TracFone Wants Lifeline Support Conditions Eased
TracFone Wireless asked the FCC for “slight” changes in conditions set in a recent order (CD Sept 7 p2) letting the carrier receive Universal Service Fund support. “Strict compliance” with the conditions would be “burdensome” and wouldn’t provide “any greater assurances of emergency service availability than would the approach” it wants, TracFone said. TracFone needs FCC approval for its proposal to move forward with ETC designation petitions in 8 states. The FCC has said it would consider the proposal in the context of TracFone’s ETC designation proceedings.
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The FCC last month granted a TracFone petition seeking forbearance from a bar on firms that don’t own facilities participating in the Commission’s Lifeline low- income support program. The Commission conditioned its decision on TracFone: (1) Getting ETC designation. (2) Providing Lifeline customers services that include basic and enhanced 911 capabilities no matter whether the handset is activated. (3) Only providing Lifeline customers E-911 compliant handsets. (4) Obtaining certification from PSAPs of its compliance with basic and E-911 obligations in areas where it operates. (5) Adopting safeguards to ensure the Lifeline program’s integrity.
TracFone Tues. asked the FCC to modify a requirement that it get certification from every PSAP regarding 911 and E-911 availability. Instead, TracFone proposed to confirm that its underlying carrier is E-911 compliant and certify to the FCC that it will provide service over a E- 911 compliant carrier. With carriers using handset-based E-911 technology, TracFone said, it will provide certification from phone makers that phones are E-911 compliant. “TracFone’s suggested certification process will provide greater assurance to the Commission and to the public that it will offer basic and E-911 access to customers than would individual certifications from PSAPs that have no direct knowledge about TracFone’s service,” the firm said.
TracFone also asked the FCC to let it offer Lifeline in areas where E-911 service is available, even if E-911 service hasn’t yet been deployed. “TracFone believes that basic 911 provides important public safety benefits in areas where E-911 has not yet been deployed and that Lifeline customers should be able to reach 911 operators from the wireless handsets when E-911 is not available,” the company said.
“We asked for it because it will be the right thing to do,” said Mitchell Brecher, who represents TracFone. “Bear in mind that whether or not there is E-911 availability in the area is up to the PSAPs, not to the carrier,” he said: “There is no question that where the E-911 service is available, it’s great, but where it’s not available, a basic 911 gives public protection that otherwise wouldn’t exist… All we say is where E-911 service isn’t deployed, TracFone would provide the 911 service that customers otherwise wouldn’t have.”
The FCC isn’t likely to change the conditions it imposed, said Wintergreen Research Pres. Susan Eustis: “If you look at the history… the FCC has been consistent in trying to enforce that [telephone companies] have to offer [E-911].” She said it’s “very unlikely” the FCC will rule “against the need for E-911 service, because they have been so diligent in requiring E-911 in wireless.”
The Bells, which have opposed TracFone’s forbearance, likely will oppose the compliance plan as well, Eustis said. They “would be very reluctant to see a competitor being able to offer services that don’t include E-911. They all have to provide E-911, so why should a competitor come in and ride on their investment?” Eustis said. The ability to offer E-911 is “a very big part of putting the network together. Big incumbents don’t want to be left without customers, because their customers migrate to competitors that don’t have costs of offering E-911 and offer cheaper services,” she said.
As part of its proposal, TracFone said it would provide E-911-compliant handsets to all new Lifeline customers. For existing customers who qualify for its Lifeline program but don’t own E-911-compliant handsets, TracFone said, it would replace a handset with an E-911- compliant one at no charge. TracFone said it would provide Lifeline customers with access to basic and E-911 services “immediately” after activation of service and “irrespective” of whether its handsets have remaining unexpired minutes of use.
TracFone also said its procedures for certifying consumer eligibility for Lifeline service will comply with applicable state and federal requirements. TracFone customers will get printed material on the program at the point of sale, but will apply for Lifeline service directly with TracFone, the company said. When processing Lifeline applications, TracFone said, it will search its customer records to see if an applicant is trying to get Lifeline service for more than one handset.
With TracFone leading the way, other MVNOs, such as Net10 and Virgin Mobile, “are likely to be watching this very closely,” Eustis said: “They are in the same position as TracFone and if TracFone succeeds they will likely file” similar requests with the FCC. But, she added: “Because it’s so expensive to file such petitions, everyone will look and see what the outcome is.”