20210119Comments.pdf

DAYN HARDIE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES CPMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 9917
IN THE MATTER OF LXI-CLEC, LLC AND
FATBEAM, LLC'S APPLICATION FOR
APPROVAL TO ASSIGN THE CERTIF'ICATE
OF PUBLIC CONVENIENCE AND
NECESSITY HELD BY LXI.CLEC, LLC TO
FATBEAM,LLC
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Street Address for Express Mail:
1 133I W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE,ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. LXI.T-20-05
FZ4-T-20-02
COMMENTS OF THE
COMMISSION STAF'F
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Dayn Hardie, Deputy Attorney General, submits the following comments.
BACKGROUND
On November 17,2020, LK-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").
Fatbeam entered into an Asset Purchase Agreement ("Agreement") wherein 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, telecommunications equipment and facilities, certain customer and vendor
contracts, and certain rights and agreements with third parties and government agencies.
Fatbeam currently provides facilities-based Internet service, private line, and Wide Area
Network services in Idaho.
STAFF COMMENTS JANUARY I9,2O2I1
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 will obtain assets of the Companies, including LXI's CPCN, allowing it to
provide facilities-based services on a competitive basis to Idaho customers.l Fatbeam will
continue to serve the customers currently served by the Companies upon completion of the
proposed transaction.
Fatbeam seeks authority to offer telecommunications services in all areas currently, or
that become, open to competition, including areas currently served by Frontier and CenturyLink.
Fatbeam expects to compete with Centurylink.
Fatbeam serves customers in northern and eastern Idaho. Under the Agreement, Fatbeam
will acquire fixed wireless and/or wireline facilities of the Companies in southcentral and
southwest Idaho.
STAFF ANALYSIS
LXI is an Idaho limited liability company that offers basic local exchange service in
Idaho. LXI was granted Certificate No. 498 to provide local exchange telecommunications
services in Idaho pursuant to Order No. 32057 issued in Case No. LXI-T-10-01, however, it does
not currently provide local exchange service in Idaho.
Fatbeam is a Washington limited liability company. However, its main address is in
Coeur d'Alene, Idaho. It is registered in Idaho as a foreign limited liability company.
Application, Exhibit 2. Fatbeam plans to offer service in CenturyLink's service territory.
Fatbeam provided the names and addresses of its officers and owners, as well as relevant
corporate financial information. Fatbeam asserts it has reviewed the Commission's applicable
rules and agrees to provide service in accordance with those rules.
t LXI-CLEC does not currently serve end-users in Idaho but does provide telecommunications facilities to the other
Companies who provide other telecommunications and communications services to enterprises and govemment
customers, primarily schools and libraries.
STAFF COMMENTS JANUARY I9,2O2I2
STAFF RECOMMENDATIONS
Staff has reviewed the Application and believes the Applicants understand the
Commission's rules and requirements related to the provision of telecommunication services in
Idaho. Staff believes the Application fulfills the requirements of Order No. 26665 and the
Commission's Rule of Procedure 114. IDAPA 31.01.01.114. Staff also believes Fatbeam
possesses the requisite financial, managerial, and technical qualifications necessary to operate as
a telecommunications services provider.
Staff recommends approval of the Application for LXI's CPCN to be assigned to
Fatbeam, subject to the following conditions:
1. Fatbeam complies with number pooling and reporting requirements of the North
American Numbering Plan Administrator, as set forth in Commission Order No. 30425;
2. Fatbeam provides necessary reports and contributions-as appropriate-to the Idaho
Universal Service Fund, Idaho Telecommunications Relay Services, Idaho Telecommunications
Service Assistance Program, and complies with all future reporting requirements deemed
appropriate by the Commission for competitive telecommunications providers;
3. Prior to transferring the CPCN, Fatbeam files a final price list outlining all its rates,
terms, and conditions of service with the Commission; and
4. Fatbeam provides three reports to the Commission indicating the number of basic
local exchange customers it has and the services being offered. Those reports will be due as
follows:
a. June 21,2021
b. October 18,2021
c. February 21,2022
If the Company fails to provide the three reports, Fatbeam shall relinquish its CPCN and all
telephone numbers it has been assigned or the Commission by its own order will revoke the
Company'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 order will revoke the Company's CPCN.
STAFF COMMENTS JANUARY I9,2O2IJ
Respectfully submitted this lq+t day of Janu ary 2021.
\
Deputy Attorney General
Technical Staff: Daniel Klein
4STAFF COMMENTS JANUARY I9,2O2I
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 19TH DAY OF JANUARY 2021,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NOS. LXI.T-20-O5IFZ4-T-20-02, BY MAILING A COPY THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING:
TAMAR E FTNN
BRETT P FERENCHAK
MORGAN LEWIS & BOCKIUS
1111 PENNSYLVANIA AVE NW
WASHINGTON DC 2OOO4
E-MAIL: tamar. finn(Pmor:ganlewis.com
brctt. fb renchak lij,imo r g anl er.vi s. c o m
NATE BONDELID
PRESIDENT
TEK-HUT INC
10350 W EMERALD ST
BOISE ID 83704
E-MAIL : nate(*)tek-hut. com
KIM DEVLIN
FATBEAM LLC
2065 W RIVERSTONE DR
STE 202
COEUR D'ALENE ID 83814
E-MAIL: paul.merrt
SECRETARY
CERTIFICATE OF SERVICE