Florida Public Service Commission native order document 06753-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 6/20/2024
DOCUMENT NO. 06753-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for designation as eligible DOCKET NO. 20240065-TP
telecommunications carrier in the State of ORDER NO. PSC-2024-0201-PAA-TP
Florida, by Q LINK WIRELESS. ISSUED: June 20, 2024

The following Commissioners participated in the disposition of this matter:

MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO

NOTICE OF PROPOSED AGENCY ACTION
ORDER GRANTING ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION

BY THE COMMISSION:

NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature and will become final unless a person whose interests
are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).

Background

Q LINK WIRELESS LLC (Q LINK or Company) seeks designation as an eligible
telecommunications carrier (ETC) for the sole purpose to provide Lifeline service to qualifying
consumers throughout Florida. Q LINK is a provider of commercial mobile radio service
(CMRS) and offers prepaid wireless telecommunications services to consumers as a wireless
reseller. Specifically, Q LINK uses the network infrastructure and wireless transmission facilities
of T-Mobile USA, Inc. (T-Mobile) to allow the Company to operate as a Mobile Virtual
Network Operator. Q LINK is currently designated as an ETC providing Lifeline service in 36
other states, the U.S. Virgin Islands, and Puerto Rico.

As a CMRS provider, Q LINK is regulated as a common carrier pursuant to 47 U.S.C. §
153(11).' Q LINK is a Limited Liability Company that was organized in the State of Delaware
on August 25, 2011. Q LINK is wholly-owned by its parent, Quadrant Holdings Group LLC
(QUADRANT), and received all required approvals from the FCC and state commissions.

' 47 U.S.C. § 153(11) (defining a common carrier as “any person engaged as a common carrier for hire, in interstate
or foreign communications by wire or radio .. . .”; 47 U.S.C. § 332(c)(1)(A) (treating commercial mobile service
providers as common carriers).

ORDER NO. PSC-2024-0201-PAA-TP
DOCKET NO. 20240065-TP
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QUADRANT also owns 100 percent of Centurion Logics, LLC and Hello Mobile Telecom, LLC
(HELLO).
Q LINK asserts that it meets all applicable federal requirements for designation as a
Lifeline only ETC in Florida pursuant to 47 U.S.C. § 214(e) and 47 C.F.R. § 54.201. Q LINK
acknowledges and asserts that, if approved, it will comply with Sections 364.10 and 364.105,
Florida Statutes (F.S.) and Rule 25-4.0665, Florida Administrative Code (F.A.C.), which govern
Lifeline service and provide for a transitional discount for customers who no longer qualify for
Lifeline. In addition to the federal rules and statutes discussed above, we have jurisdiction in this
matter pursuant to Section 364.10, F.S.
Section 214(e)(2) of the Telecommunications Act of 1996 (the Act) provides state public
utility commissions with “primary responsibility” for the designation of ETCs. We initially
exercised this authority to designate both wireline and wireless carriers as ETCs. In 2011, the
Florida Legislature removed the FPSC authority to designate wireless ETC providers.2 However,
the Florida Legislature amended Section 364.10, F.S., in 2024 to specifically grant the
Commission 	jurisdiction 	to 	address 	wireless 	ETC 	petitions 	for 	Lifeline 	purposes 	only.3
Decision
I. 	Requirements for ETC Designation
This Order addresses whether Q LINK qualifies for ETC designation to provide Lifeline
service throughout the State of Florida. ETC designation is necessary for telecommunications
companies to participate in the federal Lifeline program.4 Section 364.10, F.S., allows us to
approve 	wireless 	Lifeline 	ETC 	petitions 	for 	requesting 	carriers. 	Specifically, 	subsections
364.10(1)(a) and (3)(a) F.S., provide us with the authority to designate a commercial mobile
radio service provider as an ETC for the limited purpose of providing Lifeline service.
Federal rules outline the requirements for ETC designation.5 To obtain ETC designation
to provide Lifeline services, federal rules require that carriers:
1) 	Be a common carrier;
2) 	Offer the services that are supported by the federal universal support mechanisms
either using its own facilities or a combination of its own facilities and resale of
another carrier’s services;
2 House Bill 1231 (2011), effective July 1, 2011.
3 Senate Bill 478 (2024), effective April 15, 2024.
4 47 C.F.R. § 54.201(a).
5 47 U.S.C. § 214(e)(1), 47 C.F.R. § 54.101, 47 C.F.R. § 54.201, and 47 C.F.R. § 54.401; While Section 47 C.F.R. §
54.101(a) also includes requirements addressing toll limitation services to qualifying low-income consumers, the
FCC in its 2012 Lifeline and Link Up Reform Order (FCC 12-11) stated that: “ETCs are not required to offer toll
limitation service to low-income consumers if the Lifeline offering provides a set amount of minutes that do not
distinguish between toll and non-toll calls.”

