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1 Control Number : Item Number : 11 Addendum StartPage : 0

2 DOCKET NO ^. APPLICATION OF ONE RING NETWORKS II, INC. FOR A SERVICE PROVIDER CERTIFICATE OF OPERATING AUTHORITY ^^^^ PUBLIC UTILITY CO1VIii^Il(^^,ON OF TEXAS 19 COMMISSION STAFF'S FINAL RECOMMENDATION Commission Staff (Staff) of the Public Utility Commission of Texas (Commission) files this Final Recommendation regarding the application filed by One Ring Networks II, Inc. (One Ring Networks). Staff recommends that the Commission approve One Ring Networks' application. In support of its Final Recommendation, Staff states the following: 1. Background On August 26, 2014, One Ring Networks filed an application requesting a Service Provider Certificate of Operating Authority (SPCOA) to provide facilities-based, data, and resale telecommunications throughout the State of Texas. On August 28, 2014, the Administrative Law Judge entered Order No. 1. Order No. 1 required: a. Staff to file its recommendation regarding eligibility and the requested name by September 9, 2014; b. Staff to file its recommendation recommendation on deficiencies/completeness by September 19, 2014; and c. Staff to file its final recommendation by October 7, On September 9, 2014, Staff filed its Recommendation on Eligibility and Requested Name, recommending that One Ring Networks is eligible for an SPCOA and that One Ring Networks' name is distinctive and acceptable. On September 11, 2014, the Administrative Law Judge entered Order No. 2, which found that One Ring Networks is eligible to obtain an SPCOA and that One Ring Networks' name is distinctive and acceptable. On September 19, 2014, Staff filed its Recommendation on Deficiency/Completeness of Application, recommending that One Ring Networks' application is sufficient for a review on the merits. Docket No Staff's Final Recommendation Page 1 of 4

3 On September 22, 2014, the Administrative Law Judge entered Order No. 3, which found One Ring Networks' application to be sufficient and complete. Staff's Final Recommendation is timely filed. II. PURA/Substantive Rule Requirements The Public Utility Regulatory Act, TEX. UTIL. CODE ANN (West 2007 & Supp. 2013) (PURA), outlines the requirements for the Commission to grant an SPCOA. PURA states: (a) The commission must grant or deny a certificate not later than the 60th day after the date the application for the certificate is filed. The commission may extend the deadline on good cause shown. (b) The commission shall grant each certificate on a nondiscriminatory basis after considering factors such as: (1) the technical and financial qualifications of the applicant; and (2) the applicant's ability to meet the commission's quality of service requirements. The necessary financial, technical, and managerial requirements are detailed in the Commission's substantive rules.2 With respect to the financial requirements for facilities-based certification, "an applicant must demonstrate shareholders' equity of not less than $100,000."3 For resale-only or data-only certification, "an applicant must demonstrate shareholders' equity of not less than $25,000."4 With respect to technical and managerial requirements, an applicant must provide information regarding: (a) (b) the experience and employment history of individuals that will serve in managerial positions; the applicant's complaint history, disciplinary record, and compliance record during the (60) months prior to the application filing date; 1 PURA (a)-(b). 2 See generally P.U.C. SUBST. R (f)-(g). 3 P.U.C. SUBST. R (f)(1). 4 Id. Docket No Staff's Final Recommendation Page 2 of 4',

4 (c) (d) (e) a summary of the applicant's insolvency, bankruptcy, dissolution, merger, or acquisition; whether the applicant or its principals are currently under investigation or have been penalized under deceptive trade or consumer protection laws or regulations; and whether the applicant or its principals have been convicted or found liable for fraud, theft, larceny, deceit, or violations of any securities laws, customer protection laws, or deceptive trade laws.' III. Staffs Final Recommendation Staff has reviewed One Ring Networks' application to determine if One Ring Networks meets the technical, managerial, and financial requirements of PURA (b)(1)-(2) and P.U.C. SUBST. R Gordon Van Sickle of the Commission's Competitive Markets Division has reviewed the application, and he has determined that One Ring Networks meets the technical and managerial requirements of PURA (b)(1)-(2) and P.U.C. SUBST. R (g)(1)-(3). Diane Hopingardner of the Commission's Competitive Markets Division has reviewed the application, and she has determined that One Ring Networks meets the financial requirements of PURA (b)(1) and P.U.C. SUBST. R (f)(1). Gordon Van Sickle's and Diane Hopingardner's recommendations are included as attachments to this Final Recommendation. These two recommendations provide specific information regarding whether One Ring Networks meets the technical, managerial, and financial requirements of PURA (b)(1) and P.U.C. SUBST. R Given that Staff has determined that One Ring Networks meets the technical, managerial, and financial requirements of PURA (b)(1)-(2) and P.U.C. SUBST. R , Staff recommends that the Commission approve One Ring Networks' application. Staff recommends that the Commission grant One Ring Networks an SPCOA to provide facilities-based, data, and resale telecommunication services throughout the State of Texas. 5 P.U.C. SUBST. R (g)(1)-(3). Docket No Staff's Final Recommendation Page 3 of 4

