20130411final_order_no_32789.pdf

Office of the Secretary
Service Date
April 11,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FATBEAM,LLC FOR AN INVESTMENT )CASE NO.FZ4-T-13-O1
TAX CREDIT FOR INSTALLING )
QUALIFYING BROADBAND EQUIPMENT )ORDER NO.32789
_________________________________________________________________________________
)
On March 28,2013,the Commission received an Application from Fatbeam,LLC
(“Fatbeam”or “Company”)requesting approval of a broadband tax credit pursuant to
Commission Order No.28784 and Idaho Code §63-30291 for the 2012 calendar year.
THE APPLICATION
In its Application,Fatbeam states that it has installed broadband equipment in
Kootenai County.Fatbeam’s customers include the City of Coeur d’Alene,Intermax Networks,
Dave Smith Motors,tw telecom,and Mammoth Networks (Idaho Transportation Department).
The Company’s broadband services include Ethernet or dark fiber access with transmission rates
of up to 2 Gbps.Fatbeam states that 100%of its customers have access to its broadband
services.The Company reports an investment of approximately $1,422,726 in qualifying
broadband equipment during the 2012 calendar year.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Fatbeam and
found that the equipment identified meets the statutory criteria outlined in Idaho Code §63-
30291(3)(b).Staff determined that Fatbeam’s broadband equipment 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 subscriber.Idaho Code §63-30291(3)(b).Staff also determined that Fatbeam 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 §63-30291(3)(b)(i).Therefore,Staff
recommended that the Commission issue an Order approving the Application and that the
approving Order,along with a copy of Fatbeam’s Application,be forwarded to the Idaho State
Tax Commission.
ORDER NO.32789 1
COMMISSION FINDINGS
In order to be eligible to obtain the tax credit,the taxpayer must first obtain an Order
from the Commission “confirming that the installed equipment is qualified broadband
equipment.”Idaho Code §63-30291(4).‘In 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),
Based upon our review of the Application and the recommendations of the
Commission Staff,we find that Fatbeam’s Application requesting a qualified broadband
equipment Order should be granted.Fatbeam has adequately demonstrated that the equipment
identified in its Application qualifies as broadband equipment subject to the tax credit.We also
find that Fatbeam is a telecommunications carrier and,as presently configured,the installed
equipment is an integral part of the Company’s broadband network and that it 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
Fatbeam’s Application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Fatbeam LLC’s Application seeking an Order
certifying that it has installed qualifying broadband equipment in Idaho during the 2012 calendar
year is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Fatbeam’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
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.Idaho Code §S 61-626,63-30291(4).
ORDER NO.32789
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2013.
ATTEST:
MACK A REDFORD,COMMISSIONER
J Li
MARSHA H.SMITH,COMMISSIONER
/4 1 4L”
Jtjmn D.Jew
Commission Secretary
O:FZ4-T-13-Olnp
PAUL KJ PRESIDENT
ORDER NO.32789 3