20130524Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL

DATE: MAY 21, 2013

SUBJECT: TNCI OPERATING COMPANY’S CPCN APPLICATION
CASE NO. TOC-T-13-01

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. This memorandum refers to the Application, as amended by the
revised price lists, as the “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 says it does not yet provide telecommunications services, but that it is
authorized to provide them in Montana and 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 says it 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. 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.
DECISION MEMORANDUM 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 Nation 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 Idaho that are currently open, and that become open, to competition. Id. at 4. The
Company will compete with CenturyLink and Verizon for the provision of local exchange
services. Id.
The Company says it has not yet entered into or requested interconnection/resale
agreements in Idaho. But where necessary, the Company has made arrangements with
underlying carriers to assume the existing interconnection/resale agreements of Trans National as
part of 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 operations in Idaho. The Company
provides pro forma financial information to support its Application. The Company also notes
that its managers have significant experience in the telecommunications industry, and that it will
share many of Trans National’s customer service, technical, operational, and managerial
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 the Commission’s rules. Id. at
6. The Company says it will start providing service consistent with the Commission’s approval
of the Application. Id. at 4.
DECISION MEMORANDUM 3
STAFF RECOMMENDATION
Staff recommends that the Commission process the Company’s Application under
Modified Procedure with a 21-day comment period.
COMMISSION DECISION
Does the Commission wish to process the Company’s Application under Modified
Procedure with a 21-day comment period?

M:TOC-T-13-01_kk