16 Tex. Admin. Code § 26.417 - Designation as Eligible Telecommunications Providers to Receive Texas Universal Service Funds (TUSF)
(a) Purpose. This
section provides the requirements for the commission to designate
telecommunications providers as eligible telecommunications providers (ETPs) to
receive funds from the Texas Universal Service Fund (TUSF) under §
26.403 of this title (relating to
the Texas High Cost Universal Service Plan (THCUSP)) and §
26.404 of this title (relating to
the Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service
Plan). Only telecommunications providers designated by the commission as ETPs
qualify to receive universal service support under these programs.
(b) Requirements for establishing ETP service
areas.
(1) THCUSP service area. A THCUSP
service area is based upon wire centers (WCs) or other geographic area as
determined appropriate by the commission. A telecommunications provider may be
designated an ETP for any or all WCs that are wholly or partially contained
within its certificated service area. An ETP must serve an entire WC, or other
geographic area as determined appropriate by the commission, unless its
certificated service area does not encompass the entire WC, or other geographic
area as determined appropriate by the commission.
(2) Small and Rural ILEC Universal Service
Plan service area. A Small and Rural ILEC Universal Service Plan service area
for an ETP serving in a small or rural ILEC's territory must include the entire
study area of such small or rural ILEC.
(c) Criteria for designation of ETPs.
(1) Telecommunications providers. A
telecommunications provider, as defined in the Public Utility Regulatory Act
(PURA) §51.002(10), is be eligible to receive TUSF support in accordance
with §
26.403 or §
26.404 of this title in each
service area for which it seeks ETP designation if it meets the following
requirements:
(A) the telecommunications
provider has been designated an eligible telecommunications carrier, in
accordance with §
26.418 of this title (relating to
the Designation of Common Carriers as Eligible Telecommunications Carriers to
Receive Federal Universal Service Funds), and provides the federally designated
services to customers in order to receive federal universal service
support;
(B) the telecommunications
provider defines its ETP service area in accordance with subsection (b) of this
section and assumes the obligation to offer any customer within an exchange in
its ETP service area for which the provider receives support under this
section, basic local telecommunications services, as defined in §
26.403 of this title, at a rate
not to exceed 150% of the ILEC's tariffed rate;
(C) the telecommunications provider offers
basic local telecommunications services using either its own facilities,
purchased unbundled network elements (UNEs), or a combination of its own
facilities, purchased UNEs, or resale of another carrier's services;
(D) the telecommunications provider renders
continuous and adequate service within an exchange in its ETP service area for
which the provider receives support under this section, in compliance with the
quality of service standards defined in §
26.52 of this title (relating to
Emergency Operations), §
26.53 of this title (relating to
Inspections and Tests), and §
26.54 of this title (relating to
Service Objectives and Performance Benchmarks);
(E) the telecommunications provider offers
services in compliance with §
26.412 of this title (relating to
Lifeline Service Program); and
(F)
the telecommunications provider advertises the availability of, and charges
for, supported services using media of general
distribution.
(2) ILECs.
If the telecommunications provider is an ILEC, as defined in PURA
§51.002(10), it must be eligible to receive TUSF support §
26.403 of this title in each
service area for which it seeks ETP designation if it meets the requirements of
paragraph (1) of this subsection and the following requirements:
(A) If the ILEC is regulated under Public
Utility Regulatory Act (PURA) Chapter 58 or 59 it must either:
(i) reduce rates for services determined
appropriate by the commission to an amount equal to its THCUSP support amount;
or
(ii) provide a statement that it
agrees to a reduction of its THCUSP support amount equal to its CCL, RIC and
intraLATA toll revenues.
(B) If the ILEC is not regulated under PURA
Chapter 58 or 59 it must reduce its rates for services determined appropriate
by the commission by an amount equal to its THCUSP support amount.
(C) Any reductions in switched access service
rates for ILECs with more than 125,000 access lines in service in this state on
December 31, 1998, that are made in accordance with this section must be
proportional, based on equivalent minutes of use, to reductions in intraLATA
toll rates, and those reductions must be offset by equal disbursements from the
universal service fund under PURA §56.021(1). This subparagraph expires
August 31, 2007.
(d) Designation of more than one ETP.
(1) In areas not served by small or rural
ILECs, as defined in §
26.404(b) of
this title, the commission may designate, upon application, more than one ETP
in an ETP service area so long as each additional provider meets the
requirements of subsection (c) of this section.
(2) In areas served by small or rural ILECs
as defined in §
26.404(b) of
this title, the commission may designate additional ETPs if the commission
finds that the designation is in the public interest.
(e) Proceedings to designate
telecommunications providers as ETPs.
(1) At
any time, a telecommunications provider may seek commission approval to be
designated an ETP for a requested service area.
