IV. Technical Qualifications

Applicants for CLC authority are required to make a reasonable showing of technical expertise in telecommunications or a related business. Applicant states its business will be managed by the existing Mpower Communications Corp. corporate management team. Applicant submitted biographical information on its officers that demonstrates that it possesses sufficient experience and knowledge to operate as a telecommunications provider.

V. Prior Bankruptcy and Sanctions

Applicant confirms, with three exceptions discussed below, 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.

The first exception noted by Applicant is a pre-negotiated plan for reorganization filed in 2002 by Mpower Holding Corporation, Applicant's parent. We approved the proposed change of control by Decision (D.) 02-07-018 after finding that it was in the public interest. Since the bankruptcy court approved the plan for reorganization, Mpower Communications Corp. has established itself as a viable competitor in the California market. Mpower Communications Corp.'s earlier request to withdraw from certain exchanges in California, approved in D.01-11-020 prior to the plan for reorganization, has not been repeated. We concur with Applicant's recommendation that the prior plan for reorganization, approved and implemented in 2002, should not affect our determination that Applicant is capable of operating in the public interest.

The second exception concerns two customer complaints for unauthorized switching filed at the Federal Communications Commission (FCC) in 2001. The FCC found Mpower Communications Corp. had switched the two customers without authorization. Applicant explains that the unauthorized switching was inadvertent and that Mpower Communications Corp. fully complied with the FCC's director to absolve the customers of the first 30 days' charges. We concur with Applicant those two instances of unauthorized switching four years ago do not suggest that Applicant will fail to comply with our rules and regulations.

Finally, Applicant reports that ICG Communications, Inc. (or its operating subsidiaries), owner of 10% or more of the shares of Mpower Holding Corporation, were parties to bankruptcy reorganization and were fined for failure to submit timely regulatory reports in other states. However, we approved in D.04-10-005 the transfer of ICG Communications, Inc. to MCCC ICG Holdings LLC and neither ICG Communications, Inc. nor MCCC ICG Holdings LLC exercises direct or indirect control over Applicant. We concur with Applicant that the reorganization of ICG Communications, Inc., now controlled by MCCC ICG Holdings LLC, does not affect Applicant's financial status. We also concur with Applicant that ICG Communications, Inc.'s failure to satisfy filing requirements in other states, when ICG Communications, Inc. has no control over Applicant, has no bearing on Applicant's willingness to comply with our rules and regulations.