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) Exhibits B and D to the application, Applicant has provided its financial statements and a guarantee of its obligations by its parent corporation, ANPI. The statements and guarantee demonstrate that Common Point has access to $150,000 in cash, which is an amount sufficient to cover start-up expenses and is reasonably liquid and available.

Common Point proposes to offer service within the territories of AT&T, Verizon, SureWest and Frontier. The initial application was silent on the additional resources the Applicant possessed in order to comply with the deposits required by other telecommunications carriers in order to provide service in California. In its response to the Administrative Law Judge's (ALJ) Ruling, the Applicant has confirmed that the additional $50,000 in funding provided by the ANPI guarantee would be available to cover any deposit requirements. We find that Common Point has demonstrated that it has sufficient funds to pay any required deposits, and thus, fulfills the Commission's deposit requirement.