7. Financial Qualifications

To be granted a CPCN, an applicant for authority to provide facilities-based and resold local exchange and interexchange services must demonstrate that it has a minimum of $100,000 cash or cash equivalent to meet the firm's start-up expenses.⁷ An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers and/or IEC's in order to provide the proposed

service.⁸ Applicant provided its most recent audited financial statement that demonstrates that it has sufficient cash to satisfy this financial requirement.

⁷ The financial requirement for CLCs is contained in D.95-12-056, Appendix C. The financial requirement for Non-dominant Interexchange Carriers is contained in D.91-10-041.

⁸ 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 in D.93-05-010.