20040817Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:AUGUST 11 , 2004
RE:IN THE MATTER OF THE APPLICATION OF LIGHTYEAR NETWORK
SOLUTIONS, LLC FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS
SERVICES. CASE NO. LYC-04-
On April 12, 2004, Lightyear Network Solutions, LLC ("Lightyear" or "Company ) filed
an Application for a Certificate of Public Convenience and Necessity to provide facilities-based local
exchange service to residential and business customers throughout Idaho in all exchanges which are
not exempt from competition. Principally located in Louisville, Kentucky, Lightyear is a nationwide
interexchange telecommunications carrie! in all states but Alaska. Light year also provides local
exchange services in 36 states. In the Notice of Application and Modified Procedure issued July 8
2004, the Commission solicited comments regarding Lightyear s Application. Order No. 29545.
No comments were received other than those submitted by Commission Staff.
THE APPLI CA TI 0 N
Light year proposes to provide local exchange services via unbundled network element
platforms (UNE- P).Upon certification, the Company intends to offer service as soon as the early
third quarter of2004. The Company will offer these services in conjunction with its interexchange
toll services, which include inbound and outbound interexchange telecommunications services.
also plans to offer bundled offerings consisting of local and long distance services combined with
voice mail and other desired service features. Lightyear intends to offer operator assisted services
its own customers.
DECISION MEMORANDUM
Lightyear intends to offer service in the geographic areas currently served by Qwest
Corporation. Light year has an interconnection agreement with Qwest, which has been approved and
is on file with the Commission. Order No. 29425. According to its Application, Lightyear will
initially mirror the basic local calling scopes of the incumbent local exchange companies.
Light year asserts it has the managerial, technical and financial ability to provide local
telecommunications service in Idaho. Lightyear anticipates the Idaho operations will require
expenses for leasing UNE- P and additional administrative and sales overhead. According to its
Application, Lightyear s incremental administrative and sales costs are not projected to be significant
for the Company and no new funds or capital will be required to expand the Company s services in
Idaho.
Lightyear believes approval of this Application is in the public interest because the
proposed services will increase the competitive choices available to Idaho consumers. The Company
argues that enhanced telecommunications competition will likely stimulate further economic
development in Idaho and create incentives for all carriers to offer lower prices, more innovative
services, and more responsive customer service.
Light year has reviewed the Commission s rules applicable to local exchange service
providers and agrees to comply with those rules except to the extent the rules are explicitly waived
for Light year or all carriers in its class. Lightyear specifically requests exception from the following
rules: 1) Telephone Customer Information Rule 102.03 (31.41.02.102.03) - Press Release; 2)
Telephone Customer Relations Rule 601 (31.41.01.601) - Directories and Customer Listing; and
any reporting requirements that are not applicable to competitive providers such as Lightyear.
STAFF COMMENTS
In its evaluation of the Company s CPCN Application, Staff discovered that there were
two open slamming complaints on file with the Commission. These complaints were filed against
the interexchange carrier arm of the Company. Upon notification of these complaints, Light year
promptly resolved the complaints, which have subsequently been closed.
The Company has re-organized and was recently discharged from bankruptcy.
Consequently, it has little debt. With its customer base, national presence and low debt ratio, it will
most likely be financially viable and able to compete with Qwest. Light year currently has an
interconnection agreement with Qwest on file with this Commission per Commission Order No.
DECISION MEMORANDUM
29425. On July 15, 2004, the Company filed an Agreement to adopt Qwest' s Statement of Generally
Available Terms (SGAT). Case No. QWE-04-19.
Finally, the Company will not be collecting deposits; therefore, it will not need an escrow
account as required in Commission Order No. 26665. Staff believes that Light year has met all the
requirements of the Commission s Rules and Procedural Order No. 26665 and recommends approval
of its Application for a Certificate along with the requested waivers.
COMMISSION DECISION
Does the CoITunission wish to approve Lightyear Network Solutions, LLC's Application
for a Certificate of Public Convenience and Necessity?
M: LYCTO401 In
DECISION MEMORANDUM