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HomeMy WebLinkAbout20020502Application.pdfOSBORNEICRAIGP.L.C.IATTORNEYS AT LAW THEMONROE ËUILDINGTELEPHONE:(703)393-8500 F """""'3FACSDáILE:(703)393-0615 SECOND LOOR PosT OvvicE Box 2797http://www.osbornecraig.com 9625 SURVEYOR CoURT Assä,VntanaA 20108-0888MANASSAS,VIRGINIA20110-4408 May 1,2002 Ms.Jean Jewel Commission Secretary Idaho Public Utility Commission 472 W.Washington / Boise,ID 83702 VIA FEDERAL EXPRESS Re:Filing of CLEC Certification Application for BasicPhone,Inc. OC #13148 Dear Ms.Jewel: On behalf of BasicPhone,Inc.,we hereby respectfully request that youimmediatelyfiletheenclosedapplicationforCLECcertificationwiththeTelecommunicationsDivisionoftheIdahoPublicUtilityCommission.This application is submitted in triplicate pursuant to Idaho PUC rules.In addition,we have included the written application,financial exhibits,and illustrative tariff in Microsoft Word format on the enclosed diskette for your convenience. If you have any questions or concerns regarding this filing,please contact the undersigned. Very truly yours, O ORTÅ’ CRAIG Ja e S.Osb e Jo athan T.il ams Enclosures (4) BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION APPLICATIONFOR CERTIFICATION The applicant,BasicPhone,Inc.,requests a Certificate of Public Convenience and Necessity to provide basic local exchange service in Idaho. I.Proposed Services The applicant proposes to provide local residential and business dial tone on apre-paid basis,operating as a non-facilities based reseller.BasicPhone will re-sellfinishedservicesofincumbenttelecommunicationscarriers.The applicant will serve the entire state,and has no plans to build facilities in the future.Theapplicantwillappealtopeopleofalldemographicsinallmarkets,and plans toutilizeprintadvertisements,radio and television advertisements,and billboards to reach this audience.The applicant provides no other services in Idaho. II.Form of Business 1.Name,Address and Form of Business BasicPhone,Inc.,located at P.O.Box 220,2207 MacArthur Drive, Orange,Texas 77631,is a Texas corporation.It was formed to provide local residential and business dial tone on a pre-paid basis, operating as a non-facilities based reseller.As it has not yet commenced service,the applicant does not yet have a principal business address within Idaho.A certified copy of the applicant's articles of incorporation are attached hereto as Exhibit A.A certificate of good standing issued by the Idaho Secretary of State is attached hereto as Exhibit B.The name and address of applicant's registered agent for service in Idaho is CT Corporation Systems,300 North Sixth Street,Boise,ID 83702. 2.If a corporation,the names and addresses of the ten common stockholders of applicant owning the greatest number of shares of common stock and the number of such shares owned by each: Warren J.Landry,Jr.,of 2207 MacArthur Drive,Orange,TX 77631,owns 100%of the stock in the applicant and has 100% voting control. 3.Names and addresses of the officers and directors of applicant. The president of the applicant is Warren J.Landry,Jr.Mr.Landry is also the sole director.The secretary/treasurer is Sonda J. Landry. 4.Name and address of any corporation,association,or similar organization holding a 5%or greater ownership or a management interest in the applicant.As to ownership,the amount and character of the interest must be indicated.A copy of any management agreement must be attached. None. 5.Names and addresses of subsidiaries owned or controlled by applicant. None. III.Telecommunication Service 1.The date on which applicant proposes to begin construction or anticipates it will begin to provide service. June 1,2002,pending approval. 2.A written description of customer classes and customer services that the applicant proposes to offer to the public. The applicant proposes to offer,to both residential and business customers,local dial tone on a pre-paid basis,operating as a non- facilities based reseller of finished services of incumbent telecommunications carriers.The applicant will also offer additional features such as call waiting,caller ID,call forwarding, anonymous call reject,and extended area calling which are available for resale from the incumbent providers.The applicant also intends to offer pre-paid long distance service.Finally,the applicant will provide its customer base with available test and repair services as made available by incumbent carriers. IV.Service Territory 1.A description sufficient for determining whether service is to be offered in a particular location;and the names of all incumbent local exchange corporations with whom the proposed utility is likely to compete. Applicant intends to offer service to the entire state of Idaho,and to compete with all incumbent local exchange corporations. 2.Written description of the intended manner of service,for example, resold services or facilities based.A general description of the property owned or controlled by applicant. Service will be resold services of incumbent telecommunications carriers.Applicant owns no property in the state. 3.A statement describing with whom the applicant is likelyto compete. Applicant is likely to compete with all incumbent telecommunications carriers in the state,as well as with all other competitive local exchange carriers in the state. 4.A description of the property owned by the applicant clarifies the applicant's proposed services and operation. Applicant owns no property in the state. V.Financial Information 1.Current detailed balance sheets,includinga detailed income and profit and loss statements of applicant reflecting current and prior year balances for the twelve months ended as of the date of the balance sheet,or if not readily available,for the period since the close of the preceding calendar year. Applicant attaches as Exhibit C its balance sheet as of August 31, 2001,and as Exhibit D a detailed income and profit and loss statement reflecting the period since the close of the preceding calendar year. 2.If a balance sheet and income statement are not available,the applicant must submit financial data sufficient to establish that it possesses adequate financial resources to provide the proposed services. VI."Illustrative"Tariff Filings Proposed initial tariff and price sheets setting forth rates,rules,terms,and regulations applicable to the conternplated service. Attached hereto as Exhibit E. VII.Customer contacts 1.Contact information for the Applicant. a)The name,address,and telephone number and electronic mailing addresses (if available)of the person(s)responsible for consumer inquiries and complaints from the public. Shari'R.Harris,Director of Operations,2207 MacArthur Drive,Orange,TX 77631,1-888-503-3663, ernst@basicphone.org. b)A toll-free number for customer inquiries and complaints. 