20130419Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL

DATE: APRIL 17, 2013

SUBJECT: IONEX COMMUNICATIONS NORTH’S CPCN APPLICATION
CASE NO. INX-T-13-01

On January 9, 2013, Ionex 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.
The Company says it is a South Dakota corporation that is authorized to do business
in Idaho. It is headquartered in Kansas City, MO, 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 services to business and
residential customers in 38 states. Id.
According to the Company, 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
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.

1 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.
DECISION MEMORANDUM 2
The Company will provide telecommunications service in Idaho as a facilities-based
provider, a reseller, or some combination thereof. Id. at 1, 3. It has no plans 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
(“UNEs”) or UNE-replacement services from carriers 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 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.
STAFF RECOMMENDATION
Staff recommends that the Commission process the Company’s Application under
Modified Procedure with a 21-day comment period.
COMMISSION DECISION
Does the Commission wish to process the Company’s Application under Modified
Procedure with a 21-day comment period?

M:INX-T-13-01_kk