3. Issues Raised by CPSD in its Protest
CPSD argued that A.10-04-003 was incomplete, and that NBVS had violated Rule 1.12 of the Commission's Rules of Practice and Procedure.3 In assessing whether a CPCN should be granted, the Commission reviews a number of criteria, such as whether the applicant or an affiliate have been sanctioned by a regulatory agency, as well as the fitness of the applicants management team to manage the entity applying for the CPCN. CPSD asserted that NBVS had failed to disclose multiple regulatory sanctions issued against its affiliate, NobelTel, LLC4 by the Federal Communications Commission (FCC), this Commission, and regulatory entities in other states. CPSD also stated that it had concerns regarding the fitness of NBVS' management team to manage NBVS according to California's rules and regulations. Since NBVS and NobelTel, LLC share the same management team, sanctions against and the behavior of one entity reflect on the other. CPSD recommended that the application be denied, or alternatively, that an evidentiary hearing be held to determine the NBVS management team's fitness to manage its California operations and whether NBVS should pay a fine for violating Rule 1.1. CPSD requested that, if the Commission decides to grant NBVS' application, NBVS be required to comply with the applicable Public Utilities Code Sections, supplement its application with information regarding the fitness of its management team, pay all appropriate user fees, and collect the applicable universal service surcharges.
NBVS replied that it did not intend to obscure its relationship with or deceive the Commission regarding NobelTel, LLC. NBVS stated that it did not believe the Commission should follow CPSD's recommendations, and that NBVS would provide any further information or documentation required by the Commission.
2 Rule 1.1 states "Any person who signs a pleading or brief, enters an appearance, offers testimony at a hearing, or transacts business with the Commission, by such act represents that he or she is authorized to do so and agrees to comply with the laws of this State; to maintain the respect due to the Commission, members of the Commission and its Administrative Law Judges; and never to mislead the Commission or its staff by an artifice or false statement of fact or law."
3 All statutory references are to the Commissions Rules of Practice and Procedure unless otherwise noted.
4 NobelTel LLC is a separately owned facilities-based interexchange carrier that provides long distance domestic and international telecommunications services in California and the rest of the country. NobelTel LLC holds a CPCN from the Commission as a limited facilities-based interexchange and competitive local exchange carrier. NBVS' management team is also responsible for the operations of NobelTel, LLC.
