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BEFORE THE PUBLIC SERVICE COMMISSION OF SOUTHCAROLINA DOCKET NO. 2000-414-C ORDER NO. 2000-988 DECEMBER 8, 2000 IN RE: Application of IDS Telcom, LLC. for a Certificate of Public Convenience and Necessity to Provide Resold and Facilities- Based Local Exchange and Interexchange Telecommunications Services within the State of South Carolina. ) ORDER ) GRANTING ) CERTIFICATE FOR ) LOCAL AND ) INTEREXCHANGE AUTHORITY This matter comes before the Public Service Commission of South Carolina (the "Commission" ) by way of the Application of IDS Telcom, LLC ("IDS Telcom" or the "Company" ) requesting a Certificate of Public Convenience and Necessity authorizing it to provide resold and facilities-based local exchange and intrastate interexchange telecommunications services within the State of South Carolina. The Company's Application was filed pursuant to S. C. Code Ann. )58-9-280(B) (Supp. 1999) and the Regulations of the Public Service Commission of South Carolina. By letter, the Commission's Executive Director instructed IDS Telcom to publish, one time, a prepared Notice of Filing in newspapers of general circulation in the areas affected by the Application. The proposed Notice of Filing was to inform interested parties of the manner and time in which to file the appropriate pleadings for participation in the proceedings. IDS Telcom complied with this instruction and provided the Commission with proof of publication of the Notice of Filing. INRE: BEFORE THE PUBLIC SERVICECOMMISSIONOF SOUTHCAROLINA DOCKET NO.2000-414-C- ORDERNO.2000-988 DECEMBER8, 2000 ApplicationofIDS Telcom,LLC. for a CertificateofPublicConvenienceand Necessityto ProvideResoldandFacilities- BasedLocalExchangeandInterexchange Telecommunications Serviceswithin theState of SouthCarolina. ) ORDER V!]_ ) GRANTING ) CERTIFICATEFOR ) LOCAL AND ) 1NTEREXCHANGE AUTHORITY ThismattercomesbeforethePublicServiceCommissionof SouthCarolina(the "Commission")by way of the Applicationof IDS Telcom,LLC ("IDS Telcom" or'the "Company")requestingaCertificateofPublicConvenienceandNecessityauthorizingit to provideresoldandfacilities-based localexchangeandintrastateinterexchange telecommunicationserviceswithin theStateof SouthCarolina. TheCompany's Applicationwasfiledpursuantto S.C.CodeAnn.§58-9-280(B)(Supp.1999)andthe RegulationsofthePublicServiceCommissionof SouthCarolina. By letter,theCommission'sExecutiveDirectorinstructedIDS Telcomto publish, onetime,apreparedNoticeof Filing in newspapersof generalcirculationin theareas affectedby theApplication. TheproposedNoticeofFiling wasto inform interested partiesof themannerandtimein which to file theappropriatepleadingsfor'participation in theproceedings.IDS Telcomcompliedwith thisinstructionandprovidedthe Commissionwith proofof publicationof theNoticeof Filing.

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Page 1: BEFORE THE PUBLIC SERVICECOMMISSIONOF

BEFORE

THE PUBLIC SERVICE COMMISSION OF

SOUTHCAROLINA

DOCKET NO. 2000-414-C —ORDER NO. 2000-988

DECEMBER 8, 2000

IN RE: Application of IDS Telcom, LLC. for aCertificate of Public Convenience andNecessity to Provide Resold and Facilities-Based Local Exchange and InterexchangeTelecommunications Services within the Stateof South Carolina.

) ORDER

) GRANTING

) CERTIFICATE FOR) LOCAL AND

) INTEREXCHANGEAUTHORITY

This matter comes before the Public Service Commission of South Carolina (the

"Commission" ) by way of the Application of IDS Telcom, LLC ("IDS Telcom" or the

"Company" ) requesting a Certificate of Public Convenience and Necessity authorizing it

to provide resold and facilities-based local exchange and intrastate interexchange

telecommunications services within the State of South Carolina. The Company's

Application was filed pursuant to S.C. Code Ann. )58-9-280(B) (Supp. 1999) and the

Regulations of the Public Service Commission of South Carolina.

By letter, the Commission's Executive Director instructed IDS Telcom to publish,

one time, a prepared Notice of Filing in newspapers of general circulation in the areas

affected by the Application. The proposed Notice of Filing was to inform interested

parties of the manner and time in which to file the appropriate pleadings for participation

in the proceedings. IDS Telcom complied with this instruction and provided the

Commission with proof of publication of the Notice of Filing.

INRE:

BEFORE

THE PUBLIC SERVICECOMMISSIONOF

SOUTHCAROLINA

DOCKET NO.2000-414-C- ORDERNO.2000-988

DECEMBER8, 2000

ApplicationofIDS Telcom,LLC. for aCertificateof Public ConvenienceandNecessityto ProvideResoldandFacilities-BasedLocal ExchangeandInterexchangeTelecommunicationsServiceswithin theStateof SouthCarolina.

) ORDER V!]_) GRANTING) CERTIFICATEFOR) LOCAL AND) 1NTEREXCHANGE

AUTHORITY

ThismattercomesbeforethePublic ServiceCommissionof SouthCarolina(the

"Commission")by wayof theApplicationof IDS Telcom,LLC ("IDS Telcom"or'the

"Company")requestingaCertificateof PublicConvenienceandNecessityauthorizingit

to provideresoldandfacilities-basedlocalexchangeandintrastateinterexchange

telecommunicationsserviceswithin theStateof SouthCarolina. TheCompany's

Applicationwasfiled pursuantto S.C.CodeAnn.§58-9-280(B)(Supp.1999)andthe

Regulationsof thePublicServiceCommissionof SouthCarolina.

By letter,theCommission'sExecutiveDirectorinstructedIDS Telcomto publish,

onetime, apreparedNoticeof Filing in newspapersof generalcirculationin theareas

affectedby theApplication. TheproposedNotice of Filing wasto inform interested

partiesof themannerandtimein which to file theappropriatepleadingsfor'participation

in theproceedings.IDS Telcomcompliedwith this instructionandprovidedthe

Commissionwith proofof publicationof theNoticeof Filing.

Page 2: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 2

A Petition to Intervene was received from the South Carolina Telephone Coalition

("SCTC")on October 19, 2000. Thereafter, on November 6, 2000, Counsel for SCTC

filed with the Commission a Stipulation in which IDS Telcom stipulated that it would

only seek authority in non-rural local exchange ("LEC")service areas of South Carolina

and that it would not provide any local service to any customer located in a rural

incumbent's service area, unless and until IDS Telcom provided written notice of its

intent prior to the date of the intended service. IDS Telcom also stipulated that it was not

asking the Commission to make a finding at this time regarding whether competition is in

the public interest for rural areas. IDS Telcom agreed to abide by all State and Federal

laws and to participate to the extent that it may be required to do so by the Commission in

support of universally available telephone service at affordable rates. The SCTC

withdrew its opposition to the granting of a statewide Certificate of Public Convenience

and Necessity to IDS Telcom provided the conditions contained in the Stipulation are

met. The Stipulation is approved and attached as Order Exhibit 1.

A hearing was commenced on November 29, 2000, at 10:30a,m. , in the

Commission's Hearing Room. The Honorable William Saunders, Chairman, presided.

IDS Telcom was represented by Scott A. Elliott, Esquire. Adelaide D. Kline, Staff

Counsel, represented the Commission Staff. William P. Blume, Audit Manager II, and

David S. Lacoste, Engineer in Utilities Department, testified on behalf of the

Commission Staff.

