id.
36 See Virgin Mobile Forbearance/ETC Order, 24 FCC Rcd at 3391, para. 23.
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15. Offering the Supported Services Using a Carrier’s Own Facilities.  We also find that 
Virgin Mobile, a wholly owned affiliate of Sprint Nextel, “owns” Sprint Nextel’s facilities for purposes of 
the facilities requirement in section 214(e) of the Act.  Prior to Sprint Nextel’s acquisition of Virgin 
Mobile, Sprint Nextel provided the nationwide wireless backbone, including all network infrastructure 
and wireless transmission facilities for Virgin Mobile’s service.37 Virgin Mobile purchased wireless 
network services on a wholesale basis from Sprint Nextel.  With Sprint Nextel’s acquisition of Virgin 
Mobile, the wholesaler-reseller relationship changed such that Virgin Mobile now enjoys “beneficial use 
of Sprint’s wireless facilities” without arm’s length transactions or purchase of service from Sprint.38  
Based on these facts, we find that Virgin Mobile has its “own facilities” for the purposes of the section 
214(e)(1) facilities requirement.  Accordingly, we find that Virgin Mobile no longer needs forbearance 
and need not comply with the obligations imposed as conditions of forbearance from the Act’s facilities 
requirement, except as otherwise specified herein, before receiving universal service support.  Instead, as 
with other facilities-based carriers, Virgin Mobile must offer the supported services using its own 
facilities or a combination of its own facilities and the resale of another carrier’s services.39
16. We disagree with comments suggesting that Virgin Mobile cannot treat its parent’s 
facilities as its own because the two are distinct legal entities or because Virgin Mobile has a distinct 
brand and customer base from Sprint.40 The Commission has previously rejected a formalistic definition 
of what constitutes a carrier’s “own facilities” under section 214(e) in favor of a more flexible approach 
that meets the goals of universal service.41 We also disagree with the suggestions of some that the 
definitions of “facilities-based carrier” or “reseller” found elsewhere in federal law must apply here.42 As 
the Commission noted in the Universal Service First Report and Order, the section 214(e) facilities 
requirement must be construed in light of the goals of the Act.43 Thus, while we may look to the 
definitions used in other contexts, those definitions do not bind or constrict our interpretation.
17. Advertising Supported Services.  Virgin Mobile has committed to advertise the 
availability of the supported services using media of general distribution.44 In addition, Virgin Mobile has
  
37 See Virgin Mobile USA L.P. Petition for Forbearance, CC Docket No. 96-45 (filed Dec. 5, 2007).
38 Letter from Antoinette Cook Bush, Counsel, Virgin Mobile USA, L.P., to Marlene H. Dortch, Secretary, FCC, at 
2 & 3 n.7 (June 9, 2009) (Virgin Mobile June 9 Ex Parte Letter).  The Commission previously concluded that 
entities “enjoying the beneficial use of property” may consider that property their “own.”  See Universal Service 
First Report and Order, 12 FCC Rcd at 8865, para. 158.
39 Our decision here does not modify the previously established conditions for Virgin Mobile’s limited ETC 
designation in New York, North Carolina, Tennessee, and Virginia.  Virgin Mobile is obligated to comply with all 
the conditions in the Virgin Mobile Forbearance/ETC Order in those states.  See Virgin Mobile Reply at 7 n.9 
(acknowledging continuing conditions).  We also emphasize that our decision here does not limit the Commission’s 
ability in the future to condition ETC designation of a prepaid wireless service provider on compliance with 
obligations designed to protect the public interest.
40 See AUA Comments at 4–5.
41 See Universal Service First Report and Order, 12 FCC Rcd at 8865–66, paras. 158–61.
42 See Supplemental information submitted by Sheila Stickel, President and Executive Director, Advocates for 
Universal Access, LLC, at 2 n.3 (filed Apr. 30, 2010) (citing a definition of “facilities-based carrier” found in 18 
U.S.C. § 1829); Virgin Mobile June 9 Ex Parte Letter at 3 (citing a definition of “reseller” found in a Commission 
report).
