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HomeMy WebLinkAbout20061027_1707.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY LEGAL WORKING FILE FROM:WAYNE HART DATE:OCTOBER 18, 2006 RE:CAMBRIDGE TELEPHONE BROADBAND TAX CREDIT APPLICATION; CASE NO. CAM-06-01. BACKGROUND On October 12 2006, the Commission received an Application from Cambridge Telephone Company (Cambridge) asking for approval of a broadband tax credit pursuant to Order No. 28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must obtain an Order from the Commission confirming that installed equipment qualifies for the tax credit. STAFF ANALYSIS Cambridge s Application indicated it had installed central office equipment and fiber cables to provide DSL, Tl , DS3 and Frame Relay services to Idaho customers. Cambridge Application indicated its service provides speeds of between 256K and 3M bits per second to customers. The Company indicated the equipment is necessary and integral to its broadband network. The Company claims that 100% of the investment will be used to provide service to Idaho customers. The Application identified nearly one and a half million dollars of investment in 2005. STAFF REVIEW In order to qualify for the credit, the broadband equipment must be capable of transmitting signals at a rate of at least two hundred thousand (200 000) bits per second to a subscriber and at least one hundred twenty-five thousand (125 000) bits per second from a DECISION MEMORANDUM OCTOBER 18, 2006 subscriber. Idaho Code ~ 63-30291(3)(b). In addition, for a telecommunications carrier, such equipment must "be necessary to the provision of broadband service and an integral part of a broadband network"Idaho Code ~ 63-30291(3)(b)(i). Staff has reviewed the list of installed broadband equipment submitted by Cambridge and believes that the equipment identified meets the statutory criteria. Therefore, Staff recommends approval of the Application and further recommends that the Commission forward the approving Order along with a copy of the original Application to the Idaho Tax Commission. COMMISSION DECISION Should the Commission approve Cambridge s Application for the broadband investment tax credit? whartiudmemos/Cambridge 2006 broadband memo DECISION MEMORANDUM OCTOBER 18, 2006