20060606Application.pdf

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Verizon Northwest Inc.
20575 NW Von Neumann
Suite 150
Hillsboro, OR 97006-4771
June 1 , 2006
Ms. Jean Jewell
Commission Secretary
O. Box 83720
Boise, Idaho 83720-0074
1/2/1)-1'-
RE: Broadband Tax Credit for 2005 Investment
Dear Ms Jewell:
Enclosed for filing with the Commission is the application ofVerizon Northwest Inc. for
a broadband tax credit for 2005. Verizon requests that the Commission find the
Company eligible to receive and Idaho tax credit and that the broadband equipment
installed in 2005 meets the definition of qualified broadband equipment as set out in
Idaho Code 63-30291 (3)(b).
1. Name and address of the applicant including a contact person in the event
that there are questions regarding the application and its content.
Renee Willer, 20575 NW Von Neumann, Suite 150, Hillsboro, Oregon 97006-
4771
2. Indicate whether the applicant is a telecommunications carrier, a commercial
mobile service carrier, a cable or video provider, a satellite carrier or other
type of wireless carrier.
Verizon Northwest Inc. is a telecommunications carrier.
3. Identify the area or location where the equipment is installed in Idaho.
The equipment is installed in: Arrow Point, Bayview, Bonners Ferry, Bonners
Mall, Bovill, Center Partners, Chase Flats Estates, Clark Fork, Coeur d' Alene
Deary, Dufort, Genesse, Hayden Lake, Harbor View, Hope, Kellogg, Little Black
Tail, McArthur, McDonald Estates, Moscow, Mountain Home, Newman
Orofino, Peck, Pinehurst, Plummer-Worley, Post Falls, Potlatch, Prairie Estates
Priest River, Rathdrum, Reeder Bay, Sage, Sandpoint, Sourdough Estates, Spirit
Lake, Triangle Development, Wallace
4. Describe the type of broadband services offered to the public in Idaho.
The equipment installed in Idaho in 2005 is used to provide customers with DSL
and high speed data (e.g. T -1) services.
5. State the network transmission rate in bits per second at which subscribers
to the relevant broadband services can send and receive.
OCx - Optical Carrier specification used in A TM/SONET the '' represents a
multiple of 51.84 Mbps transmission (OC3= 3 x 51.84 Mbps, OC24=24 X
51.84Mbps). Mbps = 1 000 000 bits/sec.
ISDN-BRI - Integrated Services Digital Network - Basic Rate Interface. The data
rate is typically 144 Kbps with two (2) B-channels to carry voice/data traffic and
one (1) D-channel for signaling.
ISDN-PRI - Integrated Services Digital Network - Primary Rate Interface. The
data rate is 1.544 Mbps and provides 23 B-channels to carry voice/data traffic and
one (1) D-channel for signaling.
DSL - Digital Subscriber Line - is a communication technology that uses existing
twisted-pair telephone lines to transport high-bandwidth data, such as Internet
multimedia, and video. SDSL and ADSL are the two varieties ofDSL services.
ADSL is drawing significant attention from service providers because it promises
to deliver high-bandwidth data rates to dispersed locations with relatively small
changes to the existing telephone company infrastructure at a reasonable cost.
Download speeds can range from 138 Kbps to 6Mbps from the service providers.
SONET - Synchronous Optical Network is designed to take advantage of high-
speed transmission rates available with fiber. SONET is expected to eventually
take the place ofT-carrier facilities as the next generation of high speed time-
division multiplexing. SONET speeds start as low as OC-1 (51.84 Mbps) to
OC48 (2.488 Gbps) and beyond. SONETs are generally designed as a closed
loop 'ring' and are self-healing, if a break in fiber occurs, the transmissions are
automatically rerouted back through the non-damaged portion of the network.
SONET has redundancy built into its architecture.
6. Provide the specific list of the equipment types that the application is
requesting that the Commission determine is qualified broadband
equipment" as defined in Idaho Code 63-30291(3)(b). List the brand,
manufacturer, model numbers, and or other distinguishing features of the
installed equipment.
Please see the attached work order description.
7. Provide the dates and time periods that the broadband equipment was
installed in Idaho.
Please see the attached work order description
8. Provide a written description (including the basic schematics or general
drawings) of the relevant broadband network including a description of how
the installed equipment is an "integral part" of the broadband network.
Please see the attached work order description and network diagrams.
9. Quantify the percentage and number of potential Idaho customers that could
be served with the broadband equipment and the percentage and number of
non-Idaho subscribers that will be/could be served by the broadband
network.
Exchane:e Access Lines % Oualifvine:
Bayview
Bonners Ferry
Bovill
CClark Fork
Coeur d' Alene
Deary
Genesse
Hayden Lake
Hope
Kellogg
Moscow
Orofino
Peck
Pinehurst
Plummer-Worley
Post Falls
Potlatch
Priest River
Rathdrum
Sandpoint
Spirit Lake
Wallace
628
519
286
802
773
684
645
494
843
323
506
870
267
384
1,479
861
1,426
268
747
819
603
226
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
There are no Non-Idaho customers that could be served with the broadband
equipment that was placed.
10. Enclose a statement certifying that the applicant has read the applicable
statutes for broadband investment income tax credit and the applicant
believes that the subject broadband equipment qualifies for the tax credit
under Idaho Code 63-30291.
Please see the attached statement of certification.
If you have any questions concerning this filing, please contact me at [phone].
Renee M. Willer
Regulatory Manager
Verizon Northwest Inc.
IDAHO BROADBAND CERTIFICATION
I hereby certify that representatives ofVerizon Northwest Inc. (the
applicant have read the applicable statutes for the broadband
investment tax credit and the applicant believes that the subject
broadband equipment qualifies for the tax credit under Idaho Code 63-
30291.
Dated: June 1 , 2006
M. Willer
Regulatory Manager
Verizon Northwest Inc.
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