20041101_979.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:OCTOBER 29, 2004
SUBJECT:APPLICATION OF XO COMMUNICATIONS SERVICES, INC. FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, CASE
NO. XOC-04-
On July 27, 2004 XO Communications Services, Inc. (XO or Company) filed an
Application for a Certificate of Public Convenience and Necessity to provide competitive
facilities-based and resold local exchange and interexchange telecommunications services within
the State of Idaho. In the Notice of Application and Modified Procedure issued October 6, 2004
the Commission sought comments regarding XO Communications Services Application. Order
No. 29608. No comments were received other than those submitted by Commission Staff.
THE APPLICATION
The Application states that XO Communications Services intends to offer a complete set
of telecommunications services, which includes local and long distance voice, Internet access
Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting, and Integrated voice
and data services. The proposed service area is statewide. The Application states that the
company will provide services primarily to small and medium-sized business customers, as well
as large business enterprises (e., national customers with multiple locations), governmental
entities, and institutional end users.
According to the Application XO Communications Services, the Applicant, and
Idaho Inc. are both wholly owned, direct subsidiaries of XO Communications, Inc. XO Idaho is
currently authorized to provide competitive local exchange and interchange telecommunications
DECISION MEMORANDUM
in Case No. GEN-99-, Order No. 28134. XO Communications Services states that the
purpose of the Application is to complete an internal corporate reorganization whereby, upon the
Commission s grant of authority requested by the Application XO Idaho will transfer its
intrastate telecommunications assets and customers to XO Communications Services through a
merger between the two subsidiaries. After the merger, XO Idaho will cease to exist and
Communications Services will assume all ofXO Idaho s current operations and customers.
ST AFF COMMENTS
In its evaluation of the Company s Application Staff determined that
Communications Services is incorporated in the State of Delaware, with Company headquarters
in Reston, Virginia. The Company obtained a Certificate of Authority to transact business as a
foreign corporation from the Idaho Secretary of State on August 13 2004. XO has provided the
appropriate contact information for its registered agent for service of process within Idaho.
With this Application, The Company proposes to provide Idaho business consumer with
a complete set of facilities-based and resold telecommunications services, including local and
long distance and integrated voice and data services. Following the merger, and with the
Commission s approval, XO Idaho will assign to XO Communications Services, Inc., its existing
interconnection agreements with Qwest Corporation, Case No. QWE- T -02-, and with Verizon
Northwest, Inc., Case No. VZN-04-03.
Based on the Application, XO Communications, Inc., the parent company, through its
subsidiaries, currently offers facilities-based broadband services within and between more than
70 markets, intrastate interexchange services virtually nationwide, and competitive local
exchange services in 47 states. The Company further states that it is one of the nation s largest
holders of fixed wireless spectrum, covering 95% of the population of the 30 largest cities in the
United States. The parent company is authorized by the FCC to provide interstate and
international telecommunications services.
Staff has reviewed the Application submitted by XO Communications Services, Inc., and
believes the Company understands and agrees to comply with the Commission rules and
requirements. Based upon its review, Staff recommends that the Company s filing fulfills the
requirements of the Commission s Rules and Procedural Order No. 26665. Staff believes the
Company possesses the requisite financial, managerial, and technical qualifications necessary to
DECISION MEMORANDUM
operate as a provider of telecommunications services. Therefore, Staff recommends approval of
the Company s Application for a Certificate of Public Convenience and Necessity. Additionally,
since the Company indicates that the merger and transfer from XO Idaho to XO Communications
Services Inc. should be complete by January of 2005, Staff recommends that the Certificate of
Public Convenience and Necessity currently held by XO Idaho terminate of expire on January
, 2005, as that company will no longer exist.
COMMISSION DECISION
Does the Commission wish to approve XO Communications Services, Inc.' s Application
for a Certificate of Public Convenience and Necessity? If so, does the Commission wish to order
that the Certificate of Public Convenience and Necessity currently held by XO Idaho will
terminate or expire on January 31 , 2005?
Donovan E. Walker
DECISION MEMORANDUM