| (a) Scope and purpose. This section applies to the
certification of a person or entity to provide local exchange telephone
service, basic local telecommunications service, and switched access
service as holders of certificates of operating authority (COAs) and
service provider certificates of operating authority (SPCOA) established
in the Public Utility Regulatory Act (PURA), Chapter 54, Subchapters
C and D.
(b) Definitions.
(1) Affiliate--An affiliate of, or a person affiliated
with, a specified person, is a person that directly or indirectly
through one or more intermediaries, controls, is controlled by, or
is under common control with the person specified.
(2) Annual Report--A report that includes, at a minimum,
the certificate holder's primary business telephone number, toll-free
customer service number, email address, authorized company contact,
regulatory contact, complaint contact, primary and secondary emergency
contacts and operation and policy migration contacts which is submitted
to the commission every calendar year. Each provided contact must
include the contact's company title.
(3) Application - An application for a new COA or SPCOA
certificate or an amendment to an existing COA or SPCOA certificate.
(4) Control--The term control, including the terms
controlling, controlled by and under common control with, means the
power, either directly or indirectly through one or more affiliates,
to direct or cause the direction of the management or policies of
a person, whether through ownership of voting securities, by contract,
or otherwise.
(5) Executive officer--When used in reference to a
person, means its president or chief executive officer, a vice-president
serving as its chief financial officer, or a vice-president serving
as its chief accounting officer, or any other officer of the person
who performs any of the foregoing functions for the person.
(6) Facilities-based certification--Certification that
authorizes the certificate holder to provide service using its own
equipment, unbundled network elements, or E9-1-1 database management
associated with selective routing services.
(7) Permanent employee--An individual that is fully
integrated into the certificate holder's business. A consultant is
not a permanent employee.
(8) Person--An individual and any business entity,
including a limited liability company, a partnership of two or more
persons having a joint or common interest, a mutual or cooperative
association, but does not include a municipal corporation.
(9) Principal--A person or member of a group of persons
that controls the person in question.
(10) Shareholder--As context indicates and the applicable
business entity requires, the legal or beneficial owner of any of
the equity in a business entity, including , stockholders of corporations,
members of limited liability companies and partners of partnerships.
(c) Ineligibility for certification.
(1) An applicant is ineligible for a COA or SPCOA if
the applicant is a municipality.
(2) An applicant is ineligible for a COA if the applicant
has not created a proper separation of business operations between
itself and an affiliated holder of a certificate of convenience and
necessity, as required by PURA §54.102.
(3) An applicant is ineligible for an SPCOA if the
applicant, and affiliates of the applicant, in the aggregate have
more than 6.0% of the total intrastate switched access minutes of
use as measured for the most recent 12-month period.
(4) The commission will not grant an SPCOA to a holder
of a:
(A) CCN for the same territory; or
(B) COA for the same territory.
(d) Application for COA or SPCOA certification. A person
or entity is prohibited from providing local exchange telephone service,
basic local telecommunications service, or switched access service
unless the person or entity obtains a certificate of convenience and
necessity in accordance with §26.101 of this title (relating
to Certificate of Convenience and Necessity Criteria), or a certificate
of operating authority or a service provider certificate of operating
authority in accordance with this section.
(1) An applicant for COA or SPCOA certification must
demonstrate the capability of complying with this section. An applicant
who obtains a COA or SPCOA, or who receives a certificate under this
section must maintain compliance with this section.
(2) An application must be made on the form prescribed
by the commission, verified by oath or affirmation, and signed by
an executive officer of the applicant.
(3) Except where good cause exists to extend the time
for review, the presiding officer must issue an order finding whether
the application is deficient or complete within 20 days of filing.
Deficient applications, including those without necessary supporting
documentation, will be rejected without prejudice.
(4) While an application is pending, an applicant must
inform the commission of any material change in the information provided
in the application within five working days of any such change.
(5) Except where good cause exists to extend the time
for review, the presiding officer will enter an order approving, rejecting,
or approving with modifications, an application within 60 days of
the filing of the application.
(6) While an application is pending, an applicant must
respond to any request for information from commission staff within
ten days after receipt of the request by the applicant.
(e) Standards for granting certification to COA and
SPCOA applicants. The commission may grant a COA or SPCOA to an applicant
that demonstrates eligibility in accordance with subsection (c) of
this section, has the technical and financial qualifications required
by this section, has the ability to meet the commission's quality
of service requirements to the extent required by PURA and this title,
and the applicant and its executive officers and principals do not
have a history of violations of rules or misconduct such that granting
the application would be inconsistent with the public interest. In
determining whether to grant a certificate, the commission will consider
whether the applicant has satisfactorily provided the information
required under this section in the application.
(f) Financial requirements. To obtain COA or SPCOA
certification, an applicant must demonstrate shareholders' equity
as required by this subsection.
(1) To obtain facilities-based certification, an applicant
must demonstrate shareholders' equity of not less than $100,000. To
obtain resale-only or data-only certification, an applicant must demonstrate
shareholders' equity of not less than $25,000.
(2) For the period beginning on the date of certification
and ending one year after the date of certification, the certificate
holder must not make any distribution or other payment to any shareholders
or affiliates if, after giving effect to the distribution or other
payment, the shareholders' equity of the certificate holder is less
than the amount required by this paragraph. The restriction on distributions
or other payments contained in this paragraph includes dividend distributions,
redemptions and repurchases of equity securities, loans, or loan repayments
to shareholders or affiliates.
(3) Shareholders' equity must be documented by an audited
or unaudited balance sheet for the applicant's most recent quarter.
The audited balance sheet must include the independent auditor's report.
The unaudited balance sheet must include a sworn statement from an
executive officer of the applicant attesting to the accuracy, in all
material respects, of the information provided in the unaudited balance
sheet.
(g) Technical and managerial requirements. To obtain
COA or SPCOA certification, an applicant must have and maintain the
technical and managerial resources and ability to provide continuous
and reliable service in accordance with PURA, commission rules, and
other applicable laws.
(1) To obtain facilities-based certification, an applicant
must have principals, consultants or permanent employees in managerial
positions whose combined experience in the telecommunications industry
equals or exceeds five years. To obtain resale-only or data-only certification,
an applicant must have principals or permanent employees in managerial
positions whose combined experience in the telecommunications industry
equals or exceeds one year.
(2) To support technical qualification, an applicant
must provide the following documentation: the name, title, number
of years of telecommunications or related experience, and a description
of the experience for each principal, consultant and/or permanent
employee that the applicant will rely upon to demonstrate the experience
required by paragraph (1) of this subsection.
(3) An applicant must include the following in its
application for COA or SPCOA certification:
Cont'd... |
