20260224Staff Comments.pdf

RECEIVED
February 24, 2026
ERIKA K. MELANSON IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 11560
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF VIASAT CARRIER )
SERVICES, INC.'S APPLICATION FOR A ) CASE NO. CTC-T-25-01
DETERMINATION OF WHETHER ZIPLY )
FIBER OF IDAHO,LLC AND ZIPLY FIBER )
NORTHWEST,LLC QUALIFY TO ) COMMENTS OF THE
DISCONTINUE BASIC LOCAL EXCHANGE ) COMMISSION STAFF
SERVICE UNDER IDAHO CODE § 62-612 )
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its attorney of record, Erika K. Melanson, Deputy Attorney
General, submits the following comments.
BACKGROUND
On October 29, 2025, Ziply Fiber of Idaho, LLC, and Ziply Fiber Northwest, LLC, both
d/b/a Ziply Fiber (collectively "Ziply") filed a Notice of Discontinuance of Service ("Notice").
Specifically, Ziply notified the Commission of its intent to discontinue basic local exchange and
message telecommunication services within certain townships near Elk City, Idaho. According to
Ziply, only three customers remain within this exchange area, all of whom currently receive
equivalent voice and broadband service from Viasat Carrier Services, Inc. ("Viasat").
On November 28, 2025, Viasat applied for a determination of whether Ziply should be
allowed to discontinue basic local exchange and message telecommunication services as described
in the Notice. According to Viasat,it is not designated as an Eligible Telecommunications Carrier
("ETC") in significant portions of the townships in which Ziply seeks to discontinue service.
STAFF COMMENTS 1 FEBRUARY 23, 2026

STAFF ANALYSIS
Staff has reviewed the Notice, comments, and documentation that have been submitted to
the Commission. The Notice states that Ziply is discontinuing service in a portion of its Elk City
exchange area. During Staff s review of the information submitted, three areas of concern were
identified: (1) Viasat as an equivalent service provider to Ziply, (2) redefining CPCN and ETC
service areas, and(3) and the potential for cream-skimming.
Equivalent Service Provider
Viasat does not qualify as an alternative equivalent service provider to Ziply, as required
by Idaho Code § 62-612. Idaho Code § 62-612 provides that:
"[a] telephone corporation . . . which provides basic local exchange
or message telecommunication service, may not withdraw or
otherwise discontinue such service to a local exchange area unless
one or more alternative telephone corporations are furnishing the
respective telecommunication service or equivalent service to the
customers in such local exchange area at the time such service is
withdrawn or otherwise discontinued."
In the Notice, Ziply states that"Viasat is a respective or equivalent service provider in the
affected area." Notice at 2. Additionally, Ziply claims that "Viasat offers voice and broadband
connectivity to customers via satellite technology and is capable of providing equivalent
telecommunications service to this local exchange area." Id. Staff does not believe that Viasat
provides respective or equivalent service(s) to Ziply.
Both Ziply affiliates are on record with the Commission as a competitive local exchange
carrier. In the Notice, Ziply states that they are a "telephone corporation operating and providing
basic local exchange and messaging telecommunication services." Notice at 1. Basic local
exchanges service utilizes dedicated copper wires and circuit switching. In rural areas this type of
service is the most reliable to access emergency services such as 911. The areas that Ziply has
identified are not only rural but also mountainous. Satellite, cellular and broadband services are
not as reliable in remote, mountainous and rural areas.
Viasat is on record with the Commission as an "other telecommunications service
provider" which means that they provide telecommunication services other than basic local
exchange services. Viasat "offers voice and broadband connectivity to customers via satellite
technology." Notice at 2. As a result, Viasat's infrastructure is not set up to provide equivalent
basic local exchanges services to the impacted customers.
STAFF COMMENTS 2 FEBRUARY 23, 2026

It should be noted that Viasat has an ETC designation but not for the entire area in which
Ziply is requesting to discontinue services. According to Viasat"less than 50% of the geographic
area and approximately 1.2% of the locations in which Ziply intends to discontinue service,
overlap with locations in Viasat's census blocks." Viasat Comments at 3. Viasat stated in their
comments that they"did not then, and does not now,propose to serve any portions of the State of
Idaho outside of the census blocks identified in its ETC Application."Id.
Viasat and Ziply both state that Viasat Inc., the parent company of Viasat, could provide
non-ETC services to the affected area. The concern would still be that the parent company would
not be able to provide equivalent basic local exchange services. Additionally,the parent company
is not on record with the Commission as providing telecommunication services in Idaho. Staff
does not believe that Viasat is able to provide equivalent services to customers in the affected area
as required by Idaho Code § 62-612.
ETC and CPCNSerivice Areas
Allowing Ziply to discontinue service in the proposed service area would not be in the
public interest. When a telecommunication service provider wants to provide local exchange
services in Idaho, they are required by Commission Rules 111 to apply for a CPCN. IDAPA
31.01.01.111. Additionally, if a telecom company wants to receive Universal Service Funds for
high-cost and low-income support, such as rural areas, they must also apply for an ETC
designation. For both designations companies are required to provide information about the
proposed service area (i.e. narrative, map or a list of exchange areas that township and range).
Order No. 29841 and Order 26665. Part of the review process and requirements for these
designations is to determine if this designation is in the best interest of the public.Id. Specifically,
for an ETC designation an "applicant must demonstrate that 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 that the public interest will be met by an additional designation."
Order No. 2984. In rural and mountainous areas, such as the area that Ziply is requesting to
discontinue service, having a basic local exchange carrier is vital for the public to stay connected
and to have the ability to reliably access 911 emergency services. Staff believes that Ziply
discontinuing service to the area would not be in the best interest of the public.
Currently there are two formal complaints that have been filed with the Commission
involving Ziply, for unreliable service and failure to maintain equipment in the area identified in
STAFF COMMENTS 3 FEBRUARY 23, 2026