(2) To receive support under §
26.403 or §
26.404 of this title for exchanges
purchased from an unaffiliated provider, the acquiring ETP must file an
application, within 30 days after the date of the purchase, to amend its ETP
service area to include those geographic areas in the purchased exchanges that
are eligible for support.
(3) If an
ETP receiving support under §
26.403 or §
26.404 of this title sells an
exchange to an unaffiliated provider, it must file an application, within 30
days after the date of the sale, to amend its ETP designation to exclude those
exchanges for which it was receiving support, from its designated service
area.
(f) Requirements
for application for ETP designation and commission processing of application.
(1) Requirements for notice and contents of
application for ETP designation.
(A) Notice
of application. Notice must be published in the Texas
Register. The presiding officer may require additional notice. Unless
otherwise required by the presiding officer or by law, the notice must include
at a minimum a description of the service area for which the applicant seeks
designation, the proposed effective date of the designation, and the following
language: "Persons who wish to comment on this application should notify the
Public Utility Commission by (specified date, ten days before the proposed
effective date). Requests for further information should be mailed to the
Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326,
or you may call the PUCT Consumer Protection Division at (512) 936-7120 or
(888) 782-8477. Hearing- and speech-impaired individuals may contact the
commission through Relay Texas at (800) 735-2989."
(B) Contents of application. A
telecommunications provider seeking to be designated as an ETP for a high cost
service area in this state must file with the commission an application
complying with the requirements of this section. A copy of the application must
be delivered to the Office of Public Utility Counsel.
(i) Telecommunications providers. The
application must:
(I) show that the applicant
is a telecommunications provider as defined in PURA §51.002(10);
(II) show that the applicant has been
designated by the commission as a telecommunications provider eligible for
federal universal service support and show that the applicant offers federally
supported services to customers pursuant to the terms of
47 United States Code §
214 (e) (relating to Provision of Universal
Service) in order to receive federal universal service support;
(III) specify the THCUSP or small and rural
ILEC service area in which the applicant proposes to be an ETP, show that the
applicant offers each of the designated services, as defined in §
26.403 of this title, throughout
the THCUSP or small and rural ILEC service area for which it seeks an ETP
designation, and show that the applicant assumes the obligation to offer the
services, as defined in §
26.403 of this title, to any
customer in the THCUSP or small and rural ILEC service area for which it seeks
ETP designation;
(IV) show that the
applicant does not offer the designated services, as defined in §
26.403 of this title, solely
through total service resale;
(V)
show that the applicant renders continuous and adequate service within the area
or areas, for which it seeks designation as an ETP, in compliance with the
quality of service standards defined in §§
26.52,
26.53, and
26.54 of this title;
(VI) show that the applicant offers Lifeline
and Link Up services in compliance with §
26.412 of this title;
(VII) show that the applicant advertises the
availability of and charges for designated services, as defined in §
26.403 of this title, using media
of general distribution;
(VIII)
provide a statement detailing the method and content of the notice the
applicant has provided or intends to provide to the public regarding the
application and a brief statement explaining why the notice proposal is
reasonable and that the notice proposal complies with applicable law;
(IX) provide a copy of the text of the
notice;
(X) state the proposed
effective date of the designation; and
(XI) provide any other information which the
applicant wants considered in connection with the commission's review of its
application.
(ii) ILECs.
If the applicant is an ILEC, in addition to the requirements of clause (i) of
this subparagraph, the application must show compliance with the requirements
of subsection (c)(2) of this section.
(2) Commission processing of application.
(A) Administrative review. An application
considered under this section is eligible for administrative review unless the
telecommunications provider requests the application be docketed or the
presiding officer, for good cause, determines at any point during the review
that the application should be docketed.
(i)
The effective date of the ETP designation must be no earlier than 30 days after
the filing date of the application or 30 days after notice is completed,
whichever is later.
(ii) The
application will be reviewed for sufficiency. If the presiding officer
concludes that material deficiencies exist in the application, the applicant
will be notified within ten working days of the filing date of the specific
deficiency in its application. The earliest possible effective date of the
application will be no less than 30 days after the filing of a sufficient
application with substantially complete information as required by the
presiding officer. Thereafter, any deadlines will be determined 30 days from
the day after the filing of the sufficient application and information or from
the effective date if the presiding officer extends that date.
(iii) While the application is under
administrative review commission staff and OPUC may submit requests for
information to the applicant. Answers to such requests for information must be
provided to commission staff and OPUC within ten days after receipt of the
request by the applicant.
(iv) No
later than 20 days after the filing date of the application or the completion
of notice, whichever is later, interested persons may provide written comments
or recommendations concerning the application to the commission staff.
Commission staff must and OPUC may file with the presiding officer written
comments or recommendations regarding the application.
