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HomeMy WebLinkAbout20241003Application.pdfziplyfiber.com Ziply Fiber 135 Lake Street South, Suite 155, Kirkland, WA 98033 M.(503) 431-0458 jessica.epley@ziply.com October 3, 2024 Ms. Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83720 Sent via electronic mail to secretary@puc.idaho.gov Re: Ziply Fiber Pacific, LLC dba Ziply Fiber Application for Designation as an Eligible Telecommunications Carrier for the Limited Purpose of Offering Lifeline Service to Qualified Households. Dear Ms. Barrios-Sanchez: Please find for filing Ziply Fiber Pacific, LLC dba Ziply Fiber’s Application for Designation as an Eligible Telecommunications Carrier for the limited purpose of offering Lifeline service to qualified households in the state of Idaho. If you have any questions regarding this filing, you may contact me at (503) 431-0458. Sincerely, Jessica Epley VP - Regulatory & External Affairs RECEIVED Thursday, October 03, 2024 IDAHO PUBLIC UTILITIES COMMISSION Case No: ZFP-T-24-02 1 Before the IDAHO PUBLIC UTILITIES COMMISSION Case No. APPLICATION APPLICATION FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER IN THE STATE OF IDAHO TO RECEIVE FEDERAL LIFELINE SUPPORT Ziply Fiber Pacific, LLC, dba Ziply Fiber (“ZFP” or the “Company”), pursuant to Section § 214(e)(2)1 of the Federal Communications Act of 1934, as amended (the "1996 Act"), the rules and regulations of the Federal Communications Commission ("FCC") related to Universal Service,2 Idaho statutes,3 and the requirements set forth in Idaho Public Utilities Commission ("Commission") Order No. 35126,4 respectfully submits this Application for Designation as an Eligible Telecommunications Carrier ("ETC"). ZFP seeks ETC designation for the entire state of Idaho (including tribal lands) in the designated service area, for the purposes of receiving Lifeline support in the state of Idaho and authorization to participate in the Idaho Telecommunications Service Assistance Program (“ITSAP”). ZFP seeks ETC designation solely to provide Lifeline service to qualifying Idaho consumers; it will not seek access to funds from the Universal Service 1 47 U.S.C. § 214(e)(2). 2 47 C.F.R. §§ 54.201, 54.202; DA 20-1422 (rel. Dec. 7, 2020) ("Public Notice"); Lifeline and Link Up Reform and Modernization; et al., 27 FCC Rcd 6656 (2012) ("Lifeline Reform Order"). 3 Idaho Stat. § 62-610D. 4Case No. TOR-R-21-01, The Application of Torch Wirless Seeking Designation as an Eligible Telecommunications Carrier, Order No. 35126 (Aug. 25, 2021) . In the Matter of Application of Ziply Fiber Pacific, LLC for Designation as an Eligible Telecommunications Carrier in the State of Idaho to Receive Federal Lifeline Support ZFP-T-24-02 2 Fund (“USF”) for high-cost support. As demonstrated herein, ZFP meets all the statutory and regulatory requirements for designation as an ETC in the State of Idaho. Accordingly, ZFP respectfully requests the Commission grant it ETC status in the State of Idaho to enable ZFP to begin providing Lifeline service in addition to ITSAP support to eligible customers at the earliest practical time. In support of this Application, the Company states as follows: BACKGROUND 1. ZFP is a Delaware limited liability company with its headquarters at 135 Lake Street S., Suite 155, Kirkland, Washington 98033. The Company is registered with the Idaho Secretary of State to conduct business in the state as shown in Exhibit 1. The Company will operate under the DBA name of "Ziply Fiber" in Idaho, which also has been registered with the Idaho Secretary of State as reflected in Exhibit 2. Attached as Exhibit 3 is a current list of the Company's officers, along with relevant biographical information. 2. ZFP is a facilities based competitive local exchange carrier with a fully constructed fiber-optic network over which it currently offers a full suite of communications services to customers in Idaho. ZFP was granted a Certificate for Public Convenience and Necessity (CPCN), Certificate No. 540, by the Idaho Commission on December 8, 2022 for the purposes of providing wholesale transport, retail broadband, Voice over Internet Protocol (VoIP) and local exchange service in Idaho in Docket ZFP-T-22-01. 