Connecticut Public Utilities Regulatory Authority - Telcom Issues Final Decision Regarding Application of Common Point LLC for a CPCN

(Targeted News Service Via Acquire Media NewsEdge) NEW BRITAIN, Conn., Feb. 13 -- The Connecticut Public Utilities Regulatory Authority - Telcom issued the following final decision: DOCKET NO. 12-11-11 APPLICATION OF COMMON POINT LLC FOR A CPCN February 13, 2013 By the following Directors: Michael A. Caron John W. Betkoski, III Arthur H. House DECISION I.INTRODUCTION A.SUMMARY By this Decision, the Public Utilities Regulatory Authority finds that Common Point LLC meets the managerial, financial and technical criteria to operate as a reseller of intrastate interexchange and local exchange services in Connecticut and that its request for a Certificate of Public Convenience and Necessity is in the public interest. Accordingly, Common Point LLC's application for a Certificate of Public Convenience and Necessity is approved.

B.BACKGROUND OF THE PROCEEDING By Application received on November 6, 2012 (Application), filed pursuant to section 16-247g of the General Statutes of Connecticut (Conn. Gen. Stat.) and section 16-247c-3 of the Regulations of Connecticut State Agencies (Conn. Agencies Regs.), Common Point LLC (Common Point or Company) requested the approval of the Public Utilities Regulatory Authority (Authority or PURA) for a Certificate of Public Convenience and Necessity (CPCN) to provide intrastate interexchange and local exchange services in Connecticut. Application, Exhibit B-1.

C.CONDUCT OF THE PROCEEDING Upon review of the Application, the Authority determined that a hearing in this docket was not necessary and none was held.

D.PARTIES AND INTERVENORS The PURA recognized Common Point LLC, 3130 Pleasant Run, Springfield, Illinois 62711; and the Office of Consumer Counsel, Ten Franklin Square, New Britain, Connecticut 06051, as Parties to this proceeding.

II.PURA ANALYSIS A.FINANCIAL RESOURCES, MANAGERIAL ABILITY AND TECHNICAL COMPETENCY Pursuant to Conn. Gen. Stat. section16-247g, an applicant must obtain a CPCN to offer and provide intrastate telecommunications services. To grant a CPCN, the PURA must find that the Company "possesses and demonstrates adequate financial resources, managerial ability and technical competency to provide the proposed service." Conn. Gen. Stat. section16-247g(c).

In its Application, the Company requested that the PURA issue it a CPCN to provide local tandem access to local exchange carriers and wireless carriers throughout the entire state. The Company will not provide dial tone to end user customers, but will serve as the switching entity for tandem-switched transport that has billing and recording capabilities and is used to connect and switch trunk circuits among end offices, aggregation points, points of termination and to provide switched exchange access services.Application, B-1. Common Point has not yet determined who its undelying carriers will be.Id., Exhibit D-3.

Common Point is a privately-held, limited liability company formed on December 23, 2004, inSprinfield, Illinois, where its principal offices are located. Id., Exhibits C-1, A-7, A-8 and A-1. The Company registered with the Connecticut Secretary of State on August 24, 2012. Id., Exhibit A-10.The Company has not been denied authority to offer telecommunications services in any state and currently has authority to provide access services in 24 states. Id., Exhibit B-3. Common Point is not currently under investigation in any state for any violation of any consumer protection law or regulation. In addition, the Company has never been fined, sanctioned or penalized in any state for any such violations. Id., Exhibit A-13.

The Company provided evidence of the telecommunications related experience of its principals. Common Point's Chief Executive Officer has more than 20 years in the telecommunications industry and, as the conceptual founder of Common Point, developed the business case behind it and has directed all aspects of the Company's growth. Common Point's Chief Financial Officer is responsible for corporate finance, treasury, accounting, financial accounting and regulatory compliance. He joined an affiliated company of Common Point, ANPI, LLC, in 2000. The Company's Senior Director of Product and Access Services began his telecommunications career in 1993 and has experience in a number of areas, including wireless business planning, Voice over Internet Protocol deployment and technology showcases. Id., Exhibit E.

The Company provided a copy of its proposed tariffs and indicated that it will not maintain separate books and records for its Connecticut operations. Id., Exhibits B-1 and C-5. Common Point provided a copy of a sample bill. Id., Exhibit F-5. The Company will perform its own billing for services provided. Id., Exhibit F-6.

