20030726Response to Staff Inquiry.pdf

Regulatory Affairs
EXCE
July 25,2002
Ms.Birdelle Brown
Idaho Public Utilities Commission
472 West Washington
Boise,ID 83702
Re:Application of Excel Telecommunications,Inc.for Authority to ProvideCompetitiveLocalExchangeTelecommunicationsServiceintheStateofIdaho
EXC-T-02-01
Dear Ms.Brown:
This letter is in response to your inquiry dated May 17,2002.In accordance with
your request,Excel Telecommunications,Inc.("Excel"or "Company")provides thefollowing:
1.Question l(d):On April 5,2002,Excel was acquired and became a wholly
owned subsidiary of VarTec Telecom Holding Company,a privately held
corporation.As a result,Excel is also now a privatelyheld corporation.
2.Question 1(f):Attached as Attachment A,please find the most recent
organizational chart.
3.Question l(g):Please see the Affiliate Transaction Summary that is included
as Attachment B.
4.Question 2(a):Excel anticipates providing local services in Idaho no later
than April of 2003,provided that it has received all necessary regulatory
approvals.
5.Question 4:Please see Excel's historical financials for calendar year 1999,
2000 and 2001.Additionally,Excel is attaching herewith as Attachment C a
financial guarantee provided by its parent company,VarTec Telecom,Inc.
6.Question 8:The customer contact information in Excel's local application is
currentlyaccurate.
7.Question 10:Attached herewith as Attachment D is an affidavit confirming
the Company's commitment to comply with the Commission's rules andregulations.
Exce!Telecommunications,Inc.
8750 North Central Expressway,Suite 2000 ·Dallas,TX 75231214.863.8700 Fax 214.863.872 I e-mail:[e-mail]
www.excel.com
8.Question 11:Excel commits to providing the Commission with a signed
copy of an escrow account with a bonded escrow agent,should the Companybeginacceptingcustomerdeposits.Excel will also submit quarterly reportfilingsfromtheagentrecordinganydepositsordisbursementsfromthe
account.
Please date stamp and return the enclosed extra copy of this letter in the self-
addressed,stamped envelope provided.Should you or anyone at the Idaho PublicUtilitiesCommissionhaveanyquestionsregardingthisinformation,please do not
hesitate to contact me at [phone] or Dana Hoyle at [phone].
Sincerely,
Robbin M.John on
Regulatory Cou
Enclosures
ATTACHMENT A
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ATTACHMENT B
AFFILIATE TRANSACTION SUMMARY
AFFILIATE TRANSACTIONS
VarTec Telecom,Inc.("VarTec")is the parent company to Excel Telecommunications,
Inc.("Excel"or "Applicant").VarTec is also the parent Company to other Excel
affiliates.These Excel affiliates were formed to provide discrete services to Excel and
were organized to maximize certain benefits afforded by federal tax laws and
regulations.These companies do not provide such support services to companies other
than the Excel affiliates.To further describe such associations,we have attached an
organizational chart to show the updated corporate structure of the Applicant.
Excel Management Service,Inc.provides Excel Telecommunications,Inc.with
management services in such key areas as Human Resources,Accounting,Legal,
Treasury,Information Technology (IT),Billing and Tax.
Excel Communications Marketing,Inc.provides the marketing channel-a network
of independent contractors-for the sale of Excel Telecommunications,Inc.'s
products and services.
Excel Fulfillment,Inc.supports Excel Telecommunications,Inc.through data entry
of customer account information,provisioning of paging services,and shipping
pagers to its paging customers.
Excel Teleservices,Inc.provides customer care and support to Excel
Telecommunications,Inc.'s customers through hundreds of Customer Service
Representatives.
Excel Switch Facility,Inc.is responsible for the management of Excel
Telecommunications,Inc.'s network facilities.
Telco Network Services,Inc.provides the sale of long distance services to Excel
Telecommunications,Inc.
ATTACHMENT C
FINANCIAL GUARANTEE
STATE OF TEXAS )
COUNTY OF DALLAS )
AFFIDAVIT OF CERTIFICATION BY KEVIN W.MCALEER
1.I,Kevin W.McAleer,being the duly authorized Vice President and
Treasurer for VarTec Telecom,Inc.("VarTec")located at 1600 Viceroy Drive,Dallas,
Texas 75235,with personal knowledge of the facts set forth below,hereby certify the
information contained herein.
2.VarTec is the ultimate parent company of Excel Telecommunications,
Inc.("Excel"or "Applicant").VarTec guarantees financial support of Applicant in its
endeavor to obtain certification and provide telecommunications services in the State of
Idaho.
3.I hereby declare under penalty and perjury of the laws of the state of
Texas that the foregoing is true and correct to the best of my knowledge.
Kevin W.McAleer
Executive Vice President and
Treasurer
VarTec Telecom,Inc.
1600 Viceroy Drive
Dallas,Texas 75235
[phone] (Voice)
[phone] (Facsimile)
Subscribed and sworn before me this 2 day of ,2002.
ATTACHMENT D
AFFIDAVIT CONFIRMING COMPLIANCE
AFFIDAVIT
STATEOFTEXAS §
§COUNTY OF DALLAS §
1.My name is Robbin M.Johnson.I am Regulatory Counsel of ExcelTelecommunications,Inc.("Excel"or "Applicant"),and I am authorizedandcompetenttomakethisApplicationonbehalfofExcel.
2.Excel will comply with all applicable Commission rules except thoseexpresslywaivedbytheIdahoPublicUtilitiesCommissionpursuanttoarequestfiledbyApplicant.
Robbin M.Johnson
Regulatory Counsel
SWORN TO AND SUBSCRIBED before me on this day of 7C.,4 /,20g
tary Public In and For the
tate of Texas
My commission expires:-OT
JOAN D.LANDRY !