3. The FCC has adopted a number of cost recovery policies and mechanisms designed to promote and maintain universal service. One aspect of universal service is the availability of subsidies from the federal Universal Service Fund ("USF"), created by the Act. The USF was created, in part, to provide support to qualifying low-income communications end-users. Mechanisms were also established to moderate the amount of costs to be recovered through basic, recurring charges to low-income users, thereby assisting efforts to maintain reasonable basic rate levels for those users. Under 47 U.S.C. 3 § 214(e), only common carriers designated as an ETC may receive subsidies from the federal USF. Section 214(e)(2) of the Act provides that: A State commission shall upon its own motion or upon request designate a common carrier that meets the requirements of paragraph (1) as an eligible telecommunications carrier for a service area designated by the State commission. Upon request and consistent with the public interest, convenience, and necessity, the State commission may, in the case of an area served by a rural telephone company, and shall, in the case of all other areas, designate more than one common carrier and an eligible telecommunications carrier for a service area designated by the State commission, so long as each additional requesting carrier meets the requirements of paragraph (1). Before designating an additional eligible telecommunications carrier for an area served by a rural telephone company, the State commission shall find that the designation is in the public interest. Section 214(e)(1) of the Act provides: A common carrier designated as an eligible telecommunications carrier under paragraph (2), (3), or (6) shall be eligible to receive universal service support in accordance with Section 254 of this title and shall, throughout the service area for which the designation is received - (A) offer the services that are supported by Federal universal service support mechanisms under Section 254(c) of this title, either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another eligible telecommunications carrier); and (B) advertise the availability of such services and the charges therefor using media of general distribution. 4. Pleadings, orders, notices and other correspondence filed in this matter should be served upon: Jessica Epley Ziply Fiber 135 Lake Street South Suite 155 Kirkland, WA 98033 Telephone: (503) 431-0459 Email: jessica.epley@ziply.com The above-referenced individual agrees to receive all Commission notices and orders regarding this proceeding via electronic mail. 4 INFORMATION REQUIRED UNDER FCC RULES AND IDAHO LAW 5. Section 214(e)(1) of the federal Act, the FCC's rules, Idaho Code § 62- 610D(3)(a), and the Commission's Order No. 35126 set forth certain requirements for ETC designation in Idaho.5 As demonstrated below, the Company meets each of these requirements. The requested designation of ZFP as an ETC in the state of Idaho will provide better service and increased consumer choice in the state of Idaho. 6. FCC Rule 54.201(c); FCC Rule 54.202(b); Order No. 35126, Appendix Section A.4. An ETC applicant must demonstrate the ETC designation is consistent with the public interest, convenience, and necessity, and in the case of an area served by a rural telephone company, demonstrate the public interest will be met by an additional designation. In evaluating the public interest element, the Commission generally has considered two factors: (1) whether the entity contributes to state assistance programs; and (2) whether the designation is sought for only part of a rural telephone company's study area, thus leaving some (perhaps less profitable) customers without service (i.e., cream skimming).6 7. Designation of the Company as an ETC will serve the public interest, convenience, and necessity. Upon designation as an ETC, ZFP will make Lifeline support available on all offered services to qualifying customers in the state of Idaho pursuant to the guidelines and requirements of the universal service program and 47 C.F.R. § 54.202. 8. ZFP’s planned investment and deployment in the state of Idaho will further the goals of the Commission and the FCC by expanding the reach of digital connectivity to promote economic growth in rural areas and ensure quality communications services are available at "just, reasonable, and affordable rates."7 Designation of competitive ETCs promotes competition and benefits consumers in rural and high-cost areas by increasing customer choice, innovative services, and new technologies.”8. Because the funding for ACP has expired, ZFP is 5 47 U.S.C. § 214(e)(1); 47 C.F.R. §§ 54.201, 54.202; Idaho Code § 62-610D(3)(a); Order No. 35126, Appendix. 6 See, e.g., Order No. 33002 at 2-3; Order No. 33226 at 3. 7 47 U.S.C. § 254(b)(1). 8 Federal-State Joint Board on Universal Service, 16 FCC Rcd 48, ¶ 17 (2000). 5 particularly motivated to obtain federal funding through Lifeline programs in order to ensure it can continue providing support to low-income customers. However, Lifeline funding ultimately requires that ZFP obtain an ETC designation. 9. Grant of the petition ensures that ZFP will be best positioned to offer supportive services to existing and future customers. ZFP is able to provide high-quality services, including the ability to offer faster broadband speeds to a greater proportion of its customers in rural areas. ZFP’s fiber-based voice service offerings provide a high-quality product for rural customers, and its broadband services provide speeds of up to approximately 1 Gbps or higher to customers. 