Angel M. Leiro, Director of Regulatory Affairs for IDS Telcom, appeared and

offered testimony in support of the Company's Application. Mr. Leiro was vested with

DOCKET NO. 2000-414-C- ORDERNO.2000-988DECEMBER 8,2000PAGE2

A Petitionto Intervenewasreceivedfi'omtheSouthCarolinaTelephoneCoalition

("SCTC") on October19,2000. Thereafter,onNovember6,2000,Counselfor SCTC

filed with theCommissionaStipulationin whichIDS Telcomstipulatedthat it would

only seekauthorityin non-rurallocalexchange("LEC") serviceareasof SouthCarolina

andthat it wouldnot provideanylocalserviceto anycustomerlocatedin arural

incumbent'sservicearea,unlessanduntil IDS Telcomprovidedwrittennoticeof its

intentprior'to thedateof the intendedservice.IDS Telcomalsostipulatedthatit wasnot

askingtheCommissionto makeafindingatthis timeregardingwhethercompetitionis in

thepublic interestfor rural areas.IDS Telcomagreedto abideby all StateandFederal

lawsandto participateto theextentthatit maybe requiredto dosoby theCommissionin

supportof universallyavailabletelephoneserviceat affordablerates. TheSCTC

withdrew its oppositionto thegrantingof a statewideCertificateof PublicConvenience

andNecessityto IDS Telcomprovidedtheconditionscontainedin theStipulationare

met. TheStipulationis approvedandattachedasOrderExhibit 1.

A hearingwascommencedonNovember29,2000,at 10:30a.m.,in the

Commission'sHearingRoom. TheHonorableWilliam Saunders,Chairman,presided.

IDS Telcomwasrepresentedby ScottA. Elliott, Esquire.AdelaideD. Kline, Staff

Counsel,representedtheCommissionStaff.William P.Blume,Audit Manager'II, and

David S.Lacoste,Engineer'in Utilities Department,testifiedonbehalfof the

CommissionStaff.

Angel M. Leiro, Directorof RegulatoryAffairs for'IDS Telcom,appearedand

offeredtestimonyin supportof theCompany'sApplication. Mr. Leirowasvestedwith

Page 3: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 3

the authority to represent and bind the Company by a letter of authorization signed by

IDS Telcom's president, Michael Noshay which was entered into the evidence of this

case. As Director of Regulatory Affairs of IDS Telcom, Mr Leiro testified that his

primary responsibilities include his work as a liaison between the Company and the

Florida Public Service Commission and as a consumer advocate with customers of IDS

Telcom. IDS Telcom is a Florida limited liability corporation with headquarters located

in Miami, Florida. Mr. Leiro further testified that IDS Telcom has received authorization

to operate as a foreign corporation in the State of South Carolina by the Secretary of

State. According to the testimony, IDS Telcom, as of the heating date, had received

authority to provide local exchange and/or interexchange telecommunications services in

approximately twelve states, and is currently providing service in Alabama, Florida and

Kentucky to approximately 10,000 customers. IDS Telcom is in the process of applying

for authorization to provide competitive local exchange and interexchange services in the

BellSouth, Bell-Atlantic/Verizon regions, and the state of Texas. Mr. Leiro said the

Company has approximately 225 employees and intends to operate initially in South

Carolina as a reseller. He further explained that IDS Telcom plans to move regionally

into the nine BellSouth states within the year 2001 and hopes to eventually become a

facilities-based provider in South Carolina.

Upon receiving certification from the Commission, IDS Telcom will offer a full

array of local exchange and interexchange services to business and residential customers

in South Carolina. The Company's interexchange services will include I+ and

101XXXXoutbound dialing, 800/888 toll-free inbound dialing, calling cards, and data

DOCKET NO.2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE3

theauthorityto representandbind theCompanyby aletter'of authorizationsignedby

IDS Telcom'spresident,MichaelNoshaywhichwasenteredinto theevidenceof this

case.As Directorof RegulatoryAffair'sofIDS Telcom, Mn Leiro testified that his

primary responsibilities include his work as a liaison between the Company and the

Florida Public Service Commission and as a consumer advocate with customer's of IDS

Telcom. IDS Telcom is a Florida limited liability corporation with headquarters located

in Miami, Florida. Mr. Leiro further' testified that IDS Telcom has received authorization

to operate as a foreign corporation in the State of South Carolina by the Secretary of

State. According to the testimony, IDS Telcom, as of the hearing date, had received

authority to provide local exchange and/or interexchange telecommunications services in

approximately twelve states, and is currently providing service in Alabama, Florida and

Kentucky to approximately 10,000 customer's. IDS Telcom is in the process of applying

for authorization to provide competitive local exchange and interexchange services in the

BellSouth, Bell-Atlantic/Verizon regions, and the state of Texas. Mr'. Leiro said the

Company has approximately 225 employees and intends to operate initially in South

Carolina as a reseller. He further' explained that IDS Telcom plans to move regionally

into the nine BellSouth states within the year' 2001 and hopes to eventually become a

facilities-based provider in South Carolina.

Upon receiving certification from the Commission, IDS Telcom will offer a full

array of local exchange and interexchange services to business and residential customer's

in South Carolina. The Company's interexchange services will include 1+ and

101XXXX outbound dialing, 800/888 toll-fi'ee inbound dialing, calling cards, and data

Page 4: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 4

services. IDS Telcom's local exchange services will include switched local exchange

services, non-switched local services, centrex and/or centrex-like services, digital

subscriber line, ISDN, and other high capacity services. The record also reveals IDS

Telcom will offer dual-party relay services, 9-1-1 Emergency Services, directory

assistance and operator-assisted calls, lifeline, and toll-free calling. IDS intends to install

equipment for the provision of local exchange services. The record reveals that when the

Company installs facilities in South Carolina, it will provide voice and high speed data

services through a combination of the latest technology switching and transport media

comprised of the Siemens EWSD Release 17 switch module, ADSL/SDSL transport and

Internet service equipment and the latest Optical multiplexer DAC's configurations. The

hub portion of the switch will interconnect with the public switched network on Signaling

System 7 ("SS7")or Feature Group D ("FGD") facilities. Mr. Leiro testified that the

Siemens EWSD switch is physically located in Miami, Florida.

Mr. Leiro presented testimony on IDS Telcom's technical, financial, and

managerial ability to offer services in South Carolina. He stated the Company plans to

provide its services to business and residential customers in South Carolina. He said that

IDS Telcom intends primarily to market its services to small and medium-sized

businesses with 3-15 lines using direct mail marketing packages, sales agents, telephone

sales, and outside telemarketing. He said the agents would be closely monitored to be

sure of compliance with Commission rules and regulations. Mr. Leiro testified the

Company uses third party verification and Letters of Authorization for customers who

wish to switch their services to IDS Telcom. He offered that the Company does propose

DOCKET NO.2000-414-C- ORDERNO.2000-988DECEMBER8, 2000PAGE4

services.IDS Telcom's localexchangeserviceswill includeswitchedlocalexchange

services,non-switchedlocalservices,centrexand/orcentrex-likeservices,digital

subscriber'line, ISDN, andotherhigh capacityservices.TherecordalsorevealsIDS

Telcomwill offer dual-partyrelayservices,9-1-1EmergencyServices,directory

assistanceandoperator-assistedcalls,lifeline, andtoll-free calling.IDS intendsto install

equipmentfor theprovisionof localexchangeservices.Therecordrevealsthatwhenthe

Companyinstallsfacilities in SouthCarolina,it will providevoiceandhigh speeddata

servicesthroughacombinationof thelatesttechnologyswitchingandtransportmedia

comprisedof the SiemensEWSDRelease17switchmodule,ADSL/SDSLtransportand

IntemetserviceequipmentandthelatestOpticalmultiplexerDAC'sconfigurations.The

hubportionof theswitchwill interconnectwith thepublic switchednetworkon Signaling

System7 ("SS7")or'FeatureGroupD ("FGD") facilities.Mr'.Leiro testifiedthatthe

SiemensEWSD switchisphysicallylocatedin Miami, Florida.

