8. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Seaneen M. Wilson is the assigned ALJ in this proceeding.

Findings of Fact

1. NBVS filed A.10-04-003 on April 5, 2011, seeking authorization of a CPCN to provide limited facilities-based and resold local exchange service in the service territories of AT&T, Verizon, SureWest, and Citizens.

2. Notice of A.10-04-003 appeared on the Daily Calendar on April 7, 2010.

3. CPSD filed a protest to the application on May 7, 2010, to which NBVS filed a reply on June 1, 2010.

4. The Scoping Memo was issued on August 4, 2010, which in part preliminarily determined that evidentiary hearings were necessary, but that a second PHC would be held after briefs were filed in order to assess whether evidentiary hearings would still be necessary.

5. On November 18, 2011, CPSD and NBVS requested a continuance of the second PHC in order to discuss possible settlement, which the assigned ALJ granted via e-mail on the same day.

6. NBVS filed an Amended Application on January 25, 2011.

7. CPSD and NBVS filed a Motion for adoption of the Settlement Agreement on February 11, 2011.

8. NobelBiz, LLC is an affiliate of NBVS.

9. NobelBiz, LLC and NBVS share the same management team.

10. Except as noted in its Amended Application, no one associated with or employed by NBVS as an affiliate, officer, director, partner, or owner of more than 10% of NBVS was previously associated with a telecommunications carrier that: 1) filed for bankruptcy; 2) was sanctioned by the Federal Communications Commission or any state regulatory agency for failure to comply with any regulatory statute, rule, or order; or 3) that has been found either civilly or criminally liable by a court of appropriate jurisdiction for a violation of § 17000, et seq. of the California Business and Professions Code, or for any actions which involved misrepresentations to consumers, nor is currently under investigation for similar violations.

11. NBVS' management possesses sufficient experience, knowledge, and technical expertise to provide local exchange services to the public.

12. The proposed Settlement Agreement by and between CPSD and NBVS resolves all issues raised by CPSD's protest in this proceeding.

13. NBVS has a minimum of $100,000 of cash or cash equivalent that is reasonably liquid and readily available to meet its start-up expenses.

14. NBVS has sufficient additional cash or cash equivalent to cover deposits that may be required by other telecommunications carriers in order to provide the proposed service.

15. Except for the deficiencies identified in Attachment A to this decision, NBVS' draft tariffs comply with the Commission's requirements.

16. NBVS provided a map of the location of its proposed service territory.

17. NBVS provided an estimate of its customer base for the first and fifth year of operation.

Conclusions of Law

1. The Settlement Agreement is reasonable in light of the record as a whole, consistent with the law and in the public interest.

2. NBVS should be granted a CPCN to provide limited facilities-based and resold local exchange telecommunications service in the service territories of AT&T, Verizon, SureWest, and Citizens, subject to the terms and conditions set forth in the Settlement Agreement and Ordering Paragraphs herein.

3. NBVS should pay a fine of $12,000 to the General Fund of the State of California within 30 days of the date of issuance of this decision.

4. We should confirm the assigned ALJ ruling requested by CPSD and NBVS that the second PHC be continued in order for the parties to discuss possible settlement.

5. As an all-party settlement was reached to which the assigned ALJ had no questions, we should change the determination in the Scoping Memo that evidentiary hearings would be necessary to no evidentiary hearings necessary.

6. NBVS, once granted a CPCN, should be subject to all applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities.

7. Once granted a CPCN, NBVS should be subject to the applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities.

8. NBVS' initial tariff filing should correct the tariff deficiencies shown in Attachment A to this decision.

ORDER

IT IS ORDERED that:

1. The all-party Settlement Agreement between the Consumer Protection and Safety Division and NobelBiz VoIP Services, Inc. is adopted.

2. A certificate of public convenience and necessity is granted to NobelBiz VoIP Services, Inc., to provide limited facilities-based and resold local exchange telecommunications service in the service territories of Pacific Bell Telephone Company d/b/a AT&T California, Verizon California, Inc., SureWest Telephone, and Citizens Telecommunications Company of California, Inc., subject to the terms and conditions of the Settlement Agreement and set out herein.

