4. Discussion
We reject Skynet's contention that it is not required to register with the Commission as a provider of phonecards as required by § 1013. There is no question that Skynet is a provider of phonecards in California. There is no exception to the registration requirement simply because Skynet is a provider of international phonecards and its California intrastate traffic is de minimus. Sections 885-886 require that all phonecard providers register with this Commission:
885. (a) Any entity offering the services of telephone prepaid debit cards is subject to the registration requirements of Section 1013, commencing January 1, 1999, unless that entity is certificated by the commission to provide telephone service . . .
886. Entities that are required to register, but have failed to do so, or entities that are denied registration by the commission, shall not offer the services of telephone prepaid debit cards. Entities that are required to register, but have failed to do so, and entities denied registration that offer telephone prepaid debit cards shall be subject to fines or other sanctions that may be ordered by the commission.
Contrary to Skynet's assertions, these statutes are not limited to phonecard providers providing intrastate services, and there is no exclusion for the hypothetical (and unusual) case where a provider of international phonecards would block access to intrastate calling on cards used in California. Section 886 clearly provides that telecommunications providers that do not register or obtain a Certificate of Public Convenience and Necessity (CPCN) with this Commission, "shall not offer the services of telephone prepaid debit cards" in California.
There is no dispute that Skynet is a seller of phonecards in California. Thus, Skynet must be registered with this Commission if it continues to offer telecommunications services via phonecards to California consumers, regardless of whether such sales are made from Internet websites or corner stores, and its failure to do so would constitute an ongoing violation of California law.
We also reject Skynet's argument that its California intrastate revenue is so infinitesimal so as not to constitute an activity governed by § 1001. Skynet's reliance on § 1001 is misplaced. It is §§ 885, 886, and 1013 that control, and these statutes do not allow for exceptions.
Registration is a necessary first-step in the Commission's ability to combat phonecard fraud, and it is imperative that the Commission preserve the integrity of the Commission's phonecard registration process. Also, the Commission has jurisdiction to adjudicate the appropriateness of charges on a California consumer's bill, even if the underlying services are interstate or international in character.3 Accordingly, we deny Skynet's motions to withdraw this application because Skynet is currently marketing phonecards within California, and §§ 885, 886, and 1013 require that providers of phonecards be registered with the Commission.
Notwithstanding that Skynet initially provided CPSD with incorrect information, we decline to adopt CPSD's recommendation that a fine be imposed on Skynet for an alleged Rule 1.1 violation. We believe that Skynet made an honest mistake and promptly amended its pleadings as soon as it became aware that intrastate revenue was, in fact, involved in this matter, (although the presence or absence of intrastate revenue is not a determining factor for the § 1013 registration requirement to apply).
3 See D.06-03-013 (Consumer Protection Initiative), Conclusion of Law 16. Similarly, the Commission has jurisdiction under Pub. Util. Code § 2890 to adjudicate the appropriateness of charges on a California consumer's bill, even if the underlying services are interstate or international in character. The administration of intercarrier compensation contracts under 47 USC 251-52 also involves the Commission in the adjudication of issues relating to interstate or international traffic. Nothing in the certification or registration statutes, Pub. Util. Code §§ 1000 and 1013, or in the decisions implementing them, limits their reach to intrastate carriers only.