Mr. Leiro presentedtestimonyon IDS Telcom'stechnical,financial,and

managerialability to offer'servicesin SouthCarolina. Hestatedthe Companyplansto

provide its servicesto businessandresidentialcustomersin SouthCarolina. Hesaidthat

IDS Telcomintendsprimarily to marketits servicesto smallandmedium-sized

businesseswith 3--15linesusingdirectmail marketingpackages,salesagents,telephone

sales,andoutsidetelemarketing.Hesaidtheagentswouldbecloselymonitoredto be

sureof compliancewith Commissionrulesandregulations.Mr. Leiro testifiedthe

Companyusesthird partyverificationandLettersof Authorizationfor customer'swho

wish to switchtheir servicesto IDS Telcom.HeofferedthattheCompanydoespropose

Page 5: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 5

to offer prepaid calling cards as part of the services it will offer here. The Company's

name and toll-free telephone number will appear on the card which will be distributed

through direct sales agents. Mr. Leiro further stated that IDS Telcom is familiar with the

Commission's bond requirement and the Company will post the required $5,000 bond

with the Commission. The record reveals that IDS Telcom intends to utilize

Frontier/Global Crossing as its underlying carriers. The Company will enter into an

interconnection agreement with BellSouth. Mr. Leiro is the regulatory contact person for

IDS Telcom.

Regarding the Company's technical ability to offer services in South Carolina, the

record reveals IDS Telcom will initially resell the facilities of existing LECs or

underlying carriers that presently service South Carolina. The testimony also reveals IDS

Telcom will provide voice, high speed data and internet access services through a

combination of the Lucent Technology PathStar, ADSL/SDSL transport and Internet

service equipment and the latest Optical multiplexer DAC's configurations. Further, the

record reveals the switching system consists of a central processing and control complex

capable of interconnection as a peer to the incumbent as well as competitive local

exchange companies; the hub portion of the switch will interconnect with the public

switched network on Signaling System 7 or Feature Group D facilities.

IDS Telcom also operates a customer service department which responds to

customer inquiries. The customer service department is open twenty-four hours a day,

seven days a week. Mr. Leiro's testimony states IDS Telcom has sufficient technical

DOCKET NO. 2000-414-C- ORDERNO. 2000-988DECEMBER 8,2000PAGE5

to offer prepaidcalling cardsaspartof theservicesit will offer here.TheCompany's

nameandtoll-freetelephonenumber'will appearon thecardwhichwill bedistributed

throughdirectsalesagents.Mr. Leiro furtherstatedthatIDS Telcomis familiarwith the

Commission'sbondrequirementandtheCompanywill post therequired$5,000bond

with the Commission.TherecordrevealsthatIDS Telcomintendsto utilize

Frontier/GlobalCrossingasits underlyingcarrier's.TheCompanywill enterinto an

interconnectionagreementwith BellSouth.Mr'.Leiro is theregulatorycontactpersonfor

IDS Telcom.

RegardingtheCompany'stechnicalability to offer servicesin SouthCarolina,the

recordrevealsIDS Telcomwill initially resellthefacilitiesof existingLECsor'

underlyingcarTiersthatpresentlyserviceSouthCarolina.ThetestimonyalsorevealsIDS

Telcomwill providevoice,high speeddataandintemetaccessservicesthrougha

combinationof theLucentTechnologyPathStar,ADSL/SDSLtransportandIntemet

serviceequipmentandthelatestOpticalmultiplexerDAC's configurations.Further,the

recordrevealstheswitchingsystemconsistsof acentralprocessingandcontrolcomplex

capableofinterconnectionasapeer'to the incumbentaswell ascompetitivelocal

exchangecompanies;thehubportionof theswitchwill interconnectwith thepublic

switchednetworkon SignalingSystem7 or FeatureGroupD facilities.

IDS Telcomalsooperatesacustomerservicedepartmentwhich respondsto

customerinquiries. Thecustomer'servicedeparmaentis opentwenty-fourhoursaday,

sevendaysaweek.Mr. Leiro's testimonystatesIDS Telcomhassufficienttechnical

Page 6: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 6

resources and ability to provide the telecommunications services it proposes to provide in

South Carolina.

Mr. Leiro also testified the Company's personnel represent a broad spectrum of

business and technical disciplines, possessing many years of individual and aggregate

telecommunications experience. Michael Noshay is the President and a founder of IDS

Telcom. He has had over ten years experience in the telecommunications industry. Mr.

Noshay is responsible for the development and negotiation of all interconnection

agreements for IDS Telcom and he handles all of the legal, tariff, and contractual matters,

including regulatory issues and billing disputes. Joe Millstone is the Chief Executive

Officer, one of the founders of IDS Telcom, and has eleven years of telecommunications

experience. Mr. Millstone oversees all aspects of the retail side of IDS Telcom and the

sister company, Interconnect Data Service, the telephone equipment part of the business.

Anthony Petrone is IDS Telcom's Executive Vice President. He manages the Wholesale

Carrier Division. Minor Oquendo is the Company's Director of Network Operations

responsible for network planning and engineering.

Mr. Leiro also testified that IDS Telcom has the financial resources and ability to

provide telecommunications services in South Carolina. He said that IDS Telcom has

received $13.5 M in financing and has $2.5 M of that amount remaining. He stated the

principals of the business are independently wealthy and would have access to additional

resources should those avenues become necessary. William P. Blume, Commission Staff

witness, testified that the balance sheet submitted with the Company's application

illustrated the Company's financial status as of May 31, 2000. He testified that these

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE6

resourcesandability to providethetelecommunicationsservicesit proposesto providein

SouthCarolina.

Mr. Leiro alsotestifiedtheCompany'spersonnelrepresentabroadspectrumof

businessandtechnicaldisciplines,possessingmanyyearsof individual andaggregate

telecommunicationsexperience.MichaelNoshayis thePresidentandafounderof IDS

Telcom.Hehashadovertenyearsexperiencein thetelecommunicationsindustry.Mr'.

Noshayis responsiblefor thedevelopmentandnegotiationof all interconnection

agreementsfor IDS Telcomandhehandlesall of the legal,tariff, andcontractualmatters,

includingregulatoryissuesandbilling disputes.JoeMillstone is theChief Executive

Officer, one of the founders of IDS Telcom, and has eleven years of telecommunications

experience. Mr'. Millstone oversees all aspects of the retail side of lDS Telcom and the

sister company, Interconnect Data Service, the telephone equipment part of the business.

Anthony Petrone is IDS Telcom's Executive Vice President. He manages the Wholesale

Cartier Division. Minor' Oquendo is the Company's Director of Network Operations

responsible for network planning and engineering.

Mr. Leiro also testified that IDS Telcom has the financial resources and ability to

provide telecommunications services in South Carolina. He said that IDS Telcom has

received $13.5 M in financing and has $2.5 M of that amount remaining. He stated the

principals of the business are independently wealthy and would have access to additional

resources should those avenues become necessary. William P. Blume, Commission Staff

witness, testified that the balance sheet submitted with the Company's application

illustrated the Company's financial status as of May 31, 2000. He testified that these

Page 7: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 7

documents indicate that the Company has a fair cash position with cash making up 6'Jo of

total assets. He said the current ratio, or ability to pay off current liabilities with current

assets, is a good 1.12. Blume further testified there were current assets as of May 31,

2000, to satisfy current liabilities. Mr. Leiro testified that Robert Hacker is the Chief

Financial Officer and the Company's financial contact person. The Company requested

the Commission's permission to be exempt from any record-keeping rules or regulations

that might require the Company to maintain its financial records in conformance with the

Uniform System of Accounts. According to the record, IDS Telcom currently maintains

its book of accounts in accordance with the Generally Accepted Accounting Principles

("GAAP").

