3ECp)7~,;~0 BEFORE THE IA/t J~' MAY ) 2008/OO9 PUBLIC SERVICE COMMISSION D- PSC8C 80SC OF SOUTH (2AROLINACAROLINA OC_I°INQOC/IETlhiG DEp;<DE&x' ]' APPLICATION OF ]BASISIBASIS RETAIL, INC,,INC„D/B/AD/B/A ]BASIS,IBASIS, ) FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND )DOCKZrNO NECESSITY TO PROVIDE LONG DISTANCE ) DOCKET NO.200 F 8 TELECOMMUNICATIONSTELECOMMUMCATIONS SERVICES AND FOR ALTERNATIVE ) REGULATION OF ITS LONG DISTANCE SERVICE OFFERINGS ) " iBasis Retail, he,,Inc., doing business as "iBasis,""iBasis, ("iBasis Retail" or "Applicant")"Applicant" ) pursuant to S.C.S.C. Code Ann. §it 58-9-280 as amended,amended, 26 S.C.S.C. Reg.Reg, 103-823, and Section 253 of the Telecommunications Act of 1996, respectfullyrespectfully submitssubmits thisthis Application forfor Authority to Provide Long Distance Services within the State of South Carolina. In addition, Applicant requestsrequests that the Commission regulate its futurefuture longlong distance business service,service, consumer card, and any operator service offerings as described below inin accordanceaccordance with the principles and procedures established forfor alternative regulation in Orders No. 95- 1734 and 96-55 in Docket No. 95-661-C, and as modified by Order No. 2001-997 in Docket No. 2000- 407-C consistent with such regulationregulation grantedgranted toto other competitive interexchangeinterexchsnge carriers. Applicant proposes to offer interexchange telecommunications services toto customers from allall points within the State of South Carolina. Specifically, Applicant intends toto offer prepaid calling card services throughout South Carolina.Carolina, Customers with service,service, billing and repair inquiries, and complaints may reachreach iBasisiBasis Retail using its toll free customercustomer service number.number. Applicant's toll freefee customer service number for prepaid calling card services is 1-877-291-9783, andand a toll free customercustomer service number isis also printed on each calling card. South Carolina Application of iBasisiBasis Retail, Inc. Page 1 All servicesareavailabletwenty-fuurtwenty-four (24)hoursperday,seven (7)(7) daysaweek.TheApplicant will commenceofferingservicefollowingthethe granting of thisthis application.application, Approval of thisthis application will promote the public interest by increasing the levellevel of competitioncompetition within South Carolina. This competitioncompetition will mandate thatthat allall interoxcbangeinterexch ange telecommunicationstelecommunications providers will operate more efficiently, enabling the consumer to benefit via reduced rates. InIn support of this Application, Applicant respectfullyrespectfully states asas follows: 14 The name and address of thethe Applicant are: iBasisiBasis Retail, Inc. 20 Second Avenue Burlington, MA 01803 Telephone: (781) 505-7500 Facsimile: (781) 505-7300 Toll Free: (877)(877)291-9783 Website:Web site: www.ibasis.netwww. ibasis. net 4 All correspondence,correspondence, notices, inquiriesinquiries and other communications regarding thisthis application shouldshould be sent to: Bonnie D. Shealy Robinson, McFadden & Moore, P.C.P.C. 1901 Main Street, Suite 1200 1901 Main Street, Suite 1200 corn Post Office Box 944 Columbia, South Carolina 29202 Telephone: 803-779-8900 Facsimile: 803-252-0724 E-mail:E-maih [email protected] sly@Robins onlaw. corn KemalKernel Hawa Mintz, Levin, Cohn, Ferris, GlovskyGiovsky andand Popeo, P.C.P.C. 70l701 Pennsylvania Avenue N.N.W.W. Suite 900 Washington, DC 20004 Telephone: (202) 434-7300 Facsimile: (202) 434-7400 E-mail:E-maik [email protected]@mintz. South Carolina ApplieationApplication of iBasisiBasis Retail, Inc. Page 2 3,1 ContactContact personperson regardingregarding ongoingongoing operationsoperations ofofthetheCompanyCompany is:is: EllenEHen SchmidtSchmidt SeniorSenior CounselCounsel iBasisiBasisRetail,Retail, Ine.Inc, 2020SecondSecond AvenueAvenue Burlington,/viABurlington, MA 0180301803 Telephone:Telephone: (781)(781)505-7956505-7956 Facsimile:Facsimile; (781)(781)505-7304505-7304 E-mail:E-maih [email protected]@ibasis, net 4_ DescriptionDescription ofofApplicantApplicant ApplicantApplicant isis aa privateprivate corporationcorporation thatthat waswas incorporatedincorporated inin thethe statestate ofofDelawareDelaware onon JuneJune 29,29, 2007. ApplicantApplicant isis a wholly-ownedwholly-owned subsidiarysubsidiary ofof i.Basis,iBasis, Inc.,Inc., aa publiclypublicly tradedtraded DelawareDelaware corporationcorporation withwith headquartersheadquarters atat 2020 SecondSecond Avenue,Avenue, Burlington,Burlington, MassachusettsMassachusetts 01803.01803. AppheantApplicant's s CertificateCertificate of IncorporationIncorporation andand AuthontyAuthority toto TransactTransact Business min thethe