20041230Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:DECEMBER 27, 2004
SUBJECT:APPLICATION OF COVAD COMMUNICATIONS COMPANY FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, CASE
NO. CVD-04-
On October 19, 2004, Covad Communications Company filed an Application for a
Certificate of Public Convenience and Necessity to provide basic resold and facilities-based local
exchange services to both residential and business customers throughout Idaho. In the Notice of
Application and Modified Procedure issued December 1 , 2004, the Commission sought
comments regarding Covad's Application. Order No. 29647. No comments were received other
than those submitted by Commission Staff.
THE APPLICATION
The Application requests authority for the Company to provide basic resold and
facilities-based local exchange services to both residential and business customers throughout
Idaho in all exchanges that are not exempt from competition. Should its Application be
approved, Covad plans to commence offering service immediately upon the establishment of the
appropriate and necessary network arrangements.
Covad is a California corporation authorized by the Idaho Secretary of State to
transact business within the State of Idaho. Covad Communications Company is a wholly owned
subsidiary of its parent corporation, Covad Communications Group, Inc., a telecommunications
services business. The Application states that the parent company is a leading national
broadband servIce provider of high-speed Internet and network access utilizing Digital
Subscriber Line (DSL) technology, covering more than 45 million homes and businesses
throughout the contiguous United States and reaching approximately 45 percent of all U.
DECISION MEMORANDUM
homes and businesses. Covad plans to provide telecommunications services to residential and
business customers in rural and urban areas throughout the State of Idaho.
STAFF COMMENTS
In its evaluation of the Company s Application, Staff determined that Covad is
incorporated in the State of California and headquartered in San Jose, California.Covad
Communications Company is a wholly owned subsidiary of its parent corporation Covad
Communications Group, Inc., a telecommunications services business. Covad's sister company,
DIECA Communications, Inc. is a certified telecommunications service provider authorized to
operate in several states.
Covad obtained a. Certificate of Authority to transact business as a foreign
corporation from the Idaho Secretary of State on July 12, 2004. The Company has provided
financial sheets for quarters ending December 31 , 2002 and 2003 and the appropriate contact
information for its registered agent for service of process within Idaho.
The services the Company intends to offer will be an adjunct to the long distance
services that the Company has filed and requested authority to provide statewide. Covad plans to
commence offering services immediately upon the establishment of the appropriate and
necessary network arrangements.On November 1999, the Commission approved and
Interconnection Agreement between Qwest Corporation and Covad.
Staff has reviewed the Application submitted by Covad and believes the Company
understands and agrees to comply with the Commission rules and requirements. Based on this
review, the Company s filing fulfils the requirements of the Commission Rules and Procedural
Order No. 26665. The Staff believes that the Company possesses the requisite financial
managerial and technical qualifications necessary to operate as provider of
telecommunications services. Therefore, the Staff recommends approval of the Application for a
Certificate of Public Convenience and Necessity.
COMMISSION DECISION
Does the Commission with to approve Covad Communications Company
Application for a Certificate of Public Convenience and N
DECISION MEMORANDUM