9. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Myra J. Prestidge is the assigned ALJ in this proceeding.

Findings of Fact

1. On October 18, 2007, in Resolution ALJ 176-3201, we preliminarily categorized this proceeding as ratesetting and preliminarily determined that a hearing is not necessary.

2. BRW is a Delaware corporation currently operating in California.

3. BRW filed this application for registration as a telecommunications provider on October 3, 2007.

4. BRW certified in this application that the company has never been sanctioned by the FCC or a state regulatory agency for failure to comply with any regulatory statute, rule, or order.

5. On November 9, 2007, CPSD filed a protest which alleged that: (a) BRW has been unlawfully operating in this state without a CPCN since September 23, 2004, when this Commission revoked BRW's CPCN pursuant to Resolution T-16875, and (b) BRW attempted to mislead the Commission in this application in violation of Rule 1.1 by failing to disclose the previous revocation of its CPCN and a previous settlement of rule violations between BRW and the Florida Public Service Commission.

6. This Commission previously granted BRW a CPCN authorizing the provision of resold interexchange services in this state pursuant to D.01-01-058.

7. On September 23, 2004, in Resolution T-16875, this Commission revoked BRW's CPCN, based on the company's noncompliance with regulatory requirements.

8. In 2003, BRW entered into a settlement with the Florida Public Service Commission, which required BRW to pay a penalty of $7,500 to the Florida General Revenue Fund and to take other corrective actions, based on alleged rule violations.

9. BRW admits that it violated Rule 1.1 by its failure to disclose the prior revocation of its CPCN and its settlement with the Florida Public Service Commission, but claims that this violation was inadvertent.

10. BRW claims that it was unaware of this Commission's revocation of its CPCN, until one of BRW's vendors advised of the revocation in 2007.

11. BRW claims that it was unaware that it needed to disclose its settlement with the Florida Public Service Commission in this application.

12. BRW admits that it has continued to operate unlawfully in this state since this Commission's revocation of the company's CPCN in Resolution T-16875.

13. BRW admits that it operated unlawfully in this state from January 1, 2000 to January 31, 2001, before acquiring the CPCN that was later revoked by this Commission in Resolution T-16875.

14. BRW admits that it has never paid required fees and surcharges or filed required reports with the Commission at any time during its approximately eight years of operations in this state.

15. BRW claims that it believed that the California State Board of Equalization's emergency user's tax was the only tax that the company needed to pay.

16. BRW currently owes outstanding fees and surcharges for the period from January 1, 2000 through December 31, 2007, plus simple interest accrued at the rate of 10% per year, in the amount of $41,264.80.

17. BRW admits that it also currently owes the Commission fees and surcharges for 2008.

18. The Settlement Agreement remedies the violations committed by requiring BRW to do the following: (a) file a new application for registration that discloses this Commission's previous revocation of BRW's CPCN and BRW's settlement with the Florida Public Service Commission; (b) pay a fine of $20,000 to the State General Fund in installment payments, as specified in the Settlement Agreement; (c) pay fees and surcharges owed to this Commission for 2008 by no later than August 10, 2008; (d) pay back fees and surcharges owed to the Commission for 2000-2007 in the amount of $41,264.80, which includes simple interest calculated at 10% per year, in installment payments as specified in the Settlement Agreement, plus additional interest accrued on the unpaid balance at the rate of 10% per year calculated as compound interest; (e) file required reports for 2008 and timely file all required reports with the Commission in the future; (f) provide CPSD with an electronic spreadsheet which shows all payments made and payment dates every three months, until all balances recited in the Settlement Agreement are paid in full; and (g) provide CPSD with a copy of BRW's bank statements upon request.

19. CPSD has proposed to withdraw its protest within five days of the effective date of this order.

20. Upon the approval of the Settlement Agreement, CPSD no longer objects to BRW's application for registration, so long as BRW remains in full compliance with the Settlement Agreement.

21. BRW has already complied with the provision of the Settlement Agreement that required payment of fees and surcharges owed to the Commission for 2008 to date.

22. CPSD has agreed that, upon the effective date of this order, CPSD will take no further enforcement action against BRW based on the violations stated in the Settlement Agreement, unless BRW violates the Settlement Agreement or this order.

23. The fine of $20,000 imposed on BRW pursuant to the Settlement Agreement is reasonable, based on the number, duration, and seriousness of BRW's violations, as well as the opportunity for BRW to make installment payments and to avoid interest on the fine by making timely payments.

24. BRW is subject to a fine for its violations, including noncompliance with Rule 1.1, even if the violations were inadvertent, as claimed by BRW.

25. The Settlement Agreement is reasonable in light of the whole record, because it saves the Commission the expense, risk, and duration of further proceedings on this case; remedies the violations committed by BRW; deters future violations by BRW; and allows CPSD the opportunity to monitor BRW's compliance with the Settlement Agreement, provided that CPSD's protest remains on file as part of the record of this proceeding.

