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ALJ/MCK/tcg Mailed 5/29/2007

Decision 07-05-060 May 24, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of NOS Communications, Inc. for Registration as an Interexchange Carrier Telephone Corporation Pursuant o the Provisions of Public Utilities Code Section 1013.

Application 05-12-007

(Filed December 6, 2005)

In the Matter of the Application of Affinity Networks Incorporated, d/b/a/ HorizonOne Communications, QuantumLink Communications, VoiP Communications, Optic Communications and/or ANI Networks for Registration as an Interexchange Carrier Telephone Corporation Pursuant o the Provisions of Public Utilities Code Section 1013.

Application 05-12-008

(Filed December 6, 2005)

(See Appendix A for a List of Appearances.)

OPINION ADOPTING SETTLEMENT AGREEMENT

TABLE OF CONTENTS

1. Summary 2

2. Procedural Background and Chronology 2

3. The Settlement Agreement 5

4. Discussion 6

5. Category and Need for Hearing 12

6. Assignments for the Proceeding 12

7. Waiver of the Comment Period 12

Findings of Fact 12

Conclusions of Law 13

ORDER 13

Appendix A: List of Appearances

Appendix B: Settlement Agreement

OPINION ADOPTING A SETTLEMENT AGREEMENT THAT LEVIES A FINE FOR VIOLATING RULE 1

1. Summary

This opinion adopts an uncontested Settlement Agreement in which NOS Communications, Inc. (NOS) and Affinity Networks Incorporated (ANI) agree to pay a fine of $10,000 for violating Rule 1 of the Commission's Rules of Practice and Procedure (Rule 1). Of this amount, $9,500 is suspended and will be waived provided there are no further violations of Rule 1 by NOS or ANI during the two years following submission of the Settlement Agreement.

Applications (A.) 05-12-007 and A.05-12-008 are consolidated into one proceeding for the purpose of addressing the Settlement Agreement, identical versions of which were submitted in both dockets. The consolidated proceeding is closed.

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