20030721Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:JULY 18, 2003
RE:IN THE MATTER OF THE APPLICATION OF COVISTA, INc. FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE
LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
CASE NO. GNR-03-19.
On May 19, 2003 , Covista, Inc. (Covista, Company) filed an Application for a Certificate
of Public Convenience and Necessity to provide facilities-based and resold local exchange services
within the State ofldaho. Covista subsequently amended the Application on June 12 2003. The
Company initially intends to provide resold local exchange services and local services to business
customers utilizing the UNE-P platform. In the Notice of Application and Modified Procedure
issued June 20, 2003 , the Commission solicited comments regarding Covista s Application. Order
No. 29269. No comments were received other than those submitted by Commission Staff.
THE APPLICATION
Covista, Inc. requested authority to operate as a competitive local exchange provider
offering resold local exchange services and local services utilizing the UNE-P platform throughout
the Idaho service areas that will coincide with the incumbent local exchange carrier s (ILECs) local
calling areas. Covista intends to provide all forms oflocal exchange telecommunications services
including: 1) local exchange services for business and residential customers; 2) switched local
exchange services such as flat-rated, measure-rated, and vertical services; 3) non-switched local
services (e., private line); 4) Centrex and/or Centrex-like services; and 5) digital subscriber line
ISDN, and other high capacity line services. However, Covista stated that it does not intend to
DECISION MEMORANDUM
service areas currently served by any local exchange carriers (LECs) that are eligible for a small or
rural carrier exemption pursuant to Section 251 of the federal Telecom Act of 1996.
Covista s Application stated that it would not require advance payments or deposits.
Therefore, it did not request an escrow account. Covista also indicated that it reviewed the laws and
regulations ofthis Commission governing local exchange telecommunications services in Idaho and
will provide service in accordance with all laws, rules and regulations to the extent they are not
preempted by the federal Act.
STAFF COMMENTS
Covista, Inc. is currently incorporated in the State of New J erseywith its primary place of
business in Chattanooga, Tennessee. In 2000 the Company obtained an Amended Certificate of
Authority to transact business as a foreign corporation from Idaho s Secretary of State and has a
registered in-state agent. Although it intends to resell local exchange services, Staff noted that the
Company has not yet obtained an interconnection agreement in Idaho.
Covista, Inc. has been approved to provide telecommunication services in other states and
is listed on the NASDAQ under CYST. Based upon its review of the Company s Form 1 O-K as well
as recent Income Statements, Cash Flow Statements and Balance Sheets, Staffbelieves the Company
is financially sound. Staff also noted that its Consumer Division found that there have been no
complaints against Covista, Inc. in the past.
Staff believes the Company understands and agrees to comply with the Commission
Rules and requirements. Based on its review of Covista' s Application , Staff found the Company
filing satisfied all the requirements of the Commission s Rules and Procedural Order No. 26665.
Therefore, Staff recommended approval ofthe Application for Certificate of Public Convenience and
Necessity.
COMMISSION DECISION
Does the Commission wish to approve Covista s Application for a Certificate of Public
Convenience and Necessity?
Lisa N dstrom
M: GNRTO319 .
DECISION MEMORANDUM