7. Assignment of Proceeding

John A. Bohn is the assigned Commissioner and Myra J. Prestidge is the assigned ALJ in this proceeding.

Findings of Fact

1. Broadvox is a Delaware limited liability company that has received authorization from the California Secretary of State to conduct business in California.

2. On June 4, 2009, Broadvox filed this application for a CPCN authorizing the company to provide limited facilities-based and resold telecommunications services in this state.

3. In this application, Broadvox certified under penalty of perjury that:

a) Neither Broadvox, any affiliate, officer, director, partner, nor owner or more than 10 percent of Broadvox, or any person acting in such capacity whether or not formally appointed, has been sanctioned by the Federal Communications Commission or any state or regulatory agency for failure to comply with any regulatory statute, rule or order; and

b) No affiliate, officer, director, partner, or person owning more than 10 percent of Applicant, or anyone acting in such a capacity whether or not formally appointed, held one of these positions with a telecommunications carrier that filed for bankruptcy, or has been found either criminally or civilly liable by a court of appropriate jurisdiction for a violation of Sections 17000 et seq. of the California Business and Professions Code, or for any actions which involved misrepresentations to consumers, and to the best of Applicant's knowledge, is not currently under investigation for similar violations.

4. Yesil holds a 16.96 percent ownership interest in Broadvox.

5. Broadvox's affiliates in which Yesil holds an ownership interest or management position have had significant regulatory problems and have had their certifications revoked or cancelled in a number of states.

6. NeTel, Inc., a Broadvox's affiliate for which Yesil is President, Director, Secretary, and Treasurer, filed for bankruptcy in Florida in December 1998.

7. Broadvox did not disclose the past regulatory problems of affiliates in which Yesil has an ownership interest or management role or the bankruptcy of NeTel, Inc. in this application.

8. On July 9, 2009, CPSD filed a protest to this application, on the grounds that some of the officers of Broadvox have held or currently hold officer positions with other telecommunications carriers that have been sanctioned for regulatory violations in other states.17

9. The parties have agreed to settle this case after extensive discussions and review of the record.

10. The parties filed a joint motion for Commission adoption of the Settlement Agreement on November 30, 2009.

11. Broadvox admits that its failure to disclose the NeTel, Inc.'s bankruptcy and the past regulatory problems of Broadvox's affiliates in which Yesil has an ownership interest or management role violated Rule 1.1, but claims that this violation was inadvertent.

12. The principal terms of the Settlement Agreement are set forth in the foregoing decision.

13. Broadvox and CPSD fairly reflect all affected interests in this proceeding. Broadvox represents the interests of its shareholders. CPSD represents the interests of ratepayers and the public.

14. Litigating the issues in this case would unnecessarily consume the time and valuable resources of the Commission and the parties.

Conclusions of Law

1. The Settlement Agreement fully resolves and settles all disputed issues between the parties in this proceeding.

2. The Settlement Agreement is reasonable in light of the whole record, consistent with law, consistent with prior Commission decisions, and in the public interest, and therefore meets the requirements of Rule 12.1(d).

3. The Settlement Agreement contains adequate information regarding the rights and obligations of the parties and is sufficiently clear for the Commission and the parties to understand its terms and for the parties to carry out the agreement.

4. The Settlement Agreement is in the public interest and should be approved, with the additional requirement that Broadvox disclose this decision in any subsequent applications to this Commission.

5. This decision should be effective today so that the Settlement Agreement will take effect immediately.

ORDER

IT IS ORDERED that:

1. The joint motion of Broadvox-CLEC, LLC and the Commission Consumer Protection and Safety Division for adoption of the proposed Settlement Agreement on file in this docket is granted.

2. The Settlement Agreement is approved without modification.

3. Broadvox-CLEC, LLC shall reference this decision in any subsequent application to this Commission.

4. Broadvox-CLEC, LLC shall file an amendment to this application, which contains the information required by the Settlement Agreement, within 30 days of the issuance of this decision.

5. Application 09-06-004 remains open, for further adjudication of Broadvox-CLEC, LLC's application for a certificate of public convenience and necessity authorizing the company to provide limited facilities-based and resold local exchange and interexchange services in this state.

This order is effective today.

Dated July 29, 2010, at San Francisco, California.

17 As described in CPSD's protest, these regulatory violations generally consisted of failure to file required reports, late filing of required reports, and failure to pay required fees.

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