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3) 	Advertise the availability of its Lifeline service through a media of general
distribution;
4) 	Provide voice grade access to the public switch network or its functional
equivalent;
5) 	Offer minutes of use for local service at no additional charge to end users;
6) 	Provide access to the emergency services available by local government or other
public safety organizations;
7) 	Provide Broadband Internet Access Service;6
8) 	Demonstrate financial and technical capability to provide Lifeline service; and
9) 	Not charge Lifeline customers a monthly number-portability charge.
In addition, Florida law requires ETCs to:
1) 	Offer a discounted transitional basic telecommunications service;7 and
2) 	Participate in the Lifeline Promotion Process.8
II. 	Forbearance of Facilities Requirement
Q LINK plans to offer all of the supported services enumerated under Section 254(c) of
the Act through its wireless resale agreement with T-Mobile. Therefore, it sought forbearance of
the facilities requirement from the FCC. On August 8, 2012, the FCC approved Q LINK’s
compliance plan as a condition of obtaining forbearance from the facilities requirement for the
provision of Lifeline service. As part of its compliance plan Q LINK committed to do the
following:9
1) 	Provide the supported services throughout the carrier’s designated areas;
2) 	Remain functional in emergency situations;
3) 	Comply 	with 	the 	Cellular 	Telecommunications 	and 	Internet 	Association's
Consumer Code for Wireless Service;
4) 	Demonstrate that it is financially and technically capable of providing the Lifeline
service in compliance with federal rules; and
5) 	Describe the terms and conditions of the broadband Internet access service plans
offered to Lifeline subscribers.
Because Q LINK will offer the supported services and is compliant with the FCC
requirements pursuant to 47 U.S.C. § 214(e) and 47 C.F.R. § 54.201, as well as the Florida
specific requirements, Q LINK is eligible for designation as a Lifeline only ETC in Florida.
6 Broadband Internet Access Service (BIAS) is defined as a mass-market retail service that provides the capability to
transmit and receive data, but excluding dial-up service.
7 Section 364.105, F.S states that each ETC shall offer a residential basic local telecommunications service at 70
percent of the residential local telecommunications service rate for any Lifeline subscriber who no longer qualifies
for Lifeline for a period of 1 year after the date the subscriber ceases to qualify for Lifeline .
8 Rule 25-4.0665(3), F.A.C. The Lifeline Promotion Process is an electronic system developed in collaboration with
the Florida Department of Children and Families, ETCs and the FPSC. This system helps assist ETCs and the FPSC
in providing information on how to apply for Lifeline assistance to eligible customers.
9 47 C.F.R. § 54.202(a)

ORDER NO. PSC-2024-0201-PAA-TP
DOCKET NO. 20240065-TP
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III. 	Financial, Managerial, and Techinical Capabilities
As noted in its petition, Q LINK has offered service since 2011 and has not filed for any
form of bankruptcy relief. The Company has operated as an ETC in 36 states, the U.S. Virgin
Islands, and Puerto Rico and has not been subject to ETC revocation proceedings in any state. Q
LINK is currently under investigation by the FCC in three cases.
1) 	The FCC has proposed a $62 million penalty against Q LINK for its apparent violation of
Emergency 	Broadband 	Benefit 	Program 	(EBB) 	rules 	by 	seeking 	and 	receiving
reimbursement for connected devices in excess of the market value.10
2) 	The FCC issued a $20 million Notice of Apparent Liability for Forfeiture against Q
LINK and HELLO for Consumer Proprietary Network Information (CPNI) violations.11
3) 	The FCC proposes a $100,000 fine against QUADRANT, Q LINK and HELLO for the
Companies’ failure to respond to a Commission order to provide information and
documents concerning an alleged security flaw in the Q Link mobile application (related
to CPNI violation).12
We requested additional information regarding these investigations and Q LINK provided
explanations, as summarized below: 13
1) 	This investigation reflects a difference of opinion between Q LINK and the FCC
regarding a good-faith estimate of the market value of connected devices the Company
provided to qualified low-income consumers during the Covid-19 pandemic. Because of
Covid-19 related supply-chain interruptions, Q LINK contends it was forced to have
devices custom-made to meet the needs of customers as sufficient off-the-shelf devices
were not available. The dispute between the FCC and the Company is in regards to the
methodology to estimate market value.
2) 	The FCC initiated this inquiry based on allegations that Q LINK customer information
was available on its phones. Specifically, the website Ars Technica claimed Q LINK’s
system allowed customers to access their accounts through the Internet. Q LINK had
investigated the allegations prior to the FCC’s inquiry and was unable to duplicate the
asserted flaws. The FCC’s investigation does not assert that any third-party breach
actually occurred, but faults Q Link for account-authentication methods asserted to be
insufficiently protective under the FCC’s regulations. Q LINK has updated its practices
and conforms with the FCC’s requirements.
3) 	This investigation is the result of a dispute regarding the length of time Q LINK took to
respond to the inquiry noted above. While responding the FCC’s inquiry after the initial
10 FCC, Notice of Apparent Liability for Forfeiture and Order, FCC 23-2, Released January 17, 2023.
11 FCC, Notice of Apparent Liability for Forfeiture, FCC 23-59, Released July 28, 2023.
12 FCC, Notice of Apparent Liability for Forfeiture, DA 22-825, Released August 5, 2022.
13 Document No. 04314-2024