43 See Universal Service First Report and Order, 12 FCC Rcd at 8866, para. 161.
44 Virgin Mobile Alabama Petition at 5–6, Exh. 1; Virgin Mobile Connecticut Petition 14; Virgin Mobile New 
Hampshire Petition at 14; Virgin Mobile Delaware Petition at 14; Virgin Mobile DC Petition at 14.
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committed to advertising and promoting the availability of Lifeline services in a manner reasonably 
designed to reach those likely to qualify for Lifeline.45
18. Additional Eligibility Requirements.  Virgin Mobile also satisfies the eligibility 
requirements set forth in the ETC Designation Order, described above, or must make such showings in its 
first annual reports under section 54.209 of the Commission’s rules.46
C. Public Interest Analysis
19. We find that Virgin Mobile’s universal service offering will provide a variety of benefits 
to Lifeline-eligible consumers including increased consumer choice, high-quality service offerings, and 
mobility.  In addition, Virgin Mobile’s prepaid feature may be attractive to Lifeline-eligible consumers 
who might otherwise be reluctant to subscribe to telephone service because of concerns about usage 
charges and long-term contracts.  We note that we do not need to perform a creamskimming analysis 
because Virgin Mobile is eligible for Lifeline support only.47
20. Consistent with previous findings of the Commission and the goals of promoting the 
public interest and safeguarding the Lifeline fund, we condition Virgin Mobile’s limited ETC designation 
in Alabama, Connecticut, Delaware, New Hampshire, and the District of Columbia on Virgin Mobile:  
(a) requiring each customer to self-certify at time of service activation and annually thereafter that he or 
she is the head of household and receives Lifeline-supported service only from that carrier; 
(b) establishing safeguards to prevent its customers from receiving multiple Lifeline subsidies from that 
carrier at the same address; (c) dealing directly with the customer to certify and verify the customer’s 
Lifeline eligibility; (d) certifying that it is in full compliance with any applicable 91l/E911 obligations, 
including obligations relating to the provision, and support, of 911 and E911 service for each state in 
which we designate it as a limited ETC.48
21. The Commission has recognized that the potential for more than one Lifeline-supported 
service per eligible consumer is an industry-wide problem.49 To help alleviate this concern as it relates to 
Virgin Mobile customers, Virgin Mobile must require its Lifeline customers to self-certify under penalty 
of perjury upon service activation, and then annually thereafter, that they are the head of household and 
only receive Lifeline-supported services from Virgin Mobile.  Virgin Mobile must ensure that the penalty 
for perjury is clearly stated on the certification form.  Virgin Mobile must also track its Lifeline 
customer’s primary residential address and prohibit more than one supported Virgin Mobile service at 
each residential address.  Additionally, Virgin Mobile must maintain the self-certification and provide the 
documentation to the Commission upon request.
22. In order to ensure that Virgin Mobile complies with the conditions and requirements 
herein, Virgin Mobile must distribute its Lifeline service directly to its Lifeline customers.  Customers 
may purchase handsets at Virgin Mobile’s retail stores, but Virgin Mobile must deal directly with the 
  
45 Id.
46 See supra para. 5; ETC Designation Order, 23 FCC Rcd at 6380, para. 20; 47 C.F.R. §§ 54.202(a), 54.209; see 
Virgin Mobile ETC Petitions.
47 Federal-State Joint Board on Universal Service; TracFone Wireless, Inc. Petition for Designation as an Eligible 
Telecommunications Carrier in the State of New York et al., CC Docket No. 96-45, Order, 23 FCC Rcd 6206, 6213 
n.47 (2008) (TracFone ETC Designation Order).
48 See Virgin Mobile Forbearance/ETC Order, 24 FCC Rcd at 3392, 3395, paras. 25–26, 39.
49 See id. at 3392, para. 25; TracFone Forbearance Order, 20 FCC Rcd at 15103, para. 18; see also infra para. 24.
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customer to certify and verify the customer’s Lifeline eligibility.  When establishing initial and continued 
eligibility, Virgin Mobile must have direct contact with the Lifeline customer.50
23. We also find that requiring Virgin Mobile to comply with state-level 911 and E911 
requirements as a condition to its limited ETC designation serves the public interest.51 We therefore 
condition Virgin Mobile’s designations as an ETC eligible for Lifeline support in each state on its
certification that it is in full compliance with any applicable 911 and E911 obligations, including 
obligations relating to the provision and support of 911 and E911 services.
