20130625final_order_no_32836.pdf

Office of the Secretary
Service Date
June 25,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TNCI OPERATING )
COMPANY LLC’S APPLICATION FOR A )CASE NO.TOC-T-13-O1
CERTIFICATE OF PUBLIC CONVENIENCE )AND NECESSITY TO PROVIDE LOCAL )EXCHANGE AND EXCHANGE ACCESS )ORDER NO.32836
TELECOMMUNICATIONS SERVICES )
On April 30.2013,TNCI Operating Company LLC (the “Company”)applied to the
Commission for a Certificate of Public Convenience and Necessity (“CPCN”)authorizing the
Company to provide resold and facilities-based local exchange and exchange access
telecommunications services in Idaho.On May 7,2013,the Company amended the Application
by filing revised price lists.’On May 29,2013,the Commission issued a Notice of Application
and Notice of Modified Procedure that solicited public input on the Application and set a June
19,2013 comment deadline.See Order No.32818.Commission Staff filed the only comments
in the case and supported the Company’s Application.Having reviewed the record,the
Commission approves the Company’s Application for a CPCN as set forth below.
THE APPLICATION
In its Application,the Company says it is a Delaware limited liability company that is
authorized to do business in Idaho.Its principal place of business is in Santa Barbara,California.
The Company is wholly owned by TNCI Holdings LLC,which also is its manager.Application
at 3-4.
The Company does not yet provide telecommunications services,but it is authorized
to provide them in Montana and is obtaining authority to provide them in all of the contiguous
United States,Hawaii,and the District of Columbia.Id.at 1-2.Further,the Company is buying
the bankruptcy assets of Trans National Communications International,Inc.(“Trans National”),
a company that the Commission has authorized to provide local exchange service (including
exchange access)in Idaho.Id.at 1,citing Commission Order No.29637.According to the
Company,these assets include customer accounts and contracts,telecommunications equipment,
and where allowed by law,the licenses needed to provide telecommunications services.Id.at 7.
The Company says it will notify the Commission when the sale is completed.Id.at 2.
This Order refers to the Application,as amended,as the “Application.”
ORDER NO.32836 1
telecommunications services.Id.at 7.The Company says it will notify the Commission when
the sale is completed.Id.at 2.
The Company does not plan to build new facilities.Rather,it is buying Trans
National’s assets and operations and will operate that business as configured.Id,at 2.The
Company intends to provide the same facilities-based and resold local exchange.exchange
access telecommunications services to business customers that Trans National provides.Id.at 2.
The Company says that granting the Application will promote the public interest by permitting
Trans National’s existing customers to be assigned to a financially stable company that will
continue to provide service without interruption.Id.at 7.
The Company intends to provide services including:(1)basic local exchange services
and ancillary services like custom calling features,(2)dedicated Internet Protocol-enabled,
integrated voice and data services,and (3)private line,frame relay and other non-voice services.
The Company’s network will primarily consist of facilities leased from other carriers,although it
may deploy its own facilities.Id.at 2.The Company seeks to provide services to and from all
points in Idaho that are currently open,and that become open,to competition.Id.at 4.The
Company will compete with CenturyLink and Verizon to provide local exchange services.Id.
The Company has not yet entered into or requested interconnection/resale agreements
in Idaho.But the Company has arranged with underlying carriers to assume Trans National’s
interconnection/resale agreements through the bankruptcy process.Id.at 6.The Company plans
to use the existing local exchange boundaries and established local calling scope of the
incumbent local exchange carriers in Idaho.Id.
The Company says it is financially,managerially,and technically qualified to
establish and operate its proposed telecommunications business in Idaho.The Company
provides pro forma financial information to support its Application.It also notes that its
managers have significant experience in the telecommunications industry,and that it will share
many of Trans National’s personnel.Id.at 2-3.The Company represents that its operations will
meet high standards for service quality and reliability,and will emphasize customer service.Id.
at 3 and 7.
The Company says it will comply with Idaho law and rules and will provide service
consistent with the Commission’s approval of the Application.Id.at 4-6.
ORDER NO.32836 2
THE COMMENTS
Staff reviewed the Company’s Application to ensure it satisfied the requirements for
obtaining a CPCN,including RP 114 (specifying the information to be included in a CPCN
application).Based on that review,Staff believes the Company’s filing satisfies the
Commission’s requirements for the issuance of a CPCN.Staff believes the Company
understands and will comply with the Commission’s rules and requirements.Staff also believes
the Company possesses the requisite financial,managerial,and technical qualifications necessary
to provide local exchange telecommunications services.Staff thus recommended the
Commission issue a CPCN to the Company,subject to the following conditions:
1.The Company must comply with the number pooling and reporting
requirements of the North American Numbering Plan Administrator
(NANPA).2
2.The Company must comply with all reporting and contribution
requirements of Idaho’s Universal Service Fund (USF;Idaho Code §62-
610;IDAPA 3 1.46.01),Telecommunications Relay Services (TRS)
program (Idaho Code §61-1304;IDAPA 31.46.02);and
Telecommunications Service Assistance (TSA)program (Idaho Code §
56-904);
3.The Company must comply with all future reporting requirements that the
Commission deems appropriate for competitive telecommunications
providers;
4.The Company must file a final price list with all its rates,terms,and
conditions with the Commission before the CPCN will issue;and
5.The Company must relinquish its CPCN and all telephone numbers if,
within one year of the issuance of a CPCN,the Company is not providing
basic local exchange service in Idaho.4
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 RP 114.We thus approve the
2 See Commission Order No.30425.
See Commission Order Nos.32637,32524,and 32526.
‘“Basic local exchange service’means the provision of access lines to residential and small business customers
with the associated transmission of two-way interactive switched voice communication within a local exchange
calling area.”Idaho Code §62-603(1).
ORDER NO.32836 3
Company’s Application for a CPCN to provide local exchange telecommunications services in
Idaho,subject to the following conditions:(1)the Company must comply with the NANPA’s
number pooling and reporting requirements;(2)the Company must comply with all reporting
and contribution requirements of Idaho’s USF,TRS program,and TSA program;(3)the
Company must comply with all future reporting requirements that the Commission deems
appropriate for competitive telecommunications providers;(4)the Company must file a final
price list with all its rates,terms,and conditions before the CPCN will issue;and (5)the
Company must relinquish its CPCN and all telephone numbers if the Company is not providing
local exchange telecommunications services in Idaho within one year after the CPCN issues.
ORDER
IT IS HEREBY ORDERED that the Company’s Application is approved and the
Company shall be issued a CPCN subject to the above conditions.
THIS IS A FINAL ORDER.Any person interested in the 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.See Idaho Code §61-
626.
ORDER NO.32836 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2013.
.
PAUL KJELLA L,PRESIDENT
s2
MACK A.REDFO>,C M ISSIONER
7,’-‘
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jan D.Jewell (JCommissionSecretary
O:TOCT-I 3-OIkk2
ORDER NO.32836 5