IDS Telcom also requested a waiver of S.C. Code Ann. Regs. 103-631 so that the

Company will not be required to publish local exchange directories. According to the

record, IDS Telcom will make arrangements with the incumbent local exchange carriers

whereby the names of IDS Telcom's customers will be included in the directories

published by the incumbent local exchange carriers. At the hearing, the Company

additionally requested a waiver of 26 S.C. Code Ann. Regs. 103-610 (1976) so that IDS

Telcom can maintain its records outside of South Carolina. The Company wishes to

maintain its books and records at its headquarters in Miami, Florida. In addition, IDS

Telcom requests a waiver of any reporting requirements which, although applicable to

incumbent local exchange carriers, are not applicable to competitive providers such as

IDS Telcom because it is the Company's position that these requirements (1) are not

consistent with the demands of the competitive market; or (2) they constitute an undue

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE7

documentsindicatethattheCompanyhasa fair cashpositionwith cashmakingup6%of

total assets.He saidthecurrentratio,or ability to payoff currentliabilitieswith cm_'ent

assets,is agood1.12. Blume furthertestifiedtherewerecurrentassetsasof May 31,

2000,to satisfycurrentliabilities.Mr. Leiro testifiedthatRobertHacker'is theChief

FinancialOfficer andtheCompany'sfinancialcontactperson.TheCompanyrequested

theCommission'spermissionto beexemptfrom anyrecord-keepingrulesor'regulations

that might requiretheCompanyto maintainits financialrecordsin conformancewith the

Uniform Systemof Accounts. Accordingto therecord,IDS Telcomcurrentlymaintains

its bookof accountsin accordancewith theGenerallyAcceptedAccountingPrinciples

("GAAP").

IDS Telcomalsorequestedawaiverof S.C.CodeAnn. Regs.103-631sothatthe

Companywill notbe requiredto publishlocal exchangedirectories.Accordingto the

record,IDS Telcomwill makearrangementswith the incumbentlocalexchangecarrier's

wherebythenamesof IDS Telcom'scustomerswill be includedin thedirectories

publishedby theincumbentlocalexchangecarriers.At thehearing,theCompany

additionallyrequestedawaiverof 26S.C.CodeAnn. Regs.103-610(1976)sothat IDS

Telcomcanmaintainits recordsoutsideof SouthCar'olina.TheCompanywishesto

maintainits booksandrecordsat its headquartersin Miami, Florida.In addition,IDS

Telcomrequestsawaiver'of anyreportingrequirementswhich, althoughapplicableto

incumbentlocal exchangecarriers,arenotapplicableto competitiveproviderssuchas

IDS Telcombecauseit is theCompany'spositionthattheserequirements(1) arenot

consistentwith thedemandsof thecompetitivemarket;or (2) theyconstituteanundue

Page 8: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 8

burden on a competitive provider, thereby requiring an inefficient allocation of its limited

resources.

David S. Lacoste of the Commission Staff presented testimony to the Commission

on the Utilities Department's findings with respect to IDS Telcom's Application for a

Certificate of Public Convenience and Necessity. Lacoste's testimony includes several

recommended changes to the Company's tariff. The Company agreed to make the

Commission Staffs suggested changes to its final tariff.

Upon receiving certification from the Commission, Mr. Leiro testified IDS

Telcom will abide by and comply with the Commission's rules and regulations and

Commission Orders in its operations in South Carolina. Further, the testimony reveals

IDS Telcom has never had an application for a certificate of public convenience and

necessity denied nor has the Company ever been the subject of an investigation by a state

regulatory body or the Federal Communications Commission. Additionally, as of the

hearing date, IDS Telcom had not provided any intrastate telecommunications services

within the State of South Carolina.

After full consideration of the applicable law, the Company's Application, and the

evidence presented at the hearing, the Commission hereby issues its findings of fact and

conclusions of law:

FINDINGS OF FACT

1. IDS Telcom is organized as a corporation under the laws of the State of

Florida and has received a certificate from the South Carolina Secretary of State to

transact business within South Carolina as a foreign corporation.

DOCKET NO.2000-414-C- ORDERNO.2000-988DECEMBER8, 2000PAGE8

burdenonacompetitiveprovider,therebyrequiringaninefficient allocationof its limited

resources.

David S.Lacosteof theCommissionStaffpresentedtestimonyto theCommission

on theUtilities Department'sfindingswith respectto IDS Telcom'sApplicationfor a

Certificateof PublicConvenienceandNecessity.Lacoste'stestimonyincludesseveral

recommendedchangesto theCompany'stariff. TheCompanyagreedto makethe

CommissionStaffs suggestedchangesto its final tariff.

UponreceivingcertificationfromtheCommission,Mr. Leiro testifiedIDS

Telcomwill abideby andcomplywith theCommission'srulesandregulationsand

CommissionOrdersin its operationsin SouthCarolina.Further,thetestimonyreveals

IDS Telcomhasneverhadanapplicationfor acertificateof public convenienceand

necessitydeniednorhastheCompanyeverbeenthesubjectof aninvestigationby astate

regulatorybody or theFederalCommunicationsCommission.Additionally, asof the

hearingdate,IDS Telcomhadnotprovidedanyintrastatetelecommunicationsset-vices

within theStateof SouthCarolina.

After full considerationof theapplicablelaw, theCompany'sApplication, andthe

evidencepresentedatthehearing,theCommissionherebyissuesits findingsof factand

conclusionsof law:

FINDINGS OF FACT

1. IDS Telcom is organized as a corporation under the laws of the State of

Florida and has received a certificate from the South Carolina Secretary of State to

transact business within South Carolina as a foreign corporation.

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DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 9

2. IDS Telcom wishes to provide local exchange services and interexchange

services within the State of South Carolina.

3. The Commission finds that IDS Telcom possesses the technical, financial,

and managerial resources sufficient to provide the service requested.

4. The Commission finds that IDS Telcom' "provision of service will not

adversely impact the availability of affordable local exchange service. " S.C. Code Ann.

)58-9-280(B)(3) (Supp. 1999).

5. The Commission finds that IDS Telcom will support universally available

telephone service at affordable rates.

6. The Commission finds that IDS Telcom will provide services which will

meet the service standards of the Commission.

7. The Commission finds that the provision of local exchange service by IDS

Telcom "does not otherwise adversely impact the public interest. "S.C. Code Ann. (58-9-

280(B)(5) (Supp. 1999).

CONCLUSIONS OF LAW

1. Based on the above findings of fact, the Commission determines that a

Certificate of Public Convenience and Necessity should be granted to IDS Telcom to

provide competitive resold and facilities-based intrastate local exchange services only to

customers located in the non-rural areas of South Carolina. The terms of the Stipulation

between IDS Telcom and the SCTC are approved, and adopted as a portion of this Order.

Any proposal to provide local exchange service to a customer in a rural incumbent LEC's

service area is not included in the instant grant of authority. Further, the Company is

DOCKET NO.2000-414-C- ORDERNO.2000-988DECEMBER8, 2000PAGE9

2. IDS Telcomwishesto providelocalexchangeservicesandinterexchange

serviceswithin the Stateof SouthCarolina.

3. TheCommissionfindsthat IDS Telcompossessesthetechnical,financial,

andmanagerialresourcessufficientto providetheservicerequested.

4. TheCommissionfindsthatIDS Telcom'"provisionof servicewill not

adverselyimpacttheavailabilityof affordablelocal exchangeservice." S.C.CodeAnn.

§58-9-280(B)(3)(Supp.1999).

5. TheCommissionfindsthatIDS Telcomwill supportuniversallyavailable

telephoneserviceat affordablerates.

6. TheCommissionfindsthatIDS Telcomwill provideserviceswhichwill

meettheservicestandardsof theCommission.