3. NobelBiz VoIP Services, Inc. must pay to the General Fund of the State of California the sum of $12,000, within 30 days of the date of issuance of this decision. This fine must be paid by check or money order payable to the California Public Utilities Commission and mailed or delivered to the Commission's Fiscal Office at 505 Van Ness Avenue, Room 3000, San Francisco, CA 94102. Write on the face of the check or money order "for deposit to the General Fund per Decision 11-04-009."

4. The determination in the Scoping Memo and Ruling of the Assigned Commissioner that evidentiary hearings would be necessary is changed to no evidentiary hearings necessary.

5. NobelBiz VoIP Services, Inc., once granted a CPCN, should be subject to all applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities.

6. NobelBiz VoIP Services, Inc. must not offer competitive local exchange services until tariffs are filed with and authorized by this Commission, in accordance with General Order 96-B and as corrected for deficiencies set forth in Attachment A.

7. NobelBiz VoIP Services, Inc. must file in this docket, a written acceptance of the certificate granted in this proceeding within 30 days of the effective date of this order. This filing does not reopen the proceeding.

8. The corporate identification number assigned to NobelBiz VoIP Services, Inc., U-7212-C, must be included in the caption of all original filings with this Commission, and in the titles of other pleadings filed in existing cases.

9. In addition to all the requirements applicable to competitive local exchange carriers included in Attachments B, C, and D to this decision, NobelBiz VoIP Services, Inc. is subject to the Consumer Protection Rules contained in General Order 168, and all applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities.

10. NobelBiz VoIP Services, Inc. must annually pay the user fee and public purpose surcharges specified in Attachment B to this decision. Per the instructions in Exhibit E to Decision 00-10-028, the Combined California Public Utilities Commission Telephone Surcharge Transmittal Form must be submitted even if the amount due is $0. Under Public Utilities Code § 405, carriers that are in default of reporting and submitting user fees for a period of 30 days or more will be subject to penalties including suspension or revocation of their authority to operate in California. Therefore, carriers should report user fees even if the amount due is $0.

11. Prior to initiating service, NobelBiz VoIP Services, Inc. must provide the Commission's Consumer Affairs Branch with the name and address of its designated contact person(s) for purposes of resolving consumer complaints. This information must be updated if the name or telephone number changes, or at least annually.

12. NobelBiz VoIP Services, Inc. must notify the Director of the Communications Division in writing of the date that local exchange service is first rendered to the public, no later than five days after service first begins.

13. NobelBiz VoIP Services, Inc. must file an annual report with the Director of the Communications Division, in compliance with General Order 104-A, on a calendar-year basis with the information contained in Attachment B to this decision.

14. NobelBiz VoIP Services, Inc. must file an affiliate transaction report with the Director of the Communications Division, in compliance with Decision 93-02-019, on a calendar year basis using the form contained in Attachment C.

15. NobelBiz VoIP Services, Inc. must file a tariff within 12 months of the effective date of this order, or its certificate of public convenience and necessity will be cancelled.

16. Application 10-04-003 is closed.

This order is effective today.

Dated April 14, 2011, at San Francisco, California.

ATTACHMENT A

List of deficiencies in the draft tariff submitted by Nobelbiz VoIP Services, Inc., in A.10-04-003 to be corrected in its initial tariff compliance filing:

1. Tariff Sheet Format: The CPUC assigned utility ID number of U-7212-C must be included on each tariff sheet in the upper left header along with Company name and address. (General Order 96B, Section 8.4.1);

2. Add the procedure the customer may use to request amortization of unpaid charges that is in compliance with Decision 95-07-054, Appendix B, Rule 6.B.(2).5; and

3. Revise the Universal Lifeline Telephone Service income eligibility provisions, so that they are consistent with the requirements at

(END OF ATTACHMENT A)

ATTACHMENT B

REQUIREMENTS APPLICABLE TO COMPETITIVE LOCAL EXCHANGE CARRIERS AND INTEREXCHANGE CARRIERS

1. Applicant shall file, in this docket, a written acceptance of the certificate granted in this proceeding within 30 days of the effective date of this order.

