20040109Application.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Application of
ACN Communication Services, Inc.
Provide Facilities-based Local
Exchange Service Throughout Idaho
caseNo.
APPLICATION FOR CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO PROVIDE
FACILITIES-BASED LOCAL TELECOMMUNICATIONS SERVICES
Pursuant to Procedural Order No. 26665 in Case No. GNR- T-96-41 and Section 253 of the Federal
Telecommunications Act of 19962 (AActt9), ACN Communication Services, Inc. (AACNt9) respectfully
requests that the Public Utilities Commission (ACommissiont9) amend ACN==s Authority and grant a
Certificate of Public Convenience and Necessity to include authority to provide local exchange
telecommunications services within the State ofIdaho.
In support of its Application, A CN submits the following:
Introd uction
ACN is requesting authority to provide basic resold and facilities-based local exchange services to
both residence and business customers throughout Idaho in all exchanges which are not exempt from
competition. The services that ACN intends to offer will be an adjunct to the long distance services
that the Company has previously received authority to provide statewide. ACN plans to offer local
exchange services primarily via an unbundled network element platform (UNE-P) through
interconnection agreements with incumbent local exchange carriers (ALECst9). Should its
Application be granted, ACN plans to commence offering service immediately upon the
establishment of the appropriate and necessary resale arrangements with the incumbent LECs.
Title 61 ofthe Idaho Code ' , 61-526 through -528 and mAPA 31.01.01.111 (Rule 111).
Idaho Local Application of
Telecommunications Act of 1996 47 D.C. ' 253 (1996). ACN Communication Services, Inc.
Page I
II.
ill.
Description of the Applicant
(a)ACN Communication Services, Inc. is incorporated in the State of Michigan. The main
address of the corporation is:
ACN Communication Services, Inc.
32991 Hamilton Court
Farmington Hills, Michigan 48334
Telephone: [phone]Facsimile: [phone]Toll Free: [phone]
Website: www.acmnc.com
(b)All correspondence, notices, inquiries and other communications regarding this Application
should be addressed to:
Monique Byrnes
Consultant to ACN Communication Services, Inc.
Technologies Management, Inc.
O. Box 200
Winter Park, Florida 32789
Telephone: [phone]Facsimile: [phone]
(c)The Applicant is a Michigan Corporation, authorized by the Idaho Secretary of State to
transact business within the State ofIdaho.
(d)ACN is a telecommunications company that has been providing long distance services
nationwide, including Idaho. The Company is authorized to provide local exchange !ervices
in the following states: Alabama, California, Colorado, District of Columbia, Florida
Georgia" Illinois, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nevada, New
Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah
Washington and Wisconsin.
Exhibits
In support of this Application, the following exhibits are attached hereto:
Exhibit A -
Exhibit B -
Exhibit C -
Exhibit D -
Exhibit E -
Exhibit F -
Certificate of Incorporation;
Certificate of Authority to Transact Business in the State ofIdaho;
Financial Statements
Profiles of Senior Management Key Personnel
Proposed service area map (Rule 112(c))
Proposed Tariff
Idaho Local Application of
ACN Communication Services, Inc.
Page 2
IV.Financial, Technical and Managerial Qualifications
ACN possesses the managerial, technical and financial ability to provide local telecommunications
service in the State of Idaho. ACN has strong financial resources to enable the Company to
successfully provide local telecommunications service in the State of Idaho and the management
team in place to manage this operations.
IV.A. Financial Qualifications
(a)By utilizing its current customer service, operations and management workforce and
infrastructure supporting its resold and facilities-based local exchange and resold
interexchange operations, ACN is financially and otherwise capable and qualified to offer
and maintain all of its tariffed services in its territories.
(b)The costs of Idaho operations will consist of leasing UNE- P and additional administrative
and sales overhead. ACN is already operating as an interexchange carrier in Idaho and is
operating as a resold and facilities-based local exchange service provider in several states.
The incremental administrative and sales costs are not projected to be significant for the
Company. No new funds or capital will be required to expand the Company==s services in
Idaho.