5 IV. Conclusion Staff recommends that One Ring Networks' application for an SPCOA be approved, and that One Ring Networks be granted an SPCOA to provide facilities-based, data, and resale telecommunication services throughout the State of Texas. Date: October 7, 2014 Respectfully Submitted, Joseph P. Younger Division Director Legal Division Shelah J. Cisneros Managing Attorney Legal Division Sam Chang State Bar No Attorney, Legal Division Public Utility Commission of Texas 1701 N. Congress Avenue P.O. Box Austin, Texas (512) (512) (facsimile) DOCKET NO CERTIFICATE OF SERVICE I certify that a copy of this document will be served on all parties of record on October 7, 2014, in accordance with P.U.C. Procedural Rule Sam Chang Docket No Staff's Final Recommendation Page 4 of 4

6 TO: FROM: DATE: Public Utility Commission of Texas Document Management Memorandum Gordon H. Van Sickle, Senior Utility Analyst - Competitive Markets Division^J October 7, 2014 SUBJECT: Docket No : Application of One Ring Networks II, Inc. for a Service Provider Certificate of Operating Authority Summary of Conclusions and Recommendations Staff (Staff) of the Public Utility Commission of Texas finds that One Ring Networks II, Inc. meets the technical criteria for a Service Provider Certificate of Operating Authority (SPCOA), pursuant to the Public Utility Regulatory Act (TEX. UTIL. CODE ANN ) (PURA) and the Public Utility Commission of Texas (PUC) Substantive Rule Staff recommends that One Ring Networks II, Inc. be deemed technically qualified to be granted an SPCOA to provide Facilities-based, Data and Resale telecommunications services for the entire State of Texas. If approved, the Applicant has requested that the name on the SPCOA certificate be "One Ring Networks II, Inc." Background Information on Application On August 26, 2014, One Ring Networks II, Inc. filed an application seeking an SPCOA. Order No. 1 was issued on August 28, 2014, setting a procedural schedule; establishing procedures; and requesting a protective order. On September 9, 2014, Staff filed its recommendation on eligibility and the requested name. Order No. 2 was issued on September 11, 2014, certifying eligibility and finding the name distinctive and acceptable. On September 19, 2014, Staff filed its recommendation on eligibility and the requested name. On September 19, 2014, Staff filed a recommendation on deficiency/completeness of this application. Order No. 3 was issued on September 22, 2014, providing notification that the application is deemed to be sufficient and complete. Description of Services One Ring Networks II, Inc. is a Delaware For-Profit Corporation that was established as of August 28, The Texas SoS issued an authorization to transact business in the State of Texas to One Ring Networks II, Inc. under file number as a Foreign For-Profit Corporation as of June 30, 2014 and is "In Existence". Texas SoS approved D/B/As: None. PUC approved D/B/As: None.