10. The Company commits to participate in applicable Idaho assistance programs upon approval. The Company's participation in such Idaho programs also advances the public interest. 11. Finally, the Company is not engaged in "cream skimming." While federal rules (47 U.S.C. §§ 160, 214(e)(5) and 47 C.F.R. § 54.207(b)) require that the service area of an ETC conform to the service area of any rural telephone company serving the same area (the “service area conformance” requirement), the FCC’s Lifeline and Link Up Reform Memorandum Opinion and Order (FCC 13-44 released April 15, 2013) authorized forbearance from the service area conformance requirements with respect to carriers seeking to provide Lifeline-only service.9 In light of this forbearance, the Commission has the authority to designate ETCs such as ZFP in rural areas without concern for the service area conformance requirement.10 12. FCC Rule 54.201(d); Order No. 35126, Appendix Section A.1. An ETC applicant must be a "common carrier" as defined by federal law." ZFP provides broadband Internet access service and voice service in the Designated Service Area. ZFP provides voice grade access to the public switched network or its functional equivalent and minutes of use for 9 2 See In the Matter of Telecommunications Carriers Eligible for Support, Lifeline and Link Up Reform, WC Docket No. 09-197, WC Docket No. 11-42, Memorandum Opinion and Order, FCC 13-44 (rel. April 15, 2013). 10 See 47 C.F.R. § 54.207(c) 6 local service at no additional charge to end users. The Company provides its voice service on a common carrier basis to customers. 13. FCC Rule 54.201(d)(1); FCC Rule 54.201(i); Order No. 35126, Appendix Section A.2. An ETC applicant must demonstrate that it is capable of providing and will continuously provide the supported services throughout the service area either by using its own facilities or a combination of its own facilities and the resale of another carrier's services. ZFP certifies it offers the services that are supported by the federal universal service support mechanisms in the state of Idaho using its own facilities.11 Under current FCC rules, the two services are supported by the federal universal service support mechanisms: (1) voice telephony services; and (2) broadband Internet access services.12 Eligible voice telephony services must provide voice grade access to the public switched telephone network ("PSTN") or its functional equivalent, minutes of use for local service provided at no additional charge, access to emergency 911 and enhanced 911 service in locations where implemented, and for qualifying low-income consumers, toll limitation service.13 Eligible broadband Internet access services must provide the capability to transmit data to and receive data by wire or radio from all or substantially all Internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up service.14 14. ZFP certifies that it offers voice and broadband services in the state of Idaho that comply with the FCC's requirements. Section 214(e)(l)(A) of the Act 15 requires an ETC to offer the services that are supported by federal universal service support mechanisms under Section 254(c). Effective December 29, 2011, pursuant to the USF/ICC Transformation Order 16 as further clarified by the USF/ICC Order on Reconsideration, the FCC eliminated its 11 47 C.F.R. § 54.101(a); see also Order No. 35126, Appendix Section A.2. 12 47 C.F.R. § 54.101(a). 13 47 C.F.R. § 54.101(a)(1). 14 47 C.F.R. § 54.101(a)(2). 15 47 U.S.C. § 214(e)(l). 16 Connect America Fund; A National Broadband Plan for Our Future; Establishing Just and Reasonable Rates for Local Exchange Carriers; High-Cost Universal Service Support; Developing an Unified Intercarrier Compensation Regime; Federal-State Joint Board on Universal Service; Lifeline and Link-Up; 7 former list of nine supported services and amended Section 54.101(a) of its rules to specify that "voice telephony service" is supported by the federal universal service mechanisms. ZFP’s voice offering provides voice grade access to the PSTN and will include unlimited local calling. In addition, ZFP's voice offering provides consumers with access to 911 and enhanced 911 to the extent local governments have implemented such services. With respect to toll limitation service, the FCC eliminated the requirement to provide toll limitation services if the Lifeline offering provides a set number of minutes that do not distinguish between toll and non-toll calls.17 As explained below, the ZFP offers unlimited voice calling within the United States for a fixed monthly price in its Service Area, and thus the ZFP is not required to provide toll limitation service in connection with its Lifeline service offering. 15. Similarly, the ZFP's broadband Internet access service offering provides consumers with the capability to transmit data to and receive data from all or substantially all Internet endpoints. Exhibit 4 lists ZFP’s current service plans. 