1-888-503-3663. c)The name,number and electronic mailing addresses (if available)of the person(s)designated as a contact for the Commission Staff for resolving complaints,inquiries and matters concerning rates and price lists or tariffs. Shari'R.Harris,Director of Operations,1-888-503-3663, harris@basicphone.com. VIII.InterconnectionAgreements 1.Statements of whether the applicant has initiated interconnection negotiations and,if so,when and with whom. Applicant's counsel is currentlyin the process of negotiating an interconnection agreement with Qwest Telecommunications. IX.Compliance with Commission Rules The applicant has reviewed all of the Commission rules and agrees to comply with them. X.Escrow Account or Security Bond 1.If a company requires advance deposits by its customers,the company must submit a signed copy of an escrow account with a bonded escrow agent or a security bond.The escrow or bond shall be sufficient to meet customer deposit refunds in case of company default. The applicant does not require advance deposits by its customers. 2.At the Commission's discretion,an additional deposit may be required to keep customers whole in case of company default. 3.The Commission will review the individual requirement of establishing an escrow or security account by the Company upon good showing by the Company for a period of two years. Respectfully submitted, BasicPhone,Inc.,by Warren J.andry,Jr.,resiÉent April ¢,2002 Corporations Section Geoffrey S.Connor EXHIBIT A P.O.Box 13697 Assistant Secretarv of State Austin,Texas 78711-3697 Office of the Secretary of State The undersigned,as Secretary of State of Texas,does hereby certify that the attached is a true and correct copy of each document on file in this office as described below: BASIC PHONE,INC. Filing Number:142192700 Articles Of Incorporation November 14,1996 In testimony whereof,I have hereunto signed my name officially and caused to be impressed hereon the Seal of State at my office in Austin,Texas on November 14, 2001. Geoffrey S.Connor Assistant Secretary of State Come visit us on the internet at http:/Avww.sos.state.tx.us/ PHONE(512)463-5555 FAX(512)463-5709 TTY7-1-1 Prepared by:Beverly Maylleid 0 2 2 7 6 0 0 7 0 5 EXHIBIT A Fill:D Articles of Incorporation Sectentae e ofo exas Basic Phone,Inc.NOV 1 4 1996 Article One Corpor*Ons Señog The name of the corporation is Basic Phone,Inc. Article Two The period of its duration is perpetual. Article Three The purpose or purposes for which the corporation is organized are the transaction of any or all lawful business for which a corporation may be incorporated under the Texas Business Corporation Act. Article Four The Aggregate number of shares which the corporation shall have authority to issue is ten thousand (10,000)shares of no par value. Article Five The Corporation will not commence business until it has received for the issuance of its shares consideration of the value of one Thousand Dollars ($1,000.00)consisting of money,labor done,or property actually received. Article Six The street address of its registered office Is: 2245 N.lith Beaumont,Texas 77703 and the name of its registered agent is Warren Landry,Jr.. Article Seven The number of directors of the initial board of directors is one (1) and the name and address of the person who shall serve as director until the first annual meeting of the shareholders or until his successor is elected and qualified is: N a me A ddress Warren Landry,Jr.2245 N.11th Beaumont,Texas 77703 J 0 2 2 7 6 a a 7 a 6 EXHIBIT A Article Eight The incorporators include all initial subscribers to the corpora- tion's shares and securities evidencing the rights to acquire its shares The name and addresse of the incorporator is: N a me A ddress Warren Landry,Jr.2245 N.11th Beaumont,Texas 77703 Article Nine The following provisions are sub3ect to the corporation's remaining a close corporation as defined by the Texas Business Corporation Act: The corporation is a close corporation;no shares and no securities evidencing the right to acquire shares shall be issued by means of public offering,solicitation,or advertisement.All such shares and securities shall be sub3ect to restrictions on transfer as permitted by Articles 2.22-2.30-2 of such Act.All issued shares,excluding treasury shares,and all issued securities evidencing the right to acquire shares of the corporation shall be held of record by no more than six (6)persons in the aggregate. Signed State of Texas County of Jefferson EXHIBIT B State of Idaho Office of the Secretary of State CERTIFICATE OF AUTHORITY OF BASIC PHONE,INC. File Number C 142654 I PETE T.CENARRUSA,Secretary of State of the State of Idaho,hereby certify that an Applicationfor Certificate of Authority,duly executed pursuant to the provisions of the Idaho Business Corporation Act,has been received in this office and is found to conforrn to law. ACCORDINGLY and by virtue of the authority vested in me by law,I issue this Certificate of Authorityto transact business in this State and attach hereto a duplicateof the applicationfor such certificate. Dated:February 21,2002 SECRETARY OF STATE BasicPhone,Inc.EXHIBIT C Application for CLEC Certificationin Idaho BASICPHONE,INC. Balance Sheet As Of August 31,2001 Last Seq.#:497 =================Assets ================Balance Cash on hand 1,540.00 PETTY CASH CORP 400.00 CASH -ORANGE SAVINGS BANK 77,387.92 CASH/SAVING-ORANGE SAVINGS BANK 131,178.32 CASH LR ARK -ORANGE SAVINGS BANK 8,463.12 CASH -TEXAS GULF BANK 6,642.58 CASH -FIRST STATE BANK (HEMPHILL)4,826.96 CASH -BANK OF AMERICA 41,881.62 CASH -WELLS FARGO 39,332.37 CASH -COMMUNITY BANK 19,997.20 CASH -NEWTON STATE BANK (JP BRANCH)23,836.17 CASH -HIBERNIA NATL BANK -LA 14,061.62 CASH -BANK ONE 24,352.93 CASH -UNION STATE BANK (KIB)6,110.96 CASH -FIRST STATE BANK OF LIVINGSTON 2,656.12 CASH -REGIONS BANK 7,471.76 LITTLE ROCK ARK AGT-A/R IN TRANSIT 1,653.31 AMARILLO -A/R IN -TRANSIT 742.00 BRAZORIA -AGENT A/R IN TRANSIT 426.04 EAGLE PASS AGENT -A/R IN TRANSIT 1,004.84 LUBBOCK AGT 1 -A/R IN -TRANSIT 216.80 LUBBOCK AGT 2 -A/R IN -TRANSIT 1,266.18 MCALLEN AGT 1 -A/R IN -TRANSIT 1,450.94 MCALLEN AGT 2 -A/R IN -TRANSIT 365.92 WESTERN UNION -A/R IN -TRANSIT 2,997.61 MONEYGRAM -A/R IN TRANSIT 1,631.82 Accounts Receivable 537,864.50 PRATT AGENT -A/R IN TRANSIT 178.01 RACELAND AGENT -A/R IN TRANSIT 4,940.90 TALLULAH AGENT -A/R IN TRANSIT 7,112.95 ST.MARTINVILLE AGT -A/R IN TRANSIT 529.61 ABBEYVILLE AGENT -A/R IN TRANSIT 260.32 LAFAYETTE AGENT (LN)-A/R IN TRANSIT 1,146.05 MONROE MN1 AGT -A/R IN TRANSIT 652.60 MONROE MN2 AGT -A/R IN TRANSIT 642.67 RUSTON AGENT RSB -A/R IN TRANSIT 488.45 ORANGE LOUISIANA -A/R IN TRANSIT 795.13 Total Current Assets 976,542.30 Office equipment 115,834.45 Furniture &Fixtures 19,406.34 Automobiles 24,000.00 A/R Shareholders vec 40,953.14 1 BasicPhone,Inc.EXHIBIT C Applicationfor CLEC Certification in Idaho BASICPHONE,INC. Balance Sheet As Of August 31,2001 Last Seq.