BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Supplemental ) Application and Petition of ) NET-tel Corporation, ) for an Amendment to its Registration ) as a Telecommunications Company ) and Classification as a Competitive ) Telecommunications Company ) . . . . . . . . . . . . . . . . . . . . . . . . . FIRST SUPPLEMENTAL ORDER AMENDING REGISTRATION AND COMPETITIVE CLASSIFICATION, AND APPROVING PRICE LIST, TO INCLUDE PROVISION OF LOCAL EXCHANGE SERVICES BACKGROUND By supplemental application and petition filed May 12, 1999, in Docket UT-980433, NET-tel Corporation (“NET-tel”) seeks amendment of its registration as a telecommunications company and its classification as a competitive telecommunications company, and approval of its proposed price list, pursuant to RCW 80.36.350 and 80.36.320. The supplemental application for registration and petition for competitive classification, and proposed price list, were brought before the Commission at its regularly scheduled open public meeting of June 9, 1999. MEMORANDUM l. Application and Petition NET-tel is a Florida corporation, headquartered in Washington, D.C.. NET-tel proposes an amendment to its registration to authorize the provision of switched intraexchange and interexchange telecommunication services. NET-tel has provided information to show that it meets the requirements of RCW 80.36.350 with respect to the proposed amendment. In support of its petition for competitive classification, NET-tel asserts that its services compete with other switched intraexchange and interexchange carriers’ telecommunication services. NET-tel states that there are readily available, equivalent, alternate providers of the services it proposes to offer, and that there are no captive customers of its services. The rates, terms, and conditions set forth in the proposed price list are structured similarly to the provisions filed by other switched intraexchange and interDOCKET UT-# PAGE 2 exchange telecommunication service providers for calls placed in the relevant market. NET-tel does not propose to collect advance payments or deposits from customers. In conjunction with classification, the Company is seeking waiver of: RCW 80.04.300 Budgets to be filed by companies--Supplementary budgets; RCW 80.04.310 Commission’s control over expenditures; RCW 80.04.320 Budget rules; RCW 80.04.330 Effect of unauthorized expenditure--Emergencies; RCW 80.04.360 Earnings in excess of reasonable rate-Consideration In fixing rates; RCW 80.04.460 Investigation of accidents; RCW 80.04.520 Lease of utility facilities; RCW 80.36.100 Tariff schedules to be filed and open to public; RCW 80.36.110 Tariff changes--Statutory notice--Exception; Chapter 80.08 RCW Securities (except RCW 80.08.140); Chapter 80.12 RCW Transfers of Property; Chapter 80.16 RCW Affiliated interests; Chapter 480-80 WAC Tariffs; Chapter 480-140 WAC Budgets; Chapter 480-143 WAC Transfers of Property; Chapter 480-146 WAC Securities and affiliated interests; WAC 480-120-026 Tariffs; WAC 480-120-031 Accounting; WAC 480-120-032 Accounting-Political information and political education activities; WAC 480-120-036 Finance--Securities, affiliated interests, transfer of property; WAC 480-120-046 Services offered and; WAC 480-120-131 Reports of accidents; Rules invoked include WAC 480-120-022, WAC 480-120-023, WAC 480-120-024, and WAC 480-120-025. Statutes invoked include RCW 80.36.320, and RCW 80.36.350. The ultimate issues are whether the proposed amendments to NET-tel’s supplemental registration application and competitive classification petition, and proposed priced list, should be approved. ll. Commission Discussion and Decision The Commission has carefully reviewed the supplemental application and petition of NET-tel in this matter. The Commission finds that the supplemental applica-tion for authority to provide switched intraexchange and interexchange telecommunica- tion services is consistent with the provisions of RCW 80.36.350 and Chapter 480-121 WAC. Further, the Commission finds that the supplemental petition for classification as a telecommunications company to provide these services is consistent with the provi- sions of RCW 80.36.320 and WAC 480-120-022, -023, and -024; and the proposed price list is consistent with RCW 80.36.320(2) and WAC 480-120-027. The Commission should grant the supplemental application and petition and approve the proposed price list. FINDINGS OF FACT 1. NET-tel filed a supplemental application and petition to amend its registration as a telecommunications company and its classification as a competitive telecommunications company, pursuant to the provisions of RCW 80.36.350 and 80.36.320, to provide switched intraexchange and interexchange telecommunication services. 2. As to form, the application and petition meet the requirements of RCW 80.36.350 and 80.36.320, and comply with the Commission’s rules and regulations. 3. The amendment to the registration of NET-tel to be authorized for the provision of switched intraexchange and interexchange telecommunication services 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. 