DE 97-254 DIGITAL SIGNAL COMMUNICATIONS INC Petition for Authority to Provide Local Telecommunications Services Order Nisi Granting Authorization O R D E R N O. 22,825 January 6, 1998 On December 18, 1997, Digital Signal Communications Inc. (DSCI) filed with the New Hampshire Public Utilities Commission (Commission) a petition for authority to provide switched and non-switched local exchange telecommunications services, pursuant to the policy goals set by the New Hampshire Legislature in RSA 374:22-g, effective July 23, 1995. The Legislature directed the Commission to adopt rules on or before December 31, 1996, to enforce the provisions of RSA 374:22-g. Effective December 4, 1996, the Commission adopted N.H. Admin. Rules, Puc Chapter 1300 which governs the petition of applicants to become competitive local exchange carriers (CLECs). Pursuant to Puc Chapter 1300, an applicant's petition for certification shall be granted when the Commission finds that (1) all information listed in Puc 1304.02 has been provided to the Commission; (2) the applicant meets standards for financial resources, managerial qualifications, and technical competence; and, (3) certification for the particular geographic area requested is in the public good. The Commission Staff (Staff) has reviewed DSCI's petition for compliance with these standards. Staff reports that they have provided all the information required by Puc 1304.02. The information provided supports DSCI's assertion of financial resources, managerial qualifications, and technical competence sufficient to meet the standards set out in Puc 1304.01(b), (e), (f), and (g). Staff, therefore, recommends approval of DSCI as a New Hampshire CLEC. DSCI has provided a sworn statement and request for waiver of the surety bond requirement in Puc 1304.02(b) stating that they do not require advance payments or deposits of their customers. Staff recommends granting the waiver. We find that DSCI has satisfied the requirements of Puc 1304.01(a)(1) and (2). In addition, we find that certification of DSCI in its intended service area, Bell Atlantic's current service area, is in the public good, thus meeting the requirement of Puc 1304.01(a)(3). In making this finding, as directed by RSA 374:22-g, we have considered the interests of competition, fairness, economic efficiency, universal service, carrier of last resort, the incumbent's opportunity to realize a reasonable return on its investment, and recovery by the incumbent of expenses incurred. This finding is further supported by the Telecommunications Act of 1996 (TAct). Because DSCI has satisfied the requirements of Puc 1304.01(a), we will grant certification. As part of its application, DSCI agreed to concur with Bell Atlantic's present and future rates for intraLATA switched access or to charge a lower rate. If, at any point, DSCI seeks to exceed Bell Atlantic's access rates it shall first contact the Staff to review the proposal. We will monitor access rates as the intraLATA toll and local exchange markets develop. CLECs charging higher access rates than they reciprocally pay Bell Atlantic could inhibit intraLATA toll competition which would call into question Section 253 of the TAct. Based upon the foregoing, it is hereby ORDERED NISI, that DSCI's petition for authority to provide switched and non-switched intrastate local exchange telecommunications services in the service territory of Bell Atlantic, is GRANTED, subject, inter alia to the requirements of Puc 1304.03; and it is FURTHER ORDERED, that request for waiver of the surety bond requirement per Puc 1304.02(b) is granted; and it is FURTHER ORDERED, that the Petitioner shall cause a copy of this Order Nisi to be published once in a statewide newspaper of general circulation, such publication to be no later than January 13, 1998 and to be documented by affidavit filed with this office on or before January 20, 1998; and it is FURTHER ORDERED, that all persons interested in responding to this Order Nisi shall submit their comments or file a written request for a hearing on this matter before the Commission no later than January 27, 1998; and it is FURTHER ORDERED, that any party interested in responding to such comments or request for hearing shall do so no later than February 3, 1998; and it is FURTHER ORDERED, that this Order Nisi shall be effective February 5, 1998, unless the Commission provides otherwise in a supplemental order issued prior to the effective date; and it is FURTHER ORDERED, that the Petitioner shall file, ten days prior to commencing service, a rate schedule including the name, description and price of each service, with the Commission in accordance with N.H. Admin. Rules, Puc 1304.03(b). By order of the Public Utilities Commission of New Hampshire this sixth day of January, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director & Secretary