3. Financial Qualifications
To be granted a Certificate of Public Convenience and Necessity (CPCN), an applicant for authority to provide limited facilities-based and resold local exchange and interexchange services must demonstrate that it has a minimum of $100,000 cash or cash equivalent to meet the firm's start-up expenses.2 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers (LEC) and/or interexchange carriers (IECs) in order to provide the proposed service.3 Applicant provided a Letter of Guarantee that demonstrates that it has sufficient cash to satisfy this financial requirement.
2 The financial requirement for Competitive Local Carriers (CLCs) is contained in Decision (D.) 95-12-056, Appendix C. The financial requirement for non-dominant interexchange carriers (NDIECs) is contained in D.91-10-041.
3 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying LECs and/or IECs is set forth in D.95-12-056, Appendix C. For NDIECs, the requirement is found in D.93-05-010.
