20201116Telephonic Hearing Transcript Vol I.pdf

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CSB REPORTING
Certified S horthand Reporters
Post Office Box9774
Boise,Idaho 83707
c sbreporti n g @.n" aho o. com
Ph: 208-890-5198 Fax: [phone]
Reporter:
Constance Bucy,
CSR
BEEORE THE IDAHO PUBL]C UTILITTES COMMISSION
IN THE MATTER OE ENVISION
NETWORKS LLCIS ELIGIBILITY TO
HOLD CERTIFICATE OF PUBLIC
CONVEN]ENCE AND NECESSITY NO. 529
CASE NO. ENL_T_20_01
TELEPHONIC HEARING
BEFORE
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COMMISSIONER KRISTINE RAPER (Presiding)
COMMISSIONER ERIC ANDERSON
PLACE:Commission Hearing Room
l-1331 West Chinden BIvd.Building 8, Suite 201-ABoise, fdaho
EATE:November 10, 2020
VOLUMEI-Pagesl-20
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CSB REPORT]NG
208.890.5198
APPEARANCES
Eor the Staff:Matt Hunter, Esq.
Deputy Attorney General-
11331 West Chinden Bl-vd.Building 8, Suite 201-A
PO Box 83120Boise, Idaho 83120-0074
Eor Envision Networks:
( Telephonically )
tysJ.e D. Barthlome
Envisi-on Networks LLC
9950 Pepper Grass PtPocatello, Idaho 83204
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APPEARANCES
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CSB REPORT]NG(208) 890-s198
EXHIBITS
NUMBER DESCRIPTION PAGE
FOR THE STAFF:
1. Affidavit of Daniel Klein Identified
Admitted
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2. Certif ied mail- receipt Identified
Admltted
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2 Order No. 26665 in Case
No. GNR-T-96-4
Identified
Admitted
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EXHIBITS
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CSB REPORTING
208.890.51_98
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BOISE, fDAHO, TUESDAY,NOVEMBER 10, 2020, 2200 P. M
COMMISSIONER RAPER: Good afternoon. This
is the time and place set for a show cause hearing in
Case No. ENL-T-20-01. The purpose of this hearing is to
allow the Company an opportunity to show cause why the
Commission should not rescind Order No. 34443 based on
the Company's failure to meet the Commission's prescribed
conditions for CPCN issuance. Rescindj-ng this finaL
Order would result in the revocation of the Company's
CPCN.
My name is Kristine Raper. I am the Chair
of today's proceeding and we also have Commissioner Eric
Anderson participating by phone. A show cause Order was
initially issued on September 28th. That Order has since
been rescinded. A new show cause Order was issued on
October 19th. The Order stated t.wo claims against the
Company. This hearing is being held in order to allow
the Company an opportunity to address the claims against
ir.
There will be a transcript made of these
to the underlying record,
the Commissioners will
and evidence in the record to make its
proceedings that
and subsequent to
review the facts
will- be added
this hearing,
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CSB REPORT]NG
208 .8 90 . 5198
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fi-nal decision in this case. We do use a court reporter
creatingfor these hearings and today we have Connie
an official- transcript for our record.
As an initial matter, we'11
purposes of the record parties present and
Let's begin with the Company.
MR. BARTHLOME: LD Barthlome
Bucy
is what I go
by. My actual lega1 name is Lysle David Barthlome.
COMMISSIONER RAPER: Could you spe11 your
l-ast name for the record, sir?
MR. BARTHLOME: Oh, of course. It's
B-a-r-t-h-l--o-m-e .
COMMISSIONER RAPER: Okay, thank you, and
then representing Staff.
MR. HUNTER: Matt Hunter, l-ast name
H-u-n-t-e-r.
COMMISSIONER RAPER: Thank you,
Mr. Hunter. It's my understanding we do not have anybody
else on the line or present in the Hearing Room, so we
will- move to the Company first, this having been an Order
to show cause. Mr. Barthlome, is there a statement that
you would l-ike to make for purposes of the record?
