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Home My WebLink About20260610Staff Comments.pdf RECEIVED June 10, 2026 ERIKA K. MELANSON(Bar No. 11560) IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION JEFFREY R. LOLL (Bar No. 11675) DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334- 0320 Attorneys for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ZIPLY FIBER PACIFIC, ) LLC, D/B/A ZIPLY FIBER'S APPLICATION ) CASE NO. ZFP-T-24-02 FOR DESIGNATION AS AN ELIGIBLE ) TELECOMMUNICATIONS CARRIER IN THE ) STATE OF IDAHO TO RECEIVE FEDERAL ) COMMENTS OF THE LIFELINE SUPPORT ) COMMISSION STAFF 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 3, 2024, Ziply Fiber Pacific, LLC dba Ziply Fiber applied to the Commission for designation as an Eligible Telecommunications Carrier ("ETC") in the State of Idaho ("Application"). On March 20, 2025,the Commission issued Notice of Application and Notice of Modified Procedure setting comment deadlines. Order No. 36517. On September 10, 2025, the Company filed a Motion to Table Deliberations ("Motion"). The Company requested that the Commission table its deliberation until the information that Staff believed was pertinent was included in the record. Motion at 1. The Company also requested additional time to collaborate with Staff regarding those concerns, and the Company represented to the Commission that "good cause exist[ed] to defer deliberations until [Staff s] concerns ha[d] STAFF COMMENTS 1 JUNE 10, 2026 been fully addressed and the record properly supplemented, thereby allowing the Commission's decision to rest upon a complete and accurate record." Id. at 1-2. During the Commission's September 11, 2025, decision meeting, the Commission denied the Motion finding that the procedural schedule for comments on the Application had already passed. The Commission noted that the Company could continue working with Staff and was free to file late additional information,which the Commission might consider. On November 10, 2025, the Company filed the Declaration of Jessica Epley with confidential attachments intended to supplement the record,including a map denoting the location of Company facilities that would be used to provide Lifeline services. On March 19, 2026, the Company filed a Supplemental Notice Regarding Tribal Notification. In its supplemental notice, the Company requested that the Commission: (1)accept the Supplemental Notice Regarding Tribal Notification; (2) accept the attached Tribal notice materials as part of the record supporting the application; and (3) consider the ETC application once the Commission was satisfied that Tribal authorities had a reasonable opportunity to review and respond to the notice provided. STAFF ANALYSIS Staff reviewed the record and the requirements set forth in the 1996 Telecommunications Act, FCC regulations and Commission Order Nos. 29841 and No. 35126. In the Company's Application, it requested a statewide ETC designation, including tribal lands, as a Lifeline only provider and asserted that it meets all statutory and regulatory requirements. Application at 2. Staff believes that the Company has not demonstrated that it meets all statutory and regulatory requirements which include being able to provide the universal services required as a Lifeline ETC provider in the State of Idaho. Appendix A of Order No. 35126 provides the requirements for an ETC designation. In its previous comments, Staff expressed its opinion that the Company did not satisfy all of the ETC requirements. In the Company's reply comments, supplemental information and responses to Production Requests, the Company provided additional information and met some of the requirements,such as tribal notices. However,even though there is information that satisfies some of the requirements, it does not satisfy all of the requirements such as providing universal service and public interest. Staff stands by its original recommendation of denial due to the Company not STAFF COMMENTS 2 JUNE 10, 2026 being able to demonstrate the ability to continuously provide universal services throughout the proposed service area. Staff believes the Company has failed to demonstrate that it is able to provide universal services in the proposed service area. Order No. 35126 states "the ETC applicant must demonstrate that it is capable of providing and will continuously provide throughout its proposed service area the universal services set forth in C.F.R. § 54.101(a), either by using its own facilities or a combination of its own facilities and resale of another carrier's services." See 47 U.S.C. § 214(e)(1)(A). There are nine services that are considered universal services. Order No. 35126. Staff does not believe that the Company will be able to provide all nine services across the entire state of Idaho. The Company was granted a Certificate of Public Convenience and Necessity ("CPCN"), Certificate No. 540, in Order No. 35618 in Case No. 35618. Order No. 35618 establishes the Company's designated service areas as: Boise,Idaho Falls,Lewiston Meridian,Nampa,Pocatello, Rexburg and Twin Falls. Even though the Company indicated in this case that it wanted to expand its service areas in the future, the Company has yet to file to expand its CPCN designated service areas. In the Company's confidential map, the facilities identified as those that would be used to provide Lifeline services generally coincide with the service areas identified in the Company's CPCN—leaving large swaths of the state uncovered. Epley Declaration, Exhibit A. Under the federal ETC requirements,an ETC must"offer the services that are supported by Federal universal service support mechanisms"throughout its designated service area. See 47 U.S.C. § 214(e). The Company is requesting a statewide ETC service designation, exceeding its CPCN designated service area. Staff believes that ETC service area should not exceed the CPCN's designated service area. The Company stated that it is sharing facilities with the three other Ziply affiliates in Idaho. Application at 7 and 9. Staff is concerned with the Company's ability to demonstrate that it can continuously provide universal services in the designated service area. It must also certify a commitment and ability to provide supposed services. There are two open cases (CTC-T-24-01 and GNR-T-25-05) involving Ziply affiliate companies to investigate customer concerns with quality or lack of service(s), and inability to adequately respond to customer complaints. Staff is concerned that the Company will not be able to continuously provide all nine universal services STAFF COMMENTS 3 JUNE 10, 2026 statewide given it shares facilities with the two affiliates identified. Staff suggests that the Company apply for an ETC designation in the designated services areas identified in its CPCN. Staff also believes that the Company did not satisfy the public interest requirement. According to 47 U.S.C. § 214(e)(2)and in Order No. 35126,"the ETC applicant must demonstrate that the ETC designation is consistent with the public interest, convenience and necessity." There are four affiliate Ziply companies currently providing telecommunication services in their designated services areas. Currently, there is an open case (ZWL-T-24-02) for one of the sister affiliates with an identical application for statewide ETC designation. From the Company's Application, it does not appear to Staff that there are any unique or distinguishable services being offered to customers that would support an increase in consumer choice. Staff fails to see the benefit to customers when two, and in some designated services areas three, affiliate companies are providing identical Lifeline services. Staff believes the Company has not satisfied the public interest requirement for a statewide ETC designation. After reviewing the Company's Application, responses to production requests, supplemental information, Staff s initial comments and the Company's reply comments, Staff recommends denial of the Company's request for statewide ETC designation. The Company has failed to demonstrate its ability to continuously provide universal services and meet the public interest requirement. Staff believes that there is no increase in customer choice and the Company failed to identify unique benefits that set it apart from its competitors and the other three Ziply affiliates. Staff recommends denial of the Company's request for a statewide ETC designation in Idaho. STAFF RECOMMENDATION Staff recommends the Commission deny the Company's Application for a statewide ETC designation in Idaho. Respectfully submitted this 10th day of June 2026. ��V n Erika K. Melanson Deputy Attorney General Technical Staff. Allison Moore I:\Utility\UMISC\COMMENTS\ZFP-T-24-02 Comments.docx STAFF COMMENTS 4 JUNE 10, 2026 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 1 Oth DAY OF JUKE 2026, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN CASE NO. ZFP- T-24-02, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING: JESSICA EPLEY ZIPLY FIBER PACIFIC LLC 135 LAKE ST S STE 155 KIRKLAND WA 98033 E-MAIL: jessica.epley�ziply.com PATRICIA JORDA9, SECRETARY CERTIFICATE OF SERVICE