DOCKET UT-971522 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) DOCKET UT-971522 of NEW MEDIA TELECOMMUNICATIONS, ) INC., for an Order Authorizing ) the Registration of Applicant ) AUTHORIZING as a Telecommunications Company ) REGISTRATION . . . . . . . . . . . . . . . . . .) On October 16, 1997, New Media Telecommunications, Inc., 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. New Media Telecommunications, Inc., is a Delaware corporation, headquartered in LaJolla, California. The corporation is wholly owned by numerous individuals. New Media Telecommunications, Inc., has provided information showing that it possesses adequate financial resources, and technical competence to provide the proposed services. The nature of the debit card service implies New Media Telecommunications, Inc., proposes to collect advance payments from customers. Pursuant to statutes and rules governing registration applications and advance payment proposals, New Media Telecommunications, Inc., has proposed a satisfactory escrow account for protection of those advance payments. Initially, the escrow account will have $5,000 deposited and will increase proportionally as customer base increases. If New Media Telecommunications, Inc., ceases operations, New Media Telecommunications, Inc., will provide the bank and the Commission lists of outstanding account numbers and balances within 48 hours. New Media Telecommunications, Inc., will limit the denomination size of debit cards to not more than $50 to residential customers and $200 to business customers. New Media Telecommunications, Inc., will give the Commission quarterly reports listing total outstanding debit card balances, dollar amount of debit cards sold, depleted usage of debit cards sold, and current company financial information. New Media Telecommunications, Inc., will adjust the amount of the escrow account based on this data. After one year's administration of the escrow account, the reporting requirement may be modified to a semi-annual level if the company has maintained adequate levels in the escrow account during the previous 12-month period. New Media Telecommunications, Inc., 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 New Media Telecommunications, Inc., goes out of business, it will provide refund information on the company's 800 phone number for its customers. New Media Telecommunications, Inc., will provide a free call detail report to customers upon request. FINDINGS THE COMMISSION FINDS: 1. New Media Telecommunications, Inc., filed an application pursuant to the provisions of RCW 80.36.350 and the rules and regulations of the Commission for an order approving its application for registration as a telecommunications company. 2. As to form, the application filed herein, 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 New Media Telecommunications, 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 hereof, the application of New Media Telecommunications, Inc., filed with the Commission pursuant to the provisions of RCW 80.36.350 requesting an order authorizing registration as a telecommunications company to provide service to the public in this state is approved. 2. The proposed tariff as filed on October 16, 1997, and amended in Exhibit G, attached to the application, is satisfactory. Prior to supplying service to the public as a telecommunications company, New Media Telecommunications, Inc., shall file an initial tariff with the Commission identical to the amended 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. 3. Prior to the effective date of the initial tariff, New Media Telecommunications, Inc., shall submit to the Commission a satisfactory escrow account in the amount of $5,000. As part of the escrow account and in the event the company ceases operations, New Media Telecommunications, Inc., will within 48 hours provide to the bank and the Commission lists of outstanding account numbers and balances. 4. New Media Telecommunications, Inc., will limit the amount of debit cards to be purchased to not more than $50 increments for residential customers and $200 for business customers. 5. New Media Telecommunications, Inc., will submit to the Commission quarterly financial data listing the total outstanding debit card balances, dollar amount of debit cards sold, depleted usage of debit cards sold, and current company financial information determined by the Commission. New Media Telecommunications, Inc., will adjust the amount held in escrow based on this data. After completion of one year's administration of the escrow account, the reporting requirement may be modified to a semi-annual level if staff determines that the company has maintained a sufficient level in the escrow account during the previous 12-month period. 6. New Media Telecommunications, Inc., shall state that there is a money-back guarantee on the debit cards and provide a statement warning customers to safeguard their cards. 7. In the event the company ceases operations, New Media Telecommunications, Inc., will provide refund information on the company's 800 phone number for its customers for a minimum of six months. 8. New Media Telecommunications, Inc., will provide a free call detail report to customers upon request. 9. Registration of New Media Telecommunications, Inc., 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. 10. As a telecommunications company providing service to the public in this state, New Media Telecommunications, 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 28th day of January, 1998. PAUL CURL, Acting Secretary