20130521final_order_no_32809.pdf

Office of the Secretary
Service Date
May21,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IONEX )
COMMUNICATIONS NORTH,INC.’S )CASE NO.INX-T-13-01
APPLICATION FOR A CERTIFICATE OF )
PUBLIC CONVENIENCE AND NECESSITY )
TO PROVIDE LOCAL EXCHANGE )ORDER NO.32809
TELECOMMUNICATIONS SERVICES )
__________________________________________________________________________________
)
On January 9,2013,lonex Communications North,Inc.dba Birch Communications
(the “Company”)applied to the Commission for a Certificate of Public Convenience and
Necessity (“CPCN”)authorizing the Company to provide resold local exchange and
interexchange telecommunications service to residential and business customers in Idaho.The
Company filed an Amended Application on April 9,2013,and an Amended Application Exhibit
E (proposed price list)on April 12,2013 (collectively,the “Application”).On April 24,2013,
the Commission issued a Notice of Application and Notice of Modified Procedure that solicited
public input on the Application and set a March 26,2013 comment deadline.See Order No.
32795.Commission Staff filed the only comments in the case and supported the Company’s
Application.
Having reviewed the record,we grant the Company’s Application for a CPCN as set
forth below.
THE APPLICATION
The Application states that the Company is a South Dakota corporation and is
authorized to do business in Idaho.It is headquartered in Kansas City,Missouri,and is a wholly
owned subsidiary of the Georgia corporation,Birch Communications Inc.(“BCI”).Amended
Application at 2.1 The Company says BCI and its subsidiaries provide telecommunications
service to business and residential customers in 38 states.Id.
The Company says that BCI is buying assets and customer accounts from Covista,
Inc.,an authorized local exchange carrier in Idaho.Id.at 1.The Company plans to serve
customers currently served by Covista.It would provide service in the territories of,and
The Company says it is owned 100%by Birch Telecom,Inc.,that BCI owns 100%of Birch Telecom,Inc.,and
that Birch Communications Holdings,Inc.owns a 100%voting and equity interest in BCI.Birch Holdings is a
Georgia corporation whose principal business is telecommunications holdings.Id.at 2.
ORDER NO.32809 1
compete with,incumbent local exchange carriers (‘ILECs”)Qwest Corporation dba CenturyLink
QC and Frontier Communications Northwest Inc.It also would compete with competitive local
exchange carriers like XO.TW Telecom.and Level 3.Id.at 3.
The Company proposes to provide telecommunications service in Idaho as a
facilities-based provider,a reseller,or some combination thereof.Id.at 1,3.It has no pians to
place facilities or switches in Idaho,but rather will serve Idaho customers using its facilities and
switches in other parts of its service territory.Id.The Company says it also will buy unbundled
network elements (“liNEs”)or liNE-replacement services from carrier ILECs like Qwest
Corporation dba CenturyLink QC and Frontier Communications Northwest Inc.The Company
plans to use a mix of its own facilities and services purchased from ILECs to provide local
exchange and interexchange services in Idaho.Id.
The Company says it has adequate financial resources to provide the proposed
services.Id.at 4.Further,it has an existing interconnection agreement with Qwest Corporation
dba CenturyLink QC and Frontier Communications Northwest Inc.,or their affiliates,and it will
seek to add Idaho to those agreements or enter into new agreements with those ILECs as
necessary.Id.The Company says it will begin serving Covista customers as soon as it receives
the necessary regulatory approvals.Id.at 3.The Company says it has reviewed and will comply
with Commission rules.Id.at 4.
THE COMMENTS
Staff reviewed the Company’s Application for compliance with applicable legal
requirements for acquiring a CPCN,including RP 114,which specifies the information that a
CLEC must include in its application.Based on that review,Staff believes the Company
understands and agrees to comply with the Commission’s rules and requirements.Staff also
believes the Company possesses the requisite financial,managerial,and technical qualifications
necessary to provide local exchange telecommunications services.Further.Staff believes the
Company’s price list complies with the Commission’s rules and Idaho law.Staff thus
recommends that the Commission issue a CPCN to the Company.subject to the following
conditions:
1.The Company must comply with the number pooling and reporting
requirements of the North American Numbering Plan Administrator
(NANPA).2
2 See Commission Order No.30425.
ORDER NO.32809 2
2.The Company must comply with all reporting and contribution
requirements of Idaho’s Universal Service Fund (USF;Idaho Code §62-
610;IDAPA 31.46.01),Telecommunications Relay Services (TRS)
program (Idaho Code §61-1304;IDAPA 31.46.02);and
Telecommunications Service Assistance (TSA)program (Idaho Code §
56-904);’
3.The Company must comply with all future reporting requirements deemed
appropriate by the Commission for competitive telecommunications
providers;and
4.The Company must relinquish its CPCN and all telephone numbers if,
within one year of the issuance of a CPCN,the Company is not providing
basic local exchange service in Idaho.4
DISCUSSION AND FINDINGS
Based on our review of the record,including the Company’s Application and Staff’s
comments,we find that the Company’s Application complies with RP 114.Thus,we approve
the Company’s Application for a CPCN to provide local exchange telecommunications services
within Idaho,subject to the following conditions:(1)the Company must comply with the
NANPA’s number pooling and reporting requirements;(2)the Company must comply with all
reporting and contribution requirements of Idaho’s USF,TRS program,and TSA program;(3)
the Company must comply with all future reporting requirements deemed appropriate by the
Commission for competitive telecommunications providers;and (4)the Company must
relinquish its certificate and all telephone numbers if,within one year of the issuance of a CPCN,
the Company is not providing local exchange telecommunications services in Idaho.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for a CPCN is granted
subject to the above conditions.
THIS IS A FINAL ORDER.Any person interested in the Order 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.Within seven (7)days after any person has petitioned for
See Commission Order Nos.32637,32524,and 32526.
‘“‘Basic local exchange service’means the provision of access lines to residential and small business customers
with the associated transmission of two-way interactive switched voice communication within a local exchange
calling area.”Idaho Code §62-603(1).
ORDER NO.32809 3
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 2J
day of May 2013.
PAUL KJELLAN ER PRESIDENT
MACK A.REDFORDcCO 4ISSIONER
JA-SL
MARSHA I-I.SMITH,COMMISSIONER
ATTEST:
/1 ,1
/I
Jeth D.JewelVi
Commission Secretary
O:INX-T-13-Olkk2
ORDER NO.32809 4