DOCKET UT-971822 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-971822 of PARADIGM COMMUNICATIONS CORP., ) d/b/a GLOBAL COMMUNICATIONS NETWORK) for an Order Authorizing ) the Registration of Applicant ) AUTHORIZING as a Telecommunications Company ) REGISTRATION . . . . . . . . . . . . . . . . . .) On December 19, 1997, Paradigm Communications Corp., d/b/a Global Communications Network filed an application for registration as a telecommunications company pursuant to RCW 80.36.350. Applicant proposes to offer resold direct dialed long distance and debit card services to the public. Paradigm Communications Corp., d/b/a Global Communications Network is a California corporation, headquartered in Santa Monica, California. The corporation is wholly owned by numerous individuals. Paradigm Communications Corp., d/b/a Global Communications Network has provided information showing that it possesses adequate financial resources, and technical competence to provide the proposed services. The nature of the debit card service implies Paradigm Communications Corp., d/b/a Global Communications Network proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, Paradigm Communications Corp., d/b/a Global Communications Network has proposed a satisfactory escrow account for protection of those advance payments. Initially, the escrow account will have $1,000 deposited and will increase as customer base increases proportionally. If Paradigm Communications Corp., d/b/a Global Communications Network ceases operations, Paradigm Communications Corp., d/b/a Global Communications Network will provide the bank and the Commission lists of outstanding account numbers and balances within 48 hours. Paradigm Communications Corp., d/b/a Global Communications Network will limit the denomination size of debit cards to not more than $50 to residential customers and $200 to business customers. Paradigm Communications Corp., d/b/a Global Communications Network will give the Commission quarterly reports listing total outstanding debit card balances, dollar amount of debit cards sold, depleted usage of debit cards sold, and current company financial information. Paradigm Communications Corp., d/b/a Global Communications Network will adjust the amount of the escrow account based on this data. After one year's administration of the escrow account, the reporting requirement may be modified to a semi-annual level if the company has maintained adequate levels in the escrow account during the previous 12-month period. Paradigm Communications Corp., d/b/a Global Communications Network will state an unconditional money-back guarantee on the debit card or on supplemental material that will be provided at the time the debit card is purchased with a statement warning customers to safeguard their cards. If Paradigm Communications Corp., d/b/a Global Communications Network goes out of business, it will provide refund information on the company's 800 phone number for its customers. Paradigm Communications Corp., d/b/a Global Communications Network will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. Paradigm Communications Corp., d/b/a Global Communications Network 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 Paradigm Communications Corp., d/b/a Global Communications Network 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 Paradigm Communications Corp., d/b/a Global Communications Network 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 December 19, 1997, and amended in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a telecommunications company, Paradigm Communications Corp., d/b/a Global Communications Network 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 the effective date of the initial tariff, Paradigm Communications Corp., d/b/a Global Communications Network shall submit to the Commission a satisfactory escrow account in the amount of $1,000. As part of the escrow account and in the event the company ceases operations, Paradigm Communications Corp., d/b/a Global Communications Network will within 48 hours provide to the bank and the Commission lists of outstanding account numbers and balances. 4. Paradigm Communications Corp., d/b/a Global Communications Network will limit the amount of debit cards to be purchased of not more than $50 increments for residential customers and $200 for business customers. 5. Paradigm Communications Corp., d/b/a Global Communications Network will submit to the Commission quarterly financial data listing the total outstanding debit card balances, dollar amount of debit cards sold, depleted usage of debit cards sold, and current company financial information determined by the Commission. Paradigm Communications Corp., d/b/a Global Communications Network will adjust the amount held in escrow based on this data. After completion of one year's administration of the escrow account, the reporting requirement may be modified to a semi-annual level if staff determines that the company has maintained a sufficient level in the escrow account during the previous 12-month period. 6. Paradigm Communications Corp., d/b/a Global Communications Network shall state that there is a money-back guarantee on the debit cards and provide a statement warning customers to safeguard their cards. 7. In the event the company ceases operations, Paradigm Communications Corp., d/b/a Global Communications Network will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 8. Paradigm Communications Corp., d/b/a Global Communications Network will provide a free call detail report to customers upon request. 9. Registration of Paradigm Communications Corp., d/b/a Global Communications Network 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. 10. As a telecommunications company providing service to the public in this state, Paradigm Communications Corp., d/b/a Global Communications Network 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. DATED at Olympia, Washington, and effective this 14th day of January, 1998. PAUL CURL, Acting Secretary