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due date, Q LINK contends that the FCC’s questions were too numerous for the time
period provided for response.
In each of the investigations detailed above, the Company has provided a reasonable
explanation as to the nature of the FCC’s investigation and the Company’s response. The
Company has disputed the FCC’s assertion that the market value of its tablets were unreasonable
and has provided evidence to that effect. In the CPNI case, the Company has changed its
procedures to align with FCC requirements. After careful consideration, we find that the
investigations does not preclude approval of Q LINK’s petition.
The company has over 10 years of technical and managerial experience, and it does not
rely exclusively on Lifeline reimbursements for its operating revenues. As Q LINK will be
providing resold wireless service, it will also rely upon the managerial and technical expertise of
its underlying carriers.
IV. 	Public Interest
State commissions are required to find that ETC designation is in the public interest.14 Q
LINK asserts granting its ETC designation will bring Lifeline eligible consumers more choice in
providers without creating an additional burden on the federal high-cost programs. In Florida,
consumers are currently limited to three wireless Lifeline providers. These three companies
represent 98 percent of the Lifeline market in Florida.15 However, our estimated Lifeline
participation rate for the last two years has hovered around 18 percent.16 The increase in carriers
servicing this market may increase participation through additional marketing and would serve
the public interest.
V. 	Conclusion
We have reviewed Q LINK’s petition for ETC designation in Florida. Q LINK meets all
the requirements for designation as an ETC. Additionally, the Company has demonstrated
sufficient financial, managerial, and technical capabilities. Therefore, we grant Q LINK ETC
designation throughout the State of Florida as identified in Attachment A of this Order. We
further order that if there is a future change of Company ownership, the new owners shall be
required to file a petition with us to demonstrate that it is in the public interest to maintain the
Company’s ETC designation.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Q LINK WIRELESS LLC’s
Petition for Designation as an Eligible Telecommunications Carrier throughout the State of
Florida is GRANTED. It is further
14 47 U.S.C. § 214(e)(2).
15 2023 Florida Lifeline Assistance Report, December 2023, Appendix C, p 24.
16 Ibid, p 13.

ORDER NO. PSC-2024-0201-PAA-TP
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ORDERED that Q UNK WIRELESS LLC is designated an eligible telecommunications
carrier for the sole purpose of providing Lifeline service to qualifying consumers in the State of
Florida. It is further
ORDERED that if there is a future change in Q LINK WIRELESS LLC's ownership, the
new owners shall file a petition with the Commission to demonstrate that it is in the public
interest to maintain the ETC designation. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropr1ate
petition, in the form provided by Rule 28-106.20 l, F.A.C., is received by the Commission Clerk,
2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the close of business on the
date set forth in the "Notice of Further Proceedings or Judicial Review'' attached hereto. It is
further
SF
ORDERED that in the event this Order becomes final, this docket shall be closed.
By ORDER of the Florida Public Service Commission this 20th day of June, 2024.
Commiss·
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A 	copy of this document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.

ORDER NO. PSC-2024-0201-PAA-TP
DOCKET NO. 20240065-TP
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NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the relief sought.
Mediation may be available on a case-by-case basis. If mediation is conducted, it does
not affect a substantially interested person’s right to a hearing.
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file a petition for a formal
proceeding, in the form provided by Rule 28-106.201, Florida Administrative Code. This petition
must be received by the Office of Commission Clerk, at 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850, by the close of business on July 11, 2024.
In the absence of such a petition, this order shall become effective and final upon the
issuance of a Consummating Order.
Any objection or protest filed in this docket before the issuance date of this order is
considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.
. .

ORDER NO. PSC-2024-0201-PAA-TP DOCKET NO. 20240065-TP
ATTACHMENT A
PAGE 8
Tallahassee
Jacksonville
Panama City
Apalachicolale
Gainesville
Palm Coast
Daytona Beach
FLORIDA
Orlando
Lakeland
Palm Bay
Tampa
. Port Saint lucie
North Port
Cape Coral
Fort Lauderdale
Miami
Key West
5G Ultra Capacity
5G Extended Range
4G LTE
3G/2G
/ Partner
Partner Canada and Mexico
No coverage
O