28228.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF JATO OPERATING TWO CORP. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
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ORDER NO. 28228

On June 30, 1999, JATO Operating Two Corp. (JATO) filed an Application for a Certificate of Public Convenience and Necessity to provide facilities-based competitive local telecommunications services in the state of Idaho. The Application states that JATO intends to provide primarily high speed DSL data-based telecommunication services using the incumbent local exchange carrier’s unbundled network elements in conjunction with its own facilities collocated at the incumbent’s central office.
On October 13, 1999, the Commission issued a Notice of Application and Notice of Modified Procedure to process the Application. During the comment period, written comments were filed by the Commission Staff and the Idaho Telephone Association. In its comments, the Idaho Telephone Association noted that JATO has not made a bona fide request to ITA’s members for interconnection, services or network elements. ITA’s comments state that any authority issued to JATO should be subject to the suspension of ITA’s members’ obligations to interconnect and to provide access to network elements, as well as the other duties described in Section 251(c) of the 1996 Telecom Act. Staff recommended that JATO’s Application be approved, conditioned upon the posting of a bond by the Company. Staff noted that JATO is a start-up company and its own revenue projections are that it may not generate a positive cash flow for at least two years. Staff recommends that JATO provide a performance bond in the amount of $100,000 for a two-year period.
COMMISSION FINDINGS
Based on our review of the record, including the filed written comments and Staff’s recommendation, we find that the Application of JATO Operating Two Corp., complies with Procedural Order No. 26665 and the Commission’s Rules to obtain a Certificate of Public Convenience and Necessity. Because JATO is a new company with no financial history, we also find that JATO should provide a performance bond as recommended by Staff. We therefore approve JATO’s Application for a Certificate to provide local exchange telecommunications services within the areas of the state served by U S WEST and GTE Northwest Incorporated, subject to the posting of a $100,000 performance bond by the Company. The bond must be in place for two years unless removal is approved by the Commission prior to the expiration of the two-year period.

O R D E R
IT IS HEREBY ORDERED that JATO Operating Two Corp. is granted a Certificate of Public Convenience and Necessity to provide local telecommunications services within the areas of Idaho currently served by U S WEST and GTE Northwest Incorporated, subject to the posting of a $100,000 performance bond by the Company.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. 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 December 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

Myrna J. Walters
Commission Secretary

vld/O:GNR-T-99-10 _ws2

ORDER NO. 28228 1

Office of the Secretary
Service Date
December 17, 1999