gnrt01.5Lnwh.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 SCC COMMUNICATIONS CORPORATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES. )
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CASE NO. GNR-T-01-5

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 the Notice of Application, Notice of Modified Procedure and Order No. 28701 issued on April 13, 2001, submits the following comments.
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. Its Application states that SCC is the leading provider of 911 data management services to incumbent local exchange carriers (“LECs”), competitive local exchange carriers (“CLECs”), integrated communications providers, and wireless carriers in the United States. Application at 4. SCC states that it intends to provide facilities-based and resold local exchange and intrastate, interexchange two-way voice and data telecommunication services in Idaho to LECs, CLECs, Wireless Providers, Telematics Service Providers, residence and business customers, and to public safety agencies. Application at 7.
STAFF FINDINGS
Staff has reviewed the information provided by SCC in its Application and believes it satisfies the requirements of the Commissions Rule of Procedure 111, IDAPA 31.01.01.111, and Procedural Order No. 26665 issued November 7, 1996, that sets out the necessary information to be included with an application for a certificate.
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 claimed to be authorized to provide telecommunications service in 10 states, with applications pending in 17 states. SCC's Application included copies of SCC's annual report, and SEC forms 10-K and
10-Q. SCC is a relatively mature company and Staff believes the Company has the financial capability to provide the services identified in the Application.
The Application included an illustrative tariff that demonstrates an understanding of tariffing requirements and processes. The Company also has over twenty years experience in providing its services and Staff believes the Application demonstrates the technical expertise to provide the services identified by the Company.
SCC requested authority to provide its 9-1-1 Safety Netsm service throughout Idaho, including the service areas of the small independent telephone companies. However, SCC indicated it did 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 specifically indicated in its Application 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 requested an exemption from the Commission's requirements to report and remit fees to the Universal Service Fund or TRS funds.
STAFF RECOMMENDATION
Staff originally questioned whether SCC required 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 concurs with the Company's belief that a certificate may be required.
This Application identifies a stable and experienced company that is seeking to expand to serve a market in which it is already a leader. Staff recommends the Commission approve the request of SCC for a Certificate of Public Convenience and Necessity to provide the telecommunications services identified in its Application throughout the State of Idaho.
However, Staff does not agree with the Company's request for waivers from the requirements to report and remit required fees to the TRS and USF funds. The simple fact that SCC will be leasing facilities from the incumbent LEC 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.

Respectively submitted this day of May 2001.

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Lisa D. Nordstrom
Deputy Attorney General

Technical Staff: Wayne Hart

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STAFF COMMENTS 3 MAY 4, 2001