III. Review of the Proposed Application

Altrio's application has been reviewed for compliance with the certification-and-entry rules (Certification Rules) adopted in Appendices A and B of D.95-07-054 and subsequent decisions in R.95-04-043/I.95-04-044. The Certification Rules are intended to protect the public against unqualified or unscrupulous carriers, while also encouraging and easing the entry of CLC providers to promote the rapid growth of competition.

Altrio seeks authority to provide facilities-based and resold local exchange voice and data telecommunications services in the service territories of Pacific, Verizon, RTC and CTC as well as facilities-based and resold non-dominant interexchange telecommunications services throughout the State of California.

In this order, we will grant Altrio's request for limited facilities-based authority to provide local exchange services utilizing resale of other carriers' services and/or utilizing UNEs and/or equipment installed solely within existing buildings or structures.

Altrio demonstrated that it possesses the requisite managerial qualifications, technical competence, and financial resources to provide facilities-based local exchange service as set forth in its Exhibits D and E. Altrio was also required to submit proposed tariffs which conform to the consumer protection rules set forth in Appendix B of D.95-07-054. Upon review of the draft tariff, we have identified certain deficiencies as listed in Appendix B of this

order. All outstanding tariff deficiencies identified as Appendix B must be corrected before Altrio may otherwise begin to offer service.

As prescribed in Certification Rule 4.B(1), prospective facilities-based CLCs must also show that they possess a minimum of $100,000 in cash or cash-equivalent resources. In order to demonstrate that they possess the requisite financial resources, Altrio submitted financial statements confirming that the Applicant meets the requisite $100,000 cash requirement.

Based upon our review, we conclude Altrio has satisfactorily complied with our certification requirements for limited facilities-based authority, subject to correcting any tariff deficiencies to be identified in Appendix B, and satisfying the additional conditions set forth in the ordering paragraphs below. Accordingly, we grant Altrio authority to offer local exchange service utilizing resale of other carriers' services or UNEs and equipment located solely within existing structures within the territories of Pacific, Verizon, CTC, and RTC territories.²

² Pursuant to D.97-09-115, CLC resale authority within the RTC and CTC territories was authorized to become effective on or after April 1, 1998. Until the time that tariffed wholesale discount rates are adopted for RTC and CTC, individual CLCs certificated to resell local service within the CTC/RTC territories may enter into negotiations with each of the MSLECs on an interim wholesale discount rate. Disputes over the terms of resale arrangements may be submitted to the Commission for arbitration pursuant to the provisions of Section 252(b)(1) of the Telecommunications Act of 1996 and Commission Resolution ALJ-178.