D0911010 Appendix D
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ALJ/KK2/hkr Date of Issuance 11/23/2009

Decision 09-11-010 November 20, 2009


In the Matter of the Application of Cheap2Dial Telephone, LLC for Registration as an Interexchange Carrier Telephone Corporation Pursuant to the Provisions of Public Utilities Code Section 1013.

Application 08-09-020

(Filed September 18, 2008)



This decision adopts the proposed Settlement Agreement1 (Settlement Agreement) attached hereto as Appendix D and grants a registration Certificate of Public Convenience and Necessity to Cheap2Dial Telephone, LLC to provide services in California as a non-dominant interexchange carrier. Among other things, the Settlement Agreement requires Applicant to pay a penalty of $10,000 to the General Fund and required surcharges, fees, and interest that it owed to the Commission, totaling $3,108.43,2 and to file any and all reports on a timely basis going forward. This proceeding is closed.

1. Background

On September 18, 2008, Cheap2Dial Telephone, LLC (Applicant) filed an application pursuant to Pub. Util. Code3 § 1013 and the registration process adopted in Decision (D.) 97-06-107 and related decisions for registration as an interexchange carrier and authority to do business as a switchless reseller of long-distance service in California. Applicant is qualified to use the registration process and has complied with the filing requirements for a registration application.

On October 27, 2008, the Commission's Consumer Protection and Safety Division (CPSD) filed a protest to the Application based on concerns that Applicant had (1) been unlawfully operating in California as a telephone corporation without a license for 15 months and (2) made misrepresentations to the Commission on the Commission's short form application, in violation of Rule 1.1 by failing to disclose a previous sanction by the Ohio Public Utilities Commission (PUC) for failure to file a detariffing application.

On June 2, 2009, CPSD and Applicant filed a joint motion (Motion) for adoption of the Settlement Agreement. The Motion and the Settlement Agreement provide that Applicant has provided satisfactory explanations concerning CPSD's protest and the terms of the Settlement Agreement satisfactorily address all of CPSD's concerns-and therefore, CPSD no longer has concerns regarding Applicant's fitness to provide service in California. The Motion requests the Commission's adoption of the Settlement Agreement and

issuance of a registration Certificate of Public Convenience and Necessity (CPCN) to Applicant to provide services in California as a non-dominant interexchange carrier.

Other than CPSD's protest which would be resolved once the Settlement Agreement is adopted by this decision, there has been no other opposition to the application.

1 The Settlement Agreement resolves the issues set forth in the only protest filed in this proceeding as well as other issues discovered by the parties during the course of this proceeding.

2 On May 9, 2009, Applicant paid $2,825.86 in surcharges and fees for the period of July 1, 2007 through December 31, 2008. The interest payment of $282.57 is unpaid and Applicant has agreed to pay that amount pursuant to the payment schedule described in Section II-1-1.8 of the Settlement Agreement.

3 Unless otherwise indicated, all references to Code sections in this decision refer to the California Public Utilities Code and references to Rule or Rules refer to the Commission's Rules of Practice and Procedure.

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