(c)ACN provides the financial statements of its parent company, ACN, Inc. as proof of its
financial stability to provide the required services within the State of Idaho as Exhibit C.
Exhibit C is filed as Confidential.
IV.B. Managerial Qualifications
(a)ACN possesses managerial qualifications to operate a Competitive Local Exchange Carrier
within the State ofIdaho. Biographical summaries of the managerial experienceof ACN are
found in Exhibit D.
Idaho Local Application of
ACN Communication Services, Inc.
Page 3
IV.C. Technical Qualifications
(a)ACN's services will satisfy the minimum standards established by the Commission. The
Company will file and maintain tariffs in the same manner and form as required of
incumbent local exchange telecommunications companies with which ACN seeks
compete.
(b)ACN has experience operating as a local exchange provider in several states. The Company
has in excess 000 000 residential local exchange access line subscribers. As the foregoing
illustrates, ACN possesses considerable telecommunications expertise. Based on the
company==s experience and proven track record, ACN is certainly technically qualified to
provide local exchange service in Idaho.
Customer Service
ACN understands the importance of effective customer service for local service consumers. ACN has
a toll free customer service telephone number that is available with live operator response 24 hours
per day, 7 days per week. ACN's toll free telephone number for customer inquiries, complaints and
repair is 1-888-226-9013. In addition, customers may contact the company in writing at the
headquarters address.
The contact for resolution of customer complaints with the Commission is:
Daniel F. Gonos
Senior Regulatory Analyst
ACN Communication Services, Inc.
32991 Hamilton Court
Farmington Hills, Michigan 48334
248-699-3517
Idaho Local Application of
ACN Communication Services, Inc.
Page 4
VI.
VI.
Service Description and Anticipated Service Date
ACN proposes to provide resold and facilities-based local exchange servIces through the
combination of its own facilities and the resale of other carriers' facilities and network elements. The
Company intends to offer service immediately upon certification and approval of its interconnection
agreement.
ACN==s primary market is residential customers. ACN intends to provide a network bundled
telecommunications service which would include long distance service, local exchange service, and
selected custom calling features. In addition, the Company ensures customer access to emergency
services such as 911/E911 , operator services and directory assistance.
ACN intends to offer service in the geographic areas currently served by Qwest Communications.
ACN will mirror the basic local calling scopes of the incumbent local exchange companies.
Public Interest Standard
Grant of ACN's Application to provide facilities-based local exchange services is in the public
interest and serves the public convenience and necessity. In enacting the Federal
Telecommunications Act of 1996, the United States Congress determined that it is in the public
interest to promote competition in the provision of telecommunications services, including local
exchange services. Experience with competition in other telecommunications markets, such as long
distance, competitive access, and customer premises equipment, demonstrates the benefits that
competition can bring to consumers. Consumers are enjoying increased services, lower prices, higher
quality, and greater reliability. This is true not only with respect to the service offerings of the new
entrants, but also as a result of the response of incumbent monopoly providers to the introduction of
competition.
ACN plans to bring the benefits of competition to residential consumers. ACN's proposed services
will provide multiple public benefits by increasing the competitive choices available to users in
Idaho. Enhanced competition in telecommunications services likely will further stimulate economic
development in Idaho. In addition, increased competition will create incentives for all carriers to
offer lower prices, more innovative services, and more responsive customer service.
Idaho Local Application of
ACN Communication Services, Inc.
Page 5
Vill.Waivers and Regulatory Compliance
ACN has reviewed all of the Commission==s rules applicable to competitive local exchange service
providers and agrees to comply with those rules except to the extent the rules are explicitly waived
for ACN or for all carriers in the same class. Specifically, ACN requests exemption from the
following rules:
(a)Title 41, Chapter I, Rules 101-103.02 - Guarantee in lieu of deposit ACN requests
exemption only from that portion of the rule that requires a guarantee form on file with the
Commission.
(b)Title 41, Chapter 1, Rule 502.01- Service Standards:To the extenUhatACN offers service
on a UNE-P and resold basis from the incumbent local exchange service providers, ACN
requests a waiver of the requirement to adopt and pursue a maintenance program for outside
plant facilities and equipment.
