Western Wireless Corp. appears to have a long struggle ahead as it attempts to offer fixed wireless service in rural America.
The South Dakota Public Utilities Commission denied Western’s application requesting eligible telecommunications carrier status in the state. ETC status allows telephone carriers in states to receive universal-service funds to underwrite above-cost phone lines. Western has applied for ETC status in 13 states. The South Dakota PUC is the first to rule on the cellular carrier’s application. It plans to release a detailed ruling late this week.
“The main reason the commission denied their ETC status is because they weren’t currently providing ETC services,” said a commission spokeswoman. “In testimony, Western Wireless said they intended to provide a universal-service offering through fixed wireless. They are not providing it now. ETC status requires them to meet those requirements now, not if they intend to sometime in the future.”
Western Wireless said it is considering its options in response to the decision.
“I am deeply troubled by the South Dakota commission’s decision and its apparent inconsistency with the competitive framework established by the [Telecommunications] Act,” said Western Chief Executive Officer John Stanton. “Western Wireless stands ready to bring the benefits of competition to the rural consumer and will continue to work with federal and state authorities on eliminating barriers to competition.”
Last month, Western Wireless asked the Federal Communications Commission to spell out requirements states must follow in designating ETC status. It also suggested the commission consider designating wireless carriers as ETCs for federal support. But a backlog of items are pending before the FCC.
Such a clarification could clear up issues playing out in Texas and Nevada, where public service commissions have said wireless carriers are not eligible for ETC status because the telecom act, which opened up competition to local exchange carriers, did not envision wireless-to-wireline competition.
“It’s vital the FCC recognizes that states have a major way of providing a barrier to entry,” said Michele Farquhar, Western Wireless’ outside Washington counsel.
Western Wireless introduced a wireless local loop service designed to compete with landline phone service in Regent, N.D., population 268. That offering already has come under fire. The North Dakota Public Service Commission is expected to rule in coming months on a complaint lodged by Western Wireless against Regent incumbent telephone operator Consolidated Telephone Cooperative, which disconnected wireless numbers assigned to Western Wireless’ customers. Consolidated claims Western Wireless should have secured a competitive interconnection agreement with the carrier. At issue is whether Western Wireless falls under regulations designed for landline operators. Western Wireless argues it is governed by FCC regulations because it uses cellular frequencies to provide service. The N.D. PSC is expected to rule on Western Wireless’ ETC application next month.
