20040202_745.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:LISA NORDSTROM
DATE:JANUARY 28, 2004
RE:IN THE MATTER OF THE APPLICATION OF GRANITE
TELECOMMUNICATIONS, LLC FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE
TELECOMMUNICATIONS SERVICES. CASE NO. GNT-03-
On October 9 2003 , Granite Telecommunications, LLC ("Granite" 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 of Idaho.
Granite s Application also seeks permission to offer intrastate toll services. In the Notice of
Application and Modified Procedure issued January 2, 2004, the Commission solicited comments
regarding Granite s Application. Order No. 29409. No comments were received other than those
submitted by Commission Staff.
THE APPLICATION
If its Application were approved, Granite would provide service mainly utilizing
Unbundled Network Elements Platform (UNE-P) leased or purchased from Qwest Corporation and
Verizon. Granite does not presently have plans to build any facilities of its own in Idaho, but does
not foreclose the possibility of constructing such facilities in the future. At the time of its
Application, Granite had made a request for interconnection with Qwest Corporation, but had not
entered into any interconnection agreement or other agreement to begin telecommunications services
within the State of Idaho. Granite does not currently provide any services within Idaho.
Although the Company proposes to initially offer its services in the service areas
currently served by Qwest Corporation and Verizon, in the future Granite may compete with all
DECISION MEMORANDUM
ILECs within Idaho. The Application states that Granite has reviewed all ofthe Commission Rules
and agrees to comply with them. Finally, the Application requests Commission approval of
certification without bond or deposit.
STAFF COMMENTS
Headquartered in Quincy, Massachusetts, Granite was formed as a Limited Liability
Company under the laws ofthe State of Delaware. Staff reviewed the biographies of the Company
directing members for the purpose of establishing Granite s business and telecommunications
experience. The Company obtained a Certificate of Authority to transact business as a foreign
corporation from Idaho s Secretary of State on August 5 2003. Although the Company does not
maintain an office in Idaho, it does have a registered in-state agent. Staff reviewed Granite
unaudited financials for the period ending June 30, 2003 and believes the Company is solvent.
With this Application, Granite proposes to provide business and residential local
exchange service, operator assistance, data services, and Centrex services. The Company does not
propose to collect advance payments or deposits, so no escrow account has been established. The
example tariff submitted by Granite also includes in-state long distance services.
According to Staff, Granite has been granted authority to provide local exchange service
in several other states such as Washington and Maine. The Company states that granting its
Application for a Certificate is in the public interest because Granite s entry into the local
telecommunications services market will enhance competition in Idaho.
Based on its review of Granite s Application, Staff believes that the Company s filing has
satisfied all the requirements of the Commission s Rules and Procedural Order No. 26665.
Therefore, Staff recommends approval of Granite s Application for a Certificate of Public
Convenience and Necessity.
COMMISSION DECISION
Does the Commission wish to approve Granite Telecommunications, LLC's Application
for a Certificate of Public Convenience and Necessity?
M: GNTTO30 1 In
DECISION MEMORANDUM