HomeMy WebLinkAbout20040209_747.pdfDECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:FEBRUARY 5, 2004
RE:IN THE MATTER OF THE APPLICATION OF KMC TELECOM V, INC. FOR
A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES.
CASE NO. KMC-03-
On October 28, 2003 , KMC Telecom V, Inc. ("KMC V" 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 throughout the State ofIdaho. In the
Notice of Application and Modified Procedure issued January 12, 2004, the Commission solicited
comments regarding KMC V's Application. Order No. 29415. No comments were received other
than those submitted by Commission Staff.
THE APPLI CA TI 0 N
KMC V seeks authority to provide all forms of switched, dedicated, and interexchange
telecommunications services throughout the State ofldaho. KMC V also intends to provide its Idaho
customers with access to directory assistance, operator services, emergency 911 services, and
telephone relay services independently or through arrangements with other carriers. As such, KMC
V intends to compete with incumbent local exchange corporations in Idaho, including, but not
limited to Qwest Corporation, as well as other competitive local exchange carriers and MTSIW ATS
long distance service providers. At this time, however, the Company would not enter into
competition with a rural local exchange carrier until the Commission has found such competition to
be in the public interest as set out in Section 251(f)(1) of the Telecommunications Act of 1996.
DECISION MEMORANDUM
KMC V is planning on providing interexchange services by reselling another carrier
interexchange service. At the time of filing, however, KMC V had not entered into a resale
agreement with any interexchange service providers.
KMC V does not intend to collect end user deposits and/or advance payments from its
customers. In the event KMC V decides in the future to require deposits and/or advance payments
the Company states that it will comply with all applicable federal and state laws, rules, and
regulations, including modifying its existing tariffs.
STAFF COMMENTS
KMC V is a full-service competitive communications company offering all forms of
switched, dedicated and interexchange telecommunications services. Its parent company, KMC
Telecom Holdings, Inc., is a Delaware corporation with its principal offices located in Bedminster
New Jersey. The Company has filed copies of its Articles of Incorporation and Certificate of
Authority issued by the Idaho Secretary of State.
Staff has reviewed the information provided by KMC V in its Application and believes it
satisfies the requirements of the Commission s Rule 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 Application included a list of corporate officers and a description of their many years
of management and technical expertise with telecommunications companies. Staff finds the
Company appears to have adequate technical and managerial skills to provide the services identified
in the Application.
The Application also included unaudited and confidential KMC V financial information
that indicated a relatively strong position for a young competitive telecommunications company.
Therefore, Staff does not recommend imposing a financial security requirement.
KMC V specifically indicated in its Application it will comply with all Commission
Rules. It also provided an illustrative tariff with its Application that demonstrates an understanding
of tariff requirements and processes.
In light of the foregoing, Staff recommends that a Certificate of Public Convenience and
Necessity to provide competitive local exchange service in Idaho be issued to KMC V.
DECISION MEMORANDUM
CO MMISSI 0 N D ECISI 0 N
Does the Commission wish to approve KMC Telecom V, Inc.'s Application for a
Certificate of Public Convenience and Necessity?
M: KMCTO301 In
DECISION MEMORANDUM