Non-Dominant Inter-Exchange Carriers

Background

Non-Dominant Inter-Exchange Carriers (NDIECs) are companies that provide stand-alone telecommunications services including long-distance, high-speed data service, operator services, and prepaid debit card services.

In July 2009, the CPUC opened the NDIEC proceeding (R.09-07-009) in response to findings in the 2007 State Controller's Audit Report that found the CPUC's collection efforts were ineffective against companies that ceased to operate or filed for bankruptcy when fines were imposed. The Audit Report recommended that the CPUC conduct more stringent background and financial viability reviews of individuals or companies registering with the CPUC and that the CPUC require the posting of a performance bond for NDIEC registration.

DRA's Policy Position

On January 9, 2012, DRA filed opening comments and on March 16, 2012, reply comments.

DRA supported the NDIEC proceeding to revise the registration process for NDIECs for the purpose of protecting consumers from fraud and unlawful business practices. DRA recommended that the CPUC:

• Require more thorough review for new applicants.
• Require applicants seeking to transfer registration license to show proof of good standing and verify compliance with CPUC reporting, fee and surcharge transmittals.
• Increase the application fee for new and transferred registration licenses from $75 to $250 in order to help offset the additional costs associated with expanded applicant reviews.
• Require all applicants to post a performance bond of at least $25,000 or 10% of intrastate revenues reported to the CPUC, whichever is greater, in order to facilitate the collection of fines, penalties and restitution related to enforcement actions taken against companies.

Current Proceeding Status

DRA is awaiting a Proposed Decision from the CPUC.

See the proceeding docket.