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HomeMy WebLinkAbout20030825Clear Talk Objections to ITA Requests.pdfMolly O'Leary, Esq. (ISB # 4996) Richardson & O'Leary, PLLC 99 E. State Street, Suite 200 Eagle, Idaho 83616 (208) 938-7900 ~C :~:\iED :: :: zorn r,'J~ ~~5 Mi! 9: 33 " '- '- UTi:_;. Ie.::: CU':.-iiSSION Sean P. Farrell, Esq. (CSB # 186902) General Counsel IA T Communications, Inc. NTCH-Idaho Inc., dba Clear Talk 703 Pier Avenue, Suite B, PMB 813 Hennosa Beach, CA 90254 (310) 548-0939 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of IA T Communications, Inc. a. Clear Talk, Petition For Designation As An Eligible Telecommunications Carrier Docket No. GNR-O3- CLEAR TALK'S OBJECTIONS TO IDAHO TELEPHONE ASSOCIATION'S FIRST SET OF DISCOVERY REQUESTS IA T Communications Inc. ("Clear Talk") hereby objects to Idaho Telephone Association s First Set of Discovery Requests as follows: uest No.Obiection(s) Please state the total number of Clear Talk subscribers in each of the requested Designated Areas, identifying these customers as either business or residence users. Clear Talk objects to this request on the grounds that it is burdensome insofar as it seeks a compilation, and Clear Talk does not currently track its customers as business or residential users. Notwithstanding the foregoing objections, Clear Talk will provide subscriber counts to the best of its ability. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY- Please state the number of Idaho subscribers Clear Talk currently serves in all areas outside the requested Designated Areas, identifying these customers as either business or residence users. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Insofar as Clear Talk's Application is limited to the Designated Areas, Clear Talk is not required to produce information regarding subscribers in other areas. Please describe the various rate plans and services Clear Talk provides to its customers, including all rate plans, measured usage services, roaming charges, product lines, service bundles, and features. Clear Talk objects to this request on the grounds that it seeks information equally available to the party requesting such information, insofar as information regarding Clear Talk's rate plans and service is publicly available on Clear Talk's website www.cleartalk.net.Notwithstanding the foregoing objection, Clear Talk will produce retail materials regarding its rate plans and service. Please provide copies of the documents relating to Clear Talk's decision to me for ETC status in the state of Idaho, including but not limited to memorandums, board of director minutes, management presentations, correspondence and fmancial analysis and forecasts. Clear Talk objects to this request as improper because it seeks information that is privileged, including attorney-client communications and attorney work product. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. What is Clear Talk's monthly average revenue per Idaho subscriber for the six month period ending June 30, 2003 and for fiscal years 2002 including in the calculation all revenues from all classes of plans, features, equipment fees and sales, roaming charges, and any other subscriber fees. Clear Talk objects to this request on the grounds that it is compound and would require a compilation. Notwithstanding the foregoing objections, Clear Talk will provide information that is responsive to this request. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 2 Please state Clear Talk's total debt-to-equity ratio at June 30, 2003 and state the dollar amounts supporting such ratio. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. Please describe each and every loan facility, funding instrument, promissory note, or other form of short-term or long-term indebtedness incurred by Clear Talk, including in such description, where applicable, the type of instrument, the dollar amount, interest rate and due dates, amount of origination fees, terms governing repayment, collateral subject to securing agreements, the value of the secured collateral, record of missed payments, penalties for missed payments, notice of default, and any restrictive covenants that either cap the company s indebtedness or require the lender approval prior to assuming more debt. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. Clear Talk objects to this request on the grounds that it is burdensome and oppressive, and would require a compilation. Clear Talk objects to this request as improper because it seeks a legal opinion and/or attorney work product. Please state Clear Talk's debt-service ratio, meaning the ratio of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to all principal payments on long-term debt, plus pro forma cash interest expense for the next succeeding four fiscal quarters. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. Clear Talk objects to this request on the grounds that it is burdensome and oppressive, would require a compilation and would require speculation. Please describe all debt securities issued by Clear Talk, including amounts, maturities and interest rate or original purchase discount. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 3 evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. Clear Talk objects to this request as improper because it seeks a legal opinion and/or attorney work product. 10.Please state whether the loan covenants or stock restriction of any affiliates in any way restrict or limit Clear Talk's ability to raise capital, whether through debt or equity, explaining the nature of such restriction or limitation. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. Clear Talk objects to this request on the grounds that it is burdensome and oppressive, would require a compilation and would require speculation. Clear Talk objects to this request as improper because it seeks a legal contention or opinion and/or attorney work product. 11.Please provide copies of all reports or analysis issued by rating agencies on Clear Talk, including, but not limited to, Standard & Poors Rating Services for the prior three years. Clear Talk is not aware of the existence of such reports, however, to the extent such reports exist, then such reports are equally available to the requesting party. Clear Talk therefore objects to this request on the grounds that it seeks information equally available to the party requesting such information, and is apparently intended to vex annoy or harass the responding party. 12.Please describe Clear Talk's affiliate status, i.e., explain Clear Talk' relationship to any up-stream or down-stream affiliates, including any parent holding company, or cross-affiliate. Clear Talk objects to this request insofar as it seeks information that is not relevant to this proceeding. Notwithstanding the forgegoing objection, Clear Talk will provide responsive information regarding its Idaho markets. 13.Please describe any pending litigation, arbitration or other disputes that could potentially affect Clear Talk's ability to provide the supported services in the requested Designated Areas of the state of Idaho. Clear Talk will provide responsive information regarding this Request. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 4 14.Please provide copies of Clear Talk's financial statements for the six months ended June 30, 2003 and audited fmancial statements for the fiscal years 2002, 2001, and 2000. Clear Talk objects to this request on the grounds that it is burdensome insofar as it requires a compilation and/or seeks materials that may not exist. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Notwithstanding the foregoing objections Clear Talk will produce materials responsive to this request, insofar as such materials currently exist, to parties who have executed a confidentiality/non-disclosure agreement acceptable in form to Clear Talk. 15.Please provide copies of all fmancial reports on Clear Talk's operations in Idaho for the six months ended June 30,2003 and for the fiscal years 2002. Clear Talk objects to this request on the grounds that it is duplicative of Request No. 14, and is burdensome and oppressive insofar as it requires a compilation and/or seeks materials that do not exist. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. 16.Please provide copies of internal management reports analyzing Clear Talk' fmancial and operational performance on a monthly, quarterly, or annual basis for the six months ended June 30, 2003 and for the fiscal years 2002. Clear Talk objects to this request as improper because it may seek information that is privileged, including attorney-client communications and attorney work product. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it seeks information, including financial information, which is confidential and proprietary in nature. 17.Please provide details identifying by type of equipment and location of Clear talk's budgeted capital expenditures for the state of Idaho for fiscal year 2003 and 2004. Clear Talk objects to this request to the extent it requires a compilation and requires speculation. Notwithstanding the foregoing objections, Clear Talk intends to provide information regarding its existing buildout plans to parties who have executed a confidentiality/non-disclosure agreement acceptable in form to Clear Talk. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 5 18.Please provide copies of Clear Talk's state of Idaho income tax returns for the fiscal years 2002. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Notwithstanding the foregoing objections, Clear Talk will provide materials responsive to this request. 19.Please provide copies of internal reports analyzing customer service and billing complaints for the past twenty-four months ending June 30, 2003. Clear Talk objects to this request on the grounds that it is burdensome insofar as it requires a compilation and/or seeks materials that may not exist. Clear Talk objects to this request as improper because it may seek information that is privileged, including attorney-client communications and attorney work product, and is apparently intended to vex, annoy or harass the responding party. Notwithstanding the foregoing objections Clear Talk will produce non-privileged, confidential information in response to this Request, but only to those parties who have executed a confidentiality/non-disclosure agreement acceptable in form to Clear Talk. 20.Please provide copies of internal reports analyzing customer churn for the past twenty-four months ending June 30, 2003. