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l'- ~- -------------------- "-o c_ K _ .. ,_,_ - ,_ ,. _____ _ I lntht"Maet tr or _ co CY- ----- C-J 1- ---- IN THE MATTER OF THE APPLICATION OF PAETEC COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO _ PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA Public Utilities Commission of the State of South Dakota ------------ - ----

oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

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Page 1: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

l'-~---------------------"-oc_K_ .. ,_,_-,_,. _____ _ I lntht"Maett r or _

co CY------C-J 1-----

IN THE MATTER OF THE APPLICATION OF PAETEC COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO _ PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA

Public Utilities Commission of the State of South Dakota

------------ - ----

Page 2: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

'-' ~:t,-....On~1 \."l..'\'."~ :,nu.n ,"l ~,-1 X' '1.~-.~ .t,,1\.: !,'\'\"'7 \Jlr TU.lJ'lt..Y,,.l (!r:1 , : , 1'1..'\' ... --.ncu ,:.•:1 ,. , _,....

V AOVE R~ IG

Wil ham Bullard. fal"CUII \ C D1rec1or Sou1h D,1kot:i Pubhc 11i111cs Comnuss,on 500 E. C lp110I f\\ C

Stale C:1p11ol Building. F1rs1 Floor Pierre. South Dako1a 5rOI

','1., 't'l OHk."1 OIQl\UNl A\(.'1.'l

"•Y,b~'YIC\,!!Q9Q8 Tt1ltl k. I l!UI HS.QS...'\1

. ... --Nnti!l!I: 9':t>

llC SON

Re· Annhcauon of Pacicc CoomJUmc;mons Inc

Dear Mr. Dullard

Enclosed for fihngon behalfofPaeTcc Commum Jl1ons. Inc ('"PaeTcc .. ) arc anonguul and ten (10) corm-s or Pacrcc·s appltcauon for a Ccrt1fi Jle of Authority 10 pro\'ide 101ras1:1 1c 1nH.-rc:< chanse 11:!e,:ommumcattons scn·1ccs m South Dakota. Also. please find enclosed a check fo r S250. made payable 10 !he outh DJlo1a Pubhc U11 l1t1es Comm1ss1on. 10 co,er the requ1s11c fi ling fee.

Plc:ise d:ue-stamp the enclosed c,1ra cop) ofth1s lcncr and relum 11 m the self-addressed. postage-paid en, elope anachcd Should ~ ou h:l\ c :my questions concerning this rilmg. please do not l11:s11ate 10 contact the umkrs1gncJ

Enclosure cc: R1ch:ud E. ualagana (\\ o encl )

J T Ambrosi An:mdashankar ~I Jl'umdJr

Very truly ),Ollrs,

Dan Fm: .cc R Ch111

Coun cl fo r PJcTcc Commumc:1.11ons. Inc.

Page 3: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

BEFO RETII E SO UTH DAKOTA PUHi.iC UT ILIT IES COM~I ISS IO N

Petition of

P:.eTec Communira lions. Inc.

For a Ccnificatc of Authority 10 Provide Resold lntrast:uc lntcrcxrhnngc Tclccommunic111ions Services Within the Stale of South Dakota

Docket 10 .

PacTcc Communications, Inc. {"'PacTcc"' or " Pc1itioncr''), by its undersigned counsel and

pursuant 10 Section 49-3 1-3 of1hc South Dakota Codified Laws and the Rules of the Public Utilities

Commission. hereby submits its petition for a Ccn ificatc of Au thorit)' lo operate as a reseller of

intras1;11c in1crcxchangc tckcommunications scrv11:cs. In suppon !hereof. Pctilioner provides the

fo llowing infonn:11ion as well as 3 proposc.·d in itial uirirf:

I. Petitioner',;; legal name is PacTec Communications. Inc. Petitioner may be reached

at its principal place of business:

290 Woodcliff Dri\'c Fairpon. New York 14450 Tckphonc: (7 16) 340.2500 Facsimile: (7 16) 340•2563

2. Correspondence or communications pcnaining to this Petition shou ld be direc1cd 10

Pc1i1ioncr's auomeys of record:

Dana Frix Groce R. Chiu Swidler Berlin Shere IT Friedman. LLP 3000 r St.. N.W .. Suile 300 Washington. D.C. 20007-5 116 Telephone: (202) 424-7500 Facsimile: (202) 424-7645

Page 4: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

with o COP)' 10:

Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 Woodcliff Orhl· Fnirport. New Yori,. 14450 Telephone: (7 1b) H0-2500 Facsimile. (716) 340-! 563

Qu1.-stions concerning the ongoing operations of Petitioner fo llowing ccrt ificmion should be

dire ll-<l 10 :

J. T. Ambro~i Manager of Regulatory Affai rs PacTec Communications. Inc. 290 Woodcl iff Drl\•c Fairport . New York l~.i50 Telephone: (7 16) J-i0-2500 Facsimi le: (7 16) 3-'0-'.?563

, . PocT cc is a orpora1ion organized and c:-:isling under the 13ws of 1hc S1a1e of

Delnwarc. Pac Tee is au '10rin.·d to lr.1I\S3el business in Sou1h Oakow. as a fo reign corpora1ion. A

opy of Pe1i1ioncr's ccnilica1c ofincorporo1ion and a Cl>p)' of Petitioner's certificate of authorily 10

tr.ms.'lcl business as a fo reign corporation arc attached hcn:mas Exhibit I. PacTcc is a ,,.hollyo\\Tied

subsidiaf), of PncT1.-c Corp .. a Delaware hold mg company \\hose principal busi ness is 1clc..-communi•

cations. Petitioner has no subsidiaries located in South Dakota.

J)e1i1 ioncr's rcsistcr1.-d agent in South l)-.1k0La is:

I IIQ Corporate ·cl"\ iccs. Inc. 9 19 Mai n St. Post Office Box 277 Rapid City. South Dakota 57701

Page 5: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

➔ • l'.1c rc .... ·s ollirc~ Jnd oth.:r kL"~ mcmh,:r\ of i1, man:1g1..·mc111 IL",ml mcludc

,\ runa3 ,\ hesom!'.>. 1•n:i.idcnt und Chief E~...-cutl\c 01lic...-r Jo.....-ph D Ambcrsk~. Prc!'.>1den1 - PJc rec South fohn Baron. Pre:.idenl - PaeT1..·c North BrnJford M. llono. l'rcsid .. ·n1 - l'ae rec Eai.t b.J \,,1rd J. llu1kr. Jr . !'resident - \\'hoki..ak Markel!'.> Richard E. Oualagaro. Exccuti\c.: Vice Prc:sidcn1 and f"reasurcr Rich.,rd J Padulo. E, .. ~uti\C Vice l1rl.'sidcnt - t.nginl..'cring and Opi.·rations D.miel J Vc!1u1i. l·,ccuti, e ice Pri:sidcnl. Sccrc1a0. and GcncrJI Counsel l 1111oth~ J. Bancroft . Vice l'n:sidcnt - Financi:

,\runas ,\ C'hcsonis. Chainnan foscph D. Ambc~lcy John Daron Bradford M. Oono l·dward J Butler. Jr. Richard E. Onalag::ma

All of the m{ti, idu.il.) r..-fcrcnccd ah..>,...- may be r .. ·acl1L"d at 1he addrc'-S listed in paragraph 1 of this

Appl1ca11on

Pi:uuoncr :,rt•l,,.s authority 10 prO\ idc resold imra:-.tate mtcre,chnngc tck-communica-

tions sct\ic"•s 10 sub:,enbcr:-. 10 nnd from all point:- m the South l)al,,.ota and. therefore. S(.-Cks

Sl3IC\\ 1dc Ju1hon1.1tion.

6 [A'snpunn u( Sl'Q jq·, Pac r cc propoi,cs to pro, ,de rc::,0ld intrastate intcrcxchante

tclec(1mm un11:.i.1ion, SC!\ 1n·s. includ ing d1m:1-di:tkd ("1-- ") mc»age 1ckcommunica1ions services.

800 888 8 7 ~-t\ 1ce,.opcrmor .,....t'\ 1c1'!'.>( to pn:.)u~nbl.'<l cu:-.tomersonl~ ). and post-paid cnll ingcard

set\ ices. in South IJJl,,.01:1. l'l· tilioncr's:...·n ic:e:-. \\ LIi be a\J:l.tblc on a full-tune ha.sis. 2➔ hours a day.

SC\CII d:iys a \\eel,.. SubJ'-'Ct to demand and o,crall cconom1L" c1rcumstJnces. Petitioner may

subscqucnll) offer add1t1onal SC!\ ices.

. J.

Page 6: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

Pclitioncr has not ins1allcd nor does ii currcn1ly pl3n 10 install :my equipment, plant,

or facilities in Soulh Dakola. ;\ s a resale carrier. PacTcc will pro\·ide service 0 \'er f:tci li1ics leased

from other carriers. the selcc11on of which wi!I be based on i1s analysis of faeili t cost . suitabili1y.

and quality o f service.

8. ustomers will be billed direc tly by Pc1i tioner using industry acccp1cd methods of

billing and colkction.

9. PaeTL-c 's toll -free number fo r customer inquiries is (877) 4-PAETEC (( 77) 472-

j832).

10. Iclc:communic;11ions Exnrtiencc: PaeTcc 's management 1eam is ,\ell qual ified to

execute its business plan. h;wmg e.x1cns1\'C managerial. financial. and technical experience in the

telccommunica1ions industry Descri ptions of the telecommunications .md m1magcrial CXJ>ericnce

o f Pc1i1ioner' s key personnel :ire :utachcd hcrL1o as Exhibit 2.

11 . TckcommunicaliODS )\u1h9ri1,.,1tiops: PacTcc was fomted 10 provide all fom1s of

tclccommunica11ons SCl"\'ltes. including resold local exchange and intcrcxchangc services. PacTcc

is in the process of seek ing authority. where req uired. 1hroughou1 1hc United Stales to provide

competitive resold intrastate intcrcxchangc telecommunications services. PacTcc currently is

au1 horizcd to provide resold intr.1s1.atc intercxchangc lelccommunic:J.lions services. by ,·irtuc of

ccnific:uion. rcgistr:nion or tari!T requi rements. o r on an unregulated basis, in Cali fo rnia.

Massachusetts. r-.·tichig:m. New Hampshire. New Jersey. Ohio. Rhode Island, Texas, and Virginia.

Pae Tee has pending applications fo r authori ty in Alabama. Connecticut Dd::awarc. Florida. Georgia.

Illinois. Maine. Maryland, Nevada. New York, South Caro li na. and Vennonl. In addition. PacTcc

is currently authorized to provide compe1i1i\'e local exchange telecommunications services in

. 4.

Page 7: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

Massac husetts :ind New Jersey. PacTcc has pending app lications 10 provide compc1i11ve IOC'al

exchange 1clcco111111umcat1ons scrYiccs m Cahfomw. Conncc1icut, Florida. Illinois. Maryland.

Nt..•w York . Pcnnsyl\'ania. :md Virgima.

12. Pac Tee has acCL"SS I0 the financ ingandcapi lal necessary 1oconduc1 the 1clccornmuni•

cations opcr.i.11ons as spec ified m 1h1s applic:.tion. As a re.sale carrier. PaeTcc will rely upon i1s

cxis1ing personnel and 1cchnolog1c:ll :md linancial resources to prO\•idc in1ras1a1c services. Any

:1ddit1onal in\'cstmrnt nccdC'd to offer the proposed services will be furnished by PaeTcc Corp .. its

parent company.

In support or 11s appl1ca11on. Pac Tee submits lhc attached consolidated li n:111ci::il st;itcmcnts

of 1ts parent. i>.1cTcc Corp .. for the fourmon1hscnd\.-d Augus1 31. 199 • which indicate that PacTcc

Corp. had current assets of S5.9J 2.J 17. wh ich excccd1.-d currem liabi li1ics of S228, 149. providing

workmgcap11:l.] ofSS.71 t.268 :is of August 31. 199 . P.1cTcc also submits its fin~mcial sttucmcnls

for 1he fou r months endL-d Augus1 31. 199 . With a cess to subs1an1ial financi:1I resources 1hrough

its parcnl corporation. PacTec Corp .. P:u:-Tec 1s financially well quoli ficd to provide the tcl ccommu­

nic:u1onsscn ices proposed m 1h1s application. The financial s1a1cmcn1sof PaeTcc and PacTccCorp.

arc 3ll3Chcd herc10 as Exhibit 3.

13. Attach<.-d hcrc10 as fa lub it -4 is 3 copy of Pcti1ioncr's proposed 1ariff. con taining

PncTcc"s r.11es. tenns. and cond1t1ons of service for 1he services proposed herein.

l -4. P;1eT t.."C has no! finah7.t."d 11s marketing plan al 1h1s time. Pac Tee expects that inili31

marketing vchtcles may ind :de d1rec1 mail and limned pnntcd advertising.. PacTcc has no current

plans to deploy a Sllcs forte w11h111 the region. but,, ill assess whether and to what extent 10 deploy

.5.

Page 8: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

such a force as business dc\'clops incc racTcc·s marketing plan has not been tinalizcd. PacTcc

docs not ha\'e any s:implc promo11onal material.

15 TI1e cn1ryof PneTt.-c into 1hc 1cle(ommu11icntions business in SOltlh DakOla will scr\'c

the pub he interest by creating greater compcti lion in the inicrcxchangc marketplace and pcnnitting

customers to achie, c increased cnicicnc1cs and cost savings. PacTcc's proposed in1rasta1c sen •iccs

will enhance the scn·iccs av:ulablc to consumers and increase consumer choice through innov:iti,·e.

di\'ers,fied. and reliable service offerings. Consumers will benefit both dirccli)' as a result of the

cornpcuti\'cl)' pnccd ser\'ice offerings. Consumers will benefi t both direc tly as a rcsuh of 1he

compcti1ivcly pnccd sen•1ccop1ions 3\':tilable from Pac Tee and also indirectly as PaeTcc's presence

incrca.ses 1hc mccn11, es for other tclcconununica11ons provu..lcrs to oper.\le more efficiently. reduce

pnccs. and ofTcr more inno, athc sen·ices. i\ppro,·al of1his Petition. therefore. will serve the public

interest of the State of S.Juth D:tkota.

