Docket UT-971473 Page 1



BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Petition   )  DOCKET  UT-971473
of TelStar Incorporated   )  
d/b/a Whatcom Tele-Com   )
for an Order Granting    )  ORDER GRANTING 
Amendment to Registration     )  AMENDMENT TO  
to Provide Local Exchange       )  REGISTRATION APPLICATION  
Services and Authorizing    )  AND AUTHORIZING THE   
Provision of Intraexchange    )  PROVISION OF SWITCHED 
Telecommunications            )  INTRAEXCHANGE 
Services     )  TELECOMMUNICATIONS
.....................................................................)  SERVICES



  On June 20, 1997, TelStar Incorporated d/b/a Whatcom Tele-Com (TelStar) filed 
a petition to amend the company’s registration authority to provide competitive 
local exchange service in Washington.

    TelStar is a Washington corporation, headquartered in Ferndale, Washington 
and is wholly owned by John Roemer, Wesley Roemer, and Robert Mitchell.  
TelStar is currently authorized to offer intrastate services within Washington 
in Docket UT-950538, under the name of Whatcom Tele-Com.  TelStar owns PC-based 
debit platform switch, using Rhetorex 2T1 and debit software allowing 48 
digital ports for the provision of TelStar’s telecommunications services.  
TelStar provides long distance telecommunications services on an international, 
interstate, intrastate and, to the extent permitted, intraLATA basis.  TelStar 
plans to offer a range of local exchange services.  TelStar plans to offer 
Washington customers both local service and switched access services, and these 
services may be equipped with various features and functions.  TelStar will 
provide customers access to 911 emergency services, directory assistance, 
operator assisted services, relay services, lifeline service and will also 
provide vertical features such as call waiting, call forwarding and Caller I.D. 
Additionally, TelStar may augment its service offerings and add new services 
and capabilities, such as switched data services.

  Initially, TelStar will purchase wholesale basic local exchange services from 
incumbent local exchange companies and will resell those services to TelStar’s 
customers.  As the competitive local market and the TelStar customer base 
develops, TelStar plans to offer facilities based services.  

    


  TelStar has filed a proposed tariff which is satisfactory and will mirror 
incumbent Local Exchange Company (LEC) calling.  TelStar has provided the 
information necessary to demonstrate TelStar possesses adequate financial 
resources and technical competence to provide the proposed services.  TelStar 
has voluntarily committed to collect and remit to appropriate administrative 
agencies relevant excise taxes in support of various social programs, including 
enhanced 911, telecommunications relay services, and lifeline. TelStar proposes 
to collect advanced payments and deposits from customers and has filed a 
satisfactory escrow arrangement with Key Bank to secure the advanced payments 
and deposits in accordance with WAC 480-121-040.  


FINDINGS

  THE COMMISSION FINDS:

  1.  TelStar Incorporated is a public service company subject to the 
jurisdiction of this Commission under the provisions of chapter 80.36 RCW.

  2.  TelStar Incorporated has provided sufficient information to show that it 
is financially and technically capable to provide the services proposed.  

  3.  It appears, upon investigation, that the request for authority to amend 
the application for registration and provide intraexchange switched 
telecommunications services should be approved.

  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 petition of TelStar Incorporated filed with the Commission 
requesting authority to amend the application for registration and provide 
intraexchange telecommunications services is hereby granted. 

  2.  This order shall in no way affect the authority of this Commission over 
rates, service, accounts, valuations, estimates or determination of costs, or 
any matters whatsoever that may come before it, nor shall anything herein be 
construed as an acquiescence in any estimate or determination of costs, or any 
valuation of property claimed or asserted.

  3.  The proposed tariff as filed and amended, in Exhibit G attached to the 
application, is satisfactory.  Prior to supplying service to the public as a 
local exchange carrier or provision of resold services of incumbent and other 
local exchange carriers, TelStar Incorporated shall file and receive permission 
and approval for an initial tariff with the Commission. The tariff shall bear 
an effective date not less than 30 days subsequent to the date of receipt by 
the Commission.  

  4.  TelStar Incorporated shall collect advanced payments and deposits as 
stated in WAC 480-121-040 and shall comply with WAC 480-120-056, Establishment 
of Credit rule.

  DATED at Olympia, Washington, and effective this 11th day of March, 1998.


  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




       PAUL CURL, Acting Secretary