PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Telecommunications Division

RESOLUTION T-17001

Public Programs Branch

March 15, 2006

R E S O L U T I O N

Resolution T-17001. Nexus Communications,

To designate Nexus Communications, Inc. as an Eligible Telecommunications Carrier (ETC) pursuant to Resolution T-16086.

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Summary

This Resolution addresses the request of Nexus Communications, Inc. d/b/a Nexus Communications TSI, Inc. (Nexus) for designation as an Eligible Telecommunications Carrier (ETC) in certain exchanges of Verizon and SBC.

Although Nexus has satisfied most of the requirements for ETC designation as identified in Resolution T-16086, the Commission finds that the submission of Nexus lacks adherence to certain requirements. Therefore, this resolution grants conditional approval of the request of Nexus subject to submission of a letter to the Director of Telecommunications Division, within 15 days from the adoption of this Resolution, attesting, under penalty of perjury, that it will comply with the following requirements:

a) Revise its tariffs to include toll limitation as an offered service;

b) Expand its advertisement to other media of general circulation such as newspapers of general distribution, radio, website, annual bill inserts, white page directories, and other means in accordance with the Federal Communications Commission's (FCC) Report and Order (FCC 97-157) in the matter of Federal-State Joint Board on Universal Service (CC Docket No.96-45); and

c) Comply with all of the requirements applicable to Competitive Local Exchange Carriers as indicated in Appendix B of Decision 04-09-019 dated September 2, 2004, granting Nexus a Certificate of Public Convenience and Necessity

This resolution likewise grants authority to the Director of the Telecommunications Division (TD) to issue a letter to Nexus granting final approval to the request of Nexus for designation as an ETC after TD has verified that the aforementioned requirements have been met.

It is stressed that Nexus is obligated to provide all the designated services for federal universal service support in the areas for which it is designated an ETC.

Background

Pursuant to FCC 97-157, only ETCs designated by state commissions will be eligible to receive federal high cost, low income, and most rural health care universal service support beginning January 1, 1998.¹ In compliance with this order, the Commission adopted Resolution T-16086 requiring carriers seeking ETC designation to provide the following to comply with ETC eligibility and service requirements:

1. self-certification letters indicating their compliance with the ETC eligibility requirements;

a. the service areas for which the carrier is requesting ETC designation;

b. an itemized list of the designated services to be provided;

c. a list of any services which the carrier proposes not to provide and for which the carrier is requesting an extension of time;

d. an indication of whether the carrier plans to apply for a waiver of the requirement that an ETC not disconnect Lifeline service for non-payment of toll charges;

e. a description of the carrier's advertising plan, indicating the advertising media to be used, and an explanation of how its plan meets the advertising requirement in section 214(e) of the Telecommunications Act. ²

2. advice letters to implement any necessary tariff changes consistent with the ETC service requirements and

3. requests for additional time to complete network upgrades needed to provide single-party, E-911, or toll limitation services. ³

a. a justification for the extension request;

b. an indication of the length of time for which the extension is being sought;

c. an implementation plan for the network upgrades necessary to provide any of the above services; and

d. an estimate of the cost of undertaking the network upgrades.

Furthermore, carriers seeking a waiver of the prohibition to disconnect Lifeline service for non-payment of toll charges were directed to apply for such a waiver to the Commission. The waiver application must demonstrate that:

1. the carrier would incur substantial costs in complying with this requirement;

2. the carrier offers toll limitation to qualifying low-income customers without charge; and

3. the telephone subscribership among low-income customers in its area is greater than or equal to the national subscribership rate for low-income consumers.

Notice/Protests

Notice of Filing of the petition by Nexus to be designated as an ETC for purposes of federal universal service support was published in the Commission Daily Calendar of January 5, 2006. No protest to this letter request has been received.

Discussion

On December 30, 2005, Nexus, a FCC licensed and CPUC certificated competitive local exchange carrier, submitted a letter to TD requesting for ETC designation. This Resolution addresses the request of Nexus for its compliance with Resolution T-16086.