WHEREFORE. Pac Tee Communications. Inc., respectfully rcqucslS that the South Dakot::a

Public Utilities Commission gr . .1111 the rcqucstt.-d authori1y to operate as a rL-scllcr of intrastate

intcrcxchanyc telecommunications services in South O.1ko1a.

Dated: Scplcmbcr 29. 1998

Respectfully submiuc..-d.

cc R. Chiu SWIDLER BERLIN SHEREFF FRIEDMAN. LLP 3000 K St.. N.W .. Suite 300 \Vashing1on. D.C. 20007-51 16 Telephone: 202/42J-7500 Facsmulc: 2021.i2.s. 7(>-l5

Counsel for PacTcc Communicauons. Inc.

. 6 .

Page 9: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

EXlllBIT I

EXfll 81T2

EXHIBIT 3

EXlllBIT 4

VERIFICATION

CERTIFI ,\TF OF IN ORPORATION AND CERTIFICATE OF A ·nmRITYTOTRANSACTB SI. ESS

MANAGEMENT QUALIFICA 110, S

FINA Cl1\L INFORMATION

PROPOSED TARIFF

Page 10: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

CERTI FIC TE OF INCORl'ORA TION AND CERTIFICATE OF Al1 IIORITY TO TRANSACT U SI NESS

Page 11: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

NEXT

DOCUMENT (S)

BEST IMAGE

POSSIBLE

Page 12: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

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Page 13: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

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Page 14: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

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..._., ..... _,..,..lallall Plili• .w1· ... i..= ... 1u■1 .. .,-...,-ri,lol ~..,..-1111-•~l'il•- .. ,• ... •M•Caclflcaltot ~ ~ • .,.....;volt tl1WJd\Oldlt• ,rdlliolffl~ ,i~ ar'oilloc-..t._

. (I) ' ,...,.~v nc·~ ... , ..talalo ioaifl!IC•• ., ,,;'_ 10

,._ IUdf"" ..;,--• .,~1-onif-. •~ • 11oa1 ot llM Cwponlia ottl-11« ' ..........,; ,.,_...J _ _ Wlllilft, lnli-G!l'°""'Cllli,pri». qaillll .. ,u,Jlllli.1111,ilhy ., ..... ...,._ ........ ~wuil""'9CM·-• .....ir,, ,..,c,.clil• Qll11aNC11upaiie, ·~••~ .. ._Ointtllc...,.._ra ...

Page 16: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

(e) 1a4aootna,lgifp1 P.ffialovw 1M Acron eC rbc Comeulfoo. nc c..,....... '"'1• IO"'° 111111 -1111 r- d .. ,o d11t ~, dM lloonl of Ill-., &IPI rf1•• •~. Ud • N ~• of upcu1, 10 •r ~ « • •• Af IM~ oono , __ fllCMpNM-.ol dll1 Pnsnpll widl .,._,ION -Ille---e/-ttld'-t ...i-.111111e C<llpondol.

Tho ........... b ... _.,.,...,I C4rpotllloo - tM lawa ol ,_ SIIIO ol o.--u., _,, ft .. Ud - ,~la c..iltlaw: 1114 -fte, thtt t1te 1K11 ...,._.,. _,.., ,1ia .. -,., .......... ..,.,1111<11M12t11o~,., Ma,,ltN.

. ~! . . 1 '

•• I • ~ " • , .. ..

Page 17: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

OFFICE OF THE SECRETARY OF STATE

CERTIFICATE OF AUTHORITY

I, JO YCE HAZELTINE, Secretary or State of the State of South Dakota, hereby certify that the App lic ation for a Cert ifica te of Authority or PAETEC COHHUNICATIONS , INC . (O E) t o tr ansact business in thi s state duly signed and verlfieo pursl1ant to the prov isions of the South Dakota Corporation Al. ts , have been received i n this office and are fauna to c onform to law .

ACCORDINGLY an d by virtue o f the a uthority vested in me oy la •. I hereby issue this Certificate of Authority and attach hereto a duplicate or the appli cation to transa c t busine ss i n this state un der the name of PAETEC CO HM UNIC AT I ONS , INC .

I N TESTIMONY WHEREOF' , I h ave her eunt o set 1.1 y hand a nd a f f ix ed the Great Seal or the State of Sout h Dakota . at Pierre . the Cap i tal , t his Jun 5. 1998 .

Page 18: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

(2) I tne ~ ___,_not contaon tho w<Wd •-·· ·company·, 'il1COIJ)0l'lled' or "limited' o, ooeo not n an abt:rev•ation done of sucn 'tlrO'ds. then the name of the co,p:ntion with the word or abbreviation 'lltt11Ch 1t elects

to add thereto r01 u,e 1n Un state ,s

(3) S1ace'l'ltlefe 1nco,porateo.,QB,A="'W"'A~RE=------FedilfWTupayerlCW-'1"'1•c,1,e55..,1.,,,0t,.5c_ ____ _

(4) The date of rtl 1nc:apora,on It =512.,..IIN,.._ _____________ and the period ot its durlltion,

'M'lteh '""fbepe,petual, it ~-=~ET=UA~L~--------------------­

(5) The addrma of its pril"Clplll office In the-• or cx,unt,y under the laws of which it It inco,porated is

-~1~20,....,,QRA.,..NGE.,..~luI~RZZI...,_....,WJ~L~MwlNG,,..T~ON,,_.QC.._ _ _ _ _ ______ z,p~ ~lH-01~---mailing ~na ,t different from at>ove is: _210..,,._,,woooc .... ..,.La1lffcc.,PBIY_,c,E;_ ____________ _

-----------~•~AlwRPORT=~lfY~--------~pCooe_1~"50=---­

(6) The street acldte:sa, 0< a statemer1 lhal U.. ia no_,_. addr9-. d ita propoeed regilte,ed office in the Stale of SOIJttl O.ota 11 f19MAINSTRS;T PO .tOXm RAPIOC[TY so ,Zjp~s~n~•~·----

and !he name of ils propoud reg i stered agenl i n the State of Soulh D■kola ■1 lhat address i s

HIQCQRPOAATCSIRVICQ •NC

(7) The p!.#pOSeS whlcn 11 Pf'OP)liN lO punue in the trWltlldion d bulineu In the Stale of South Oaltota ... (state specific

purpose) TO PAOVIOE TB.EC QM M I.HCATIOHS SERVICES

(8) The na-nes and retpee:tr.,e addresNI d its Oiredcn Wld offic:iwl .. :

Name Offica' r.ue Street Addrma Coty Stae Z,p

SEE ATTACHED

(91 Trieaggregae numbetolsnarflW\lehlt has ilLJlhontyto ,saue rt~ bydMNs, pif\lalueof Shares, snares1MU'IOU1 par value and senes. If any, 'Mthtn a dau 11.

Numbe< ofSN<es

1500

Par 11.iue per snare 0t statement tNt snares are 'Mth0u1 par value

NO PARVALIJE

Page 19: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

( 1l'1J The o. 19,egate riumbef of 111 1-...cl lhat'N, rt.-nutd by dNMI. pe, value of snares. sn.n 'Ntt1loUt pal' v.iue. Ind sene:t if -any W1trun a ciau. 11

Number of...,..

t (ONE

P• value per Share or statement that Shares we Wltl'W:>Ut par value

NO PAR VALUE

~~:,;:r:,~:.,~:uec.:::~1 !_-,-!,a-;·

00""capital'--:: • ...,...,_ ,-n-::-the-c:aN--:ol:-no-..,- ,.,-,ue-.,---.....,..--,-.....,..ed,..._-,.....,,-,-, the-,-_....,----,-­

,eceived fo, the Issued thar•

(1 2) Thts appllcation 1s accompan.ed by a CERTIFICATE OF FACT or a CERTIFICATE OF G000 STANDING duty ackno.vledged by the secretary of state or other oft'"t01r having CUMod'y of cx,,pora1e recotdt in the state or country under wflOse laws 11 IS 1nco,pcnted.

{13) That suet, C0tpOl'1ltion Sha'I noc directty or indirectly c:omblne or malte-,, contract with arr, incotJ)Of111l«i CO'Tlpany, foreign or dotneetlc. through their Slockholden 01 the truat .. or auigna ot a,ct, Slocithoklers. or With lfff c:opwtnenhlp or assooation of l)el"IClfil. or In WT'f ,namer 'Mmev• to ftx the prica. limit the pn)dudion 01 reguAate the traneportatlon ot liff't product or eommodity so • to prevent ccmpetition ln IUCh ~ . production 01 tranlpOl't.ltio or to Ntablilh exc:euive pncn thefefor.

( 14) That such c:o,pora'Jon, aa conaidefwtion ol its being s-mitted to begin 01 continue doing bulineu 'Mthln the S~e d SOUlh Oli<OIJI. "'H<Xlffll)fywnhafl the ,_ollho uk:tS--rego,dtot.,,.;gn-.

The applic:atlon muad: be signed. In the r::ire-,ce ot a nowy ptA)lic, by the cf'lalrman of the board of directo,s, or by the prl!Sldent or by anocher oft'"ice,.

I DECLARE ANO AFFIRM UNOEf THE PENALTY OF PERJURY THAT THIS APPLICATION IS IN ALL THINGS, TRUE ANO CORRECT.

Dated $,l,lf,,..gl.. 19 _N __

State of __ ~II_EW~>"o~~-K __ _ County ot_~1>""1"'o"e.-S=O=-•----

Ull(Nff(MN Not Seal Nol.,., "-'blc. S._. Ill,,._...,.

anal CG"1~~·~~ 'if ******••·'"·i·····••*•••***************

The Conten! of Appoimmenc bek:lw mu.a be ~ by tne registered agent listed in number soi

CONSENT OF APPOINTMENT BY THE REGISTERED AGENT

1. ~,.~g=C:ORP=O~RA=TE~S"i(=--=='C\arfr.1eg,:'NC:a•ar.•"'Ml=igiii1=rr)------- . nereby give my consent to serve as the

registered agent tot PAETEC CQMMlNCAIIONS INC (c:orporate name)

t, · 22 .. rr

Page 20: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

MANAGEIU AL QUALIFICATIONS

Page 21: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

\ ru na, A. ('hr'l'.oni~ Pr , illrn1 :a nd C hirf f.u·cuthl' om r r

Arun=u .-\ Ch1..•!1Qm!I. }6. 1s the Pre,1Jcn1 ,mJ Chtcl I \1.."\:ull\e Offir..er 0 1 Pal· foe Communu:,mltn . Inc ! >Jm1crl~ \\1th ,\ CC Corp . the p.:m.:m 1..·omp;1n~ tor J\I .\ CC•o\1..ncJ opcrauon:. m the l n11cd States. CanaJa. German~. and the l nnl·J Kingdom. ~1r Che!IOms \\.;h abo l'n:s1den1 .mJ Ch1c:1 Opcr:11111~ Olfo:cr for ACC Glohal Corp \1..h11:h courdma1cJ all purc:ha.,1ng and Ol·I\\ Of~

op111n11..Jl1on for m11:rna11onal 1ermm.it1t>n.) and fiber apac11~ fo r /\CC \1.. orld\qde

~Ir. Ch1.:somi.Jomcd .-\CC 111 ~la~ IQ87 a... Vice: Prcs1dcn1 ofOp,:r:moni. for the: U.S busmc~ um1 In Janual) 1989 he \\"35 nam1..·d Pre,1dcnt lt f ACC Long Oii.tancL' Corp. ( S.). l k has abo b...-cn President of ACC's Can.1.dian opcrauonsanJ fl. lanag1ng 01 rcc1orof ACC's U K. l..'ntcrpnsc pnmanb dunng th..- m11ial start-up ~l'JtS Prior IOJoming ,\ CC. he held \3f1ous positions wi1h m Rochcstt·r I ck-phone orpora11on. no\1.. Fron111..·r Corpor.11ions.

~tr. ChL"scmis holJs a 8 S. in C1\II Engml..'cnng from ~HT and an ~IBA from the Um\crsit~ of Rochc:.tcr In I 995. he n-cc1\ cd the Rochc:.tl..'r l)u.)tnc:.s Journal "Fron) lfndcr ..&ON a"'ard. In I 9Q7. he: recc:1\Cd the Rosc:nthul ,\,,ard for lnnol'ation m Modem Fm.:mce from the Simon School a1 !hi.' Uni\crsi ty of Rochester I-le is an 3c11,c boo.rd member of Compeer. Inc . and lhc Humane · ·iel) of Monroe Coun1y

Mr. ChL"sonisl i\'cs in Victor. Ne\, York . \\ \th his \1..ifc. Pamcla. and thL"u three children. Adam. Enk. and T.:ssa.

Jost ph 0 . Ambtnlty Pr~idt nl - PacTc:c Soulh

Joseph D. Am~rsley has bc..°"'n work mg in the 1cll-commun1ca1ions industry fo r the past sixteen ~cars beginning in 1983 with Micro1cl. In .. in Boca Raton. Flonda.. He ser\'cd as ,·ice Prcs1den1 of Carrier Sal~ for ATCn. licro1el. and fo r the pasl SC\'fn years has ~en Vice President of Carner ales al Niuional Tel of Florida.

Mr. Ambc-rslcy was elcc tl..'d to thL" Board of Din.-ctors of ACTA. one of the ruuional trade assoc ia1 ions rcprescnling intcreschan •e carriers. and served from 199; to 1998. He has tx.-en the ~-crctary/treasurer of the Assoc iated Communications Companies of Amc:rica (ACCA) fo r 1he past fi \'c years.

II.tr. Ambers Icy rccci \"ed a Bachelor of Science lxgrcc from Florida St.ate Uni\"crsity in 197.! and a Mas1cr' s Degree from Rollins ColkgL' in 1976. Prior 10 1983. Joseph wllS the Athlc1ic Dtrl-clOr at the nin:rsil)' of West Florida in Pensacola.