MR. BARTHLOME: Yes. On which claim would
you like me to do first if you would state that?
COMMISSIONER RAPER: V[e]-l_, f 'm looking at
document for
their counsel-.
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CSB REPORTTNG
208.890. s198
3
the show cause Order
through your defense
to Claim 1, which is
as a wholer So
to claim -- to
if you want to work
the violation of
34443, and then you can
2, which is violation of
floor is yours.
vio]ation of Commission Order No.
move ofl, if
Commi-ssion
you'd like, to Cl-aim
Order No. 26665. The
MR. BARTHLOME: Okay, I'm just pulling
them up now
COMMISSIONER RAPER: Mr. Barthlome, while
you're pulling up that information, I just wanted to 1et
you know
MR. BARTHLOME: I had it up and it went
away.
COMMISSIONER RAPER: pardon?
MR. BARTHLOME: Go ahead. yeah, f had it
up and it's not pulling up now from the email that I had
from the one that I received yesterday. I don't know why
the heck f can't pu11 i-t up on my work computer.
COMMfSSIONER RAPER: I just wanted to put
you on notice that standardly as a part of these
proceedings, after you make your statements and then
again after Staff has any additional, statements to make
for the record, the Commissioners are allowed an
opportunity to ask questlonsr so
MR. BARTHLOME: Okay.o 25
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CSB REPORT]NG
208.890. s198
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let you know
up on my screen.
proceediDgs, so
back up and see
back up, so one
one, I have not
correct, in the
reports, I wil-l
before the first
with me that was
at my records, he
telephone company
area, so he left.
I'Il- just restart and see
if the Apple, Apple Book,
of the the claim as I
filed for my ASN numbers,
affidavit that was filed?
if it will come
will bring it
remember it is
is that
COMMISSIONER RAPER:I just wanted to
MR BARTHLOME: [Inaudib]-el when I had it
I'm going to do a reboot while I'm
going through this, but I don't want to hold up the
COMMISSIONER RAPER: The flrst claim is a
failure to fil-e the reports that
Order 34443 and were a condition
CPCN.
were required under
of issuance of the
for that. I had
a gentleman working
MR. BARTHLOME: So the reports, the
take responsibility
of the year, I had
taking care of
behind-the-scenes business and
basically the
he was doing all-
fj-nancials and this and that and taking care of
Around, I don't know, November of
my
that.
accepted
that was
last year, I'm looking
job with another
a startup up in the Seattle
We11, the emaj-l address that everything
another
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CSB REPORTING
208.890. s198
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was being sent to, I didnrt know it. I didn't have
access to 1t, so once f realized that I had gone
through the and I just didn't even realize to file the
reports. Once I realized they needed to be filed, I
caIled, submitted, and got them fil-ed. I now have went
in and changed, you know it was basical-ly an
ldbarthl-omeGgmail.com address that he had set up for me
so that I had it. I just never had access to it, so
that's why the filings did not get reported.
COMMISSIONER RAPER: Okay, and I
understand that those reports have since been filed; is
that correct?
MR. BARTHLOME: They have.
COMMISSIONER RAPER: And can you just
state for the record whether those reports have a list of
any customers?
MR. BARTHLOME: There's no customer list
that I attached to them. When I was talking to, I
he just said you
didn't know I had
did not know that.
was, Daniel with
know,a
You mean like name, phone number, address? You mean l_ike
a true l-ike an actual- submit their j-nformation,
okay.
COMMISSIONER RAPER: We11, the reports
believe it
just fill
to attach
out, you
an actual-
the PUC,
number. I
customer l-ist. I
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CSB REPORTING
208.890. s198
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were supposed to indicate the number of basic .l_ocal
exchange customers that you were offering services to.
Did the reports identify that information?
MR. BARTHLOME: Yes, y€s, they did.
COMMISSIONER RAPER: And was there a list
of any basic loca1 exchange customers on any of those
three reports? Were there any customers identified?
MR. BARTHLOME: There was not.
COMMfSSIONER RAPER: Okay, thank you, so
did you want to move on with that to viol-ation No. 2?
