20000605Order No 28389.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF CONVERGENT COMMUNICATIONS SERVICES, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY )
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CASE NO. CVT-T-99-1

ORDER NO. 28389

On November 8, 1999, Convergent Communications Services, Inc. filed an Application for a Certificate of Public Convenience and Necessity 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 requesting interested persons file written comments regarding the Application by May 19, 2000. Only the Commission Staff filed comments and it supported the issuance of the Certificate. Based upon our review of the Application and the Staff’s comments, the Commission grants Convergent’s Application.
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.
Convergent stated that it desires to initially provide resold local service, but may eventually use its own facilities to serve both residential and business customers. The Company requests authority to provide services to customers currently served by U S WEST Communications and GTE Northwest. Although Convergence seeks a Certificate to provide local exchange services throughout the state, it does not intend to serve areas already served by incumbent local exchange companies that qualify for a rural exemption pursuant to Section 251(f) of the federal Telecommunications Act.
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.
COMMISSION FINDINGS
Based on the Commission’s review of the record and Staff’s comments, the Commission finds that Convergent’s Application complies with the Commission’s Rules to obtain a Certificate of Public Convenience and Necessity. The Commission therefore approves Convergent’s Application for a Certificate to provide local exchange service within the state of Idaho.
O R D E R
IT IS HEREBY ORDERED that Convergent Communications Services, Inc. is granted a Certificate of Public Convenience and Necessity to provide local telecommunications service within the state of Idaho subject to the provisions of Section 251 (f) of the federal Telecommunications Act.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this Case No. CVT-T-99-1 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. CVT-T-99-1. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ( 61626 and 62-618.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of May 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

bls/O:cvtt991_dh2

ORDER NO. 28389 -1-

Office of the Secretary
Service Date
June 5, 2000