Page 22: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

,la l'k Da ron l'n ~id t nl - l':at'Tt'c "\'orl h

~Ir IJ:iwnJ0llb JI Jc I C'cCommum,a11om,. Im· . \\ ith\l\C't \J ~cat')manJ~C'ntC'nt c, l)C'ncnccmcl uding "-"''-"" ~\."J.r:, m td1.-commum,a11on:, wlc-. anJ .,;u.:, tomcr scn1cc m:ma~cment . ~tost tC'CCnll~ . ~lr. 8 Jron '4.' f"\1,.•d a:, \l icc PrC's1dent ol~a lcs and Cusmmcr Sl·n k c fo r /\CC T C'lccommun1cation:, · s U.S OJXrllllm:,. In JUSI under th ree ~ C'ltS. \I r l3aron ·:, ..:llnuncrcml !hllc:, teams gre,, annual re, cnucs from SJU nulhon 10 0,cr SI OO million .. ind :,U ce:,~(ulh tr.msmom.-d ACC from plain ,andl:t long d1:,1ancr: sale:, and :tel'\ 1cc to a comprchens1, c pri>duct o ffering of long di stance. local. intcmel and data S\.°f"\ICtS Dunng hi s tenure unh r\CL m aJd1t1on to L ~ks. ~Ir. Baron managed Accoun1 Dc,dopmc:nl. C0:,1omc:r ef"\1cc. ales Suppon . lnfonnauon Processing. Uni, erslt) aks and

1.T,1ce. and ~l arkcung .

Pnor t0J01nmg .-\CC m JC)q5, ~1r. Baron St'f"\ed a.s Pks1dt·nt of ETI Technical College. a four-)car engineering college m Clc,dand. Ohio \\'h1lc thcre ~tr Baron had full profit and loss respons1bilil) anJ returned the co lli:ge to prolitab1ln~ follo"mg SI m1lhon in annual losses pnor 10 his arriv.:il m IQ91

). Ir 0 :iron was Vice Pres,dcntofCorporate ales and Tclt'phomc- BankmgatGoldomc Bank through the late '8Cs und c:trl) '90s, m:inaging I IJ people compnsmg the baru..''l largest and most profitable sales and cu.s1omer scr.·1cc groups. Mr Baron ,, as a reg1on.:il manager for Allnel Communic.:itions fo r .:ill of "es1em Ne" Yo rk S1a1e and Pcnns)l\';tni.:i from IQ8j to 1987

~1r. Baron tus an ~tf\ ..\ fr m Srr:JcUSC Uni , crsu~ "1lh a concentration in marke1ing " here he gr3dua1ed surr.mn cu111 laude. He ha.,;;; .1 B 1n Ncuroc;c1cnce from the m\'crsi1y of Rochester.

~Ir Baron h,cs in Fairpon wuh his \\ tfc . Lisa. and 1hear I\\ O daughters. frssica and Lauren.

Richard E. Ottal•g•n• Eucuti,·t Vic-t ~rnidtn t

R1chJ.td Otulagana. 55. tus o,er 30 )CMS cxpcnence m the tdecommu.nicat1ons industry. Mr. 0 11.Jfagana began hiscarttr m tt'l«ommumc:u,on " orlmg wnmcrsasa entra.l office mstallcr fo r

trombcrg-Carlson "hilc ancndmg Rider t.:m, crsny. After h1 discharge from the nny. Mr. Ottalag.:in.:i worked for appro!\1ma1ei} I\\O ~c::in wuh GTE .is an auditor befo re joining Roch1..-ster Tdcphonc Corp. (no" Frontier) m 19 :! While ll t Ro..:hestcr Telephone he hdd managenal positions tn , 1rtually all disc1ph n.:s o, er a :!0•)ea.r span. mcludmg sali:s. opcra11ons. engineering. labor rd.:itions. operator Sc: f"\ ices. regulato l') . x ountmg :ind fi nance

). Ir Onalagana Joined ACC Corp tn I QQJ as O1rc-c1or of Busmcs [x,clopmcnt ,, here his primary dut~ was 10 de,elop a business plan fo r th.31 comp:m) 10 enter lhe local e~changc marketplace as a compc11me loc~I ex ho.nge ca.mer 1·CLEC·1 \\ uh appro, 111 oi 1hat plan b~ ACCs Board of Oirl-Ctors. ~Ir Otulag:ina was promotrd 10 Vice President :ind General ).lanagcr "hen: he had o,erall ri:spons1b1ht) 10 dc,dop and 1mplemi:n1 the local exchange plan . Pnmanly under ~tr.

Page 23: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

011:ilJi;jn.1· :-. h:adc:r:th1p. th1: CLLC suh,1J1:10 1-c:camc the: tirs1 pro1i1abk Cl t-C m the: l 'mh.-J !llatc::, " 1th :1nnu.1l11c:J rt•, c:nuc:s of :ippro,mu 1d~ SbO mil hon at th.: c:nd 01 199 Bcc:iu--A· of h1:, d.ul~ m, ol,c:mcnt. the: CLEC N· J.nlc both nc:1111\.'.omc and \.'.3."lh 110" pos11,, ... appro,1ma1..-l~ thrc:.: ~c:ars :ihc:arJ ,ll th,.: c:"'\pe"Ctcd result m the:" bu..,,mc:..,,s plln

\l r Otulag:tna holds a bachdor·sdcgrc:c: m accounungand has nwnc:rous h.-chnical 11.-l .. -commumc:t• 11,in:-. .,·,mr~·..,, 10 his crc:d11 I k Sct\ .:s .1.\ Chamnan of1h .. • Board 10 1h..- ·ummi: hdc:ral Cr~·d11 t:mon. ;I.I r Onala~a.m is ac11 ,c ma ,:uiet\ of c1..1mmum1, ac11 ,·11 1cs in Rochcsicr. ~c,, Yori-.. \\here he rc: :,idc:s \\11h his \\1 lc. Ji..·an. :ind daughter. L~nnc. ·

Rithard .f. Padulo E1« u1 h r \ ' icr Presidrn r of Enginrtring & Optnir ion

:-.Ir . J>Jdul,, 1s joming PaeTec Commumca.1ions ,, nh o,c:r J-1 ~cars of expenc:nce m 1h..­u:lcconunumc:m ons indus1ry. ~tr. Padu lo s1a.rtcd hi s can-er in the .S. Am1~ as :i comm umca.11ons speci:ihs1. From therc. Mr. Padulo " as c:mploycd a1 Rochcs1cr Telephone Corp .. no" known as Fron111:r CommunicJtions. His 11..-chmcal l:'Xperience includes Cc:"ntral oflicc sw11chmg. op<r:n1ons and teaching swit h cenlc:r opcr,nions and management.

In J9Q:2. ~!t Padulu joined ACC Tclcrommunica1ions as 1he D1rec1or of Opcr:u1ons \\here hc a.ssistc..·d m the man:igcmcnt of the long dis111nce opcr:nions in the Um•ed tates and Canada.

In 199-l . Mr. Padula :iss istt-d in the stnn up of ACCs local 1c:lephone subsidiary. ACC :nional Tckcom. " here hi:" assisted with the business planning and assumed the position of Dit1,."Clor of Opcr:iuons and Eng111-xring . Mc was also invoh·ed in build ing six sw11ch sites and ne1works for the core of the business.

Mr. Padulo has recci\·cd sever.ii certifi cates and certifications for various seminars and tr:iining fac ili ties.

Mr. Pad ula resides in Rochester. Kew York. with his "ifc. Mary: lhc:y tu,c two children.

Page 24: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

Uunit l .J . \'r nuti [~rcul in• \'il"t' l, r t" idcnl , Sccrl'la ~ · un d Gtnl'r::& I Cou n.,l'I

~Ir \ 'cnu11 . 38. comes 10 l'ae re..: Commu1111:a1mn" "1th O\Cr l-1 ~c.1r:-.· '-''JX"rtcncc 1n corporate legal mmter:-. \\ ith aconcemr.u1on 1n 1decommuntcat1ons la\, . Pnor tOJ11m1n~ PJe 1 cc. ~Ir. \ "cnut1 scr.c:d as V,..:'-' l'res1dl·nt and General Coum,d fu r ACCT dccommunica11ons m Rochi:sl\·r. :,,.:C\\ York . ,,i1h rcspon:-.1b1 ht~ fo r Jll ,.,1 ,\ CC's l nH~·J Simes legal and regulo.tor) opcrJ11on:,. ~Ir. Venuti Joi ni:d ACC m 199-1 Jnd acu,d~ suppon'-'d .111 aspects or .-\CC"s long di stanc'-'. Cll:.C. lmcmc1. :md data scr. ic '-'s produc1 offerings l ie nl so successfully guided ACC"s publicl} trndcd parent compan~ . ACC Corp. 1hrough a number of acqu1s111ons. 1innnc1ng transo.ct1ons. and second a.-:, stock offerings. Prior 10 assuming the Ciencral Counsel rol e :n ,\ C. ~Ir. Venuti spent just under 10 ~cars m pm111e practice wuh Bond. Schocnl-cl,,.. & King. the largest Im, firm in central NC\\ York. Mr. Venuti built a success fol ge neral corporntc prar1 icc scr. ing 1hc ,·arious nct.-ds of the business commuml~ . ,,hile also developing 3 spcc1ali1.cd pr.ict1ce focusing on 1t:·lccommunica1ions-rela1cd m:mers.

~tr. Venuti holds a J D. from 1hc Stale Unt\ersity of New York :11 Buffalo School of Law. ,, here he gradua1cd Magna Cum Laude. Hc also h:is a B.,\ .• ~lagna Cum Laude. from Syracuse University. Mr. Venuti is a mcmbcr of1he ,\ mcricnn Corporate Counse l Assoc ia1ion. the Federal Communica­tions Oar Association. the ~C\\ York 1a1e Bar Associa1ion. and the Onondaga County Bar Associ:i110n

~-Ir. Vcnuli resides 111 olva). Nc:w York. wi1h his wife. Pnulctte. arJ their thrt.'C chi ldren. Brian. Kimberl). and Gina

Ti mothy J . Banc-roft Vice Prrs idrnl or Finance

~I r. 0:.lncroft J01ns P:ieTec \\ith over 25 years of t"<pcricncc in the communica11ons indus1 ry. havi ng hdd a variel ) of penincnt pos11ions \\i th Fron111:r Corporation and m,.,s1 recently. ns the Vice President of Finance ora subsidiary of Citizens Commumcaiions. flis di,crsc experience in ludes markeung. str::ucg,c business planning. merger.; and acquisitions in addition to a 1radi1ional corporate firunce role and pe pective.

~Ir. Bancroft 's carecr accomplishments include the comple1ion of a 5-'0 million debt financing fo r Fromii:r · s long distance subs1dillf) . leadership of marketing ini1iat1 , l':S and compcm1ve bid proposals 1ha1 gamed and reuuneJ ke) cus1omcrs. and the SUCCl'SSful negot111t1on or str.i1egic in1ercoon«1ion and plrtilering agr«ments wnh intlusuy pla~er

Mr Bancroft holds a Ba helor of Sc1cncc dcgree m Business Administration from the Rochester Institute ofT echnolng~ :ind pan1c1pa1es :is a par ls and recrcat1on comm1ss1oncr in the comn1uni1y of Pcnnton

~t r B:incroft resides m F31rpon wnh his v.1fc anJ fami l~

Page 25: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

FI NA~C IAL QVALIFI CATIO~S

Page 26: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

l'ARE~r OF Al'PLtCA~r

PaeTec Corp . Conaolidated PiMncial Statement•

Por the Pour Month& 2nded Auguat 31, 1998

Page 27: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

John M. McMahon Certified Public- Acmuntu\t

491 Wt11Wh1trwyx.o.d Penlidd, N- Yct'k I~

Sept ember 1 8, 1998

The accompanyi ng consolidated Balance Sheet and Income St.itement for PaeTec Corp . for the four month• ended August 31, 1998 , have been compiled by me .

A compi lation is limited to preaenting in the form of financial atateme.nta information that ia the represent at i on of man&9"ealeJ'lt . t have r.ot audi ted or rev iewed the accoq,any.i.ng financial atateme.nta and , accordingly. do not exprea■ an opinion or any other form of a•aurance on them .

:rs~~~~~;.1c:n~1~g;e~ci~e=~ ~t~;~t~r~r :!~.11:.~h~ ~~~~=~1X1:~i~~~~--~~~~~~us;anr~p~~=. ti~n~~:1 e:atement, they might influence the uaer•• conclusions a.bout the company•• financ i al poa i tion, reaulta of operation■, and ch&ng•• i n f i nanci al poai tion .

Accordingly, theae f i n..ncial acaterr.ent ■ are not de■igned ! or those who are not intormed about ■ueh mattera ,

John Mc.Mahon , CPA

Page 28: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PaeTec Corp. Consolidated Balance Sheet

August 31 , 1 998

current Aaeets Caeh Subscription Receivabl e

Total current Aeeete

Pixed Aaaeta Squipment " F'Urni ture

Net of Depreciation Organization

Net of Amortization

Total Fixed Aseeta

Other Aaaeta security Oepoait■

Total Asaeta

Liebil itieu current Liabilitiea ACCOW\ta Payable

Acc~:d !!FT!!e:zu1 AccrueV tOl-K Payable

Total current Lia.bilitiee

Long Term Liabilitie■ Loan from Shareholder

Total Liabilities

Sharoholdor, ' r,guj tY

s

s

3,942,497 1,999,920

5,942,417

369,383

92,165

461, 5'8

19,335

6 , 423 , 300

91,522

105,304 31,323

228,14.9

409 , 913

638,062

Stock 6,986,887 Reta i ned !a.ming• (1 ,201,649)

Total Shareholders • Equity S, 785 , 238

Total Liabi l itiee and Equity $ 6,42 3 ,300

See accoWltant • e compilation report .

Page 29: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PaeTec Corp. Con•olidated Income Statement

August 31, 1998

Income

2xpenae■

Payroll and Payroll Taxe■ ouea and Feee Insurance Rent and Utilitie• Telephone Maintenance Office Supplie■ Equipment l,ease Prof ess i onal Fees Travel, Meals, Conferences Amortization Depreciation

Tota l B:xpeneea

Loee from Operationa

Ct.her I r • .:ome

Nee Loos

975 , 451 9 , 587

34,569 42,741 5,637 6,200

18 , 840 2,219 6,031

83,838 4,480

25,101

1 , 214 ,6 94

(1,214,694)

13 , 045

$ (1,201,649)

see accountant •• compil at i on report .

