Federal Communications Commission DA 11-1763
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Federal-State Joint Board on Universal Service; )
)
Telecommunications Carriers Eligible for )
Universal Service Support )
)
i-wireless, LLC Petition for Forbearance from 47 )
U.S.C. § 214(e)(l)(A); )
CC Docket No. 96-45
WC Docket No. 09-197
ORDER
Adopted: October 21, 2011 Released: October 21, 2011
By the Chief, Wireline Competition Bureau:
1. Tn this order, we approve a Revised Compliance Plan submitted by i-wireless, LLC (i-
wireless) for complying with conditions imposed in the i-wireless Forbearance Order.' In the i-wireless
Forbearance Order, the Commission conditionally granted, for the limited purpose of Lifeline universal
service support, i-wireless's request for forbearance from section 21 4(e)( 1 )(A) of the Communications
Act of 1934, as amended (the Act), which requires that an eligible telecommunications carrier (ETC)
provide universal service supported services, at least in part, over its own facilities.2 In order to receive
federal universal service support for Lifeline as a non-facilities based provider, i-wireless must comply
with the conditions set forth in the i-wireless Forbearance Order.3 In approving the i-wireless Revised
Compliance Plan, we fmd that it adequately implements the conditions of forbearance established in the i -
wireless Forbearance Order. Accordingly, i-wireless is eligible to seek designation as a non-facilities
based ETC for Lifeline-only support provided it fulfills the commitments in its Revised Compliance Plan
in each state where it is designated to provide Lifeline service, and otherwise is in compliance with the
Act and Commission rules.
2. i-wireless is a non-facilities-based commercial mobile radio services provider (i.e., a pure
wireless reseller) that provides prepaid wireless telecommunications services.4 On April 1, 2009, i -
wireless filed a petition seeking forbearance from the facilities requirement of section 21 4(e)( 1 )(A) of the
Act.5 In the i-wireless Forbearance Order, the Commission found that i-wireless met the statutory
'i-wireless, LLC Petition for Forbearance from 47 U.S.C. § 214(e)(l)(A), CC Docket No. 96-45, wc Docket No.
09-197, Compliance Plan (filed September 9, 2011) (Revised Compliance Plan); i-wireless, LLC Petition for
Forbearance from 47 USC. §214(e)(1)(A), CC Docket No. 96-45, WC Docket No. 09-197, Order, 25 FCC Rcd
8784 (2010) (i-wireless Forbearance Order).
2 i-wireless Forbearance Order, 24 FCC Rcd at 3381, para. 1; see 47 U.S.C. § 214(e)(1)(A). The Commission
interpreted the forbearance petition to include forbearance from section 54.20 l(d)(1), (i) of the Commission's rules,
which mirrors section 2 14(e)(1)(A) of the Act and requires that ETCs be facilities-based, at least in part. See i -
wireless Forbearance Order, 25 FCC Rcd at 8786 n.12.
The Commission denied i-wireless's forbearance request for the Link Up support. i-wireless Forbearance Order,
25 FCC Rcd at 879 1-92, para. 21.
' i-wireless Forbearance Order, 25 FCC Rcd at 8786, para. 5.
i-wireless Petition for Forbearance from 47 U.S.C. § 2 14(e)(1)(A), CC Docket No. 96-45 (filed Apr. 1, 2009) (i-
wireless Forbearance Petition).
