20030911Comments.pdf

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DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3366
2003 S~? 10 PH l,: li6
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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
IDAHO BIG SKY TELECOM FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO PROVIDE LOCAL
EXCHANGE TELECOMMUNICATIONS SERVICES.
CASE NO. GNR-O3-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attorney of record, Donald L. Howell, II, Deputy Attorney General, and submits the following
comments in response to the Notice of Application and Notice of Modified Procedure in Order
No. 29319 issued on August 20 2003.
THE APPLICATION
On April 25 , 2003, Idaho Big Sky Telecom (IBST), a partnership, filed an Application for
a Certificate of Public Convenience and Necessity to provide local, long-distance, cellular and
Internet services within the State ofIdaho. Idaho Big Sky Telecom is the assumed name for the
Idaho operation of Big Sky Telecom, which is located in Hallandale, Florida and operates as a
General Partnership. IBST indicates in its Application that it will provide "local, long distance
cellular and Internet services, to both businesses and households." It does not anticipate
STAFF COMMENTS SEPTEMBER 10, 2003
constructing any facilities in Idaho, and will primarily operate via resale of the services of the
underlying local exchange company. It has applied for a certificate to provide service throughout
the state, but has indicated it will initially limit its operations to the service area of Qwest, and will
not expand into the service area of the independent rural telephone companies until such areas are
opened to competition by action of the Commission.
DISCUSSION
Staff has reviewed the information provided by IBST in its Application and believes it
minimally 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. This procedural Order
sets out the necessary information to be included with an application for a certificate.
The Application includes an un-audited combined balance sheet for Big Sky Partnership
and Idaho Big Sky Partnership, as well as a statement of revenues and expenses for the first three
months of2003. The balance sheet is primarily comprised of the assets claimed by the partners.
The Company reported no income on the statement of revenues and expenses.
The Application did not identify any relevant telecommunications industry experience of
the Company officials.
Staff notes that this is not the only telecommunications carrier with the words "Big Sky" in
its name to seek to provide telecommunications services in Idaho. Big Sky Telecom, Inc., from
Emmett, has an existing certificate to provide service, primarily in southwestern Idaho. Big Sky
Telecom filed comments opposing Idaho Big Sky Telecom s Application because of the confusion
that may arise if another firm with "Big Sky" in its name was allowed to operate in Idaho. The
Secretary of State s Office no longer operates as the "gatekeeper" of similar business names.
Registering an "assumed business name" as IBST has done does not authorize business
operations. Use of a similar business name may be viewed as an unfair business practice if the
similarity in names causes customer confusion.
RECOMMENDATION
As Staff indicated, the Company s Application included all the information required by the
Commission for a certificate. However, IBST's Application fails to identify sufficient
telecommunications experience to demonstrate they can operate competently.
ST AFF COMMENTS SEPTEMBER 10, 2003
Staff does not believe the Application demonstrates that this company has the financial
ability to adequately provide the services it has indicated it intends to provide. It's financial
information was not audited, and did not show any previous telecommunications sales revenues.
Although the Company will operate via resale of the services of the underlying carrier, the costs of
simply acquiring customers are considerable. Even if all the available capital identified in the
Application were dedicated to Idaho (and the Application does not indicate such), Staff does not
believe it is sufficient to support the proposed operation through to profitability. Therefore, Staff
does not believe the approval of this Application would be in the public interest.
On September 10 2003 , the Company president, Nick Cunio , contacted Staff and indicated
it intended to submit additional information to address Staffs concerns. Staff may seek an
opportunity to comment on any additional information the Company may file.
Respectfully submitted this day of September 2003.
Deputy Attorney General
Technical Staff: Wayne Hart
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STAFF COMMENTS SEPTEMBER 10, 2003
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 10TH DAY OF SEPTEMBER ,2003
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. GNR-03-, BY MAILING A COpy THEREOF, POSTAGE PREPAID
TO THE FOLLOWING:
CARMINE RUSSO
PARTNER
IDAHO BIG SKY TELECOM
310 NE 1 ST AVE
HALLANDALE, FL 33009
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CERTIFICATE OF SERVICE