#:497 Balance Izasehold improvement 39,948.69 Reserve for depreciation -79,773.65 Total Fixed Assets 160,366.97 Total Other Assets 0.00 Total Assets 1,136,909.27 ===============Liabilities ======= STATE W/HOLDINGS -LOUISIANA 230.44 KANSAS STATE W/HOLDINGS 83.00 VAN KAMPEN FUND 20.50 TAXES AND FEES PAYABLE 69,594.80 Corp FIT Liability -4,190.50 Total Current Liabilities 65,738.24 Notes payable -Stockholder 1,000.00 Deferred FIT Liability 116,834.00 Total Long Term Liabilities 117,834.00 Total Liabilities 183,572.24 ===============Equity================== Year to date profit/loss TEXAS 802,782.48 Year to date profit/loss LOUISIANA 32,654.68 Year to date profit/loss ARKANSAS 64,514.07 Year to date profit/loss KANSAS 177,977.96 Year to date profit/loss OKLAHOMA 15,696.16 Year to date profit/loss CORPORATE -840,085.71 Year to date profit/loss MO 558.56 Year to date profit/loss NV -160.00 Year to date profit/loss FL -217.75 Year to date profit/loss MS 186.14 Retained earnings TEXAS 1,502,867.50 Retained earnings LOUISIANA 75,537.63 Retained earnings ARKANSAS 26,913.43 Retained earnings KANSAS 90,763.60 Retained earnings OKLAHOMA 15,584.14 Retained earnings CORPORATE -1,019,760.77 Retained earnings MO 461.74 2 BasicPhone,Inc.EXHIBIT C Application for CLEC Certification in Idaho BASICPHONE,INC. Balance Sheet As Of August 31,2001 Last Seq.#:497 Balance Total Posted Equity 946,273.86 Net Income for Current Period 7,063.17 Total Equity 953,337.03 Total Liabilities and Equity 1,136,909.27 3 BasicPhone,Inc.EXHIBIT D Applicationfor CLEC Certification in Idaho BASICPHONE,INC. Income Statement From August 1,2001 Through August 31,2001 Last Seq.#:497 =========Sales ==========PTD Post %Sales YTD Post %Sales Sales Sales -Basic residential 191,157.52 37.3 1,755,937.30 38.6 Sales -Basic residential 65,072.15 12.7 503,923.21 11.1 Sales -Basic residential s 434.16 0.1 2,415.03 0.1 Sales -Basic residential 273.60 0.1 855.72 0.0 Sales -Business line TEX 801.58 0.2 16,589.82 0.4 Sales -Business line MO 56.18 0.0 504.36 0.0 Sales -Options (taxable)68,965.00 13.5 588,201.61 12.9 Sales -Options (taxable)LOU 24,640.60 4.8 170,052.92 3.7 Sales -Options (taxable)MO 58.65 0.0 795.67 0.0 Sales -Options (taxable)53.18 0.0 254.90 0.0 Sales -TEXAS 31,276.04 6.1 330,373.89 7.3 Sales -MISC LOUISIANA 2,560.51 0.5 24,478.78 0.5 Sales -ARKANSAS 22,787.80 4.4 176,917.32 3.9 Sales -KANSAS 66,131.96 12.9 623,692.25 13.7 Sales -OKLAHOMA 4,542.16 0.9 52,845.43 1.2 Sales -MISC MO 6.50 0.0 76.10 0.0 Sales -911 TEXAS 2,791.54 0.5 25,822.62 0.6 Sales -911 LOUISIANA 1,341.57 0.3 10,419.94 0.2 Sales -911 MISS 7.60 0.0 22.95 0.0 Sales -FCC TEXAS 19,626.12 3.8 181,956.13 4.0 Sales -FCC LOUISIANA 6,265.00 1.2 48,623.80 1.1 Sales -FCC MO 45.50 0.0 266.00 0.0 Sales -FCC MISS 34.80 0.0 108.75 0.0 SALES -NPC TEXAS 2,964.56 0.6 27,949.93 0.6 SALES -NPC LOUISIANA 639.58 0.1 4,985.99 0.1 SALES -NPC MO 6.50 0.0 36.85 0.0 SALES -NPC MISS 2.80 0.0 8.75 0.0 Total Sales 512,543.16 100.0 4,548,116.07 100.0 ====Cost of Goods Sold ==== Cost of Sales Direct costs -Telephone re 172,018.14 33.6 1,456,321.28 32.0 Direct costs -Telephone re 65,919.82 12.9 506,032.14 11.1 Direct costs -Telephone re 12,169.39 2.4 80,980.02 1.8 Direct costs -Telephone re 36,622.92 7.1 314,807.27 6.9 Direct costs -Telephone 177.59 0.0 30,670.84 0.7 Direct costs -Telephone 407.58 0.1 3,167.65 0.1 Direct costs -Telephone 299.52 0.1 967.47 0.0 LD card -Resold --CORP O 1,167.42 0.2 10,343.67 0.2 DIRECT COST --ARKANSAS 0.00 N/A 685.39 0.0 1 BasicPhone,Inc.EXHIBIT D Applicationfor CLEC Certification in Idaho BASICPHONE,INC. Income Statement From August 1,2001 Through August 31,2001 Last Seq.#:497 PTD Post %Sales YTD Post %Sales Total Cost of Sales 288,782.38 56.3 2,403,975.78 52.9 Gross Margin 223,760.78 43.7 2,144,140.34 47.1 =========Expenses ========= Operating Expenses Advertising -TEXAS 23,559.82 4.6 182,574.78 4.0 Advertising -LOUISIANA 9,002.35 1.8 83,201.97 1.8 Advertising -ARKANSAS 2,267.50 0.4 12,555.00 0.3 Advertising -KANSAS 5,842.00 1.1 44,904.92 1.0 AUTO -CORP.OFFICE 341.29 0.1 2,653.68 0.1 BANK SERVICE CHG -TEXAS 194.64 0.0 1,682.72 0.0 BANK SERVICE CHG -LOUISI 102.77 0.0 653.90 0.0 Bank Service Charge 0.00 N/A 268.45 0.0 BUILDING MAINTENANCE -TX 0.00 N/A 150.00 0.0 BUILDING MAINTENANCE -LA 0.00 N/A 2,200.00 0.0 BUILDING MAINTENANCE -KA 0.00 N/A 533.18 0.0 BUILDING MAINTENANCE -CO 27.05 0.0 5,172.62 0.1 Contract Labor -TEXAS 8,745.17 1.7 120,714.65 2.7 Contract labor -LOUISIANA 2,523.08 0.5 25,393.35 0.6 Contract labor -CORP OFF 24,257.75 4.7 157,482.45 3.5 HANDLING FEES -TEXAS 10,262.89 2.0 77,500.66 1.7 HANDLING FEES -LOUISIANA 2,013.42 0.4 13,739.14 0.3 HANDLING FEES -ARKANSAS 675.00 0.1 4,967.00 0.1 Handling Fees -Kansas 1,774.50 0.3 19,663.00 0.4 EMPLOYEE TRAINING -CONT.E 0.00 N/A 69.00 0.0 DONATIONS -CORP.OFFICE 216.00 0.0 2,721.00 0.1 BUSINESS CLUB DUES -CORP 128.14 0.0 1,670.12 0.0 THEFT/LOSS -TEXAS 0.85 0.0 673.85 0.0 INSURANCE -CORP.OFFICE 0.00 N/A 11,459.00 0.3 Answering service -CORP.223.93 0.0 2,268.54 0.0 OFFICE EQUIPMENTSUPPORT 869.60 0.2 10,458.97 0.2 Office Supplies -TEXAS 191.86 0.0 2,547.47 0.1 Office Supplies -LOUISIANA 63.47 0.0 898.53 0.0 Office Supplies -KANSAS 12.97 0.0 273.63 0.0 Office Supplies -CORP.6,338.02 1.2 62,809.72 1.4 Rent &lease -TEXAS 4,988.00 1.0 48,945.12 1.1 Rent &lease -LOUISIANA 3,153.00 0.6 26,287.00 0.6 Rent &lease -KANSAS 500.00 0.1 4,500.00 0.1 Rent &lease -CORP.OFF 6,450.00 1.3 55,200.00 1.2 Professional &legal fees 0.00 N/A 500.00 0.0 2 BasicPhone,Inc.EXHIBIT D Applicationfor CLEC Certification in Idaho BASICPHONE,INC. Income Statement From August 1,2001 Through August 31,2001 Last Seq.#:497 PTD Post %Sales YTD Post %Sales Professional &legal fees 1,766.00 0.3 14,144.95 0.3 Professional &legal fees 0.00 N/A 50.00 0.0 Professional &legal fees 1,000.00 0.2 1,000.00 0.0 Office equipment -TEXAS 0.00 N/A 301.66 0.0 Office equipment -CORP.5,818.50 1.1 15,422.60 0.3 VAN KAMPEN EMPLOYER CONTR 0.00 N/A 228.00 0.0 VAN KAMPEN EMPLOYER CONTR 0.00 N/A 225.30 0.0 VAN KAMPEN EMPLOYER CONT.1,172.38 0.2 8,911.84 0.2 Payroll taxes -TEXAS 461.77 0.1 2,918.94 0.1 Payroll taxes -LOUISIANA 576.08 0.1 4,848.24 0.1 Payroll taxes -KANSAS 202.53 0.0 2,175.65 0.0 Payroll taxes -CORP OFFICE 3,928.91 0.8 32,254.42 0.7 Taxes -TEXAS 0.00 N/A 8,501.27 0.2 LA TAXES -37.20 0.0 1,146.83 0.0 Taxes -ARKANSAS 30.00 0.0 255.62 0.0 Taxes -KANSAS 0.00 N/A 699.52 0.0 Taxes -OKLAHOMA 0.00 N/A 226.73 0.0 Taxes -CORP OFFICE 0.00 N/A 3,653.08 0.1 Taxes -MISSOURI 0.00 N/A 73.00 0.0 Taxes -FLORIDA 0.00 N/A 217.75 0.0 ADHITS -ARKANSAS 25.90 0.0 416.79 0.0 911 FEES -TEXAS 3,865.24 0.8 31,122.97 0.7 911 FEES -ARKANSAS 856.36 0.2 5,319.54 0.1 911 FEES -KANSAS 0.00 N/A 11,126.86 0.2 911 FEES -OKLAHOMA 219.32 0.0 2,007.18 0.0 911 FEES -MISSOURI 6.20 0.0 58.14 0.0 Municipal Franchise Fee -T 0.00 N/A 48,874.03 1.1 PENALTIES -KANSAS 0.00 N/A 29.97 0.0 PENALTIES -FEDERAL 0.00 N/A 754.86 0.0 Supplies -TEXAS 110.98 0.0 321.26 0.0 Supplies -LOUISIANA 68.89 0.0 197.36 0.0 Supplies 0.00 N/A 9.98 0.0 Supplies -CORP.OFFICE 359.96 0.1 13,328.88 0.3 Permits &Fees -TEXAS 0.00 N/A 75.00 0.0 Permits &Fees -LOUISIANA 0.0 N/A 70.00 0.0 Permits &Fees --OKLAHOMA 80.50 0.0 110.50 0.0 Permits &Fees -CORP.OFFICE 0.00 N/A 31.00 0.0 Permits &Fees -NEVADA 100.00 0.0 210.00 0.0 Permits &Fees -MISSISSIPPI 0.00 N/A 25.00 0.0 Permits &Fees -N CARO 250.00 0.0 250.00 0.0 PUBLICATIONS -CORP.OFFICE 139.56 0.0 2,139.90 0.0 Telephone service used -651.87 0.1 3,709.39 0.1 3 BasicPhone,Inc.EXHIBIT D Applicationfor CLEC Certificationin Idaho BASICPHONE,INC. Income Statement From August 1,2001 Through August 31,2001 Last Seq.