MR. BARTHLOME: Sure, sure, go ahead. I'm
still not abl-e to pu11 it up. I don't know why. I can
pull up the email. I just can't pulI up the attachments
and they're just basicall-y pdf documents. f can see
them. I mean, Order No. 26655, Affldavit of Kl_ein
Daniel. I mean, I can pull up them, certified mail_
receipt. I mean, I have it afI. I just can't puII it
up, so the second -- so, yeah, let's move on to Clalm 2.
That would be fine.
COMMfSSIONER RAPER: So I understand
technol-ogy hiccups because we have those as wel1. I just
want you to know that it's not standard practice for me
to walk
for you
viol-ated
through the violations. This is a hearingyou
to
the parts and pieces
represent for your Company whether you
of the Order that we
have
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identified and whether we should revoke your CPCN as a
result. That being said, I will move on to the second
viol-ation that's l-isted and it reads in our Order to show
cause, "Consistent with Title 62 and this Commission's
established practices, telephone corporations that do not
provide basic locaf exchange service are ineligible for a
CPCN. On October 5th, 2020, the Company filed reports
with the Commission indicating t.he Company has zero baslc
Iocal- exchange customers. "
Did you want to respond to t.hat?
MR. BARTHLOME: Yes, so we do offer we
do have a telephone switch that we purchased when we very
first started our -- before we started our, you know,
process. A gentleman that helped us get our CpM, Michael
Iinaudible], actually helped us acquire the equipment,
tralning set up, this and t.hat, so we do have the
capability of offering traditional- copper phone lines.
We have a pricing range, $15.99 per month
f or a copper l-ine. That includes call waiting, call
forwarding, voicemaif. It converts the voice to an
email, sends it to your you know, all- in that, and our
findings in some of the in the majority of the
residential, we don't even have anybody even ask for
telephone. We do offer it because even at $15.99 a
month, there is some profit to be made margin-wise from
CSB REPORTING
208.890. s198
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CSB REPORTTNG
208 .890.5198
t,
our standpoint, so we would love the people to sign up
for it as far as that goes. We just have not had any
takers.
f n the l-ast subdivision of 200, I think
there's let me get my notes. There was 225 homes
being, new homes being, built. Actual1y, excuse me,
there was already 100 existing and 125 being built. We
went i-n and did an installation for the first 100 homes.
We did not have one signup for copper telephone lines.
In the second halfr we started, you know, installing the
cable and condults in the second harf of the subdivision.
we had three people that expressed lnterest in having a
home telephone, so we, you know, put the copper into
their house and once we got there to do the installation,
they declined it and did not want the they decided
they were just going to use their cell_ phones.
One actually went with a VoIp phone. The
other two just said cell phones. We trled to get
information from them as to why, but that's all they
would tell usr so we do have the capability to offer
copper telephone. We just have not had anybody sign up
for it, and r think our rates are competitive at $15.99,
so that's al1 f can say is
COMMISSIONER
just nobody has signed up
RAPER: Okay, so woul_d you
floorIike to address the final issue before f give the25
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CSB REPORTING
208.890. s198
9
to our Deputy Attorney General Matt
Commission should not rescind Order
Hunter as to why the
34443 based on your
failure to meet the commission's prescribed conditions
for the issuance of your CPCN?
MR. BARTHLOME: Sure.On the first part,
f understand that the filings are
want to try to downplay them, that
any information and we shoul_d have
is I ' 1l- take the responsibility
forward, I have that rectified and
for that and moving
everything shoul_d be
be filed on time.
have that
critical-
they' re
had them
and f don't
not useful for
filed. That
going forward and everything should
On the second one, as far as the cl_aim as
far as not adding any residentiar- telephone customers,
tradj-tional telephone customers, it's you know, I
don't have the advantage of being an rLEC in some areas,
in a rural area, where you say yeah, you've got to take
the whole package.ff you want
weIl. I don't
Internet, you've got to
take the phone as
we're doing, you
that.
know, some rural areas and
advantage when
this and
One reason I don't think that you should
suspend, I would sdy, mine or anybody else's, because I
know there's others i-n my same situatlon that basicalry
provide Internet access, I mean,
11ne, that's where everything is
I'11 put it right on the
moving to and j_n those25
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CSB REPORTTNG
208.890. s198
rural- areas j-f we was to drop our service, I mean, they
customers.wou1d be very under-served, under-del_i_vered
We do offer, like I sai-d we do offer, the copper at
$15.99 a month, so it is available for them to take, but
I don't have the ability to force them to take, you know,
the services that they don't want.
