2. Background
On March 24, 2009, DTS of CA, Inc., (DTS), a California corporation, filed an application seeking a certificate of public convenience and necessity (CPCN) to construct telecommunications facilities and to provide local exchange and interexchange telecommunications service to all the unserved areas in California as an incumbent local exchange carrier. Notice of Application 09-03-028 appeared in the Commission's Daily Calendar on April 2, 2009.
No protests to the application were filed. Responses to the application were filed by Verizon California Inc. (Verizon) and the small incumbent local exchange carriers, collectively (Small ILECs).
Verizon's response raises several issues such as specificity of service territory and the actual number of unserved households in the state given the high number of unoccupied, seasonal-, recreational-, or occasional-use homes and National Parks in the unserved territory. Verizon also states that mobile wireless service is widely available and DTS does not explain how the mere absence of an incumbent local exchange carrier deprives residents of the benefits of connection to the voice network. Verizon also points out the proposed service's requirements for power and back-up power sources at customer premises. Finally, Verizon voices concern about the possible non-DTS customer subsidization of DTS service. Verizon recommends that the Commission consider these issues when reviewing the application and suggests the Commission defer action on the application until resolving those issues.
The Small ILECs' response voices support for the concept of bringing communications services to unserved areas, calling it a positive development and one that should be encouraged by the Commission. However, the Small ILECs also urge the Commission to treat all rate regulated incumbent local exchange carriers the same with respect to their obligations as carriers and the rules to which they are required to conform. Those rules include carrier of last resort obligations, service quality, reporting and eligibility for California High Cost Fund-A support, Universal Lifeline Telecommunications Service rules, 911 emergency service, warm line service and advice letter and tariff requirements as well as rates for single party flat rate service.
By Ruling on June 26, 2009, the assigned Administrative Law Judge (ALJ) sought substantial additional financial and operational information from DTS. DTS filed its initial response on July 17, 2009. On December 4, 2009, DTS filed an update to its July 17, 2009, response. On December 8, 2009, a prehearing conference and status hearing were held. As there were no protests to the application, the hearing was a forum for the ALJ and Communications Division staff to engage in one-on-one communication with DTS staff and gather necessary additional information regarding the proposed service. On December 17, 2009, DTS filed another revised response to the June 26, 2009, ALJ Ruling. In response to the ALJ's request at the hearing, DTS filed supplemental information on January 25, 2010, regarding expected levels of state and federal universal service support.
DTS' application is unique in that it seeks incumbent local exchange carrier authority to provide limited facilities-based satellite telecommunications services to all currently unserved territories in California. In evaluating DTS' application, we apply the standards contained in Decision (D.) 95-12-0561 for a CPCN and have included additional requirements as outlined in the Attachments and set forth in the Ordering Paragraphs. The assigned Commissioner and ALJ issued a scoping memo on August 16, 2010.
1 D.95-12-056 contains the requirements for Competitive Local Exchange Carriers applying for CPCNs. D.95-12-056 requirements are applied here as an appropriate initial step in the review process.
