20091030Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 29, 2009

SUBJECT: APPLICATION OF ALEC, INC. FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY; CASE NO. ALE-T-09-01

On June 12, 2009, ALEC Telecom, Inc. (“ALEC” or “Company”) filed an
Application for a Certificate of Public Convenience and Necessity pursuant to Idaho Code §§ 61-
526 through -528, IDAPA 31.01.01.111 and Commission Order No. 26665 to provide local
exchange telecommunications services within the State of Idaho.
Subsequently, Commission Staff consulted with representatives of the Company
regarding its Application and the submission of revised tariff pages. On September 29, 2009, the
Commission issued a Notice of Application and Notice of Modified Procedure. See Order No.
30907. Thereafter, the Commission received written comments submitted by Staff within the
established 21-day comment period.
THE APPLICATION
ALEC is a Kentucky corporation and lists its principal place of business as
Lexington, Kentucky. Application at 2-3. ALEC is registered with the Idaho Secretary of State
as a foreign limited liability company and has contracted with National Registered Agents, Inc.,
1423 Tyrell Lane, Boise, Idaho 83706, as its Idaho registered agent for service. Id. at 3.
Currently, ALEC is certificated, registered or otherwise authorized to provide interexchange and
local exchange telecommunications services in the following states: Alabama, California,
Florida, Georgia, Kansas, Kentucky, Mississippi, Nebraska, Nevada, North Carolina, Ohio,
South Carolina, Tennessee, Texas and Washington. Id. at 1.
DECISION MEMORANDUM 2
ALEC proposes to “provide facilities-based and resold local exchange and
interexchange services to the extent the network and transmission facilities of its facilities-based
competitive suppliers permit.” Id. at 2. ALEC will offer “wholesale switching and
interconnection services to other telephone service providers and similarly-positioned wholesale
business customers.” Id. at 4.
ALEC requests authority to provide its services to customers “throughout the entire
state of Idaho, or to the extent the facilities of its underlying carriers permit.” Id. at 1-2. The
Company anticipates that it will compete with current Idaho ILECs Qwest North, Qwest South
and Verizon Northwest. Id. at 4. The Company “does not anticipate installing physical plant at
this time” and states that it intends to “collocate switching, signaling systems and other
equipment of ILEC and non-ILEC collocation facilities. . . .” Id. at 2. Applicant has not yet
finalized the location of its facilities in Idaho. Id.
In its filing, ALEC has included a copy of its initial tariff and price sheets. Id. at 5,
Exhibit 3. The Company has “reviewed all of the Commission’s rules and agrees to comply with
them.” Id., Exhibit 4. ALEC states that it has initiated negotiations for network interconnection
with Verizon Northwest Inc. Id. at 6. The Company does not anticipate that it will require
advanced payments or deposits from its customers. Id.
STAFF COMMENTS
Staff reviewed ALEC’s Application and determined that the Company has complied
with the requirements of Procedural Order No. 26665 and IDAPA 31.01.01.111 (Commission
Procedural Rule 111). Staff believes that ALEC possesses the requisite financial, managerial,
and technical qualifications necessary to operate as a telecommunications provider within the
state of Idaho. See Staff Comments at 2.
Based upon its review, Staff recommends that the Company be granted a CPCN
subject to the following conditions: (1) compliance with the Number Pool Administrator and
Order No. 30425 mandating number resource utilization forecast (NRUF) reporting; (2)
contribution to the Idaho Universal Service Fund, Idaho Telecommunications Relay System
(TRS), Idaho Telephone Assistance Program (ITSAP) and any future reporting requirements
deemed appropriate for competitive telecommunication providers; (3) filing a final and complete
price list with the Commission containing all of its rates, terms and conditions; and (4) an
agreement from the Company to relinquish its certificate and any telephone numbers if, within
DECISION MEMORANDUM 3
one year of the issuance of a CPCN, the Company is not offering local exchange
telecommunications services in Idaho. Id. at 3.
COMMISSION DECISION
Does the Commission wish to approve ALEC Telecom, Inc.’s Application for a
Certificate of Public Convenience and Necessity to provide local exchange telecommunications
services within the state of Idaho?

M:ALE-T-09-01_np2