24. As previously noted, Virgin Mobile has voluntarily committed to implementing certain 
procedures to guard against waste, fraud, and abuse of its Lifeline service.  In support of efforts to combat 
duplicative support in the Lifeline program, Virgin Mobile has voluntarily committed to providing state 
commissions with data that will enable the states to track whether some consumers are enrolled in more 
than one Lifeline program.  Specifically, Virgin Mobile agrees (a) to “make available state-specific 
customer data, including name and address, to each state PUC where it operates for the purpose of 
permitting the PUC to determine whether an existing Assurance Wireless Lifeline customer receives 
Lifeline service from another carrier,” (b) to “promptly investigate any notification that it receives from a 
state PUC that one of its customers already receives Lifeline service from another carrier,” and (c) to 
“immediately deactivate the customer’s Lifeline service and Virgin Mobile will no longer report that 
customer on USAC Form 497” if Virgin Mobile’s “investigation conclude[s] that the customer receives 
Lifeline services from another carrier in violation of the Commission’s regulations.”52 To guard against 
waste in the Lifeline program, Virgin Mobile also voluntarily commits to implementing a non-usage 
policy in all states where it provides Lifeline service.  Virgin Mobile’s non-usage policy would require 
Virgin Mobile to identify customers that have not used its Lifeline service for 60 days and not seek 
support for such customers if they do not actively use the Lifeline service during a 30-day grace period.53  
Virgin Mobile promises to comply with these commitments within 30 days of the effective date of this 
order.54
25. We find it appropriate and in the public interest to accept Virgin Mobile’s voluntary 
commitments, as described above, and condition Virgin Mobile designation as a limited ETC in Alabama, 
Connecticut, Delaware, New Hampshire, and the District of Columbia, as well as its continued ETC 
  
50 Direct contact may include telephone, fax, Internet, in-person consultation or otherwise, but may not include 
“point of sale procedures” that allow the Lifeline customers to submit qualifying information to the retail vendor.  
See Virgin Mobile Forbearance/ETC Order, 24 FCC Rcd at 3392, para. 26; TracFone Forbearance Order, 20 FCC 
Rcd at 15104, para. 19.
51 See Virgin Mobile Forbearance/ETC Order, 24 FCC Rcd at 3395, para. 39; TracFone ETC Designation Order, 23 
FCC Rcd at 15104, para. 16.
52 Virgin Mobile December 14 Ex Parte Letter at 2.
53 See id. (“Virgin Mobile will implement a 60-day inactivity policy in all states where it provides Lifeline services, 
unless directed otherwise by a state public utility commission (‘PUC’).  Under this policy, if no usage appears on a 
Virgin Mobile Lifeline customer’s account during any continuous 60-day period, Virgin Mobile will promptly notify 
the customer that the customer is no longer eligible for Virgin Mobile Lifeline service subject to a 30-day grace 
period. During the 30-day grace period, the customer’s account will remain active, but Virgin Mobile will engage in 
outreach efforts to determine whether the customer desires to remain on Virgin Mobile’s Lifeline service.  If the 
customer’s account does not show any customer-specific activity during the grace period (such as making or 
receiving a voice call, receiving or sending a text message, downloading data or adding money to the account), 
Virgin Mobile will deactivate Lifeline services for that customer.  In addition, the Company will not seek to recover 
a federal Universal Service Fund subsidy for the free minutes provided to the customer during the grace period or 
thereafter report that customer on its USAC Form 497.”).
54 Id.
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designation in New York, North Carolina, Tennessee, and Virginia, on the company’s fulfillment of these 
commitments.
26. In sum, subject to the above stated conditions, we find that designating Virgin Mobile as 
an ETC eligible only to receive Lifeline support is in the public interest.
D. Designated Service Areas
27. Based on the foregoing, we designate Virgin Mobile as a limited ETC, eligible only for 
Lifeline support, in its licensed service area in Alabama, Connecticut, Delaware, the District of Columbia, 
and New Hampshire as provided in Appendices B and C of this order.
