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HomeMy WebLinkAbout20200713Application.pdfilPKT July 9, 2020 Ms. Diane Hanian Commission Secretary ldaho Public Utilities Commission PO Box 83720 Boise, lD 83714 h)ot.0 -T- 2 o-ot hw Officc of Kristophcr E lwomcy, P.C. Counsel to the Competition' Law Office of Kristopher E. Twomey, PC. 1725 I Street, NW Suite 300 Vashington, DC 20006 Phone: 202 681-1850 | Fu:202 517-9175 lcisplokt.net 14TC fiIVES ICI!0 JUL l3 A!{ l0: 50 '. - L r'-!iij.,l l{5r.1i :.t{ t sl:t{SLi,L . ,1 :i ;lftli+di$Sl$r\t Re: Wired or Wireless, lnc. Application for a Certificate of Public Convenience and Necessity to Provide Resold and Facilities-based Local Exchange Telecommunications Services Dear Ms. Hanian: Enclosed for filing please find the Application for a Certificate of Public Convenience and Necessity to Provide Resold and Facilities-based Local Exchange Telecommunications Services submitted on behalf of Wired or Wireless, lnc. Please direct any questions regarding this application to me at 202.681.1850 or via email to kris@lokt.net. 7Kt ly_submitted, E. Twomey Counselto Wired or Wireless, lnc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION Application of Wired or Wireless, lnc To Provide Basic Resold and Facilities-Based Local Exchange Telecom mu nications Services Throughout the State of ldaho ) ) ) ) ) Case No APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE RESOLD AND FACILITIES-BASED LOCAL EXCHANGE TETECOMMUNICATIONS SERVICES Pursuant to IDAPA 31.01.01.114 and the ldaho Public Utilities Commission Order No 32277 in Case No. GNR-T-11-01, Wired or Wireless, lnc. ("WOW" or "Applicant" respectfully requests that the ldaho Public Utilities Commission ("Commission") grant the Company a Certificate of Public Convenience and Necessity to provide local exchange telecommunications services within the State of ldaho. All correspondence, notices, inquiries and other communications regarding this Application should be addressed to: Kristopher E. Twomey Law Office of Kristopher E. Twomey, P.C. L7251Street, NW, Suite 300 Washington, DC 20006 Telephone: 202.581. L850 Facsimile: 202.517.9L75 Email: kris@lokt.net ln support of its Application, Wired or Wireless, lnc. submits the following: 01. Name, Address and Form of Business Wired or Wireless, lnc. ("WOW" or "Applicant") was incorporated in the State of Washington on September 14, 2000. A copy of the Applicant's Certificate of Formation and approval from the ldaho Secretary of State is attached as Exhibit 1. The main address of the corporation is: Wired or Wireless, lnc. L78L3 E Appleway Ave Spokane Valley, WA 99016-8531 Telephone: 509.892.5877 Fax: 509.892.5876 The Company's Registered Agent in ldaho is: William GeibelJr. 516 Larch Street Sandpoint, lD 83864 Officers and Directors ttllt m, t 17813 E APPLEWAY AVE, SPOKANE VALLEY, WA 99016-8531 cEo 17813 E APPLEWAY AVE, SPOKANE VALLEY, WA 99016-8531 coo 17813 E APPLEWAY AVE, SPOKANE VALLEY, WA 99016-8531 cFa Stockholders William Geibel is the only stockholder with a greater than 5% interest in the company 02. Services and Territory WOW proposes to provide localtelecommunications service to business and municipal customers. Even with the migration to voice over internet protocol, some customers demand the reliability of a traditional copper-based telephone line. Moreover, sensitive service applications like fax machines, elevators and security systems require a traditional landline. WOW plans to offer service through resale arrangements with incumbent local exchange carriers. Applicant will not provide operator assisted services; Applicant's underlying carrier will handle calls that require operator assistance. Emergency calls placed by dialing 911 will not be routed to or handled by WOW. Such calls will be routed through the underlying carrier to the appropriate emergency agency serving the originating location. WOW sets the rates for its services and handles its own customer service. All services are offered twenty- four hours per day, seven days a week. 03. Financial lnformation WOW's 2018 and 2019 financial reports are provided