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 B to the application and in Attachment 1 to its response to the Ruling, Appia provided financial statements and bank statements, showing that it has $100,000 to meet start-up expenses. Appia stated that, given its established relationships with several service providers, it does not anticipate being required to provide deposits. Nonetheless, Appia has demonstrated that it has sufficient funds available in case deposits are required by service providers, in addition to funds needed to meet start-up expenses.