16. Under Section 214(e)(l)(A) of the Act, an ETC must offer the services supported by federal universal service support mechanisms throughout its designated service area "either using its own facilities or a combination of its own facilities and resale of another carrier's services."18 Facilities are the ETC' s "own" if the ETC has exclusive right to use the facilities to provide the supported services or when service is provided by any affiliate within the holding company structure.19 ZFP certifies that it provides service through facilities owned and operated by itself or its affiliates. 17. FCC Rule 54.201(d)(2); FCC Rule 54.405(b)-(d); Order No. 35126, Appendix Section A.3. An ETC applicant must demonstrate that it will advertise the availability of its offering and the charges therefore using media of general distribution. The Company will publicize the availability of its voice and broadband service offerings throughout its service area using media of 17 Lifeline Reform Order ¶ 49. 18 47 U.S.C. § 214(e)(l)(a). 19 See, e.g., WCB Reminds Connect America Fund Phase H Auction Applicants of the Process for Obtaining a Federal Designation as an Eligible Telecommunications Carrier, 33 FCC Rcd 6696, nn. 23-24 (2018). 8 general distribution.20 ZFP will use a combination of digital and traditional media, such as advertising via television, radio, newspapers, magazines or other print advertisements, outdoor advertising, direct marketing, the Company website, and/or the Internet. It also will rely on the marketing practices and advertising expertise of Ziply Fiber to advertise the availability of its service offerings in the Designated Service Area. 18. In addition, ZFP will publicize the availability of Lifeline service in a manner reasonably designed to reach those likely to qualify for the service.21 Using easily understood language, ZFP will indicate on all materials describing its Lifeline service that: (1) it is a Lifeline service; Lifeline is a government assistance program; (3) the service is nontransferable; (4) only eligible consumers may enroll in the program: and (5) the program is limited to one discount per household.22 ZFP also will disclose its name or its DBA name on all materials describing the Lifeline service.23 19. FCC Rule 54.201(h); FCC Rule 54.202(a)(4). An ETC applicant seeking to provide Lifeline services must demonstrate it is financially and technically capable of providing Lifeline service in compliance with the FCC's rules. The FCC has stated that the "relevant considerations" for satisfying this requirement would be whether the applicant previously offered services to non- Lifeline consumers, how long the applicant has been in business, whether the applicant intends to rely exclusively on universal service fund disbursements to operate, whether the applicant receives funds from other sources, and whether the applicant has been subject to enforcement action or ETC revocation proceedings in other states.24 20. ZFP is financially and technically capable of offering Lifeline services in the Designated Service Area. Currently, ZFP operates as a common carrier and provides a full suite of communications services to non-Lifeline customers in Idaho. Because it generates and will 20 47 C.F.R. § 54.201(d)(2). 21 47 C.F.R. § 54.405(b). 22 47 C.F.R. § 54.405(c). For these purposes, the term "materials describing the service" includes all print, audio, video, and web materials used to describe or enroll in the Lifeline service offering, including application and certification forms. See id. 23 47 C.F.R. § 54.405(d). 24 47 C.F.R. § 54.405(d). 9 continue to receive revenue from non-USF sources, the Company does not intend to rely exclusively on Lifeline reimbursement for operating revenues. ZFP’s affiliates Ziply Fiber Northwest and Ziply Fiber of Idaho also can provide the Company with additional financial and technical support as needed, and the Company will utilize the same management and day-to-day operational personnel. 21. Order No. 35126, Appendix Section A.5. The Commission's Order No. 35126 requires an ETC applicant seeking designation for "any part of tribal lands" to provide a copy of its application to the affected tribal government or tribal regulatory authority, as applicable. However, ZFP does not provide service on any Tribal Lands at this time and therefore is not required to provide a copy of its application to any tribal governments. If ZFP’s expansion plan includes any Tribal Lands, ZPF will begin discussions with the relevant Tribal authorities. 