4. Proposed Settlement

The attached Settlement Agreement (Appendix D hereto) has been negotiated by the parties in good faith; they believe it resolves all of the issues in CPSD's protest. 88 Telecom has presented documentation that demonstrates that Wong no longer participates in the management of 88 Telecom, and that Wong no longer has any ownership interest in the company. 88 Telecom acknowledges that Public Utilities Code Section 885 requires prepaid debit card companies to comply with the Commission's registration requirements in Public Utilities Code Section 1013, and that 88 Telecom failed to obtain such authority for the reasons stated above. 88 Telecom regrets that it failed to fully advise the Commission of the issues stated above, but asserts that it has attempted to respond rapidly to correct the issues raised in CPSD's protest. 88 Telecom agrees to meet its regulatory and legal obligations and its responsibilities to its customers and members of the public. Finally, 88 Telecom agrees to pay a fine of $8,000 to the State's General Fund.