COMMISSIONER RAPER: That's probably for
the best that you cannot force them to take services that
they do not want.
MR. BARTHLOME: You are correct, I woul_d
agree wlth thatr So I will sum it up now.
COMMISSIONER RAPER: If that concludes
your
have
submission of any
for the record, I
testimony or
woul-d like to
statements that you
telephone. We do
had a handful of
ask Commissioner
Anderson if he has any questions for you.
BARTHLOME: I do have one more real
quick. When I was reading the information, it listed
that I had not signed up for my, you know, for my,
basically my, ASN numbers for telephone and that is
correct, because I haven't had anybody sign up for it. I
did notice i-n the bottom in the next paragraph, it
mentioned also voiP telephone customers. r didn't think
MR
that that qualified
have a VO1P switch
for traditional-
as welI. We've
people sign up for VoiP telephone service as wel-l- but not25
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CSB REPORTING
208.890. s198
a great deal-.
up for the actual- VOiP. I
form. I didn't think that
customer and maybe they do
f ol-Iow up with that.
confj-rm a couple
issued in October
MR
I mean, probably 35 customers
would have listed
they qualified as
not and so I just
have signed
them on my
being a VOiP
wanted to
COMMISSIONER RAPER:
conclude your testimony?
MR. BARTHLOME: Yes.
COMMISSIONER RAPER:
Okay, does that
Okay, Commissioner
Anderson, were there any questions that you had?
COMMISSIONER ANDERSON: I have no
questions.
MR. BARTHLOME: Thank you.
COMMISSIONER RAPER: I just want to
of things for the record. Your CPCN was
20L9; correct?
BARTHLOME: Yes.
COMMISSIONER RAPER: So a Iittle over a
year ago. What do you having had difficulty getting
customers to this point, is there a business strategy to
obtain customers from here until sometime into the
future?
MR. BARTHLOME: We havenrt had a difficul_t
time, you know, bringing oD, you know, our fnternet25
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CSB REPORTING
208.890. s198
had great success
the same price, so
favoring one over
customers. We haven't had any
our VOiP system. We offer it at
there's no difference as far as that,
the other. We've had a few people sign
a few more features
know, copper l-ine
long distance,
forward because you
issues there. We haven't
with
up for the VOiP just because it has
that a traditional POTS line or, you
cannot do. You know, with unl-imited
thatrs usually what carries that one
get that.
f don't know on the copper. I mean, I go
to trade shows and conferences. I llstened to I went
last year to
the speaker.
Col-orado, and
is trying to
Denver to l-isten to
I mean, they were
I listened to the
figure out how to
and Centurylink was
there in Denver,
conferences and everybody
keep current copper
customers, you know, as a phone customer.
They're doing okay in the DSL world, but
to keep them as a true, true home phone, I mean, I offer
the service myself and I don't have a home copper phone
even myself. Everybody is just going away from it and I
don't know how to revitalize it. I mean, there's a ton
of infrastructure in the ground, not just in fdaho, but
across the country and how to get it revitalized, f don't
have an answer for that, and if somebody has an answer, f
woul-d love to take that. marketing strategy and see what25
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CSB REPORTING
208 .890.5198
it, you know, what it is.
COMMISSIONER RAPER: Okay, and can you
confirm for me, your title within the Company is what?
MR. BARTHLOME: f am the owner.
COMMISSIONER RAPER: Are you the sole
owner?
MR. BARTHLOME: I am.