22. FCC Rule 54.202(a)(1); Order No. 35126, Appendix Section B.1. An ETC applicant must demonstrate its commitment and ability to provide the supported services. ZFP certifies that it will comply with the service requirements applicable to Lifeline support as well as ITSAP support in the Designated Service Area. ZFP also certifies that it will: (a) provide service on a timely basis to requesting customers within its service area; and (b) provide service within a reasonable period of time if the potential customer is within the service area, but outside the Company's existing network coverage if service can be provided at a reasonable cost. 23. An ETC applicant also must submit network improvement plans at designated intervals. However, a five-year network improvement plan is no longer necessary for entities seeking Lifeline-only designation.25 The Commission chose to adopt a similar approach in Order No. 35126 to require ETCs to submit a two-year network improvement plan.26 ZFP respectfully requests the Commission waive its two-year network improvement plan requirement as it has done for other ETC applicants.27 25 Lifeline Reform Order 11386. 26 Order No. 35126 at 8. 27 See, e.g., Order No. 35126 (“The FCC waived the requirement for a winning bidder to file a five-year plan as part of the ETC designation process, citing its heightened oversight of auction winners. … Considering the FCC’s heightened oversight, we waive in this proceeding our requirement that the Company’s ETC 10 24. In addition to offering the supported services in its current service area, ZFP also anticipates expanding its operations into new areas as well. All of ZFP’s products will be available for customers in any expanded area. 25. FCC Rule 54.202(a)(2); Order No. 35126, Appendix Section B.2. An ETC applicant must demonstrate that it can remain functional in emergency situations. The Company certifies it has the ability to remain functional in emergency situations in the Designated Service Area. Separate FCC rules also require the Company to implement certain back-up power requirements.28 ZFP has a reasonable amount of back-up power to ensure functionality without an external power source, is able to re-route traffic around damaged facilities, and is capable of managing traffic spikes resulting from emergency situations. To guard against service interruptions, such as those caused by natural or man-made events, ZFP has sufficient excess capacity and/or redundancy and has designed its network so that its critical systems and service locations use diverse fiber routes which have failover capabilities, ensuring its network and services remain available to customers. In addition, ZFP will be able to rely on Ziply Fiber Northwest’s disaster recovery contingency plans such as the use of diverse/alternate routing, electronics redundancy, redundant data centers, geographically separated operations, and environmental controls for data and switching centers to remain functional in an emergency situation. 26. FCC Rule 54.202(a)(3); Order No. 35126, Appendix Section B.3. An ETC applicant must certify that it will comply with all applicable service quality standards and consumer protection rules. ZFP certifies that it will comply with service quality standards and consumer protection rules applicable to its provision of service in the Designated Service Area. 27. FCC Rule 54.202(a)(5); FCC Rule 54.202(a)(6); Order No. 35126, Appendix Application include a two-year network improvement plan); Order No. 34254 ("Staff determined that . . . a two-year network improvement and progress report is not required due to the FCC's waiver of the five-year plan as part of its ETC designation process ....... We agree with Staff. Because the FCC waived the requirement for a winning bidder to file a five-year plan as part of the ETC designation process, a network improvement plan is not required under Intermax's Application."); Order No. 34253 (same). 28 47 C.F.R. § 9.20.B.4. 11 Section B.4. Order No. 35126 requires an ETC applicant to provide a description of its local usage plans and a description of the local usage plans of the incumbent local exchange carrier ("ILEC"). FCC rules also require Lifeline-only ETC applicants to provide information describing the terms and conditions of voice telephony service and broadband Internet access service plans to be offered to Lifeline subscribers. For Lifeline services, the FCC has determined that providers may satisfy the obligation to provide local usage via service offerings that bundle local and long distance minutes.32 28. At this time, ZFP offers service plans that include high-speed Internet access service and unlimited voice calling within the United States for a fixed monthly price. ZFP provides voice over Internet Protocol (VoIP) and broadband services either bundled together or as individual products. All products offered by ZFP are eligible to receive the Lifeline subsidy. ZFP will offer calling plans comparable to those offered by ILECs in the Designated Service Area. Details regarding ZFP’s offerings can be found at ziplyfiber.com or in Exhibit 4. 