20040510_832.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN HAMMOND
DATE:MAY 6, 2004
SUBJECT:IN THE MATTER OF THE APPLICATION OF SOUTHWESTERN BELL
COMMUNICATIONS SERVICES, INC. DBA SBC LONG DISTANCE
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITYTO PROVIDE LOCAL EXCHANGE TELECOMMUNICATION
SERVICES. CASE NO. SBC-04-
On February 20, 2004, Southwestern Bell Communications Services, Inc. dba SBC
Long Distance ("SBCS") filed an Application for a Certificate of Public Convenience and
Necessity to provide resold and facilities-based local exchange and exchange access service
within the State of Idaho. SBCS is wholly-owned subsidiary of SBC Communications, Inc.
SBCS operates as a separate entity from its parent corporation, and does not maintain any
management agreement with its parent. SBCS is organized under the laws of the State of
Delaware and the Company has filed a copy of its Certificate of Authority issued by the Idaho
Secretary of State.
On March 22, 2004, the Commission issued Notice of Application and Notice of
Modified Procedure. Order No. 29449. In response to this Order, the Commission Staff
submitted comments on April 12, 2004. On April 20, 2004 the Idaho Telephone Association
ITA") submitted written comments.
IDAHO TELEPHONE ASSOCIA TI 0 N COMMENTS
ITA stated that any grant of a CPCN to SBCS should be made expressly subject to
the exemption of IT A members from the obligations of incumbent local exchange carriers under
Section 251 (c) of the 1996 Act, until such time as the requirements for lifting such exemption
contained in Section 251(f) of the 1996 Act have been met.
DECISION MEMORANDUM
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the information provided by SBCS and believes it satisfies the
requirements of Commission Rule of Procedure 111 , IDAP A 31.01.01.111 and Procedural Order
No. 26665 issued November 7 1996.
Staff stated that SBCS intended to provide basic resold and facilities-based local
exchange services to both residential and commercial customers and exchange access services to
interconnecting carriers. The Company s Application indicated it would not initially construct
facilities, but that it would provide services primarily via the unbundled network elements and
resold services. The Company also stated that it would provide service in the areas currently
served by Qwest and Verizon but that in the future might compete against all incumbent local
exchange carriers.Staff noted that SBCS is a telecommunications company that has been
granted authority to provide long-distance service nationwide, including Idaho. The Company is
seeking certification to provide competitive local exchange services in all 37 states outside of its
parent corporation s incumbent local exchange carrier service territory.
Staff also stated that the Application included financial information about the parent
company that indicated SBCS was in a strong financial position. Thus, Staff believes that the
Company has the technical, managerial and financial strength to provide the services identified
in this Application.
Staff stated that SBCS specifically indicated that it would comply with all
Commission Rules. Furthermore, it has provided an illustrative tariff with its Application that
demonstrates an understanding of the tariff requirements and processes.
In conclusion, Staff recommends that a Certificate of Public Convenience and
Necessity to provide competitive local exchange service in Idaho be granted or provided to
Southwestern Bell Communications Services, Inc. dba SBC Long Distance.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to approve SBCS' s Application for a Certificate of
Public Convenience and Necessity?
Does the Commission wish to make this approval subject to ITA members
exemption from the obligations of incumbent local exchange carriers under section 251 (c) of the
1996 federal Telecommunications Act?
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DECISION MEMORANDUM