20090507final_order_no_30794.pdf

Office ofthe Secretary
Service Date
May 7, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
MOMENTUM TELECOM, INc. FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO PROVIDE LOCAL
EXCHANGE SERVICES ORDER NO. 30794
CASE NO. MNT - T -08-
On August 4, 2008, Momentum Telecom, Inc. ("Momentum" or "Company ) filed an
Application for a Certificate of Public Convenience and Necessity pursuant to Idaho Code ~~ 61-
526 through 528, IDAP A 31.01.01.111 and Commission Order No. 26665 to provide facilities-
based local exchange and resold interexchange telecommunications services within the State of
Idaho. On December 30, 2008, Momentum filed copies of its Local Exchange
Telecommunications Tariff, revised in accordance with Staffs recommendations to enhance the
Company s intent to offer local service in addition to its Voice over Internet Protocol (VoIP)
servIces.
On March 17, 2009, the Commission issued a Notice of Application and Notice of
Modified Procedure. Order No. 30749. Thereafter, the Commission received written comments
submitted by Staff within the established comment period.
THE APPLICATION
Momentum is a Delaware corporation and lists its principal place of business as
Birmingham, Alabama. Application at 2-3. Momentum is registered with the Idaho Secretary of
State as a foreign limited liability company and lists CT Corporation System, 1111 West
Jefferson, Suite 530 , Boise, Idaho 83702, as its Idaho registered agent for service. Id. at 3.
Momentum is a competitive local exchange and long-distance service provider offering its
services to approximately 40 000 customers in the following states: Alabama, Florida, Georgia
Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee. Id. at 1-
Momentum stated it plans to provide telecommunications services in Idaho within six months of
Commission authorization. Id. at 4.
In its Application Momentum stated it "proposes to offer facilities based local
exchange and resold interexchange services to Idaho consumers as well as some wholesale
services to other providers.Id. at 4. Momentum proposes to offer services throughout Idaho in
ORDER NO. 30794
geographic areas currently served by incumbent local exchange carrIers ("ILECs ) Qwest
Corporation and Verizon Northwest Inc. Id. The Company states it will utilize its own "soft
switch to provide its facilities based services.Id.
As of the date of its initial filing, Momentum has not negotiated an interconnection
agreement with an ILEC in the state of Idaho. Id. at 6. The Company s Application does not
seek authority to institute an escrow account because it will not require advance payments or
deposits from its customers. Id.
STAFF COMMENTS
Staff has reviewed Momentum s Application and recommended the Company be
granted a CPCN subject to the following conditions: (1) compliance with the Number Pool
Administrator and Order No. 30425 mandating NRUF and Utilization reporting; (2) contribution
to the Idaho Universal Service Fund, Idaho Telecommunications Relay System, ITSAP and any
future reporting requirements deemed appropriate for competitive telecommunication providers;
and (3) upon CPCN issuance, filing a final and complete price list with the Commission
containing all of its rates, terms and conditions. Staff Comments at 3-
Staff opined that it is currently "unclear whether fixed-location (non-nomadic)
interconnected VoIP telecommunications offerings currently are properly classified as
telecommunications services or information services under the. . . Telecommunications Act of
1934, as amended by the Telecommunications Act of 1996 . . ." because the FCC has yet to
make a definitive statement on the matter. Id. at 2. The FCC could either classify the nature of
interconnected VoIP offerings, such as those offered by Momentum, as information services or
preempt state regulation of all VoIP services. In either case, the Commission would no longer be
authorized to regulate these services. Id. Nevertheless, Momentum would still be required to
obtain a Certificate. Id. at 3.
In effect, Momentum must obtain a CPCN in order to obtain numbering resources to
operate within the Idaho telecommunications market. Id. Staff believes that granting
Momentum a CPCN is "consistent with the Commission s obligation, under state and federal
statutes, to promote competition for telecommunications services, including basic local exchange
service.Id. Staff asserted that the type of service offered by Momentum
, "
interconnected fixed
VoIP service(,J is the functional equivalent of circuit switched local exchange services.Id.
Momentum has filed for and received a CPCN and/or a Letter of Registration to provide
ORDER NO. 30794
competitive telecommunications servIces III several other states besides Idaho, including
Colorado and Iowa. Id.
Initially, Staff expressed concern with Momentum s Application regarding the
approaching 208 area code exhaustion. Staffs concerns were alleviated once the Company
formally agreed to "comply with all federal and state guidelines that monitor and regulate the
Idaho area code.Id. Momentum also agreed to comply with Order No. 30425 addressing
Mandatory Pooling, Commission Rules of Procedure and the Idaho Code. Id.
COMMISSION DECISION AND FINDINGS
Based upon our review of Momentum s Application and the record, including Staffs
comments regarding Momentum s express commitment to comply with all federal and state
guidelines pertaining to the Idaho area code, Commission Order No. 30425 , Commission Rules
of Procedure and the Idaho Code, the Commission finds that Momentum s filing satisfies the
requirements of the Commission s Rules and Procedural Order No. 26665. Thus, we approve
Momentum s Application for a Certificate of Public Convenience and Necessity, subject to the
conditions detailed in Staffs submitted comments, to allow the Company to provide local
exchange telecommunications services within Idaho.
ORDER
IT IS HEREBY ORDERED that the Application of Momentum Telecom, Inc. for a
Certificate of Public Convenience and Necessity is granted to enable the Company to provide
local exchange telecommunications services within the State of Idaho.
IT IS FURTHER ORDERED that Momentum s Certificate of Public Convenience
and Necessity shall be subject to the following conditions: (1) compliance with the Number Pool
Administrator and Order No. 30425 mandating NRUF and Utilization reporting; (2) contribution
to the Idaho Universal Service Fund, Idaho Telecommunications Relay System, ITSAP and any
future reporting requirements deemed appropriate for competitive telecommunication providers;
and 3) filing a price list with the Commission containing a complete list of rates, terms and
conditions.
THIS IS A FINAL ORDER. Any person interested in the Order 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. Within seven (7) days after any person has petitioned for
ORDER NO. 30794
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ? r"
day of May 2009.
II ~LJ
D. KEMPTON, P IDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
mission Secretary
O:MNT-08-np2
ORDER NO. 30794