20050222_1097.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:FEBRUARY 15, 2005
RE:APPLICATION OF FRANCE TELECOM CORPORATE SOLUTIONS
C. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY TO PROVIDE RESOLD LOCAL EXCHANGE AND
INTEREXCHANGE TELECOMMUNICATIONS SERVICES. CASE NO.
FRN-04-
On December 23 , 2004, France Telecom Corporate Solutions L.C. (FTCS) filed an
Application for a Certificate of Public Convenience and Necessity to provide local exchange and
toll services throughout the State of Idaho. On January 24, 2004, the Commission solicited
comments regarding FTCS' Application. See Order No. 29693. No comments were received
other than those submitted by Commission Staff.
THE APPLI CA TI 0 N
The Application requests authority to offer resold local exchange and interexchange
services to primarily business customers in the State of Idaho. FTCS does not intend to own
operate or construct any telecommunications facilities. The Company intends to enter into resale
agreements with Qwest and Verizon within the next two years. In addition, FTCS plans to
provide resold commercial mobile radio services.
FTCS is a Delaware limited liability company with a corporate office in Herndon
Virginia and is majority owned and controlled by France Telecom S., a publicly-traded
company on both the Paris Stock Exchange and the New York Stock Exchange. FTCS has a
certificate of good standing issued by the Idaho Secretary of State on September 16, 2004.
Although the Company does not maintain an office in Idaho, it does have a registered in-state
agent.
DECISION MEMORANDUM
ST AFF COMMENTS
In its evaluation of FTCS' Application, Staff determined the Company s filing
complies with the requirements of the Commission. See Procedural Order No. 26665; IDAPA
31.01.01.111. Staff believes that the Company understands and agrees to comply with the
Commission rules and requirements. Staff further believes that the Company possesses the
requisite financial, managerial, and technical qualifications necessary to operate as a provider of
telecommunications services.While the Application states that FTCS is a newly formed
Company and does not have any audited financial statements, Staff determined FTCS
demonstrated adequate financial capabilities by providing two letters of credit by the parent
company, France Telecom, SA. The Company has also provided France Telecom s financial
filings with the Securities and Exchange Commission for the years 1999-2003. Therefore, based
on its review of the Application, Commission Staff recommends approval of the Application for
a Certificate.
COMMISSION DECISION
Does the Commission wish to approve FTCS' Application for a Certificate of Public
Convenience and Necessity to provide resold local exchange and interexchange services in areas
served by Qwest and Verizon?
' .
l1f(Kira Ie Pfisterer
M:FRNTO401 kdp2
DECISION MEMORANDUM