A. Compliance with ETC Eligibility and Service Requirements

Nexus will provide all of the designated services. These services include the following:

1) Voice-grade access to the public switched network;

2) Local Usage;

3) Dual tone multi-frequency (DMTF) signaling or its functional equivalent;

4) Single-party service or its functional equivalent;

5) Access to emergency services;

6) Access to operator services;

7) Access to interexchange service;

8) Access to directory assistance; and

9) Toll limitation.

Nexus will provide the above services primarily through the use of Unbundled Network Elements (UNE's) from Verizon and SBC.

Nexus likewise states that upon designation as an ETC, Nexus will participate in, and offer, LifeLine and Link-Up programs to qualifying low-income customers and publicize the availability of Lifeline and Link-Up services in a manner reasonably designed to reach those likely to qualify for those services, as required by FCC Rules.

Nexus likewise states that it will advertise the availability of these services in the Designated Areas using media of general distribution, as required by FCC Rules, including but not limited to point of sale marketing materials at targeted retail locations, television and print ads.

Although a Certificate of Public Convenience and Necessity (CPCN) was granted to Nexus on September 2, 2004, Nexus has not strictly and consistently complied with the terms and conditions set forth in Appendix B of Decision 04-09-019.

Based on the letter submitted by Nexus to TD, Nexus, has substantially complied with the guidelines and service requirements for ETCs. However, the submission of Nexus lacks adherence to certain requirements and needs correction as stated below as a condition for its designation as an ETC:

1. Revise its tariffs to include toll limitation as an offered service;

2. Expand its advertisement to other media of general circulation such as newspapers of general distribution, radio, website, annual bill inserts, white page directories, and other means in accordance with FCC Report and Order 97-157 in the matter of Federal-State Joint Board on Universal Service (CC Docket No.96-45);

3. Comply with all of the requirements applicable to Competitive Local Exchange Carriers as indicated in Appendix B of Decision 04-09-019 dated September 2, 2004, granting Nexus a Certificate of Public Convenience and Necessity

Nexus should, within 15 days from the effective date of this resolution, send a letter to the TD Director, certifying, under penalty of perjury, that it will comply with the abovementioned requirements.

The TD Director will, after TD has verified that the above requirements have been met, send a letter to Nexus granting final approval of their request for ETC designation.

B. Universal Service Administrative Company Certification Requirements

After final approval is issued by the TD Director, Nexus, as an ETC, should file information with the federal universal service administrator, the Universal Service Administrative Company (USAC), pursuant to 47 C. F. R. § 54.401 (d), demonstrating that its Lifeline service meets the FCC requirements, and stating the number of qualifying low-income customers and the amount of state assistance. Nexus shall provide the USAC an estimated amount of state assistance (if any) based on current ULTS rates, net of the expected amount of federal support. A copy of the filing of Nexus with the USAC shall be provided to the TD Director.

C. Reimbursements from the ULTS Fund

As a designated ETC, Nexus is eligible to obtain federal Lifeline and Link Up support. Resolution T-16086 points out that ULTS payments from California be reduced by amounts received under the federal ETC program.

Comments

In compliance with PU Code § 311 (g), a notice letter was e-mailed on February 10, 2006, to all Local Exchange Carriers, all facilities-based Competitive Local Carriers, and all facilities-based broadband Commercial Mobile Radio Service carriers, advising parties of the availability of the draft resolution on the Commission website http://www.cpuc.ca.gov/static/documents/index.htm for public comments. In addition, TD informed these parties of the availability of the conformed resolution, when adopted by the Commission, at the same website.

TD received no comments on this resolution.

Findings

1. Resolution T-16086 established a procedure for California telecommunications carriers to request designation as eligible telecommunications carriers.

2. Nexus, Inc. d/b/a/ Nexus Communications TSI, Inc., (Nexus) is a Federal Communications Commission (FCC) licensed, California Public Utilities Commission (CPUC) certificated competitive local exchange carrier.

3. Nexus submitted an application letter requesting designation as an Eligible Telecommunications Carrier (ETC) on December 30, 2005.

4. The notice of filing of the application letter petition was published in the Commission Daily Calendar of January 5, 2006.

5. No protests were received on the request of Nexus for ETC designation.

6. Nexus is requesting for ETC designation in exchanges served in certain Verizon and SBC service areas as shown in Appendices A & B.

