20070709_1980.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:JULY 3, 2007
RE:TETON TELECOM'S BROADBAND TAX CREDIT APPLICATION;
CASE NO. COL-07-
BACKGROUND
On April 12, 2007, the Commission received an Application from Columbine Telephone
Company dba Teton Telecom (Teton) asking for approval of equipment for the broadband tax
credit pursuant to Order No. 28784 and Idaho Code 963-30291(4). To be eligible for the tax
credit, the taxpayer must obtain from the Commission an Order confirming that installed
equipment qualifies for the tax credit.
STAFF ANALYSIS
Teton s Application indicated it had installed central office equipment and fiber cables to
provide DSL and TI services to Idaho customers. Teton s Application indicated its service
provides speeds of between 64K and 1.5M bits per second for uploads from customers, and 256K
and 1.5M bits per second for downloads to customers. In a telephone conversation with Staff, the
Company corrected the minimum upload speed to 128K. 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 over
seven hundred thousand dollars of investment in 2006.
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
DECISION MEMORANDUM JULY 3 , 2007
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"
Idaho Code 9 63-3029I(3)(b)(i). Staffhas reviewed the list of proposed broadband equipment
submitted by Teton and believes that the equipment identified meets this 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 Teton s Application for the broadband investment tax
credit?
i:udmemos/teton 2007 broadband memo
DECISION MEMORANDUM JULY 3, 2007