4. 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.3 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers and/or interexchange carriers (IECs) in order to provide the proposed service.4
Applicant provided a letter of credit from Farmer's Trust & Savings Bank, irrevocable for two years, which exceeds the minimum financial requirement set for CLECs. The letter of credit is also sufficient to cover any deposits that may be required by local exchange carriers and/or interexchange carriers. Applicant has also specified that it has set aside $40,000 for payment of any deposits required by Verizon and AT&T for interconnection.
3 The financial requirement for CLECs is contained in Decision (D.) 95-12-056, Appendix C.
4 The requirement for CLEC 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.
