20100927_3097.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: SEPTEMBER 24, 2010

SUBJECT: APPLICATION OF AIRESPRING, INC. FOR A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY, CASE NO. ASI-T-10-01

On July 1, 2010, Airespring, Inc. (“Airespring” or “Company”) filed an Application
for a Certificate of Public Convenience and Necessity (“CPCN”), pursuant to Idaho Code §§ 61-
526 through -5281 and IDAPA 31.01.01.111 (Rules 111 and 112), to provide local exchange
telecommunications services. Application at 1.
THE APPLICATION
Airespring is a Delaware corporation and lists its principal place of business as Van
Nuys, California. Id. at 1-2. Airespring is registered with the Idaho Secretary of State as a
foreign corporation and lists National Registered Agents, 1423 Tyrell Lane, Boise, Idaho 83706,
as its Idaho registered agent for service. Id. at 2, Exh. 2.
Airespring states in its Application that it “initially proposes to provide resold local
exchange services.” Id. at 4. The Company “has no current plan to install facilities in Idaho but
may do so in the future . . . .” Id. Airespring seeks the authority and intends to provide all forms
of switched and non-switched intrastate local exchange telecommunications services. Id. at 4-5.
Airespring’s proposed Idaho service territory will include all areas of Idaho currently being
served by existing ILECs. Id. at 5. The Company will not offer its services in areas already
being served by carriers that are eligible for small or rural carrier exemption under Section 251
of the federal Telecommunications Act of 1996 (“Federal Act”). Id.
1 Pursuant to the Idaho Telecommunications Act of 1988, specifically Idaho Code § 62-604(1)(a), Airespring is
exempt from Title 61 regulation.
DECISION MEMORANDUM 2
Airespring attached a copy of its illustrative tariff to its Application. See Application,
Exhibit 5. The Company has yet to initiate negotiations with ILECs in Idaho. Id. at 7.
Airespring states that it has “reviewed the laws and regulations of this Commission’s governing
local exchange telecommunications services and will provide service in accordance with all
laws, rules and regulations to the extent they are not preempted by the Federal Act.” Id.
Airespring has not filed an escrow account because it will not require its customers to submit
advance payments or deposits in exchange for service. Id.
STAFF ANALYSIS AND RECOMMENDATION
Staff reviewed Airespring’s Application and determined that the Company has
complied with the requirements of Procedural Order No. 26665 and IDAPA 31.01.01.111
(Commission Procedural Rule 111). Staff believes that Airespring possesses the requisite
financial, managerial, and technical qualifications necessary to operate as a telecommunications
provider within the State of Idaho.
After its initial review of the Application, Staff contacted an Airespring consultant
regarding potential revisions to the Company’s Application. On July 23, 2010, the Company
forwarded the revisions to Staff. Airespring states that it has reviewed the laws and regulations
governing local exchange telecommunications services and will provide service in accordance
with Idaho law and the rules and regulations of the Commission to the extent they are not
preempted by the Federal Act.
Staff recommended that Airespring be granted a CPCN subject to the following
conditions: (1) compliance with the Number Pool Administrator and Order No. 30425 mandating
number resource utilization forecast (NRUF) reporting; (2) contribution to the Idaho Universal
Service Fund, Idaho Telecommunications Relay System (TRS), Idaho Telephone Assistance
Program (ITSAP) and any future reporting requirements deemed appropriate for competitive
telecommunication providers; (3) filing a final and complete price list with the Commission
containing all of its rates, terms and conditions; and (4) an agreement from the Company to
relinquish its Certificate and any telephone numbers if, within one year of the issuance of a
CPCN, the Company is not offering local exchange telecommunications services in Idaho. See
Staff Comments at 2-3.

DECISION MEMORANDUM 3
COMMISSION DECISION
Does the Commission wish to approve Airespring Inc.’s Application for a Certificate
of Public Convenience and Necessity to provide local exchange telecommunications services
within the State of Idaho and subject to the aforementioned conditions?

M:ASI-T-10-01_np2