20241029Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHAN E. KALALA-KASANDA
MICHAEL DUVAL,DEPUTY ATTORNEY GENERAL
DATE: OCTOBER 29, 2024
RE: IN THE MATTER OF TDS METROCOM,LLC'S APPLICATION FOR
APPROVAL OF ITS IDAHO BROADBAND EQUIPMENT TAX CREDIT
FOR THE TAX YEAR 2023; CASE NO. TML-T-24-01.
BACKGROUND
In 2001, House Bill 377 was enacted authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho. Idaho Code § 63-3029B(3)(a)(ii). Idaho Code §
63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband equipment
installed during a calendar year.
Qualified broadband equipment is defined as equipment"capable of transmitting signals
at a rate of at least two hundred thousand(200,000)bits per second to a subscriber and at least
one hundred twenty-five thousand(125,000)bits per second from a subscriber." Idaho Code §
63-3029I(3)(b). If the equipment is installed by a telecommunications carrier, it must also be
"necessary to the provision of broadband services and an integral part of a broadband network."
Idaho Code § 63-3029I(3)(b)(i). To be eligible for the tax credit, the taxpayer must obtain from
the Commission an order confirming that the installed equipment meets the statutory definition
of qualified broadband equipment. Commission Order No. 35297 and Idaho Code § 63-
3029I(4). Once the Commission has determined the installed equipment is eligible for the
broadband equipment tax credit, an order along with the original application is forwarded to the
Idaho State Tax Commission.
DECISION MEMORANDUM - 1 - OCTOBER 29, 2024

THE APPLICATION
On August 20, 2024, the Commission received an Application("Application"), with a
cover letter, from TDS Metrocom, LLC ("Company"), seeking Commission determination that
the broadband equipment installed during the calendar year 2023 meets the statutory definition
of qualified broadband equipment. On September 12, 2024, the Company submitted additional
filings on its Application,revising its assets list in compliance with Commission Order No.
35297.
In the Application, the Company represented that it is a telecommunication carrier with
broadband equipment installed in the areas of Boise, Caldwell, Coeur d'Alene, Hayden Lake,
Nampa, Post Falls, and Rathdrum, Idaho. The Company is building a fiber-to-the-premise
network. The Company disclosed that as of December 31, 23 it offered products capable of
providing a transmission rate of up to 8 gigabits per second("Gbps") symmetrical service. The
lowest transmission speed rate offered to customers was the "`TDS Connect' product at [a
symmetrical rate ofJ 200/200Mbps."Application at 1.
The Company asserted that as of December 31, 2023, 77,053 customer locations had
access to speeds above the FCC Speed Tier of 100 megabits per second ("Mbps")x 25 Mbps and
all of those locations had access to download speeds rate of 1 Gbps with some getting
symmetrical gigabit service. The overall build is scheduled to go into 2024 and beyond
extending to other cities in Idaho. These rates exceed the minimum statutory speed requirements
under Idaho Code § 63-3029I.
Finally, the Company confirmed that it invested $41,225,058.93 in 2023 in qualifying
broadband equipment that it confirmed is integral to its broadband network.
STAFF REVIEW AND RECOMMENDATION
Staff examined the list of the proposed broadband equipment and believes the equipment
qualifies for the investment tax credit pursuant to Commission Order No. 35297 and Idaho Code
§ 63-30291(3)(b). Staff recommends that the Commission issue an order confirming the listed
equipment is qualified broadband equipment and forward that order along with a copy of the
Application to the Idaho State Tax Commission.
DECISION MEMORANDUM - 2 - OCTOBER 29, 2024

COMMISSION DECISION
Does the Commission wish to issue an order confirming the equipment identified in Case
No. TML-T-24-01 is qualified broadband equipment as defined in Idaho Code § 63-3029I(3)(b)
and forward that order along with a copy of the Application to the Idaho State Tax Commission?
fi�g 4A --ia
han E. Kalala-Kasanda
Commission Staff
I:\Uti1ity\UDMEM0S\TML-T-24-01 Decision Memo.docx
DECISION MEMORANDUM - 3 - OCTOBER 29, 2024