State ofof South Carolina are attachedattached heretohereto as ExhibitExhXiit A. 5.1 Officers and Directors and Legal Counsel See Exhibit B. w Customer Service Applicant understandsunderstands the importance ofof effective customer service for prepaid caHingcalling card serviceservice consumers.consumers. ApplicantApplicant has made arrangementsarrangements for itsits customerscustomers to call iBasisiBasis Retail at itsits toll-freetoll-free customercustomer serviceservice number,number, 877-291-9783.877-291-9783. InIn addition, Customers may contacteontaet iBasis RetailRetail inin writingwriting atat thethe headquartersheadquarters addressaddress andand viavia e-maile-mail at [email protected]@ibasis.net.nct. InIn addition,addition, a toll-toll- freefree customercustomer serviceservice numbernumber willwill bebe printedprinted onon eacheach callingcalling card.card. 7J FinancialFinancial AbilityAbility ApplicantApplicant hashas sufficientsufficient financialfinancial resourcesresources toto operateoperate inin SouthSouth Carolina.Carolina. ApplicantApplicant isis aa wholly-wholly- ownedowned subsidiarysubsidiary ofof iBasis,iBasis, Inc.Inc.,, aa publiclypublicly tradedtraded company.company. InIn supportsupport ofof thethe Applicant'sApplicant's SouthSouth CarolinaCarolina ApplicationApplication ofof iBasisiBasis Retail,Retail, Inc.Inc. PagePage 33 financialabilityto providethethe proposed services,services, thethe Applicant offers copies of itsits parent company's financialfinancial statements as filedfiled with thethe Securities andand Exchange Commission at Exhibit S,8. Managerial and Technical AbilityAMity __xhibit~hibit D contains a brief overview of thethe managerial experience of Applicant. iBasis Retail has thethe managerial experience in the telecommunicationstelecommunications industryindustry that will allow it to be a successful competitive prepaid calling card service provider. 9., Proposed Service Territory Applicant proposes toto offer long distance prepaid calling card serviceservice throughout thethe State of South Carolina. Exhibit E contains the proposed tarifftariff of iBasis Retail, Inc.Inc. and Exhibit F.F containscontains thethe $5,000$5,000 indemnity bond pursuant to the Commission's rules and regulations. 10. Public InterestInterest andand Need Approval of tiffsthis application andand Applicant'sApplicant" s proposed tarifftariff will serve the public intereStinterest andand offer several benefits toto consumers inin South Carolina. First andand foremost, Applicant will offer itsits customers thethe ability toto have quality prepaid calling card services at competitive rates. The history of telecommunicationstelecommunications competition has demonstrateddemonstrated thatthat as new entrantsentrants havehave improvedimproved thethe price and performanceperfonnance of service, consumers have benefited from a wider choice of service and options. The resultingresulting reducedreduced rates thatthat competitive pressures have brought toto the market have stimulatedstimulated demand, resulting inin growing revenuesrevenues for both new entrants and established firms.firms. Applicant expects these samesame phenomena to affectaffect serviceservice over time,time, thusthus creating a larger market for all carriers. Therefore, thethe approvalapproval of Applicant's application is clearly inin thethe public interest. South Carolina Application of iBasis Retail, Inc. Page 4 11.11. WaiversWaivers andand RegulatoryRegulatory ComplianceCompliance ApplicantApplicant requestsrequests thatthat thethe CommissionCommission grantgrant itit aa waiverwaiver ofof thosethose regulatoryregulatory requirementsrequirements inapplicableinapplicable toto competitivecompetitive intcrexehangeinterexchange serviceservice providers.providers. SuchSuch rulesrules areare notnot appropriateappropriate forfor competitivecompetifive providerspmviders andand constituteconstitute anan economiceconomic barrierbarrier toto entryentry intointo thethe interexehangeinterexchange market.market. A, ApplicantApplicant requestsrequests thatthat itit bebe exemptexempt fromfrom anyany financialfinancial recordingrecording rulesrules ororregulationsregulations thatthat requirerequire aa uarriercarrier toto maintainmaintain itsits financialfinancial recordsrecords inin conformanceconformance withwith thethe UniformUniform SystemSystem of AccountsAccounts ("uSOA").("USGA"). AsAs aa competitivecompetitive provider,provider, ApplicantApplicant currentlycurrently maintainsmaintains itsits booksbooks andand recordsrecords inin accordanceaccordance withwith GenerallyGenerally AcceptedAccepted AccountingAccounting PrinciplesPrinciples ("GAAP").("GAAP"). GAAP isis used extensivelyextensively byby interexchangeinterexchange carriers.carriers.