4. Financial Qualifications
To be granted a CPCN, an applicant for authority to provide limited facilities-based and resold local exchange and interexchange services 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 and/or interexchange carriers (IECs) in order to provide the proposed service.3
Applicant provided audited financial statements as of November 30, 2010 and a balance sheet as of October 21, 2010 from its parent company, Localphone, LTD. Furthermore, Applicant provided an Irrevocable Statement of Financial Responsibility for Mr. Paul Cusack, Chief Executive Officer of VoxBeam Telecommunications, Inc., guaranteeing availability of a minimum of $100,000, which is irrevocable for 12 months from the date the authority is granted. In response to the Administrative Law Judge Request for Additional Information, dated March 14, 2011, Applicant also provided a brokerage statement for Mr. Cusack showing unencumbered funds in excess of $100,000 plus additional resources in excess of $25,000 to meet any deposits required by an underlying local exchange carrier. Applicant has demonstrated that it has sufficient funds to meet the financial requirements contained in D.95-12-056.
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 local exchange carriers and/or IECs is also set forth in D.95-12-056, Appendix C.