7. Nexus states that it provides the following services: Voice-grade access to the public switched network; Local Usage; Dual tone multi-frequency signaling or its functional equivalent; Single-party service or its functional equivalent; Access to emergency services; Access to operator services; Access to interexchange service; Access to directory assistance; and Toll limitation.

8. Nexus states that it provides the above services primarily through the use of Unbundled Network Elements leased from Verizon and SBC.

9. Nexus indicated that it will advertise the availability of its services and the charges for those services in the Designated Area using media of general distribution, as required by FCC rules.

10. Based on the application letter submitted by Nexus to Telecommunications Division (TD), Nexus has substantially complied with the guidelines set in Resolution T-16086 and Federal Communications Commission's service requirements for ETCs. However, TD finds that Nexus should, within 15 days from the effective date of this resolution, send an attestation letter to the Director of TD certifying, under penalty of perjury, that it will comply with the following requirements:

a. Revise its tariffs to include toll limitation as an offered service;

b. Expand its advertisement to other media of general circulation such as newspapers of general distribution, radio, website, annual bill inserts, white page directories, and other means in accordance with FCC Report and Order 97-157 in the matter of Federal-State Joint Board on Universal Service (CC Docket No.96-45); and

c. Comply with all of the requirements applicable to Competitive Local Exchange Carriers as indicated in Appendix B of Decision 04-09-019 dated September 2, 2004, granting Nexus a Certificate of Public Convenience and Necessity.

11. TD should verify that the above requirements have been met.

12. The Director of TD should be given authority to send a final approval letter to Nexus designating Nexus as an ETC after the aforementioned requirements have been met.

13. After final approval is issued by the Director of TD, Nexus, as an ETC, should file information with the federal universal service administrator, the Universal Service Administrative Company (USAC). A copy of the filing of Nexus with the USAC should be provided to the TD Director.

14. A notice letter was e-mailed on February 10, 2006 to all Local Exchange Carriers, all facilities-based Competitive Local Carriers, and all facilities-based broadband Commercial Mobile Radio Service carriers, advising parties of the availability of the draft resolution on the Commission website http://www.cpuc.ca.gov/static/documents/index.htm for public comments. In addition, TD informed these parties of the availability of the conformed resolution, when adopted by the Commission, at the same website.

15. TD received no comments on this resolution.

THEREFORE, IT IS ORDERED that:

1. Nexus, Inc. d/b/a Nexus Communications TSI, Inc., is granted conditional approval as an Eligible Telecommunications Carrier (ETC) in exchanges served by Verizon and SBC as shown in Appendices A & B.

2. Nexus shall comply with all of the requirements applicable to Competitive Local Exchange Carriers as indicated in Appendix B of Decision 02-05-031 dated May 16, 2002.

3. As a condition for being designated as an ETC, Nexus shall, within 15 days from the effective date of this resolution, submit an attestation letter to the Telecommunications Director (TD) Director certifying, under penalty of perjury, that it will:

a) Revise its tariffs to include toll limitation as an offered service;

b) Expand its advertisement to other media of general circulation such as newspapers of general distribution, radio, website, annual bill inserts, white page directories, and other means in accordance with the Federal Communications Commission's (FCC) Report and Order (FCC 97-157) in the matter of Federal-State Joint Board on Universal Service (CC Docket No.96-45); and

c) Comply with all of the requirements applicable to Competitive Local Exchange Carriers as indicated in Appendix B of Decision 04-09-019 dated September 2, 2004, granting Nexus a Certificate of Public Convenience and Necessity.

4. TD shall verify that the above requirements have been met.

5. The TD Director is granted the authority to send a final approval letter to Nexus designating Nexus, Inc. as an ETC after the aforementioned requirements have been met.

6. As a designated ETC, Nexus shall file information with the federal universal service administrator, the Universal Service Administrative Nexus (USAC). A copy of the filing of Nexus with the USAC shall be provided to the TD Director.

This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on March 15, 2006. The following Commissioners approved it:

/s/ STEVE LARSON

STEVE LARSON

Executive Director

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

Commissioners

APPENDIX A

LIST OF EXCHANGES