4. Financial Qualifications

Pursuant to Rule 4.B of Decision (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.

CBC has been awarded grants totaling $100,443,505 through state and federal grant programs. In Exhibit 5 to the application, CBC provides financial forecasts for years 1 through 8, in Exhibit 6 they provide a copy of a current bank statement, and in Exhibit 7 they provide a projection of customer connections for years 1 through 5. In those documents, CBC has provided documentation that it possesses in excess of the required minimum of $100,000 that is reasonably liquid and available, it has demonstrated that it has sufficient funds to meet its start-up expenses and has fulfilled this requirement.