1. Summary
In Decision 10-09-017 the California Public Utilities Commission (Commission or CPUC) modified the requirements for telecommunications corporations1 seeking registration authority pursuant to Section 1013 of the Public Utilities (Pub. Util.) Code. This was done in part in response to concerns raised by the State Controller's 2007 Audit Report concerning carrier fitness and financial responsibility. Many of those same concerns are applicable to telecommunications corporations that seek to operate pursuant to a certificate of public convenience and necessity (CPCN) or registration as a wireless reseller. Therefore, it is appropriate to initiate this proceeding to review and revise the operating authority requirements for (1) telephone corporations to qualify for a CPCN pursuant to Pub. Util. Code § 1001, and (2) telecommunications corporations which are also Commercial Mobile Radio Service (CMRS)2 providers to qualify for a Wireless Identification registration pursuant to Commission Decisions (D) 94-10-031, D.94-12-042, and D.95-10-032.
The following five issues are to be resolved for telephone corporations holding, transferring or seeking CPCNs, and for Wireless Carriers seeking of holding Wireless Identification Registrations (WIR):
1. Should a performance bond requirement be established for CPCN certificate holders and/or for WIR registration holders and, if so, what size of bond should be required and what should be the terms and conditions? Are there alternatives to a performance bond that provide the same level of protection?
2. Should a standardized applicant fitness checklist be devised for new CPCN applicants seeking certification and Wireless Carriers seeking registration? If so, what should the requirements be for each?
3. Should the application fee for CPCN authority be increased from the current fee of $75? If so, by how much should the fee be increased? Should the same fee be charged to Wireless Carriers seeking WIR registration authority? Should a filing fee be required for the sale, assignment or transfer of an existing certificate/registration to another company? Should a separate filing fee be required for requests for expansions of authority or just for the initial filing? If so, what should the amounts be?
4. Should the terms of payment of the Public Utilities Commission (PUC) Reimbursement Fee (User Fee) as required for CPCN holders, pursuant to Pub. Util. Code § 431, and for Wireless Registrants, be modified so that certificated and registered providers pay a minimum annual assessment, or a percentage of gross intrastate revenues, whichever is greater?
5. Should other changes be made in the requirements for processing CPCN applications or wireless registrations? Should we require CPCN holders or wireless registrants, including prepaid wireless providers, to pay an annual licensing fee? If so, what should the requirements and the amount be? Should there be a fee to withdraw operating authority? Should we add terms and conditions to the existing wireless registration process, such as providing proof of registration with the California Secretary of State and a copy of the resale agreement with an underlying facilities based wireless carrier as shown at the end of Attachment A to this Order Instituting Rulemaking?
For each of these questions this order instituting rulemaking proposes a resolution and seeks comments. The Commission also seeks recommendations on other changes that are appropriate to make.
1 "Telephone Corporation" is defined in Pub. Util. Code §234 as any corporation or person owning, controlling, operating, or managing any telephone line for compensation within California.
2 CMRS refers to Commercial Mobile Radio Service, and includes Cellular Services, Personal Communications Services (PCS), Wide-Area Specialized Mobile Radio Services (SMR), Radio Telephone Utilities (RTU or paging) services, and many other wireless services. (D.96-12-071, supra, 70 CPUC2d 61, 65.) The terms "CMRS" and "wireless" are commonly used interchangeably with "cellular."
