DOCKET UT-971256 Page 1
BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application  ) DOCKET UT-971256
of QUINTELCO, INC.,    )
for an Order Authorizing   )
the Registration of Applicant  ) AUTHORIZING
as a Telecommunications Company    ) REGISTRATION
. . . . . . . . . . . . . . . . . .)


  On August 13, 1997, Quintelco, 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, inbound 800/888, private line, 
access, and debit card services to the public.

  Quintelco, Inc., is a Delaware corporation, headquartered in Pearl River, New 
York.  The corporation is wholly owned subsidiary of Quintel Entertainment, 
Inc., and has no subsidiaries.

  Quintelco, Inc., 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 Quintelco, Inc., 
proposes to collect advance payments from customers.  Pursuant to statutes and 
rules governing registration applications and advance payment proposals, 
Quintelco, Inc., has proposed a satisfactory bond arrangement for protection of 
those advance payments.  Initially, the bond will be for $1,000 and will 
increase as customer base increases proportionally.  If Quintelco, Inc., ceases 
operations, Quintelco, Inc., will provide the insurer and the Commission lists 
of outstanding account numbers and balances within 48 hours.

  Quintelco, Inc., will limit the denomination size of debit cards to not more 
than $50 to residential customers and $200 to business customers.  Quintelco, 
Inc., 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. Quintelco, Inc., will 
adjust the amount of the bond based on this data.  After one year's 
administration of the bond agreement, the reporting requirement may be modified 
to a semi-annual level if the company has maintained adequate levels in the 
bond agreement during the previous 12-month period.

  Quintelco, Inc., 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 Quintelco, Inc., goes out of business, it will provide refund 
information on the company's 800 phone number for its customers. Quintelco, 
Inc., will provide a free call detail report to customers upon request.

FINDINGS

  THE COMMISSION FINDS:

  1. Quintelco, 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 Quintelco, 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 Quintelco, 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 August 13, 1997, and amended in Exhibit G, 
attached to the application, is satisfactory.  Prior to supplying service to 
the public as a telecommunications company, Quintelco, 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 the effective date of the initial tariff, Quintelco, Inc., shall 
submit to the Commission a satisfactory bond arrangement in the amount of 
$1,000.  As part of the bond arrangement and in the event the company ceases 
operations, Quintelco, Inc., will within 48 hours provide to the insurer and 
the Commission lists of outstanding account numbers and balances. 

  4. Quintelco, Inc., 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. Quintelco, Inc., 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.  Quintelco, Inc., will adjust the 
amount held in bond based on this data.  After completion of one year's 
administration of the bond 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 bond account during the previous 12-month period.

  6. Quintelco, Inc., 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, Quintelco, Inc., will provide 
refund information on the company's 800 phone number for its customers for a 
minimum of six months.

  8. Quintelco, Inc., will provide a free call detail report to customers upon 
request.  

  9. Registration of Quintelco, 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.

  10. As a telecommunications company providing service to the public in this 
state, Quintelco, 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.

  
  




  DATED at Olympia, Washington, and effective this 24th day of September, 1997.



      STEVE McLELLAN, Secretary