28159.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF CHOCTAW COMMUNICATIONS, INC. DBA SMOKE SIGNAL COMMUNICATIONS FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE SERVICE AS A COMPETITIVE LOCAL CARRIER.
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ORDER NO. 28159

On June 21, 1999, Choctaw Communications, Inc. d.b.a. Smoke Signal Communications filed an Application for a Certificate of Public Convenience and Necessity in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Choctaw is requesting authorization to provide prepaid local exchange service to residential customers on a resale basis pursuant to Title 61 of Idaho Code within the U S WEST (north and south) and GTE service areas in Idaho. Pursuant to Title 62 of Idaho Code, Choctaw presently provides interexchange services throughout the state of Idaho.
In Order No. 28105 issued August 27, 1999, the Commission found that this matter could be processed under Modified Procedure and requested interested persons file written comments regarding the Application by September 17, 1999. Only Staff filed comments on September 17, 1999.
Based upon a review of the Application and the Staff’s comments, the Commission grants Choctaw’s Application.
BACKGROUND
Choctaw was incorporated in Texas on August 5, 1996, as a limited liability company under Texas law. On November 30, 1998, Choctaw was converted to a Texas business corporation under Texas law. On March 26, 1999, the Idaho Secretary of State issued a Certificate of Authority to Choctaw under the Idaho Business Corporation Act. VarTec Telecom, Inc., an MTS provider in Idaho, owns eighty-one percent (81%) of Choctaw’s common stock. Choctaw states in its Application that it has no management agreements with VarTec. According to the Idaho 1999 USF Report, VarTec reported more than eleven million MTS minutes in Idaho in 1998. While VarTec apparently paid its USF assessments, Staff learned that VarTec may be delinquent with its Idaho Telecommunication Relay Service (TRS) payments and may owe more than seven thousand dollars ($7,000). On September 16, 1999, the TRS administrator, Mr. Dunbar, contacted VarTec and requested payment.
Staff Comments
Staff found that the information provided by Choctaw in its Application and the additional material provided in support of its Application meets the minimum requirements for a Certificate of Public Convenience and Necessity established by Rule of Procedure 111, IDAPA 31.01.01.111, and Procedural Order No. 26665, issued November 7, 1996. Staff found that Choctaw demonstrated an understanding of tariffing requirements and processes.
COMMISSION FINDINGS
Based on the Commission’s review of the record and Staff’s comments, the Commission finds that Choctaw’s Application complies with Procedural Order No. 26665 and the Commission’s Rules to obtain a Certificate of Public Convenience and Necessity. The Commission further finds that those conditions recommended be imposed by the Staff are appropriate and in the public’s interest. The Commission therefore approves Choctaw’s Application for a Certificate to provide local exchange service in the areas served by U S WEST and GTE subject to those conditions.
O R D E R
IT IS HEREBY ORDERED that Choctaw Communications, Inc. d.b.a. Smoke Signal Communications is granted a Certificate of Public Convenience and Necessity to provide local telecommunications service only in the areas served by U S WEST and GTE.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this Case No. GNR-T-99-9 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. GNR-T-99-9. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code  61626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this day of September 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

O:gnrt999_.cc

ORDER NO. 28159 -1-

Office of the Secretary
Service Date
October 1, 1999