20150508final_order_no_33296.pdf

Office of the Secretary
Service Date
May 8,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TALK AMERICA )
SERVICES,LLC’S APPLICATION FOR A )CASE NO.TAL-T-14-O1
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY TO PROVIDE RESOLD )
LOCAL EXCHANGE AND )ORDER NO.33296
INTEREXCHANGE SERVICES )
_________________________________________________________________________________________
)
On September 19,2014,Talk America Services,LLC (Talk America)applied to the
Commission for a Certificate of Public Convenience and Necessity (CPCN)authorizing it to
provide resold local exchange and interexchange telecommunications services to residential
customers in Idaho.The Commission issued a Notice of Application and Notice of Modified
Procedure with a 21-day comment period.Order No.33268.Commission Staff was the only
party to file written comments.Having reviewed the record,we grant the Company’s
Application for a CPCN as set forth below.
THE APPLICATION
Talk America is a Delaware limited liability company,authorized to do business in
Idaho.Application at 5,Exhibit C.Its principal place of business is in Little Rock,Arkansas.
Id.at 5.Talk America is a subsidiary of Communications Sales &Leasing,Inc.(CSL),a
Maryland corporation,which is also Talk America’s sole member.Id.In its Application,Talk
America proposes to “provide resold local exchange,resold interexchange and broadband
telecommunications services to residential customers”currently subscribed to Windstream
Holdings,Inc.(Windstream).Id.at 1-2.
Talk America’s Application is part of or related to a corporate transaction involving
Windstream and CSL.Id.at 1-2.In that transaction,Windstream will divide into an operating
unit (providing telecommunications and related services)and a real estate investment trust
(holding title to distribution plant assets).Id.at 2.The investment trust’s assets,which include
copper,fiber,and real estate assets,will be transferred to CSL which will then lease the assets
back to Windstream on a long-term basis.Id.at 2.If the Commission approves Talk America’s
Application,Windstream intends to “transfer all of [its operating unit’s]residential local
exchange and long distance customers to [Talk America].”Id.at 2.
ORDER NO.33296 1
Talk America seeks authority to provide local exchange services,and intends to
provide interexchange services,to and from all points in the State of Idaho.Id.at 6.Talk
America “will initially only resell the services [offered by Windstream],and in the future will
amend its certification if it decides to offer services as a facilities based provider.”Id.at 3.Talk
America does not intend to construct any new facilities in Idaho at this time.Id.Its network
“will consist of leased facilities provided by other carriers.”Id.Talk America intends to
“provide services at the same rates and under the same terms and conditions”as they are
currently provided by Windstream.Id.at 7,Exhibit E.
Exhibit A to the Application describes Talk America’s management team’s
background and experience.Talk America also provided its formation documents.Exhibit B.
Talk America asserts that its financial information provided in Exhibit D is exempt from public
disclosure per Commission Rule 67.IDAPA 31.01.01.067.Talk America “agrees to comply
with all applicable Idaho laws and Commission rules and regulations.”Application at 8,Exhibit
F.
THE STAFF COMMENTS
Staff reviewed Talk America’s Application and supplemental filings for compliance
with applicable legal requirements for obtaining a CPCN.Based on its review,Staff does not
oppose the transfer of the Windstream customers to Talk America.Staff believes the Company
understands and agrees to comply with the Commission’s rules and requirements.Staff believes
Talk America has fulfilled all requirements for a CPCN and recommended approval of the
Company’s Application.
DISCUSSION AND FINDINGS
Based on our review of the record,including the Company’s Application and Staff’s
comments,we find that the Company’s Application complies with the requirements for a CPCN.
Rule 114 sets forth the requirements that competitive local exchange carriers —such as Talk
America —must satisfy to obtain a CPCN.IDAPA 31.01.01.114.We find that Talk America has
provided all needed information in its Application,including financial information.We also find
that the Company is aware of and has agreed to comply with this Commission’s rules.We
further find that Talk America’s acquisition of Windstream customers under existing rates,terms
and conditions is reasonable.For these reasons,we approve Talk America’s Application for a
ORDER NO.33296 2
CPCN to provide resold local exchange and interexchange,and broadband telecommunications
services to residential customers in Idaho.
ORDER
IT IS HEREBY ORDERED that Talk America Services,LLC’s Application for a
Certificate of Public Convenience and Necessity is granted.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §62-6 19.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2015.
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MACK A.REDFORD,COMMISSIONER
KRfTFNE RAPER,Ck)MMISSIONER
ATTEST:
Jn D.Jewell
Commission Secretary
O:TAL-T-14-O1_djh2
ORDER NO.33296 3