Tracfone Wireless v. Idaho
Annotate this CaseTracFone Wireless, Inc. was a non-facilities-based commercial mobile radio service provider (a pure wireless reseller) that provided prepaid wireless telecommunications services. It desired to be designated as an eligible telecommunications carrier (ETC), which would permit TracFone to provide wireless telecommunications services to qualified low-income consumers and to receive money from the Universal Service Fund to subsidize such services. In 2004, TracFone filed a petition with the Federal Communications Commission asking that it forbear from the statutory requirement that an ETC must provide services, at least in part, over its own facilities. The Commission granted the forbearance, subject to specific conditions, including the requirement that TracFone "must have direct contact with the customer." In 2010, TracFone filed a petition with the Idaho Public Utilities Commission (PUC) seeking designation as an ETC, pursuant to 47 U.S.C. 214(e)(2). The PUC initially denied the petition on the ground that it would not serve the public interest because TracFone was not paying the fees required by the Idaho Telecommunications Service Assistance Program and the Idaho Emergency Communications Act. TracFone appealed to the Supreme Court. But while that appeal was pending, the PUC staff and TracFone agreed to a settlement under which TracFone would pay the fee required by the Telecommunications Service Assistance Program and it would file a declaratory judgment action seeking a judicial determination of whether it was required to pay the fee required by the Emergency Communications Act. The PUC accepted the stipulation and issued an order approving it on May 18, 2012. In June of that same year, TracFone filed this suit against the State of Idaho and the Idaho Emergency Communications Commission (collectively "State") seeking a determination that TracFone was not required to remit an emergency communication fee. The district court's judgment simply stated who prevailed. In its memorandum decision, the court stated, "Section 31-4802(13)(d) applies to Tracfone [sic], making it a ‘telecommunications provider' and thus subject to the Act's fee-collection duty." Assuming that was its intended declaratory judgment, the Supreme Court affirmed the judgment on appeal.
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