20040511Final Order No 29495.pdf

Office of the Secretary
Service Date
May 11 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SOUTHWESTERN BELL COMMUNICATIONS
SERVICES, INC. DBA SBC LONG DISTANCE
FORA CERTIFICATE OF PUBLIC
CO NVENIEN CE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE
TELECOMMUNICATIONS SERVICES.
) CASE NO. SBC- T -04-
ORDER NO. 29495
On February 20, 2004, Southwestern Bell Communications Services, Inc. dba SBC
Long Distance ("SBCS") filed an Application for a Certificate of Public Convenience and
Necessity ("CPCN") to provide resold and facilities-based local exchange and exchange access
service within the State of Idaho. SBCS is a wholly owned subsidiary of SBC Communications
Inc. SBCS operates as a separate entity from its parent corporation and does not maintain a
management agreement with its parent. SBCS is organized under the laws of the State of
Delaware and has filed a copy of its Certificate of Authority issued by the Idaho Secretary of
State.
The Commission issued a Notice of Application and Notice of Modified Procedure in
this case on March 22, 2004. Order No. 29449. The Commission Staff and Idaho Telephone
Association ("ITA") filed written comments in response to this Notice. Based on the comments
the law, and the record, the Commission grants the Company s Application.
STAFF RECOMMENDATION
Staff reviewed the information provided by SBCS and believes it satisfies the
requirements of Commission Rule of Procedure 111 , IDAP A 31.01.01.111 and Procedural Order
No. 26665 issued November 7, 1996.
Staff stated that SBCS intends to provide basic resold and facilities-based local
exchange services to both residential and commercial customers and exchange access services to
interconnecting carriers. The Company s Application indicated it would not initially construct
facilities, but that it would provide services primarily via the unbundled network elements and
resold services. The Company also stated that it would provide service in the areas currently
served by Qwest and Verizon but that in the future might compete against all incumbent local
ORDER NO. 29495
exchange carriers. Staff noted that SBCS has been granted authority to provide long-distance
service nationwide, including Idaho. The Company is seeking certification to provide
competitive local exchange services in all 37 states outside of its parent corporation s incumbent
local exchange carrier service territory.
Staff also stated that the Application included financial information about the parent
company that indicated SBCS was in a strong financial position. Thus, Staff believes that the
Company has the technical, managerial and financial strength to provide the services identified
in this Application.
SBCS stated in its Application that it has reviewed all Commission Rules and agrees
to comply with those rules. Furthermore, it has provided an illustrative tariff with its Application
that demonstrates an understanding of the tariff requirements and processes.
In conclusion, Staff recommends that the Commission grant SBCS' s Application and
provide it a Certificate of Public Convenience and Necessity to provide competitive local
exchange service in Idaho.
ITA'COMMENTS
ITA stated that any grant of a CPCN to SBCS should be subject to the exemption of
ITA members from the obligations of incumbent local exchange carriers under Section 251 (c) of
the 1996 Act, until such time as the requirements for lifting such exemption contained in Section
251(f) of the 1996 Act have been met.
COMMISSION FINDINGS
Based on the comments, the law, and the record, the Commission grants the
Application. The Commission further finds that this grant of a CPCN to SBCS is subject to the
exemption of ITA members from the obligations of incumbent local exchange carriers under
Section 251 (c) of the 1996 Act, until such time as the requirements for lifting such exemption
contained in Section 251(f) of the 1996 Act have been met.
ORDER
IT IS HEREBY ORDERED that SBCS' s Application for a Certificate of Public
Convenience and Necessity is granted. Furthermore, this grant of a CPCN to SBCS is subject
the exemption of Idaho Telephone Association members from the obligations of incumbent local
exchange carriers under Section 251 (c) of the 1996 Act, until such time as the requirements for
lifting such exemption contained in Section 251(f) of the 1996 Act have been met.
ORDER NO. 29495
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. SBC-04-
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 or interlocutory Orders previously issued in this
case. Within seven (7) days after any person has petitioned for reconsideration, any other person
may cross-petition for reconsideration. See Idaho Code ~~ 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of May 2004.
If
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PAUL KJELLANDER, PRESIDENT
~A- ~J.
MARSHA H. SMITH, COMMISSIO
IS S. HANSEN, COMMISSIONER
ATTEST:
~ill. je D. Jewel
ission Secretary
0: SBCT040 jh2
ORDER NO. 29495