(c)Title 41 , Chapter 2, Rule 102.03 - Press Release: ACN requests a waiver of the requirement
to send a press release to all newspapers, radio and television stations on the Commission=s
list. Unlike the incumbent LECs whose customer density in any given area makes press
releases practical, ACN does not anticipate sufficient market share to warrant tl::e expense of
preparing and coordinating a press release. ACN maintains a detailed web site which
includes information on the Company==s services and rates as well as corporate information
and all press releases. ACN customers will be informed of the Company=s web site and will
be able to receive all manner of information from that cite. In addition, consumers will be
informed of rate increases by bill insert. Therefore, the additional step of notification via
press release is unnecessary.
Idaho Local Application of
ACN Communication Services, Inc.
Page 6
VIII.Waivers and Regulatory Compliance, (Cont'
(d)Local Exchange Directories
ACN requests that it not be required to publish local exchange directories. ACN will make
arrangements with the incumbent LECs whereby the names of ACN==s customers will be
included in the directories published by the incumbent LECs. These directories will be
distributed to ACN==s customers. This approach is entirely reasonable and will have a direct
benefit to the customers of both ACN and the incumbent LECs since customers will have to
refer to only one directory for a universal listing of customer information. It would be an
unnecessary burden on ACN to require that it publish and distribute its own directory to all
customers located within each exchange area, particularly since nearly all ofhese customers
will be customers of the incumbent LECs. It is more efficient for ACN to simply include its
limited customer list in the existing directories of the incumbent LECs.
(e)Title 41, Chapter 2, Rule 105 and 602.01: Customer Notice: ACN has requested a waiver
of the requirement to publish Local Telephone Directories. Rules 105 and 602.01 require
that each local exchange company summarize the provisions of Sections 48-1001 et seq.
Idaho Code, and summarize the customer disclosure rules in an annual insert in a billing
statement mailed to customer or by conspicuous publication in the consumer pages of the
local telephone directory. ACN maintains that such information is published in the local
telephone directories and therefore does not need to be redistributed by ACN on an annual
basis.
(f)Reporting Requirements
ACN further requests waivers of any reporting requirements which, although applicable to
incumbent LECs, are not applicable to competitive providers such as ACN because such
requirements: (1) are not consistent with the demands of the competitive market; and (2)
they constitute an undue burden on a competitive provider, thereby requiring an inefficient
allocation of its limited resources. In addition, ACN reserves the right to seek my regulatory
waivers which may be required for ACN to compete effectively in the Idaho local exchange
services market.
Idaho Local Application of
ACN Communication Services, Inc.
Page 7
IX.Conclusion
This Application demonstrates that ACN possesses the technical, financial and managerial resources
to provide local exchange service in Idaho.
Wherefore, ACN respectfully requests that the Commission:
grant ACN authority to operate as a provider of resold and facilities-based basic local
exchange telecommunications services in the State of Idaho;
grant the waivers requested in this Application; and
grant such other relief as it deems necessary and appropriate.
Respectfully submitted
ACN Communication Services, Inc.
Idaho Local Application of
ACN Communication Services, Inc.
Page 8
ACN COMMUNICATIONS, INC
Exhibit A
Certificate of Incorporation
" -
" i:
MICHIGAN DEPARTMENT OF CONSUMER. AND INDUSTRY SERVICESCORPORA TrON, SECURiTIES AND LAND DEVELOPMENT BUREAU
Date Receh:~d
(FOR BUREAU USE ONLY)
,..
Fl. LED
....
Ii-n:J
w--
APR 3 0 1999 ::i,::::I
"'"g ,
Name
mlnistr-ator
CORP. SECU 'lES & LAND DEV, BUREAU
....
David Steinberq,P. C.
..,.
LL.
g::!::.1Address
"'00
....
1760 South Telegraph
......