Page 30: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500
Page 31: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

John M. McMi hon Ce1i.&af Puhlk /u:laJ Ultant

Septefflber 11 , UH

Tha ac.,_y1ng Balance abeet and Inc:,... Stat--nt tor PaeTec COaffl.m.icatio«La , Inc . for tba four lfl0ftth.a ended AU9Uat ll, 19H, hew been c._11..s by • .

A. coaipilatioa 1 ■ li'lllited to praaanting 111 the fora of financial etateeant• infor,aation that i ■ the

~-e~=t:~o:c of ==-~~nan!1~V:t~~;t:!.s~r accordingly. do~ ex;,re■■ an opinion or any otMr fora of •••urance on thewl .

!t::!::-U:. ~:n:1::•~t;:.=: :~;=t~f~r ~~h~ =:~:11L:~1=. -:.~i~:f~~!P~= · r1!!~r.1 ■tat■aant, they lllight influence the u■ar • • conclu■ iona · &bout tt- 1 COftlJAny ' ■ financial po■itioa. , nault■ of op■rationa, and change■ in financial po■ition .

Accordingly, the■■ financi&l ■tatnant■ are not de■igned for tboa■ who uw not infonwd &bout auch Ntt■r■ .

John MdlahOn, CPA

,.... .. _ ...... ~ ... --.. , .......... .,,c..a..--

Page 32: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PaeTec: C~1c:ati ona. Inc . aalanc• abNt

AU9\lllt. J l. 1111

6a.Ua CUrrent M■eta c:a.b • U,2 , 615

Pi xed M■eta

aquic":i •~!l~on 30,lU 0rgan1aat.ion

.. t. of Aaort1aet1on 12 ,lCS

'l'ot&l Wi.aad Aaeeta •at, OJJ

~bar Aa••t• ••curity Depollita lt,335

Total Meet■ • Ul , lH

Liabilitiee current Lia2>iUti-■ AcCOWlt• ••yelll• • tl , 522 Acc~Pw;~~ 105 , 304 MC~Ol•lt •ayable J1 , l2J

Total CUrrallt LiU>iliti-■ 221 , 1••

1- Tara LiU>iUtiH 1-n hv, lbanholcler •01 , Ill

Total Liabilit.1e■ na , ou

lbenbA141re • Mattx Peid ill c:apital •••""t 1 , 200 , 000 a.ta~ llanwlga (l,214,IHJ

Total lbanholclera• llquity 14 , IHJ

Total Lia2>Ultl.aa ud llqulty e 123 , 311

f'- ac:eountant 1 • C:011Pilation repon .

Page 33: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

P••T•e conm..uucatiorui , Inc . Inc01ne atatement AUQU•t Jl, 1991

lnc091e

lllpenaH

Payn,ll and Payn,11 Tu.a 0\aee and •-• Inaurance bnt and Utiliti••

~i:C:-OM ~=-~= Profeaeional .... Traval, Neala, contanne•• Aaortiaation Depreciation

Total bpenaaa

Lo■■ frae Operationa

t15, 451 t,511

)4,50 t2, '741

S, IJ'7 ,. 200

11,UO 2,2U , ,on

u ,ua 4 , UO

lS , 101

1,2u.,u

(1 , 2U , IH)

IN accountant 1 • COftlPilation report.

Page 34: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500
Page 35: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETECCO~l~I NICATIONS. l~C outh Dakotn PUC Tari IT No. Original Sheet No.

T ITLE II F.ET

INTEREXCHANCF. TEI FCOMMUNICATIONS SF RVJCES

TI1is 1arifT applies 10 the resold long distance imcrexch:ingc tclccommunicalions services furnished by PaeTec Conunumc:uions. Inc. ("'C:micr") between one or more points in the S1:ue of South Dakota. This tan IT is on file with 1h South Dakota Pubhc Utili11csCommiss1on, and copies may be 111spec1ed. Juring nonnal business hours. at Currier's princip:t l place of business. 290 WoodclifTOri"e. Fairpon. New York I.WS0.

Issued: Sep1embtr JO. 1998 Effecth·e: Octo~r 29. 1998

lssutd by: Richard E. Oualagana. E.u~cuth·e Vi« Prcsidenl PneT« ommunicntions. Inc . .?90 Woodcliff Drhe Fairport . Nc-w York 1"'-'50

Page 36: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAl~EC COMM UNIC TIONS. INC u1h Dlkotl PUC Tariff No. I Oni;i r~I Shl*CI No. 2

CIIECK SHEET

The sheets of this 1anfT lrc erTcc11\'C as of !he date sho\\ n at 1hc bo110111 of the respec ti ve shccl(s) Origmal and revised sheets as 11:imcd below comprise all changes from the original tariff and arc cum.:mly ir: effect as of the dnt.: on the bonom of this page.

9 10 II 12 13 14

lillYlfillli

Orig inal Origin:11 Original Original Origmal Original O:iginal Origin:11 Original Origi n::.I Origin::1 Original Original Origin;il

Sliill

15 16 17 IS 19 20 2 1 l2 23 24 25 26 27 2S 29 30 31 32 33

R.llYJ.filQN

Original Origin:il Original Original Original Original Original Original Original Orii;innl Original Original Origi nnl Orignml Original Original Ori~inal Origi nal Origin:tl

lssuL'tl: Scpleml>cr JO , 1998 Effocth•c: October 29, 1998

lsstH:d by: Richord E. Ounlog:111:i, Exec:u1h·c Vire Prcsidcnl PucTt.<t: Communic:.11io11s , Inc, 290 Woodcliff Drino Fuirport , Ne,\ York 14450

Page 37: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC cm1M UNICA TIONS. INC

T J.blc of Contents .

ymN>ls

Tllnffform:u

TABLE OE CO'.\TfNTS

t:on I• Tcchme1I TC"Tms:tnd Abbre,1a11ons

<"Ct1on 2 - Rules :inJ kcgutmons

«tJon 3 - Dcst:np11on or m .ccs

ccuon .J • R:ue ho.. .Jk

Sou1h D:ilo1a PUC Tari![ No. 1 Origi11JI Sheet No. 3

... ..... !

.. J

. . , . ,

.. . 5

.... 8

. 26

. JO

Issued: Sl'plcmbcr JO, 1998 Effrcth·e: Oc1obcr 29, 1998

Issued 11.\ : Ri churd E. Ollnla,;111111, Executh·c Vice President PucTec Communications, Inc. 290 Woodcliff Drive Fairport. 'cw York 1"450

Page 38: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

l'AETEC COMM ~I ATIO~ . l~C South 0Jkou PUC Tlnff 'o. I On~uul ShC't't No -l

The follo" mg are !he on!) symbols uS<.-d for the purposes md1c.:11cd below:

D • Dcktc or Discontinue I • 01angc Rcsulling In An Increase 10 A Customer's Bi! I :,.i - ~!o,·cd From Another Tariff Location N- New R • Change Resu lting In A Rcduclion 10 A Customer's llill T - C'hangc In Tcx1 or Rcgul :uion But 'o Change In Rate or Charge

TARIFF FORMi\T

J\ fillttL~. Sheet numbers appear in 1hc upper right comer of the page. Shccls arc numbered scqucn1iall y. However, new sheets arc occasionally added 10 the 1::iriff. When a new shec1 is added between sheets already in cIT..-et , a dec imal is added. Forcxumplc, a new sheet added bc1 wccn shccls 14 :md IS would be 14.1 .

13 Shttll!1"XW2n..1'.....J.ll!2m · Revision numbers also appear in the upper right comer of each llagc. These numbers nre used tu dctcnninc thl' most current sheet version on file wi1h 1hc Commission. For example, the .Jth revised heel I.J cancels lhc 3rd rc,•ised Sheet 14. Bcc:msc of \'anous suspension pcrio<ls. llcfcrra ls. clc. the Commission fo llows in I heir tarilT appro val proccss. 1l1c 1110s1 current shccl number on fill' with lhc ommission is 1101 :always the 1arilTp;1gc in clft."CI.

Issued: ScplemlJer 30. 1998 Effective: Oelobcr 29, 194)8

Issued by: IUdmrd E. 011:i lag:ma , Exec:u1h·c Vice Prcsidcnl 1•ncTec Communlc:11ions. l11c. 290 Woodcliff Orin:: Fuirport . New \'ork 14450

Page 39: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETEC COMMUNICATIONS . INC.

TARIFF FORMAT...!r2n.ull

Sou1h 0Jko1a PUC Tariff No. I Original Sheer No. 5

C. Pnmgr:tph Numbcnnl! Sequence - There are nine levels of par.igraph coding. Each level of codi ng is subscr\1icnt lo ils nex t l11gh r level :

2. 2.1 2.1. 1. 2. 1. 1.t\. 2. 1. 1.A. I. 2.1.1.A. l.(a). 2.1.1.A. 1.(a).I . 2.1. 1.A. l .(a). l.(i). 2.1. IA l .(a).l .(i).( 1).

0 . ~ - When :11arirr filing is made wi1h 1hc Commission, an updolcd check shcc1 accompanies the tariff fil ing. The cht."Ck sheet lists the sheets contained in the tariff, with o cross reference 10 the current revision number When new pages are added . lhc check sheet is ch:mgi..-d 10 rc0r ct the revision. All revi sions made in a given filing :are designated by an as1crisk (•). There wi ll be no olhcr symbo ls used on 1hc check sheet if these arc the only chnngcs made 10 it (i .e .. 1hc fonnat. etc. remains the same, just revised revision lc,•cls on some pttKCS). The tariIT uscr should refer 10 !he l:llest check shccl to find out ifa particular sheet is the most current on fi le wi1h !he Commission.

Issued: Scp1cmbcr 30, 1998 Erfocli\'c: October 29. 1998

Issued by: Ridmrd E. Ollala~11 n:1, EM-clll in· Vice President PacTcc Communkalious, Inc. 290 Woodcliff Drh•c Fairport, New York 1-'"'SO

Page 40: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAl:.I EC COMM NICATIONS. INC.

EC"rlO~ I. JECJINJC ·\L TERMS M,D ABBREVIAJIONS

Sou1h D:1ko1a PUC T:iriff No. I Original Sheet No. 6

~•An arr.mgt'ment from a local cxch::mgc tdcphonc company or other common earner, using e11her dedicated or S\\ 11ched a ccss. which connec1s a Subscnbcr's location 10 Carrier's locat ion or S\ \ i1chmg center.

1\ U1hon1a1ion Code • A numerical code. one or more of which may be assigned 10 a Subscnbcr. to rnablcCamer 10 identi fy the origin of scr,•icc User so it may rate.and bill the call. ;\ II au1hon1.at1on codes shall be !he sole property of Carrier and no Subscriber shall h.aH· any proJk.•ny or other nghl or inlercst m the use of an)' particul:1r au1hori1 .. 11ion code. 1\ utoma11c numbcnng identific:mon (ANI} may be used as or in connection with 1he au1horii.:11ion cod

Auh1m:mc Numbcnng ldco1ifiq1ion (AND • A type of signaling providctl by a local c,.changc telephone company which au1omat1c:ally identifies the local exchange line from \\ 111ch a e:ill origm:ucs.

~•A postpaid or prepaid calling card issuL-d by Carrier which allows Subscribers :md/or Users 10 make tclc:;,honc e:ills and charge the calls to a postpaid or prepaid account. Calls ch:u-gcd 10 a Camcr•1ssucd pos1pa1d Calling Card will appear on 1he Subscriber's regular month!) ' 111. Calls ch:i.rgcd 10 a Carrier.issued prepaid Calling Card will bc ehargcd against the debit a count

Carrier or ComnJm • Rcfors 10 PacTcc Commumc:uions. Inc.

~ • Refers to the Sou1h D:tl.ota Public Utilities Commission.

lomnwn Ca mer• 1\ company or cn111y providing telecommunications sef'\·1ces to the public.

Jssur'<I : St-ptember JO. 1998 ErTcc1h·e: Ocluber 29. 19CJ8

Issued bJ: Rich a rd E. Ottalagana. Exttu1h·e \ "ice Pn -sidenl l':1eTt'C Communicn1ions . Inc. 290 \\'oodclirT Orin• Fairport, New Vork 14450

Page 41: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETEC CO,\IM UNIC,\TIONS. INC Sou1h D:il.:m:.i PUC Tariff No. I Origin!ll Shccl No. 7

ECTION I . TECHNICAL TERMS ·\~P ABPREVJAIIONS (Cont'd)

I ocal Access andTummort t\rl"aCi.aL.\} • The 1cm1 "Loc:11 AcccssTrnnspon Arc:i" denotes a g,:ograph1cal area cst!lbhshl"d b the U.S. D1s1nct Cou n for 1hc Distnct of Columbia in Civil Action No. 82-0192. w11t11n \\ h1ch a local exchange company prov1dcs communic1uions scrnccs

Mcasurc;:d ('b:m.;c • A charge assessed on a per minu1e basis m c:1kul:mny a ponion of the charges due for a co111ple1cd 1111crc:o.change c:.i ll

Su)•scnhcr Cu~iomer • ll1cp,·rson or legal cn1 i1y,\ hich enters 11110 arr.mgcmc111s forC:1rric r's tclccommume:it1ons SCr\ ices :md 1s n.-spons1blc for payment of Camcr's services.

Iclcconmm111rat10115 • The 1r.1nsm1ss,on of \ 01cc commumca1ions or. subject 10 the 1ransmi ssion c::ip:ibi li11cs of the SCr\ ice. tlw transmission of dau. f:scsunilc. signaling. mch:ring. or other similar communica1ions.

il.ll!l · The timeC:-:ime by which the Subscriber agrees to be SCr\ cd by the Carrier.

~•The pcrson(s) tll'lrzing 'arricr's scn.•iccs

Issued: Scplcm~r 30, 1998 Effttlivc: Oclohcr 29, 1998

Iss ue-cl by: Richard E. Ouala~ana. ExL'(:Ulh·c Vice Pn-sidt•1H PncTt.-c Communicalions. Inc. 290 Woodcl iff Drh''-' Fnirpo11. New York 1"'450

Page 42: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· JlAETEC COMM UNICATIONS, I 'C

SECIIOX 2 RU! ES A~D REGULAJfQ:'\S

2 I ·\pphca11on Of [:m[

South Dakota PUC T:ui ff No. I Original Sheet No. 8

:? I.I Th is tan IT contains the rcgu lnuons and ra1es app licable 10 intras1:m.• resale lckc mmun1c:111ons s<..•n ices pro\Pidcd by Carrier for teh:communic:1tions bc1wccn poi111s withrn 1hc Stoic of South D:ikota. Carrier's scr\lices arc fu rnished subject to the a\·a1l:i.bil11y of facili1ics and subJecl to lhc 1cnns and cond1 tions of this 1arifT.

