CPUC Relaxes Draft Conditions Before Verizon/Tracfone Vote
The California Public Utilities Commission scaled back some conditions in its proposed conditional OK of Verizon/Tracfone before a planned Thursday vote. Administrative Law Judge Thomas Glegola issued a revised draft Tuesday after Verizon and Tracfone raised concerns in docket A.20-11-001…
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(see 2111050039). Verizon would have to participate in California LifeLine for 20 years rather than endlessly, as at first proposed. Another change increases to two years from six months how much time Verizon would have to migrate to its network all Tracfone customers currently on other networks. Citing global supply constraints, the revised draft allows Verizon to give 4G devices to LifeLine customers for the first year of the migration, but it would have to offer 5G handsets from then on. Verizon now would have until Dec. 30, 2025, to have at least 200,000 LifeLine subscribers. The first draft would have required that by June 30, 2023. The revised draft extended interim milestones. Glegola added findings that the applicants “failed to make commitments or provide certainty that former TracFone customers will have more options in terms of devices and plans without incurring additional costs” or “to make commitments to pass on any verifiable or quantifiable cost savings or service improvements to former TracFone customers despite claiming such benefits would occur as a result of the merger.” The Center for Accessible Technology, one intervenor that sought conditions, thinks the revised proposal “is thoughtful, incisive, and strong, and implements meaningful and enforceable mitigation measures that will help ensure that former TracFone customers and low-income customers will have access to low-cost telephone services after the merger closes,” Legal Counsel Paul Goodman emailed Wednesday. Lengthening the migration timeline is reasonable because “it’s more important that the migration be successful,” he said. The edits "provide additional flexibility for Verizon to offer free devices for TracFone customers during the transition" and "confirm that the combined company will participate in the state Lifeline program in meaningful ways," emailed The Utility Reform Network Managing Director-Telecom Brenda Villanueva. She praised the plan for requiring collaboration between the CPUC and combined company. Verizon didn’t comment.