20101217Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 16, 2010

SUBJECT: APPLICATION OF LIBERTY-BELL TELECOM, LLC FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, CASE
NO. LBT-T-10-01

On June 23, 2010, Liberty-Bell Telecom, LLC (“LBT” or “Company”) filed an
Application, including a copy of its illustrative tariff, for a Certificate of Public Convenience and
Necessity (“CPCN”), pursuant to Idaho Code §§ 61-526 through -5281, Idaho Code § 62-604,
IDAPA 31.01.01.111 (Rule 111), IDAPA 31.42.01 (Rule 202) and Procedural Order No. 26665,
to provide facilities-based local exchange, switched exchange access and non-facilities-based
interexchange telecommunications services in Idaho. Application at 1. On October 12, 2010,
LBT filed a revised copy of its illustrative tariff.
On November 24, 2010, the Commission issued a Notice of Application and
Modified Procedure with a 21-day comment period. Thereafter, Commission Staff was the only
party to submit written comments within the established comment period.
THE APPLICATION
LBT is a Colorado corporation and lists its principal place of business as Denver,
Colorado. Id. at 2. LBT is registered with the Idaho Secretary of State as a foreign corporation
and lists CT Corporation System, 1111 West Jefferson, Suite 530, Boise, Idaho 83702, as its
Idaho registered agent for service. Id. at 2, Exhibit C.
1 Pursuant to the Idaho Telecommunications Act of 1988, specifically Idaho Code § 62-604(1)(a), LBT is exempt
from Title 61 regulation.
DECISION MEMORANDUM 2
LBT states in its Application that it “proposes to offer competitive local exchange
services initially including, basic local exchange services and custom calling features for
residential and commercial subscribers.” Id. at 2. Subsequently, the Company “proposes to
offer exchange access services to interconnecting carriers.” Id. The Company’s local exchange
services “will be provided on a facilities-based basis[,]” utilizing the unbundled network
elements of its underlying carriers. Id. “[I]nterexchange services will be offered exclusively on
a resold, non-facilities-based basis.” Id. LBT has no current plan to construct facilities or
deploy equipment in Idaho. Id. at 5.
LBT’s proposed Idaho service territory will include all areas of Idaho currently being
served by “Qwest Corporation, its sole incumbent local exchange carrier competitor.” Id. LBT
attached a copy of its illustrative tariff to its Application. See id. at 7, Exhibit A. The Company
states that it will begin negotiating an interconnection agreement with Qwest Corporation
following the Commission’s decision regarding its Application. Id. at 8. LBT “avers that it has
reviewed all of the Commission’s rules and agrees to comply with such rules.” Id. at 9. LBT
requests a waiver of the escrow account requirement because it will not require its customers to
submit advance payments or deposits in exchange for service. Id.
STAFF COMMENTS AND RECOMMENDATION
Staff stated that it worked with LBT and its attorney to bring the Company’s
illustrative price list into compliance with the Commission’s Customer Relations Rules and
Idaho statutes. After numerous corrections and revisions, Staff now believes that the Application
and price list comport with the Commission’s Rules and Idaho statutes.
On December 14, 2010, a Consent Decree was issued and adopted between the
Enforcement Bureau of the Federal Communications Commission (“Bureau”) and LBT. The
Consent Decree terminated a Bureau investigation regarding potential violations of the
Communications Act of 1934 and corresponding rules. Staff noted that this Consent Decree is a
result of alleged international violations and does not have intrastate certification implications
that would negatively impact the Company’s Application for a CPCN.
Staff recommends that the Commission grant LBT’s Application for CPCN, subject
to the following conditions:
a. LBT must comply with number pooling and reporting requirements of the
North American Numbering Plan Administrator, as set forth in
Commission Order No. 30425;
DECISION MEMORANDUM 3
b. LBT must provide all necessary reports and make appropriate
contributions to the Idaho Universal Service Fund, Idaho
Telecommunications Relay System, Idaho Telecommunications Service
Assistance Program, and comply with all future reporting requirements
deemed appropriate by the Commission for competitive
telecommunications providers; and

c. LBT shall relinquish its Certificate and all telephone numbers if, within
one year of the issuance of a CPCN, the Company is not providing basic
local exchange telecommunications services in Idaho as defined by Idaho
Code § 62- 603(1).2

Finally, Staff recommends that the Company’s request for a waiver of the escrow
account requirement be granted.
COMMISSION DECISION
1. Does the Commission wish to approve LBT’s Application for a Certificate of
Public Convenience and Necessity?
2. Does the Commission wish to waive the escrow account requirement?

M:LBT-T-10-01_np2

2 “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.