:?.1.2 The rat s :ind regulations conuuncd m this 1:1.nfTapply only to the sen,.iecs fu m isht.-d by Carrier and do nol apply. unless o therwise speci fi ed. 10 1he lines. fac ilities. o r scn ·1ccs provided b)' a local c~changc telephone company o r 01hcr commo n carrier fo r use 111 accessing 1hc scr,·1ccs of Carner.

2, 1.3 The Subscriber is entitled to !unit lhc use of Carrier's sen·iccs b)' Users at the ubscnbcr's facilities. and m::ay use other common carriers in addi tion 10 or in hcu of

Carrier.

2. 1.-l At the opti t,)n o f the Company, service m:ty be o ffered on a cont rac t basis 10 meet spei,:i:ihzcJ n.-qui rcmcnts oft he Customer not comempl3ted in this tariff :is approved by 1hc , uth D;1ko1;1 Pubhc U11h1ics Comrnission. The 1cm1s of each contr.tct sh;ill he mu1uall~ agreed upon hl'l\\l-Cn the Customer and Company and may include J1 scou111s off of rntcs con tamed hcrcm. nai , cr of recurri ng o r nonrt.-curring charges. charges for specially d signed and constructed scn •iccs not conl :iinc<l in the Company's gcncrnl sen •1cc ofTl·nngs.1Jr01hcr customi t.cd ft:>Jlu rcs. The 1cnnso f 1hc con1r:1c1 m:iy be b35cd partially o r completely on 1hc 1cnn and \'Olumc commitment. type of ong1nat111g o r tcm1inating access. mixture of scn •1ccs or 01hcr d istinguishing features. Sen ice shall be a\'ailable IC' a ll sim il:irly si1u:ucd Customers fo r a fixed pcnod of111nc following the miti:il offering forihc first contract Customer as specific 111 each mdi, idu:i.l contrac t.

Issue.'<! : SeptemlH: r 30. 1998 EIT<-cli n •: Oclober 29. 1998

Issued b~ : Richard E. O trnla~mrn . Exccut i\·c \l ice l'rcsidcnt P:iel'c'(' Cumm unic:Jtions . Inc. 190 Woodcliff Orl\'e F:ii r port . ~ en York 144$0

Page 43: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC COMMUNICATIONS. INC

SECTION 2. RULES AND REGULATIO~S (Cont'd)

2.2 Us.e of Services

Sou1h Dlkola PUC Tariff No. I Origin:tl Sheet No. 9

2.2.1 Camcr's scr\ ices may be. used for 30)' lawful purpose consislcnl with the transmission and S\\ itching parameters of the tclccommunic.:nions faciliti es utilized m the pro\'is1on of services

2.2.2 TI1e use of Ca1Ticr's services to make calls which might reasonably be expected 10 frigJucn. abuse, 1om1cn1. or har.iss :11101hcr or in such a way as to unreasonably mlcrfcrc ,, i1h use by others 1s prohibi1cd.

2.2.3 The use of Carrier's services without paymcnl for service or aucm pting to 3\'0id payment for service b)' fraud ulent means or devices. schemes, false or invalid numbers. or false calling o r credit c:tnls is prohibited.

2.2.4 anicr's ~rviccs:irca\':ufablL" fo r use 1wcn1y-four(2-') hours per day. SC\'Cn (7) days per week.

2.2.5 Carrier does 1101 ir.10sm11 messages pursuant to this tariff. bu! its services ma)' be used for hat purposc.

2.2.6 anier's scr,..iccs may be denied for nonpayment of charges or fo r 01her violations or this tanfT

2.2.7 Carrier"s services may be denied for any use by Customer which is illegal. or posc.."S an undue ri sk or liabi lity lo Carrier. or is obiaincd through fraud or wi lful ruisrcprcscn1a1ion.

Issued: September 30, 1998 EfTl'Cth·e: October 29. 1998

Issued bJ': Richard E. Ollalagana. E.·u'Cutive \lice President Pmffcc Communicalions, Inc. 290 Woodcliff Drh•e Fairport . 'ew York l-'-'50

Page 44: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETEC COMM UNICATIONS. INC.

SECTION 2. RULES ·\NP RFGUl ATIQNS (Cont°d)

2.3 Lj :ihjJj1y o[Cam1,T

South D::1ko1::1 PUC Tariff No. I O riginal Sheet No. 10

2.3. 1 Exccp1 as otherwise s1:ncd in llus section. the liabi lity o f Carrier for damages ari sing out of either. (I) the furn ishing of its sen •iccs. including bul not limi1cd 10 mi stakes, omissions. imcmipt ions, dcl:iys, or errors. or other dcf ccts, rcprcscntations. or use o f lhcsc scrnces. or (2) 1hc failure to fum1sh i1s scn •icc. whether caused by ac1s or omission. shall be limited to the ex1ension of allow:mces to lhe Customer for mtcrruptmns in sen•icc.· a.s set fonh in Section 2.5.

2.3.2 Except for the extension of all w.:mccs to the Customer fo r in1crruptions in scn•icc as set fonh in Sc.-ction 1.5. Carner shall 1101 be li:tblc 10 a Customer or lhird party fo r :iny dirc.'('I. indirect. spc-cial. incidental. reliance. consequential. exemplary or puniti"c damages. including. bu! not limited to. loss o f re\'cnuc o r profit s. for any reason wh:ilsoc\·cr, including, bm not limi1cd to. any :ict o r o mission. fai lure to pcrfo nn. dd:1y. interruption. failure to provide any scn•icc or any fail ure in or breakdown o f fac1lit1es associated with the sen ice.

2.3.3 The liability oi Carrier for errors in bi ll ing lh:it result in O\'erpayment by the Custo11,er sh:111 be li mi1crl 10 :.i crcd11 <.'CjUtt l to the dollar amount erroneously billed or. in ihe C\'cnt 1hat p3)1llCllt has been made and scn •ice has been discont inued. 10 a refund of the amount erroneously bilk-cl..

Issued: September 30. 1998 Effeclh-c: Oclober 29. 1998

Issued b~ : Richard E. Otia lagaua . En-cuti,·c Vice President P!lcTc-c Commu nica tions. Inc . 290 WooddifT Dri n! Fai rport . ~ cw York l+a5.0

Page 45: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETEC co~,,1M NICATIONS. INC.

ECTION 2. RULES ANP REGlH ATIONS (Cont'd)

2.3 Liahj)j\y of Carrier (Cont"d)

South Olko1a PUC Tariff No. I Original Sheet No. 11

2.3.4 Carrier shall not be li:iblc fo r any claims for loss or damages im·olving:

A. Any ac1 or omission of: (I) the Customer, (2) any 01her entity furnishing service. equipment or facilities for use in conjunction with services or focili1ics provideJ by Carrier. or (J) common carriers or warehousemen;

B. Any dch1y or f:nlurc of pcrfomumec or equipment due lo causes beyond Carrier's control. including but not limited 10. acts of God. fires. floods. earthquakes. hurricanes. or 01hcr ca1astrophcs; nalional emergencies. insurrections. rio1s. wars or 01her civil commotions; strikes. lockouts. work Sloppagcs or other labor difficulties; criminal ac1ions taken against Carrier. una\'ailability, failure or malfunction of L-quipmcnl or fociti1ics provided by 1he Customer or third p:mies: and any law. order. regulation or other action o f :my governing authori t)' or agency thereof:

C. Any unlawful or unauthorized use of Carrier's facilities and services:

Issued: Scp1ember 30, 1998 ErTecth·c: October 29. 1998

Issued by: Richard E. 0 1tnlngana, E.l:etuth·e Vice President PacTec Communirotion.~. Inc. 290 Woodcliff Orin• Fairport, New York 1.i...so

Page 46: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC COMMUNICATIONS. INC.

SECTION 2. RUl ES AND REGUl AJIONS tCom'd)

2.3 I jahjJity o[Canicr (Cont 'd)

South Dakota PUC Tariff No. I Original Sheet No. 12

2.3A D. Libel. slander. invasion of pri,•acy or infringement of patents. trade secrets. or copyrights ansmg from or in connection with the tmnsmission of communic:uions by means of Carrier-pro\'lded facilities or services: or by means of the combin:uion of Carrier-provided faci lities or services with Customer-provided foci lit ies or services:

E. Brc:ich in the privacy or security of communications tr.msmincd over Carrier's foci li1i es;

F. Changes in any of the facilities, operations or procedures of Carrier that render any cquipmcnl , faci lities or services pro\'idcd by the Customer obsolete. or require modific:i.tion or allcr.uion of such equipment. facili1ics or services. or otherwise affect their use or pcrfom1 :mce, except where reasonab le notice is required by Carrier and is provided 10 the Cuslomer. in which event Carrier's liaUility is limilcd as set forth in subsection 2.3.1 of 1his Section 2.3.

G. Jcfoccmenl ofordlmlge 10 Cus1omcrprcmiscsresulting from the furni shing of services or equipment on such premises or 1he installation or removal thereof;

Issued: Scplcmbcr 30, 1998 ErTl'Cth·c: October 29, 1998

Issued b,·: Richard E. Oualagana. E.·u!cuth·c Vice President PaeTC'C Communications, Inc. 290 WooddifT Orh·e Fairport , N<'w York 14450

Page 47: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· P1\ ETEC COMM U IC,\ TIONS, INC Sou1h Dakota PUC Tariff . 'o. 1 Original Shee1 No. 13

SECTION 2 BUI ES ANP REGlH AIIOl'S (Cont°J)

2.3 Liahj)ity of Carrier (Cont'd)

2.3.-1 H. Injury to propeny or mjury or dealh to persons. including claims for paymems made undC"r Worker..' Compcnsa1ion law o r under any plan for employee dis.abilily or 1fe31h hcncfi1s. arisi ng out or. or caused by. any act or onussion of the Customer. or the construclion. inst:dl:11ion. maintenance. presence. use or remova l orthe Cus1omer's facilities or equipment conncct1.-d. or to be connected to Carrier's facili ti1.-s:

An)' 111tcntional. wrongfu l act of a Carrier employee when such act is not wi1hin 1hc scope of1he cmployc.-e's responsibilities for Carrier and/or is not authorized by Cnrrier,

J. Any rcpn:scn1:11ions made by Cam er employees 1ha1 do 1101 compon, or th:it arc inconsistent. wi lh the provisions of this t:>.ri!T:

K. Any act or omission in connection with the provision of 911 . E91 I. or similar services in\·olving cmcrgcnc1cs;

L. .\ny noncomplc1ion of calls Jue to network busy conditions;

M . Any c;:a lls not ac tually attemp11.-d hJ be completed during any period that service is unavailabk.

Issued: September 30. 1998 Erfecti\'C~: October 29. 1998

Issued by: Richard E. O u a lagana . E..xeculi\'C Vice President PacTcc Communicn tions. Inc. 290 WoodcliIT Dri,•c Fairport , New York 1""450

Page 48: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· P,\ETEC COMt-. lUNICATIONS. INC.

SECTION 1. R\ ILFS AND REGL'I ATIONS (Cont'd)

2.3 I rnhJl•h· of Carner (Cont'd)

South Dakota PUC Tariff No. I Original ShL-ct No. JJ

2.J .5 Carrier shall be indemnified . defended and held hamlless by 1he Cus1omer or end user from :md againsl any and all claims. loss. demands. sui ts, '-"Xpcnse. o r other :1c1ion or any liabili ty wh.i.lsoc\'er. includi ng allomcy fees. whether sufTercd . made. ms1i1utctl. or assem-d b)' the Customer or by any other p.:my. for any personal injul)' to or dea1h of any person o r persons. and fo r any loss. damage or destruction of any propcny. mcludmg environmental con1amin:mon. whether owned by the Customer orb) .:my olhcr pany. caused or cl:mm:d 10 h:i,·c been caused din.-c1ly or indi rec tly by the 111s1alla11on. opcrat1011 . failure to opcr.lle. m::iintcnancc, presence. condi tion. locat1011. use or rcmo\'.11 of anyCarricr orCustomercquipmcnt or focili tics or service pro, 1dcd b) C::imcr.

2.3.6 Carner docs not ~uar.intcc no1 rn:ikc :my warr.1111y with respec t 10 ins1all:nions l'ro, 1dL-d by 11 fo r use in :m cxplosi \'e atmosphere. Carrier sha ll be indemnified. llcfcndL-d and held hamllcss by the Customer from and ag:iinst :iny and ;i ll c laims. loss. demands. suits. or 01her acuon. or any li:tbility whatsoc\'cr. including :momey fees . " hcther suffered. made. mstiluted or asscncd by the Cus1omcr or by any ot her party, fo r any personal in JUI)' 10 o r dcalh of ;my person or persons. and for .:my loss. damag~ or dcs1ruc11on of a11y property. including em•ironmcmal contami nation. ,,hcthcr O\\ncd by 1hc Customer or by any other pany. caused or claimed 10 have been caused directly or mdir1..-c1ly by 1he 111s1all:11ion. opcr.ition. failu re to operate. m:im1cn:incc. presence. cond1t1on. location. use or remo,•:il of :my cqu ipmenl or fac1ht1cs or the ser.·1cc.

Issued: September JO. 1998 Errec1in ·: OclObcr 29, 1998

Issued b~·: Richnrd C. O1ta laga1m, Execu1i,·c Vice Pn -sidcnl Pat'Ttt Communica tions . Inc . 290 Woodcl iff Drh e f a irporl. ;\"1:w York 1-1-&50

Page 49: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC COM M UNICATIONS. INC.

SECTION 2. Rt 'I ES AND KFGULATIONS (Cont'd)

2.3 Liahiluv of Carrier tCont'd)

South Dakota P C Tariff No. 1 Orig inal Shcc1 No. 15

2.3.7 Car.icr ilSSumcs no responsibi lity fo r the avail:ibility or pcrfonn:mce of any cable or s:uclli1c sys1cms or related facili1ies under the control of other entities. or for other facilities pro,idcd by other enti ties used for service lo the Customer. even if Carrier has aclcd as the Customer's age111 in arr.inging for such faci lities or services. Such facilit ies arc provided subject lo such degree of protection or nonprecmptibility as may be provided by the other cn1i1ics.

