20070709_1979.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:JULY 3, 2007
RE:CAMBRIDGE TELEPHONE'S BROADBAND TAX CREDIT
APPLICATION; CASE NO. CAM-07-
BACKGROUND
On June 28 , 2007 , 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 9 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, T1 , DS3 and Frame Relay services to Idaho customers. Cambridge
Application indicated its service provides speeds of between 256K and 5M 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 just over one million dollars of investment in 2006.
ST AFF 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 subscriber. Idaho Code
963-3029I(3)(b). In addition, for a telecommunications carrier, such equipment must "
necessary to the provision of broadband service and an integral part of a broadband network"
DECISION MEMORANDUM JULY 3, 2007
Idaho Code 9 63-3029I(3)(b )(i). Staff has reviewed the list of installed broadband equipment
submitted by Cambridge and believes that the equipment identified meets the statutory criterion.
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?
i:udmemos/cambridge 2007 broadband memo
DECISION MEMORANDUM JULY 3, 2007