E. Regulatory Oversight
28. Under section 254(e) of the Act, Virgin Mobile is required to use the specific universal 
service support it receives “only for the provision, maintenance, and upgrading of facilities and services 
for which the support is intended.”55 An ETC receiving Lifeline support uses that support as intended 
when it reduces the price of its telecommunications services by the amount of the support for the eligible 
consumer.56 Lifeline assistance shall be made available to qualifying low-income consumers after the 
Universal Service Administrative Company (USAC) confirms that Virgin Mobile complies with the 
conditions imposed in this order.57
29. Virgin Mobile must meet and continue to meet each of the criteria required by the ETC 
Designation Order, and must submit information detailing how it has satisfied the criteria annually.  
These records and documentation must be filed with the Commission and USAC on October 1 of each 
year.58 Virgin Mobile has also committed to providing applicable consumer protection and service 
quality standards.59 In addition, Virgin Mobile must report certain information to the Commission and to 
USAC pursuant to section 54.209 of the Commission’s rules.60
30. We find that reliance on Virgin Mobile’s commitments to meet these requirements is 
reasonable and consistent with the public interest and the Act.  We conclude that these additional 
reporting requirements will further the Commission’s goal of ensuring that Virgin Mobile satisfies its 
obligation under section 214(e) of the Act to provide the services supported by the Lifeline program 
throughout its designated service area.61
  
55 47 U.S.C. § 254(e).  Because Virgin Mobile is not eligible to receive high-cost support, we do not require it to 
provide high-cost certifications under sections 54.313 and 54.314 of our rules.  See 47 C.F.R. §§ 54.313, 54.314.
56 See TracFone Forbearance Order, 20 FCC Rcd at 15105–06, para. 26.
57 See 47 C.F.R. §54.401(d).  As noted above, we find that Virgin Mobile’s service offering meets the criteria for 
service and functionality contained in our rules.  See supra paras. 13–14.
58 See ETC Designation Order, 20 FCC Rcd at 6401–02, paras. 68–69.
59 See Virgin Mobile Alabama Petition at 15–16; Virgin Mobile Connecticut Petition at 15–17; Virgin Mobile 
Delaware Petition at 15–17; Virgin Mobile DC Petition at 15–17; Virgin Mobile New Hampshire Petition at 16–17.
60 See 47 C.F.R. § 54.209(a) (specifying the information to be included in the annual reports submitted by ETCs); 
ETC Designation Order, 20 FCC Rcd at 6400–02, paras. 68–69; see also Virginia Cellular Order, 19 FCC Rcd at 
1584, para. 46 & n.140 (anticipating that annual submissions will encompass only the ETC’s designated service 
areas).  Because Virgin Mobile will only be eligible for Lifeline support, we do not require Virgin Mobile to report 
on network build-out and improvements or to certify that it acknowledges that the Commission may require it to 
provide equal access to long distance carriers in the event that no other eligible telecommunications carrier is 
providing equal access within the service area.  See 47 C.F.R. § 54.209(a)(1), (8).
61 47 U.S.C. § 214(e).
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31. As previously noted, Virgin Mobile has an approved compliance plan that currently 
governs Virgin Mobile provision of Lifeline service in other states.62 In providing Lifeline services 
pursuant to the conditional ETC designations granted herein, Virgin Mobile must comply with the 
measures described in its existing compliance plan, as they relate to the conditions imposed herein and 
modified to reflect the additional voluntary commitments described in this order.63
32. We note that the Commission may institute an inquiry on its own motion to examine 
Virgin Mobile’s records and documentation to ensure that the universal service support it receives is 
being used for the purpose for which it was intended.64  Virgin Mobile is required to provide such records 
and documentation to the Commission and USAC upon request.  We further emphasize that, if Virgin 
Mobile fails to fulfill the requirements of the Act, the Commission’s rules, or the terms of this order after 
it begins receiving universal service support, the Commission may exercise its authority to revoke Virgin 
Mobile’s ETC designation.65 The Commission also may assess forfeitures for violations of Commission 
rules and orders.66
IV. ANTI-DRUG ABUSE ACT CERTIFICATION
33. Pursuant to section 5301 of the Anti-Drug Abuse Act of 1988, no applicant is eligible for 
any new, modified, or renewed instrument of authorization from the Commission, including 
authorizations issued pursuant to section 214 of the Act, unless the applicant certifies that neither it, nor 
any party to its application, is subject to a denial of federal benefits, including Commission benefits.67  
Virgin Mobile has provided a certification consistent with the requirements of the Anti-Drug Abuse Act 
of 1988.68 We find that Virgin Mobile’s certification satisfies the requirements of the Anti-Drug Abuse 
Act of 1988, as codified in sections 1.2001–1.2003 of the Commission’s rules.
