20041104Order No 29624.pdf

Office of the Secretary
Service Date
November 4, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF XO COMMUNICATIONS SERVICES
INC. FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO
PROVIDE COMPETITIVE
TELECOMMUNICATIONS SERVICES
WITHIN THE S TATE OF ID AH
ORDER NO. 29624
CASE NO. XOC-O4-
On July 27, 2004, XO Communications Services, Inc. (XO or Company) filed an
Application for a Certificate of Public Convenience and Necessity to provide competitive
facilities-based and resold local exchange and interexchange telecommunications services within
the State of Idaho. In the Notice of Application and Modified Procedure issued October 6, 2004
the Commission sought comments regarding XO Communications Services Application. Order
No. 29608. No comments were received other than those submitted by Commission Staff.
Based upon the comments, the law, and the record, the Commission grants XO's Application.
THE APPLICATION
The Application states that XO Communications Services intends to offer a complete
set of telecommunications services which includes local and long distance voice, Internet
access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting, and Integrated
voice and data services. The proposed service area is statewide. The Application states that the
Company will provide services primarily to small and medium-sized business customers , as well
as large business enterprises (e., national customers with multiple locations), governmental
entities, and institutional end users.
According to the Application, XO Communications Services, the Applicant, and XO
Idaho, Inc. are both wholly owned, direct subsidiaries of XO Communications, Inc. XO Idaho is
currently authorized provide competi ti ve local exchange and interexchange
telecommunications services pursuant to a Certificate of Public Convenience and Necessity
granted by this Commission in Case No. GNR-99-, Order No. 28134. XO Communications
Services states that the purpose of the Application is to complete an internal corporate
reorganization whereby, upon the Commission s grant of authority requested by the Application
XO Idaho will transfer its intrastate telecommunications assets and customers to
ORDER NO. 29624
Communications Services through a merger between the two subsidiaries. After the merger, XO
Idaho will cease to exist and XO Communications Services will assume all of XO Idaho
current operations and customers.
STAFF COMMENTS
In its evaluation of the Company s Application Staff determined that XO
Communications Services is incorporated in the State of Delaware, with Company headquarters
in Reston, Virginia. The Company obtained a Certificate of Authority to transact business as a
foreign corporation from the Idaho Secretary of State on August 13, 2004. XO has provided the
appropriate contact information for its registered agent for service of process within Idaho.
With this Application, the Company proposes to provide Idaho business consumers
with a complete set of facilities-based and resold telecommunications services, including local
and long distance and integrated voice and data services. Following the merger, and with the
Commission s approval, XO Idaho will assign to XO Communications Services, Inc., its existing
interconnection agreements with Qwest Corporation, Case No. QWE-02-, and with Verizon
Northwest Inc., Case No. VZN-04-
Based on the Application, XO Communications, Inc., the parent company, through
its subsidiaries, currently offers facilities-based broadband services within and between more
than 70 markets, intrastate interexchange services virtually nationwide, and competitive local
exchange services in 47 states. The Company further states that it is one of the nation s largest
holders of fixed wireless spectrum, covering 95% of the population of the 30 largest cities in the
United States.The parent company is authorized by the FCC to provide interstate and
international telecommunications services.
Staff has reviewed the Application submitted by XO Communications Services, Inc.
and believes the Company understands and agrees to comply with the Commission rules and
requirements. Based upon its review, Staff recommends that the Company s filing fulfills the
requirements of the Commission s Rules and Procedural Order No. 26665. Staff believes the
Company possesses the requisite financial, managerial, and technical qualifications necessary to
operate as a provider of telecommunications services. Therefore, Staff recommends approval of
the Company s Application for a Certificate of Public Convenience and Necessity. Additionally,
since the Company indicates that the merger and transfer from XO Idaho to XO Communications
Services, Inc. should be complete by January 2005, Staff recommends that the Certificate of
ORDER NO. 29624
Public Convenience and Necessity currently held by XO Idaho terminate or expire on January
, 2005 , as that company will no longer exist.
COMMISSION FINDINGS
Based upon the comments, the law, and the record, the Commission grants the
Application. When considering an application for a Certificate, the Commission must determine
if the applicant has the necessary qualifications to provide service while still fostering
competition in the local telecommunications market. Based upon our review of the filing and the
record in this case, the Commission finds that XO's filing satisfies the requirements of the
Commission s Rules and Procedural Order No. 26665.Id.Thus, we approve XO
Communications Services, Inc.' s Application for a Certificate of Public Convenience and
Necessity to allow the Company to provide telecommunications services statewide. This is
consistent with our previous Orders granting statewide authority to provide telecommunications
services to carriers meeting the established requirements.
ORDER
IT IS HEREBY ORDERED that XO Communications Services, Inc. is granted a
Certificate of Public Convenience and Necessity to provide competitive telecommunications
services within the state of Idaho.
IT IS FURTHER ORDERED that the Certificate of Public Convenience and
Necessity previously granted to XO Idaho , Inc. in Case No. GNR-99-, Order No. 28134, shall
terminate and expire on January 31 2005.
THIS IS A FINAL ORDER. Any person interested in this 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 9 61-
626.
ORDER NO. 29624
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this if
fA.,
day of November 2004.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
ission Secretary
O:XQCT0401 dw2
ORDER NO. 29624