gnrt0033.wsdc.doc

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283

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 360NETWORKS (USA) INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
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CASE NO. GNR-T-00-33

COMMENTS OF THE
COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, in response to Order No. 28727, the Notice of Application and Notice of Modified Procedure in Case No. GNR-T-00-33 issued on May 14, 2001, and submits the following comments.

BACKGROUND
On September 28, 2000, 360networks (USA), inc. (360networks), formerly known as Worldwide Fiber Networks, Inc. filed an Application for a Certificate of Public Convenience and Necessity (CPCN) in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. 360networks is seeking authorization to provide resold and facilities-based local exchange services in the service areas of Qwest and Verizon within the state of Idaho. Specifically, the Company's Application and example tariff states its intention to provide all forms of intrastate local exchange services and interexchange services to both business and residential customers. 360networks states that it will initially provide service through resale agreements with incumbent local exchange carriers. If market conditions allow, 360networks may build its own facilities. Some of these services include local dial tone for both business and residences at flat rates, 1+ outbound long distance service, high-speed data services, and some feature services such as call forwarding and caller I.D.
360networks is a Nevada corporation with headquarters in Lakewood, Colorado. The Company obtained a Certificate of Authority from Idaho's Secretary of State on August 7, 2000. 360networks does not maintain an office in Idaho but does have a registered agent in the state.

DISCUSSION
Staff has reviewed the Application submitted by 360networks and believes the Company understands and agrees to comply with the Commissions Rules and requirements. Staff also reviewed the December 31, 1999 financials submitted by 360networks (Nasdaq: TSIX) and researched more recent financial information on the Company. 360networks and its affiliates specialize in the construction of high-speed fiber optic communications networks. The Company is registered in several states and has recently been granted authority to construct and operate a telecom network in Japan. In May 2000, the Company applied for a CPCN with the Commission but later withdrew that Application because, at that time, the Company did not propose to offer services that would require certification in Idaho. Case No. GNR-T-00-14, Order No. 28688.
The Company does not propose to require advanced deposits from its customers. However, based on the financials presented, an estimated number of potential customers, and the lack of operating history in Idaho, Staff recommends that the Company post a $25,000 bond. The bond should remain on file for the first year that 360networks serves customers in Idaho.
The Company intends to operate in the same Idaho areas as Qwest and Verizon and has provided a copy of that service area map. 360networks has not yet obtained an interconnection agreement in Idaho

STAFF RECOMMENDATION
Based on Staff's review of 360networks, Inc.'s Application, Staff believes the Company's filing satisfies all the requirements of the Commissions Rules and Procedural Order No. 26665. Staff recommends approval of the Application for Certificate of Public Convenience and Necessity contingent upon the Company's posting of a $25,000 bond.

Respectfully submitted this day of June 2001.

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Weldon B. Stutzman
Deputy Attorney General

Technical Staff: Doug Cooley

WS:DC:uumisc/comments/gnrt0033.wsdc

STAFF COMMENTS 3 JUNE 4, 2001