20130515Comments.pdf

KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5156
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All 1O:j9
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
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 COMMENTS OF THE
PROVIDE LOCAL EXCHANGE ) COMMISSION STAFF
TELECOMMUNICATIONS SERVICES. )
The Staff of the Idaho Public Utilities Commission comments as follows on lonex
Communications North, Inc. dba Birch Communications' Application.
BACKGROUND
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.
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
STAFF COMMENTS 1 MAY 15,2013
corporation, Birch Communications Inc. ("BCI"). Amended Application at 2.' The Company
says BCI and its subsidiaries provide telecommunications services 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 I. 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.
STAFF REVIEW
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 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 ("TJNEs") or UNE-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 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.
STAFF COMMENTS 2 MAY 15, 2013
STAFF RECOMMENDATION
Staff has reviewed the Company's amended Application and price list and believes the
Company understands and agrees to comply with the Commission's rules and requirements.
Based on this review, Staff also believes that the Company possess the requisite financial,
managerial, and technical qualifications necessary to provide telecommunications services. Staff
also believes that the price list, as filed with the amended Application, comports with all
Commission Rules and Idaho Law. Therefore, Staff recommends that the Commission issue a
CPCN to lonex Communications North, Inc. dba Birch Communications, subject to the
following conditions:
1.The Company must comply with all number pooling and reporting requirements of the
North American Number Plan Administrator. See Commission Order No. 30425;
2.The Company must comply with all reporting and contribution requirements as
prescribed by the Idaho Universal Service Fund, Idaho Telecommunications Relay
System, Idaho Telecommunications Service Assistance Program;
3.The Company must comply with all future reporting requirements deemed appropriate by
the Commission for competitive telecommunications providers; and
4.The Company will relinquish its CPCN and all telephone numbers if it is not providing
service within one year of its certificate issuance.
Respectfully submitted this 1,5'- f/ day of May 2013
11b( 1/L
Karl T. Klein
Deputy Attorney General
Technical Staff: Carolee Hall
i:umisc/comments/inxtl3. lkkch comments
STAFF COMMENTS 3 MAY 15, 2013
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 15 DAY OF MAY 2013,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. INX-T-13-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
TARA JACKSON
SR MGR - LEGAL/REG
BIRCH COMMUNICATIONS
2300 MAIN ST STE 340
KANSAS CITY MO 64108
EMAIL: tara.jackson(birch.com
ANGELA F COLLINS
CAHILL GORDON & REINDEL
1990 K ST NW STE 950
WASHINGTON DC 20006
EMAIL: [e-mail]
SECRETARY/
CERTIFICATE OF SERVICE