in Exhibit 2 04. Tariffs and Price Lists Pursuant to Title 62 of the ldaho Code, the Applicant is electing to operate on a detariffed basis for its local exchange business services and will post its rates, terms, and conditions on its website at www.wow-tel.com. 05. Tariff and Customer Contacts The contact for price list questions and customer complaints with the Commission is: Michael Puryear, CFO Wired or Wireless, lnc. L78L3 E Appleway Ave Spokane Valley, WA 99016-8531 Telephon e : 509.892.5877 Fax: 509.892.5876 mike@wow-tel.com 06. lnterconnection Agreements WOW intends to offer service in the geographic areas currently served by Centurylink. WOW will mirror the basic local calling scopes of the incumbent local exchange companies. 07. Compliance with Commission Rules WOW has reviewed all of the applicable Commission's rules and agrees to comply with those rules. 08. Conservation of Telephone Numbers The Applicant acknowledges that, if it obtains numbering resources in ldaho, it will be subject to numbering conservation measures, including mandatory one thousand block pooling, donation back to the pool of unused or underutilized thousand number blocks, and submission of applicable utilization/forecast reports at the one thousand block level for each rate center within its service territory. Wherefore, Wired or Wireless, lnc. respectfully requests that the Commission L. Grant Wired or Wireless, lnc. authority to operate as a provider of resold and facilities-based basic local exchange telecommunications services within the State of ldaho; 2. Grant such other relief as it deems necessary and appropriate. Respectfu I ly submitted, Kristopher E. Twomey Counsel to Wired or Wireless, lnc. Exhibit 1 Certificate of Existence STATE OF IDAHO Lawerence Denney I Secretary of Stafe Business Office 450 North 4th Street PO Box 83720 Boise, lD 83720 July 9, 2020 Request Type: Certificate of Existence/Filing Request#: 0003936458Receipt#: 000354279 lssuance Dale: 07 10912020 Copies Requested: 0 Regarding: WRED OR WRELESS, lNC. Filing Type: Foreign Business Corporation Formation/Qualifi cation Date: 121 1212007 Status: Active-Good Standing Duration Term: Perpetual File #533333 Formation Locale: WASHINGTON lnactive Date: Certificate of Existence l, Lawerence Denney, Secretary of State of the State of ldaho, do hereby certify that effective as of the issuance date noted above WIRED OR WIRELESS, INC. a Corporation formed in the jurisdiction set forth above, is authorized to transact business in this State. Denney ldaho Secretary of State Processed By: Business Division Verification #'. 008244024 Phone: 208-334-230'1 * Email: business@sos.idaho.gov * Website: sosbiz.idaho.gov Exhibit 2 2018 and 2019 FinancialStatements ll:18 All 01t22t19 Accrual Basis WIRED OR WRELESS, INC. Balance Sheet As of December 31, 2018 Dec 3'1, 18 ASSETS Gurent Assets Checking/Savings Cash Tota! Checking/Savings Accounts Receivable Accounts Receivable Total Accounts Receivable Other Current Assets Undeposited Funds Due to/(from) MooseBytes Contract Receivable lnventory Prepaids Prepaid Tower Rent Prepaid Expenses Total Prepaids Total Other Current Assets Total Curent Assets Fixed Assets Fixed Assets Depreciable Fired Assets Accumulated Depreclation Total Fixed Assets Total Fixed Assets Other Assets lnvestment in lnfinity lnvestment in MooseBytes lntangible Assets Amortizable Assets Total lntangible Assets Accumulated Amortization Symington Loan Total OtherAssets TOTAL ASSETS LIABILITIES & EQUIW Liabillties Cunent Liabilities Accounts Payable Accounts Payable Total Accounts Payable Credit Cards Other Current Liabilities Cutrent Liabilities Prcpaid Services Total Current Liabilities Payroll Liabilities 115,277.74 115,277.74 59,093.42 59,093.42 873.60 23,332.53 2,843.19 212,587.69 9,996.6'l 20,64't.35 30,637.96 270,274.97 444,646.'t3 3,775,584.88 -2,482,661.98 1,292,922.90 1,292,922.90 2,055.95 -50,549.66 710,024.07 710,024.07 -588,100.65 73,429.71 1,810,998.74 31,160.75 3'l ,I 60.75 7,1 1 9.03 262,321.19 262,321.19 25,444.24 3,231.84Sales Tax Payable Page 1 l1:18 Ail 01122119 Accrual Basis WIRED OR