Federal Communications Commission DA 11-1763
requirements for forbearance, subject to certain conditions, and forbore from application of the facilities
requirement of section 214 (e)( 1 )(A) for the limited purpose of allowing i-wireless to seek designation as
a Lifeline-only ETC eligible for support from the universal service fund for the provision of Lifeline
service to eligible subscribers.6 On July 27, 2010, i-wireless filed a plan outlining measures that it will
undertake to implement the conditions imposed in the i-wireless Forbearance Order.7 The Bureau
released a public notice concerning i-wireless's compliance plan on August 20, 2010.8 No parties filed
comments or objections to i-wireless's compliance plan. On September 9, 2011, i-wireless submitted a
Revised Compliance Plan that includes additional certification procedures and measures to prevent waste,
fraud and abuse, including measures to prevent duplicate Lifeline benefits being awarded to the same
household.9
3. In the i-wireless Forbearance Order, the Commission conditioned forbearance on i -
wireless implementing certain protections designed to prevent waste, fraud and abuse in the program.'° i -
wireless commits in its Revised Compliance Plan to implement the following measures:"
(a) providing its Lifeline subscribers with 911 and enhanced 911 (E91 1) access regardless of
activation status and availability of prepaid minutes;
(b) providing its Lifeline subscribers with E9 11-compliant handsets and replacing, at no
additional charge to the subscriber, non-compliant handsets of existing subscribers who obtain
Lifeline-supported service;
(c) complying with conditions (a) and (b) as of the date i-wireless provides Lifeline service'2;
(d) obtaining a certification from each Public Safety Answering Point (PSAP) where i-wireless
provides Lifeline service, confirming that i-wireless provides its subscribers with 911 and E9 11
access or if, within 90 days of i-wireless's request for certification, a PSAP has not provided the
certification and the PSAP has not made an affirmative finding that i-wireless does not provide its
subscribers with access to 911 and E91 1 service within the PSAP's service area, i-wireless may
self-certify that it meets the basic 911 and E9 11 requirements;
(e) requiring its subscribers to self-certify under penalty of perjury at time of service activation
and annually thereafter that they are the head of household, that they receive Lifeline service only
from i-wireless, and that no other member of the household receives Lifeline-supported service
from any other Lifeline provider;
6 i-wireless forbearance order. See also Petition of TracFone Wireless, Inc. for Forbearance from 47 US. C.
§ 214(e) (1) (A) and 47 C.F.R. § 54.201(i), CC Docket No. 96-45, Order, 20 FCC Rcd 15095 (2005); Virgin Mobile
USA, L.P. Petition for Forbearance from 47 US.C. § 214(e) (1) (A); Petition for Designation as an Eligible
Telecommunications Carrier in the State of New York; Pet ition for Designation as an Eligible Telecommunications
Carrier in the Commonwealth of Virginia; Petition for Limited Designation as an Eligible Telecommunications
Carrier in the State of North Carolina; Petition for Limited Designation as an Eligible Telecommunications Carrier
in the State of Tennessee, CC Docket No. 96-45, Order, 24 FCC Rcd 3381(2009).
i-wireless, LLC Petition for Forbearance from 47 U.S.C. § 214(e)(1)(A), CC Docket No. 96-45, WC Docket No.
09-197, Compliance Plan (filed July 27, 2010). i-wireless updated its plan to reflect ongoing reforms in the Lifeline
program targeted at preventing waste, fraud and abuse of funds. See supra note 1.
8 Comment Sought on i-wireless, LLC 's Plan to Comply with the Conditions of its Limited Forbearance, CC Docket
No. 96-45, Public Notice, 25 FCC Rcd 11056 (Wireline Comp. Bur. 2010).
See i-wireless Revised Compliance Plan at 5-12.
'° i-wireless Forbearance Order, 25 FCC Rcd at 8790-91.
"See i-wireless Forbearance Order, 25 FCC Red at 8788, 8790; i-wireless Revised Compliance Plan.
12 i-wireless must provide its Lifeline subscribers with both 911 and E-9 11 access in any service area that i-wireless
is designated as a non-facilities based Lifeline ETC. i-wireless Forbearance Order, 25 FCC Rcd at 8788, para. 11.
2
Federal Communications Commission DA 11-1763
(f) establishing safeguards to prevent i-wireless's subscribers from receiving multiple i-wireless
Lifeline subsidies at the same address13; and
(g) dealing directly with the consumer to certify and verify the consumer's Lifeline eligibility.
