20070712final_order_no_30370.pdf

Office of the Secretary
Service Date
July 12 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SILVER STAR TELEPHONE C9MP ANY
INc. FOR AN INVESTMENT TAX CREDITFOR INSTALLING QUALIFYING BROADBAND EQUIPMENT
CASE NO. SIL-07-
ORDER NO. 30370
On April 12, 2007, the Commission received an Application from Silver Star
Telephone Company, Inc. ("Silver Star ) asking for approval of a broadband tax credit pursuant
to Commission Order No. 28784 and Idaho Code ~ 63-30291(4). In order to be eligible to obtain
the tax credit, the taxpayer must first obtain an Order from the Commission "confirming that the
installed equipment is qualified broadband equipment." Id. In the case of a telecommunications
carrier, such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network." Idaho Code ~ 63-30291(3)(b)(i).
THE APPLICATION
Silver Star s Application states that it has installed central office equipment and fiber
optic cables to provide DSL and T1 services to Idaho customers. The Application indicates its
service provides speeds of between 64 000 and 1.5 million bps for uploads from customers, and
256 000 and 1.5 million bps for downloads to customers. In subsequent conversations with
Staff, Silver Star corrected the minimum upload speed to 128 000. The Company states that the
equipment is necessary and integral to its broadband network and that 100 percent of the
investment will be used to provide service to Idaho customers. The Application identified
approximately $17 000 of investment in 2006.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Silver Star
and found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
30291(3)(b). Staff determined that Silver Star s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bps to a subscriber and at least 125 000 bps from a subscriber.
Idaho Code ~ 63-30291(3)(b). Staff also determined that Silver Star is a telecommunications
carrier and its equipment is "necessary to the provision of broadband service and an integral part
of a broadband network." Idaho Code ~ 63-30291(3)(b)(i). Therefore, Staff recommended that
ORDER NO. 30370
the Commission issue an Order approving the Application and that the approving Order, along
with a copy of Silver Star s Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted. Silver
Star has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that Silver Star is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. Id. It is therefore appropriate for the Commission
to issue this Order confirming that the equipment identified in Silver Star s Application is
qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Silver Star Telephone Company, Inc.'s Application
for an Order certifying that it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Silver Star
Application be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) 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. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 30370
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.
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day of July 2007.
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PAUL KJELLANDER, PRESIDENT
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MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COMMAsIONER
ATTEST:
O:SIL-07-
ORDER NO. 30370