2001518_ln.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER HANSEN
COMMISSIONER SMITH
JEAN JEWELL
RON LAW
LYNN ANDERSON
LOU ANN WESTERFIELD
TONYA CLARK
DON HOWELL
RANDY LOBB
JOE CUSICK
WAYNE HART
GENE FADNESS
WORKING FILE

FROM: LISA NORDSTROM

DATE: MAY 18, 2001

RE: IN THE MATTER OF THE APPLICATION OF SCC COMMUNICATIONS CORPORATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES. CASE NO. GNR-T-01-5.

On March 26, 2001, SCC Communications Corporation (“SCC”) filed an Application for a Certificate of Public Convenience and Necessity to provide local exchange service within the state of Idaho. In the Notice of Application and Modified Procedure (Order No. 28701) issued on April 13, 2001, the Commission solicited comments regarding SCC’s Application. No comments were received other than those submitted by Commission Staff.
THE APPLICATION
SCC, a publicly traded company headquartered in Boulder, Colorado, is a leading provider of 9-1-1 data management services to the telecommunications industry. The Application states SCC manages data records for almost 100 million telecommunications subscribers in 28 states and processes over 140,000 orders per day. SCC claims to be authorized to provide telecommunications service in 10 states, with applications pending in 17 states.
The Company intends to provide facilities-based and resold local exchange and intrastate, interexchange two-way voice and data telecommunication services in Idaho to incumbent and competitive local exchange providers, wireless providers, telematics service providers, residence and business customers, and to public safety agencies. SCC specifically requests authority to provide its 9-1-1 Safety Netsm service throughout Idaho, including the service areas of the small independent telephone companies. However, SCC does not intend to provide "dial tone local exchange service" or "traditional long distance toll services within or between the small independent telephone company exchange areas."
SCC’s Application affirms that it will comply with all applicable Commission rules. However, as the Company will utilize the facilities or services of the incumbent local exchange carrier to provide any local exchange connectivity and local access lines, it requests an exemption from the Commission's requirements to report and remit fees to the Universal Service or Telecommunications Relay Service funds.
STAFF COMMENTS
Staff comments indicate that they originally questioned whether SCC needed a Certificate to provide the services identified in its Application. The 9-1-1 services identified by SCC are "niche" products that are clearly not traditional dial tone basic local exchange service. However, a few of the products identified in the Application are specialized services that connect a customer more directly to the 9-1-1 answering point. These products could be interpreted as including "access lines to residential and small business customers with the associated transmission of two-way interactive switched voice communication within a local exchange calling area," and therefore fit within the definition of basic local exchange service found in Idaho Code § 62-603(1). After discussing this matter with representatives of SCC, Staff agreed with the Company's belief that a certificate may be required.
Staff notes that the Application includes an illustrative tariff that demonstrates an understanding of tariffing requirements and processes. The Company also has over 20 years experience in providing its services and Staff believes the Application demonstrates the technical expertise to provide the services identified by the Company.
Staff comments recommend that the Commission approve SCC’s request for a Certificate of Public Convenience and Necessity to provide the telecommunications services identified in its Application. However, Staff does not agree with the Company's request for waivers from the requirements to report and remit required fees to the Telecommunications Relay Services and Universal Service funds. Staff argues the fact that SCC will be leasing facilities from the incumbent local exchange carrier is not sufficient to warrant a waiver from these requirements. While Staff agrees that most of the products identified in the Company's Application will not result in required contributions to either of these funds, some of the products may. The Commission has provided the Administrators of both of these funds the flexibility to reduce reporting requirements to ease the administrative burden in appropriate cases. Staff recommends SCC be directed to the appropriate administrators and to follow the established procedures.

COMMISSION DECISION
1. Should SCC’s Application for a Certificate of Public Convenience and Necessity be approved?
2. If so, should SCC be granted a waiver from the TRS and USF requirements?

Lisa Nordstrom

Staff: Wayne Hart

M:GNRT015_ln

DECISION MEMORANDUM 3