Settlement Agreement

The Settlement Agreement addresses the issues raised by CPSD's protest. For Applicant's failure to disclose the regulatory history of the affiliated MetTel company. The Settlement Agreement requires that Applicant file an amended application with more complete disclosures and pay an $8,000 fine to the California General Fund. As required by the Settlement Agreement, Applicant filed an amended application on December 23, 2010, which revised and supplemented information relating to FCC proceedings concerning other subsidiaries of Applicant's parent company, Manhattan Telecommunications Corporation.

Applicant explained that during the nine years it has been a certified carrier in California it has not been accused of slamming or been subject to any sanction at the state or federal level, and that its nondisclosure regarding sanctions imposed on an affiliated company was inadvertent. As discussed herein, while these concerns raise questions as to Applicant's overall fitness to provide telephone services in California and commitment to comply with all of the regulatory mandates, the Settlement Agreement satisfactorily resolves those concerns.