20010521Comments.doc

LISA D. NORDSTROM
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5733

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 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

COMMENTS OF THE COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Lisa D. Nordstrom, Deputy Attorney General, and in response to Order No. 28728 issued on May 11, 2001, submits the following comments.
BACKGROUND
On August October 18, 2000, Telera Communications, Inc. ("Telera") filed an Application for a Certificate of Public Convenience and Necessity in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Telera is seeking 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. Specifically, Telera's Application and sample tariff state its 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 I.D.
Telera is a Delaware corporation with headquarters in Campbell, California. Telera 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 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.
DISCUSSION
Staff has reviewed the Application submitted by Telera and believes the Company understands and agrees to comply with the Commissions Rules and requirements.
Staff also reviewed the financial information submitted by Telera. The Company does not propose to require advanced deposits from its customers. However, based on the financial information presented, an estimated number of potential customers, and its lack of operating history in Idaho, Staff recommends that the Company post a $25,000 bond payable to the Idaho Public Utilities Commission. This bond will help protect customers until Telera establishes a service track record and should remain on file for Telera's first year of service in Idaho.
The Company intends to operate in the same Idaho areas as the ILECs and provided a map showing the Idaho service territories of Qwest and Verizon. However, Telera Communications has not yet obtained any interconnection agreements in Idaho.
STAFF RECOMMENDATION
Based on Staffs review of Telera Communications, Inc.'s Application, Staff believes that the Company's filing has satisfied all the requirements of the Commissions Rules and Procedural Order No. 26665. Therefore, Staff recommends approval of the Application for Certificate of Public Convenience and Necessity contingent upon the Company's posting of a $25,000 bond.

Respectively submitted this day of May 2001.

_______________________________
Lisa D. Nordstrom
Deputy Attorney General

Technical Staff: Doug Cooley

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STAFF COMMENTS 3 MAY 15, 2001