2.3. Any claim of whute\'Cr nature aguinsl Carrier shall be deemed conclusively to h:l\'e been waived unless prcsen1cd in writing 10 Currier within thirty (30) days afler the dale of1he occurrence 1ha1 ga\'e rise 10 the claim.

2.3.9 CARRIERMAKESNOWARRANTIESORREl'RESENTATIONS,EXPRESSOR IMPLIED. EITHER IN FACTOR BY OPERATION OF LA W. TATUTORYOR OTHERWISE. INCLUDING WARRANTIES OF McRCHANTABILIT Y OR FITNESS FOR ,\ PARTICUL,\ R USE. EXCEPT THOSE EXPRESSLY SET FORTH HEREIN.

Issued: September 30, 1998 Eff«th·e: October 29. 1998

Issued by: Richard E. Onalagunu. Ex«uti,•e Vice President PaeTec Communications, Inc. 290 Woodcliff Drh·e Fuirpurl , New York I.USO

Page 50: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

P,\ETEC COMM UN ICATIONS. INC.

ECflON 2. RULES AND REGUl A TIONS (Cont'd)

2.J Rcspons1hilj1ies of the: Subss:cihcr

South Dako1a PUC Tariff No. I Original ShL-et No. 16

: .J. I TI1c Subsc riber 1s responsible fo r pl acing any necessary orders: for complying with t:iriIT rcgul:nions: for 1hc placemenl of any stickers or 1c111 tards pro\'idcd by Carrier or as required by law: and for assuring that Users comply with 1ari1T rcgulations. TI1c Subscriber shall ensure compliance with any applicab le laws. regulations. orders or other rcqu1rcmcn1s (as they c'<ist from time 10 time) of any go\'entmen1.il cn1ity relating to scr\'iccs pro\'idcd or made a\·uilablc by the Subscriber to Users. The Subscriber is also rcsponsih!e fo r 1hc pa)incnl of chargl-s fo r calls originated at the Subsc riber's numbers which arc not collect. third party, calling card. or crt.-di t card tails.

2A.2 The Subscri ber is responsible fo r charges incurred fo r spec ial construction ancVor spL-cial facilities which the Subscriber requests am.I which arc ort.lcrt.-d by Carrier on the Subscriber's behalf.

2.-U If required fo r the provision of Carrier's services. the Subscriber must pro,•idc any equipment space, supponing s1ruc1urc. conduit and l'l cctrical power without charge to Carner.

lssu!'d: Scpcember 30. 1998 Effccth·e: October 29. 1998

Issued b~·: Richard E. 011al11gan11 , Execu1h'e Vice President PacTcc Communications. Inc. 290 Woodc.l ifT Orh·<' Fairport. New \'ork l~!-0

Page 51: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC co:-. 1:-. IUN ICATIONS. INC

SECTIO:-.::? RUI ES AND REGlJI ,\TJQS (Cont'd)

South O:ikma PUC Tariff No. I Original Sheet No. 17

:? -1 -1 TI1e uhscnbcr 1s responsible for arr.ingmg access to its premises :n tunes mu1ually ai.:n:cablc to C.t.rrn:r and the Subsc-nber\\hcn n.-quircd by Carrier personnel to install. r~p::ur. ma1111am. progr.un. inspect or remo\'e equipment w11h !he pro\'1sion of \:imer's scrnccs

:?..J .5 The Subscnbcr sh:ill ensure th:it the ciiuipmcnt :ind or system 1s properly mtcrfacc;."\I "1th Carner facili11es or scr\'ICCS. that the signals em1 111.-d into Camer's network arc of the proper mode. band\\ 1dth. po"c:r, and signal IC'\·cl for the intended use of the Subsmtx.·r and m compliance with the criteria set fon.h in this 1:irifT. and that the s1gn:tls do 1101 d:un:igc 1.-quipmcnt. injure personnel. or dcgr.tdc service 10 other Subscnbcrs. If the Fo.!et:11 Commumc:mons Comnussion or some other :ippropnate ccn1fymg bod) ccn1fics h:munal eqc1pmcn1 ;is bcmg1cchmcallyxcep1able fo r direct clccincal conncc:11011 \\ 1th m1ersta1ccommunica11onsscrvicc. Camcr,\ill pcnmt such cqu1pmcm to be connected \\ 1th us channels \\ 1thou1 use of prou..-cl1\'C interface dc\iCCS.

If the Subscnber falls to 111Jin1ain tin.· '-'t!Ulpnu:-nt Jnd/or the system properly. \\ 1th rcsullinL 11nnunen1 hann 10 C::irri r (."quiprnem. personnel. or the quality of scn·1cc to other Subscribc1·s. Carrier may. upon \\·nucn nol!cc. require lhc use ofprotC'C'll\C C<luipmcnl at 1hcSubscribct'scxpcnsc. lr1his fails toproduccsausfoc1oryqu:1l 11y and s.1fety. C::inicr may. upon "nllcn nouce. 1cnmna1c the Suhscnbcr's scn ·1cc

Issued: September JO. 1998 EITec1h·e: Oc1obcr 29. 1998

lssut.'tl b)': Richnrd E. 011;1la~:111:i . Ex«ul in• Vice Prcsidr11t PacTec Communic.11iuns. IJU,· . .?90 Woodcliff Orin• Fai rporl. New \'ork I-W50

Page 52: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

PAETEC CO~IMUNICA rl ONS. INC.

SECTION 2 RUl ES AND REG\JI ATIQ~S (Cont'd)

2.-1 l{c,;i,onsihjlitics of the Suhscnhq {Cout'd)

South Dakota PUC T:.iriff No. I Origin:.il Sheet No. 18

2.-1.6 The Subscriber 111 us1 pay Carrier fo r replacement or rcp:ii r of damage 10 the <.-quipmcnl ot focili1ics of C:tml!r c:mst.-<l by ncgl ii;cncc or willful act of 1hc Subscriber. Users. or others. by improper use of t he services. or by use of cquipmcn1 provided by tlw Subscriber. Users, or others.

2.-1 . 7 The Subscriber must pay for 1he loss through theft of any Carri er equipment installed at Subscriber's premises.

2.-1 .S The Subscriber 1s responsible fo r paymcm of the charges set fonh in this 1ariIT.

:! .-1 .9 The Subscriber is responsible fo r compliance with the :1pplicab le regulations st.•! forth in this tariff.

2A. 10 The Subscriber shall indemnify and Sa\'e Carrier hamlless from a ll li ability disclaimed by Carner as SJ>ccified in SC'Ction 2.3 abo\'c, arising in connC'Ction wi1h the provis ion or scr\'ice by Carrier. and shall protect and lle fcnd Carrier from any suns or claims against Carrier am! sh.il l p:1)' all expenses and sa1isfy all judgments rendered aga 111s1 Carrier in conncc lion herewith . Carrier shall no1ify the Subscriber of any suit or cl:um against Carrier of which II is aware.

Issued: September 30. 1998 Effective: October 29. 1998

Issued by: H.ichard E. 011alagau:1 , E.~l-cuti\·c Vice President PacTL'C Communifa tions . Inc. 290 Woodciirr Drh·c Fu ir l)Ort , ~l' W York 14450

Page 53: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· ~A ETEC COMM UNICATIONS, INC.

SECTION:?. RULES ANP REGUI A.TIQNS (Cont'd)

2.5 Cancdlot12n or ln1cmmt10n of Services

2.5.1 Gcner:11

South D:i.kota r C Tariff No. I OrigiR.JI ShCt:l No. 19

A. A SCf"\icc is mlcmJplN " hen 11 becomes unusable to the Customer, e.g., the Customer is un3ble 10 tr:msmn or rctcavc. because of a failure of :i

component furn ished by Carrier under this tanIT.

B An mtC:tTUr,1100 pcnod begins when the Customer rcpons 11 service. facility or c1rcu1t to be mopcr.1t1vc and releases 11 for testing 311d repair. An m1crrupt1on pcnod ends when the scr"icc. fnc1li1y or circuit is opcr:lli\'C.

C If the Customer reports :J: sen 1cc. faci lity or circuit 10 be mopc:ratl\'C but dctlmes 10 release 11 fo r tcsling and repair. the scn·icc. facilit)' or circu it is considered to be 1mp:urcd but no1 interrupted. No credit allowances " ill be made for :t scrvi c. fac1ht; or cirt:ull considered b; Carner 10 be impaired.

lssu<.'d : St-ptember 30, 1998 Em.-cti\·e: Ckrobe.r 29. 1998

Issued by: Richard E. O u a lagana. E.ll'CU th·e Vire President PoeTec Communicntions. Inc • .?90 WllOOc.liN' Drh·c Fairport , N<'" York 1~50

Page 54: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

. Pi\ETEC cmlMU ' ICi\TIONS. INC.

SECTION 2. RULES ANP REGUI •\TIO:--JS (Com'd)

2.5 C:mcr.;11:uion or lnlcmmlion of Scn'JCl"s (Con,·d)

2.5.2 Limitali ns on Alto,, anccs

Sou1h Oako1a PUC Tariff No. I Original SIU.'t:l No. 20

No crccht allow:mcc will be made for an)' m1crrup1ion of SCl"\'icc:

t\ . due 10 1hc nc~ligcncc of, or noncompliance with the provisions of thi s Tariff by. any person or L'nt1ty other than Carrier. in.:lud111g but not limited to the Cusromcr or miter comm.:,n earners conncc1cd to the service of Carrier,

8 . due to the failure of power. L.-q uipmcnl, S)'Slcms. or services not provided by Carrier:

C. due to c1rtu ms1anccs or c:iuscs beyond the control of Carrier:

D. during :my period in which Carrier is not given full and free access to its foci li11cs and equipment fo r the purposes of invcstiga1ing and corrcc1ing intcrrup1ions:

E. during an) period in \\hich the Customer continues lo use !he scr"ice on an impaired basis;

Issued: Scplcmber 30, 19fJ8 Erfoctin~: Oclol>e.r 29. 1998

bsued by: Richard E. Oualagana . E."<ccuth·c Vice President 1•ueTrc Communica tions , Inc. 290 Woodcliff Drh•c Fairport , New York 14450

Page 55: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC CO~IM UNIC,\ TIONS. INC.

SECTIO:-- 2 RULES AND REGULA'! 10,~~ (Conl'd)

2 5 Cam;d!:itjon or int('mmtiou of Services (Cont\!)

.":! 5 :2 L11nitat1ons on -\ llowanccs (Conl'd)

South Dakota PUC Tari ff No. I Orig inal Sheet No. 21

F Junng any period \\ hen the Customer has released sen 1cc lo Carrier fo r m:11n1cn:incc rurposcs or for 11nplcmen1.:mon of a Cus1omer order fo r a ch:mi;c in sen ice arr.mgcmcms:

G. th:11 occurs or commucs due 10 the Cuslomcr's fai lure 10 authorize replacement of any clement of spedal cons1ruc1ion: and

II 1h.:,,1 \\3S not rcponcd 10 Cam er\, ithm thin) (30) days o f1hcda1c that scn •icc \\,IS affecteJ

2 5.3 Apphcat1on of Credits for ln1errup11ons of crvicc

CrcJ1ts for 1111cmipuons of scn·icc. for\\ h1ch charges arc specified on the basis of per m111u1c of use.or on the uSJgcofa fracuon of a minute, shall in no C\ cnt CACC'Cd

.:in amoun1 equal 10 the 1m11al prnoJ ch:irgc provided for under 1h1s tan ff

2 <, D1scorJ1ouaocc c, Scn·1cc for Cause

2 6 1 \\'11hou1 mcumng hab1h1y. the ompany 1113) d1scont111ue the pro\ 1s1on of scn·1ce 10 a Customc1 or lo 3 par11cular CuslOm\T locat1on, or ma) " 11hhold lhc prons1on of ordered or contf"3ctc:-d scn·1ces.

A For nonp3ymcnt of :in) sum Jue to the Compan) for more lh:m lh1ny (30} d3)'S after issuance of the bill for the amounl due,

B For \lol:mon ofan) of the prov-monsofth1s 1:mn.

C For\tOl:111onofan) la,\ ,rulc.regulauonorpohcyof:in) go\anmgaulhonty ha\ 111g Junsd11:11on 0\ er 1hc Compan) ·s sen ices. or

l S:!!Ul"d : Sepu•.mbt•r 30. 199g Effrc-1h e: 1ober .?9. 1998

lssut.'d by: Richa rd E. Oualug-a.nn. fa.l'<'u li ,·t- \'ict President ParTec Communications. Inc. 290 Woodcli ff Drh·e Fairport . New York 14J50

Page 56: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

P,\ ETEC COMMUNICt\TIONS. INC.

SECTION 2. BUI ES AND REGULATIONS t.Co111'd)

2.6 Piscon1 inu;mcc of Service for C3usc (Con!'d)

Sou1h 0Jkoia PUC Tariff No. I Original Sheet No. 22

D. By reason of any order or decision ofa coun. public service commission or federal rcgula1ory body or 01hcr govern ing authori1y prohibiting the Company from furnishing its services.

2. 7 BiUing AmntHCDJCUIS

2. 7. 1 The Subscriber will ei ther be bi lled direct ly by Carrier or its intcnncdiary, or charges will be included in the Subscriber's regu lar telephone bill pursuant 10 Lilli ng and collection agreements established by Carrier or its intcnncdiary with the applicable telephone company.

2.7.2 Carrier will render bills monthly. Payment is due within thirty (30) days aflcr the Subscriber's receipt of its bi ll.

2.7 .3 Carrier may impose a la1e paymcnl charge not lo exceed 1.5% on 31\)' bill nol paid wi1hin thirty (30) days of the rcccipl. which charge may only be assessed on outslandi ng balance. The Subscriber shall be responsible for all costs. including anomey's fet."S. incurred in the collcc1ion of unpaid charge or in any other action lo enforce p:..,1ncn1s and/or oblig:uions :irising under 1his tariff. A charge of up to 1wcn1y dollars ($20.00) may be imposed for rc1umcd checks.