7. TheCommissionfindsthattheprovisionof localexchangeserviceby IDS

Telcom "doesnot otherwiseadverselyimpactthepublic interest."S.C.CodeAnn.§58-9-

280(B)(5) (Supp.1999).

CONCLUSIONS OF LAW

1. Based on the above findings of fact, the Commission determines that a

Certificate of Public Convenience and Necessity should be granted to IDS Telcom to

provide competitive resold and facilities-based intrastate local exchange services only to

customers located in the non-rural areas of South Carolina. The terms of the Stipulation

between IDS Telcom and the SCTC are approved, and adopted as a portion of this Order.

Any proposal to provide local exchange service to a customer in a rural incumbent LEC's

service area is not included in the instant grant of authority. Further, the Company is

Page 10: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 10

granted authority to provide facilities-based and resold intrastate interLATA service and

to originate and terminate toll traffic within the same LATA, as set forth herein, through

the resale of intrastate Wide Area Telecommunications Services (WATS), Message

Telecommunications Service (MTS), directory assistance, travel card service or any other

services authorized for resale by tariffs of cariiers approved by the Commission

2. With regard to the interexchange seivice offerings of IDS Telcom, the

Commission adopts a rate design which includes only maximum rate levels for each tariff

charge. A rate structure incorporating maximum rate levels with the flexibility for

adjustment below the maximum rate levels has been previously adopted by the

Commission. InRe: A licationofGTE S rint Communications Co oration etc. ,

Order No. 84-622, issued in Docket No. 84-10-C (August 2, 1984).

3. IDS Telcom shall not adjust its interexchange rates below the approved

maximum level without notice to the Commission and to the public. IDS Telcom shall

file its proposed rate changes, publish its notice of such changes, and file affidavits of

publication with the Commission two weeks prior to the effective date of the changes.

However, the public notice requirement is waived, and therefore not required, for

reductions below the maximum cap in instances which do not affect the general body of

subscribers or do not constitute a general rate reduction. In Re: A lication of GTE

S rint Communications etc., Order No. 93-638, issued in Docket No. 84-10-C (July 6,

1993). Any proposed increase in the maximum rate level for interexchange services

reflected in the tariff which would be applicable to the general body of the Company's

subscribers shall constitute a general ratemaking proceeding and will be treated in

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE 10

grantedauthorityto providefacilities-basedandresoldintrastateinterLATA serviceand

to originateandterminatetoll traffic within thesameLATA, assetforth herein,through

theresaleof intrastateWideAreaTelecommunicationsServices(WATS), Message

TelecommunicationsService(MTS),directoryassistance,travelcardserviceor'anyother'

servicesauthorizedfor resaleby tariffs of carriersapprovedby theCommission.

2. With regardto the interexchangeserviceofferingsofIDS Telcom,the

Commissionadoptsaratedesignwhich includesonlymaximumratelevelsfor eachtariff

charge.A ratestructureincorporatingmaximumratelevelswith theflexibility for'

adjustmentbelow themaximumratelevelshasbeenpreviouslyadoptedby the

Commission.In Re: Application of GTE Sprint Communications Corporation, etc.,

Order No. 84-622, issued in Docket No. 84-10-C (August 2, 1984).

3. IDS Telcom shall not adjust its interexchange rates below the approved

maximum level without notice to the Commission and to the public. IDS Telcom shall

file its proposed rate changes, publish its notice of such changes, and file affidavits of

publication with the Commission two weeks prior' to the effective date of the changes.

However', the public notice requirement is waived, and therefore not required, for

reductions below the maximum cap in instances which do not affect the general body of

subscribers or' do not constitute a general rate reduction. In Re: Application of GTE

Sprint Communications, etc., Order No. 93-638, issued in Docket No. 84-10-C (July 6,

1993). Any proposed increase in the maximum rate level for interexchange services

reflected in the tariff which would be applicable to the general body of the Company's

subscriber's shall constitute a general ratemaking proceeding and will be treated in

Page 11: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 11

accordance with the notice and hearing provisions of S.C. Code Ann. )58-9-540 (Supp.

1999).

4. If it has not already done so by the date of issuance of this Order, IDS

Telcom shall file its revised local and long distance tariffs and an accompanying price list

within thirty (30) days of receipt of this Order. The revised tariff shall be consistent with

the findings of this Order and shall be consistent with the Commission's Rules and

Regulations.

5. IDS Telcom is subject to access charges pursuant to Commission Order

No. 86-584 in which the Commission determined that for access purposes resellers

should be treated similarly to facilities-based interexchange carriers„

6. With regard to the Company's resale of interexchange service, an end-user

should be able to access another interexchange carrier or operator service provider if the

end-user so desires.

7. IDS Telcom shall resell the services of only those interexchange carriers

or LECs authorized to do business in South Carolina by this Commission. If IDS Telcom

changes underlying carriers, it shall notify the Commission in writing.

8. With regard to the origination and termination of toll calls within the same

LATA, IDS Telcom shall comply with the terms of Order No. 93-462, Order Approving

Stipulation and Agreement, in Docket Nos. 92-182-C, 92-183-C, and 92-200-C (June 3,

1993),with the exception of the 10-XXXintraLATA dialing requirement, which has

been rendered obsolete by the toll dialing parity rules established by the Federal

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8,2000PAGE11

accordancewith thenoticeandhearingprovisionsof S.C.CodeAnn. §58-9-540(Supp.

1999).

4. If it hasnot alreadydonesoby thedateof issuanceof this Order,IDS

Telcomshall file its revisedlocal andlong distancetariffs andanaccompanyingprice list

within thirty (30)daysof receiptof thisOrder. Therevisedtariff shallbeconsistentwith

thefindingsof thisOrderandshallbeconsistentwith theCommission'sRulesand

Regulations.

5. IDS Telcomis subjectto accesschargespursuantto CommissionOrder

No. 86-584in which theCommissiondeterminedthat for accesspurposesresellers

shouldbe treatedsimilarly to facilities-basedinterexchangecarriers

6. With regardto theCompany'sresaleofinterexchangeservice,anend-user

shouldbeableto accessanotherinterexchangecarrieror operatorserviceproviderif the

end-usersodesires.

7. IDS Telcomshallreselltheservicesof only thoseinterexchangecarders

or'LECsauthorizedto dobusinessin SouthCarolinaby this Commission.IfIDS Telcom

changesunderlyingcarriers,it shallnotify theCommissionin writing.

8. With regardto theoriginationandterminationof toll callswithin thesame

LATA, IDS Telcomshallcomplywith thetermsof OrderNo. 93-462,OrderApproving

StipulationandAgreement,in DocketNos.92-182-C,92-183-C,and92-200-C (June 3,

1993), with the exception of the 10-XXX intraLATA dialing requirement, which has

been rendered obsolete by the toll dialing parity rules established by the Federal

Page 12: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 12

Communications Commission, pursuant to the Telecommunications Act of 1996 (See, 47

CFR 51.209).

9. IDS Telcom shall file annual surveillance reports on a calendar or fiscal

year basis with the Commission as required by Order No. 88-178 in Docket No. 87-483-

C. The proper form for these reports can be found at the Commission's website at

www. sc.state. sc.us/forms. The title of this form is "Annual Information on South

Carolina Operations for Interexchange Companies and AOS'". Be advised that the

Commission's annual report for telecommunications companies requires the filing of

intrastate revenues and intrastate expenses.