WRELESS, !NC. Balance Sheet As of December 31, 2018 Dec 3'1, '18 VOIP Taxes Payable Malden Utllity Tax Curent Portlon Long Term Deb Total Other Current Liabilities Total Cunent Liabilities Long Term Liabilities Long Term Notes Payable LT NP Mountain West Bank Long Term Vehicle Notes Payab LT Lease Notes Payable Total Long Term Notes Payable Cunent Portion of Long Term Debt Total Long Term Liabilities Total Liabilities Equlty Shareholder Distributions Capita! Stock Additional Paid Capital Retained Eamings Net lncome 1,214.80 4.50 307,129.9'l 599,346.48 637,626.26 368,1 18.21 't29,942.35 322,1 56.93 820,217.49 -307,129.91 513,087.58 1 ,150,71 3.84 -1',t,259.11 801,722.89 76,214.46 412,573.51 206,'t 80.17 Total Equity TOTAL LIABILITIES & EQUITY 660,284.90 1,8't 0,998.74 Page 2 ll:15 AM 01122119 Accrual Basis WIRED OR WRELESS, INC. Profit & Loss January through December 2018 Jan - Dec 18 Ordlnary lncome/Erpense lncome Revenue Service Revenue Commissions Earned Equipment Sales Tower Rent Finance Revenue Contra Revenue Bad Debt Total Revenue Total lncome Cost of Goods Sold Cost of Goods Sold taterials BulkRegister (Domain Names) FCG License Fee Equipment Equipment Rental (COGS) Labor Contract Labor(COGS) Tower Fees Freight Travel Small Tools and Equipment Tota! Cost of Goods Sold VolP Services Total GOGS Gross Profit Erpense Selling Expense Administrative Expense Geneal Administrative lnsurance Licensee and Permits Professiona! Services Dues and Subscriptions Employee Training Total General Administrative Office Expenses Shop Supplies Tnvel Payroll Expenses SalariesMages Employee Benefits Payroll Tax Expense Payroll Expenses - Other 2,188,077.12 5,1 00.96 63,723.37 52,478.01 8,063.05 -104,073.00 -2,361 .84 1,400,140.95 71,952.47 13,020.48 '17,860.68 14,287.82 3,958.99 4,417.67 53,545.64 109,658.75 2,210.80 63,966.21 245,766.62 40,195.63 58,2%.16 2,211 ,007.67 2,211,007.67 1'1,937.59 733.88 2,255.00 49,878.52 610.88 332,334.30 2,795.20 387,433.07 10,298.87 99.03 4,042.90 802,419.24 8,447.48 810,866.72 Page 1 l1:15 AM ut2a19 Accrual Basis WIRED OR WIRELESS, INC. Profit & Loss January through December 2018 Jan - Dec 18 Total Payroll Expenses Contract Labor Ofllcer Compensation Officer Salaries Total Offi cer Compensation Taxes WA State Taxes Personal Property Tax Real Estate Taxes per Lease agreementtriple net Total Taxes lncome Taxes lncome Tax lD State lncome Tax Total lncome Tax Total lncome Taxes Total Administrative Expense Amortization/Depreciation Amortization Erpense Deprcciation Erpense Total Amortization/Depreciation lnter€st Expense Total Expense Net Ordinary lncome Other lncome/Expense Other Income lnterest lncome E0099 . Gain/Loss on Assets Total Other lncome Other Expense Charitable Contributions Non Deductlble Political Total Other Erpense Net Other lncome Net lncome 344,256.41 66.00 115,900.00 115,900.00 25,529.65 11,108.14 6,612.41 43,250.20 20.00 20.00 20.00 732,884.0'l 1,546.04 383,525.54 385,071.58 24,745.59 1,214,653.55 185,487.30 928.22 22,435.45 23,363.67 2,520.80 150.00 2,670.80 20,692.87 206,180.17 Page 2 1l:25 A[tl vti27t20 Accrual Bacls WIRED OR WIRELESS, INC. Balance Sheet As of December 31, 2019 ASSETS Current Assets Checklng/Savlngs Gach Total Ghecklng/Savlngs Accounts Recelvable Accounts Recelvable Total Accounts Receivable O0ter Cunent Assets Undeposited Funds Due to(fnom) MooseBytes Contract Recelvable lnventory Prepalds Total Other Cunent Assets Total Current Aseetg Flxcd Assets Fircd Assotg Depreclable Flxed Assets Accumulated Depreclation Total Flxed Assets Total Flxed Assats Odrer Assetr lnvestnont ln Moo$Bytos Due fnom WoW Holdlngs lntanglble A$ets Amort{zable A$etg Total lntanglble Assets Accumulated Amortlzatlon Symlngton Loan To,tal O0ler Assets TOTALASSETS L|ABIUNES & EQUTTY Llabllltlas Cunent Liabllltlss Accounts Payable AccounG PaYable Total Accounts Payable Credlt Cards Credlt Cards Total Crcdlt Cards O0rer Curranl Llabllltles Curent Llabllltlea Prnpald Sewlces Total Current Llabllltles Dec 31, 19 195,697.26 195,697.26 8,611.56 8,611.56 811.01 14,300.6'l 1,911.60 260,731.87 26,447.91 304,203.00 508,511.82 3,563,012.90 -2,36/.,2*.20 '1,198,758.70 1,198,758.70 -22,866.66 9,629.71 710,024.07 710,024.A7 -589,646.69 107,140.43 1,814,4{0.95 15.116.65 1s,116.65 13,822.36 13,822.36 230,322.52 230,322.52 30,967.98Payroll Liabillties Page I ll:25 AItl 04t2il20 Accrual Basle WIRED OR WRELESS, INC. Balance Sheet As of December 31, 2019 D,ec 31, 19 Sales Tax Payable VOIP Taxes Payable Malden lr0llty Tax Current Portlon Long Term Deb Total Other Cunsnt Liabilities Total Cunent Liablllties Long Term Liabllltles Long Term Notes Payable LT NP uountaln West Bank Long Term Vehlcle l,lotes Payab LT Lease Notes Payable Tota! Long Term Notas Payable Current Portion of Long Term Debt Total Long Torm Llabllitlos Total Llabilltles Equlty Gapltal Stock Addltonal Pald Capltal Retalned Eamlngs Net lncome Total Equl$ TOTAL LTABILMES & EQUITY '1,447.24 1,176.60 4.50 264,463.95 528,382.79 557,321.80 251,171.60 136,1,14.65 218,277.35 605,593.60 -264,463.95 341,129.65 898,451.45 801,722.89 76,214.46 -170,658.03 208,680.18 915,959.50 {,814,410,95 Page 2 11227 NIi 0427n4 Accrual Basls WIRED OR WRELESS, INC. Profit & Loss January through December 2019 Jan - Dec 19 Ordlnary lncome/Expenre lncome Revenue Servlce Revenue Gommlssions Eamed Equlpment Sales Tower Rent Travel Finance Rgvenue Contra Revenue Bad Debt Toh! Revenue Total lncome Cost of Goods Sold Cost ofGoods Sold Mderials BulkReglster (Domain Names) Equlpment Equlpment Rental (GOGS) Labor Gontract Labor(COGS) Tower Fees Frelght Travel Small Tools and Equlpment Total Cost of Goods Sold VolP Services Total COGS Gross Profit Erpense Selllng Expense Mmlnlstratlva Expense Genera! Admlnistratlve lnsurance Liablllty Insurance Total lnsurance Llcenses and Permltr Profesrlonal Servlceg Dueg and Subscrlptlons Employee Tralnlng Total General Mmlnlstrallve Offlce Expenses Shop Suppliec Travel Payroll Expenses Salarlas/Wages 2,309,174.',t1 3,623.40 42,',t15.45 53,138,94 517.18 7,209.U -'t04,979.89 -3,742.88 2,307,056.15 2,307,056.15 8,023.33 598.8'l 32,417.82 280.34 343,208.69 6,494.97 403,658.08 9,785.65 245.28 2,390.90 807,103.87 3,653.80 810,757.67 1,496,298.48 70,671.68 11,752.73 11,752.73 22,799.39 40,260.20 4,175.59 6,405.84 85,393.75 116,628.43 2,121.95 73,453.96 259,681.25 Page 1 11:27 At* 0/127n0 Accrual Basls WIRED OR WRELESS, INC. Profit & Loss January through December 2019 Jan - Dec 19 Employee Benefita Payroll Tax ExPense Total Paytoll Expenses Gontrac't Labor Cl,fflcer Compensalion Tax.s lncome Taxes lncome Tax lD State lncome Tax Total lncome Tax Total lncome Taxes Total Administrative ExPenso Amorfi zation/Depreciation lnterest ExPense Total Expense Net Ordlnary lncome O0rer IncomelExpense Other lncome Reward lncome 80001 . lnflnlty lncome 80003 . lncome fom Moosebytes Scnp Recycle lntared lncome Wells Fargo Remedlation Settlement 80099 . Galn/Loss on Asseta Total Otlror lncome Other Erpense Charibble Contributions t{on Dsductble Polttical u,752.55 62,320.26 356,754.06 165.00 130,305.60 34,849.69 20.00 20.00 20.00 799,692.44 440,606.49 28,413.37 1,339,383.98 156,914.50 10.00 -1,932.95 59,500.00 36.35 't,081.42 927.74 -a,725.18 52,897.38 971.70 160.00 Total Other E:rpense Net Olher lncome l{et lncome 1,131.70 51,765.68 208,680.18 Page 2 Exhibit 3 Officer Verification VERIFICATION STATE OF WASMNGTON COUNTY OF SPOKAI\IE I, William B. Geibel, Jr., being first duly sworn, do hereby depose and state that: I am the President of Wired or Wireless, Inc. and am authorizedto make this statement on behalf of Wired or Wireless,Inc. I am authorized to make this Verification; that I am familiar withthe contents of this Application; that the Applicant will comply with all Idaho laws and Commission rules and regulations, including rules on regarding the conservation of telephone numbers ; and that matters set forth in the filing are true and correct to the best of my knowledge, information, and belief. I veriff that Wired or Wireless, Inc. possesses the financial and management ability to provide facilities-based wholesale telecommunications services in Idaho. William B. President Sworn to and subscribed before me on the Z-ltt^.day of August 2019. My Commission expires:o(olzq lZo>7 ) ) ) r(