28502.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF LDM
SYSTEMS, INC. FOR A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE SERVICE AS A
COMPETITIVE LOCAL CARRIER.
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CASE NO. LDM-T-97-1

ORDER NO. 28502
On March 6, 1997, the Commission received an Application from LDM Systems, Inc. for a Certificate of Public Convenience and Necessity to provide resold local exchange service as a competitive local carrier throughout the state of Idaho.
In Order No. 27295 issued December 31, 1997, the Commission found that this matter could be processed under Modified Procedure and requested interested persons file written comments regarding the Application by January 28, 1998. Staff, U S WEST Communications, Inc. and the Idaho Telephone Association filed comments on January 28, 1998. LDM filed its response to those comments on February 20, 1998. No other person filed comments.
On March 2, 1998, the Commission suspended consideration of LDM’s Application based upon a review which revealed significant numbers of consumer complaints regarding LDM’s “slamming” practices both in Idaho and nationwide. See Order No. 27356. The Commission ordered suspension to continue until LDM presented credible evidence to the Commission that its corrective action had rectified its admitted “slamming” problems. Id. LDM Systems, Inc. has not presented any evidence to the Commission since the Order was issued. Therefore, the Application should be dismissed without prejudice for lack of activity. LDM can reapply for a certificate if it so chooses.
STAFF RECOMMENDATION
In Order No. 27356, the Commission found a disturbing pattern to consumers’ complaints against LDM. Nearly all of its consumer complaints (22 out 24) stemmed from improper switching of customer service or “slamming.” In this Order, the Commission also noted that it would be dilatory in its duty if it did not take strong action where slamming is alleged and supported by the record. While LDM represented that it had taken some steps to rectify its slamming problems, it has not submitted evidence supporting its representations as required by the Commission’s Order. Additional review of this matter also reveals that one slamming complaint against LDM has been registered in the last two years. However, this taken in the context of LDM’s small number of MTS minutes in this state, according to the Idaho Universal Service Fund Annual Report for the year ended June 30, 2000, does not constitute a sufficient record to demonstrate resolution of the problem.
No action has occurred for more than two (2) years. Therefore, Staff recommended the Commission dismiss this Application without prejudice. LDM can reapply if it chooses.
COMMISSION FINDINGS
The Commission finds that the Application does not meet the requirements set forth in Order No. 26665 and that LDM has not provided necessary information to the Commission about its slamming problems. Accordingly, it shall be dismissed without prejudice. LDM Systems, Inc. is not prejudiced by the closing of the docket at this time because the Application can be refiled in the future. Therefore, the proceeding is hereby closed without prejudice.
O R D E R
IT IS HEREBY ORDERED that this proceeding is closed without prejudice as discussed above.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory Orders previously issued in this Case No. LDM-T-97-1 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 or in interlocutory Orders previously issued in this Case No. LDM-T-97-1. 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 August 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

O:ldmt971_jh
Slamming is the changing of a telephone subscriber’s primary interexchange carrier without obtaining the subscriber’s authorization.

ORDER NO. 28502 -1-

Office of the Secretary
Service Date
September 1, 2000