7 Docket No SPCOA Recommendation Page 2 of 3 We checked the legal and requested name against the certificate of operating authority (COA), service provider certificate of operating authority (SPCOA) and incumbent local exchange company (ILEC) official lists and found four similar names: One Source Communications (SPCOA No ), One Source Networks CLEC LLC (SPCOA No ), One-Call Telecom, Inc. (SPCOA No ) and Onestar Long Distance, Inc. (SPCOA No ). We checked the Interexchange Carriers (IXCs) official list and found no similar names. After reviewing the existing names, Staff concludes that the Applicant's requested name "One Ring Networks II, Inc." is distinctive and acceptable. Texas Certification and Registration Information - Its affiliate, Telenational Communications, Inc. holds SPCOA No One Ring Networks II, Inc. does not hold a certificate of convenience and necessity (CCN), a certificate of operating authority (COA) or a service provider certificate of operating authority (SPCOA) for any part of the service area covered by this application in Texas. The Applicant and its affiliate (Telenational Communications, Inc.) have applied for and been approved to provide telecommunications services in the following states: California, Georgia and Texas. California revoked Telenational Communications, Inc.'s certificate in Resolution T on April 19, 2012 for failure to file a $25,000 performance bond required by a new regulation. Telenational Communications, Inc. is no longer operating in California. One Ring Networks II, Inc. intends to provide the following Business Plan - Business and Residential - POTS and Other (Wireless broadband service, including over the top VOIP for residential and business customers). Business Only - ADSL and Long Distance. One Ring Networks II, Inc. has established a toll-free customer service number (800) One Ring Networks II, Inc. established a principal office phone number (404) , a fax number (404) , a website address (www.oneringnetworks com) and an address (JJenkins&oneringnetworks com). One Ring Networks II, Inc. requested that its service area be the entire State of Texas. Additional Information Requested for Technical Review One Ring Networks II, Inc. was not requested to provide any clarifying or technical information concerning this application. Technical Qualifications One Ring Networks II, Inc.'s management consists of key personnel that have accumulated over 25 years of telecommunications experience. Mr. John Jenkins - President and Chief Executive Officer - has over 25 years of telecommunications experience in management, operations, growth strategy, synergies, economics of scales and business consolidation. Staff performed a Google search on the following officer of One Ring Networks II, Inc.: Mr. John Jenkins (President and CEO). A search on the above listed officer revealed no

8 Docket No SPCOA Recommendation Page 3 of '3 investigations or penalties. One Ring Networks II, Inc. stated that none of its officers have ever been convicted of a felony. Compliance Check A check of the Texas Comptroller's Office concerning the Franchise Tax Account Status for One Ring Networks II, Inc. (Taxpayer ID# ) revealed the following: ACTIVE. One Ring Networks II, Inc. indicated through its responses to the PUC's Service Quality Questionnaire that it will meet the quality of service standards as they are applicable to the provided services. Complaint Check The Commission Company Contact Database shows zero complaints against One Ring Networks II, Inc. in the past 60 months. Telenational Communications, Inc. has 4 complaints against it in the past 60 months. One Ring Networks II, Inc. and its affiliate (Telenational Communications, Inc.) filed its number of customers as 802 for the past 60 months in Texas. Using the above information, the customer to complaint ratio is below 6%; therefore no further investigation is warranted. A check of the PUC Enforcement & Investigations Database indicated that One Ring Networks II, Inc. and Telenational Communications, Inc. have no outstanding notices of violation (NOVs). Conclusion Based on the information provided by the applicant and the review and analysis of this application, Staff finds that One Ring Networks II, Inc. is technically qualified to provide Facilities-based, Data and Resale telecommunications services for the entire State of Texas. Staff recommends the approval of this SPCOA Application as filed. The applicant has requested that the SPCOA be issued in the name of "One Ring Networks II, Inc."

9 Public Utility Commission of Texas Memorandum TO: FROM: Sam Chang, Attorney, Legal Division Diane Hopingardner, Competitive Markets Analyst, Competitive Markets Division DATE: October 7, 2014 RE: Docket No , Application of One Ring Networks II, Inc. for a Service Provider Certificate of Operating Authority Recommendation Regarding Approval of Application for SPCOA Certification from a Financial Perspective Application On August 26, 2014, One Ring Networks II, Inc. ("Applicant") filed an application for approval of a Service Provider Certificate of Operating Authority ("SPCOA") to provide data, facilities-based and resale telecommunications services throughout the State of Texas. Order No. 1 was issued on August 28, 2014 and requires that Commission Staff file a recommendation regarding the application no later than October 7, My recommendation addresses the financial qualification requirements of (f)(1): To obtain facilities-based certification, an applicant must demonstrate shareholders' equity of not less than $100,000. To obtain resale-only or data-only certification, an applicant must demonstrate shareholders' equity of not less than $25,000.

10 and (f)(3): Shareholders' equity shall be documented by an audited or unaudited balance sheet for the applicant's most recent quarter. The audited balance sheet shall include the independent auditor's report. The unaudited balance sheet shall include a sworn statement from an executive officer of the applicant attesting to the accuracy, in all material respects, of the information provided in the unaudited balance sheet. Conclusion One Ring Networks II, Inc. has satisfied the financial requirements of P.U.C. SUBST. R (f)(1) and of P.U.C. SUBST. R (f)(3). I recommend that the application be approved from a financial perspective

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