20080411Comments.pdf

KRISTINE A. SASSER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BARNO. 6618
F(E,C
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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 )
SAGE TELECOM, INC. FOR A CERTIFICATE) CASE NO. SGE-T-07-1
OF PUBLIC CONVENIENCE AND NECESSITY )
TO PROVIDE LOCAL EXCHANGE )
TELECOMMUNICATIONS SERVICES. ) 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 Order No.
30518, the Notice of Application and Notice of Modified Procedure issued on March 21,2008,
submits the following comments.
BACKGROUND
On August 15,2007, Sage Telecom, Inc. (Sage; Company) fied an Application for a
Certifcate of Public Convenience and Necessity (CPCN) to provide facilties-based and resold
local exchange telecommunications services to and from all points in the State of Idaho.
STAFF COMMENTS 1 APRIL 11, 2008
APPLICATION
Sage is a Texas based corporation. The Company asserts that it is authorized to provide
services in 15 states, offering local and long distance phone services and Internet access services
throughout the former territory of Southwestern Bell Communications Services, Inc.
The Company intends to begin offering basic local exchange services, custom callng
features, and interexchange toll services (including toll free services) to business and residential
customers shortly after it obtains authorization from the Commission.
Although the Company does not intend to immediately begin providing service in areas
with small or rural local exchange carriers, it seeks statewide authority so that it may expand
when market conditions warant and as additional service areas become open to competition.
STAFF ANALYSIS
After working with Staff to correct its filing, the Company issued its final filing on
February 12,2008. The Company indicated that it does not intend to collect advance payments
or deposits and requests a waiver of the escrow account requirement. All other aspects of the
Company's filing now comports with Idaho Statutes and the Commission's Rules.
Staff reviews all requests for a CPCN certificate pursuant to Idaho Code § 62-604; -615,
IDAPA 31.01.01.111 and 112 (Rules 111 and 112), and Procedural Order No. 26665. To obtain
a CPCN, an Applicant must provide the Commission with the following information: (1) name,
address, and form of business; (2) the date on which the applicant proposes to begin constrction
or anticipates that it wil provide service, including a written description of customer classes and
services proposed to be offered; (3) the proposed service terrtory; (4) certain financial
information; (5) maps regarding the proposed service area; (6) a proposed initial tarff and price
sheets; (7) contact information; (8) interconnection agreements if any; (9) an agreement to
comply with the Commission's Rules; and (10) an escrow account with a bonded escrow agent if
the company requires advance deposits from its customers. Order No. 26665. The Company has
asked that the Commission grant a waiver of its escrow account requirements as the Company
wil not be requiring deposits from its customers.
Through its review of the Application and numerous discussions with the Company, Staff
has determined that the Company's filing complies with the requirements of the Commission.
STAFF COMMENTS 2 APRIL 11, 2008
Staff fuher believes that the Company possesses the requisite financial, managerial and
technical qualifications necessary to operate as a provider of telecommunications services.
RECOMMENDATIONS
Based on its review of the Application, Staff recommends approval of the Application for
a Certificate with a waiver of the escrow account requirement. In the future, should the
Company decide to collect deposits, it must comply with the escrow requirements as well as the
Commission's rules for interest on deposits.
Respectfully submitted this t:Á.
II - day of April 2008.
Kr~~se~ () ~
Deputy Attorney General
Technical Staff: Carolee Hall
i:umisc:commentsisget07. i ksch
STAFF COMMENTS 3 APRIL 11, 2008
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 11TH DAY OF APRIL 2008,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. SGE-T-07-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
ROBERT W. McCAUSLAND
VICE PRESIDENT 7 SECRETARY
SAGE TELECOM, INC.
SUITE 100
805 CENTRAL EXPRESSWAY
ALLEN, TX 75013
SCOTT D. WOODS
BINGHAM McCUTCHEN LLP
2020 "K" STREET NW
WASHINGTON DC 20006
~~
SECRETA
CERTIFICATE OF SERVICE