  
62 See supra para. 9; see also Virgin Mobile USA, L.P. Compliance Plan, CC Docket No. 96-45 (filed Apr. 3, 2009); 
Virgin Mobile Compliance Plan Order, 24 FCC Rcd at 13413, para. 1 (approving that plan).
63 We note that by accepting Virgin Mobile’s voluntary commitments to implement a non-usage requirement in all 
states and to work with states to combat duplicative Lifeline service, we incorporate into the existing compliance 
plan Virgin Mobile’s explanation of how it will comply with those commitments.  See Virgin Mobile December 14 
Ex Parte Letter at 1–2 (requesting the Commission to incorporate its description of how it will fulfill its voluntary 
commitments into its compliance plan as necessary).  As such, Virgin Mobile may continue to receive support in 
New York, North Carolina, Tennessee, and Virginia so long as it complies with these commitments in those states 
within 30 days of the release of this order.
64 47 U.S.C. §§ 220, 403.
65 See Federal-State Joint Board on Universal Service; Western Wireless Corp. Petition for Preemption of an Order 
of the South Dakota Public Utilities Commission, CC Docket No. 96-45, Declaratory Ruling, 15 FCC Rcd 15168, 
15174, para. 15 (2000); see also 47 U.S.C. § 254(e).
66 See 47 U.S.C. § 503(b).
67 21 U.S.C. § 862; 47 C.F.R. § 1.2002(a).  Section 1.2002(b) provides that a “party to the application” shall include:  
“(1) If the applicant is an individual, that individual; (2) If the applicant is a corporation or unincorporated 
association, all officers, directors, or persons holding 5% or more of the outstanding stock or shares (voting/and or 
non-voting) of the petitioner; and (3) If the 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 Section 214(e)(6) Public 
Notice, 12 FCC Rcd at 22949.
68 See Virgin Mobile Alabama Petition at 17, Exh. 2; Virgin Mobile Connecticut Petition at 18, Exh. 2; Virgin 
Mobile Delaware Petition at 17, Exh. 2; Virgin Mobile DC Petition at 18, Exh. 2; Virgin Mobile New Hampshire 
Petition at 18, Exh. 2.
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V. ORDERING CLAUSES
34. ACCORDINGLY, IT IS ORDERED that, pursuant to the authority contained in section 
214(e)(6) of the Communications Act of 1934, 47 U.S.C. § 214(e)(6), and pursuant to authority delegated 
in sections 0.91, 0.291, 1.3, and 54.722(a) of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.3, 
54.722(a), Virgin Mobile USA, L.P. IS DESIGNATED AN ELIGIBLE TELECOMMUNICATIONS 
CARRIER eligible only for Lifeline support for portions of its licensed service areas in Alabama, 
Connecticut, the District of Columbia, Delaware, and New Hampshire, to the extent described in this 
order and subject to the conditions set forth herein.
35. IT IS FURTHER ORDERED that, pursuant to the authority contained in section 
214(e)(6) of the Communications Act of 1934, 47 U.S.C. § 214(e)(6), and pursuant to authority delegated 
in sections 0.91, 0.291, 1.3, and 54.722(a) of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.3, 
54.722(a), Virgin Mobile USA, L.P.’s designation as an eligible telecommunications carrier eligible only 
for Lifeline support in New York, North Carolina, Tennessee, and Virginia IS CONDITIONED on its 
implementation of the voluntary commitments in those states as described herein.