10. Title 23, Chapter 47, South Carolina Code of Laws Ann. , governs the

establishment and implementation of a "Public Safety Communications Center, "which is

more commonly known as a "911system" or "911service. " Services available through a

911 system include law enforcement, fire, and emergency medical services. In

recognition of the necessity of quality 911 services being provided to the citizens of

South Carolina, the Commission hereby instructs IDS Telcom to contact the appropriate

authorities regarding 911 service in the counties and cities where the Company will be

operating. Contact with the appropriate 911 service authorities is to be made before

beginning telephone service in South Carolina. Accompanying this Order is an

information packet from the South Carolina Chapter of the National Emergency Number

Association ("SCNENA") with contact information and sample forms. The Company

may also obtain information by contacting the E911 Coordinator at the Office of

Information Resources of the South Carolina Budget and Control Board. By this Order

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE12

CommunicationsCommission,pursuantto theTelecommunicationsAct of 1996(See,47

CFR51.209).

9. IDS Telcomshallfile annualsurveillancereportson acalendaror'fiscal

yearbasiswith theCommissionasrequiredby OrderNo. 88-178in DocketNo. 87-483-

C. Theproperform for thesereportscanbe foundattheCommission'swebsiteat

www.psc.state.sc.us/forms. The title of this form is "Annual Information on South

Carolina Operations for' Interexchange Companies and AOS'". Be advised that the

Commission's annual report for telecommunications companies requires the filing of

intrastate revenues and intrastate expenses.

10. Title 23, Chapter 47, South Carolina Code of Laws Ann., governs the

establishment and implementation of a "Public Safety Communications Center," which is

more commonly known as a "911 system" or "911 service." Services available through a

911 system include law enforcement, fire, and emergency medical services. In

recognition of the necessity of quality 911 services being provided to the citizens of

South Carolina, the Commission hereby instructs IDS Telcom to contact the appropriate

authorities regarding 911 service in the counties and cities where the Company will be

operating. Contact with the appropriate 911 service authorities is to be made before

beginning telephone service in South Carolina. Accompanying this Order is an

information packet from the South Carolina Chapter of the National Emergency Number

Association ("SC NENA") with contact information and sample forms. The Company

may also obtain information by contacting the E911 Coordinator at the Office of

Information Resources of the South Carolina Budget and Control Board. By this Order'

Page 13: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 13

and prior to providing services within South Carolina, IDS Telcom, shall contact the 911

Coordinator in each county, as well as the 911 Coordinator in each city where the city has

its own 911 system, and shall provide information regarding the Company's operations as

required by the 911 system.

11. The Company shall, in compliance with Commission regulations,

designate and maintain an authorized utility representative who is prepared to discuss, on

a regulatory level, customer relations (complaint) matters, engineering operations, tests

and repairs. In addition, the Company shall provide to the Commission in writing the

name of the authorized representative to be contacted in connection with general

management duties as well as emergencies which occur during non-office hours.

IDS Telcom shall file the names, addresses and telephone numbers of these

representatives with the Commission within thirty (30) days of receipt of this Order. The

"Authorized Utility Representative Information" form can be found at the Commission's

website at wow. sc.state. sc.us/forms. This form shall be utilized for the provision of this

information to the Commission. Further, the Company shall promptly notify the

Commission in w~iting if the representatives are replaced.

12. IDS Telcom shall conduct its business in compliance with Commission

decisions and Orders, both past and future, including but not limited to, any and all

Commission decisions which may be rendered in Docket No. 96-018-C regarding local

competition.

13. The Company is directed to comply with all Rules and Regulations of the

Commission, unless a regulation is specifically waived by the Commission.

DOCKET NO. 2000-414-C- ORDERNO. 2000-988DECEMBER 8,2000PAGE 13

andprior to providing serviceswithin SouthCarolina,IDS Telcom,shallcontactthe911

Coordinator'in eachcounty,aswell asthe911Coordinatorin eachcity wherethecity has

its own 911system,andshallprovideinformationregardingtheCompany'soperationsas

requiredby the 911system.

11. TheCompanyshall,in compliancewith Commissionregulations,

designateandmaintainanauthorizedutility representativewho is preparedto discuss,on

aregulatorylevel, customerrelations(complaint)matters,engineeringoperations,tests

andrepairs. In addition,theCompanyshallprovideto theCommissionin writing the

nameof theauthorizedrepresentativeto becontactedin connectionwith general

managementdutiesaswell asemergencieswhichoccurduringnon-officehour's.

IDS Telcomshall file thenames,addressesandtelephonenumbersof these

representativeswith theCommissionwithin thirty (30)daysof receiptof this Order.The

"AuthorizedUtility RepresentativeInformation"form canbe foundat theCommission's

websiteatwww.psc.state.sc.us/forms. This form shall be utilized for the provision of this

information to the Commission. Further, the Company shall promptly notify the

Commission in writing if the representatives are replaced.

12. IDS Telcom shall conduct its business in compliance with Commission

decisions and Orders, both past and future, including but not limited to, any and all

Commission decisions which may be rendered in Docket No. 96-018-C regarding local

competition.

13. The Company is directed to comply with all Rules and Regulations of the

Commission, unless a regulation is specifically waived by the Commission.

Page 14: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 14

14. IDS Telcom shall file annual financial information in the form of annual

reports and gross receipts reports as required by the Commission. The annual report and

the gross receipt report will necessitate the filing of intrastate information. Therefore,

IDS Telcom shall keep financial records on an intrastate basis for South Carolina to

comply with the annual and gross receipts filings. The "Annual Report for Competitive

Local Exchange carriers" form can be located at the Commission's website at www.

sc.state. sc.us/forms. This form shall be utilized by the Company to provide the

Commission with annual financial information on the Company's intrastate operations.

15. By its Application, IDS Telcom requested waivers from Commission

requirements (1) of publishing a directory, (2) of maintaining its books and records

within the state, (3) of any reporting requirements which are not applicable to competitive

providers, and (4) requested permission to maintain its financial records in accordance

with GAAP. The Commission finds the reasoning behind IDS Telcom's requests for

waivers of publishing a directory, maintaining its books and record within the state and in

accordance with GAAP reasonable and hereby grants the waivers of these regulations.

The Commission denies the Company's request for a waiver of any reporting

requirements which are applicable to incumbent LECs. In the future, upon the request of

the Company, this Commission may grant a waiver of a specific regulation if the

Company demonstrates that compliance with the regulation introduces unusual difficulty

and that the waiver is in the public interest. However, IDS Telcom is directed to comply

with all Rules and Regulations of the Commission, unless a regulation is specifically

waived by the Commission.

DOCKET NO. 2000-414-C- ORDERNO.2000-988DECEMBER 8, 2000PAGE 14

14. IDS Telcomshallfile annualfinancialinformationin theform of annual

reportsandgrossreceiptsreportsasrequiredbythe Commission.Theannualreport and

thegrossreceiptreportwill necessitatethefiling of intrastateinformation. Therefore,

IDS Telcomshallkeepfinancialrecordsonanintrastatebasisfor SouthCarolinato

complywith theannualandgrossreceiptsfilings. The"AnnualReportfor'Competitive

Local ExchangecarT]ers"form canbelocatedattheCommission'swebsiteatwww.

psc.state.sc.us/forms. This form shall be utilized by the Company to provide the

Commission with annual financial information on the Company's intrastate operations.

15. By its Application, IDS Telcom requested waivers from Commission

requirements (1) of publishing a directory, (2) of maintaining its books and records

within the state, (3) of any reporting requirements which are not applicable to competitive

providers, and (4) requested permission to maintain its financial records in accordance

with GAAP. The Commission finds the reasoning behind IDS Telcom's requests for'

waivers of publishing a directory, maintaining its books and record within the state and in

accordance with GAAP reasonable and hereby grants the waivers of these regulations.

The Commission denies the Company's request for a waiver of any reporting

requirements which are applicable to incumbent LECs. In the future, upon the request of

the Company, this Commission may grant a waiver of a specific regulation if the

Company demonstrates that compliance with the regulation introduces unusual difficulty

and that the waiver' is in the public interest. However', IDS Telcom is directed to comply

with all Rules and Regulations of the Commission, unless a regulation is specifically

waived by the Commission.

