20070426Comments.pdf

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WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
MATRIX, INC. FOR A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE SERVICES IN THE STATE OF IDAHO
CASE NO. MAT-O7-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Weldon B. Stutzman, Deputy Attorney General, in response to the Notice of
Application and Notice of Modified Procedure in Case No. MAT-07-1 issued in Order No.
30288 on AprilS, 2007, submits the following comments.
BACKGROUND
On January 16 2007 , Matrix Telecom, Inc. ("Matrix" and" Company ) filed an
Application for a Certificate of Public Convenience and Necessity to provide facilities-based and
resold local exchange telecommunications services within the State ofldaho. The Application
states Matrix will provide these services through interconnection agreements and commercial
wholesale agreements with Verizon Northwest Inc. and Qwest Corporation. Matrix anticipates it
will begin providing service in the spring of 2007 and intends to deploy and maintain company-
owned facilities only after customer saturation can support such deployment.
STAFF COMMENTS APRIL 26, 2007
Matrix has a Certificate oflncorporation from the State of Texas dated June 30, 1990 and
a Certificate of Authority from the State ofldaho dated June 12, 1992. The Company s principal
place of business is in Dallas, Texas. Matrix has provided financial information and the
appropriate contact information for its registered agent for service of process within Idaho. The
Company also filed a revised illustrative tariff on February 21 2007 and affirms that it has
reviewed all the Commission rules and agrees to comply with them.
STAFF ANALYSIS
Matrix is an indirect, wholly owned subsidiary of Platinum Equity LLC, a privately held
limited liability company formed under the laws of Delaware and headquartered in Beverly Hills
California. Matrix owns a single subsidiary, Matrix Telecom of Virginia, Inc. through which
Matrix provides telecommunications service in Virginia.
In its Application, Matrix states that the Company is authorized to provide resold local
exchange telecommunications services in forty-four states and the District of Columbia. Matrix
is also authorized to provide resold inter-exchange services nationwide. Matrix does not
currently own any of its own network equipment in Idaho, but intends to deploy and maintain
Company-owned facilities as soon as customer saturation can support deployment.
The Company seeks to augment its existing authority in Idaho to include the provision of
local exchange telecommunications services via facilities-based arrangements to residential
consumers and small and medium businesses throughout the state. Matrix has initiated
negotiations of an interconnection agreement and commercial wholesale agreement with both
Verizon and Qwest.
Matrix provided an audited financial statement for 2005 and its balance sheets for 2006.
The Company also provided an illustrative tariff with its Application that demonstrates an
understanding of tariff requirements and processes.
ST AFF RECOMMENDATION
Based upon the review of the Company Application, Staff believes the Matrix
understands and agrees to comply with the Commission Rules of Procedure 111, IDAP A
31.01.01.111 , and Procedural Order No. 26665. Staff believes that the Company possesses the
requisite financial, managerial, and technical qualifications necessary to operate as a
STAFF COMMENTS APRIL 26, 2007
telecommunications service provider. Staff recommends approval of the Application for
Certificate of Public Convenience and Necessity.
Respectfully submitted this '(J;,fk--day of April 2007.
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Deputy Attorney General
Technical Staff:Grace Seaman
i:uumisc/comments/mattO7,1 wscg
STAFF COMMENTS APRIL 26, 2007
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 26TH DAY OF APRIL 2007
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. MAT-07-, BY MAILING A COpy THEREOF, POSTAGE PREPAID
TO THE FOLLOWING:
SCOTT KLOP ACK
VICE PRESIDENT OF REGULATORY
AFF AIRS
MATRIX TELECOM INC
7171 FOREST LANE SUITE 700
DALLAS TX 75230
RICHARD R CAMERON
LATHAM & WATKINS LLP
555 11TH ST NW SUITE 1000
WASHINGTON DC 20004-1304
SECRET 1-~
CERTIFICATE OF SERVICE