Federal Communications Commission DA 21-1467 DA 21-1467 Released: November 22, 2021 WIRELINE COMPETITION BUREAU APPROVES THE AMENDED COMPLIANCE PLAN OF TRACFONE WIRELESS, INC. WC Docket Nos. 11-42 and 09-197, CC Docket No. 96-45 The Wireline Competition Bureau (Bureau) hereby approves the amended compliance plan TracFone Wireless, Inc. Amended Compliance Plan, WC Docket Nos. 09-197, 11-42, 96-45 (filed Nov. 19, 2021) (TracFone Amended Compliance Plan), https://ecfsapi.fcc.gov/file/1119278922252/TracFone%20Wireless%20--%20Revised%20Amended%20Compliance%20Plan.pdf. of TracFone Wireless, Inc. (TracFone) filed pursuant to the requirements for the continued provision of Lifeline service. See Lifeline and Link Up Reform and Modernization et al., 27 FCC Rcd 6656, 6816, paras. 379-380 (2012) (2012 Lifeline Reform Order); In the Matter of Lifeline & Link Up Reform & Modernization, 30 FCC Rcd 7818 (2015) (2015 Lifeline Order). The Act provides that a carrier be designated as an eligible telecommunications carrier (ETC) to receive universal service support. 47 U.S.C. § 214(e)(1)(A). The Commission has required that all non-facilities based telecommunications carriers seeking Lifeline-only ETC designation must meet the following conditions: (1) compliance with certain 911 and enhanced 911 (E911) public safety requirements; and (2) Bureau approval of a compliance plan providing specific information regarding the carrier and its service offerings and outlining the measures the carrier will take to implement its obligations. See 2012 Lifeline Reform Order, 27 FCC Rcd at 6814, 6819, paras. 373 and 389. Subsequently, the Bureau provided guidance for carriers submitting compliance plans pursuant to the 2012 Lifeline Reform Order. See Wireline Competition Bureau Provides Guidance for the Submission of Compliance Plans Pursuant to the Lifeline Reform Order, Public Notice, 27 FCC Rcd 2186 (WCB 2012). The Bureau has clarified that any transfer of ownership or control of an ETC with an approved Lifeline compliance plan requires Commission approval in advance of the transaction. Wireline Competition Bureau Reminds Carriers of Eligible Telecommunications Carrier Designation and Compliance Plan Approval Requirements for Receipt of Federal Universal Service Support, Public Notice, 29 FCC Rcd 9144, 9145 (WCB 2014). This includes renewing compliance plan approval for changes in the corporate ownership and control of the ETC. Id. In accordance with this requirement, TracFone submitted an amended compliance plan to reflect the proposed acquisition of TracFone by Verizon Communications, Inc. (Verizon) from América Móvil, S.A.B. de C.V. (América Móvil), and to otherwise update TracFone’s Compliance Plan in conformance with changes to the Commission’s rules since approval of TracFone’s previously approved Compliance Plan. See TracFone Wireless, Inc.’s Compliance Plan, CC Docket No. 96-45 (filed Oct. 11, 2005); Erratum to TracFone Wireless, Inc.’s Compliance Plan, CC Docket No. 96-45 (filed Oct. 17, 2005). TracFone currently provides resold Lifeline service TracFone provides Lifeline-supported service primarily through its SafeLink Wireless brand, but also Walmart Family Mobile, Straight Talk Wireless, and Total Wireless. in 43 states, the District of Columbia, and Puerto Rico. The only states where TracFone does not offer a Lifeline-supported service are Alaska, Montana, Nebraska, North Dakota, Oregon, South Dakota, and Wyoming. TracFone is currently an indirect, wholly-owned subsidiary of América Móvil. As of September 13, 2020, Verizon and América Móvil have agreed that América Móvil will transfer all issued and outstanding shares of common stock of TracFone to Verizon in exchange for cash and other valuable consideration. TracFone Amended Compliance Plan at 5. Following consummation of the transaction, TracFone will be a wholly-owned subsidiary of Verizon, and TracFone’s subsidiaries will become wholly-owned indirect subsidiaries of Verizon. Id. As set forth in the application for transfer of TracFone’s international section 214 authorization, Verizon intends to maintain TracFone’s ETC status and will continue to offer Lifeline service through TracFone. See Letter from Alejandro Cantú Jiménez, General Counsel, América Móvil, et al. to Marlene H. Dortch, Secretary, FCC, IB File No. ITC-T/C-20200930-00173, at 3-4 (Feb. 11, 2021). The Bureau has reviewed TracFone’s Amended Compliance Plan for conformance with the relevant requirements, and now approves the Amended Compliance Plan. We note that with respect to this matter, TracFone will remain the only entity with an approved compliance plan. Additionally, TracFone must continue to comply with any future additions to or amendments of the Lifeline program rules unless it has relinquished its relevant designation(s) pursuant to section 214(e)(4) of the Act. See 47 U.S.C. § 214(e)(4). People with Disabilities: To request materials in accessible formats for people with disabilities (Braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at (202) 418-7400 or TTY (202) 418-0484. For further information, please contact John Lockwood, Telecommunications Access Policy Division, Wireline Competition Bureau at john.lockwood@fcc.gov. - FCC - 2