4. Financial Qualifications

Pursuant to Rule 4.B of D.95-12-056 (Appendix C), an applicant for a CPCN for authority to provide resold local exchange and interexchange telecommunications service must demonstrate that it has $25,000 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.

At Exhibit E (confidential) to the application, the Applicant has provided financial statements that demonstrate that it has access to well over $25,000 cash or cash equivalent. This amount is sufficient to cover start-up expenses and is reasonably liquid and available.

Applicant proposes to offer service within the territories of AT&T, Verizon, Frontier, and SureWest. In its application, Network Billing indicates that it has been serving California customers since 1998 and currently has resale and/or deposit agreements with carriers. It is not anticipated that any additional resale and/or deposit agreements would be required by AT&T, Verizon, Frontier and SureWest. Thus, Applicant satisfies our financial qualifications requirements.