5. Financial Qualifications

Pursuant to Rule 4.B of the Initial Rules for Local Exchange Service Competition in California adopted in Decision (D.) 95-12-056, an applicant for a CPCN for authority to provide facilities-based local exchange service must demonstrate that it has $100,000 cash or cash equivalent to meet the firm's start-up expenses. Applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by other telecommunications carriers in order to provide service in California. Applicant has provided financial documents which demonstrate that Applicant meets these requirements.