The Authority has reviewed Common Point's financial statements and qualifications and concludes that the Company possesses adequate financial resources to provide the proposed services. Id., Exhibits C-1 and C-2 For these reasons, the PURA finds that Common Point possesses and demonstrates adequate financial resources, managerial ability and technical competency to provide the proposed services in Connecticut as a reseller.

B.PUBLIC INTEREST CONSIDERATIONS Conn. Gen. Stat. section16-247a (a) sets forth the goals of the State in the provision of telecommunications services: (1)ensure the universal availability and accessibility of high quality, affordable telecommunications services to all residents and businesses in the state, (2) promote the development of effective competition as a means of providing customers with the widest possible choice of services, (3) utilize forms of regulation commensurate with the level of competition in the relevant telecommunications service market, (4) facilitate the efficient development and deployment of an advanced telecommunications infrastructure, including open networks with maximum interoperability and interconnectivity, (5) encourage shared use of existing facilities and cooperative development of new facilities where legally possible, and technically and economically feasible, and (6) ensure that providers of telecommunications services in the state provide high quality customer service and high quality technical service.

Common Point stated that approving the Application will further the state's telecommunications policy goals by expanding the availability of competitive services in Connecticut. Intrastate offering of services will provide customers with access to new technologies and will result in increased efficiencies and cost savings. In addition, according to the Company, approval of its Application will increase the incentives for other telecommunications providers to operate more efficiently. Id., Exhibit G-1.

In the opinion of the Authority, approval of the Application will enhance competition in the Connecticut marketplace by increasing incentives for other telecommunications service providers to operate more efficiently, offer more innovative services, reduce their prices, and improve their quality of service. The Authority also finds that Common Point's resale of the services of its underlying carriers will contribute to the efficient and cooperative use of the telecommunications infrastructure. Lastly, the Authority believes that the Company will ensure the delivery of high quality technical services. Therefore, the PURA finds that Common Point's offering of the proposed services furthers the goals of Conn. Gen. Stat. section16 247a(a) and is in the public interest.

C. POST-CERTIFICATION REPORTING REQUIREMENTS In the Decision dated March 15, 1995, in Docket No. 94-07-03, DPUC Review of Procedures Regarding the Certification of Telecommunications Companies and of Procedures Regarding Requests by Certified Telecommunications Companies to Expand Authority Granted in Certificates of Public Convenience and Necessity, at pages 29-30, the PURA set forth the post-certification filing requirements for certified telecommunications companies. Those requirements are as follows: * Pursuant to statute the PURA is required to report to the General Assembly on an annual basis regarding the telecommunications market in Connecticut. Conn. Gen. Stat. section 16-247i. To meet its statutory obligations, the PURA requires each authorized telecommunications provider to submit responses to the PURA's annual data requests on the basis of an October 1 - September 30 fiscal year; the PURA compiles the information at the conclusion of the third calendar quarter of each year.

* To evaluate the financial, managerial and technical adequacy of a certified provider periodically, as contemplated by Conn. Gen. Stat. section16-247g (d), the PURA requires each certified provider to submit on an annual basis a copy of the company's annual report, annual return or a summary financial statement.

* The following information filings are also required to be submitted to the PURA: --current listings of rates and charges for all certified services; --annual reports on the provider's Connecticut operations within 60 days of the close of its fiscal year, including at a minimum: the number of customers for each certified service, a description of physical changes in or additions to existing facilities expected for the next fiscal year and any changed uses of those facilities, and any changes in the information that was filed with the Department in the certification proceeding; -- copies of the Form 10-K (if required to file a Form 10-K with the Securities and Exchange Commission (SEC)) and any other informational filings at the time filed with the SEC.

Common Point will be subject to the above-detailed post-certification filing requirements, as are all certified providers in this state.

D.TARIFFS The Company filed proposed Connecticut-specific tariffs. Application, Exhibit B-1. In the Decision dated March 15, 1989, in Docket No. 87-08-24, DPUC Investigation into Authorization of Competition for Intrastate Interexchange Telecommunications Services Pursuant to Public Act 87-415, the PURA required that Connecticut local exchange companies and competitive service providers be subject to virtually the same tariff application and review procedures. The PURA finds that sufficient data has been presented during this proceeding to indicate that Common Point's rates and charges will exceed the respective costs of its services. Application, Exhibits C-1, C-2 and C-3. Therefore, the PURA finds that the Company has provided adequate cost justification for its proposed intrastate services' rates and charges and finds them to be acceptable as filed.

