4. Financial Qualifications
To be granted a CPCN for authority to provide resold and limited facilities-based local exchange services, an applicant 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 in order to provide the proposed service.3
Applicant provided copies of financial statements for 321 Communications, Inc., including a Profit & Loss Statement for January through May 2010, an unaudited balance sheet as of May 31, 2010, and a 15-month Certificate of Deposit. These documents demonstrate that Applicant possesses a minimum of $100,000 of unencumbered cash. Applicant also has the resources to satisfy deposits to other telecommunications carriers that may be required to provide the proposed services. Applicant does not anticipate that the amount of such deposits shall exceed $25,000.
Since 321 Communications, Inc. has provided documentation that it possesses a minimum of $100,000 that is reasonably liquid and available, it has demonstrated that it has sufficient funds to meet its start-up expenses and has fulfilled this requirement.
2 The financial requirement for CLECs is contained in Decision (D.) 95-12-056, Appendix C.
3 The requirement for CLEC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying LECs and/or interexchange carriers (IECs) is set forth in D.95-12-056, Appendix C.