Page 15: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 15

16. As a condition of offering debit card services or prepaid long distance

services, the Commission requires the Company to post with the Commission a bond in

the form of a Certificate of Deposit worth $5,000 drawn in the name of the Public Service

Commission of South Carolina or a surety bond in the amount of $5,000 which is payable

to the Commission. The Certificate of Deposit shall be drawn on federal or state

chartered banks or savings and loan associations which maintain an office in this state

and whose accounts are insured by either the FDIC or the Federal Savings and Loan

Insurance Corporation. A surety bond shall be issued by a duly licensed bonding or

insurance company authorized to do business in South Carolina. This condition may be

reviewed in one year.

17. If the Company sells its debit cards to retail establishments for resale of

the debit cards, and the retailer of the debit cards deviates from the suggested retail price

as filed in the tariff, or as approved by the Commission in a special promotion, then the

Company will withdraw its cards from that retail outlet. This Commission strongly

suggests that the Company enter into written agreements with its South Carolina retail

outlets regarding this policy of abiding by suggested retail pricing prior to the outlet

marketing the card.

DOCKETNO. 2000-414-C- ORDERNO. 2000-988DECEMBER8, 2000PAGE 15

16. As a conditionof offeringdebitcardservicesorprepaidlongdistance

services,theCommission requires the Company to post with the Commission a bond in

the form of a Certificate of Deposit worth $5,000 drawn in the name of the Public Service

Commission of South Carolina or a surety bond in the amount of $5,000 which is payable

to the Commission. The Certificate of Deposit shall be drawn on federal or state

chartered banks or savings and loan associations which maintain an office in this state

and whose accounts are insured by either the FDIC or the Federal Savings and Loan

Insurance Corporation. A surety bond shall be issued by a duly licensed bonding or

insurance company authorized to do business in South Carolina. This condition may be

reviewed in one year'.

17. If the Company sells its debit cards to retail establishments for resale of

the debit cards, and the retailer of the debit cards deviates from the suggested retail price

as filed in the tariff, or as approved by the Commission in a special promotion, then the

Company will withdraw its cards from that retail outlet. This Commission strongly

suggests that the Company enter into written agreements with its South Carolina retail

outlets regarding this policy of abiding by suggested retail pricing prior to the outlet

marketing the card.

Page 16: BEFORE THE PUBLIC SERVICECOMMISSIONOF

DOCKET NO. 2000-414-C —ORDER NO. 2000-988DECEMBER 8, 2000PAGE 16

18. This Order shall remain in full force and effect until further Order of the

Commission.

BY ORDER OF THE COMMISSION:

Chairman

ATTEST:

Executive ctor

(SEAL)

DOCKET NO. 2000-414-C- ORDERNO. 2000-988DECEMBER 8,2000PAGE 16

18. This Order'shallremainin full forceandeffectuntil furtherOrderof the

Commission.

BY ORDEROFTHE COMMISSION:

Chairman

ATTEST:

cto_

(SEAL)

Page 17: BEFORE THE PUBLIC SERVICECOMMISSIONOF

ORDER NO. 2000-414-C — ORDER NO. 2000-988DECEMBER 8, 2000EXHIBIT 41

BEFORETHE PUBLIC SERVICE COMMISSION

OFSOUTHCAROLINA

Docket No. 2000-NUMBER-C

Docket No. 2000-414-C

Re: Application ofIDS Telcom, LLC fora )Certificate ofPublic Convenience and )Necessity to Provide Resold and Facilities- )Based Local Exchange and Interexchange )Telecommunications Service ir the State )of South Carolina )

STIPULATKlX

The South Carolina Telephone Coalition ("SCTC")(see attachment "A" for list of companies)

and IDS Telcom, LLC ("IDS Telcom") hereby enter into the following stipulations. As a

consequence of these stipulations and conditions, SCTC does not oppose IDS Telcom' Application.

SCTC and IDS Telcom stipulate and agree as follows:

1. SCTC does not oppose the granting of a statewide Certificate of Public Convenience

and Necessity to IDS Telcom, provided the South Carolina Public Service Commission

("Commission" ) makes the necessary findings to justify granting of such a certificate, and provided

the conditions contained within this stipulation are met.

2. IDS Telcom stipulates and agrees that any Certificate which may be granted will

authorize IDS Telcom to provide service only to customers located in non-rural local exchange

company ("LEC")service areas of South Carolina, except as provided herein.

3. IDS Telcom stipulates that it is not asking the Commission to make a finding at this

time regarding whether competition is in the public interest for rural areas.

ORDER NO. 2000-414-C

DECEMBER 8, 2000EXHIBIT #I

- ORDER NO. 2000-988

BEFORE

THE PUBLIC SERVICE COMMISSION

OF

SOUTH CAROLINA

Docket No. 2000-NUMBER-C

Docket No. 2000-414-C

Re: Application oflDS Telcom, LLC for a )Certificate of Public Convenience and )

Necessity to Provide Resold and Facilities- )

Based Local Exchange and Interexchange )

Telecommunications SeIvices iu the State )

of South Carolina )

)

STIPULATION

The South Carolina Telephone Coalition ("SCTC") (see attachment "A" for list of companies)

and IDS Telcom, LLC ("IDS Telcom") hereby enter into the following stipulations. As a

consequence of these stipulations and conditions, SCTC does not oppose IDS Telcom' Application.

SCTC and IDS Telcom stipulate and agree as follows:

1. SCTC does not oppose the granting ofa statewide Certificate of Public Convenience

and Necessity to IDS Telcom, provided the South Carolina Public Service Commission

("Commission") makes the necessary findings to justify granting of such a certificate, and provided

the conditions contained within this stipulation are met.

2. IDS Telcom stipulates and agrees that any Certificate which may be granted will

authorize IDS Telcom to provide service only to customers located in non-rural local exchange

company CLEC") service areas of South Carolina, except as provided herein.

3. IDS Telcom stipulates that it is not asking the Commission to make a finding at this

time regarding whether' competition is in the public interest for rural areas.

Page 18: BEFORE THE PUBLIC SERVICECOMMISSIONOF

4. IDS Telcom stipulates and agrees that it will not provide any local service, by its

own facilities or otherwise, to any customer located in a rural incumbent LEC's service area, unless

and until IDS Telcom provides such rural incumbent LEC and the Commission with written notice

of its intent to do so at least thirty (30) days prior to the date of the intended service. During such

notice period, the rural incumbent LEC will have the opportunity to petition the Commission to

exercise all rights afforded it under Federal and State law. Also, IDS Telcom acknowledges that the

Commission may suspend the intended date for service in rural LEC territory for ninety (90) days

while the Commission conducts any proceeding incident to the Petition or upon the Commission's

own Motion, provided that the Coinmission can further suspend the implementation date upon

showing of good cause.

5. IDS Telcom stipulates and agrees that, if IDS Telcom gives notice that it intends to

serve a customer located in a rural incumbent LEC's service area, and either (a) the Commission

receives a Petition from the rural incumbent LEC to exercise its rights under Federal or State law

within such 30-day period, or (b) the Commission institutes a proceeding of its own, then IDS

Telcom will not provide service to any customer located within the service area in question without

prior and further Commission approval.

6. IDS Telcom acknowledges that any right which it may have or acquire to serve a

rural telephone company service area in South Carolina is subject to the conditions contained

herein, and to any futine policies, procedures, and guidelines relevant to such proposed service

which the Commission may implement, so long as such policies, procedures, and guidelines do not

conflict with Federal or State law.

7. The parties stipulate and agree that all rights under Federal and State law are

reserved to the rural incumbent LECs and IDS Telcom, and this Stipulation in no way suspends or

adversely affects such rights, including any exemptions, suspensions, or modifications to which they

may be entitled.

