DOCKET UT-980595 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of ) Comm South Companies, Inc., ) DOCKET UT-980595 for an Order ) Granting ) ORDER GRANTING Registration to ) REGISTRATION Provide Local Exchange ) AND Services and Authorizing ) AUTHORIZING THE Provision of Intraexchange ) PROVISION OF INTRAEXCHANGE Services. ) TELECOMMUNICATIONS ............................................................) SERVICES. On April 23, 1998, Comm South Companies, Inc., (Comm South) filed for authority to provide local exchange telecommunications services in Docket UT-980595. Comm South is an alternative telephone company primarily furnishing prepaid local dial tone through resale to individuals who have had their telephone disconnected. Comm South intends to provide an array of integrated telecommunications services primarily as a resale carrier, using the network switching and transport facilities of other facilities based carriers. Comm South is a non facilities based reseller of incumbent local exchange carrier services and contracts with other local exchange carriers for installation. Comm South is a Texas corporation headquartered in Dallas, Texas and is wholly owned by Jim Graham, William Tobin Wilson, and Steve Harvanek. Comm South has established a toll free 800 number for access to customer service representatives. Comm South intends to serve the geographic regions currently served by incumbent local exchange companies and incorporates the boundares of the exchanges of U S WEST Communications, Inc. Comm South proposes to collect advance payments from customers in compliance with WAC 480-121-040. Pursuant to statutes and rules governing registration applications and advance payment proposals, Comm South has proposed a satisfactory bond arrangement for protection of those advanced payments. If Comm South ceases operations, Comm South will provide the insurer and the Commission lists of outstanding account numbers, names, and balances within 48 hours and provide refund information on the company’s toll free phone number for its customers. Comm South’s proposed tariff is satisfactory and will mirror incumbent local exchange company calling areas. Comm South will submit to the Commission on a quarterly basis, under Docket UT-980595, the following information: The number of Washington customers in total. The geographic location of those customers (either city or county). The number of Washington customers gained within the reporting period. The amount of advance payment dollars collected during the reporting period. Report the amount of advanced payments currently being held by the company. The number of reconnection fees paid during the reporting period. The amount of revenue generated from reconnection fees during the reporting period. The number of disconnections for nonpayment made during the reporting period. Any changes in either company ownership status and legal or regulatory representative contact for the Commission. The reporting requirements and bond agreement may be modified after one year’s administration by Commission Staff, if Staff determines appropriate company compliance during the previous twelve month period. Comm South will collect and remit to appropriate administrative agencies relevant excise taxes in support of various social programs, including enhanced 911, telecommunications relay services, and lifeline. FINDINGS THE COMMISSION FINDS: 1. Comm South Companies, Inc., is a public service company subject to the jurisdiction of this Commission under the provisions of chapter 80.36 R.C.W. 2. It appears, upon investigation, that the request for authority to provide local exchange telecommunications services should be approved. 3. 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 filing with the Commission of Comm South Companies, Inc., requesting authority for registration to 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. Prior to supplying local exchange telecommunications services to the public, Comm South Companies, Inc., shall file and receive permission and approval for an initial tariff from the Commission identical to the amended tariff filed in 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. Initial tariff must be filed with the Commission no later than thirty days from the date of this order. 4. Comm South Companies, Inc., shall collect advanced payments and deposits in compliance with WAC 480-121-040. Prior to supplying local exchange telecommunications services to the public, Comm South Companies, Inc., shall submit to the Commission an original satisfactory bond arrangement to protect customer monies. 5. In the event the company ceases operations, Comm South Companies, Inc., will within 48 hours provide to the insurer and the Commission lists outstanding account numbers, names, and balances and will provide refund information on the company’s toll free phone number for its customers for a minimum of six months. 6. Comm South Companies, Inc., will submit to the Commission, commencing on September 30, 1998, the following quarterly financial data: The number of Washington customers in total. The geographic location of those customers (either city or county). The number of Washington customers gained within the reporting period. The amount of advance payment dollars collected during the reporting period. Report the amount of advanced payments currently being held by the company. The number of reconnection fees paid during the reporting period. The amount of revenue generated from reconnection fees during the reporting period. The number of disconnections for nonpayment made during the reporting period. Any changes in either company ownership status and legal or regulatory representative contact for the Commission. 7. In this proceeding, the Commission in no way endorses the financial viability of applicant nor the investment quality of any securities it may issue. 8. As a telecommunications company providing service to the public in this state, Comm South Companies, 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, including but not limited to Chapter 480-120-WAC. DATED at Olympia, Washington, and effective this 15th day of June, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN, Secretary