to be discontinued. Case Nos. CTC-T-24-01 and GNR-T-25-05. The customer in Case No. CTC-
T-24-01 is one of the three customers who live in the area that Ziply is requesting to relinquish.
One of the solutions that Ziply has tried in this case involves a satellite phone from Viasat to
provide service to the customer. The customer has indicated to Staff that he is able to get service
by using the Viasat phone but if the power goes out, which happens often, the satellite phone does
not work. This customer has also commented on this case and has indicated his need for reliable
landline service to be able to contact emergency services. Public Comment at 1.
In case GNR-T-25-05 there are multiple areas identified as having unreliable service from
Ziply. One of the mentioned areas of concern is also part of the territory Ziply is proposing to
discontinue service. As part of this case, Staff has reached out to various businesses, and previous
Ziply customers. The previous customers all stated that they would like to have a landline or basic
local exchange,but due Ziply's unreliable service they had to find alternative means.
Cream-skimming
Staff is also concerned that Ziply is not just discontinuing service in part of their CPCN
and ETC designated service areas but are consequently redefining their service area for both
designations. The Commission has the authority to issue CPCNs to telecommunication companies
providing basic local exchange service, in addition to granting ETC designations. Idaho Code §§
61-527 62-604; 47 U.S.C. § 214(e); Idaho Code §§ 62-610D and 62-615(1). As a result, if a
company wants to change their Commission approved designated service areas,then the company
would need to petition to amend or redefine these designated service areas. This would require the
Commission to re-evaluate if the company still meets the requirements necessary to hold a CPCN
and be designated as an ETC. Case No. CTL-T-23-02. Staff recommends that Ziply submit a
petition to the Commission to redefine their ETC service area and amend their CPCN.
Additionally, when an ETC wants to redefine their service area, they not only need
approval from the Commission, they also need approval from the Federal Communications
Commission("FCC"). FCC DA 10-1601. As a result,Ziply would need to seek approval from the
Commission but also from the FCC. The proposed redefinition does not take effect until the FCC
and the appropriate state commission agree on a single redefinition. Id. at 4. A component of the
FCC review process for a proposed redefinition involves completing a cream-skimming analysis.
FCC 08-122. Cream-skimming happens when an ETC targets the most profitable or lowest cost
customers in a service area. Id. Staff has reviewed the ETC areas that Ziply has proposed to
STAFF COMMENTS 4 FEBRUARY 23, 2026

discontinue service and the remaining Elk City exchange area where they will be continuing to
provide service. The area that Ziply is proposing to keep is around Elk City, which would be the
most profitable portion of their identified ETC service area.As a result, Staff is concerned that this
meets the definition of cream-skimming.
STAFF RECOMMENDATION
Due to concerns with Viasat not being an equivalent service provider, public interest
concerns and the potential for cream-skimming, Staff recommends the Commission deny Ziply's
request to discontinue basic local exchange services within the proposed Elk City exchange area.
Respectfully submitted this 23rd day of February 2026.
Q
X('AA/7L --
Erika K. Melanson
Deputy Attorney General
Technical Staff. Allison Moore
I:\Utility\UMISC\COMMENTS\CTC-T-25-01 Comments.docx
STAFF COMMENTS 5 FEBRUARY 23, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 23RD DAY OF FEBRUARY 2026,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. CTC-T-25-01, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
Company, Viasat Carrier Services,Inc.:
SHELBY STRIEGEL
349 INVERNESS DRIVE
SOUTH ENGLEWOOD, CO 80112
E-MAIL: shelby.striegel(d),viasat.com
Ziply Fiber:
ALAN GALLOWAY
MARK TRINCHERO
DAVIS WRIGHT TREMAINE, LLP
560 SW IOTH AVE, SUITE 700
PORTLAND, OR 97205
E-MAIL: alan alg [e-mail]
marktrinchero gdwt.com
C. TOM ARKOOSH
ARKOOSH LAW OFFICE
913 W. RIVER STREET, SUITE 450
P.O. BOX 2900
BOISE, ID 83701
E-MAIL: tom.arkoosh(d,arkoosh.com
[e-mail]
PATRICIA JORDA14, SECRETARY
CERTIFICATE OF SERVICE