29. FCC Rule 54.405(a). An ETC providing Lifeline services must make Lifeline service available to qualifying low-income consumers. ZFP certifies that its Lifeline service offering will conform to the definition of "Lifeline" in the FCC's rules.29 30. FCC Rule 54.405(e). An ETC providing Lifeline services must implement certain de-enrollment procedures for Lifeline customers. ZFP certifies it will comply with the FCC's de- enrollment procedures and will have general de-enrollment procedures in place for Lifeline services. In accordance with FCC requirements, ZFP will de-enroll Lifeline customers for no longer qualifying for Lifeline service, for duplicative support, for non-usage, for failure to re-certify, and when requested by the Lifeline customer. 31. FCC Rule 54.409; FCC Rule 54.410. ZFP certifies that it will verify the eligibility of its Lifeline subscriber base in accordance with FCC rules. ZFP has established processes for ensuring Lifeline services are provided only to eligible customers, including procedures for 29 47 C.F.R. § 54.401(a). 12 confirming consumer eligibility, enrolling eligible customers, recertifying eligibility at regular intervals, and recordkeeping. ZFP recognizes the importance of safeguarding the Universal Service Fund from potential waste, fraud, and abuse. ZFP relies on the National Verifier for the initial and ongoing determination of a subscriber’s eligibility to qualify for Lifeline through the income-based eligibility criteria or program-based criteria set forth in C.F.R § 54.410. Further, ZFP complies with the requirements of the National Lifeline Accountability Database (“NLAD”) and section 54.404 of the FCC rules. Through these processes, ZFP can ensure applicants adhere to the “One Lifeline Benefit per Household” requirement. Consistent with federal regulations, ZFP will not seek USF reimbursement for new subscribers until they have personally activated the service, either by initiation and/or actual use of the service and will de-enroll any subscriber that has not used ZFP’s Lifeline service as set forth in 47 C.F.R. § 54.407(c)(2). An account will be considered active if the authorized subscriber establishes usage, as "usage" is defined by 47 C.F.R. § 54.407(c)(2), during the specified timeframe, currently a period of thirty (30) days, or during the notice period (“cure period”) set forth in 47 C.F.R. § 54.405(e)(3), currently a period of fifteen (15) days. In accordance with 47 C.F.R. § 54.405(c)(3), ZFP will provide the subscriber advanced notice, using clear, easily understood language, that the subscriber's failure to use the Lifeline service within the notice period will result in service termination for non-usage. Consumers that have been deactivated may participate in ZFP's Lifeline service in the future by reapplying and re- establishing eligibility. CONCLUSION For the reasons stated herein, Ziply Fiber Pacific, LLC respectfully requests that the Commission expeditiously designate it as an ETC for the provision of voice and broadband services in the Designated Service Area. 13 RESPECTFULLY SUBMITTED this 3rd day of October, 2024 Ziply Fiber Pacific, LLC d/b/a Ziply Fiber Name of Party Signature on Behalf of Party Jessica Epley Name of Signer VP – Regulatory & External Affairs Title of Signer 135 Lake Street South, Suite 155 Kirkland, Washington 98033 Address of Signer 503.431.0458 Telephone Number for Signer jessica.epley@ziply.com Designated Email for Party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ffice of the Secretary Service Date December 8, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION On August 23, 2022, Ziply Fiber Pacific, LLC, d/b/a Ziply Fiber (“Company”)1 applied for designation as a competitive local exchange carrier (“CLEC”) in Idaho.Application at 1. The Company plans to provide fiber-based telecommunications services, including internet access, data transport, and voice over IP services in several Idaho cities.Id. at 2-3. On October 31, 2022, the Commission issued a Notice of Application and Notice of Modified Procedure, setting public comment and Company reply deadlines. Order No. 35572. Commission Staff filed the only comments to which the Company did not reply. With this Order, we approve the Company’s Application and grant it designation as a CLEC in Idaho. APPLICATION The Company plans to provide fiber-based telecommunications services—internet access, data transport, and voice over IP—over its owned facilities in the following areas: Boise, Idaho Falls, Lewiston, Meridian, Nampa, Pocatello, Rexburg, and Twin Falls. Id. The Company anticipates it will begin construction in 2023 and states it may expand its service areas in the future. Id. The Company asserts that while it is a new entrant to the Idaho telecommunications market, the Company is a registered CLEC in Oregon and Washington, and the Company is affiliated with Ziply Fiber Northwest, LLC, and Ziply Fiber of Idaho, LLC, both Incumbent Local Exchange Carriers which provide telecommunications services in Idaho. Id. STAFF COMMENTS Staff reviewed and analyzed the Company’s Application and supplemental filings for compliance with IDAPA 31.01.01.114 and Order No. 26665. 