Road Suite 300 1"':1-.... I'll...... n:JCityStateZip Code ..,. s...Of-Bloomfield Hills 48302
EFFECTIVE DATE:"Ch Document wIll be returned to the name and address you enter above 3-
/CJ5-a/4ARTICLES OF INCORPORATION
For use by Domestic Profit Corporations
(Please read information and instructions on the last page)
Pursuant to the provisions of Act 284 Public Acts of 1972 the undersigned cotporation executes the followingArticles:
ARTICLE I
The name of the corporation is:
ACN Communication Services , Inc.
ARTICLE II
The purpose or purposes for which the corporation is formed is to engage in any activity within the purposes for which
corporations may be formed under the Business Corporation Act of Michigan.
...,- .- ._. .
ARTICLE III
The total authorized shares:
1. Common Shares 000
Preferred Shares
2. A statement of all or any of the relative rights, prefe\ences and limitations of the shares of each class is as follows:
(\' \.
- J
ARTIC:'E IV
'--r
, 1, The address of the registered office is:
32991 Hamilton Coutt, Farmington Hills(Street Address)
I 2, The mailing address of the registered office, if different than above:
, Michigan 48334
(Giiy)(ZIP Code)
, Michigan
(Street Address or P,O, Box)(City)(ZIP Code)
3. The name of the resident agent at the registered ,office is:Davi d L. Steinber
ARTICLE V
The name(s) and address(es) of the incorporator(s) is (are) as follows:
Name Residence or Business Address
rS'flvi r'J T,l'O ; n'hl'Orr;1760 ~ Tel~1rQph Pd. S~~. 300
Bloomfield Hills , MI 48302
ARTICLE VI (Optional. Delete if not applicable)
When a compromise or arrangement or a plan of reorganization of thi~ corporation is proposed beween this corporation
and its creditors or any class of them or beween this corporation and its shareholders or any clas!; of them, a court of
equity jurisdiction within the state, on application of this corporation orof a creditor or shareholder thereof, or on
application of a receiver appointed for the corporation, may order a meeting of the creditors or class of creditors or of the
shareholders or class of shareholders to be affected by the proposed compromise or arrangement or reorganization, to be
summoned in such manner as the court directs. If a majority in number representing 3/4 in value of the creditor'$or class
of creditors, or o(the shareholders or class of shareholders to be affected by the proposed compromise or 'arrangement
or 8: reorganization, agree to a compromise or arrangement or a reorganization of this corporation as a consequence of
the compromise or ammgement, the compromise or arrangement and the reorganization, if sanctioned by the court to
which the application has been made, shall he binding on all the creditors or class of creditors, or on ail the -sharehold5rs
or class of shareholders and also on .this corporation.
ARTICLE VII (Optional. Delete if not applicable)
Any action required or permitted by the Act to be taken at an annual or special meeting of shareholders may be taken
without a meeting, without prior notice , and without a vote, if consents in writing, setting forth the action so taken. are
signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary
to authorize or take the action at a meeting at which all shares ~ntitled to vote on the action were pri:sent and voted. The
written consents shall bear the date of signature of each shareholder who signs the consent. No written consents shall be
effective to take the corporate action referred to unless , within 60 days after the record date for determining shareholders
entitledJo express consent to or to dissent from a proposal without a meeting, written consents dated not more. than 10
days before the record date and signed by a sufficient number of shareholders to take the action are delivered to the
corporation. Delivery shaH be to the corporation s registered office , its principal place of business, or an officer or agent
of the corporation having custody of the minutes of the proceedings of its shareholders. Delivery made to a corporation
registered office shall be by hand or by certified or registered mail, return receipt requested.
Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be
given to shareholders who would have been entitled to notice of the shareholder meeting if the action had been taken at
a meeting and who have not consented in writing.
-. Use space below for additional Articles or for continuation of previous Articles. Please identify any Article being, continued m added. Attach additional pages if needed.
V II \l'PT Ti'T Ti'
' ,. ._,~...........----
All stock shall be deemed Section 1244 stock pursuant tothe IRS Code as amended.
