20040601Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:MAY 27, 2004
RE:CASE NO. QCC-04-
APPLICATION OF QWEST COMMUNICATIONS CORPORATION FOR
AN AMENDMENT TO ITS CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY
On September 3, 2002, the Commission issued Certificate No.402 to Qwest
Communications Corporation (QCC) granting it authority to provide basic local
telecommunication exchange services within Verizon Northwest Inc.' s service area. On April 2
2004, QCC filed an Application for an amendment to its CPCN to enable it to provide local
services throughout the State of Idaho, including within the service area of Qwest Corporation
(QC), QCC's parent corporation. The Commission on May 12, 2004, issued a Notice
Application and Notice of Modified Procedure to process QCC's Application.
Staff reviewed the Application and filed written comments. Staff stated its concern
that customers could be confused with the two Qwests offering basic local exchange service in
the same marketplace. Staff requested clarification from QCC regarding its intentions to provide
services, and QCC's director of regulatory affairs clarified that QCC did not intend to actively
seek residential and small business customers. Instead, QCC desired the authority to provide
related services to customers in large business markets in which it would be actively marketing
its services on a regional or national basis. QCC may have an opportunity to provide service to
large customers with remote offices that would qualify as small businesses, and the Company
stated it needed flexibility to be able to provide basic local exchange service to those customers
under a single corporate entity.
DECISION MEMORANDUM
Written comments were also filed by the Idaho Telephone Association. As it has in
other cases where CLECs are requesting authority to provide services throughout the state, IT A
recommends the Order approving the Certificate to QCC recognize the exemption of rural
telephone carriers from the obligations of incumbent local exchange carriers under Section
251(c) of the 1996 Telecommunications Act.
Staff recommends the Commission approve the amendment to QCC's Certificate, and
that the Commission be prepared to respond if marketing efforts by QCC and QC results in
customer confusion. The Commission s Order should also note the exemption provided to rural
exchange carriers pursuant to Section 251 (c) of the Telecommunications Act.
COMMISSION DECISION
Should the Application of Qwest Communications Corporation for amendment to its
Certificate of Public Convenience and Necessity be approved?
~--~ ~
Weldon Stutzman
Vld/M:QCCTO40 1- ws2
DECISION MEMORANDUM