2. Applicant is subject to the following fees and surcharges that must be regularly remitted. Per the instructions in Appendix E to Decision (D.) 00-10-028, the Combined California PUC Telephone Surcharge Transmittal Form must be submitted even if the amount due is $0.

a. The current 1.150% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the Universal Lifeline Telephone Service Trust Administrative Committee Fund (Pub. Util. Code § 879; Resolution T-17071, dated March 1, 2007, effective April 1, 2007);

b. The current 0.200% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Relay Service and Communications Devices Fund (Pub. Util. Code § 2881; D.98-12-073 and Resolution T-17127, dated December 20, 2007, effective January 1, 2008);

c. The user fee provided in Pub. Util. Code §§ 431-435, which is either 0.180% of gross intrastate revenue (Resolution M-4819), dated June 7, 2007, effective July 1, 2007 or $100, whichever is greater (per D.10-09-017);

d. The current 0.00% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-A (Pub. Util. Code § 739.3; D.96-10-066, pp. 3-4, App. B, Rule 1.C; Resolution T-17128, dated December 20, 2007, effective January 1, 2008); Resolution T-17299, dated November 19, 2010, effective December 1, 2010;

e. The current 0.300% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-B (D.96-10-066, p. 191, App. B, Rule 6.F.; D.07-12-054); Resolution T-17215, dated October 15, 2009 effective December 1, 2009;

f. The current 0.000% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Advanced Services Fund (D.07-12-054); and

g. The current 0.079% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Teleconnect Fund (D.96-10-066, p. 88, App. B, Rule 8.G, Resolution T-17142, dated April 24, 2008, effective June 1, 2008).

Note: These fees change periodically. In compliance with Resolution T-16901, December 2, 2004, Applicant should check the joint tariff for surcharges and fees filed by Pacific Bell Telephone Company (dba AT&T California) and apply the current surcharge and fee amounts in that joint tariff on end-user charges until further revised.

3. Applicant is a competitive local exchange carrier (CLEC). The effectiveness of its future tariffs is subject to the requirements of General Order 96-B and the Telecommunications Industry Rules (D.07-09-019).

4. Applicant is a nondominant interexchange carrier (NDIEC). The effectiveness of its future NDIEC tariffs is subject to the requirements of General Order 96-B and the Telecommunications Industry Rules (D.07-09-019).

5. Tariff filings shall reflect all fees and surcharges to which Applicant is subject, as reflected in 2 above.

6. Applicant shall file a service area map as part of its initial tariff.

7. Prior to initiating service, Applicant shall provide the Commission's Consumer Affairs Branch with the name and address of its designated contact person(s) for purposes of resolving consumer complaints. This information shall be updated if the name or telephone number changes, or at least annually.

8. Applicant shall notify the Director of the Communications Division in writing of the date that local exchange service is first rendered to the public, no later than five days after service first begins.

9. Applicant shall notify the Director of the Communications Division in writing of the date interLATA service is first rendered to the public within five days after service begins, and again within five days after intraLATA service begins.8

10. Applicant shall keep its books and records in accordance with the Generally Accepted Accounting Principles.

11. In the event Applicant's books and records are required for inspection by the Commission or its staff, it shall either produce such records at the Commission's offices or reimburse the Commission for the reasonable costs incurred in having Commission staff travel to its office.

12. Applicant shall file an annual report with the Director of the Communications Division, in compliance with GO 104-A, on a calendar-year basis with the information contained in Attachment C to this decision.

13. Applicant shall file an affiliate transaction report with the Director of the Communications Division, in compliance with D.93-02-019, on a calendar year basis using the form contained in Attachment D.

14. Applicant shall ensure that its employees comply with the provisions of Public Utilities (Pub. Util.) Code § 2889.5 regarding solicitation of customers.

15. Within 60 days of the effective date of this order, Applicant shall comply with Pub. Util. Code § 708, Employee Identification Cards, and notify the Director of the Communications Division in writing of its compliance.

16. If Applicant is 90 days or more late in filing an annual report, or in remitting the surcharges and fee listed in 2 above, the Communications Division shall prepare for Commission consideration a resolution that revokes Applicant's CPCN unless it has received written permission from the Communications Division to file or remit late.

