20050110_1053.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:JANUARY 7, 2005
RE:VCI COMPANY'S PETITION FOR DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARRIER. CASE NO. VCI-04-
BACKGROUND
On September 13 2004, VCI Company (VCI) filed a Petition with the Commission
requesting designation as an Eligible Telecommunications Carrier (ETC). VCI holds a
certificate as a competitive telecommunications provider in the State of Idaho and provides
wire line services primarily through the leasing of unbundled network elements (UNEs) from
Qwest Corporation. ETC designation would allow VCI to be eligible for federal universal
service support.
In the Notice of Application and Modified Procedure issued December 3, 2004, the
Commission solicited comments regarding VCl's Petition. Order No. 29652. No comments
were received other than those submitted by Commission Staff.
THE PE TITI 0 N
VCl's Petition for Designation as an Eligible Telecommunications Carrier (Petition)
states that VCI will provide service throughout Qwest's territory to Idaho residents qualifying for
the Idaho Telecommunications Service Assistance Program (ITSAP). The Petition also provides
that VCI advertises these services throughout its service areas in Washington, Oregon, and
Wyoming and will do so in Idaho upon ETC approval.
According to the Petition, VCI has been designated as an ETC in Washington
Oregon, and Wyoming and complies with all Federal Communications Commission (FCC) rules
including federal high-cost support regulation.
DECISION MEMORANDUM
STAFF COMMENTS
Based on its review of VCl's Petition and discussions with VCI, Staff believes that
VCl's Petition complies with the state and federal requirements for ETC status and is consistent
with the public interest, convenience, and necessity. VCI provides the services provided for in
the definition of universal service set forth in 47 C.R. 54.101(a) and offers such services using
its own facilities or a combination of its own facilities and resale of another carrier s service
throughout the service area. In addition, VCI assures Staff that it will advertise the availability
of such services, as it does in Washington, Oregon, and Wyoming, and will provide these
services to Idaho residents qualifying for the ITSAP.
Staff asserts that ETC status for VCI is in the public interest, in large part because
VCI will benefit Idaho s ITSAP customers who may not be able to afford a supplemental
communications service, such as a cell phone. Moreover, this is a niche market that can benefit
from a competitive company. By granting the Petition of VCI, Idaho customers will have an
opportunity to choose a competitor in certain Qwest territories. In addition, VCI proposes to
waive the subscriber line charge (SLC) for its customers and will use the federal match to offset
the SLC, thereby reducing Idaho customers' bills.
In light of the foregoing, Staff supports VCl's Petition and recommends that the
Commission grant VCI ETC status with the caveat that VCI update, if necessary, all tariff pages
that pertain to its service area(s) and offerings currently on file in its Competitive Local
Exchange Carrier price list. In addition, the Commission should make clear that, despite
granting VCI ETC status , state USF funds are not currently available under Idaho Code 99 62-
610A-
COMMISSION DECISION
Does the Commission wish to approve VCl's Petition for designation as an ETC?
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Kira ale Pfisterer
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DECISION MEMORANDUM