DOCKET NO. UT-970659 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Petition ) DOCKET NO. UT-970659 of Tel-Save, Inc., d/b/a The Phone ) Company of New Hope ) for an Order Granting ) ORDER GRANTING AMENDMENT Amendment to Registration ) TO REGISTRATION to Provide Local Exchange ) APPLICATION AND Services and Authorizing ) AUTHORIZING THE Provision of Intraexchange ) PROVISION OF SWITCHED Telecommunications ) INTRAEXCHANGE Services ) TELECOMMUNICATIONS . . . . . . . . . . . . . . . . . . . . . . . . ) SERVICES. Tel-Save Incorporated, d/b/a The Phone Company of New Hope filed a petition to amend the company’s registration authority to provide facilities and resold local exchanges services. Tel-Save, Inc., (Tel-Save) proposes to offer telecommunications services as a reseller of the services of other local exchange carriers, including the incumbents. Tel-Save plans to install its own local exchange facilities at a later date, thereby operating as both a reseller and facilities based provider of local exchange telecommunications services. Tel-Save intends to offer service to business and residential customers throughout Washington State. The services will be an adjunct to the services that Tel-Save currently provides. Tel-Save was formed in 1989 in the State of Pennsylvania as a switchless reseller of AT&T long distance services to small and medium sized businesses. Tel-Save is currently authorized to provide interexchange telecommunications services in 48 states and in the process of applying for such authority in Alaska and Hawaii. Daviel Borislow is Chairman and CEO, headquartered in New Hope, Pennsylvania. The company is wholly owned by Tel-Save Holdings, Inc. Tel-Save’s proposed tariff is satisfactory and will mirror Local Exchange Company calling. Tel-Save has provided the information necessary to demonstrate Tel-Save possesses adequate financial resources and technical competence to provide the proposed services. Tel-Save 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. Tel-Save does not propose to collect advanced payments or deposits from customers. FINDINGS THE COMMISSION FINDS: 1. Tel-Save, is a public service company subject to the jurisdiction of this Commission under the provisions of chapter 80.36 R.C.W. 2. Tel-Save 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 Tel-Save, filed with the Commission requesting authority to amend the application for registration and provide intraexchange telecommunications services is hereby granted and shall become effective after the competitive classification is amended and final order 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, is satisfactory. Prior to supplying local exchange services to the public as a telecommunications company, Tel-Save shall file and receive permission and approval for an initial tariff from the Commission identical to the amended tariff filed in the application. The tariff shall bear an effective date not less than 30 days subsequent to the date of receipt by the Commission. 4. Tel-Save, shall not collect advanced payments or deposits without first showing that it has a satisfactory arrangement to protect customer monies as stated in WAC 480-121-040. DATED at Olympia, Washington, and effective this day of August, 1997. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION STEVE MCLELLAN, Secretary