17. Applicant is exempt from Commission Rules of Practice and Procedure 3.1(b).

18. Applicant is exempt from Pub. Util. Code §§ 816-830.

19. Applicant is exempt from the requirements of Pub. Util. Code § 851 for the transfer or encumbrance of property whenever such transfer or encumbrance serves to secure debt.

20. If Applicant decides to discontinue service or file for bankruptcy, it shall immediately notify the Communications Division's Bankruptcy Coordinator.

21. Applicant shall send a copy of this decision to concerned local permitting agencies not later than 30 days from the date of this order.

(END OF ATTACHMENT B)

ATTACHMENT C

ANNUAL REPORT

An original and a machine readable, copy using Microsoft Word or compatible format shall be filed with the California Public Utilities Commission, State Office Building, 505 Van Ness Avenue, Room 3107, San Francisco, CA 94102-3298, no later than March 31st of the year following the calendar year for which the annual report is submitted.

Failure to file this information on time may result in a penalty as provided for in §§ 2107 and 2108 of the Public Utilities Code.

Required information:

3. Name, title, address, and telephone number of the person to be contacted concerning the reported information.

4. Name and title of the officer having custody of the general books of account and the address of the office where such books are kept.

5. Type of organization (e.g., corporation, partnership, sole proprietorship, etc.).

6. Number and date of the Commission decision granting the Certificate of Public Convenience and Necessity.

8. Description of other business activities in which the utility is engaged.

9. List of all affiliated companies and their relationship to the utility. State if affiliate is a:

10. Balance sheet as of December 31st of the year for which information is submitted.

11. Income statement for California operations for the calendar year for which information is submitted.

For answers to any questions concerning this report, call (415) 703-2883.

(END OF ATTACHMENT C)

ATTACHMENT D

CALENDAR YEAR AFFILIATE TRANSACTION REPORT

1. Each utility shall list and provide the following information for each affiliated entity and regulated subsidiary that the utility had during the period covered by the annual Affiliate Transaction report.

· Form of organization (e.g., corporation, partnership, joint venture, strategic alliance, etc.);

· Brief description of business activities engaged in;

· Relationship to the utility (e.g., controlling corporation, subsidiary, regulated subsidiary, affiliate);

· Ownership of the utility (including type and percent ownership)

· Voting rights held by the utility and percent; and

· Corporate officers.

2. The utility shall prepare and submit a corporate organization chart showing any and all corporate relationships between the utility and its affiliated entities and regulated subsidiaries in #1 above. The chart should have the controlling corporation (if any) at the top of the chart; the utility and any subsidiaries and/or affiliates of the controlling corporation in the middle levels of the chart and all secondary subsidiaries and affiliates (e.g., a subsidiary that in turn is owned by another subsidiary and/or affiliate) in the lower levels. Any regulated subsidiary should be clearly noted.

3. For a utility that has individuals who are classified as "controlling corporations" of the competitive utility, the utility must only report under the requirements of #1 and #2 above any affiliated entity that either (a) is a public utility or (b) transacts any business with the utility filing the annual report excluding the provision of tariff services.

4. Each annual report must be signed by a corporate officer of the utility stating under penalty of perjury under the laws of the State of California
(CCP 2015.5) that the annual report is complete and accurate with no material omissions.

5. Any required material that a utility is unable to provide must be reasonably described and the reasons the data cannot be obtained, as well as the efforts expended to obtain the information, must be set forth in the utility's annual Affiliate Transaction Report and verified in accordance with Section I-F of Decision 93-02-019.

6. Utilities that do not have affiliated entities must file, in lieu of the annual transaction report, an annual statement to the Commission stating that the utility had no affiliated entities during the report period. This statement must be signed by a corporate officer of the utility, stating under penalty of perjury under the laws of the State of California (CCP 2015.5) that the annual report is complete and accurate with no material omissions.

(END OF ATTACHMENT D)

8 California is divided into ten Local Access and Transport Areas (LATAs), each containing numerous local telephone exchanges. InterLATA describes services, revenues and functions relating to telecommunications originating within one LATA and terminating in another LATA. IntraLATA describes services, revenues and functions relating to telecommunications originating within a single LATA.

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