4. IDS Telcomstipulatesandagreesthat it will not provideany local service,by its

own facilitiesorotherwise,to anycustomerlocatedin aruralincumbentLEC'sservicearea,unless

anduntil IDS Telcomprovidessuchrural incumbentLEC andtheCommissionwith writtennotice

of its intentto do soat leastthirty (30) daysprior to thedateof the intendedservice.Duringsuch

notice period,the rural incumbentLEC will havethe oppommityto petition the Commissionto

exerciseall rightsaffordedit underFederalandStatelaw. Also, IDS Telcomacknowledgesthatthe

Commissionmaysuspendtheintendeddatefor servicein rural LEC territory for ninety (90)days

while theCommissionconductsanyproceedingincidentto thePetitionor uponthe Commission's

own Motion, providedthat the Con,missioncan further suspendthe implementationdateupon

showingof goodcause.

5. IDS Telcomstipulatesandagreesthat,if IDS Telcomgivesnoticethat it intendsto

servea customer'locatedin a rural incumbentLEC'sservicearea,andeither(a) the Commission

receivesaPetitionti'omtherural incumbentLEC to exerciseits rightsunderFederalor Statelaw

within such30-dayperiod,or' (b) the Commissioninstitutesa proceedingof its own, then IDS

Telcomwill notprovideserviceto anycustomerlocatedwithin theserviceareain questionwithout

prior andfurtherCommissionapproval.

6. IDS Telcomacknowledgesthat any right which it mayhaveor acquireto servea

rural telephonecompanyserviceareain SouthCarolinais subjectto the conditionscontained

herein,and to any futurepolicies,procedures,and guidelinesrelevantto suchproposedservice

which theCommissionmayimplement,so longassuchpolicies,procedures,andguidelinesdonot

conflictwith Federalor Statelaw.

7. The partiesstipulateand agreethat all rights under Federaland State law are

reservedto therural incumbentLECsandIDS Telcom,andthis Stipulationin nowaysuspendsor

adverselyaffectssuchrights,includinganyexemptions,suspensions,ormodificationstowhichthey

maybeentitled.

Page 19: BEFORE THE PUBLIC SERVICECOMMISSIONOF

8. IDS Telcom agrees to abide by all State and Federal laws and to participate, to the

extent it may be required to do so by the Commission, in the support of universally available

telephone service at affordable rates.

9. IDS Telcom hereby amends its application and its prefiled testimony in this docket

to the extent necessary to conform with this Stipulation.

AGREED AND STIPULATED to this+~ day of Q+ , 2000.

IDS Telcom, LLC: South Carolina Telephone Coalition:

Lance J. N S einhartLaw Offi

Lance J. N. Steinhart6455 East Johns Crossing

Suite 285Duluth, GA 30097(770) 232-9200

M. John wen, Jr.Margaret M. FoxMcNAtR LAw Fnnvr, P.A.Post Office Box 11390Columbia, South Carolina 29211(803) 799-9800

Attorney for IDS Telcom, LLC Attorneys for the South Carolina TelephoneCoalition

8. IDS Telcom agrees to abide by all State and Federal laws and to participate, to the

extent it may be required to do so by the Commission, in the support of universally available

telephone service at affordable rates.

9. IDS Telcom hereby amends its application and its prefiled testimony in this docket

to the extent necessary to conform with this Stipulation.

AGREED AND STIPULATED to this --'_--7'4a'day of _) C___

IDS Telcom, LLC:

?Z

Lance J. M.

!einhart

Steinhart

6455 East Johns Crossing

Suite 285

Duluth, GA 30097

(770) 232-9200

South Carolina Telephone Coalition:

M. John B_wen, Jr.

Margaret M. FoxMcNAIR LAW FIRM, P.A.

Post Office Box 11390

Columbia, South Carolina 29211

(803) 799-9800

,2000.

Attorney for IDS Telcom, LLC Attomeys for the South Carolina TelephoneCoalition

Page 20: BEFORE THE PUBLIC SERVICECOMMISSIONOF

ATTACHMENT A

South Carolina Telephone Coalition Member Companiesfor Purposes of Local Service Stipulation

ALLTEL South Carolina, Inc.

Chesnee Telephone Company

Chester Telephone Company

Farmers Telephone Cooperative, Inc.

Ft. Mill Telephone Company

Heath Springs Telephone Company Inc.

Home Telephone Company, Inc.

Lancaster Telephone Company

Lockhart Telephone Company

McClellanville Telephone Company

Norway Telephone Company

Palmetto Rural Telephone Cooperative, Inc.

Piedmont Rural Telephone Cooperative, Inc.

Pond Branch Telephone Company

Ridgeway Telephone Company

Rock Hill Telephone Company

Sandhill Telephone Cooperative, Inc.

St. Stephen Telephone Company

West Carolina Rural Telephone Cooperative, Inc.

Williston Telephone Company

ATTACHMENT A

South Carolina Telephone Coalition Member Companies

for' Purposes of Local Service Stipulation

ALLTEL South Carolina, Inc.

Chesnee Telephone Company

Chester' Telephone Company

Farmers Telephone Cooperative, Inc.

Ft. Mill Telephone Company

Heath Springs Telephone Company Inc.

Home Telephone Company, Inc.

Lancaster Telephone Company

Lockhart Telephone Company

McClellanville Telephone Company

Norway Telephone Company

Palmetto Rural Telephone Cooperative, Inc.

Piedmont Rural Telephone Cooperative, Inc.

Pond Branch Telephone Company

Ridgeway Telephone Company

Rock Hill Telephone Company

Sandhill Telephone Cooperative, Inc.

St. Stephen Telephone Company

West Carolina Rural Telephone Cooperative, Inc.

Williston Telephone Company

Page 21: BEFORE THE PUBLIC SERVICECOMMISSIONOF

BEFORETHE PUBLIC SERVICE COMMISSION

OFSOUTH CAROLINA

Docket No. 2000-NUMBER-C

Docket No. 2000-414-C

Re: Application of IDS Telcom, LLC for a )Certi6cate ofPublic Convenience and )Necessity to Provide Resold and Facilities- )Based Local Exchange and Interexchange )Telecommunications Services in the State )of South Carolina )

)

CERTIFICATE OF

SERVICE

I, ElizaBeth A. Blitch, do hereby certify that I have this date served one (1) copy of the

foregoing Stipulation upon the following party of record by causing said copy to be deposited with

the United States Mail, first class postage prepaid to:

Lance J.M. Steinhart, Esquire6455 East Johns CrossingSuite 285Duluth, Georgia 30097.

November 3, 2000

Columbia, South Carolina

E th A. Blitch, Legal AssistantMcNAIR LAW FIRM, P.A.Post Office Box 11390Columbia, South Carolina 29211(803) 799-9800

BEFORETHE PUBLIC SERVICECOMMISSION

OFSOUTHCAROLINA

DocketNo. 2000-NUMBER-C

DocketNo.2000-414-C

Re: ApplicationoflDS Telcom,LLC for a )Certificateof PublicConvenienceand )Necessityto ProvideResoldandFacilities- )BasedLocalExchangeandInterexchange )TelecommunicationsServicesin theState )of SouthCarolina )

)

CERTIFICATE OF

SERVICE

I, ElizaBeth A. Blitch, do hereby certify that I have this date served one (1) copy of the

foregoing Stipulation upon the following party of record by causing said copy to be deposited with

the United States Mail, first class postage prepaid to:

Lance J.M. Steinhart, Esquire

6455 East Johns Crossing

Suite 285

Duluth, Georgia 30097.

November 3, 2000

E_l_th A. Blitch, Legal AssistantMcNAIR LAW FIRM, P.A.

Post Office Box 11390

Columbia, South Carolina 29211

(803) 799-9800

Columbia, South Carolina