#:497 PTD Post %Sales YTD Post %Sales Telephone service used -KA 102.90 0.0 881.24 0.0 Telephone service used -10,920.25 2.1 95,754.23 2.1 Meals -TEXAS 28.19 0.0 28.19 0.0 Meals -CORP.OFFICE 72.81 0.0 695.15 0.0 Traveling-TEXAS 48.07 0.0 5,244.88 0.1 Traveling -LOUISIANA 27.12 0.0 118.47 0.0 Traveling-KS 732.91 0.1 2,231.49 0.0 Traveling-CORP OFFICE 99.65 0.0 1,668.08 0.0 Traveling-Nevada 544.88 0.1 544.88 0.0 Business Promotions -TEXAS 0.00 N/A 284.53 0.0 Business Promotions -CORP 299.17 0.1 4,330.79 0.1 Repairs -TEXAS 0.00 N/A 880.11 0.0 Repairs -LOUISIANA 0.00 N/A 196.00 0.0 Repairs -CORP OFFICE 544.47 0.1 826.25 0.0 Customer refund -TEXAS 855.04 0.2 4,773.10 0.1 Customer refund -LOUISIANA 66.54 0.0 1,584.32 0.0 Customer refund -ARKANSAS 114.54 0.0 573.10 0.0 Customer refund -KANSAS 0.00 N/A 872.30 0.0 Customer refund -OKLAHOMA 0.00 N/A 69.27 0.0 Customer refund -MISSOURI 0.00 N/A 43.00 0.0 Utilities -TEXAS 582.95 0.1 4,301.93 0.1 Utilities -LOUISIANA 270.97 0.1 1,577.33 0.0 Utilities -KANSAS 421.60 0.1 2,812.44 0.1 Utilities -CORP.OFFICE 1,582.46 0.3 10,705.13 0.2 Security -TEXAS 0.00 N/A 535.84 0.0 Security -LOUISIANA 25.00 0.0 275.00 0.0 Security -CORP.OFFICE 0.00 N/A 358.83 0.0 Salaries &wages -TEXAS 5,696.23 1.1 35,589.34 0.8 Salaries &wages -LOUISIANA 6,095.46 1.2 50,694.74 1.1 Salaries &wages -KANSAS 1,802.50 0.4 21,473.50 0.5 Salaries &wages -CORP.49,807.04 9.7 400,869.37 8.8 Miscellaneous -KANSAS 0.00 N/A 73.14 0.0 Miscellaneous -CORP.OFFICE 76.78 0.0 1,540.82 0.0 Over &short -TEXAS -211.79 0.0 155.10 0.0 Over &short -LOUISIANA -29.22 0.0 -187.52 0.0 Over &short -ARKANSAS 0.00 N/A 1.68 0.0 Over &short -KANSAS 46.88 0.0 -90.42 0.0 Total Expenses 217,104.30 42.4 1,857,023.11 40.8 4 BasicPhone,Inc.EXHIBIT D Applicationfor CLEC Certification in Idaho BASICPHONE,INC. Income Statement From August 1,2001 Through August 31,2001 Last Seq.#:497 PTD Post %Sales YTD Post %Sales =======Other Income ====== Other Income CLEC INCOME 0.00 N/A 154.50 0.0 Interest income -TEXAS 42.92 0.0 482.66 0.0 Interest income -CORP 363.77 0.1 3,400.37 0.1 Total Other Income 406.69 0.1 4,037.53 0.1 Gross Income Before Taxes 7,063.17 1.4 291,154.76 6.4 =========Taxes ========== Taxes Federal income tax expens 0.00 N/A 30,185.00 0.7 Total Taxes 0.00 N/A 30,185.00 0.7 Net Income After Taxes 7,063.17 1.4 260,969.76 5.7 5 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 1 BASIC PHONE,INC. Schedule of GENERAL REGULATIONSFOR EXCHANGE SERVICES Applying to the Resold Non-Facilities Based Prepaid Local Exchange Services of this Company In the State of Idaho Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET2 CHECK SHEET Current sheets in the price list are as follows: Sheet Revision Sheet Revision 1 Original 38 Original 2 Original 39 Original 3 Original 40 Original 4 Original 41 Original 5 Original 42 Original 6 Original 43 Original 7 Original 44 Original 8 Original 45 Original 9 Original 10 Original 11 Original 12 Original 13 Original 14 Original 15 Original 16 Original 17 Original 18 Original 19 Original 20 Original 21 Original 22 Original 23 Original 24 Original 25 Original 26 Original 27 Original 28 Originaf 29 Original 30 Original 31 Original 32 Original 33 Original 34 Original 35 Original 36 Original 37 Original Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 3 TABLE OF CONTENTS Subject Matter Sheet Number Title Page.....................................................................................1 Check Sheet.................................................................................2 Table of Contents ........................................................................3 Application of Price List.................................................................5 Explanation of Symbols...................................................................6 Tariff Format..............................................................................7 Contact Information.......................................................................8 SECTION 1.0 -DEFINITIONS..........................................................9 SECTION 2.0 -REGULATIONS 2.1 Undertaking of the Company...............................................12 2.2 Shortage of Equipmentor Facilities ........................................13 2.3 Notification of Service-AffectingActivities................................13 2.4 Provision of Eq uipment and Facilities .....................................13 2.5 Terms and Conditions........................................................15 2.6 Ownership of Facilities ........................................................1 6 2.7 Liability............................................................................16 2.8 Conflicts Between Price List and Commission Rules..................21 2.9 Allowances for Interruptions in Service.................................22 2.10 Obligationsof the Customer..............................................24 2.1 1 Prohibited Uses ...............................................................25 2.12 Payments.....................................................................26 2.13 Taxes,Charges and Fees.................................................28 2.1 4 Deposits .........................................................................28 2.15 Refusal or Termination of Services.....................................28 2.1 6 Restoration of Service.....................................................34 2.17 Assignment....................................................................34 2.18 Promotions...................................................................35 2.19 E-91 1 ............................................................................35 2.20 Pu blic Notice..................................................................35 SECTION 3.0 -LOCAL EXCHANGE SERVICES 3.1 Local Exchange TelephoneService......................................36 Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 4 TABLE OF CONTENTS (Cont'd) Subiect Matter Sheet Number SECTION 3.0 -LOCAL EXCHANGE SERVICES (Cont'd) 3.1.1 Basic Local Service................................................36 3.1.2 Service Area .........................................................36 3.1.3 Local Calling Area ..................................................37 3.1.4 Optional Services...................................................37 3.1.4.1 Call Waiting .............................................37 3.1.4.2 Call Forwarding........................................37 3.1 .4.3 Non-published Number...............................37 3.1.4.4 "3 Way"Calling.........................................37 3.1 .4.5 Call Return ..............................................37 3.1.4.6 Speed Dial...............................................37 3.1.4.7 Caller ID .................................................38 3.2 Service Descriptions................................................39 3.2.1 Idaho TelephoneService Assistance Pgm.......39 3.2.2 Universal Service Fund................................44 SECTION 4.0 -RATES 4.1 Residential Service ..........................................................45 4.2 Optional and Vertical Features............................................45 4.3 Miscellaneous Charges ....................................................45 Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 5 APPLICATION OF PRICE LIST BASIC PHONE,INC.