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The Law Offices of
Edward A. Maldonado, PA

2850 S. Douglas Road
Suite 303
Coral Gables, FL 33134

Tel: (305) 477-7580 
Fax: (305) 477-7504 
Toll-Free: 1+ (877) 245-6326

eam@maldonado-group.com

Our hours of operation are:
9:00am EST to 5:00pm EST

Edward A. Maldonado, Esq.
Practicing Attorney
since 1997

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State IXC and CLEC Licensing Application and Processing Services Provided

State Certificates of Public Convenience and Necessity (CPNC) for IXC or CLEC Services

Services include State Certification and Licensure within 50 U.S. States
and Puerto Rico for:


Long Distance Wholesale, Resale as either facility based or switchless Interexchange Carrier (IXC)

Prepaid Calling Cards Providers and Online
Prepaid Calling Services

Competitive Local Exchange Carrier
(CLEC) facility based or switchless

Eligible Telecommunications Carrier (ETC) pursuant to 47. U.S.C. § 214(e)(2) and State Certification as an ETC for low-cost, high cost services under Universal Services Fund

The 214 license grants the holder certain rights, such as the right to collect certain inter-carrier compensation from other carriers, qualification under laws and regulations related to interconnection agreements and the ability to control or assign telephone numbers (local access or subscriber), toll numbers, and DID/DOD(s).   The FCC 214 license also bears responsibilities, including collecting and remitting end-user taxes, paying regulatory fees such as USF, TRS, LNP, and NANPA, annual and quarterly compliance filings to the FCC and State agencies, maintaining tariffs for FCC and state regulation, providing interconnection to other carriers, and paying compensation to other carriers for the services they rendered.  In the United States, the Federal Communications Commission (FCC) and the state public utilities commission(s) (also called PUCs or PSCs) regulate these FCC 214 common carriers as either Iincumbent Local Exchange Carriers (also called ILECs); Competitive Local Exchange Carriers (also called CLECs); Long Distance Interexchange Carriers (also called IXCs); or as a service specific category, such as in the case of some state prepaid calling card regulations

To offer such services, providers must seek and obtain from the states in which they provide consumers or subscribers their services, a state license to operate called a Certificate of Public Necessity and Convenience or CPNC.  The types of telecommunication CPNC are generally broken down into either those covering interstate and international long distance services IXC services, and Local telephone Service as either an ILEC or in most cases as a CLEC.  CLECs may be pure resellers of ILEC services, but a growing number of companies are now acquiring or laying their own fiber as a part of their services.  These companies are considered facility based CLECs along with companies that operate their own local network within a state.   All however require certification in the state they offer services.

The special case of online sales of DIDs and Local Access Numbers

Perhaps the least understood requirement of retail carriers and service providers is the need for state certification in states where they sell services to consumers over the Internet or via an e-commerce website.  The key to determining what CPNC may be necessary is a review of your services from the perspective of state regulators.  Most states, if not all, require certification prior to offering services in their state.  Likewise, many providers do not consider themselves within a state simply because they sell through the internet based upon facilities in another state.  However, the use of local access numbers in connection with your company’s services, or the sale of DIDs with associated long distance service,  is often viewed as a trigger by regulators to establish that, prior to your CPNC application, your company first offered services to consumers in their state.  The presumption is that consumers in that state could, or did, receive services by and through the local number you posted on the internet.  Likewise, many states regularly review applicant’s websites to see if in fact consumers can access your services via a local access number within their state’s borders.  If so, your application may be more complicated, protested by the state, or may trigger a fine.  It is important to identify these issues in the intake process and on any of our intake forms.  We can only address issues identified.


The Process of obtaining and maintaining CPNC Certification

The process of obtaining IXC or CLEC certification involves three parts

  • Obtain a physical office or registered agent within the state to accept service of process from state agencies

  • Obtain a Certificate of Authority to do business in that state in order to have standing to obtain a certification or license and sell to consumers in that state

  • Apply for the Certificate of Public Necessity and Convenience as either IXC or CLEC to the appropriate Public Utility Commission (as known as Public Service Commission and Regulatory Authorities.

LATA map courtesy of wikipedia.org

LATA map

Each state has different requirements and processes for granting a CPNC.  Some states require local counsel in order to appear before the Commission.  Some require a hearing before the actual Commission to make statements as to the qualification of the company.  Some allow telephonic hearings.  Others require no hearing at all.  In the intake interview, we identify the issues and processes that may arise based upon your desired footprint of service.  We also take a different approach than others in our industry.  We link our clients to least cost vendors where and when appropriate and do not charge on top of their services or discounted pricing.  This is the case with our Registered Agent Network partners.   We forward clients to them and request only that copies of the necessary documents be forwarded to us.  The client establishes and keeps the ongoing relationship with the Registered Agents Network from application through to state filing compliance. Our Registered Agent Network partners maintain online accounts for our clients so that the ordering of services and Certificate of Authority to do business is accessed when needed, and changed when needed.  This allows clients to manage not only the cost and Cap-Ex of licensure, but allows them to prepare for compliance services.

Several states do require a bond or security deposit to be placed as a condition to granting IXC or CLEC CPNC authority in their state.  In the intake interview, we identify if your company is required to place a bond.  We have established relationships with sureties and insurance companies that secure such bonds and present them to our clients as a part of the process.  While we can connect your company to such surety services, the ultimate decision rests upon them to approve your company based upon industry and financial standards that they must observe. In the intake process, we will work with your company to identify potential problems and recommend alternatives to meet such requirements in a particular state.

Our approach is modeled on a just-on-time delivery process where our application preparation work begins while the Registered Agent Network partner is clearing corporate qualification of the company.  We establish filing deadlines with the client based upon clearance of the corporate qualification and roll-out plans.  Where and when possible, we require that the client provide the necessary supporting  documentation for the application well in advance of the filing deadline to determine its sufficiency, if protective orders or confidentiality must be petitioned to the agency, or to keep the client on track with their desired roll-out plans.  Your application processing is important to us as it should be to you, so an aggressive approach to ensuring the filing made is essential.  It is important to review these issues in the intake interview so that you are comfortable with the entire process and the processes involved. 

 

Contact our firm today at (305) 477- 7580, Toll-Free at 1-877-245-6326, or via e-mail for general questions as to our specific services or representation on a particular matter.

Individuals and businesses facing the threat of imminent lawsuits, regulatory Enforcement Actions or criminal charges are urged to contact The Law Offices of Edward A. Maldonado PA today to schedule a complementary consultation from our South Florida law firm.  Time is always of the essence in such cases.

Most of all, thank you for visiting The Law Offices of Edward A. Maldonado PA website. Let us know if this site and its links were a helpful resource as a prospective or existing client.