3. Financial Qualifications
To be granted a certificate of public convenience and necessity (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 In Exhibit C to the application, Fiber provides a corporate guarantee from its affiliated company, Fiber Internet Center for a $100,000 twelve-month irrevocable guarantee of payment of up to $100,000 of expenses, regulatory fees, and surcharges, taxes, deposits, and any other financial requirements incurred by Fiber in its operations as a competitive local exchange carrier and interexchange carrier in California. In Exhibit D they provide a copy of a bank statement evidencing Fiber Internet Center's possession of sufficient available capital to fund the applicant. In supplemental filings, Fiber asserts that it anticipates that no Incumbent Local Exchange Carriers (ILECs) will require deposits because Fiber will not be using ILEC services that require such deposits. Fiber asserts that it "intends to use its CPCN for its authority to place its own fiber in existing conduits and rights of way," and that "ILECs do not charge deposits for such access."
Fiber has provided documentation that it possesses 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 it has fulfilled this requirement.
2 The financial requirement for Competitive Local Carrier (CLCs) is contained in Decision (D.) 95-12-056, Appendix C.
3 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying Local Exchange Carrier (LECs) and/or IECs is set forth in Decision (D.) 95-12-056, Appendix C.
