4. Financial Qualifications

Pursuant to Rule 4.B of 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.

In Exhibit D to the application and in Exhibit B to its response to the Ruling, Net Talk provided its Securities and Exchange Commission Form 10-K for fiscal year ended September 30, 2009 and a bank statement, showing that $100,000 plus an amount equal to any deposits required by service providers would be available to Net Talk. Net Talk stated that Qwest required no deposit and AT&T required a deposit of $10,000 which has already been paid. Net Talk has therefore demonstrated that it has sufficient funds to meet its start-up expenses and any deposits required by service providers, and has fulfilled this requirement.