(a) Purpose. This section provides the requirements for the commission to designate common carriers as eligible telecommunications carriers (ETCs) to receive support from the federal universal service fund (FUSF) in accordance with 47 United States Code (U.S.C.) §214(e) (relating to Provision of Universal Service). In addition, this section provides guidelines for rural and non-rural carriers to meet the federal requirements of annual certification for FUSF support criteria and, if requested or ordered, for the disaggregation of rural carriers' FUSF support.
(b) Application. This section applies to a common carrier seeking designation as an ETC, except for commercial mobile radio service (CMRS) resellers. A CMRS reseller may not seek designation from the commission, but instead may seek designation as an ETC by the Federal Communications Commission (FCC). This section also applies to a common carrier that has been designated by the commission as an ETC, including a CMRS reseller. Subsection (i) of this section does not apply to a deregulated company holding a certificate of operating authority or to an exempt carrier under Public Utility Act (PURA) §52.154.
(c) Service areas. The commission may designate ETC service areas according to the following criteria.
  (1) Non-rural service area. To be eligible to receive federal universal service support in non-rural areas, a carrier must provide federally supported services in accordance with 47 Code of Federal Regulations (C.F.R.) §54.101 (relating to Supported Services for Rural, Insular, and High Cost Areas) throughout the area for which the carrier seeks to be designated an ETC.
  (2) Rural service area. In the case of areas served by a rural telephone company, as defined in §26.404 of this title (relating to Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan), a carrier must provide federally supported services in accordance with 47 C.F.R. §54.101 throughout the study area of the rural telephone company in order to be eligible to receive federal universal service support.
(d) Criteria for determination of ETCs. A common carrier must be designated as eligible to receive federal universal service support if it:
  (1) offers the services that are supported by the federal universal service support mechanisms under 47 C.F.R. §54.101 either using its own facilities or a combination of its own facilities and resale of another carrier's services; and
  (2) advertises the availability of and charges for such services using media of general distribution.
(e) Criteria for determination of receipt of federal universal service support. In order to receive federal universal service support, a common carrier must:
  (1) meet the requirements of subsection (d) of this section;
  (2) offer Lifeline Service to qualifying low-income consumers in compliance with 47 C.F.R. Part 54, Subpart E (relating to Universal Service Support for Low-Income Consumers); and
  (3) offer toll limitation services in accordance with 47 C.F.R. §54.400 (relating to Terms and Definitions) and §54.401 (relating to Lifeline Defined).
(f) Designation of more than one ETC.
  (1) Non-rural service areas. In areas not served by rural telephone companies, as defined in §26.404 of this title, the commission will designate, upon application, more than one ETC in a service area so long as each additional carrier meets the requirements of subsection (c)(1) and (d) of this section.
  (2) Rural service areas. In areas served by rural telephone companies, as defined in §26.404 of this title, the commission may designate as an ETC a carrier that meets the requirements of subsection (c)(2) and (d) of this section if the commission finds that the designation is in the public interest.
(g) Proceedings to designate ETCs.
  (1) At any time, a common carrier may seek commission approval to be designated an ETC for a requested service area.
  (2) To receive support under this section for exchanges purchased from an unaffiliated carrier, the acquiring ETC must file an application, within 30 days after the date of the purchase, to amend its ETC service area to include those geographic areas that are eligible for support.
  (3) If an ETC receiving support under this section sells an exchange to an unaffiliated carrier, it must file an application, within 30 days after the date of the sale, to amend its ETC designation to exclude from its designated service area those exchanges for which it was receiving support.
(h) Application requirements and commission processing of applications.
  (1) Requirements for notice and contents of application.
    (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 eligibility, the proposed effective date of the designation, and the following statement: "Persons who wish to comment on this application should notify the Public Utility Commission of Texas 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 for each common carrier seeking ETC designation. A common carrier that seeks to be designated as an ETC 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 (OPUC). The application must:
      (i) show that the applicant offers each of the services that are supported by the FUSF support mechanisms under 47 U.S.C. §254(c) (relating to Universal Service) either using its own facilities or a combination of its own facilities and resale of another carrier's services throughout the service area for which it seeks designation as an ETC;
      (ii) show that the applicant assumes the obligation to offer each of the services that are supported by the FUSF support mechanisms under 47 U.S.C. §254(c) to any consumer in the service area for which it seeks designation as an ETC;
      (iii) show that the applicant advertises the availability of, and charges for, such services using media of general distribution;
      (iv) show the service area in which the applicant seeks designation as an ETC;
      (v) contain 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 proposed notice is reasonable and in compliance with applicable law;
      (vi) contain a copy of the text of the notice;
      (vii) contain the proposed effective date of the designation; and
      (viii) contain any other information which the applicant wants considered in connection with the commission's review of its application.
    (C) Contents of application for each common carrier seeking ETC designation and receipt of federal universal service support. A common carrier that seeks to be designated as an ETC and receive federal universal service support 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. The application must:
      (i) comply with the requirements of subparagraph (B) of this paragraph;
      (ii) show that the applicant offers Lifeline Service to qualifying low-income consumers in compliance with 47 C.F.R. Part 54, Subpart E; and
      (iii) show that the applicant offers toll limitation services in accordance with 47 C.F.R. §54.400 and §54.401.
  (2) Commission processing of application.
    (A) Administrative review. An application considered under this section is eligible for administrative review unless the presiding officer, for good cause, determines at any point during the review that the application should be docketed.
      (i) The effective date will be no earlier than 30 days after the filing date of the application or 30 days after notice is completed, whichever is later.
Cont'd...