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. Clear Talk objects to this request on the grounds that it is burdensome insofar as it requires a compilation and/or seeks materials that may not exist. Clear Talk objects to this request as improper because it may seek information that is privileged, including attorney-client communications and attorney work product. 21.Please provide copies of internal reports or studies analyzing propagation and wireless coverage in the requested Designated Areas disclosing signal strength, areas not covered, and dead spots. Clear Talk objects to this request on the grounds that it seeks information which is not relevant and/or is not reasonably calculated to lead to the discovery of admissible evidence, and is intended to vex, annoy or harass the responding party. In particular, the Federal Communications Commission has already ruled that the issue of alleged "dead spots" is not applicable for purposes ofE.T.C. designation. Clear Talk further objects to this request on the grounds that it seeks information, including site location information which is confidential and proprietary in nature. Clear Talk objects to this request as improper because it may seek information that is privileged, including attorney-client communications and attorney work product. Clear Talk objects to this request on the grounds that it requires speculation and may require a compilation. Notwithstanding the CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 6 foregoing objections, Clear Talk will produce non-privileged, confidential information in response to this Request, but only to those parties who have executed a confidentiality/non-disclosure agreement acceptable in form to Clear Talk. 22.Please provide copies of fmancial budgets or forecasts detailing or describing the use of proceeds from the USAC in the event Clear Talk's ETC application is approved for the requested Designated Areas in Idaho. Clear Talk objects to this request as improper because it requires speculation and seeks materials that may not exist. Clear Talk further objects to this request to the extent it may seek information that is privileged, including attorney-client communications and attorney work product. 23.Please describe the fmancial and other controls that will be put in place to ensure that USF funds collected from the USAC are used for their intended purposes and will not be diverted to other corporate purposes. Clear Talk objects to this request on the grounds that it is intended to vex, annoy or harass the responding party, insofar as it presumes that the responding party will somehow engage in diversion ofUSF funds for improper purposes. Clear Talk objects to this request to the extent it may seek information that is equally available to the requesting party, insofar as USAC rules, regulations and statutes are publicly available. Clear Talk further objects to this request as improper because it requires speculation and seeks materials that may not exist. 24.Please provide details of Clear Talk's specific plans to extend its network in each of the requested Designated Areas. Clear Talk objects to this request to the extent it requires a compilation and requires speculation, and is duplicative of Request No. 17. Notwithstanding the foregoing objections, Clear Talk intends to provide information regarding its existing buildout plans to parties who have executed a confidentiality/non-disclosure agreement acceptable in form to Clear Talk. 25.Please provide details as to the amount of local usage that will be included in Clear talk's proposed universal service offering in the requested Designated Areas. Clear Talk objects to this request as vague and ambiguous, insofar as "local usage" may refer to airtime, geographic area, or both. Clear Talk further objects to this request on the grounds that it requires speculation. Notwithstanding the foregoing objections, Clear Talk will attempt to provide information responsive to this Request. 26.Please identify each of Clear Talk's competitors in the requested Designated Areas. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 7 Clear Talk objects to this request on the grounds that it seeks information equally available to the party requesting such information. Notwithstanding the foregoing objections, Clear Talk will provide information responsive to this Request. 27.Please provide copies of documents showing Clear Talk's estimated market share of the entire company, state of Idaho, and in the requested Designated Areas. Clear Talk objects to this request as vague and ambiguous. Clear Talk objects to this request on the grounds that it is burdensome and oppressive, would require a compilation and would require speculation. Clear Talk objects to this request as improper in form because the request is compound, conjunctive or disjunctive, contains subparts, and is not full and complete in and of itself. Clear Talk further objects to this request on the grounds that it seeks information that is equally available to the requesting party. 