DOCKET UT-970912 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-970912 of ASC TELECOM, INC., ) for an Order Authorizing ) AUTHORIZING the Registration of Applicant ) REGISTRATION as a Telecommunications Company ) . . . . . . . . . . . . . . . . . .) On May 27, 1997, ASC Telecom, Inc., filed an application for registration as a telecommunications company pursuant to RCW 80.36.350. Applicant proposes to offer resold direct dialed long distance, alternate operator, and prepaid calling card services to the public. ASC Telecom, Inc., is a Kansas corporation, headquartered in Westwood, Kansas. The corporation is a wholly-owned subsidiary of US Telecom, Inc., which, in turn, is a wholly-owned subsidiary of Sprint Corporation. ASC Telecom, Inc., has provided information showing that it possesses adequate financial resources, and technical competence to provide debit card long distance service. The nature of the debit card service implies ASC Telecom, Inc., proposes to collect advance payments from customers. If ASC Telecom, Inc., ceases operations, ASC Telecom, Inc., will provide the Commission lists of outstanding account numbers, names, and balances within 48 hours. ASC Telecom, Inc., will limit the denomination size of debit cards to not more than $50 to residential customers. ASC Telecom, Inc., will state an unconditional money-back guarantee on the debit calling card or on supplemental material that will be provided at the time the debit calling card is purchased with a statement warning customers to safeguard their cards. If ASC Telecom, Inc., goes out of business, it will provide refund information on the company's 800 phone number for its customers. ASC Telecom, Inc., will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. ASC Telecom, 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 telecommunications company. 2. As to form, the application filed herein, as supplemented 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 ASC Telecom, 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 ASC Telecom, Inc., filed with the Commission pursuant to the provisions of RCW 80.36.350 requesting an order authorizing registration as a telecommunications company to provide service to the public in this state is approved. 2. The proposed tariff as filed on May 27, 1997, and amended in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a telecommunications company, ASC Telecom, 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. In the event the company ceases operations, ASC Telecom, Inc., will within 48 hours provide to the Commission lists of outstanding account numbers, names, and balances. 4. ASC Telecom, Inc., will limit the amount of debit calling cards to be purchased to not more than $50 increments for residential customers. 5. ASC Telecom, Inc., shall state that there is a money-back guarantee on the debit calling cards and provide a statement warning customers to safeguard their cards. 6. In the event the company ceases operations, ASC Telecom, Inc., will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 7. ASC Telecom, Inc., will provide a free call detail report to customers upon request. 8. Registration of ASC Telecom, Inc., as a telecommunications company shall not be construed as an endorsement of financial viability nor of the investment quality of any securities it may issue. 9. As a telecommunications company providing service to the public in this state, ASC Telecom, Inc., is subject to the jurisdiction of this Commission under the provisions of Title 80 RCW and all rules and regulations of the Commission adopted pursuant thereto. 10. ASC Telecom, Inc., will comply with WAC 480-120-141, rules relating to alternate operator services. DATED at Olympia, Washington, and effective this 25th day of June, 1997. STEVE McLELLAN, Secretary