2.8 Minimum Use Cn111racts

2.8.1 The Company may off er services which require a minimum use guar.uucc (NMUGN) wherein the Subscriber agrees. in wrili ni:. 10 pay the minimum amount per period agn.-cd to upon commencement of service. Subscribers falling be low their MUG will be billed for the minimum o.mounl due per period pursuant 10 the MUG agreement.

Issued: Sepu:mbcr 30. 1998 Effective: Oc1obcr 29, 1998

l.ssucd by: Richard E. Ottu lngu na . Executive \'kc President PaeTcc Communicalions. Inc. 290 Woodcliff Orh·e Fairport, New York 14450

Page 57: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC COMMUNICATIONS. INC.

SECTION 2. Bl/I ES AND REGULATIONS (Conl'd)

2.8 Mmmnun l]s<;: (ontrac!S CCont"d)

Sou1h Oako1a PUC T::iri ff No. I Original Shcc1 No. 23

2.8.2 Shouli.l the Subscriber choose 10 lcnninatc thei r contract prior 10 c:\pi r.u ion o f the term agreed tom the MUG ngreancnt. the Subscriber will be li able fo r the minimum usage rcqui rcmcms contained in the comrac1 mull iplied by 1hc number of months rcmammg m the lcrm. unless Subscriber com·crts to another Company scn •icc with equal or greater 1cnn :ind minimum usage commiuncnts. If no minimum usage requirements are specified m the contrac1. upon any early tcnnination of Subscriber's conlract. Subscriber will be lit1blc fo r !heir mon1hly average usage (calculated over the last three full months immedi:ncly prt-ceding 1hc da1c of 1cnnina1ion) mul!iplied by the number of months remaining m the term.

2.S.3 The mitial contract period for scr"icc under this scclion is one month. Subs1..-qucnt con1roc1 periods shall be for :tddi1ion:il one•mon1h periods unless otherwise speci fied .

2.9 Yahd•mon ofCrt'du

Carrier rcscn•cs the right to \·alida1c the credit "onhincss of Subscribers or Users.

All bills arc prcsumi.."Ci accur.ne. a.nd sh:ill be absolutely binding on the Subscriber unless objection is recei\'ed by Carrier w1thm thu1y (30) d:iys after such bi lls arc rendered. In the case of a bi ll ing dispute bet\\ccn the Subscnber and Carrier for sen ·icc furnished to 1he Subscriber. which cannot be scnk"Ci with mutual satisfaction. 1he Subscriber can lake the fo llowing course of action within thiny (30) days of the billing d:nc:

2.10.1 Firs1. the Subscriber may• rcqucs1 . and C:imcr will pro\·idc. an in-depth review of the dis;m1ctl amount, (111c und1spu1cd portion anJ subscquenl bi ll s must be paid on a timcl)' basis or the scn ·icc may be subject 10 disconnect.)

Issued: Scplember JO. 1998 EfTl-cth·e: Octolx-r 29. 1998

Issued hy: Richard£. Ottalagana . Exrcu1i,·e Vice President PaeTcc Communicalions, Inc. 290 Woodcliff Orin~ Fairport, New \'(Jrk 1~50

Page 58: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAETEC COM MUNICATIONS. INC.

E TION 2. RULES ANP REGULA TIO~ (Cont'd)

2.10 COJIIL'"'lf:d Charge:, (Cont' d)

Sou1h Dakota PUC Tariff o, I Original Sheer 10. 24

2.10.2 Second. if there is sti ll a di sagn.-cment about the disputed amount .afler the im·esuga1ion and review by a manager of C:mier. !he Subscriber may lile an appropri :uc complain! wi lh the South Dakota Public Utilities Commission. The Commission's addr1..-ss is:

South Dakota Pub lic Uti lities Commission 400 E. Capito l Street Stale Capila l Building Pierre. SD 57501 (605) 773-3201

2 IO 3 Billing inquiries may be di rected 111 1hc Carric:r ot its 10II free number (800) 947-508-I.

2.11 B11lmv Eo1j1v Condi1ion'-

When bi lling function on behalf of Carrie!" arc pcrfonucd by local exchange tck,>honc ump=m1cs. or others. the paymcm condi1ions and regulations of such companies apply.

mcludmg :my api: 1cahlc 1111crcst and/or late payment charge eondi1ions.

2.12 llil!2l!ll

The Company will no1 n.-qui rc deposits.

lssul-d : St-ptem ber 30, 1998 Eftcc1h·c: Oe1obcr 29, 1998

lssul'd by: Richard E. Otlalagana. Exl'Cuth·e Vice President PueTec Communiculions, Inc. 290 WooddirT Orh·e Fairport , New York 14450

Page 59: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· PAET!£ CO~IMUN ICATIONS. INC.

SECT10, .2 Rl 'I ES A~Q REGl LAIIONS (Con1'd)

1. 13 Tcknhonc: Sun:harsc.-eff:n;c,;. Contahu\lODS

Sou1h Dakota PUC Tariff No. I Origina l Shcc1 No 25

In add111on 10 he r:ucs and charges appllcabk according 10 the rules :ind regu lations of this 1:mfT. \-anous surchargL--S and 1.ixcs may appl)' to charges in urrcd by and billed to 1hc customer on the monlhl) b1lhng s1atemen1 The Cus1omcr 1s responsible for p3)'f11Cllt o f any foes ( including f r.mch1sc and nght-of-way foes), ch:irgcs. surcharges. contnbu1ions and 13..'<CS (ho\\ c, er d,"Signated) (including\\ ithoJI hm1:a11on uni , CT$1.I scf\·icc contribu1ions. telephone relay sen 1cc conmbuuons. sales. use. gross rccc1p1s. excise. access or olhcr ta.~cs but c,cludmg taxes on the Company 's net income) imposed by any local. state. or federal go,cmmcnt on or based upon tht< pro\'1s1on. salt" or use of the Company·s sC"rviccs. Fees. chargt<s. and ll'-CS 1mpoSl-d by a city. county. or other polilicll subdivision will be colkcted on ly from those Customers n.-CCI\ mg sen ·icc \\ ithin the boundlrics of that subd1v1sion.

2.1.J Mi nimum (all C2mnlct1on R:uc

Carrier will ensure :m industry siandard blocking rate no grca1cr than P.0 1.

2.15 ~

CamC"r may from time to tum: oITcr promo1ional scn·1c1.-s.

Issued: September 30. 19'.IJ Em.'<'th·e: October 29, 1998

Jssul'd by: Richa rd E. Otta lagana. E.'\:ttuth·e Vice Pr<$ident PneTcc Communic:1 tions. Inc. 290 \\'ooc.lcli rr Urin• I-airport. New Yo rk 14-iS0

Page 60: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· 1'1\ ETEC COMM UNIC.~TIONS. INC.

SECTION 3 · DESCRIPTION OF SER\llrl;S

3.1 ~

Sou1h Dakota PUC Tari ff No. I Original Sht.-ct No. 26

Carrier pr0\1idcs resold intcrcxchangc 1clccommu11ic:uions services. including dirccl•dialcd message 1clccomm11nic:1tions scrvic'-"S, und 800/888/877 service. Calls arc rated based on the dur:1t1on of tlu: ca ll. Services arc available twenty-four (24) hours a day, SC\'CU (7) days a week . Carrier docs not charge fo r service on a mileage basis.

3.2 Charges 8:m;d on DuriUion o[Usc

Where charges for a service arc spccHicd based on the duration of use. such as the duration o f a telephone call. the following rules :ippl)':

3.2.1 Call s :ire measured in durational increments identified for each service. All calls which arc fr.1ct ions of a measurement incrcmcnl arc rounded up 10 the next whole uni1.

J .2.2 Timing on completed calls begi ns when the call is answered by the called party. Answering is determined by h:mlware answer supcrvisio11 in :tll cases where 1his signaling is pro\'idcd by the 1ennin:11ing local carrier and any i111cm1cd iate carricr(s) .

3.2.J Timing tc ·nina1cs on all ca ll s when 1hc calling pany hangs up or the Company's network n .. -ce1ves an on-hook signal from the 1cm1inating carrier.

3.2.4 Calls origm:umg in one time period and 1cnnin:11ing in anod1cr will be billed in proportion to the r:i.tcs in e ffect duri ng different scgmcms of 1hc call .

J .2.S All times refer to local limes ..

3.2.6 Rates arc not dist3J1Cc Sc:I\Sih \·e. As such, unless otherwise indicated. milcayc bands are 1101 applicable to the services offered .

3.2. 7 Unless 01hcrwisc indicated. rJtcs do 1101 vary depending upon day o r the time of day (Day, fa•ening. and N1ght/Weckcnd) ..

Issued: September 30. 1998 EfTcc1h·e: October 29. 1998

lssul'd by: Richard E. Oualngnna. Exccuth·e Vice President PacTec Communic.tt ions. Inc. 290 Woodcliff Drh·e Fairport , New York 1-'-'S0

Page 61: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

· l'AETEC COMM U ' !CATIONS. INC.

SECTIO~ 3 • PESCR(PJION OF SER\'(CES

.l J. Charges Based on PYG!.1100 of l ·~e

Sou1h Dakoia PUC Tariff No. I Original Sht:el No. 27

3 : . E.3ch all is r.ucd and billed m \\hole cents according to the fo llowing conventions:

D. Commcmal. For SCl'\iccs offcrcd by Carrier, any rated call wi1h a fra 1ionof 3 cent less than S0.005. will be rounded d0\\1l to the nearest whole cent. Any r.1tcd call with a frac1io:i of a cent S0.005 or greater. wi ll be rounded up to the nc:irest who le ccnl.

E. Res1droti:il. Calls m::idc using any service offered 10 residential Subscribers "ill be rounded up to the nc:1rcs1 cent at the termination of a call .

F. Exccpuons pcc1al rounding arrangcmcn1s m:iy be made through contrac1ual arrangements.

J.J Produc1 Ocscrinuoo5

J 3.1 Commercial Sw11ched Outbound ( l+)

Switched outbound services ptO\'idc du-eel dialed ( h-) long distance services 10 commcn 1:11 Subscnbcrs. ubscribcrs may also access Carrier's scr\liccs by dialing " I OXXX. • Subscnbcrs xccss Ca.nicr's sen i ces 1hrough s,,·itcht'd access origina1ion.

Issued: September JO. 1998 EfTrcth·t : Ociober 29. 1998

Issued b~': Richard E. 0 1talagana. E.xecuth·t Viet Presidenl PucTc-c Communications, Inc. 290 Woodcliff Orh·t Fai rport , New \'o rk l~SO

Page 62: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PAETEC OMMUNICATIONS. INC .

SECTION 3 · DESCRIPIION OE SFRVICES <Con1'd)

3.J Prod11c1 Dsscip1ioos (Cont'd)

3.3.2 Commcrci:tl Swilchcd 800/888/877 Inbound

Sou1h O3kom PUC T3riff No. I Original Shcc1 No. 28

Swilchcd S001888/877 provides an inbound 1011-frcc calling scr\'icc to commcrcit1l Subscribers. Thc Subscriber is billt."tl fo r each toll-free call , rJ1hcr than 1hc call originator. Calls 1erminatc lo :he Subscriber \'ia swilchcd access lines.

3.3.3 Commercial Dcdic.:ucd Ou1bound (I+)

Dedicated outbound ser\'ices provide direct dialed (I +) long distance services 10 commercial Subscribers. Subscribers may also access Carrier"s services by di:iling " I0XXX." Subscribers access Carrier's scr\' ices 1hrough dedicated access original ion.

3.3.4 Commcrcfol Dedicated 80018S8/877 Inbound

Dedicated S00/8S8/877 pro\'idcs an inbound loll-free cal1111g service 10 commercial Subscribers. Subscriber is billed for each 1011-frcccall, rathcrlhan the call origmalor. Calls tcnninate to Subscriber ,•ia dedicated access Imes.

3.3.5 Resident ial Swi1ch,:d Ou1bound (I+)

Switchc-d outbound services prm•idc di rect diah."tl (I +) long distance scrvicC'S to residential subscribers. Subscribers may also acCl-SS Carrier's services by dialing " I 0XXX." Subscribers access Carrier·s services 1hrough swi1chcd access origination.

Issued: September 30. 1998 Errl"<'1h·c: Oc1olwr 29. 1998

Issued h}: Richard E. Ollalagana. Esl"<'u1h·e Vice President PueTec: Communications. Inc. 290 Woodclirf Drh·e Fairport. ?\'cw York 1+150

Page 63: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• P1\ ETEC COMM UNICATIONS. INC.

SECTION 3 · DESCRIPTION OF SERVICES CConi 'd)

J.3 Produc1 PeKrin1 1on§ <Con1'd)

3.3.6 Rcs1den1ial Switched 800'8881 7 Inbound

South DJko1a PUC Tariff No. I Original Sheet No. 29

Switched 00/ 77 pro\·idcs ::m inbound toll-fret c3lling service to rcsidcnli31 Subscrihcrs. Subscriber is billed for each toll- free call. rather th:in the call originator. C3IIS tcnninatc to Subscnbcr via dcdic:ucd access lines.

3.3. 7 00/ '877 Trj\'cl Card

00 88 77 Tr:l\'CI Card Stt\1CC pro\'1des customm the opponunity 10 m:ikc calls while away from thctr home or office. Subscribers may access Carrier's services through an 800, 77 number pro,·idcd by Carrier.

3.3. Directory Assisuncc

Subscribers may request dm:c1ory :,.ss1 tllOCC from Cnrricr.

Issued: September 30. 1998 Efft.'Cli\'e: Oc1obtr 29. 1998

Issued by: Richard E. Oualagana, E.~rcutfrc Vice Prl'Sidcnt PoeTtc Communications, Inc. 290 Woodcliff Ori n~ Fai rport, l'iew York 14450

Page 64: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PA ETEC COM~·IUNJC;\ TIONS. INC.

SECTION, · RATE SCHEDULE

South D:1ko1:1 PUC Tariff 10 . I Orii;inal Sht:el No. 30

Unless o therwise specified. the fo llowing r:ucs arc per minute or use ns timed by Canicr in seconds.

