20021003_285.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LYNN ANDERSON
LOU ANN WESTERFIELD
DON HOWELL
RANDY LOBB
JOE CUSICK
WAYNE HART
TONY A CLARK
BEVERLY BARKER
GENE FADNESS
WORKING FILE
LISA NORDSTROM
OCTOBER 1, 2002
IN THE MATTER OF THE APPLICATION OF BIG SKY TELECOM, INC. FOR
A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
CASE NO. GNR-02-14.
On August 15, 2002, Big Sky Telecom, Inc. ("Big Sky ) filed an Application for a
Certificate of Public Convenience and Necessity to provide facilities-based and resold local
exchange service within the State ofIdaho. Headquartered in Emmett, Idaho, Big Sky is an Internet
Service Provider (ISP) that has served Gem County since 1997. Big Sky currently offers high-speed
wireless DSL services to over 100 customers and small businesses in Gem, Payette, Canyon and Ada
Counties where no other cable or Internet services exist. In the Notice of Application and Modified
Procedure issued August 30, 2002, the Commission solicited comments regarding Big Sky
Application. Order No. 29105. No comments were received other than those submitted by
Commission Staff.
THE APPLICATION
According to its Application, Big Sky intends to provide traditional wireline DSL
services to Emmett residential and business customers. Big Sky also hopes to provide local
DECISION MEMORANDUM
exchange service to the community of Pearl, which does not currently have access to telephone
service. To achieve these ends , Big Sky intends to use a combination of fixed wireless services and
wireline services purchased from Qwest at wholesale prices. Qwest is the primary local exchange
carrier (LEC) in Gem County with Citizens Telecommunications Company (dba Frontier
Communications) serving the Sweet and Ola areas. In the future, Big Sky plans to provide combined
Internet, data and voice services to Emmett and Gem County businesses and residences.
STAFF COMMENTS
Staffhas reviewed the information provided by Big Sky in its Application and believes it
satisfies the requirements of the Commission s Rule of Procedure 111 (IDAPA 31.01.01.111) and
Procedural Order No. 26665 , which set out the necessary information to be included with an
application for a certificate.
If their Application is approved, Big Sky intends to provide traditional wireline DSL
services to Emmett residential and business customers. The Application also indicated Big Sky
would be providing basic local exchange services as an adjunct to their wireless DSL services
primarily in remote areas that currently do not have basic local exchange service. Big Sky s initial
target service area is Pearl, Idaho, which currently has limited telephone service due to the costs of
extending wireline facilities to this location. The Commission Staff, Qwest and other wireline
companies have spent many hours trying to find an economical way to provide service to this area
with no success to date. Big Sky s wireless solution may be a means to achieve that goal.
The Company s Application indicated that it is technically simple to add basic local
exchange service for the small number of customers it anticipates serving and would require only a
minimal incremental investment. Staff believes the Company has adequate technical skills to
provide the services identified in the Application. While the financial capabilities of such a new
company are unknown, the requirements in this case appear to be minimal. Therefore, Staff found
that the benefits of a bond or other financial security instrument would outweigh the cost of
distributing the proceeds and other administrative functions. Consequently, Staff did not recommend
imposing a financial security requirement.
Big Sky specifically indicated in its Application it will comply with all Commission rules.
The Company also provided an illustrative tariff that demonstrates an understanding of tariff
requirements and processes. In sum, Staff recommended that a Certificate of Public Convenience
DECISION MEMORANDUM
and Necessity to provide competitive local exchange service in Idaho be provided to Big Sky
Telecom, Inc.
COMMISSION DECISION
Does the Commission wish to approve Big Sky s Application for a Certificate of Public
Convenience and Necessity?
/J
II ~J~
Lisa Nordstr
M: GNRTO214 In
DECISION MEMORANDUM