20020807Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSON
JOE CUSICK
CAROLEE HALL
WAYNE HART
DOUG COOLEY
BEVERLY BARKER
RON LAW
GENE FADNESS
TONYA CLARK
WORKING FILE

FROM: BIRDELLE BROWN

DATE: AUGUST 7, 2002

RE: TSUNAMI COMMUNICATIONS, INC. REQUEST TO WITHDRAW ITS TELEPHONE SERVICE TO APARTMENTS IN IDAHO AND ITS CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY NO. 365

In September 2000, Tsunami applied for a Certificate to provide prepaid local service and the Application was approved by Order No. 28584. Tsunami posted the required $40,000 indemnity bond (which is to remain in force until the Commission issues an order to release the surety) and has a tariff on file.

On July 29, 2002, we received “notice” from Tsunami Broadband, Inc. stating that it intended to withdraw its Certificate of Public Convenience and Necessity (Certificate No. 365). Accompanying this notice was a copy of a customer notice dated July 9 and apparently mailed on July 19 to its customers saying that Tsunami was in the process of turning its telephone service over to Qwest Communications. Customers were instructed to contact Qwest to assure that their phone service would be successfully transferred, but there was no deadline. Tsunami intended to stop service on July 31. A copy of the notice is attached.

On July 26, Qwest advised Staff that it might not make this transfer of customers by July 31 for several reasons, one being that they needed at least 6 working days to effect the transfer. Another problem was that Qwest did not have Letters of Authority or any authorization from Tsunami customers authorizing Qwest to provide telephone service to them. Qwest asked for an extension. Staff arranged for Tsunami to extend its date of discontinuing service to August 10.

Tsunami serves about 16 apartment houses totaling approximately 200 Idaho end-user customers. Tsunami resells Qwest’s lines to these customers. At the present time only 28 end-user customers have requested that their service be transferred to Qwest. Qwest is reluctant to commit to serving the remaining customers without their specific authorization. However, if Qwest disconnects them, some 180 customers may be left without service unless they have arranged for service from a wireless carrier or from someone else.

At the present time, there are three options: (1) The Commission could to try to persuade Tsunami to postpone its termination of service in the hopes that more customers would notify Qwest that they want to change, (2) Qwest could disconnect Tsunami, resulting in the termination of any telephone service for the 200 end user customers, or (3) Qwest, as underlying carrier, could continue to serve the Tsunami customers.

Qwest has advised Staff that it prefers that the Commission order Tsunami to postpone its disconnection of service for one more week during which time Qwest will make at least three attempts to contact each customer and place a proper order for conversion. (Since receiving this information, Staff has so far been unable to reach Tsunami by telephone.) Qwest’s alternative is that the Commission issue an order requiring Qwest to “force convert” only the primary lines of Tsunami’s accounts and authorize Qwest to receive the revenue to which it is entitled for the provision of this service.

STAFF RECOMMENDATION

Staff recommends that the Commission adopt option (3) and issue an order authorizing Tsunami to withdraw its service to these customers and authorizing Qwest to provide full, uninterrupted service to them. Staff acknowledges that there will be a number of administrative problems to be resolved, but they can hopefully be resolved at a later date.

Staff further recommends that the Commission cancel Tsunami’s Certificate and tariff and release our requirement for an indemnity bond after 90 days. Does the Commission agree?

________________________________
Birdelle Brown
corresp/dmemos/cpcns/tsunamiwithdrawal

DECISION MEMORANDUM 1 August 7, 2002