-1 .1 C2ounc:rci:t1 s\,·iichM Out hound ( J+l Billing ~·tinimum: Six S'--conds Billing lncrt:mrnts: Sax St.-c:onds

R3le: S0.193

4.2 Conuncrcinl s\, itchc;d Inbound llilling Minimum: Thiny Seconds Billing Increments: Six Seconds

Rnie: S0.193

4.3 Com:ucrdnl Pcdis?lcd OuJbound Bilhn~ Minimum: Six Seconds Billing Increments: Six Seconds

Rate: St). IO I

4.4 Commcrci?I Pt'dicatcd 800f8S8t877 Inbound Billing "·linimum: Thiny Seconds Billing Increments: Six SL-c:onds

Rate: S0.110

4.5 Residential Switched Ou1bound () +) Hil ling Minimum: One Minute Billing Increments: One ~·l inutc

Rutc: S0.225

Issued: ~ plcmber 30, 1998 Effec1h·e: October 29, 1998

Issued by: Richard E. Ouolagana, Execulive Vice Presidcol PacTt.'<: Communicalions, Inc. 290 Woodcliff Drh•c Fairport . New York 14450

Page 65: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PAETEC COM MU I ATIONS. INC.

SECTION J • RATE SCUEDULE !Com 'd)

-'.6 Rsadc;Qlj;al Swuc:hcd S00 , 8 877 lnhound Billing Minimum: One Mmut.e Billing lncrrmcnu: Or.e Mmutc

R:ue S0325

4 ,7 oo 888 n Towel Card Sc:mcc:

Commrn:i?! B11Jins Billing Mmamum: Thin y Seconds Billing Increment: Six Seconds

R31e: S 0.20

Residential B1Jling Billing Minimum: One Minute 8i1lmg Jncrcmcnl: One Minute

Rate: S 0.20

Rate: S 0.75 per rcquesl

South Dakota PUC T3riff No. I Original Sheet o . 31

JssuL'<i: Sep1embcr 30, 1998 ErTec:th·e: Oc1ober 29, 1998

Issued by: Richard E. Ottalagana, Exccuth·e Vice President t>aeTcc Communications, Inc. 290 Woodcliff Drh•e Fairport, New York 14450

Page 66: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PAETEC COM MU !CATIONS. INC.

'ECTION .i • R•\TE SCHEDULE (Cont'd)

-L9 Prcsubscnhcd fn1erexchaogc Carner Charge f"PICC")

Soulh Oali:013 P C Tariff No . I Origin:il Sheet No. 32

Prcsubscn bc-d l111crcxchangc Carrier Charges arc neither contribu to ry to nor clig1blc to receive discounts nor arc they eligible lo conmbulc 10 meeting minimum mon1hly usage requircmcn1s. This charge applies on a monthly basis to :tll Customer monthly bills. The apphc:uion of this charge is subject to billing :ivailability. Only one PICC will be app lied per line.

-1.9.1 Rcsidcmi:.il Customers

A Non-Primary Lines -•/ \ PICC of S I .SO applies to each non-primary residential line prcsubscnbl.-d 10 The Company as 1hc primary intcrcxchangc carrier where The Company can dctcnninc 1ha11hc Customer has more thun one line.

ll. Prim:iry •·A PICC of S0.53 applies to each primary residential line prcsubscribcd lo the Company as the prim:iry intcrcxchangc carrier.

-4.9.2 Busmess Customers

A. Single Linc --A PICC of S0.53 applies 10 each li ne prcsubsc ribcd lo the Company as the prim:iry intcrcxehangc carrier where the Comp:my can dctcnninc 1h:11 the Cus1omcr has only one line.

8 . Centrex Lines •·A PICC" ofS0.3 1 :1pplics to each Centrex line presubscribcd 10 the Company as the primary in1crexchangc carrier where 1he Company can dc1enninc 1ha1 the Customer accesses 1hc Company vi a a Local Exchange C;irrier-providcd cn1rcx line.

C. A ll Other Li nes--,\ PICC of52.15 applies to each line prl-suhscribcd 10 the Company as 1he primary intcrcxchange c:irrier for :1II 01her Customers of the Comp:my's busi ness services.

Issued: September 30. 19CJS EITecth·c: October 29. 1998

Issued by: Richa rd E. Onnlagano, Executh·c Vice P1 csidcnt PacTec: Communicutions. Inc. 290 \VoodcliIT Drive Fairport . New York 1"450

Page 67: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PAETEC COMMUNICATIONS. I, C.

SECTION 4 · R,.\TE SCHEDULE (Cont"d)

4.9.3 ISDN Lines

Sou1h Dakota PUC Tariff No. I Original Sheet No . 33

A. BRJ-ISDN Lines ·-A PICC ofSl .50 applies to each line prcsubscribcd 10 1hc Company as 1hc primary intcrcxchangc carrier where the Company can dclcmunc that the Cus1omcr accesses the Company \'i3 a local cxch::mgc carrier-provided Basic Rate lntcrfacc Integrated Services Digital Network line.

8 . PRl-1 ON Lines ••A PICC of SI 3.75 applies to each lincprcsubscribcd to the Comp:my as the primnry intcrcxchangc carrier where the Company can dc1enninc that the Cus1omcr accesses the Company ,,fo a Loc:ll Exchange Carrier-pro,·idcd Primary R;uc Interface Integrated Services Digital ctwork line.

-U O Public Pay Iclenhooc Surcharge

In order to recover 1hc Company"s expenses to comply wi1h lhc FCC"s pay te lephone compcnsa1ion plan. cffccti ,•c Oc1obcr 7. I 997 (FCC 97-371 ). an undiscounlable per call charge is applicable 10 all inlrJsuue, m1ers1atc. and intcma1ional calls thal originalc from any domestic pay lclcphonc used to access Company scr\'ices. This surcharge. which is in addition to s1and:1rd tariffed usage charges and any applicable scr"icc charges and surcharges :issociated wi1h scr"icc. applies fo r 1hc use or the ins1rumcn1 usC'd 10 access Company scr\'icc and a:, unrelated 10 the Company scn·ice accessed from 1he pay telephone.

P:iy telephones include coin-opcr.Hcd and coinlcss phones owned by local 1clcphone companies. indcpendcn1 companies and other intcrcxchangc carriers. The Public Pay T clcphonc Surch:irgc applies to the initial comple1cd call and any rroriginatcd call (i.e .• using the # symbol,.

Jssuffl: Septembt.r JO. 1998 Effecli \'e: Ocloher 29. 1998

Issued by: Ric.ba rd E. Ounlngana. E.~ttuth·c Vicc President P..aeT« Communica tions. Inc. 290 WoodclifT Orh'c Fuirport . Nt w York l+iSO

Page 68: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

• PAETEC COMMUNICATIONS. INC.

SECTION .i • R;)TE SCMEDl/1 E (Cont 'd)

4.1 o Puhlic Pav Tclcphnnc Surchurnc (Coni'd)

Sou1h Dako1a PUC Tariff No. I Original Sheet No. 34

Whenever possible. 1hc Publtc Pay Telephone Surcharge will appear on 1hc same in\'oicc con1aining the usage charges for the surcharged call. In cases where proper pay lclephonc coding digits arc not transmitted to the Companypri\Jr lo completion of a call. 1hc Public Pay Telephone Surclmrgc may be billed on a suhscqucnt invoice after the Company has obtained infonmllion from a carrier th:u 1hc origin:uing s1ation is an eligible pay telephone.

The Public Pay Telephone Surcharge docs no! apply to calls placed from pay telephones at which the Cus1omcr pays for service by inserting coins during the progress of the call .

Per Ca ll Charge: S 0.35

Issued: Scplcmbcr 30, 1998 Effecti ve: October 29, 1998

Issued by: Richard E. Ollologana, Exc.-culh·c Vice President PncTcc Communirolions. Inc. 290 Woodcliff Orin! Fairport , New Yo rk 1"450

Page 69: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

Vt~KI FICATl()N

Si.ate of __ ..ro:,wciw,._ __

Count~ of~"'----

and thal the ...::inh: an: In"-" and corn:l' l tu 1he k "!tl nf m) l.no\\ h:dst>. infonn:uion. or tll: lil'f.

Subscritx-d and S\\ Om to me. 1h1s ~ da) ofScf>lcmbt.·r 1998

Bu Not31) l1uhl ic

Page 70: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

Swo..fR BERLIN 5HEq£FF FREOMAN U.P WASNING TON. 0C 20001

1012;.:

09/22/98 SI0 ;._._ ?ti

0 ,1.1;;.1 i,J

SWIOLEA BERLIN SHEAEFF FRIEDMAN, LLP 3000 IC S"mEET. N.W $Ul'T'E XIO

WASHINQTI)N. 0C 20001

:u .£)(ACl LY • • • • • • • 250 • 00LLARS AND • OOocCENTS

PAY tt)lkl

"" "'

$oulh Oakola Publ 1r: U 1l1t1es Comm1ssic,n

- FIRSTUN!ONNAn0NAL8AM<

U-'111

10 1 1 l I ,:o S ~00 1 1 10 •: 10 lO D0 0 0 o I Jo l •'

0101232

'"'',O.O(l

,n 101:: l;t

Page 71: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

South Dakota Public Utilities Commission

WEEKLY FILINGS For the Period of September 25, 1998 through October 1, 1998

If you need a complete copy of a f1hng faxed, overnight expressed, or mailed to you, please contact Delaine Kolbo w1lh1n five business days of this filing

Phone 605-773-3705 Fax 605-773-3809

TELECOMMUNICATIONS

TC98-177 In the Mat er of the ApplIcaI1on of PaeTec CommurncaI1ons, Inc , for a Certtf1cate of A.uthorny to Provide Telecommurncat1ons Services In South Dakota

Apphcahon of Pae Tee Cornmurncat1ons, Inc for a cert ificate of authonty to provide resold InIrastate 1nterexchange te1ecommurncations services m South Dakota The serv ices 10 be provided include d1rect-dIaled (1 +) message telecommun1cat1ons servtees, 800--888-877 services, operator services lo presubsmbed customers only, and posI-pa1d calltng card services

Staff Auorney Karen Cremer Staff Analyst Kyhe Tracy Date F,led 09130/98 lntervenI1on Deadline 10/16/98

You may rece,ve this hs11ng arid other PUC pubhcauons via our website or via internet e•ma1I You may subscribe 10 the PUC ma,hng 11st at

I ttp ltwww state sd us/stale/execul1ve/puc/puc him

Page 72: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF SOUTH DAKOTA

IN THE MATTER OF THE APPLICATION OF PAETEC COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA

ORDER GRANTING CERTIFICATE OF

AUTHORITY

TC98-177

On September 30, 1998, the Public Ullhttes Comm1ss1on (Commission), m accordance with SOCL 49-31 -3 and ARSD 20 10 24 02. received an apphcation for a certificate of aulhonty from Pae Tee Commumcat,ons. Inc (Pae Tee)

Pae Tee proposes 10 provide resold intrastate 1nterexchange telecommumcatIons serv ices, 1ncluding direct-dialed message telecommumcatlons services, 800/888/877 services, operator services, and post-paid calhng card services A proposed tanff was filed by Pae Tee The Commission has classified long distance serv ice as fully competil ive.

On October 1, 1998, the Commrss,on e teclromca1Iy transmitted notice of the filing and the 1nterven11on deadline of October 16, 1998, to interested 1nd1viduals and ent111es. No peutto:is 10 intervene or commen1s were filed and at 1ts regularly scheduled January 26 i999. meeting, the Commission considered PaeTec's request for a cert1ficate of authonty. Comm1ss1on Slaff recommended granting a cenlficate of authonty, subJect to the cond1t1on that PaeTec not offer a prepaid cal ling card or require deposits or advance payments without pnor approval of the Commission Comm1ss1on Staff also recommended that new contracted . ates and penalties must be presented to the Commission on a case by case basis if no1 included In the tanff

The Comm1ss1on finds that 11 has 1unsd1ct1on over this matter pursuant to Chapter 49-31 . spec1f1cally 49-3 1-3 and ARSD 20 10 24 02 and 20·10 24 03 The Commission finds 1hat PaeTec has met the legal requIremen1s establ ished for the granting of a cen,ficate of authori ty PaeTec has. m accordance with SDCL 49-31-3, demonstrated sufficient technical, fmanc,al and managerial capabihties 10 offer telecommurncahons services ,n South Dakota The Comm1ss1on approves PaeTec's apphcauon for a certificate of authority, subject to the oond111on that Pae Tee not offer a prepaid ca1hng card or require deposits or advance payments without pnor approval of the Commission, and that new contracted rates and penalties must be presented to the Commission on a case by case basis 1f not included In the tariff As the Commission's final decision m this matter, 11 Is therefore

ORDERED that Pae Tee's application for a certificate of authority ,s hereby granted, subject to the cond111on :hat Pae Tee not offer a prepaid calling card or require deposits or advance payments without pnor approval of the Commission It Is

Page 73: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

FURTHER ORDERED. that new contracted rates and penalties must be presented to the Comm1ss1on on a case by case basis 1f not included m lhe tariff I11s

FURTHER ORDERED. thal Pae Tee shall file 1nformat1onal copies of 1ariff changes with the Comm1ss1on as 1he changes occur

Dated at Pierre, South Dakota, this ~ day of February, 1999

CERTlf:K:ATE Of SERVK:E

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tOfFICIAL SE.AL)

BY ORDER OF THE COMMISSION·

-' G?a-m '1!~ PAM NELSON, Comm,ssioner

~ -J/4&0. LASKA SCHOENFELDER, ComJY!ss,oner

Page 74: oc K .. , , -, ,.with o COP)' 10: Richard E. Onalagana Exccuti, c Vice President PoeTec Communi ations. Inc 290 WoodcliffOrhl· Fnirport. New Yori,. 14450 Telephone: (71b) H0-2500

SOUTH DAKOTA PUBLIC UTILITIES COMMISSION

CERTIFICATE OF AUTHORITY

To Conduct Business As A Telecommunications Company Within The State Of South Dakota

Authority was Granted January 26. 1999 Docket No. TC98-177

This is to certify that

PAETEC COMMUNICATIONS, INC.

is authorized to provide telecommunications services in South Dakota.

This certificate 1s issued m accordance with SOCL 49-31-3 and ARSD 20 10 24 02. and is subJect to all or the conditions and hm1Iations contained 1n the rules and statutes governing its conduct of offermg telecommunications services

Dated at Pierre, South Dakota, th1s~ day of~-1999