This Order Instituting Rulemaking (OIR) was initiated to revise the requirements established by Decision (D.) 97-06-107 for the registration of non-dominant interexchange carriers (NDIECs), including those that provide long distance, high-speed data services, operator services and prepaid debit card services. The simplified registration process established by D.97-06-107 allows telephone corporations that do not have market power, have no history of questionable behavior, and that present noncontroversial applications, to rely on an expedited and inexpensive means of securing operating authority.
This OIR was initiated in response to issues raised in the State Controller's 2007 Audit Report that found that the Commission's collection efforts were ineffective against companies that ceased to operate or filed for bankruptcy when fines were imposed (Audit Report).2 The Audit Report recommended, among other things, that the Commission conduct more stringent background and financial viability reviews of individuals or companies registering with the Commission, and that the Commission require the posting of a performance bond for NDIEC registration.
The OIR sought comments on proposals to require a performance bond as a condition of registration, limit the duration and require renewal of the authority granted to registrants, conduct criminal background checks and expanded fiscal/civil responsibility checks of registration applicants, increase application and user fees, and rename the authority granted to registrants.
On August 19, 2009, comments were filed by the California Association of Competitive Telecommunications Companies (CALTEL), Division of Ratepayer Advocates (DRA), ExteNet Systems (ExteNet), Sempra Broadband (Sempra), Utility Consumers' Action Network (UCAN), and the Verizon Companies (Verizon).3 On September 2, 2009, reply comments were filed by CALTEL, DRA, and UCAN.4
2 John Chiang, California State Controller, "California Public Utilities Commission - Report of Review, Fines and Restitution Accounting and Collection," August 2007.
3 The Verizon Companies include Verizon Long Distance LLC (U-5732-C); MCI Communications Services, Inc., d/b/a Verizon Business Services (U-5378-C); TTI National, Inc., d/b/a Verizon Business Services (U-5403-C); Teleconnect Long Distance Services & Systems Company, d/b/a Telecom*USA (U-5152-C); Verizon Enterprise Solutions LLC (U-5658-C); and Verizon Select Services Inc. (U-5494-C).
4 On September 17, 2009, UCAN also filed a Notice of Intent to Claim Intervenor Compensation.