HomeMy WebLinkAbout20000526Decision Memo.doc DECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
LOUANN WESTERFIELD
RON LAW
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
JOE CUSICK
WAYNE HART
WORKING FILE
FROM: DON HOWELL
DATE: MAY 26, 2000
RE: APPLICATION OF CONVERGENT COMMUNICATIONS SERVICES, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY;
CASE NO. CVT-T-99-1
On November 8, 1999, Convergent Communications Services, Inc. filed an Application for a Certificate of Public Convenience and Necessity in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Convergent is requesting authorization to provide local exchange telecommunications services within the state of Idaho. On April 28, 2000, the Commission issued a Notice of Application and Modified Procedure. The Commission Staff was the only person to file written comments and it supported the issuance of the certificate.
BACKGROUND
Convergent is incorporated in Colorado and is a relatively new corporation, first capitalized in 1996. It is a wholly-owned subsidiary of Convergent Communications, Inc., which is a publicly held corporation listed on the NASDAQ stock exchange. Convergent stated that it provided service in 16 cities around the nation and expected to add 34 additional cities to its nationwide network in 2000. The Company seeks to provide resold and eventually facilities-based local exchange service to customers currently being served by GTE and U S WEST.
STAFF COMMENTS
Staff reviewed Convergent’s Application and concluded Convergent understands the Commission’s rules and requirements. Convergent included with its Application a prospectus for the Company that included financial data for 1997, 1998 and the first quarter of 1999. The Company has not yet reached profitability but is experiencing significant increases in revenues. Convergent recently arranged a financing package that provided an additional $175 million to fund its continued expansion and has not had any difficulty raising capital. Staff believes that the Company has access to sufficient capital resources to provide the proposed services. In addition, Convergent stated that it will comply with all Commission Rules.
RECOMMENDATION
Based on Staff’s review of Convergent’s Application, Staff concluded that Convergent meets the requirements of the Commission’s Rules and recommended the Commission approve the Application.
Commission Decision:
Should Convergent’s Application for Certificate of Public Convenience and Necessity be approved?
Donald L. Howell, II
Staff: Wayne Hart
M:cvtt991_dh
DECISION MEMORANDUM 1