28751.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF TELERA COMMUNICATIONS, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
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CASE NO. GNR-T-00-35

ORDER NO. 28751
On October 18, 2000, Telera Communications, Inc. (“Telera”) filed an Application for a Certificate of Public Convenience and Necessity. On May 11, 2001, the Commission issued a Notice of Application and Notice of Modified Procedure that required all written comments to be filed by the parties within twenty-one (21) days of its issuance. Order No. 28728. The Commission Staff was the only party to file written comments and it recommended that the Application be approved.
Based on the comments, the law and the record, the Commission grants the Company’s Application. The Commission further finds that the Certificate should be issued subject to the posting of a bond.
THE APPLICATION
Telera Communications is a Delaware corporation with headquarters in Campbell, California. It is a wholly owned subsidiary of Telera, Inc., a privately-held technology corporation that specializes in combining telecommunications with application software to allow customers access to the Internet or e-mail from any telephone. Telera Communications obtained a Certificate of Authority from Idaho's Secretary of State on July 21, 2000. Although it does not maintain an office in Idaho, Telera does have a registered in-state agent.
Telera’s Application requests authorization to provide resold local exchange services throughout the State of Idaho within the service areas currently served by incumbent local exchange carriers (ILECs). However, Telera does not intend to operate in ILEC service areas that are eligible for a small or rural carrier exemption pursuant to Section 251 of the federal Telecommunications Act of 1996. Its Application and sample tariff state Telera’s intention to provide specific forms of intrastate local exchange services and interexchange services targeted primarily to business customers.
Telera indicates that it will initially provide service through resale agreements with Qwest and Verizon. If market conditions allow, Telera may build its own facilities. Some of the resale services Telera intends to provide are: local dial tone for businesses at flat rates, 1+ outbound long distance service, calling cards, directory assistance, high-speed data services, and feature services such as call forwarding and Caller ID. Finally, Telera contends that it has the necessary technical and financial ability to provide service in Idaho and has stated its intent to comply with Idaho rules and laws.
STAFF RECOMMENDATION
Based on its review of Telera’s Application, Staff found that the Company's filing satisfied all the requirements of the Commission’s Rules and Procedural Order No. 26665. Staff recommends that the Company post a $25,000 bond payable to the Idaho Public Utilities Commission. Based on the financial information presented, an estimated number of potential customers, and its lack of operating history in Idaho, Staff believes this bond will help protect customers until Telera establishes a service track record. Staff also recommends that this bond remain on file for Telera's first year of service in Idaho.
COMMISSION FINDINGS
Based on the comments, the law and the record, the Commission grants the Application. The Commission further finds that the Certificate should be issued subject to Telera providing evidence of establishment of a $25,000 bond.
O R D E R
IT IS HEREBY ORDERED that Telera Communications, Inc. is granted a Certificate of Public Convenience and Necessity to provide basic local exchange services subject to the posting of a $25,000 bond.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this case 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 or in interlocutory Orders previously issued in this case. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of June 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 28751 1

Office of the Secretary
Service Date
June 19, 2001