III. Financial Qualifications
To be granted a CPCN, an applicant for authority to provide facilities-based and resold local exchange and/or interexchange services must demonstrate that it has a minimum of $100,000 of cash or cash equivalent to meet the firm's start-up expenses.1 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers (LECs) and/or interexchange carriers (IECs) in order to provide the proposed service.2 Applicant provided a guarantee from its parent, NetLojix Communications, Inc., that demonstrates that it has sufficient cash to satisfy the financial requirements.
1 The financial requirements for CLCs are contained in D.95-12-056, Appendix C. The financial requirement for NDIECs is contained in D.91-10-041. 2 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying LECs and/or IECs is set forth in D.95-12-056, Appendix C. For NDIECs, the requirement is found inD.93-05-010.