28.Please describe the analysis that will be undertaken when a customer requests service in an area not currently served by Clear Talk, but within the requested Designated Areas. Clear Talk objects to this request as vague and ambiguous. Notwithstanding the foregoing objection, Clear Talk will attempt to provide information responsive to this request. 29.Please identify the specific media that would be utilized to advertise the nine supported service s and the amount of advertising funds that would be expended during the first twelve months following the Commissions approval of the application. Clear Talk objects to this request on the grounds that it requires speculation and would require a compilation. Notwithstanding the foregoing objections, Clear Talk will provide information responsive to this Request. 30.Please describe specifically how approval of Clear Talk's application will increase competition and customer choice. Clear Talk objects to this request on the ground that it is rhetorical. Notwithstanding the foregoing objection, Clear Talk will provide information responsive to this request. 31.Please identify and explain any and all public interests, other than interest in increased competition, that would be furthered by granting Clear talk's ETC requests. Clear Talk objects to this request on the grounds that it requires speculation and a legal conclusion insofar as the Idaho Public Utilities Commission is authorized to CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 8 determine the public interest(s), whereas Clear Talk is not. Notwithstanding the foregoing objections, Clear Talk will provide information responsive to this request. 32.If Clear Talk is granted ETC status by the Idaho Public Utilities Commission, would the company comply with quality of service, pricing and other guidelines and requirements required by the Commission as a condition of approval of the application. Clear Talk objects to this question as intending to vex, annoy or harass Clear Talk insofar as the question presumes that Clear Talk would violate and/or fail to comply with applicable ETC rules and regulations. Clear Talk further objects to this request on the grounds that it requires speculation and presumes that the Commission might seek to impose additional, non-statutory conditions upon any approval of Clear Talk'Application. 33.Please provide details on any known instances in the requested Designated Areas where end users are currently not receiving the nine supported services contained in the FCC's defmition of universal service. Clear Talk objects to this request as vague and ambiguous. Clear Talk further objects to this request on the grounds that it may seek information equally or exclusively available to the party requesting such information, e., instances wherein the requesting party s "end users" - however defined - are not receiving the nine supported services. Notwithstanding the foregoing objections, Clear Talk will attempt to provide information responsive to this Request. 34.Does Clear Talk have interconnection agreements with the incumbent LECs serving the Designated Areas? Please furnish copies of any such agreement. Clear Talk objects to this request on the grounds that it seeks information equally available to the party requesting such information. Notwithstanding the foregoing objection, Clear Talk will provide reference information regarding the interconnection agreements on file with the Public Utilities Commission and therefore publicly available. 35.Does Clear Talk have reciprocal compensation agreements with the incumbent LECs serving the Designated Areas? Please furnish copies of any such agreements. State the amounts paid and received by Clear talk pursuant to such agreements, by month, for 2002 and the first half of 2003. Clear Talk objects to this request on the grounds that it seeks information equally available to the party requesting such information, including interconnection agreements that are on file with the Public Utilities Commission and therefore publicly available (see response to Request No. 34). Clear Talk further objects to this request on the grounds CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY- that it is burdensome and oppressive, may seek materials which do not exist and/or would require a compilation. 36.If Clear Talk does not have interconnection agreements or reciprocal compensation agreements with the incumbent LECs in the Designated Areas please explain how the incumbent LECs are compensated for the termination of calls originated by Clear Talk customers to the incumbent LECs customers. Clear Talk objects to this request on the grounds that it is vague and ambiguous seeks a legal contention or conclusion, requires speculation and may seek materials that do not exist. 37.Please explain why requiring equal access to interexchange carriers (LXCs) for Clear Talk customers as a condition of ETC status would not (1) promote competition and (2) service the public interest. Clear Talk objects to this request as vague and ambiguous, and improper because it seeks a legal contention or conclusion. Clear Talk further objects to this request on the grounds that it requires speculation and is moot in light of the FCC's recent ruling on or about July 15 2003 wherein wireless carriers are not required to provide equal access as a condition of obtaining ETC designation. 