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DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN JEAN JEWELL RON LAW LOU ANN WESTERFIELD DON HOWELL RANDY LOBB TERRI CARLOCK JOE CUSICK CAROLEE HALL BEV BARKER TONYA CLARK GENE FADNESS WORKING FILE FROM: JOHN R. HAMMOND DATE: JUNE 20, 2002 RE: IN THE MATTER OF THE APPLICATION OF BASICPHONE, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE SERVICES IN IDAHO. CASE NO. GNR-T-02-8. On May 2, 2002, BasicPhone, Inc. filed an Application for a Certificate of Public Convenience and Necessity to provide local residential and business dial tone on a prepaid basis. On May 16, 2002, the Commission issued a Notice of Application and Notice of Modified Procedure. Order No. 29028. In response to this Order the Commission Staff submitted written comments and was the only party to do so. BACKGROUND As stated above, in compliance with Commission Rules of Procedure, BasicPhone filed an Application for a Certificate of Public Convenience and Necessity to provide local residential and business dial tone on a prepaid basis throughout Idaho. The Company also intends to offer prepaid long distance service. If the Commission approves its Application, BasicPhone requests that it waive the requirement to establish an escrow account because it is a prepaid provider. BasicPhone states that it will operate as a non-facilities based reseller of services of incumbent telecommunications carriers. BasicPhone represents that it has no plans to build facilities in the future. BasicPhone is incorporated in the State of Texas and represents that it is in good standing under the laws of that State. BasicPhone represents that it is currently authorized to do business as a foreign corporation in the State of Idaho. STAFF RECOMMENDATION Staff has reviewed the Application and financials submitted by the Company. Staff finds that the Company's Application is in compliance with the Commission's Rules of Procedure and Commission Order No. 26665. Accordingly, Staff recommends approval of BasicPhone's Application and tariff along with a waiver of the escrow account or bond requirement. COMMISSION DECISION Does the Commission wish to approve BasicPhone's Application for a Certificate of Public Convenience and Necessity? Does the Commission wish to approve this Application subject to the posting of a bond? John R. Hammond Staff: Carolee Hall M:GNRT0208_jh