20210208Final_Order_No_34912.pdf

ORDER NO. 34912 1

Office of the Secretary
Service Date
February 8, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF LXI-CLEC, LLC AND
FATBEAM, LLC’S APPLICATION FOR
APPROVAL TO ASSIGN THE
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY HELD BY LXI-CLEC, LLC
TO FATBEAM, LLC
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CASE NO. LXI-T-20-05
FZ4-T-20-02

ORDER NO. 34912

On November 17, 2020, LXI-CLEC, LLC (“LXI”) and Fatbeam, LLC (“Fatbeam”)
(collectively the “Applicants”) applied for authority for LXI to transfer its Certificate of Public
Convenience and Necessity No. 498 (“CPCN”) and other assets to Fatbeam (“Application”).
On December 29, 2020, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing comment and reply deadlines. Staff submitted comments
supporting the Application subject to several conditions. No other comments were received.
Fatbeam did not reply. We now approve the Application as described herein.
BACKGROUND
Fatbeam provides facilities-based Internet access, private line, and Wide Area Network
services in Idaho. Fatbeam intends to offer basic local exchange services utilizing unbundled
network elements obtained via assignment of LXI’s interconnection agreement with incumbent
local exchange carrier, Qwest. Fatbeam serves customers in northern and eastern Idaho.
THE APPLICATION
Fatbeam signed an Asset Purchase Agreement (“Agreement”) in which Fatbeam will
acquire certain assets from LXI and associated companies Tekfinity, LLC, Tek-Hut, Inc. and
Random Investments, LLC (collectively the “Companies”). The assets include regulatory
authorizations (LXI’s CPCN), telecommunications equipment and facilities, certain customer and
vendor contracts, and certain rights and agreements with third parties and government agencies.
Fatbeam seeks authority to offer telecommunications services in all areas that are or will
become open to competition, including areas currently served by Frontier and CenturyLink.
Fatbeam expects to compete with CenturyLink.
Under the Agreement, Fatbeam will acquire the Companies’ fixed wireless and/or wireline
facilities in southcentral and southwest Idaho.

ORDER NO. 34912 2

THE COMMENTS
Staff filed the only comments, and recommended the Commission approve the Application.
After reviewing the Application, Staff opined that Fatbeam possessed the requisite financial,
managerial, and technical qualifications to provide telecommunication services, and believed
Fatbeam understands the Commission’s rules and requirements related to the provision of
telecommunication services in Idaho. Therefore, Staff recommended the Commission approve the
transfer of LXI’s CPCN to Fatbeam on the following conditions. Fatbeam must: (1) comply with
the North American Number Plan Administrator requirements; (2) comply with all reporting and
contribution requirements prescribed by the Idaho Universal Service Fund, Idaho
Telecommunications Relay System, and Idaho Telecommunications Service Assistance Program,
and must comply with all future reporting requirements deemed appropriate by the Commission
for competitive telecommunications providers; (3) file with the Commission a final price list
outlining its rates, terms, and conditions before transfer of LXI’s CPCN; (4) provide the
Commission with three reports during the next twelve months, indicating the number of basic local
exchange customers it has and the services being offered; and (5) recognize that if Fatbeam is not
providing basic local exchange service by the time the third report is due, the Commission by its
own motion will revoke Fatbeam‘s CPCN.
DISCUSSION AND FINDINGS
Based on our review of the record, we find that the Application to transfer LXI’s CPCN to
Fatbeam is reasonable. Fatbeam has provided all needed information in the Application. Fatbeam
also has the financial, managerial, and technical qualifications needed to operate as a
telecommunications service provider, and it has reviewed and agreed to comply with this
Commission’s rules. We thus find it reasonable to approve the Application to transfer LXI’s CPCN
to Fatbeam, subject to these conditions:
1) Fatbeam must comply with North American Number Plan Administrator
requirements, as outlined in Commission Order No. 30425.
2) Fatbeam must comply with all reporting and contribution requirements prescribed
by the Idaho Universal Service Fund, Idaho Telecommunications Relay Services,
and Idaho Telecommunications Service Assistance Program, and must comply with
all future reporting requirements deemed appropriate by the Commission for
competitive telecommunications providers.
ORDER NO. 34912 3

3) Before the transfer of LXI’s CPCN to Fatbeam, Fatbeam must file with the
Commission a final price list outlining its rates, terms, and conditions.
4) Fatbeam must provide three reports to the Commission indicating the number of
basic local exchange customers it has and the services being offered. These reports
are due on: June 21, 2021; October 18, 2021; and February 21, 2022. If Fatbeam
fails to provide the three reports, Fatbeam shall relinquish its CPCN and all
telephone numbers it has been assigned or the Commission will by its own motion
revoke Fatbeam’s CPCN.
5) If Fatbeam is not providing basic local exchange service by the time the third report
is due, the Commission by its own motion will revoke Fatbeam’s CPCN.
O R D E R
IT IS HEREBY ORDERED that the Application to authorize the transfer of LXI’s CPCN
No. 498 to Fatbeam is approved, subject to the conditions described in this Order.
IT IS FURTHER ORDERED that CPCN No. 498 will be reissued to Fatbeam upon the
Commission’s receipt of Fatbeam’s price list.
THIS IS A FINAL ORDER. Any person interested in this order (or in issues finally decided
by this order) may petition for reconsideration within twenty-one (21) days of the service date of
this order regarding any matter decided in this order. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho
Code §§ 61-626 and 62-619.
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ORDER NO. 34912 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 8th
day of February 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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