5. Alternative providers of service to that of NET-tel include, but are not limited to, AT&T Communications of the Pacific Northwest, Inc., GTE Northwest Incorporated, MCIWorldCom, Inc., and U S WEST Communications, Inc. All services are fully available from alternative providers in the relevant market. 6. The relevant market is the state of Washington. 7. NET-tel has no captive customer base. 8. The services to be offered are subject to effective competition. 9. NET-tel should be permitted to provide services under its proposed price list. 10. NET-tel requested waivers of certain laws and rules relating to telecommunications services. The laws and rules for which waivers should be granted are listed in Appendix A, incorporated by this reference and made a part of this Order. CONCLUSIONS OF LAW 1. The Washington Utilities and Transportation Commission has jurisdiction over the subject matter of this registration application and classification petition and NET-tel. 2. NET-tel should be authorized to provide switched intraexchange and interexchange telecommunication services pursuant to RCW 80.36.350 and should be classified as a competitive telecommunications company pursuant to RCW 80.36.320. 3. NET-tel should be permitted to provide services under price lists pursuant to RCW 80.36.320 (2). These services shall not include alternate operator services as defined in WAC 480-120-141. 4. NET-tel should be granted waivers of the laws and rules listed in Appendix A; waivers of laws and rules requested that are not included in Appendix A should be denied. ORDER THE COMMISSION ORDERS: 1. After the effective date of this Order and subject to any conditions imposed, the supplemental application of NET-tel Corporation, requesting an Order amending its registration as a telecommunications company to provide switched intraexchange and interexchange telecommunication services to the public in this state is approved. 2. The petition of NET-tel Corporation, for classification as a competitive telecommunications company, in conjunction with the amendment of its registration, is approved; waiver of the laws and rules listed in the attached Appendix A is granted. 3. The proposed price list of NET-tel Corporation, for rates and services is approved. 4. Registration of NET-tel Corporation, 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. 5. As a telecommunications company providing service to the public in this state, NET-tel Corporation is subject to the jurisdiction of this Commission under the provisions of Title 80 RCW and all rules and regulations adopted by the Commission. 6. NET-tel Corporation, is not authorized to collect advance payments or deposits unless it first demonstrates to the Commission’s satisfaction that it has an arrangement to protect customer monies as provided in WAC 480-121-040. 7. NET-tel Corporation, is authorized to offer rates and services pursuant to price list in the format prescribed by the Commission. The price list approved in this proceeding, and subsequent changes to that price list, become effective only after ten days notice to the Commission and to customers. In the event of a price list reduction or of a change in terms and conditions which do not have rate impact, personal notice to customers is not required. To comply with the statutory notice requirement, NET-tel Corporation may publish notice of price reductions or changes in terms and conditions of service that do not have rate impact by a display advertisement in such newspaper(s) as are geographically situated to be circulated over the Company's service area. 8. NET-tel Corporation is not authorized to provide alternate operator services as defined in WAC 480-120-141. 9. The Commission retains jurisdiction over the subject matter and the Company to effectuate the terms of this Order. DATED at Olympia, Washington, and effective this 9th day of June, 1999. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN, Secretary APPENDIX A RCW 80.04.300 Budgets to be filed by companies--Supplementary budgets RCW 80.04.310 Commission’s control over expenditures RCW 80.04.320 Budget rules RCW 80.04.330 Effect of unauthorized expenditure--Emergencies RCW 80.04.360 Earnings in excess of reasonable rate--Consideration in fixing rates RCW 80.04.460 Investigation of accidents RCW 80.04.520 Lease of utility facilities RCW 80.36.100 Tariff schedules to be filed and open to public RCW 80.36.110 Tariff changes--Statutory notice--Exception Chapter 80.08 RCW Securities (except RCW 80.08.140, State not obligated) Chapter 80.12 RCW Transfers of Property Chapter 80.16 RCW Affiliated interests Chapter 480-80 WAC Tariffs Chapter 480-140 WAC Budgets Chapter 480-143 WAC Transfers of Property Chapter 480-146 WAC Securities and affiliated interests WAC 480-120-026 Tariffs WAC 480-120-031 Accounting WAC 480-120-032 Accounting-Political information and political education activities WAC 480-120-036 Finance--Securities, affiliated interests, transfer of property WAC 480-120-046 Services offered WAC 480-120-131 Reports of accidents