20120710Comments.pdf

KARL T. KLEIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5156
RECEIVE)
2012JLj1 10 AN 9:52
U j IDAHO fr- rJL UTILITIES CQMMJSSI:
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
NEW EDGE NETWORK, INC. DBA ) CASE NO. NEN-T-11-01
EARTHLINK BUSINESS FOR A CERTIFICATE)
OF PUBLIC CONVENIENCE AND NECESSITY )
TO PROVIDE LOCAL EXCHANGE ) COMMENTS OF THE
TELECOMMUNICATIONS SERVICES ) COMMISSION STAFF
The Staff of the Idaho Public Utilities Commission comments as follows on New Edge
Network, Inc. dba EarthLink Business' October 20, 2011 Application authorizing the Company
to provide resold and facilities-based local exchange telecommunications service to business
customers in Idaho.
BACKGROUND
On October 20, 2011, New Edge Network applied to the Commission for a Certificate of
Public Convenience and Necessity (CPCN) authorizing the Company to provide resold and
facilities-based local exchange telecommunications service to business customers in Idaho.' On
April 30, 2012, the Company filed a Replacement Local Exchange Tariff. The Company then
amended its Application on June 4, 2012.
'The Company applied for a CPCN under Idaho Code §§61-526 through -528, IDAPA 31.01.01.111 (RP 111), and
Procedural Order No. 26665. The Company's statutory citations are correct; however, the Company is a competitive
local exchange carrier (CLEC), and RP 114, rather than RP 111, governs a new CLEC's application for a CPCN.
STAFF COMMENTS 1 JULY 10, 2012
With its Application, New Edge seeks to provide wireline local telecommunications
service including local exchange service and exchange access service. The Company primarily
will provide local exchange service by reselling the services of other carriers. The Company
says it also may provide facilities-based local exchange service using its own facilities, facilities
leased from other carriers, or a combination of both. Id. at 1-2.
On June 19, 2012, the Commission issued a Notice of Application and Notice of
Modified Procedure soliciting written comments on the Application. The Commission set a July
10, 2012 comment deadline. See Order No. 32574. Staff submits these comments per that Order.
STAFF ANALYSIS
New Edge says it is a Delaware Corporation that is authorized to do business in Idaho.
The Company says it has no Idaho offices, its principal place of business is in Georgia, and it is a
wholly-owned indirect subsidiary of EarthLink, Inc. See Application at 2-3, 5.
New Edge proposes to service areas currently serviced by CenturyLink and Frontier. The
Company says it does not seek to service areas currently serviced by small or rural carriers. See
Amendment to Application at 1. The Company also says it is developing an Idaho marketing
strategy using a professionally trained sales force, and that it will initiate interconnection
negotiations once it receives its CPCN. Id. at 6-8.
New Edge says that if it decides to collect customer deposits, it will enter into an escrow
agreement with a bonded escrow agent before offering service in Idaho, it will file the agreement
with the Commission upon request, and it will comply with the Commission's rules regarding
deposits. Id. at 8.
New Edge, through its parent company EarthLink, appears to posses the requisite
financial resources to provide resold local exchange telecommunications service. The financial
qualifications were presented in EarthLink's most recent SEC Form 10-Q. See Application at 6,
Exhibit 5.
New Edge says it will comply with all applicable Idaho laws and Commission rules and
regulations. See Verification attached to Application.
STAFF COMMENTS 2 JULY 10, 2012
STAFF RECOMMENDATION
Staff has reviewed New Edge's Application and believes the Company understands and
agrees to comply with the Commission's rules and requirements. Based on this review, Staff
also believes New Edge possess the requisite financial, managerial, and technical qualifications
necessary to provide telecommunications services. Therefore, Staff recommends that the
Commission issue a CPCN to New Edge, subject to the following conditions:
1.The Company must comply with all number pooling and reporting requirements of
the North American Number Plan Administrator. See Commission Order No. 30425;
2.The Company must comply with all reporting and contribution requirements as
prescribed by the Idaho Universal Service Fund, Idaho Telecommunications Relay
System, Idaho Telecommunications Service Assistance Program; and
3.The Company must comply with all future reporting requirements deemed
appropriate by the Commission for competitive telecommunications providers.
Respectfully submitted this / O " day of July 2012.
~a ~? -,e~
Karl T. Klein
Deputy Attorney General
Technical Staff: Carolee Hall
chall/comments/nent 11.1 kkch comments
STAFF COMMENTS 3 JULY 10, 2012
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 10TH DAY OF JULY 2012,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. NEN-T-1 1-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
JEAN K KIDDOO PAULA FOLEY
BRETT P FERENCHACK REG AFFAIRS COUNSEL
BINGHAM McCUTCHEN LLP EARTHLINK BUSINESS
2020 K ST NW 5 WALL STREET
WASHINGTON DC 20006 BURLINGTON MA 01803
SECRETAY
CERTIFICATE OF SERVICE