E.LIFELINE CREDIT AND TELECOMMUNICATIONS RELAY SERVICE FUNDING REQUIREMENTS In the Decision dated May 3, 1995, in Docket No. 94-07-09, DPUC Exploration of the Lifeline Program Policy Issues, the Authority concluded that funding mechanisms based on market share as measured by total intrastate and interstate revenues are the most equitable method of recovering telecommunications relay service (TRS) and Lifeline costs. As a telecommunications service provider operating in Connecticut, Common Point will be required to participate in TRS and Lifeline funding as discussed in the aforementioned Decisions, and will be so ordered below.

III.FINDINGS OF FACT 1.Common Point possesses and demonstrates adequate financial resources, managerial ability and technical competency to provide the proposed services.

2.Common Point's participation in the funding program to recover Connecticut's Lifeline and TRS costs is in keeping with PURA's commitment to further Universal Service.

IV.CONCLUSION AND ORDERS A.CONCLUSION Common Point's request to offer the proposed services in Connecticut on a resale basis will further the goals of Conn. Gen. Stat. section 16 247a(a), in compliance with Conn. Gen. Stat. section16-247g(d) and is in the public interest. The PURA hereby grants Common Point's request for a Certificate of Public Convenience and Necessity as a reseller of intrastate toll services.

B.ORDERS For the following Orders, submit one original and one copy of the required documentation to the Executive Secretary, Ten Franklin Square, New Britain, Connecticut 06051 and file an electronic version through the Department's website at www.ct.gov/pura. Submissions filed in compliance with the PURA Orders must be indentified by all three of the following: Docket Number, Title and Order Number.

1.Common Point shall file final tariffs consistent with this Decision no later than February 27, 2013. The effective date of the Company's tariffs shall be the date of this Decision.

2.Common Point shall comply with the post-certification filing requirements set forth in the PURA's March 15, 1995 Decision in Docket No. 94-07-03. Regarding the requirement to file with PURA annual reports on its Connecticut operations, Common Point shall do so no later than April 30th of each year, beginning in 2014. Such annual reports shall describe the status of its Connecticut operations and shall include at a minimum the following information: (a)The number of customers for each certified service; (b)number of lines subscribed; (c)total intrastate revenues; (d)intrastate minutes of use on a total service basis; (e)a description of physical changes in or additions to existing facilities expected for the next fiscal year and any changed uses of those facilities; and (f)any changes in the information, which was filed with the PURA in this certification proceeding.

3.Common Point shall participate in the Lifeline Credit and TRS funding program as described in Section II, E, above.

The Connecticut Department of Energy and Environmental Protection is an Affirmative Action/Equal Opportunity Employer that is committed to requirements of the Americans with Disabilities Act. Any person with a disability who may need information in an alternative format may contact the agency's ADA Coordinator at 860-424-3194 or at deep.hrmed@ct.gov. Any person with limited proficiency in English, who may need information in another language, may contact the agency's Title VI Coordinator at 860-424-3035 or at deep.aaoffice@ct.gov. Any person with a hearing impairment may call the State of Connecticut relay number - 711. Discrimination complaints may be filed with DEEP's Title VI Coordinator. Requests for accommodations must be made at least two weeks prior to any agency hearing, program or event.

DOCKET NO. 12-11-11 APPLICATION OF COMMON POINT LLC FOR A CPCN This Decision is adopted by the following Directors: Michael A. Caron John W. Betkoski, III Arthur H. House CERTIFICATE OF SERVICE The foregoing is a true and correct copy of the Decision issued by the Public Utilities Regulatory Authority, State of Connecticut, and was forwarded by Certified Mail to all parties of record in this proceeding on the date indicated.

February 15, 2013 Date Kimberley J. Santopietro Executive Secretary Department of Energy and Environmental Protection Public Utilities Regulatory Authority TNS mv45 130217-4209197 61MarlynVitin (c) 2013 Targeted News Service

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