COMMISSIONER RAPBR: Okay, and do you
know, the contact i-nformation that this Commi-ssion has on
file, is that current contact information for you, then?
MR. BARTHLOME: I am hoping sor yes. It
should be in Pocatello, Idaho, yes.
COMMISSfONER RAPER: Okay, f just wanL to
make sure that our records are the most up to date
possible. With that, does that
MR. BARTHLOME: I befieve so because f'm
getting your l-etters, so yeS, I believe so.
COMMISSfONER RAPER: Okay. Commissioner
Anderson, does that trigger any additional questions for
you?
COMMISSIONER ANDERSON: It does not.
COMMISSIONER RAPER: Okay, we will move
oD, then, to Mr. Hunter, Deputy Attorney General
representative of Commlssion Staff, do you have any
statements that you wourd f.ike to make for the record?25
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CSB REPORTING
208.890. s198
just have
l-ike to
I think the
MR. HUNTER: Commj-ssioner Raper, I do. I
three exhibits the Commission Staff would
would request be admitted into the record, and
easiest way is to klnd of wal-k through these
exhibits and I thlnk it has bearing upon
I 'm j ust goi-ng to
Mr. Barthlome's
walk throughSOstatementsearlier,
may. Thethem,
Daniel-
ifI
K]ein and he is
Commission and in his
first item is a sworn affidavit from
a utility analyst with the
sworn affidavit, he notes that he
contacted via email the North American Numbering Plan
Administrator to inquire whether Envision has been
assigned numbering resources.
He al-so asked whether Envision has a VoIP
authorization to get numbering resources, and the Nampa
representative responded that, to her knowledge, Envision
does not have numbering resources assigned to it and does
not have VOiP authorization. Also, in the affidavit,
Mr. Klein states that he accessed the FCC's online data
base to determine whether Envision has received VOiP
authorj-zation, and just kind of an aside, the reason why
Mr. Klein did that is to see whether there was anything
remotely connected with telephone being provided by
Envision. He was unabl-e to find any record that Envj_sion
had received VoIP authorization, and so with your
permission, I would request that this be admitted as25
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CSB REPORTING
208.890.5198
Exhibit L
COMM]SSIONER RAPER:
proceed through all three exhibits
l-ikel-ihood admit all three for the
making it easj-er, I think, on the
I'm not sure if you're moving
background sound is, but werre
MR. BARTHLOME:
If you'11 just
and then I will in all-
record at one time,
court reporter.
papers or what the
getting a l-ot
I'm trying to get my
MR. HUNTER: Certainly.
COMMISSIONER RAPBR: Go ahead.
Mr. Barthlome, if you coul-d mute your end of t.he phone,
computer booted, but
apologize.
I will mute it right now. I
Thank you, sir. GoCOMMISSIONER RAPER:
ahead, Mr. Hunter.
MR. HUNTER: Thank
is a certified mail receipt. The
show cause Order to Mr. Barthlome
recei-ved back on October 29th the
mailing, and I
you. The second item
Commission sent the
and the Commission
receipt for that
that be Exhibit No. 2thatwould request
Moving on to the third item, this is Order
telephoneNo. 26655, which states what Title 62
corporatj-ons must do 1n order to receive and maintain a
CPCN, and among those requirements is that they provide
basic local- exchange service and I request that that be25
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CSB REPORTING
208 .8 90 . 5198
objections to Exhibits 1-, 2,
purposes of the record? That
Mr. Barthlome.
MR. BARTHLOME:
statement is true.
Exhibit No. 3
COMMISSIONER RAPER: Are there any
admitted foror 3 being
would be directed at your
No, everything in his
COMMISSIONER RAPER: Okay, Exhibits 7, 2,
and 3 will be admitted for purposes of the record.
(Staff Exhibit Nos. 1 - 3 were admitted
into evi-dence.
COMMISSIONER RAPER: T woul-d also note
that we can take official noti_ce of our Orders, so Order
No. 26665 could be admj-tted without having to be admitted
for purposes of an
future hearings.