(hereinafter "The Company")has been authorized by the Idaho Public Utilities Commission (ldaho PUC)to provide competitive local exchange and interexchange services. This price list sets forth the service offerings,rates,terms and conditions applicable to the furnishing of local exchange services to residential customers within the entire state of Idaho.The rates and rules contained herein are subject to change pursuant to the rules and regulations of the Idaho PUC. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 6 EXPLANATIONOF SYMBOLS,REFERENCE MARKS,AND ABBREVIATIONS OF TECHNICAL TERMS USED IN THIS PRICE LIST The followingsymbols shall be used as set out below to describe specific changes made to the original price list: C Indicates a changed listing,rule,or condition,which may affect rates or charges D Indicates discontinued material,including a listing,rate, rule or condition I Indicates an increase M Indicatesthat the material has been relocated to another part of price list schedules with no change in text,rate,rule or condition N Indicates new material including listing,rate,rule or condition R Indicates a reduction S Indicates reissued matter T Indicates a change in wording of text,but not a change in rate,rule or condition Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 7 TARIFF FORMAT A.Sheet Numbering Sheet numbers appear in the upper right corner of the sheet.Sheets are numbered sequentially.However,new sheets are occasionally added to the Tariff.When a new sheet is added between sheets already in effect,a decimal is added.For example,a new sheet added between sheets 14 and 15 would be 14.1. B.Sheet Revision Numbers Revision numbers also appear in the upper right corner of each sheet. These numbers are used to determine the most current sheet version on file with the Commission.For example,the 4*revised Sheet 14 would cancel the 3rd revised Sheet 14.Because of various suspension periods, deferrals,etc.the Commission follows in their tariff approval process,the most current sheet number on file with the Commission is not always the tariff sheet in effect.Consult the Check Sheet for the sheet currently in effect. C.Paragraph Numbering Sequence There are six levels of paragraph coding.Each level of coding is subservient to its next higher level: 2. 2.1 2.1.1 2.1.1.1 2.1.1.1.1 2.1.1.1.1.1 D.Check Sheets When a tariff filing is made with the Commission,an updated Check Sheet accompaniesthe filing.The Check Sheet lists the sheets contained in the Tariff,with a cross reference to the current revision number.When new sheets are added,the Check Sheet is changed to reflect the revision.All revisions made in a given filing are designated by an asterisk (*).There will be no other symbolsused on this sheet if these are the only changes made to it.The Tariff user should refer to the latest Check Sheetto find out if a particular sheet is the most current on file with the Commission. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 8 CONTACT INFORMATION BASIC PHONE,INC. P.O.Box 220 2207 MacArthur Drive Orange,Texas 77631 Phone:1-888-503-3663 Fax:1-800-954-2769 Email:ernst@basicphone.org Customer Contact For establishment of service,complaints and inquires regarding service and billing,or reporting or inquiring about network outages or service problems. Customer Service:1-888-503-3663 Maintenance:1-888-503-3663 Commission Contact For complaints,inquiries and matters concerning rates and price lists. Matters concerningcustomer service: Shari'R.Ernst Phone:1-888-503-3663 Fax:1-800-954-2769 Email:ernst@basicphone.org Matters concerningtariffs and regulatory affairs: Shari'R.Ernst Director of Operations Phone:1-888-503-3663 Fax:1-800-954-2769 Email:ernst@basicphone.org Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local E×change Tariff No.1 SHEET 9 1.0 DEFINITIONS The followingwords and terms when used in this price list shall have the meaning set out by this section. 1.01 Advance Payment A payment required before the start of service.Advance payment may consist of any required construction cost,all appropriate non- recurring charges,and an estimate of the first month's recurring charges.Advance Paymentswill be applied to the first bill rendered by Company followingimplementationof services. 1.02 Agent A business representative authorized by the Company to bring about,modify,affect,accept performance of,or terminate contractual obligationsbetween the Company and its applicants or Customers. 1.03 Applicant A person who applies for telecommunications service.Includes persons seeking reconnection of service after Company-initiated termination. 1.04 Application A request made in writing for telephoneservice. 1.05 Authorized User A person,firm or corporation that is authorized by the Company to be 1.06 Automatic Number Identification (ANI) The automatic transmission of a calling party's billing account telephonenumber to a local exchange Company,interexchange carrier or a third party subscriber.The primary purpose of ANI is for billing of toll calls. 1.07 Basic Rate Area A specific geographic area,within which the schedule rates for local exchange service apply without exchange line mileage and without special rates in lieu of mileage. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 10 1.0 DEFINITIONS (Cont'd) 1.08 Company or Name of Company BASIC PHONE,INC.,a Texas corporation,which is the issuer of this tariff 1.09 Customer or Subscriber The person,firm or corporation that orders service and is responsible for the payment of charges for that service and for compliance with the Company's regulations related to that service. 1.10 Non-listed Service A directory listing service wherein a Customer is not listed in the published directory,but is listed in the directory assistance database. 1.11 Non-published Service A directory listing service wherein a Customer is not listed in the published directory or in the directory assistance database. 1.12 Recurring Charges The charges to a Customer for services,facilities and equipment, which recur monthly for the agreed upon duration of the service. 