II. Background

Applicants for authority to offer telecommunications services within the State of California are generally obligated to obtain a CPCN pursuant to the provisions of Pub. Util. Code §§ 1001 et seq. However, applicants who meet the requirements for registration contained in Pub. Util. Code § 1013¹ may qualify for an exemption from the more lengthy CPCN application process.

The Application for registration was initially reviewed by staff of the Commission's Telecommunications Division. They questioned whether Applicant was entitled to use the registration procedure and forwarded the Application to the Administrative Law Judge Division for further consideration. On May 15, 2003, the Application was assigned to Commissioner Loretta M. Lynch and Administrative Law Judge (ALJ) Karl J. Bemesderfer.

On June 26, 2003, in response to a request from the then-assigned ALJ for additional financial information, Applicant filed a supplement to the Application, consisting of a balance sheet and income statement for its parent corporation, Consolidated Communications, Inc. (CCI), dated as of March 31, 2003.

¹ California Pub. Util. Code § 1013 reads in relevant part as follows:

(a) The commission may by rule or order, partially or completely, exempt certain telecommunications services offered by telephone and telegraph corporations from the certification requirements of Section 1001 and instead subject them to registration as the commission may determine...

(d) Prior to designating any telephone corporation for registration status, the commission shall adopt rules to do both of the following:

(1) Verify the financial viability of the corporation.

(2) Verify that the officers of the corporation have no prior history of committing fraud on the public.

Our rules implementing these statutory instructions require that applicants demonstrate compliance by themselves and officers, directors, general partners, affiliates or 10% or greater shareholders.