20250617Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHAN E. KALALA-KASANDA, COMMISSION STAFF
JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL
DATE: JUNE 17, 2025
RE: IN THE MATTER OF CAMBRIDGE TELEPHONE COMPANY, INC.'S
APPLICATION FOR THE 2024 BROADBAND EQUIPMENT TAX
CREDIT; CASE NO. CAM-T-25-02.
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 seconds 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§ 63-30291(4). Once the Commission has determined that the installed
equipment is eligible for the broadband equipment tax credit, an order along with the original
Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM - 1 - JUNE 17, 2025

THE APPLICATION
On April 24, 2025, the Commission received an Application from Cambridge
Telephone Company Inc. ("Company") seeking approval for a broadband tax credit for the
equipment installed during the 2024 calendar year.
In the Application, the Company lists the capital investments related to equipment
associated with its broadband network. The Company confirmed that, during 2024, it added 0.23
miles of copper and duct, along with 127.19 miles of fiber cable and duct. The Company asserts
that all listed items are essential for providing broadband service and are an integral part of its
broadband network. Application at 1.
The Company stated that the broadband services it provides to customers utilize Digital
Subscriber Line, wireless, and fiber-to-the-home technologies. The Company also noted that
it uses Cisco, Optelian, and Brocade in its backbone network' and Calix for its digital loop
carriers ("DLC")2. Id.
The Company confirmed that it offers broadband services to its customers at
transmission rates ranging from 25 megabits per second ("Mbps") to 1 gigabit per second
("Gbps") downstream, and from 3 Mbps to 1 Gbps upstream. The Company reported that
during 2024, it acquired a total of 35 internet customers, increasing the total to 3,121 who
have at least one of the services mentioned above. The Company indicated that these services
have been available to 87% of its total customer base throughout 2024. Id.
The Company reported that it invested $7,173,564.82 in qualifying broadband
equipment in 2024, which amounts to a 3% broadband tax credit totaling $215,206.94. Id. at
4.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment and believes the identified
equipment qualifies for the investment tax credit pursuant to Commission Order No. 35297
1 A backbone network is a high-speed central connection or network that serves as the main route for data transmission
between different networks or devices. It uses high-speed cables, routers, switches, and other hardware components to
relay data between its users' computers, supporting the transfer of data,voice, and video information in a large area or
vast geographic region.
z A DLC is a telecommunication system used for extending the reach of a telephone exchange by converting analog
signals into a digital format. It consists of a central office-based equipment and remote terminal devices. By digitizing
and multiplexing analog voice signals,it enables more efficient use of communication lines and improved voice quality.
DECISION MEMORANDUM - 2 - JUNE 17, 2025

and Idaho Code § 63-3029I(3)(b). Staff recommends that the Commission issue an order
confirming that the equipment is qualified broadband equipment and forward the approving
order, along with a copy of the original Application, to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an order confirming the broadband
equipment identified in Case No. CAM-T-25-02 is qualified broadband equipment as
defined in Idaho Code § 63-3029I(3)(b), and forward the order and Application to the Idaho
Tax Commission?
Anything else?
i
an E. Kalala-Kasanda
Commission Staff
I:\Uti1ity\UDMEM0S\CAM-T-25-02 Decision Memo
DECISION MEMORANDUM - 3 - JUNE 17, 2025