1.13 Residential Service TelephoneService provided to customers when the actual or obvious use is for domestic purposes. 1.14 Service Commencement Date The first day following the date on which the Company notifies the Customer that the requested service or facility is available for use, unless the Customer refuses to accept service because it does not conform to the standards set forth in the Service Order or in this price list,in which case the Service Commencement Date is the date on which the Customer accepts service.The Companyand the Customer may agree on a substitute Service Commencement Date. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 11 1.0 DEFINITIONS (Cont'd) 1.15 Service Order The written order for Services executed by the Customer and the Company in the format devised by the Company.The signing of a Service Order by the Customer and acceptance by the Company initiates the obligations of the respective_parties as set forth therein and pursuant to this price list;exceptthat the duration of the service is calculated from the Service Commencement Date. 1.16 Shared A facility or equipmentsystem or subsystemthat can be used simultaneouslyby several Customers. 1.17 Underlying Carrier The telecommunicationscarrier whose network facilities provide the technical capability and capacity necessary for the transmission and reception of Customer telecommunications traffic. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 12 2.0 REGULATIONS 2.1 Undertaking of the Company 2.1.1 Scope 2.1.1.1 The Company undertakes to furnish local exchange communications service on a resale basis between points within the State of Idaho under the terms of this Tariff. Customers may use services and facilities provided under this Tariff to obtain access to services offered by other service providers.The Company is responsible under this Tariff only for the services provided herein,and it assumes no responsibility for any service by any other entity. 2.1.1.2 The services offered herein may be used for any lawful purpose.There are no restrictions on sharing or resale of the Company's services. However,the Customer remains liable for all obligations under this price list even if such sharing or resale arrangements exist regardless of the Company's knowledge of these arrangements. If service is jointlyordered by more than one Customer,each is jointlyand severally liable for all obligations. 2.1.1.3 The services the Company offers shall not be used for any unlawful purposes or for any use for which the Customer has not obtained all required governmentalapprovals,authorizations,licenses, consents and permits. 2.1.1.4 Company services may be connected to the services or facilities of other communications carriers only when authorized by and in accordance with the terms and conditions of any price lists of such other communicationscarriers. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 13 2.0 REGULATIONS (Cont'd) 2.1 Undertaking of the Company (Cont'd) 2.1.1 Scope (Cont'd) 2.1.1.5 The services of the Company are furnished for the transmission of voice communicationsbut may also be used for data,facsimile,signaling, metering,or other similar communications,subject to the transmission capabilities of the technologies or combination of technologiesavailable.Service is available twenty-four hours a day,seven days a week. 2.2 Shortage of Equipmentor Facilities The furnishing of service under this price list is subjectto the availabilityon a continuing basis of all facilities necessaryto provide the service.Services are provided using resale of other carrier facilities. 2.3 Notification of Service-Affecting Activities The Company will provide the Customer with reasonable notification of service-affecting activities that may occur during the normal operation of its business.Such activities may include,but are not limited to,Company or ILEC equipmentor facilities additions,removals or rearrangements and routine preventive maintenance.Generally,such activities are not specific to an individual Customer but affect many Customers'services.No specific advance notification period is applicable to all service- affecting activities.The Company will work cooperativelywith the Customer to determine reasonable notification requirements. Notification to the Customer may not be possible with some emergency or unplanned service-affecting conditions,such as an outage resulting from cable damage. 2.4 Provision of Equipmentand Facilities 2.4.1 The Company shall make a reasonable effort to provide service to a Customer on or before a particular date,subject to the provisions of and compliance by the Customerwith the regulations contained in this price list.The Company issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 14 2.0 REGULATIONS (Cont'd) 2.4 Provision of Equipment and Facilities (Cont'd) 2.4.1 (Cont'd) does not guarantee availabilityby any such date and shall not be liable for any delays in commencing service to any Customer. 2.4.2 The Company shall make a reasonable effort to cause the ILEC to maintain its own facilities that the Company furnishes to the Customer.The Customer shall not,and the Customer shall not permit others to,rearrange,disconnect, remove,attemptto repair or otherwise interfere with any of the facilities provided by the ILEC or the Company. 2.4.3 The Customer shall be responsible for the payment of service charges as set forth herein for visits by the Company's agents or employees to the Customer's premises when the service difficulty or trouble report results from the use of equipmentor facilities provided by any party other than the ILEC or the Company,including but not limited to the Customer. 2.4.4 The Companyshall not be responsiblefor the installation, operation,or maintenance of any Customer-provided communications equipment.Where such equipment is connected to the facilities furnished pursuant to this Tariff, the responsibility of the Company shall be limited to the furnishing of facilities offered under this Tariff and to the maintenance and operation of such facilities.Beyond this responsibility,the Company shall not be responsiblefor: (a)The transmission of signals by Customer- provided equipmentor for the quality of,or defects in,such transmission;or (b)The reception of signals by Customer-provided equipment Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 15 2.0 REGULATIONS (Cont'd) 2.5 Terms and Conditions 2.5.1 Except as otherwise provided herein,service is prepaid and provided on the basis of a minimumterm of at least one month,using 24-hours per day for each day of the month, and shall continue to be provided until Customer fails to prepay for the subsequentmonth pursuant to Company's monthlyservice Reminder Notice.If Customerdoes not provide payment prior to the expiration of the prepaid service period Customer's service will be suspended.Company may,in its sole discretion,extend the service period for up to 10 days to allow Customer to make full payment for the next 30-day period upon payment of a Service Continuation Fee. For purposes of this price list,a month is considered to have thirty days.All calculations of dates set forth in this price list shall be based on calendar days,unless otherwise specified herein. 