38. 39. 40. Does Clear Talk permit its customers to use dial around calling (10-xxx) to reach IXCs? If so, what charges do Clear Talk customers incur for dial around? Clear Talk will provide information responsive to this request. Does Clear Talk intend to meet its ETC obligations, in whole or in part, by reselling or leasing incumbent LEC loops or unbundled network elements? If so, please describe Clear Talk's plans. Clear Talk will provide information responsive to this Request. If Clear Talk is granted ETC status in the Designated Areas, should subsequent applicants also be granted ETC status upon substantially the same showing and on similar terms and conditions? Please explain your answer in detail. Clear Talk objects to this request as vague and ambiguous and requiring speculation, and as being overbroad and well beyond the scope of this proceeding. CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 10 41.Is there any limit to the number of additional ETC designations that should be granted in the Designated Areas? Please explain your answer in detail. Clear Talk objects to this request as vague and ambiguous and requiring speculation, and as being overbroad and well beyond the scope of this proceeding. 42.If Clear Talk's Application is granted and the ILECs in one or more of the Designated Areas thereafter decide to relinquish their ETC designations in the highest cost portions of their service areas, is Clear Talk prepared to, and willing to, provide carrier of last resort service to all customers in any such relinquished area without exceptions or preconditions. If your answer is anything other than "yes , please explain. Clear Talk objects to this request on the grounds that it requires speculation. Insofar as Clear Talk is not aware of any showing of a relinquishment - actual or threatened - by an ILEC(s) in any of the Designated Areas any response to this request would be purely speculative. RESPECTFULLY SUBMITTED, this 22ND day of August 2003. Richardson & O'Leary P .L.L.C. Molly O'Leary Attorneys for IA T Communications, Inc., dba Clear Talk CLEAR TALK'S OBJECTIONS TO ITA'S FIRST SET OF DISCOVERY - 11 CERTIFICATE OF SERVICE I HEREBY CERTIFY that I have, this 22ND day of August 2003 served the foregoing CLEAR TALK'S OBJECTIONS TO IDAHO TELEPHONE ASSOCIATION'S FIRST SET OF DISCOVERY REQUESTS as indicated below: John Hammond, Deputy AG Idaho Public Utilities Commission 472 W. Washington Street Boise, Idaho 83720-0074 (208) 334-3762 (Fax) ihammon~puc. state.id. (v)U.S. Mail, Postage Prepaid ( )Hand Delivered ( )Overnight Mail ( )Facsimile Electronic Mail Commission Staff Dean J. Miller McDevitt & Miller LLP O. Box 2564 Boise, Idaho 83701 ioe~mcdevitt -miller. com (208) 336-6912 (Fax) ( fu.s. Mail, Postage Prepaid ( ) Hand Delived ( ) Overnight Mail ( ) Facsimile (.;) Electronic Mail Counsel for Nextel Partners Philip R. Schenkenberg Briggs and Morgan, P. 2200 First National Bank Building St. Paul, Minnesota 55101 pschenkenber~~bri~~s. com ( /j' U.S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile vi Electronic Mail Counsel for Nextel Partners Conley E. Ward, Jr. GIVENS PURSLEY, LLP O. Box 2720 Boise, Idaho 83701-2720 (208) 388-1300 (Fax) cew(g)gi venspursley. com (v) U.S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile Electronic Mail Counsel for Idaho Telephone Association CERTIFICATE OF SERVICE IA T Communications, Inc. dba Clear Talk Clay Sturgis, Senior Manager MOSS ADAMS LLP 601 Riverside, Suite 1800 Spokane, W A 99201-0063 clays~mossadams.com vi u.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile (/) Electronic Mail Counsel for Idaho Telephone Association Morgan W. Richards, Esq. Moffatt, Thomas, Barrett, Rock & Fields 101 S. Capitol Blvd, 10th Floor P. O. Box 829 Boise, Idaho 83701-0829 (208) 385-5384 (Fax) mwr~moffatt.com (1 u.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile ( v) Electronic Mail Counsel for Citizens Telecommunications Company of Idaho Lance A. Tade, Manager (vi S. Mail, Postage Prepaid State Government Affairs ( ) Hand Delivered Citizens Telecommunications Company of Idaho ( ) Overnight Mail 4 Triad Center, Suite 200 ( ) Facsimile Salt lake City, Utah 84180 ltade~czn.com ( v1Electronic Mail Counsel for Citizens Telecommunications Company of Idaho Mary S. Hobson Stoel Rives LLP 101 S. Capitol Blvd, Suite 1900 Boise, Idaho 83702-5958 (208) 389-9040 (Fax) mshobson~stoel.com (v) U.S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile ( ~ElectrOniC Mail Counsel for Qwest Corporation CERTIFICATE OF SERVICE IA T Communications, Inc. dba Clear Talk Robert M. Nielsen, Esq. O. Box 706 Rupert, Idaho 83350 (208) 436-0551 (Fax) (v)u.s. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnight Mail ( ) Facsimile Counsel for Project Mutual Telephone Cooperative Association, Inc. Charles H. Creeson, Jr. President & General Manager Project Mutual Telephone Cooperative Association, Inc. O. Box 366 Rupert, Idaho 83350 ~S. Mail, Postage Prepaid ( ) Hand Delivered ( )Overnight Mail ( )Facsimile CERTIFICATE OF SERVICE IA T Communications, Inc. dba Clear Talk