The URL can be used to link to this page

Home My WebLink About20070503Objection to ITA's motion for a staff investigation.pdfDONALD L. HOWELL, II DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION 472 W. WASHINGTON STREET (83702-5983) PO BOX 83720 BOISE, IDAHO 83720-0074 (208)334-0312 IDAHO BAR NO. 3366 " ' C: tc1-' i \" . , : i , \' '" ,.~., , . ,', i::). ::": ll; l Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE PETITION OF EDGE) WIRELESS, LLC FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER UNDER 47 U.C. ~ 214(e)(2) CASE NO. EDG-O7- ST AFF OBJECTION TO IT A' MOTION FOR A STAFF INVESTIGATION COMES NOW the Staff of the Idaho Public Utilities Commission by and through its Attorney of Record Donald L. Howell II, Deputy Attorney General, and files this objection to the Idaho Telephone Association s Motion for a Staff Investigation. BACKGROUND In Order No. 30286 issued March 28 2007, the Commission directed ITA and Edge Wireless to exchange information via discovery and allow ITA to review Edge s two-year build- out plan after executing a confidentiality agreement. The Order also directed Edge and IT A to inform the Commission no later than April 25 whether a hearing is necessary or if Edge eligible telecommunications carrier (ETC) Application may continue to be considered under Modified Procedure. Order No. 30286 at In response to the Commission s Order, ITA filed a "Motion for a Staff Investigation." Although IT A did not request an evidentiary hearing in its Motion, it did request that "the Commission direct its Staff to conduct further investigations and issue a report to the Commission and Parties. . . ." ITA Motion at 2. ITA insists there were two discrepancies with Edge s ETC Application. First, IT A alleges that Edge does not or will not serve all the wire centers in those telephone service areas in which it is seeking ETC designation. Id. at 3. Without divulging confidential information, IT A asserts that Edge does not have facilities in STAFF'S OBJECTION TO ITA' MOTION FOR A STAFF INVESTIGATION certain wire centers nor does Edge s two-year build-out plan reveal that these wire centers are scheduled for facilities in the next two years. Id. at p. 4 (confidential). On May 1 , 2007, Edge filed an errata correction to its Application to remove the Stanley wire center from its proposed ETC area." Edge Errata at 1. Edge acknowledges that it inadvertently included the Stanley wire center in its proposed ETC area allegedly served by rural incumbent Custer Telephone. Because the Stanley wire center is in fact in Midvale Telephone study area, including the Stanley wire center in Edge s ETC area "would require the Commission to redefine the Midvale study area to the wire center level." This was not the intent of Edge. Errata at 2. Consequently, Edge withdrew the Stanley wire center from its proposed ETC service area. Second, IT A requests that the Commission direct its Staff to conduct an independent investigation to ensure that Edge s ETC Application does not result in "cream skimming.! ITA requested that the Staff determine: (1) If Edge in fact lacks facilities and the ability to provide service in the wire centers listed (in its initial Application), (2) Whether Edge is serving only the most profitable and least cost areas of those wire centers where it is serving,only a portion ofthe area, and (3) Whether Edge s claimed network coverage is accurate. IT A Motion at 6. IT A requested that the Staff issue a written report examining the three issues set out above. STAFF OBJECTION Staff objects to the Motion for two reasons.First, Staff insists that IT A has misconstrued the standard for granting ETC status.An ETC applicant is not required to demonstrate a pre-existing ability to serve an entire service area nor even an entire wire center before being granted an ETC designation. Rather, an ETC Applicant must demonstrate a commitment to fulfill all reasonable requests for service within the proposed service area. Staff believes that Edge satisfied this requirement when the Company stated its "commitment to serve I The Commission defines rural cream skimming as occurring "when competitors seek to serve only the low-cost high revenue customers in a rural telephone company s study area. This is a concern because Universal Service support is calculated based on a study area-wide average of a rural telephone company that serves customers in both high cost and low cost areas throughout its study area." Order No. 29541 at 16 (emphasis original). STAFF'S OBJECTION TO ITA' MOTION FOR A STAFF INVESTIGATION requesting customers." Application at 14. As noted in Staffs initial comments, we believe the Company avoids cream skimming by its commitment to serve entire wire centers. Staff Comments at 7. Second, Staff does not believe it is a prudent use of Staff s time to conduct an investigation into Edge s "Network Coverage." ETCs must file annual reports that include: (1) a two-year Network Improvement Plan and Progress Report; and (2) UnfulfiiIed Service Requests. These reports are used to determine how well an ETC company is performing based upon stated commitments in its ETC application and whether it will be approved for recertification by the Commission. For these reasons, Staff believes ITA's request for a staff investigation is unwarranted. PRA YER Based upon the reasons set out above, Staff respectfully requests that ITA's Motion be denied and that this proceeding be processed under Modified Procedure. Respectfully submitted this 3~ day of May 2007. Deputy Attorney General blsfN :EDG-T -07-0 I - Objection STAFF'S OBJECTION TO ITA' MOTION FORA STAFF INVESTIGATION CERTIFICATE OF SERVICE HEREBY CERTIFY THAT I HAVE THIS 3RD DAY OF MAY 2007 SERVED THE FOREGOING STAFF OBJECTION TO ITA'S MOTION FOR A STAFF INVESTIGATION, IN CASE NO. EDG-07-, BY MAILING A COpy THEREOF POSTAGE PREP AID , TO THE FOLLOWING: MOLL Y O'LEARY RICHARDSON & O'LEARY PLLC PO BOX 7218 BOISE ID 83707 MARK P TRINCHERO DAVIS WRIGHT TREMAINE LLP 1300 SW 5TH AVE SUITE 2300 PORTLAND OR 97201 CONLEY E. WARD MICHAEL C. CREAMER GIVENS PURSLEY LLP 601 W. BANNOCK STREET PO BOX 2720 BOISE, ID 83701-2720 MOLL Y STECKEL EXECUTIVE DIRECTOR IDAHO TELEPHONE ASSOCIATION PO BOX 1638 BOISE, IDAHO 83701-1638 DEAN J. MILLER MCDEVITT & MILLER LLP PO BOX 2564 BOISE, IDAHO 83701 NATHAN GLAZIER REGIONAL MANAGER, STATE AFFAIRS ALL TEL COMMUNICATIONS , INC 4805 THISTLE LANDING DR PHOENIX, AZ 85044 i~~ SECRET AR Y CERTIFICATE OF SERVICE