20110624final_order_no_32274.pdf

Office ofthe Secretary
Service Date
June 24,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FILER MUTUAL TELEPHONE )CASE NOS.FIL-T-11-O1
COMPANY FOR AN INVESTMENT TAX )
CREDIT FOR INSTALLING QUALIFYING )
BROADBAND EQUIPMENT )ORDER NO.32274
__________________________________________________________________________________
)
On June 1,2011,Filer Mutual Telephone Company (“Filer”)applied to the
Commission for an Order confirming that equipment that Filer states it installed in 2007,2008,
2009,and 2010 is “qualified broadband equipment”under Idaho Code §63-30291 (Income tax
credit for investment in broadband equipment).The Commission grants Filer’s Application and
finds that the referenced equipment is “qualified broadband equipment”as defined.
FILER’S APPLICATION
Filer states that it installed equipment associated with Asymmetric Digital Subscriber
Line (ADSL),High-bit-rate Digital Subscriber Line (HDSL),Wireless Broadband (WBB)and
fiber optic (FTTX)services with transmission rates of 512 Kbps to I Gbps.Filer states that in the
years:
•2007,it added 443 new broadband customers for a total of 1306 and
invested approximately $1 .1 million;
•2008,it added 349 new broadband customers for a total of 1655 and
invested approximately $272,600;
•2009,it added 189 new broadband customers for a total of 1844 and
invested approximately $901,000;and
•2010,it added 262 new customers for a total of 2106 and invested
approximately $1.5 million.Filer states that for each year 99%of its
customers have had access to broadband services.
STAFF COMMENTS
Staff reviewed Filer’s list of proposed broadband equipment and determined that the
equipment meets the statutory criteria that would make it eligible for the tax credit.Under the
statute,“qualified broadband equipment”is equipment that “is capable of transmitting signals at
a rate of at least 200,000 bits per second (bps)to a subscriber and at least 125,000 bps from a
ORDER NO.32274
subscriber....“Idaho Code §63-30291(3)(b).Further,“[i]n the case of a telecommunications
carrier,such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).Here.Staff
determined that Filer’s equipment can transmit signals at a rate of at least 200,000 bps to a
subscriber and at least 125,000 bps from a subscriber.Idaho (ode §63-30291(3)(b).Staff also
found that Filer is a telecommunications carrier and its equipment is “necessary to the provision
of broadband service and an integral part of a broadband network.”Idaho Code §63-
3029l(3(b)(i).Accordingly.Staff recommended that the Commission issue an Order confirming
Filer’s listed equipment is “qualified broadband equipment,”and that the Commission forward
the approving Order,along with a copy of Filer’s Application,to the Idaho State Tax
Commission.
CO1 MISSION FINDINGS
Having reviewed Filer’s Application and the comments of Staft the Commission
grants Filer’s Application for a qualifying broadband equipment Order.Filer has demonstrated
that the equipment identified in its Application is “qualified broadband equipment”subject to the
tax credit.Filer also has demonstrated that it is a telecommunications carrier and that,as
presently configured,the listed equipment is an integral part of the Company s broadband
network and is necessary to facilitate the delivery of broadband Internet service to Idaho
customers.It is therefore appropriate for the Commission to issue this Order confirming that the
equipment identified in Filer’s Applications is “qualified broadband equipment.”
ORDER
IT IS HEREBY ORDERED that Filer Mutual Telephone Company’s Application for
an Order confirming that the equipment Filer installed in 2007,2008,2009,and 2010 is
“qualified broadband equipmenf’is granted.The Commission confirms that the listed
equipment is “qualified broadband equipment”under Idaho Code §63-30291.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Filer Mutual
Telephone Company’s Application be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)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.Within seven (7)days
ORDER NO.32274
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.Idaho Code §6 1-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
____
day of June,2011.
PAUL KJLL DER,PRESIDENT
XLaL /iA
MARSHA H.SMITH,COMMISSIONER
5D,CE
ATTEST:
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Jn D.JeweI1J
Commission Secretary
O:FIL-T-1 I-OIkk
ORDER NO.32274 3