BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application of  )
      ) 
A C S TEL COM, INC.,   ) DOCKET UT- 971616
      )
for an Order Authorizing the   )   
Registration of Applicant       ) AUTHORIZING
as a Telecommunications Company   ) REGISTRATION
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )


  On November 7, 1997, A C S TEL COM, INC., (A C S) filed an application for 
registration as a telecommunications company pursuant to RCW 80.36.350.  
Applicant proposes to offer resold direct dialed long distance and debit card 
services to the public.

  A C S is a New York corporation, headquartered in Rockville Center, New York, 
and is wholly-owned by Chander Khurana and Sanjay Khurana.  Rates, terms and 
conditions set forth in the proposed tariff, filed as Exhibit G of the 
application, are structured to be competitive with other telecommunications 
companies in relevant markets. 

  A C S has provided information showing that it meets the requirements of 
RCW 80.36.350.  The nature of the debit card service implies A C S proposes to 
collect advance payments from customers.  Pursuant to statutes and rules 
governing registration applications and advance payment proposals, A C S has 
proposed a satisfactory bond agreement for protection of those advance 
payments.  Initially, the bond agreement will be for $5,000 and will increase 
proportionally as customer base increases.  If A C S ceases operations, A C S 
will provide the insurer and the Commission lists of outstanding account 
numbers and balances within 48 hours.

  ACS 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 June 30 1998, and quarterly 
thereafter,  ACS 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 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, ACS 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.

  A C S 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 A C 
S goes out of business, it will provide refund information on the company's 800 
phone number for its customers.  A C S will provide a free call detail report 
to customers upon request.


      FINDINGS

  THE COMMISSION FINDS:

Docket UT-971616          Page 1
  1. A C S TEL COM, INC., filed an application for registration as a 
telecommunications company pursuant to the provisions of RCW 80.36.350 and the 
rules and regulations of the Commission.

  2. As to form, the application filed by A C S TEL COM, INC., as supplemented 
and amended, meets the requirements of RCW 80.36.350 and the rules and 
regulations of the Commission adopted pursuant thereto.

  3. The registration of A C S TEL COM, INC.,  as a telecommunications company 
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.

        
O R D E R

  THE COMMISSION ORDERS:
  
  1. After the effective date of this order and subject to the conditions 
contained in this Order, the Commission approves the application of A C S TEL 
COM, INC., filed pursuant to RCW 80.36.350 for registration as a 
telecommunications company to provide service to the public in this state.

  2. The proposed tariff as filed on November 7, 1997, supplemented and amended 
in Exhibit G, attached to the application, is satisfactory.  Within 30 days 
from the effective date of this Order and prior to supplying service to the 
public as a telecommunications company, A C S TEL COM, INC., shall file an 
initial tariff with the Commission identical to the tariff contained in the 
amended Exhibit G of the application.  The tariff shall bear an effective date 
not less than 30 days subsequent to the date the initial tariff is received by 
the Commission. Failure to file an initial tariff within 30 days from the 
effective date of this Order and prior to supplying service to the public may 
result in the Commission taking action to cancel A C S TEL COM, INC.,'s 
registration as a telecommunications company in the state of Washington. 

  3. Registration of A C S TEL COM, INC., as a telecommunications company shall 
not be construed as an endorsement of financial viability or of the investment 
quality of any securities it may issue.

  4. As a telecommunications company providing service to the public in this 
state, A C S TEL COM, 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.

  5. A C S TEL COM, INC., filed with the Commission a satisfactory bond 
agreement in the amount of $5,000.  As part of the bond agreement and in the 
event the company ceases operations, A C S TEL COM, INC., will within 48 hours 
provide to the bank and the Commission lists of outstanding account numbers and 
balances. 

  6. A C S TEL COM, 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.

  7.   Within 15 days after June 30, 1998,  and quarterly thereafter, ACS TEL 
COM, INC., shall 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 reporting period.  Statements shall continue to be filed 
within 15 days after each 3-month period until Commission staff informs 
applicant such reports are no longer required. Based upon the information in 
the reports ACS TEL COM, INC., shall 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 completion of one year's 
administration of the bond agreement, the reporting requirement may be modified 
to a semi-annual level if staff determines that the company has maintained a 
sufficient level in the bond agreement during the previous 12-month period.

  8. A C S TEL COM, INC., shall state that there is a money-back guarantee on 
the debit cards and provide a statement warning customers to safeguard their 
cards.

  9. In the event the company ceases operations, A C S TEL COM, INC., will 
provide refund information on the company's 800 phone number for its customers 
for a minimum of six months.

  10. A C S TEL COM, INC., will provide a free call detail report to customers 
upon request.

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



      PAUL CURL, Acting Secretary