5. Managerial and Technical Qualifications

To be granted a CPCN for authority to provide local exchange and interexchange service, an applicant must make a reasonable showing of managerial and technical expertise in telecommunications or a related business.4 XYN supplied biographical information on its management, in its application, that demonstrated that it has sufficient expertise and training to operate as a telecommunications provider.

XYN verified that no one associated with or employed by XYN as an affiliate, officer, director, partner, or owner of more than 10% of XYN was previously associated with a telecommunications carrier that filed for bankruptcy, or was sanctioned by the Federal Communications Commission or any state regulatory agency for failure to comply with any regulatory statute, rule, or order.

XYN also verified that no one associated with or employed by it as an affiliate, officer, director, partner, or owner of more than 10% of XYN was previously associated with any telecommunications carrier that has been found either civilly or criminally liable by a court of appropriate jurisdiction for a violation of § 17000, et seq. of the California Business and Professions Code, or for any actions which involved misrepresentations to consumers, nor is currently under investigation for similar violations.

For the above reasons, we find that XYN is in compliance with these requirements of D.95-12-056.

4 D.95-12-056 at Appendix C, Rule 4.A.

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