26. The Settlement Agreement is in the public interest because it: (a) resolves the issues without the need for extensive, time-consuming and costly litigation; (b) remedies the violations committed by BRW; (c) promotes the future compliance of BRW with regulatory requirements; (d) increases the funds available for the Commission's public purpose programs, through BRW's payment of fees and surcharges owed for 2000 through 2008; (e) upholds the integrity of the Commission's registration process for telecommunications carriers; and (f) permits CPSD to monitor BRW's compliance with the Settlement Agreement.

27. The Settlement Agreement fairly represents the affected interests, because BRW represents the interests of its shareholders, and CPSD represents the interest of BRW ratepayers and all ratepayers in this state.

28. The Settlement Agreement includes sufficient information regarding the rights and obligations of the parties and is adequately clear for the parties and the Commission to understand its terms and for the parties to implement it.

29. The parties agree that they have freely, voluntarily, and knowingly entered into the Settlement Agreement, that the Settlement Agreement is fair and reasonable, and that each party has had the opportunity for representation by counsel.

30. All active parties have agreed to settle this case, after extensive discussions and review of the record.

31. Conducting further proceedings and litigating the issues in this case, would unnecessarily consume the time and valuable resources of the Commission and the parties.

32. BRW and CPSD have stipulated that no statements in the Settlement Agreement or the Stipulation shall be a binding admission or concession in any other proceeding, and that this Settlement shall not be precedent in any other Commission proceeding.

Conclusions of Law

1. The Settlement Agreement fully resolves and settles all disputed issues between the parties in this proceeding.

2. The amount of the fine imposed on BRW by the Settlement Agreement is permissible under state law.

3. The Settlement Agreement is consistent with the applicable law and prior Commission decisions.

4. The Settlement Agreement is in the public interest and should be approved.

5. The Settlement Agreement shall not be precedent in any future Commission proceeding.

6. Based on our review of this application, there is no need to alter the preliminary determination made in Resolution ALJ 176-3201 as to the category of this proceeding, but we alter the preliminary determination regarding hearings, and determine a hearing is necessary.

7. This decision should be effective today so that the Settlement Agreement will take effect immediately.

ORDER

IT IS ORDERED that:

1. The joint motion of Bigredwire.com, Inc. and the Commission Consumer Protection and Safety Division for adoption of the proposed Settlement Agreement, which is on file in this proceeding, is granted.

2. The Settlement Agreement is approved without modification, except that Consumer Protection and Safety Division's protest shall remain on file as part of the record in this proceeding.

3. Bigredwire.com, Inc. shall comply with all terms of the Settlement Agreement in a timely manner. Specially, Bigredwire.com, Inc. shall (a) file a new application for registration that discloses this Commission's previous revocation of Bigredwire.com, Inc.'s Certificate of Public Convenience and Necessity and Bigredwire.com, Inc.'s settlement with the Florida Public Service Commission; (b) pay a fine of $20,000 to the State General Fund in installment payments, as specified in the Settlement Agreement; (c) pay fees and surcharges owed to this Commission for 2008 by no later than August 10, 2008 referencing such payment with their former utility ID #6484; (d) pay back fees and surcharges owed to the Commission for 2000-2007 in the amount of $41,264.80, which includes simple interest calculated at 10% per year, in installment payments as specified in the Settlement Agreement, plus additional interest accrued on the unpaid balance at the rate of 10% per year calculated as compound interest; (e) file required reports for 2008 and timely file all required reports with the Commission in the future; (f) provide Consumer Protection and Safety Division with an electronic spreadsheet which shows all payments made and payment dates every three months, until all balances recited in the Settlement Agreement are paid in full; and (g) provide Consumer Protection and Safety Division with a copy of Bigredwire.com, Inc.'s bank statements upon request.

4. Consumer Protection and Safety Division shall also comply with the Settlement Agreement (except that its protest shall remain on file) and shall monitor Bigredwire.com, Inc.'s compliance.

5. Consumer Protection and Safety Division's protest shall remain on file as part of the record in this proceeding.

6. Bigredwire.com, Inc. shall file a new application for registration as a telecommunications utility in this state, in a manner consistent with the Settlement Agreement and this order, within 30 days.

7. Bigredwire.com, Inc. shall disclose this order in any subsequent application(s) for a Certificate of Public Convenience and Necessity or for registration as a telecommunications provider in this state.

8. The Settlement Agreement shall not be precedent in any other Commission proceeding.

9. Neither the Joint Statement of Undisputed facts nor any other statement in the Settlement Agreement shall be a binding admission or concession of either party in any other proceeding.

10. The motions to file the Joint Stipulation of Undisputed Facts (Stipulation) and the Settlement Agreement under seal are denied, except as to Paragraphs 10 through 12 and Paragraphs 19 through 28 of the Stipulation. Bigredwire.com, Inc. shall file a new redacted version of the Stipulation consistent with this order, accompanied by a motion for leave to file the Stipulation under seal, within 30 days.

11. Application 07-10-003 is closed.

This order is effective today.

Dated April 16, 2009, at San Francisco, California.

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