IV. Technical Qualifications

Applicants for NDIEC and CLC authority are required to make a reasonable showing of technical expertise in telecommunications or a related business. Applicant submitted biographical information on its management that demonstrates that it possesses sufficient experience and knowledge to operate as a telecommunications provider.

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

Applicant was fined $50 in 2003 by the Delaware Secretary of State for late filing of an annual report in 2001.

Since December of 2002, the Federal Communications Commission (FCC) sustained nine slamming complaints (one customer each) against Applicant. Applicant represents that four of the complaints were associated with an acquisition of a customer base from another carrier. In those instances, the notices sent to the acquired customers did not specify the actual rates as required. The notices did, however, state that the rates would be equal to or lower than the previous rates. Of the remaining 5 complaints, Applicant states that one involved a transfer of a customer base where an acquired customer was incorrectly listed by the selling carrier as an active customer. As a result, the customer was switched without authorization. Three additional complaints involved instances where Applicant could not provide documentation that the customer authorized the change. In one of those cases, Applicant did have the documentation, but could not produce it before the response was due. The last complaint involved a customer who requested service, but not long distance service. The customer's request was processed incorrectly resulting in a change of long distance provider. As a result, of the above complaints, Applicant says that it has corrected its internal procedures, and provided further guidance to its agents and employees.

Applicant represents that it has over 350,000 customers nationwide, and that these were the first complaints determined adversely to it since it started service in 1992. Applicant also represents that it currently has 88,860 customers in California. A review of our records indicates that there have been few informal complaints to the Commission, and no formal complaints have been filed. Therefore, we do not find that the above information warrants a denial of the application. However, we caution Applicant that we expect full compliance with all applicable Commission decisions, orders and rules, as well as all applicable statutes.