20090608final_order_no_30833.pdf

Office ofthe Secretary
Service Date
June 8, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF NET TALK. COM, INc. FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO PROVIDE
FACILITIES-BASED LOCAL EXCHANGE
AND RESOLD INTEREXCHANGE
TELECOMMUNICATIONS SERVICES
) CASE NO. NTA-08-
ORDER NO. 30833
On November 18, 2008, NET TALKCOM, INC. ("Net Talk" or "Company ) filed
an Application for a Certificate of Public Convenience and Necessity (CPCN) pursuant to Idaho
Code ~~ 61-526 through 528 , IDAPA 31.01.01.111 and Commission Order No. 26665 to provide
facilities-based local exchange and resold interexchange telecommunications services throughout
Idaho. On March 6, 2009, Net Talk filed a revised Application and proposed Local Exchange
Telecommunications Tariffs, in accordance with Staffs recommendations.
On April 15, 2009, the Commission issued a Notice of Application and Modified
Procedure establishing a 21-day comment period for interested parties to submit comments
regarding Net Talk's Application for a CPCN. See Order No. 30781. Thereafter, Commission
Staff submitted comments regarding Net Talk's Application.
THE APPLICATION
Net Talk is a Florida corporation and lists its principal place of business as North
Miami Beach, Florida. Application at 2-3. Net Talk is registered with the Idaho Secretary of
State as a foreign limited liability company and lists Incorp Services, Inc., 921 S. Orchard, Suite
, Boise, Idaho 83705 , as its Idaho registered agent for service. Id. at 3. Net Talk is a newly
formed company with a Class V switching facility data center located in North Miami Beach
Florida. Id. at 7. Net Talk states that it will compete with other VoIP providers and local
incumbent local exchange carriers (ILECs) to provide facilities-based local exchange and resold
interexchange services. Id. at 6. The Company s service area will encompass the "geographic
areas currently served by Qwest Communications.Id. Net Talk intends to offer its services
immediately upon certification utilizing its own and/or leased facilities and the resale of other
carrier s facilities and network elements.
ORDER NO. 30833
Net Talk has not negotiated an interconnection agreement with an ILEC in the State
ofIdaho "but is planning on doing so in the very near future.Id. at 9.
In its Application, Net Talk states that it has "reviewed all of the Commission s Rules
applicable to competitive local exchange service and interexchange service providers and agrees
to comply with those rules except to the extent the rules are explicitly waived for Net Talk or for
all carriers in the same class.Id.Net Talk has requested a waiver of any reporting
requirements "not applicable to competitive providers like Net Talk. . ." because they "(1) are
not consistent with the demands of a competitive market; and (2) they constitute an undue
burden on a competitive provider. . . .Id. Net Talk declared that it has reserved the right to
seek any regulatory waivers it deems necessary in order to "compete effectively in the Idaho
local exchange services market." Id. Finally, the Company requests a waiver of the escrow
account requirements because it will not require advance payments or deposits from its
customers. Id.
STAFF COMMENTS
Staff has reviewed Net Talk'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 telecommunications 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
Staff stated that it has "worked closely with the Company to bring its Application and
illustrative price lists into compliance with Idaho Code and the Commission s Customer
Relations Rules.Id. at 2. In addition to competing in "the Basic Local Service market " Net
Talk will offer other services such as Voice over Internet Protocol (VoIP). !d. In order to offer
its VoIP service, Net Talk must obtain telephone numbers from the Number Pool Administrator
and interconnect with local exchange providers. Id. Prior to obtaining an initial block of
telephone numbers, industry numbering standards and FCC rules require that a "provider has
either: 1) a license or authority issued by the FCC; or 2) . . . a CPCN issued by the appropriate
state regulatory body, such as a public utilities commission.Id.
ORDER NO. 30833
To date, the FCC has not made a determination of the regulatory status of
interconnected VOIP services.Id. The FCC could either classify the nature of interconnected
VoIP offerings, such as those offered by Net Talk, as information services or preempt state
regulation of all VoIP services. Id. at 2-3. In either case, the Commission would no longer be
authorized to regulate these services. Id. at 3.
Because Net Talk must obtain a CPCN in order to obtain numbering resources
denying the Application for a CPCN could have the practical effect of denying Net Talk entry
into the Idaho telecommunications market." Id. Staff believes that "approval of this Application
would be consistent with the Commission s obligation, under state and federal statutes, to
promote competition for telecommunications services, including basic local exchange service.
Id. The type of service offered by Net Talk
, "
interconnected VoIP service(,) is the functional
equivalent of circuit switched local exchange services. . ..Id. Thus, granting the Application
would "afford Net Talk the same numbering resources that are currently used by Idaho LECs
without question or restriction of the services they are offering.Id.
Staffs initial concerns with Net Talk's Application regarding the approaching 208
area code exhaust were alleviated once the Company filed an amended Application wherein it
formally agreed to "comply with all federal and state guidelines that regulate and monitor Idaho
telephone numbers.Id.
COMMISSION DECISION AND FINDINGS
Based upon our review of Net Talk's Application and the record, including Staffs
comments regarding Net Talk's express commitment to comply with all federal and state
guidelines pertaining to the Idaho area code, the Commission finds that Net Talk's filing satisfies
the requirements of the Commission s Rules and Procedural Order No. 26665. Thus, we
approve Net Talk's Application for a Certificate of Public Convenience and Necessity, subject to
the conditions detailed in Staff s comments, to allow the Company to provide local exchange
telecommunications services within the State of Idaho.
ORDER
IT IS HEREBY ORDERED that the Application of NET T ALKCOM, 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.
ORDER NO. 30833
IT IS FURTHER ORDERED that Net Talk'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 telecommunications 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
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
day of June 2009.
O , PRESIDENT
MARSHA H. SMITH, COMMISSIONER
~ A --f
MACK A. REDFORD, COMMISSIONER
ATTEST:
~~
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Barbara Barrows
Assistant Commission Secretary
O:NTA-08-np2
ORDER NO. 30833