20070914Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:NEIL PRICE
DATE:SEPTEMBER 10,2007
SUBJECT:APPLICATION OF ELTOPIA COMMUNICATIONS LLC FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; CASE
NO. ECL-07-
On June 6, 2007, Eltopia Communications LLC ("Eltopia ) filed an Application for a
Certificate of Public Convenience and Necessity to provide basic local telephone exchange service
throughout the State of Idaho pursuant to Commission Order No. 26665. Eltopia states that it has
adopted the terms of the Interconnection Agreement between Northwest Telephone, Inc. and Verizon
Northwest Inc. and that Verizon filed the Adoption Agreement in 2007. Application at 5.
THE APPLICATION
Eltopia is a Washington corporation and lists its principal place of business as Eltopia
Washington. Id. at 2. The Company is registered with the Idaho Secretary of State as a limited
liability company and lists Registered Agent Solutions, Inc., 5481 Kendall Street, Boise, Idaho, 83706
as its Idaho registered agent. Id.
Eltopia stated that it has provided wholesale communications services within the State of
Washington since 2006 and that the Company specializes in offering "a variety of services built on
TDM to IP conversion " including dial-up Internet, Fax over IP and Voice over IP, to regional Internet
service providers. Id. Initially, the Company intends to offer the same services in Idaho and later
expand to offer Voice over IP services to retail and business customers. Id.
Eltopia claims that its service territory within Idaho will initially include northern Idaho
including Boundary, Bonner, Kootenai, Benewah and Shoshone counties. Id. at 4. Its services will
coincide with that of Verizon Northwest Inc.s Coeur d'Alene tandem " with the exception of its
DECISION MEMORANDUM
Voice over IP services which "do not have a defined 'Service Territory' as they are largely interstate
services in nature.Id. Thus, the Company asserts that it cannot accurately state whom it will
compete with in regards to its Voice over IP services. Id.
ST AFF COMMENTS
Staff reviewed the information provided by Eltopia s Application and determined that it
satisfied the requirements outlined in Commission Rule of Procedure 111 , IDAP A 31.01.01.111 , and
Procedural Order No. 26665, setting forth the necessary information to be included with an application
for a certificate.
Staff states that Eltopia will offer telecommunications services using its own switch, and a
combination of its own facilities and those ofthe underlying carrier, Verizon. Staff also mentioned the
Company revealed that it will primarily provide high-speed data services and conversion to IP services
that do not require certification. However, Staff noted that because Eltopia s service has the capability
to provide both voice and data services over the same trunk, the Company is seeking a Certificate so
that it has the flexibility to configure its service according to its customer s specifications.
Staff declared that it is satisfied that the Company has the technical, managerial and
financial strength to provide the services identified in its Application and believes that the Company
will comply with all Commission rules, as it stated in its Application. The Company has provided an
illustrative tariff with its Application that demonstrates an understanding of tariff requirements and
processes. The Company will not require advance deposits by its customers and therefore did not
submit an executed copy of an escrow account.
Based upon the foregoing review, Staff recommends that the Commission approve
Eltopia s Application for a Certificate of Public Convenience and Necessity.
COMMISSION DECISION
Does the Commission wish to approve the Application of Eltopia Communications LLC
for a Certificate of Public Convenience and Necessity to provide basic local telephone exchange
service throughout the State of Idaho?
AlJ!
il Price
M:ECL-O7-np2
DECISION MEMORANDUM