20040112_729.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:JANUARY 9, 2004
RE:IN THE MATTER OF THE APPLICATION OF VOLO COMMUNICATIONS OF
IDAHO, INc. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS
SERVICES. CASE NO. VOL-03-
On November 17, 2003 , Yolo Communications of Idaho, Inc. ("Volo" or "Company
filed an Application for a Certificate of Public Convenience and Necessity to provide facilities-based
and resold competitive local exchange and interexchange services within the State ofIdaho. In the
Notice of Application and Modified Procedure issued December 15 2003, the Commission solicited
comments regarding Yolo s Application. Order No. 29400. No comments were received other than
those submitted by Commission Staff.
THE APPLICATION
Principally located in Altamonte Springs, Florida, V 010 is a subsidiary of V 010
Communications, Inc., which is a wholly owned subsidiary of Caerus, Inc. V 010 is incorporated in
the State of Delaware. V 010 requests authority to provide competitive local exchange carrier
CLEC") services through a combination of facilities owned by it and the resale of exchange
services of other carriers in the service territories of Qwest and Verizon. According to its
Application, V 010 has completed interconnection agreement negotiations with BellSouth, Sprint, and
is currently completing negotiations with Verizon.
V 010 plans to offer both voice and data communications services to carrier and business
customers in select Idaho locations, although the Company s initial marketing efforts will be focused
on the carrier market. Prior to offering services as a certificated telecommunications provider, V 010
DECISION MEMORANDUM
stated it would submit a signed copy of an escrow account with a bonded escrow agent or a security
bond to meet customer deposit refunds in case of company default.
ST AFF COMMENTS
Staff has reviewed V 010 ' s Application and additional supporting material. Staffbelieves
it satisfies the requirements of the Commission s Rule of Procedure 111 , IDAP A 31.01.01.111 , and
Procedural Order No. 26665 issued November 7, 1996, which sets out the necessary information to
be included with an application for a certificate.
The Company provided resumes for the key individuals in the Company indicating
significant experience in the telecommunications field, in both management and technical positions.
Staff believes the Company has demonstrated sufficient expertise for the types of services they
intend to provide. The Company does not intend to require deposits.
The parent company, V 010 Communications, is a relatively new business that began
operation in March 2002. The Application included confidential unaudited financial information for
Yolo Communications for January through August 2003. As expected for a company in the early
stages of start up, this information did not indicate a strong financial position. However, the risk to
any individual basic local exchange customer would be limited to the cost of one, and possibly two
months worth of service, which Staffbe1ieves is minimal. Therefore, Staff finds that the benefits of
a bond or other financial security instrument would be outweighed by the cost of distributing the
proceeds and other administrative functions. Therefore, Staff does not recommend imposing a
financial security requirement.
V 010 specifically indicated in its Application it will comply with all Commission rules. It
has provided an illustrative tariff that demonstrates an understanding of tariffing requirements and
processes. Staff recommends that a Certificate of Public Convenience and Necessity to provide
competitive local exchange service be issued to V 010 Communications ofIdaho, Inc.
COMMISSION DECISION
Does the Commission wish to approve V 010 Communications ofIdaho' s Application for
a Certificate of Public Convenience and Necessity?
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Lisa ~rom
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DECISION MEMORANDUM