4. i-wireless further agrees in its Revised Compliance Plan to cooperate fully with state and
federal regulators to prevent waste, fraud and abuse of Lifeline funds.'4 Specifically, i-wireless commits
to:'5
(h) implementing a 60-day non-usage policy in all states where i-wireless provides Lifeline
services, under which i-wireless will identify its subscribers that have not used its Lifeline service
for 60 days and will not seek support for such subscribers if they do not actively use its Lifeline
service during a 30-day grace period following the initial 60-day non-usage period;
(i) explaining in prominent, plain, easily comprehensible language to all new and potential
subscribers that no consumer is permitted to receive more than one Lifeline subsidy;
(j) implementing measures and procedures to prevent duplicate Lifeline benefits being awarded to
the same household, including emphasizing the one-per-household limitation in call-center and
sales scripts, and in all marketing, advertising, and website content;
(k) requiring each eligible Lifeline consumer at the time of enrollment to initial on the
certification form that to the best of his or her knowledge that he or she is not receiving Lifeline-
supported service from any other Lifeline provider, and listing as examples the brand names of at
least the leading wireline and leading two wireless Lifeline providers in the area to ensure the
consumer understands what is meant by "Lifeline-supported service";
(1) providing state commissions, the FCC or Universal Service Administrative Company (USAC)
upon request with data that will enable that state, the FCC or USAC to determine whether
consumers are enrolled in more than one Lifeline program;
(m) promptly investigating any notification that i-wireless receives from a state PUC, the FCC or
USAC that one of its subscribers already receives Lifeline service from another carrier;
(n) immediately deactivating a subscriber's Lifeline service and no longer reporting that
subscriber on USAC Form 497 if an i-wireless' investigation, a state commission, the FCC or
USAC concludes that the subscriber receives Lifeline services from another carrier in violation of
the Commission's regulations and that i-wireless' Lifeline service to that subscriber should be
discontinued;
(o) requiring that all consumers present proof of eligibility in all states in which i-wireless
provides Lifeline service, regardless of whether proof of eligibility is required in that state; and
(p) offering at least one Lifeline plan that provides consumers with at least 250 minutes-of-use
per month for at least 36 months from the date of this order.
5. i-wireless maintains that its implementing procedures, as set forth in its Revised
Compliance Plan, fully satisfy the conditions established by the Commission.'6 After careful review of
the record, we find that i-wireless's Revised Compliance Plan adequately implements the conditions of
forbearance imposed by the i-wireless Forbearance Order. We therefore approve the Revised
Compliance Plan, and, subject to i-wireless fulfilling the commitments it makes therein, it may be eligible
to apply for designation as a non-facilities based ETC for Lifeline-only support. In taking this action, we
remind i-wireless that the Commission may institute an inquiry on its own motion to examine the
company's records and documentation to ensure that the universal service Lifeline support it receives is
" See 47 C.F.R. § 54.407(b)-(c). ETCs designated for the limited purpose of participating in the Lifeline program,
in contrast, may only receive Lifeline support.
' i-wireless Revised Compliance Plan at 11.
'51d. at 5-12.
'61d. at 13.
Federal Communications Commission DA 11-1763
being used for the purpose for which it was intended.'7 i-wireless will be required to provide such records
and documentation to the Commission and the USAC upon request. If i-wireless fails to fulfill its
obligations under the Act, the Commission's rules, or the i-wireless Forbearance Order after it begins
receiving Lifeline support, the Commission may revoke i-wireless's forbearance and/or limited ETC
designations, should they be granted, or assess forfeitures as permitted under the Act and the
Commission's rules.18
6. ACCORDiNGLY, IT IS ORDERED, pursuant to the authority contained in 2 14(e) of the
Communications Act, 47 U.S.C. § 214(e), and the authority delegated under sections 0.91 and 0.291 of
the Commission's rules, 47 C.F.R. § 0.91, 0.291, that the i-wireless, LLC Revised Compliance Plan
submitted as a condition of forbearance eligible only for Lifeline support in its licensed service areas IS
APPROVED as described herein.
7. IT IS FURTHER ORDERED that, pursuant to section 1.102(b)(1) of the Commission's
rules, 47 C.F.R. § 1.102(b)(1), this order SHALL BE effective upon release.
8. IT IS FURTHER ODERED that, a copy of this order SHALL BE transmitted to the
Universal Service Administrative Company.
FEDERAL COMMUNICATIONS COMMISSION
Sharon E. Gillett
Chief
Wireline Competition Bureau
1747 U.S.C. § 220, 403.
18 See 47 U.S.C. § 254(e), 503(b); Federal-State Joint Board on Universal Service; Western Wireless Corporation
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).
4