DOCKET UT-970667 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application of ) PHONETIME, INC., ) DOCKET UT-970667 for an Order Authorizing the ) Registration of Applicant as a ) AUTHORIZING Telecommunications Company. ) REGISTRATION . . . . . . . . . . . . . . . . . . . . ) On April 18, 1997, PHONETIME, Inc., filed an application for regi-stration as a telecommunications company pursuant to RCW 80.36.350. The applicant proposes to offer direct dial long distance, inbound 800, and debit card services to residential and commercial customers. PHONETIME, Inc., is a New York corporation, headquartered in Whitestone-, New York. The corpo-ration is wholly owned by four individuals-. Rates, terms and conditions set forth in the proposed tariff are struc-tured similarly to rates filed by other telecommunications companies for calls placed in the relevant market. PHONETIME, Inc., proposes to sell debit calling cards to the general public in increments of no more than fifty dollar advance payments. Customers access the underlying carrier's network by dialing PHONETIME, Inc.'s toll free 800 access number and entering a designated account number listed on the card. The price of each call is automatically debited from that account until the card's ac-count balance is depleted. PHONETIME, Inc., has provided information showing that it pos-sesses adequate financial resources, and technical competence to provide the proposed services. The nature of the debit card service implies PHONETIME, Inc., proposes collecting advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, PHONETIME, Inc., has proposed a satisfactory bond arrangement for protection of those advance payments. PHONETIME, Inc., will establish a bond for an initial amount of $5,000, dedicated solely for customer refunds. If PHONETIME, Inc., ceases operations, PHONETIME, Inc., will provide their trustee, and the Commission lists of outstanding account numbers and balances within 48 hours. PHONETIME, Inc., will limit the denomination size of debit calling cards to not more than $50. PHONETIME, Inc., will give the Commission quarterly reports listing outstanding debit calling card account balances and current company financial information. PHONETIME, Inc., will adjust the amount protected by bond based on this data. After one year's administration of the surety bond, the reporting require-ment may be modified if the company has maintained adequate levels in bond during the previous 12-month period. PHONETIME, Inc., will offer an unconditional money-back guarantee on the debit calling cards and a statement warning customers to safeguard their cards. If PHONETIME, Inc., goes out of business, it will provide refund information on the company's 800 phone number for its customers for a minimum period of six months. PHONETIME, Inc., will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. PHONETIME, Inc., filed an application pursuant to the provisions of RCW 80.36.350 and the rules and regulations of the Commission for an order approving its application for registration as a telecommuni-cations company. 2. As to form, the application filed herein, as sup-plemented and amended, meets the requirements of RCW 80.36.350 and the rules and regulations of the Commission adopted pursuant thereto. 3. The registration of PHONETIME, Inc., as a telecommunications company is not inconsistent with the public interest. 4. In this proceeding, the Commission in no way endorses the financial viability of applicant nor the investment quality of any securities it may issue. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this order and subject to the conditions hereof, the application of PHONETIME, Inc., filed with the Commission pur-suant to the provisions of RCW 80.36.350 requesting an order authorizing registration as a telecommunications company to pro-vide service to the public in this state is approved. 2. The proposed tariff as filed on April 18, 1997, and amended in Exhibit G attached to the application, is satis- factory. Prior to supplying service to the public as a telecom- munications company, PHONETIME, Inc., shall file an initial tariff with the Commission identical to the amended Exhibit G of the application. The tariff shall bear an effective date not less than 30 days subsequent to the date of receipt by the Commission. 3. Prior to, or at the time it files the initial tariff, PHONETIME, Inc., shall submit to the Commission a bond arrangement for an initial amount of $5,000, in accordance with WAC 480-121-140. As part of the bond arrangement and in the event the company ceases operations, PHONETIME, Inc., will within 48 hours provide to the trustee and to the Commission lists of outstanding account numbers and balances. 4. PHONETIME, Inc., will limit the amount of debit calling cards to be purchased to not more than $50 increments. 5. PHONETIME, Inc., will submit to the Commission quar-terly financial data listing outstanding debit calling card account balances and current company financial information determined by the Commission. PHONETIME, Inc., will adjust the amount protected by bond based on this data. After completion of one year's administration of the bond, the reporting require-ment may be modified if it is determined the company has maintained an adequate level in the bond during the previous 12-month period. 6. PHONETIME, Inc., will honor a money-back guarantee on the debit calling cards and will provide a state-ment warning customers to safeguard their cards. 7. In the event the company ceases operations, PHONETIME, Inc., will provide refund information on the company's 800 phone number for its customers for a minimum period of six mon-ths. 8. PHONETIME, Inc., will provide a free call detail report to customers upon request. 9. Registration of PHONETIME, Inc., as a tele-communications company shall not be construed as an endorsement of financial viability nor of the investment quality of any securities it may issue. 10. As a telecommunications company providing service to the public in this state, PHONETIME, Inc., is subject to the jurisdiction of this Commis-sion under the pro-visions of Title 80 RCW and all rules and regu-lations of the Commission adopted pursuant thereto. DATED at Olympia, Washington, and effective this 16th day of May, 1997. STEVE McLELLAN, Secretary