DOCKET UT-980274 Page 1



BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of    )
the Petition of    ) DOCKET UT-980274 
SMARTALK TELESERVICES, INC.,   )
for Waiver of Certain    ) ORDER GRANTING 
Requirements Imposed as   ) CONDITIONAL WAIVER OF
Preconditions to Registration  ) CERTAIN REQUIREMENTS
       ) IMPOSED AS PRECONDITIONS
. . . . . . . . . . . . . . . . . .) TO REGISTRATION


  On March 4, 1998, SmarTalk TeleServices, Inc., (SmarTalk) filed a petition 
requesting waiver of certain requirements prescribed by the Commission as 
preconditions for registration.  This request constitutes an amendment to 
SmarTalk's application for registration as a telecommunications company to 
provide prepaid calling card service, which was approved by the Commission in 
Docket UT-951159.

  SmarTalk is requesting waiver of the Commission's limitation on the retail 
denomination of prepaid calling cards sold by SmarTalk.  SmarTalk has a 
national contract with the United States Postal Service to market prepaid 
calling cards at retail denominations that are higher than the Commission's 
denomination limitation imposed on SmarTalk in Docket UT-951159, Paragraph 4 of 
the Order.  SmarTalk wishes to market prepaid calling cards in $100, $125, and 
$179 retail denominations. SmarTalk's goal is to offer prepaid calling card 
service that is highly competitive with conventional travel card service and 
other competing debit card type services and which affords convenience and 
value to users.

  SmarTalk filed a satisfactory escrow agreement in Docket UT-951159 to protect 
the advanced payments in accordance with the requirements of WAC 480-121-040.  
SmarTalk has agreed to place an additional $10,000 into its currrent escrow 
account to protect the company’s additional outstanding liability from the 
higher retail denomination of prepaid calling cards.  SmarTalk shall adjust the 
amount held in escrow based upon financial reports submitted to the Commission 
per Docket UT-960055, Commission order that requires SmarTalk to submit 
quarterly prepaid calling card financial reports.   

   FINDINGS

  1. SmarTalk TeleServices, Inc., is a public service company subject to the 
jurisdiction of this Commission under the provisions of Chapter 80.36 RCW.

  2. It appears, upon investigation, that the request for authority to amend 
the requirements imposed as preconditions to SmarTalk TeleServices, Inc.'s 
registration, as cited in this order, is reasonable and not inconsistent with 
the public interest and should therefore be granted.

O R D E R

  1. -Amend Paragraph 4 of Commission Order in Docket UT-951159 to read, 
SmarTalk TeleServices, Inc., will limit the face value of debit (prepaid) 
calling cards to be purchased to not more than $200 for residential and 
business customers.

  2. SmarTalk TeleServices, Inc., shall maintain its current satisfactory 
escrow account at sufficient levels to protect the prepaid monies from prepaid 
calling cards sold in accordance with WAC 480-121-040.

  3. Upon new rules becoming effective, SmarTalk TeleServices, Inc., shall 
comply with the requirements of the proposed rulemaking in Docket UT-971469, 
Prepaid Telephone Services.


  DATED at Olympia, Washington, and effective this 29th day of April, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      PAUL CURL, Acting Secretary