1 The Company is a Delaware registered LLC, and provided a Foreign Registration Statement with the Idaho Secretary of State with its Application. The Company’s assumed business name “Ziply Fiber”is associated with Ziply Wireless, LLC, as documented in Idaho Secretary of State File # 0004859680. IN THE MATTER OF ZIPLY FIBER PACIFIC, LLC’S APPLICATION FOR COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) IN THE STATE OF IDAHO ) ) ) ) ) ) CASE NO. ZFP-T-22-01 ORDER NO. 35618 Exhibit 1 ORDER NO. 35618 2 Staff believed the Company understands the Commission’s rules and requirements related to the provision of telecommunication services in Idaho. Staff also believed that the Company possesses the requisite financial, managerial, and technical qualifications necessary to operate as a provider of telecommunications services in Idaho. Staff recommended approval of the Company’s Application for authorization to operate in the State of Idaho as a CLEC, and recommends that a certificate of public convenience and necessity (“CPCN”) should be issued, subject to the following conditions: (1) the Company complies with the number pooling and reporting requirements of the North American Numbering Plan Administrator, as set forth in Commission Order No. 30425; (2) the Company’s agreement to provide necessary reports and contributions as appropriate to the Idaho Universal Service Fund, Idaho Telecommunications Relay Services, the Idaho Telecommunications Service Assistance Program, and comply with all future reporting requirements deemed appropriate by the Commission for competitive telecommunications providers; (3) the Company files a final price list outlining all its rates, terms, and conditions with the Commission before issuance of the CPCN; and (4) the Company provides three reports to the Commission with the number of basic local exchange customers and the services being offered on the following dates of March 20, 2023; July 17, 2023; and November 20, 2023. Staff further recommended the Commission revoke the Company’s CPCN if the Company fails to provide the three reports or if the Company is not providing basic local exchange services by November 20, 2023. COMMISSION FINDINGS AND DECISION The Commission has jurisdiction over this matter under Idaho Code § 62-615 (the Commission’s authority to implement the Telecommunications Act of 1996) and Idaho Code § 62-605(5)(b) (the Commission’s continuing, noneconomic authority over Title 62 telephone corporations); see also 47 U.S.C. 252(e)(1). Based on our review of the record in this case, including the comments of Staff, the Commission finds it fair, just, and reasonable to grant the Company’s Application for designation as a CLEC in Idaho. The Company has provided all necessary information in its Application and has the financial, managerial, and technical qualifications needed to provide fiber-based telecommunications services in Boise, Idaho Falls, Lewiston, Meridian, Nampa, Pocatello, Rexburg, and Twin Falls. The Company has also reviewed and agreed to comply with Commission rules. ORDER NO. 35618 3 The Company’s Application for designation as a CLEC is approved, subject to these conditions: (1) The Company must comply with the number pooling and reporting requirements of the North American Numbering Plan Administrator, as set forth in Commission Order No. 30425; (2) The Company must provide necessary reports and contributions as appropriate to the Idaho Universal Service Fund, Idaho Telecommunications Relay Services, the Idaho Telecommunications Service Assistance Program, and comply with all future reporting requirements deemed appropriate by the Commission for competitive telecommunications providers; (3) The Company must file a final price list outlining all its rates, terms, and conditions with the Commission before issuance of the CPCN; (4) The Company must provide three reports to the Commission with the number of basic local exchange customers and the services being offered on the following dates: a. March 20, 2023; b. July 17, 2023; c. November 20, 2023; and (5) If the Company fails to provide the three reports or if the Company is not providing basic local exchange services by November 20, 2023, the Commission will revoke the Company’s CPCN. sasD The Company must meet the foregoing conditions or its CPCN may be revoked at a future proceeding. O R D E R IT IS HEREBY ORDERED that the Company’s Application for Designation as a CLEC is approved, subject to the conditions described in this Order. IT IS FURTHER ORDERED that the Company’s Application for a CPCN is granted subject to the conditions outlined above. 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. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. Idaho Code § 61-626. ORDER NO. 35618 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 8 th day of December 2022. __________________________________________ ERIC ANDERSON, PRESIDENT __________________________________________ JOHN CHATBURN, COMMISSIONER __________________________________________ JOHN R. HAMMOND JR., COMMISSIONER ATTEST: ___________________________________ Jan Noriyuki Commission Secretary I:\Legal\TELECOM\ZFP-T-22-01\ZFPT2201_final_cs.docx __________________________________________________________________ ERIC ANDERSON ______________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________ JOJOJOOJOOOOOJOOOJOJOJOJOOOOJOJOJOOOJOOJOJOOOOOOJOOOJOJOJOJOJOOJOOOOJOJOJOJOOOOOOOOJOOOOOOOJOOOJOOOOOOJOOOOJOJOOOOOJOOOOOOOOOJOOOOOOOOJOOOOOOOOOOOOOOOJOOJOJOOOOOOOJOOJOOOOOOOOOOJOJJJOOOOOOJOOOJJJOOOOOOOOOOOOJJOJJJOOOOOOOJOOJJJJJJJJJOOOOOJJJJJOOOOJJJJJJJJJJOJOOJJJJJJJJOOJOJJJJJOOJJJJJOJJJOOOHNHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH R. HAMMOND JR., COMMIS __________________________________________________________________ JaJJJJJJn Noriyuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuukikikkkkkkikkikikkkkkkkkkkikikikkkkkkkikkkkkikkkkkikkkkkkikkkkikkkkkkkkkikiiiikkkkkkikiiiiii STATE OF IDAHO Lawerence Denney | Secretary of State Business Office 450 North 4th Street PO Box 83720 Boise, ID 83720 Status: Active-Current 08/12/2022 10:46 AM Filing Type: 4859680 Filing Date: Assumed Business Name File #: When corresponding with this office or submitting documents for filing, please refer to the file number given above. Expiration Date: B0733-2531Image # : Processed By: Business Division Receipt #: 000700414 Mailing Address Congratulations on the successful filing of your Certificate of Assumed Business Name for Ziply Fiber in the State of Idaho on the date shown above. KIRKLAND, WA 98033-6488 STE 155 LEGAL 135 LAKE ST S Lawerence Denney Idaho Secretary of State Filing Acknowledgment Please review the filing information below and notify our office immediately of any discrepancies. August 12, 2022 KIRKLAND, WA 98033-6488 STE 155 LEGAL 135 LAKE ST S Ziply Fiber Phone: 208-334-2301 * Email: business@sos.idaho.gov * Website: sosbiz.idaho.gov Exhibit 2 Exhibit 3 Ziply Fiber Leadership Team The Ziply Fiber leadership team has extensive experience; each of our Leadership Team ŵĞŵďĞƌƐŚĂƐŽǀĞƌϮϬLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞŝŶĞdžĞĐƵƟǀĞƌŽůĞƐ͘ džĞĐƵƟǀĞŚĂŝƌŵĂŶ^ƚĞǀĞtĞĞĚŝƐ an industry leader who has focused on broadband services and technology for more than 25 LJĞĂƌƐ͘ ,ŝƐƉĂƐƐŝŽŶĂŶĚĞdžƉĞƌŝĞŶĐĞŝƐƐĞĐŽŶĚƚŽŶŽŶĞ͘WƌŝŽƌƚŽŝƉůLJ&ŝďĞƌ͕^ƚĞǀĞĨŽƵŶĚĞĚ tĂǀĞ ƌŽĂĚďĂŶĚ͕ƐĞƌǀŝŶŐĂƐŝƚƐŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌĨƌŽŵϮϬϬϮƚŚƌŽƵŐŚŝƚƐƐĂůĞŝŶϮϬϭϴ͘,ĞŚĂƐ ƐĞƌǀĞĚĂƐŚĞĂĚŽĨ^ƵŵŵŝƚŽŵŵƵŶŝĐĂƟŽŶƐ͕WƌĞƐŝĚĞŶƚŽĨDŝůůĞŶŶŝƵŵŝŐŝƚĂůDĞĚŝĂ͕ŚĂŝƌŵĂŶŽĨ yƉůŽƌŶĞƚŽŵŵƵŶŝĐĂƟŽŶƐ͕ĂŶĚĂƐĂďŽĂƌĚŵĞŵďĞƌŽĨďŽƚŚDĞƚƌŽŶĞƚĂŶĚ,ĂƌŐƌĂLJ ŽŵŵƵŶŝĐĂƟŽŶƐ͘^ƚĞǀĞĂƐƐĞŵďůĞĚĂůĞĂĚĞƌƐŚŝƉƚĞĂŵĨŽƌŝƉůLJ&ŝďĞƌǁŝƚŚĚĞĐĂĚĞƐŽĨĞdžĞĐƵƟǀĞ ůĞǀĞůĞdžƉĞƌŝĞŶĐĞ͘ ŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ,ĂƌŽůĚĞŝƚnjŚĂƐŵŽƌĞƚŚĂŶϯϬLJĞĂƌƐŽĨĞdžƉĞƌŝĞŶĐĞŝŶƚĞĐŚŶŽůŽŐLJĂŶĚ ŝŶŶŽǀĂƟŽŶ͘ WƌŝŽƌƚŽũŽŝŶŝŶŐŝƉůLJ&ŝďĞƌ͕,ĂƌŽůĚƐĞƌǀĞĚĂƐWƌĞƐŝĚĞŶƚĂŶĚŚŝĞĨKƉĞƌĂƟŶŐKĸĐĞƌŽĨ tĂǀĞƌŽĂĚďĂŶĚ͘WƌŝŽƌƚŽũŽŝŶŝŶŐtĂǀĞƌŽĂĚďĂŶĚ͕,ĂƌŽůĚƐĞƌǀĞĚŝŶĞdžĞĐƵƟǀĞĂŶĚůĞĂĚĞƌƐŚŝƉ ƌŽůĞƐĂƚůĂƐƐŵĂƚĞƐ͘ĐŽŵ͕/ŶƚĞƌŶĂƟŽŶĂů'ĂŵĞdĞĐŚŶŽůŽŐLJ͕ZĞĂůEĞƚǁŽƌŬƐ͕^ŚĂƌĞďƵŝůĚĞƌ͕dΘd tŝƌĞůĞƐƐĂŶĚDĐĂǁĞůůƵůĂƌ͘ ŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌZLJĂŶ,ũŽƌƚĞŶŚĂƐŵŽƌĞƚŚĂŶƚĞŶLJĞĂƌƐŽĨ ĞdžƉĞƌŝĞŶĐĞŝŶĞdžĞĐƵƟǀĞĮŶĂŶĐŝĂůĂŶĚĂĐĐŽƵŶƟŶŐƌŽůĞƐ͘ WƌŝŽƌƚŽũŽŝŶŝŶŐŝƉůLJ&ŝďĞƌ͕ZLJĂŶƐĞƌǀĞĚ ĂƐŽŶƚƌŽůůĞƌĂŶĚŚŝĞĨ&ŝŶĂŶĐŝĂůKĸĐĞƌĂƚ/EZ/y͕/ŶĐ͖ĂŶĚŚĂĚŵĂŶĂŐĞĚĮŶĂŶĐŝĂůŽƉĞƌĂƟŽŶƐĂƚ DĂƌŬĞƚ>ĞĂĚĞƌĂŶĚĂƚdĞůĂŶƚtŝƐĞ͘ŚŝĞĨdĞĐŚŶŽůŽŐLJKĸĐĞƌĂmbang “Bam” Liem is a ƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐŝŶĚƵƐƚƌLJǀĞƚĞƌĂŶǁŝƚŚϯϱLJĞĂƌƐŽĨĞdžƉĞƌŝĞŶĐĞŝŶĞŶŐŝŶĞĞƌŝŶŐ͕ŽƉĞƌĂƟŽŶƐĂŶĚ ƐLJƐƚĞŵĚĞǀĞůŽƉŵĞŶƚĨŽƌŵŽďŝůĞ͕ĐĂďůĞĂŶĚƚĞůĞƉŚŽŶĞĐŽŵƉĂŶŝĞƐĂƌŽƵŶĚƚŚĞǁŽƌůĚ͘ Bam was ƚŚĞdžĞĐƵƟǀĞsŝĐĞWƌĞƐŝĚĞŶƚŽĨĞŶƚƌĂůdĞĐŚŶŽůŽŐLJ͕ KƉĞƌĂƟŽŶƐΘ^LJƐƚĞŵƐĂƚtĂǀĞƌŽĂĚďĂŶĚ͕ ǁŚĞƌĞŚĞŽǀĞƌƐĂǁĚĞƉůŽLJŵĞŶƚĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨtĂǀĞƌŽĂĚďĂŶĚ͛Ɛ&ŝďĞƌΘ/WŶĞƚǁŽƌŬ ƚĞĐŚŶŽůŽŐLJ͘ŚŝĞĨKƉĞƌĂƟŽŶƐKĸĐĞƌŚƌŝƐĞŶnjŝŶŚĂƐŽǀĞƌϯϬLJĞĂƌƐŽĨƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐ ŝŶĚƵƐƚƌLJĞdžƉĞƌŝĞŶĐĞ͘ŚƌŝƐƐƉĞŶƚϮϲLJĞĂƌƐǁŝƚŚĞŶƚƵƌLJ>ŝŶŬŝŶƌŝnjŽŶĂ͕ŽůŽƌĂĚŽ͕KƌĞŐŽŶĂŶĚ tĂƐŚŝŶŐƚŽŶƉƌŝŽƌƚŽũŽŝŶŝŶŐŝƉůLJ&ŝďĞƌ͘KƵƌŚŝĞĨŽĨĞƐŝŐŶĂŶĚŽŶƐƚƌƵĐƟŽŶ͕ZŽď'ƌŝĸƚŚŚĂƐ ŽǀĞƌϮϬLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞŝŶůĞĂĚŝŶŐĂŶĚŵĂŶĂŐŝŶŐƚĞĂŵƐƌĞƐƉŽŶƐŝďůĞĨŽƌĚĞƐŝŐŶ͕ĞŶŐŝŶĞĞƌŝŶŐ͕ ĂŶĚĐŽŶƐƚƌƵĐƟŽŶŽĨKƵƚƐŝĚĞWůĂŶƚ͕/ŶƐŝĚĞWůĂŶƚĂŶĚŽƌĞEĞƚǁŽƌŬŝŶĨƌĂƐƚƌƵĐƚƵƌĞƚŽƐƵƉƉŽƌƚǀŽŝĐĞ ĂŶĚĚĂƚĂ/ŶƚĞƌŶĞƚWƌŽƚŽĐŽů͕DĞƚƌŽKƉƟĐĂůƚŚĞƌŶĞƚ͕ĮďĞƌƚŽƚŚĞWƌĞŵŝƐĞ͕'ŝŐĂďŝƚWĂƐƐŝǀĞŽƉƟĐ EĞƚǁŽƌŬĂŶĚ&ŝďĞƌƚŽƚŚĞEŽĚĞƐĞƌǀŝĐĞƐ͘ŚŝĞĨDĂƌŬĞƟŶŐKĸĐĞƌDŝŬĞŽŚĞƌƚLJŚĂƐover 22 years ŽĨĞdžĞĐƵƟǀĞŵĂƌŬĞƟŶŐĞdžƉĞƌŝĞŶĐĞ͘ DŝŬĞƐĞƌǀĞĚĂƐWƌĞƐŝĚĞŶƚŽĨŽůĞΘtĞďĞƌ͕ŽŶĞŽĨ^ĞĂƩůĞ͛Ɛ ƉƌĞŵŝĞƌĞĂĚǀĞƌƟƐŝŶŐĂŐĞŶĐŝĞƐĨŽƌϭϵLJĞĂƌƐ͘'ĞŶĞƌĂůŽƵŶƐĞůLJƌŽŶ^ƉƌŝŶŐĞƌŚĂƐŽǀĞƌϮϱLJĞĂƌƐ ŚĂŶĚůŝŶŐůĞŐĂůĂīĂŝƌƐĨŽƌƚĞĐŚŶŽůŽŐLJďƵƐŝŶĞƐƐĞƐ͘WƌŝŽƌƚŽũŽŝŶŝŶŐŝƉůLJ&ŝďĞƌ͕ŚĞǁĂƐƚŚĞdžĞĐƵƟǀĞ sŝĐĞWƌĞƐŝĚĞŶƚŽĨ>ĞŐĂůīĂŝƌƐĂƚtĂǀĞƌŽĂĚďĂŶĚǁŚĞƌĞŚĞǁĂƐƌĞƐƉŽŶƐŝďůĞĨŽƌĂďƌŽĂĚƌĂŶŐĞ ŽĨůĞŐĂůĂŶĚƌĞŐƵůĂƚŽƌLJŵĂƩĞƌƐƌĞůĂƟŶŐƚŽƚŚĞďƌŽĂĚďĂŶĚ͕ĐĂďůĞ͕ĂŶĚƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐ ŝŶĚƵƐƚƌLJ͘ Exhibit 4 Fiber 100 Mbps Upload/Download Fiber 300 Mbps Upload/Download Fiber Gig Speed Upload/Download 2 Gig Fiber 2 Gig Speed Upload/Download Phone Voice over Internet Protocol