20090413_2531.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: APRIL 10, 2009

SUBJECT: APPLICATION OF NET TALK.COM, INC. FOR A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY, CASE NO. NTA-T-08-01

On November 18, 2008, NET TALK.COM, INC. (“Net Talk” or “Company”) filed
an Application for a Certificate of Public Convenience and Necessity pursuant to Idaho Code §§
61-526 through 528, IDAPA 31.01.01.111 and Commission Order No. 26665 to provide
facilities-based local exchange and resold interexchange telecommunications services throughout
Idaho. On March 6, 2009, Net Talk filed a revised Application and proposed Local Exchange
Telecommunications Tariffs, in accordance with Staff’s recommendations.
THE APPLICATION
Net Talk is a Florida corporation and lists its principal place of business as North
Miami Beach, Florida. Application at 2-3. Net Talk is registered with the Idaho Secretary of
State as a foreign limited liability company and lists Incorp Services, Inc. 921 S. Orchard, Suite
G, Boise, Idaho 83705, as its Idaho registered agent for service. Id. at 3. Net Talk is a newly
formed company with a Class V switching facility data center located in North Miami Beach,
Florida. Id. at 7. Net Talk states that it will compete with other VoIP providers and local
incumbent local exchange carriers (ILECs) to provide facilities-based local exchange and resold
interexchange services. Id. at 6. The Company’s service area will encompass the “geographic
areas currently served by Qwest Communications.” Id. Net Talk intends to offer its services
immediately upon certification utilizing its own and/or leased facilities and the resale of other
carrier’s facilities and network elements.” Id.
DECISION MEMORANDUM 2
Net Talk has not negotiated an interconnection agreement with an ILEC in Idaho “but
is planning on doing so in the very near future.” Id. at 9. In its Application, Net Talk states that
it has “reviewed all of the Commission’s Rules applicable to competitive local exchange service
and interexchange service providers and agrees to comply with those rules except to the extent
the rules are explicitly waived for Net Talk or for all carriers in the same class.” Id. Net Talk
has requested a waiver of any reporting requirements “not applicable to competitive providers
like Net Talk . . .” because they “(1) are not consistent with the demands of a competitive
market; and (2) they constitute an undue burden on a competitive provider. . . .” Id. Net Talk
declared that it has reserved the right to seek any regulatory waivers it deems necessary in order
to “compete effectively in the Idaho local exchange services market.” Id. Finally, the Company
requests a waiver of the escrow account requirements because it will not require advanced
payments or deposits from its customers. Id.
STAFF RECOMMENDATION
Staff has reviewed Net Talk’s Application and other supporting documentation and
recommends that the Application be processed through Modified Procedure.
COMMISSION DECISION
Should Net Talk’s Application for a Certificate of Public Convenience and Necessity
be processed through Modified Procedure?

M:NTA-T-08-01_np