20090505Comments.pdf

NEIL PRICE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 6864
REC
2009 MAY -5 Mi 10: 55
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 )
NET TALK.COM, INC. FOR A CERTIFICATE ) CASE NO. NTA-T-08-1
OF PUBLIC CONVENIENCE AND NECESSITY )
TO PROVIDE FACILITIES-BASED LOCAL )
EXCHANGE AND RESOLD INTEREXCHAGE ) COMMENTS OF THE
TELECOMMUNICATIONS SERVICES. ) COMMISSION STAFF
)
)
COMES NOW the Staff of the Idaho Public Utilties Commission, by and through its
Attorney of record, Neil Price, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure in Order No. 30781 issued on April 15,2009,
submits the following comments.
BACKGROUND
On November 18, 2008, NET TALK.COM, INC. ("Net Talk") filed an Application for a
Certificate of Public Convenience and Necessity, pursuant to Idaho Code §§ 61-526 though
528, IDAPA 31.01.01.111 and Commission Order No. 26665, to provide facilties-based local
exchange and resold interexchange telecommunications services. On March 6, 2009, Net Talk
fied a revised Application and proposed Local Exchange Telecommunications Tariffs, in
accordance with Staff s recommendations.
STAFF COMMENTS 1 MAY 5, 2009
Net Talk is a newly formed Florida corporation with a Class 5 switching facilty data
center located in North Miami Beach, Florida. Net Talk lists its principal place of business as
North Miami Beach, Florida but is registered with the Idaho Secretar of State as a foreign
limited liabilty company.
Net Talk wil compete with other Voice over Internet Protocol (VoIP) providers and
local incumbent local exchange cariers (ILECs) to provide facilities-based local exchange and
resold interexchange services throughout Idaho.
Net Talk's Idaho service area will encompass the geographic areas curently served
by Qwest Corporation.
Net Talk intends to offer its services immediately upon certification, using its own
and/or leased facilties and the resale of other carrier's facilties and network elements.
STAFF ANALYSIS
Staff worked closely with the Company to bring its Application and ilustrative price lists
into compliance with Idaho Code and the Commission's Customer Relations Rules. While Net
Talk intends to compete in the Basic Local Service market, it also has stated that it will pursue
other services such as Voice over Internet Protocol (VoIP).
Net Talk's VoIP offering, while not considered traditional circuit switched basic local
exchange service, requires that Net Talk be able to obtain telephone numbers from the Number
Pool Administrator and requires Net Talk's interconnection with the appropriate local exchange
providers. Curent industry numbering stadards, along with Federal Communications
Commission (FCC) rules require that a provider requesting its initial block of telephone numbers
in a paricular state provide evidence to the Number Pool Administrator that the provider has
either: (1) a license or authority issued by the FCC; or (2) that it holds a CPCN issued by the
appropriate state regulatory body, such as a public utilties commission.
To date the FCC has not made a determination of the regulatory status of interconnected
VoIP services. Therefore, it remains unclear whether interconnected VoIP telecommunications
offerings should be classified as telecommunications services or information services under the
definitions contained in the Telecommunications Act of 1934, as amended by the
Telecommunications Act of 1996 (Telecommunications Act). If the FCC were to make a
determination that interconnected VoIP offers, such as those proposed by Net Talk in this
STAFF COMMENTS 2 MAY 5, 2009
Application, are information services; or, if the FCC were to preempt state regulation ofVoIP
services, no regulation of such services could be undertaken or continued by this Commission.
However, denying the Application for a CPCN could have the practical effect of denying
Net Talk entry into the Idaho telecommunications market. Without numbering resources, Net
Talk canot provide its interconnected VoIP service to Idaho customers. 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. Staff believes that, because interconnected VoIP service is the fuctional
equivalent of circuit switched local exchange services, granting this Application for a CPCN
would encourage competition within Idaho. It would also afford Net Talk the same numbering
resources that are currently used by Idaho LECs without question or restriction of the services
they are offering.
With its initial fiing, Staff had concerns regarding the Idaho 208 area code that is
approaching exhaust. To address this concern, Net Talk fied an amended Application wherein it
stated that as par of its application it will comply with all federal and state guidelines that
regulate and monitor Idaho telephone numbers.
STAFF RECOMMENDATION
Staff recommends that Net Talk be granted a CPCN subject to the following conditions:
1. The granting of this Certificate wil be conditioned upon the Company
complying with the Number Pool Administrator and Idaho Commission Order
No. 30425, which requires NRUF and Utilzation reporting.
2. As a provider of intrastate local exchange services and in accordance with the
Commission's Rules, Net Talk wil be required to report and contribute, as
appropriate, to the Idaho Universal Service Fund, Idaho Telecommunications
Relay System, ITSAP and any requisite anual reporting that may be deemed
appropriate in the future for competitive telecommunication providers.
3. Upon issuance of the Certificate, Net Talk shall fie a completed and final
price list with all its rates, terms and conditions to have on fie with the
Commission.
STAFF COMMENTS 3 MAY 5, 2009
Respectfully submitted this ~~ day of May 2009.
a;~
Deputy Attorney General
Technical Staff: Carolee Hall
i:/umisc/comments/ntat08.1npch comments.doc
STAFF COMMENTS 4 MAY 5, 2009
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 5TH DAY OF MAY 2009, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. NTA-T-08-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
NICHOLAS KYRIAKIDES
NET TALK.COM INC
1100 NW 163RD DR STE 3
N MIAMI BEACH FL 33169
E-MAIL: nick(ßnettalk.com
'k~
SECRETARY
CERTIFICATE OF SERVICE