HomeMy WebLinkAbout19980916Comments.docWELDON STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0300
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF FIRSTEL, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
)
)
)
)
)
)
CASE NO. FTL T 98-1
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Weldon Stutzman, Deputy Attorney General, and submits the following comments for the Commissions consideration in Case No. FTL-T-98-1.
On May 27, 1998, FirsTel, Inc. applied for a Certificate of Public Convenience and Necessity to provide local service in U S WEST exchanges. FirsTel proposes to become a resale provider of local telecommunications services and exchange services to all eligible customers within the U S WEST service areas in the northern and southern LATAs. FirsTels primary niche market will be small businesses with an average of three lines and its secondary market will be residential customers with multiple services. Its targeted market will be mostly rural exchanges.
FirsTel is a wholly owned subsidiary of Advanced Communications Group. Advanced Com, through its subsidiaries, offers long distance, local, Internet access and cellular services
primarily in Kansas, Minnesota, Nebraska, North Dakota, South Dakota, Oklahoma and Texas and publishes yellow pages directories covering certain markets in Texas and Oklahoma. As of November 30, 1997, the Company provides telecommunication services to more than 35,000 businesses and more than 10,000 residential customers in small to mid-sized markets. The Company operates six digital tandem switches in Kansas, Oklahoma, South Dakota and Texas and owns a 49% interest in a company that owns or operates an approximately 880-mile fiber optic network.
FirsTel was founded in 1993 as a South Dakota corporation and operates a switch center in Sioux Falls that includes three linked Harris 2020 digital switches. As of September 30, 1997, FirsTel provided bundled telecom services for 7,500 customers in North Dakota, South Dakota, Nebraska, Iowa, Minnesota, Montana, Wyoming and Colorado. The Company has resold U S WEST local service to approximately 3,000 access lines in North Dakota and South Dakota. It has recently received authorization to provide local service in Nebraska, Minnesota, Iowa and Wyoming.
FirsTel plans to resell U S WEST products and services, perhaps providing packages of services for its customers. Additionally, the Company currently offers toll services under a separate tariff. It maintains a 24-hour customer service line and plans to have representatives in several cities in Idaho. The Company claims it has had very few complaints filed with commissions in the six states where it does business, and it has none at this time in Idaho.
FirsTels unaudited financial statements for 1996 and 1997 were reviewed by the Commissions audit staff. Staff reported that the balance sheets show a negative net worth at the end of the 1997 and the Company has made distributions in excess of its earnings. Additionally, Notes Payable to Stockholders was changed from long-term to short-term, which might have been in preparation of the Companys anticipated 1998 sale to Advanced Communication Group. FirsTels Application has included a signed copy of a $5,000 surety bond as is required by the Commissions Procedural Order No. 26665 when a company may require advance deposits.
FirsTel has completed all other requirements for filing an Application for a Certificate, and FirsTels consultant has cooperated with Staff in working out the few problems that existed in its illustrative tariff. FirsTel filed its corrected version of its illustrative tariff and requested that it become a final tariff with a requested effective date of October 1, 1998. The Commission has also received FirsTels and U S WESTs request to approve an interconnection agreement.
The agreement is being processed under modified procedure in Case No. USW-T-98-10, which has a comment period that is the same as in this case. The Company hopes to receive the Commissions approval of both of its applications so it can begin business in Idaho on October 1, 1998.
Staff recommends approval of this Application for a Certificate of Public Convenience and Necessity, including its tariffs filed with this Application.
Respectfully submitted this day of September 1998.
______________________________________
Weldon Stutzman
Deputy Attorney General
Technical Staff: Birdelle Brown
WS:BB:jo\i\umisc\comments\ftlt981.ws
STAFF COMMENTS 1 September 16, 1998