, 0Ne), the incorporator(s) sign my (our) name(s) this
J-.-
DAVID L. STEIN ERG
day of Jpd
ACN COMMUNICATIONS, INC
Exhibit B
Certificate of Authority to Transact Business in the State of Idaho
DEC-23-2003 12:22
APPLICATION FOR CE~TIFICA TE OF AUTHORITY IFor Profit)
(Instructions on Back of Application) FIL
~""
To the Secretary of State of Idaho n In
"'"
I;;u.
The undersigned Corporation applies for a Certificate of Authority and states ~bho~: t.. 33 rl't
The name of the corporation is ACN COMMUNICATION SERVICES, INC. Dr-:,
. "'; "
The name which it shall use in Idaho is
It is incorporated under the laws of Michi
Its date of incorporation is 4/30/99
The address of its principal office is 32991 Hamilton Court, Farminqton Hills, Michiqan 48334
The address to which correspondence should be addressed, if different than item 5, is
The street address of its registered office in Idaho is ~()() Nnrt-n ht-h ~t-r~F't:, Rni "-:F'Trii'lnn R~7()
I and its registered agent in Idaho at that address is C T Corporation Svstem
The names and respective business addresses of its directors and officers are:
Name
See attached list ofdi rectors and offj cers
Office Address
Dated:II -
//-
9Cf
ICATION SER~ ;;gn
; ~
IvAHO nc t:TOTJ;
customerA~ctf:2/1!/1999 89:
Ilfu6ina\,;~";oQl~.Ij~~B~tI' Cf: 19295 BH: 27276&
~,... :pfl~fJI.~~&rnY PRO II 2
~j
g i Jj~
CDJ
Its Sp.rr.".f- '" r Tr9iis~rspecify capacity of signer)
DEC-23-2003 12:
State of Idaho
CERTIFICATE OF AUTHORITY
ACN COMMUNICATION SERVICES, INC.
File Number C 131480
I PETE T. CENARRUSA, Secretary of State of the State of Idaho , hereby certify
that an Application for Certificate of Authority, duly executed pursuant to the provisions
of the Idaho Business Corporation Act, has been received in this office and is found to
conform to law.
ACCORDINGLY and by virtue of the authority vested in me by law, I issue this
Certificate of Authority to transact business in this State and attach hereto a duplicate
of the Application for such Certificate,
Dated: December 10 , 1999
SECRETARY OF STATE
~?
/ 1'
e,t )1 :J;l/P/l/
. : .
DEC-23-2003 12:23
Appendix to Idaho
Application for Certificate of Authority DEt;
Directors and Officers of
(' ,-
ACN COMMUNICATION SERVICES, IN'
2 33 PH
Greg Provenzano, President and Director
11515 Vanstory Drive Ste 140Huntersville, North Carolina 28078
Jayne Diorka, Secretary and Treasurer
32991 Hamil ton Court
Farmington Hills, Michigan 48334
Robert Stevanovski, Director
11515 Vanstory Drive Ste 140
Huntersville, North Carolina 28078
Anthony Cupis z, Director
32991 Hamilton Court
Farmington Hills, Michigan 48334
D. Sullivan, Director
32991 Hami ton Court
Farmington Hills, Michigan 48334
David Stevanovski, Director
32991 Hamil ton Court
Farmington Hills, Michigan 48334
Page 1
TOTAL P. 05
ACN COMMUNICATIONS, INC
Exhibit C
Financial Statements
The Company s Financial Statements are filed under separate Seal as Confidential.
ACN COMMUNICATIONS, INC
Exhibit D
Profiles of Senior Management Key Personnel
ACN COMMUNICATION SERVICES, INc.
MANAGEMENT PROFILES
Charles Barker - Chief Executive Officer - North America
Charles Barker is the Chief Executive Officer - North America for ACN has over 17 years of
telecommunications experience. Prior to joining ACN he was Chief Financial Officer of Global Carrier
Services for Global Crossing where, among other responsibilities, he oversaw strategic and product
development analysis, customer provisioning and negotiations, billing and forecasting. Mr. Barker also held
the position of Chief Financial Officer for North America Carrier Services with the Frontier Corporation and
also served as Corporate Controller for Frontier. He worked for eleven years with PricewaterhouseCoopers
LLP where his primary assignment was the Frontier Corporation audit. Mr. Barker has a bachelor s degree in
accounting from Clemson University and is a Certified Public Accountant.