2.5.2 Customers may be required to enter into written Service Orders that may contain or reference the name of the Customer,a specific description of the service ordered,the rates to be charged,the duration of the services,and the terms and conditions of this Tariff. 2.5.3 This price list shall be interpreted and governed by the laws of the State of Idaho and the Rules issued by the Idaho Public Utilities Commission. 2.5.4 Another telephonecompany must not interfere with the right of any person or entity to obtain service directlyfrom the Company. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 16 2.0 REGULATIONS (Cont'd) 2.6 Ownership of Facilities Title to all facilities provided in accordance with this Tariff remains in the ILEC,its agents or contractors. 2.7 Liability 2.7.1 The Company shall not be liable for any claim,loss, expense or damage for any interruption,delay,error, omission,or defect in any service,facility or transmission provided under this tariff,if caused by the Underlying Carrier,an act of God,fire,war,civil disturbance,act of government,or due to any other causes beyond the Company's control. 2.7.2 The Company shall not be liable for,and shall be fully indemnified and held harmless by the Customer against any claim,loss,expense,or damage for defamation,libel,slander,invasion,infringement of copyright or patent,unauthorized use of any trademark,trade name or service mark,proprietary or creative right,or any other injury to any person, property or entity arising out of the material,data or information transmitted. 2.7.3 No agent or employeeof any other carrier or entity shall be deemed to be an agent or employee of the Company. 2.7.4 The Company shall not be liable for: (a)Any act or omission of any entity furnishing the Companyor the Company's Customers facilities or equipmentfor or with the services the Company offers,or (b)For the acts or omissions of other common carriers or their employees or agents. 2.7.5 The Company shall not be liable for and shall be indemnified and saved harmless by any Customer or issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 17 2.0 REGULATIONS (Cont'd) 2.7 Liability (Cont'd) 2.7.5 (Cont'd) by any other entity from any and all loss,claims, demands,suits,or other action or any liability whatsoever,whether suffered,made,instituted,or asserted by any Customer or any other entity for any personal injury to,or death of,any person or persons, and for any loss,damage,defacement or destruction of the premises of any Customer or any other entity or any other property whether owned or controlled by the Customer or others. 2.7.6 The Company shall not be liable for any indirect, special,incidental,or consequential damages under this Tariff including,but not limited to,loss of revenue or profits,for any reason whatsoever,including the breakdown of facilities associated with the service,or for any mistakes,omissions,delays,errors,or defects in transmission occurring during the course of furnishing service. 2.7.7 The Company shall not be liable for any defacement of or damage to the Customer's premises resulting from the furnishing of services or equipment on such premises or the installation or removal thereof,unless such defacement or damage is caused by the willful misconduct of the Company's agents or employees. No agents or employees of other entities shall be deemed to be agents or employees of the Company. 2.7.8 The entire liability of the Companyfor any claim,loss, damage or expense from any cause whatsoever shall in no event exceed sums actually paid to the Company by the Customer for the specific services giving rise to the claim,and no action or proceeding against the Company shall be commenced more than one year after the service is rendered. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 18 2.0 REGULATIONS (Cont'd) 2.7 Liability (Cont'd) 2.7.9 The Company shall not be liable for any act or omission of any other company or companies furnishing a portion of the service,or for damages associated with service,facilities or equipment which it does not furnish,or for damages which resultfrom the operation of Customer-provided systems, equipment,facilities or services which are interconnected with Company services. 2.7.10 The Company does not guarantee nor make any warranty with respect to service installations at locations of which there is present atmosphere that is explosive,prone to fire,dangerous or otherwise unsuitable for such installations.The Customershall indemnify and hold the Company harmless from any and all loss,claims,demands,suits or other action,or any liability whatsoever,whether suffered,made, instituted or asserted by the Customer or by any other party,for any personal injury to,or death of,any person or persons,or for any loss,damage or destruction of any property,whether owned by the Customer or others,caused or claimed to have been caused,directly or indirectly,by the installation, operation,failure to operate,maintenance,removal, presence,condition,locations or use of service furnished by the Company at such locations. 2.7.11 The Companyshall not be liable for the Customer's failure to fulfill its obligations to take all necessary steps including,without limitation,obtaining,installing and maintaining all necessary equipment,materials and supplies,for interconnectingthe Station,terminal equipmentor communications system of the Customer,or any third-party acting as its agent,to the ILEC's network.The Customer shall secure all licenses,permits,rights-of-way,and other arrangements necessary for such interconnection.In addition,the Customer shall insure that its equipment Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 19 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.11 (Cont'd) and/or system or that of its agent is properly interfaced with the Company's service,that the signalsemitted into the ILEC's network are of the proper mode,band-width,power,data speed,and signal level for the intended use of the Customer,and that the signals do not damage Company or ILEC equipment,injure its personnel or degrade service to other Customers.If the Customer or its agent fails to maintain and operate its equipmentand/or system or that of its agent properly,with resulting harm to Company or ILEC equipment,personnel,or the quality of service to other Customers,the Company may require the use of protective equipmentat the Customer's expense or terminate the Customer's service without liability. 