DOCKET UT-980035 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Supplemental Application ) DOCKET UT-950734 of Pantel Communications, Inc., ) For an Order Amending Registration Authority ) To Include Debit Card Services as a ) ORDER AMENDING Telecommunications Service ) AUTHORITY TO INCLUDE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) DEBIT CARD SERVICES On July 21, 1998, Pantel Communications, Inc., (Pantel) filed a supplemental application to amend its authority as a telecommunications company to include debit card service pursuant to RCW 80.36.350 and Chapter 480-121 WAC. Pantel was granted authority to provide long distance services in Docket UT-950734. The nature of the debit card service implies that Pantel proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, Pantel has proposed a satisfactory bond agreement for protection of those advance payments. Initially, the bond agreement will be for $1,000 and will increase proportionally as customer base increases. If Pantel ceases operations, Pantel will provide the insurer and the Commission lists of outstanding account numbers and balances within 48 hours. Pantel will limit the denomination of debit cards purchased by residential customers to not more than $50 and debit cards purchased by business customers to not more than $200. Within 15 days after December 31, 1998, and quarterly thereafter, Pantel will be required to submit to the Commission a report containing the following information specific to State of Washington operations: (a) total outstanding debit card balance at the beginning of the reporting period (b) dollar amount of debit cards sold during the reporting period (c) depleted usage of debit cards during the reporting period and (d) total outstanding debit card balance at the end of the DOCKET NO. UT-980061 PAGE 3 reporting period. Statements shall continue to be filed within 15 days after each 3-month period thereafter until Commission staff informs applicant such reports are no longer required. Based upon this information, Pantel will adjust the amount of the bond to assure compliance with WAC 480-121-040. In addition, Commission staff may request current company financial information. 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. Pantel 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 Pantel goes out of business, it will provide refund information on the company's 800 phone number for its customers. Pantel will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. Pantel Communications, Inc., filed a supplemental application pursuant to the provisions of Chapter 480-121 WAC and the rules and regulations of the Commission for an order amending Pantel Communications, Inc.'s authority as a telecommunications company to provide debit card service. 2. The supplemental application filed by Pantel Communications, Inc., to amend its authorization to provide debit card service as a telecommunications company is not inconsistent with the public interest. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this order and subject to the conditions hereof, the supplemental application of Pantel Communications, Inc., filed with the Commission pursuant to the provisions of Chapter 480-121 WAC requesting an order amending authorization for registration as a telecommunications company to provide debit card service to the public in this state is approved. 2. Pantel Communications, Inc., filed with the Commission a satisfactory bond agreement in the amount of $1,000. As part of the bond agreement and in the event the company ceases operations, Pantel Communications, Inc., will within 48 hours provide to the insurer and the Commission lists of outstanding account numbers and balances. 3. Pantel Communications, 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. 4. Within 15 days after December 31, 1998, and quarterly thereafter, Pantel Communications, Inc., will be required to submit to the Commission a report containing the following information specific to State of Washington operations: (a) total outstanding debit card balance at the beginning of the reporting period (b) dollar amount of debit cards sold during the reporting period (c) depleted usage of debit cards during the reporting period and (d) total outstanding debit card balance at the end of the DOCKET UT-950734 PAGE 1 reporting period. Statements shall continue to be filed within 15 days after each 3-month period thereafter until Commission staff informs applicant such reports are no longer required. Based upon this information, Pantel Communications, Inc., will adjust the amount of the bond to assure compliance with WAC 480-121-040. In addition, Commission staff may request current company financial information. 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. 5. Pantel Communications, Inc., shall state that there is a money-back guarantee on the debit cards and provide a statement warning customers to safeguard their cards. 6. In the event the company ceases operations, Pantel Communications, Inc., will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 7. Pantel Communications, Inc., will provide a free call detail report to customers upon request. 8. Pantel Communications, Inc., filed an intrastate services tariff WN U-2 in Exhibit G, attached to the supplemental application, that replaces in its entirety WN U-1 currently on file with the Commission. Pantel Communications, Inc.'s tariff WN U-2 is approved as filed. 9. As a telecommunications company providing service to the public in this state, Pantel Communications, 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 12th day of August, 1998. CAROLE J. WASHBURN, Secretary