(v) No later than 35 days after the proposed
effective date of the application, the presiding officer will issue an order
approving, denying, or docketing the application.
(B) Approval or denial of application. The
application will be approved by the presiding officer if it meets the following
requirements.
(i) The provision of service
constitutes basic local telecommunications service as defined in §
26.403 of this title.
(ii) Notice was provided as required by this
section.
(iii) The applicant has
met the requirements contained in subsection (c) of this section.
(iv) The ETP designation is consistent with
the public interest in a technologically advanced telecommunications system and
consistent with the preservation of universal service.
(C) Docketing. If, based on the
administrative review, the presiding officer determines that one or more of the
requirements have not been met, the presiding officer will docket the
application. The requirements of subsection (c) of this section may not be
waived.
(D) Review of the
application after docketing. If the application is docketed, the effective date
of the application will be automatically suspended to a date 120 days after the
applicant has filed all of its direct testimony and exhibits, or 155 days after
the proposed effective date, whichever is later. Answers to requests for
information must be filed with the commission within ten days after receipt of
the request. Affected persons may move to intervene in the docket, and a
hearing on the merits will be scheduled. A hearing on the merits will be
limited to issues of eligibility. The application will be processed in
accordance with the commission's rules applicable to docketed cases.
(g) Relinquishment of
ETP designation. A telecommunications provider may seek to relinquish its ETP
designation.
(1) Area served by more than one
ETP. The commission will permit a telecommunications provider to relinquish its
ETP designation in any area served by more than one ETP upon:
(A) written notification not less than 90
days prior to the proposed effective date of the relinquishment;
(B) determination by the commission that the
remaining ETP or ETPs can provide basic local service to the relinquishing
telecommunications provider's customers; and
(C) determination by the commission that
sufficient notice of relinquishment has been provided to permit the purchase or
construction of adequate facilities by any remaining ETP or ETPs.
(2) Area where the relinquishing
telecommunications provider is the sole ETP. In areas where the relinquishing
telecommunications provider is the only ETP, the commission may permit it to
relinquish its ETP designation upon:
(A)
written notification that the telecommunications provider seeks to relinquish
its ETP designation; and
(B)
commission designation of a new ETP for the service area or areas through the
auction procedure provided in subsection (h) of this section.
(3) Relinquishment for
non-compliance. The TUSF administrator must notify the commission when the TUSF
administrator is aware that an ETP is not in compliance with the requirements
of subsection (c) of this section.
(A) The
commission will revoke the ETP designation of any telecommunications provider
determined not to be in compliance with subsection (c) of this
section.
(h) Auction procedure for replacing the sole
ETP in an area. In areas where a telecommunications provider is the sole ETP
and seeks to relinquish its ETP designation, the commission will initiate an
auction procedure to designate another ETP. The auction procedure will use a
competitive, sealed bid, single-round process to select a telecommunications
provider meeting the requirements of subsection (f)(1) of this section that
will provide basic local telecommunications service at the lowest cost.
(1) Announcement of auction. Within 30 days
of receiving a request from the last ETP in a service area to relinquish its
designation, the commission will provide notice in the Texas
Register of the auction. The announcement must at minimum detail the
geographic location of the service area, the total number of access lines
served, the forward-looking economic cost computed in accordance with §
26.403 of this title, of providing
basic local telecommunications service and the other services included in the
benchmark calculation, existing tariffed rates, bidding deadlines, and bidding
procedure.
(2) Bidding procedure.
Bids must be received by the TUSF administrator not later than 60 days from the
date of publication in the Texas Register.
(A) Every bid must contain:
(i) the level of assistance per line that the
bidder would need to provide all services supported by universal service
mechanisms;
(ii) information to
substantiate that the bidder meets the eligibility requirements in subsection
(c)(1) of this section; and
(iii)
information to substantiate that the bidder has the ability to serve the
relinquishing ETP's customers.
(B) The TUSF administrator must collect all
bids and within 30 days of the close of the bidding period request that the
commission approve the TUSF administrator's selection of the successful
bidder.
(C) The commission may
designate the lowest qualified bidder as the ETP for the affected service area
or areas.
(i)
Requirements for annual affidavit of compliance to receive TUSF support. An ETP
serving a rural or non-rural study area must comply with the following
requirements for annual compliance for the receipt of TUSF support.
(1) Annual Affidavit of Compliance. On or
before September 1 of each year, an ETP that receives disbursements from the
TUSF must file with the commission an affidavit certifying that the ETP is in
compliance with the requirements for receiving money from the universal service
fund and requirements regarding the use of money from each TUSF program from
which the telecommunications provider receives disbursements.
(2) Filing Affidavit. The affidavit used must
be the annual compliance affidavit approved by the commission.
Notes
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