Is
to make in addition to
exhibit as an asi-de for the beneflt of
there any argument that you would like
the submission of exhibits or does
that conclude any additional statement you have for the
record?
MR. HUNTER: Commissioner Raper, I have
nothing additional- to add for the record.
Anderson,
COMMISSIONER RAPER: Okay, Commissioner
do you have any questions for Mr. Hunter?
COMMISSIONER ANDERSON: I do not.25
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COMMISSIONER RAPER: I. have one question,
Mr. Hunter, and it goes
Mr. Barthl-ome about any
in the future and I know
braj-n what he has done,
back to a question that I asked
business strategy to do busj-ness
that you can I t see into his
but has Staff ascertained any
ofevidence that the Company has moved in furtherance
obtalning basic l-ocal exchange customers?
MR. HUNTER: Commissi-oner
going to speak off of what
The Company appears to not
resources assigned to it.
authorizaLton, and at this
numbering
appear to have VOiP
on the three CPCN
Raper,
in the
I'm just
record.is currently
not have
It doesn't
point based
reports provided to the Commission, they have no existing
customers providing basic receiving basic local
exchange servicer so I think in my opinlon no.
COMMISSIONER RAPER: Okay, thank you.
Mr. Barthlome, we always give the l-ast opportunity to the
Company. Usually it's the person f11ing the application.
This case happens to be the one that the Order was filed
against. Do you have any final statements before we
cl-ose the record and the Commission deliberates privately
on the concl-usion of this docket?
MR. BARTHLOME: I don't other than I would
love to see, you know, what other companies are doing to,
you know, get people to sign up for local- exchange. I25
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can see businesses, you know, having that advantage of
fire alarms and things l-ike that, but residential users,
I don't know what the secret ingredient is. I mean, they
up Internet like crazy, as we all do, but tryinggobble
to get
now has
them
her
to go away from everybody -- the six-year-old
own cell phone, so having local- exchange in a
environment, which is primarily where we
our time, we just do not have very good luck.
had any luck at people, you know, signi-ng up
I know the trend across the nation, across
residential
concentrate
We haven't
for it, and
Idaho is the same.
I mean, it's dropping like crazy as far as
f or l-ocal exchange. I would hope that the PUC wou1d
somehow do what other states have done and afl-ow take
us under your wing as a CLEC and I understand local
exchange is the only way you guys can regulate us, but
can we add something to the Telephone Act of '84, you
know, or whatever year that was implemented and take us
under your wing, because everything is moving towards
Internet-based, Internet-based, Tnternet-based, and so to
go spend another million dollars on a focal exchange
switch, I was lucky to find one from a telco that was
doing an upgrade and so I purchased their switch that was
five years old, so lucki1y, I came across it, but I don't
know how to package loca1 exchange copper telephone. A25
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Iot of people aren't even running copper lines in their
that woul-d be my closinghouses anyrnore for telephone, so
statement.I thank you.
COMM]SSIONER RAPER:
you for actually
two no shows in
appearing for
l-ike hearlngs
Commission and
this
Okay, I want to thank
hearing. We have had
think it showsand I
respect for the
jurisdiction by
behalf of your
time to submit
its authority and
you showing up and making an argument on
Company, so I thank you for taking the
your
i/iirh
argument to
that, this
us today.
CASE is now fulIy
del-iberate privatelysubmitted. The Commissioners will
and issue a final Order and this show cause hearing is
adj ourned.
(The telephonic hearing adjourned at
2:32 p.m.)
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AUTHENT]CATION
This is to certify that the foregoing
terephonic proceedings hefd in the matter of Envision
Networks LLC's eligibili-ty to hold certificate of
public convenj-ence and necessity No. 529, commencing
at 2:00 p.m., oo Tuesday, November 10, 2020, dt
Commission Hearing Room, 11331 W. Chinden B1vd.,
Building 8, Suite 207-A, Boise, Idaho, is a true and
correct transcript of said telephonic proceedings and the
original thereof for the file of the Commission.
CONSTANCE
Certified
S. BUCY
Shorthand Reporter
25
2A AUTHENTICATION