20090731Comments.pdf

KRISTIE A. SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BARNO. 6618
RECEIVE
2009 JUL 31 AMI!: 39
IDAHO PUBUÇ ,r'.:
UTiLITIES COM¡Yll~S¡Ü¡'t
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 )
NEUTRAL TANDEM-IDAHO, LLC, FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY TO PROVIDE LOCAL )
EXCHANGE TELECOMMUNICATIONS )SERVICES. )
)
CASE NO. NTM-T-08-2
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Kristine A. Sasser, Deputy Attorney General, and in response to the Notice of
Modified Procedure issued in Order No. 30858 on July 10,2009, in Case No. NTM-T-08-2,
submits the following comments.
BACKGROUND
On November 24, 2008, Neutral Tandem-Idaho, LLC (Neutral Tandem), fied an
Application for a Certificate of Public Convenience and Necessity (CPCN) to provide resold and
facilities-based local exchange services in the State ofIdaho. Specifically, the Company proposes
to offer local telecommunications services to business customers, including small business
customers as defined in Idaho Code § 62-603. See Revised Ilustrative Tariff at 66.
Neutral Tandem seeks authority to provide all forms of local exchange and interexchange
services throughout Idaho. The Company wil offer resold and facilities-based local exchange
STAFF COMMENTS 1 JULY 31, 2009
and interexchange service and intends to deploy its own switching platform facilities in collocated
sites throughout Idaho as well as lease fiber optic facilties. The Company maintains that where it
lacks facilties or where customer demand warrants, Neutral Tandem intends to resell the services
of the underlying carier. The Company anticipates providing service in areas curently served by
Qwest and does not plan to provide service to areas served by small or rural local exchange
cariers.
Neutral Tandem is a limited liability company headquarered in Delaware and is a wholly-
owned subsidiary of Neutral Tandem, Inc. Although the Company will not have an office
location in Idaho, its registered agent for service in Idaho is Corporation Service Company,
located in Boise.
STAFF ANALYSIS
In Neutral Tandem's Application, the Company states that it expects to provide service
shortly after obtaining Commission authorization and wil enter into interconnection and service
arangements with Qwest Corporation or other certificated facilties-based cariers.
The company affirms it has reviewed the laws and regulations of the Commission
governing local exchange telecommunications services in Idaho and will provide service in
accordance with Idaho's laws, rules, and regulations. Application at 7.
With its Application, the Company provided financial statements for Neutral Tandem, Inc.
and its subsidiaries for 2005, 2006, and 2007. In addition, the Company provided an ilustrative
Tarff No. 1 for interlata and intralata communications services and ilustrative Tariff No. 2 for
intrastate interexchange telecommunications services.
The Company plans to offer a local exchange service referred to as "Secure Line," which
is described as two-way voice grade service with local and intralata callng capabilties with
access to emergency services, operator services, directory assistance, number portabilty, and
Telecommunications Relay Service. Id. at 67.
Prior to this Application, Neutral Tandem submitted an Application for CPCN approval to
the Commission on May 23,2008. However, following communication with Staff, the Company
withdrew its initial Application on July 21, 2008. See Case No. NTM-T-08-01. This Application
is the second filing by the Company. After several emails and conversations between the
Company and Staff, a revised price list was submitted and the Company chose to proceed with its
STAFF COMMENTS 2 JULY 31, 2009
Application with the knowledge that Staff would recommend to the Commission that certain
conditions be met in order for the Company to obtain a CPCN.
STAFF RECOMMENDATIONS
Staff has reviewed the Application by Neutral Tandem and believes the Company
understands and agrees to comply with Commission Rules of Procedure 111 (IDAPA
31.01.01.111) and Procedural Order No. 26665. Staff believes that the Company possesses the
requisite financial, managerial, and technical qualifications necessar to operate as a provider of
telecommunications services. Staff, therefore, recommends Commission approval of the
Application for a Certificate of Public Convenience and Necessity subjectto the following
conditions:
1. Compliance with the Number Pool Administration and Idaho Commission Order No.
30425 mandating number resource utilzation forecast (NRUF) reporting requirements;
2. Contribution to the Idaho Universal Service Fund (USF), Idaho Telecommunications
Relay Service (TRS), Idaho Telephone Service Assistance Program (ITSAP), and any
future reporting requirements deemed appropriate for competitive telecommunications
providers;
3. Upon approval of this Application, Neutral Tandem wil issue a final price list under Case
No. NTM-T-08-02, at which time a certificate wil be issued; and
4. The Company agrees that it wil relinquish its certificate and any telephone numbers if it is
not doing business within one year of its issuace of a CPCN.
Respectfully submitted this 3Jg day of July 2009.
~'a~~q.v'JListine A. Sasser
Deputy Attorney General
Technical Staff: Grace Seaman
i: umisc: commentsntmt082ksgs.doc
STAFF COMMENTS 3 JULY 31, 2009
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 31sT DAY OF JULY 2009,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. NTM-T-08-02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
PATRICK D CROCKER
CROCKER & CROCKER PC
4TH FLOOR
107 KALAMAZOO BUILDING
KALAMAZOO MI 49007
E-MAIL: Patrickíicrockerlawfrm.com
JolaiSECRETA~
CERTIFICATE OF SERVICE