20020314_jh.doc

DECISION MEMORANDUM

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

FROM: JOHN R. HAMMOND

DATE: MARCH 14, 2002

RE: IN THE MATTER OF THE APPLICATION OF NTERA, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE SERVICES IN IDAHO. CASE NO. GNR-T-01-13.

On July 27, 2001, NTERA, Inc. filed an Application for a Certificate of Public Convenience and Necessity to provide resold and facilities based local exchange services within the State of Idaho. On January 3, 2002, the Commission issued a Notice of Application and Notice of Modified Procedure. Order No. 28923. In response to this Order the Commission Staff submitted written comments and was the only party to do so.
BACKGROUND
As stated above, in compliance with Commission Rules of Procedure, NTERA, Inc. filed an Application for a Certificate of Public Convenience and Necessity to provide resold and facilities-based local exchange services throughout Idaho in Qwest’s and Verizon’s service territories and has provided a copy of that service area map. NTERA also 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. NTERA also intends to provide all forms of interexchange telecommunications services. NTERA is incorporated in the State of Florida and represents that it is in good standing under the laws of that State. NTERA is a wholly owned subsidiary of Radiant Holding, Inc. The Company obtained a Certificate of Authority from Idaho's Secretary of State on July 18, 2001. NTERA does not maintain an office in Idaho but does have a registered agent in the state.
NTERA states that it will initially provide service through resale agreements with incumbent local exchange carriers. If market conditions allow, NTERA may build its own facilities. Some of these services include local dial tone for both business and residential at flat rates, 1+ outbound long distance service, high-speed data services, and some feature services such as call forwarding and Caller ID.
NTERA advises that the public interest would be served by the issuance of this Certificate, first, by maintaining and enhancing competition in the local exchange marketplace in Idaho and second, by increasing customer choice.
STAFF RECOMMENDATION
Staff has reviewed the Application submitted by NTERA. Staff has also reviewed the financials submitted by NTERA. The Company also has been granted authority to provide services in several states.
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 recommended that the Company post a $25,000 bond should the Commission approve its Application. The bond should remain on file for the first year that NTERA serves customers in Idaho.
Based on its review of NTERA, Inc.'s Application, Staff found that the Company's filing satisfies all the requirements of the Commission’s Rules and Procedural Order No. 26665. Thus, Staff recommended approval of the Application for Certificate of Public Convenience and Necessity contingent upon the Company's posting of a $25,000 bond.
COMMISSION DECISION
Does the Commission wish to approve NTERA’s Application for a Certificate of Public Convenience and Necessity?
If the Commission approves NTERA’s Application does it wish to require as a condition of that approval that the Company post a $25,000 bond?

__________________________________
John R. Hammond
Deputy Attorney General

Technical Staff: Doug Cooley

M:GNRT0113_jh

DECISION MEMORANDUM 1