36. IT IS FURTHER ORDERED that Virgin Mobile USA, L.P. SHALL SUBMIT additional 
information pursuant to section 54.209 of the Commission’s rules, 47 C.F.R. § 54.209, no later than 
October 1, 2011, as part of its annual reporting requirements.
37. IT IS FURTHER ORDERED that a copy of this order SHALL BE TRANSMITTED by 
the Wireline Competition Bureau to the Alabama Public Service Commission, Connecticut Department of 
Public Utility Control Delaware Public Service Commission, Public Service Commission of the District 
of Columbia, New Hampshire Public Utilities Commission, and the Universal Service Administrative 
Company.
38. IT IS FURTHER ORDERED that pursuant to section 1.102 of the Commission’s rules, 
47 C.F. R. § 1.102, this Order SHALL BE EFFECTIVE upon release.
FEDERAL COMMUNICATIONS COMMISSION
Sharon E. Gillett
Chief
Wireline Competition Bureau
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APPENDIX A
List of Commenters
Comment Sought on Petition of Virgin Mobile for Limited Designation as an Eligible 
Telecommunications Carrier in Alabama, WC Docket No. 09-197, Public Notice, 25 FCC Rcd 965 
(Wireline Comp. Bur. 2010)
Commenter Abbreviation
National Consumers League NCL/Grange
National Emergency Number Association NENA
TracFone Wireless, Inc. TracFone
Reply Commenter Abbreviation
Virgin Mobile USA, L.P. Virgin Mobile
Comment Sought on Petition of Virgin Mobile for Limited Designation as an Eligible 
Telecommunications Carrier in Connecticut, Delaware, New Hampshire, and the District of Columbia, 
WC Docket No. 09-197, Public Notice, 25 FCC Rcd 1981 (Wireline Comp. Bur. 2010)
Commenter Abbreviation
Advocates for Universal Access, LLC AUA
TracFone Wireless, Inc. TracFone
Reply Commenter Abbreviation
Virgin Mobile USA, L.P. Virgin Mobile
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APPENDIX B
Non-Rural Telephone Company Study Areas for Inclusion in Virgin Mobile’s ETC Service Area
Alabama
BellSouth Telecommunications, Inc.
CenturyTel of Alabama, LLC (d/b/a CenturyLink)
Connecticut
AT&T Connecticut
Verizon Connecticut
District of Columbia
Verizon Washington, D.C., Inc.
Delaware
Verizon Delaware Inc.
New Hampshire
FairPoint Communications, Inc.
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APPENDIX C
Rural Telephone Company Study Areas for Inclusion in Virgin Mobile’s ETC Service Area
Alabama
Alltel Alabama, Inc.
Ardmore Telephone Co.
Blountsville Telephone Co. (Otelco)
Brindlee Mountain Telephone Co. (Otelco)
Butler Telephone Co.
Castleberry Telephone Co.
Farmers Telephone Coop.
Frontier Communications of Lamar County, LLC
Frontier Communications of Alabama, LLC
Frontier Communications of the South, LLC
Graceba Total Communications, Inc.
GTC, Inc.
Gulf Telephone Co.
Hayneville Telephone Co.
Hopper Telecommunications Company, Inc. (Otelco)
Interstate Telephone Co.
Millry Telephone Co.
Mon-Cre Telephone Co.
National Telephone Co. of Alabama
New Hope Telephone Cooperative
Oakman Telephone Co.
Otelco Telephone, LLC
Peoples Telephone Co.
Pine Belt Telephone Co.
Ragland Telephone Co.
Roanoke Telephone Co.
Union Springs Telephone Co.
Valley Telephone Company, LLC
Connecticut
Woodbury Telephone Company
New Hampshire
Bretton Woods Telephone Co.
Dixville Telephone Co.
Dunbarton Telephone Co.
Granite State Telephone Inc.
Hollis Telephone Co. d/b/a TDS Telecom
Kearsarge Telephone Co. d/b/a TDS Telecom
Merrimack County Telephone Co d/b/a TDS Telecom
Northland Telephone Co. Union Telephone Co. Verizon
Wilton Telephone Co. d/b/a TDS Telecom