4. Financial Qualifications

Pursuant to Rule 4.B of D.95-12-056, an applicant for a CPCN for authority to provide limited facilities-based and resold local exchange and interexchange services 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.

In (confidential) Exhibit E to the application, Applicant has provided its 2009 audited financial statements and bank statement through November 2010. The financial and bank statements demonstrate that ABi has access to well over $100,000 in cash, which is an amount sufficient to cover start-up expenses and is reasonably liquid and available.

ABi proposes to offer service within the territories of AT&T, Verizon, SureWest and Frontier. In its application, ABi stated that it does not yet have agreements with other carriers to purchase services for resale and anticipates that the requirement for deposits (if any) would be negotiated as part of such agreements. If deposits are required, Applicant does not expect the total amount to exceed $25,000.00.⁵ Applicant's financial and bank statements demonstrate that it has sufficient funds to cover any deposit requirements. We find that ABi has demonstrated that it has sufficient funds to pay deposits, and thus, fulfills the Commission's deposit requirement.

⁵ A.10-12-011 at 6-7.