James F. Mulcahy - Secretary
James F. Mulcahy is the Secretary and Chief Operating Officer- Europe for ACN and has more than 20 years
experience in corporate finance, including specific expertise in general accounting, credit and collection
operations, financial reporting, budgeting and planning. Prior to joining ACN, he was Vice President
International Carrier Finance for Global Crossing where he was responsible for the organization of credit and
collection. From 1994 until 2000 Mr. Mulcahy worked for Frontier Corporation in various positions including
Managing Director UK, Vice President Finance, Vice President Corporate Operations and Vice President
Finance and CFO - FCI Long Distance. Prior to Frontier he held various executive level positions with the
Dun & Bradstreet Corporation. Mr. Mulcahy has a BBA. in Accounting and an MBA in Finance from Pace
University.
Neil Newcomb - Vice President of Call Center Operations
Neil Newcomb brings to ACN thirteen years of experience in a variety of management rolls with Allnet
Communications, Frontier Communications and Global Crossing. Prior to joining ACN, Neil was responsible
for the CLEC call center in Green Bay, Wisconsin for Frontier Communications/Global Crossing. During a
brief three year assignment in a non-telecommunications environment, Neil was employed by AAA Michigan
also in call center operations. Neil Newcomb joined the ACN team in 2003.
ACN COMMUNICATION SERVICES, INC.
MANAGEMENT PROFILES, (Cont'
Dan Crowley - Vice President, Finance
Dan Crowley is the Vice President, Finance, North America for ACN, Inc., a telecommunications reseller
based in Farmington Hills, MI. In this role, Dan is responsible for all financial operations of this $100
Million division, including accounting, fmance, credit & collections and corporate tax. Before joining ACN in
August 2002, Dan provided strategic advisory services to companies in the CLEC and ISP markets. Dan
helped launch Carrier Trust Company, which focused on financing alternatives for carriers and he also
completing work on the Excite~Home reorganization and transitional strategy plan.
Dan left IQ Labs, Inc. in November of 2001 , where he was the Vice President of business and product
development. IQ Labs makes enterprise software that automates the provisioning process for enterprise
communications equipment. In this role, Dan built the strategic plan that helped the company secure $12
Million in venture funding. He also successfully re-crafted the company s product strategy to align it with
enterprise customer s needs.
Prior to joining IQ Labs in July of2000, Dan held various business and product development positions for
Qwest Communications (formerly U S WEST) in the !NTERPRISE Networking Data business.
!NTERPRISE was created by U S WEST in 1992 to address the advanced data and network integration needs
of customers in its 14 Western and Midwestern states. As Director of product development, Dan led the team
that conceived and launched the company s E-Commerce offerings. Previously, he was Director of business
development for !NTERPRISE where he directed partnering and investment activity in the Internet and
broadband sectors. Dan began his career at US WEST in 1997 as Director of business developmentfor US
WEST Long Distance, and moved to !NTERPRISE in 1998.
Before joining US WEST, Dan was a member of the corporate development team at Frontier Corporation, in
Rochester, New York, which merged with Global Crossing in 1998. While there, Dan helped complete seven
acquisitions valued at over $2 Billion. He also contributed to the groundbreaking Open Market Plan, which
opened the local telephone markets of Frontier to competition. The Open Market Plan eventually served as a
major blueprint for the Telecommunications Act of 1996, which sought to introduce local telephony
competition across the country. Dan joined Frontier in 1994 after holding various positions with The Chase
Manhattan Bank in corporate finance.
Dan graduated with a Bachelor of Science degree in business administration from the California State
University at Humboldt and received an MBA from St. Bonaventure University in Olean, New York.
ACN COMMUNICATIONS, INC
Exhibit E
Proposed Service Area Map
ACN seeks statewide authority to offer its services.
ACN COMMUNICATIONS, INC
Exhibit F
Proposed Tariff