2.7.12 With respect to Emergency Number 911 Service: (a)This service is offered solely as part of the resold lLEC service,where available,as an aid in handling assistance calls in connection with fire, police and other emergencies.The Company is not responsible for any losses,claims,demands,suits or any liability whatsoever,whether suffered, made,instituted or asserted by the Customer or by any other party or person for any personal injury to or death of any person or persons,and for any loss,damage or destruction of any property,whether owned by the Customer or others,caused or claimed to have been caused by: (1)Mistakes,omissions, interruptions,delays, errors or other defects in Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 20 2.0 REGULATIONS (Cont'd) 2.7 Liability (Cont'd) 2.7.12 (Cont'd) the provision of this service,or (2)Installation,operation, failure to operate, maintenance,removal, presence,condition, location or use of equipment and facilities furnishing this service. (b)Neither is the Company responsible for any infringement or invasion of the right of privacy of any person or persons, caused or claimed to have been caused, directly or indirectly,by the installation, operation,failure to operate, maintenance,removal,presence, condition,occasion or use of enhanced 911 service features and the equipment associated therewith,or by any services furnished by the Company including,but not limited to,the identification of the telephonenumber,address or name associated with the telephoneused by the party or parties accessing enhanced 911 service,and which arise out of the negligence or other wrongful act of the Company,the Customer,its Users, agencies or municipalities,or the employeesor agents of any one of them. 2.7.13 The Company's liability arising from errors or omissions in Directory Listings,other than charged listings,shall be limited to the amount of actual impairmentto the Customer's service.In cases of charged Directory Listings,the liability of the Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 21 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.13 (Cont'd) Company shall be limited to an amount not exceeding the amount of charges for the charged listings involved during the period covered by the directory in which the error or omission occurs. 2.7.14 The remedies set forth herein are exclusive and in lieu of all other warranties and remedies,whether express,implied,or statutory,INCLUDINGWITHOUT LIMITATION IMPLIEDWARRANTIESOF MERCHANTABILITYAND FITNESS FOR A PARTICULAR PURPOSE. 2.7.15 THE INCLUDED EXCULPATORYLANGUAGE DOES NOT CONSTITUTE A DETERMINATIONBY THE COMMISSIONTHAT A LIMITATION OF LIABILITY IMPOSED BY THE COMPANY SHOULD BE UPHELD IN A COURT OF LAW.ACCEPTANCE FOR FILING BY THE COMMISSION RECOGNIZES THAT IT IS A COURT'S RESPONSlBILITYTO ADJUDICATE NEGLIGENCEAND CONSEQUENTIALDAMAGE CLAIMS.IT IS ALSO THE COURT'S RESPONSIBILITYTO DETERMINE THE VALIDITY OF THE EXCULPATORYCLAUSE. 2.8 Conflicts Between Price List and Commission Rules If this Price List contains provisions that deny or restrict a Customer's rights otherwise protected by Commission rules, Commission rules supersede any conflicting tariff or price list provisions that deny or restrict any of those rights,unless otherwise ordered by the Commission,court order,or statute. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 22 2.0 REGULATIONS (Cont'd) 2.9 Allowances for Interruptions in Service When the use of service or facilities by the Company is interrupted due to any cause other than the negligence or willful act of the Customer,or the operation or failure of the facilities or equipment provided by the Customer,a pro rata adjustmentof the monthly charges subject to interruption will be allowed for the service and facilities rendered useless and inoperative by reason of the interruption whenever said interruption continues for a period of 48 hours or more from the time the interruption is reported to or known to exist by the Company,exceptas otherwise specified in this Tariff. It shall be the obligation of the Customer to notify Company immediatelyof any interruption in service for which a credit allowance is desired by Customer.Before giving such notice,the Customer shall ascertain that the trouble is not being caused by any action or omission of the Customer within his or her control,or is not in writing or equipment,if any,furnished by Customer and connected to the lLEC's terminal.If the Customer reports a service,facility or circuit to be inoperative but declines to release it for testing and repair,it is considered to be impaired,but not interrupted. 2.9.1 Credit Allowances 2.9.1.1 Credit for failure of service or equipment will be allowed only when failure is caused by or occurs in facilities or equipmentowned,provided and billed for,by the Company or ILEC 2.9.1.2 Credit allowances for failure of service or equipmentstarts when Customer notifies Company of the failure or when Company becomes aware of the failure and ceases when the operation has been restored and an attempthas been made to notify Customer. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.IdahoLocal ExchangeTariff No.1 SHEET 23 2.0 REGULATIONS (Cont'd) 2.9 Allowances for Interruptionsin Service (Cont'd) 2.9.1 (Cont'd) 2.9.1.3 For calculating credit allowances,every month is considered to have thirty (30) days.A credit allowance is applied on a pro rata basis against the monthly charges specified hereunder and is dependentupon the length of the interruption.Only those facilities on the interrupted portion of the circuit will receive a credit.Credit allowances for service outages that exceed 24 hours in durations will be rounded up to the next whole 24 hours. 2.9.2 Limitations on Allowances No credit allowance will be made for: 2.9.2.1 Interruptions due to the negligence of the Customer,or noncompliancewith,or acts of omission regarding the provisions of this price list by the Customer,authorized user or joint user; 2.9.2.2 Interruptions of service during any period in which the Company is not given full and free access to its facilities and equipment for the purpose of investigatingand correcting interruptions; 2.9.2.3 Interruptions of service during a period when the Customer has released service to the Companyfor maintenance purposes or for implementationof a Customer order for a change in service arrangements;or Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 24 2.0 REGULATIONS (Cont'd) 2.9 Allowances for Interruption of Service (Cont'd) 2.9.2 Limitations on Allowances (Cont'd) 2.9.2.4 Interruption of service due to circumstances or causes beyond the control of the Company and affecting large groups of customers. 2.10 Obligationsof the Customer 2.10.1 The Customer shall provide at no charge,as specified by the Company,any personnel,equipment,space, power,heating and air conditioning needed to operate,and maintain a proper operating environment for the Company's or ILEC's facilities and equipment installed on the Customer's premises 2.10.2 Upon suitable notification to the Customer,and at a reasonable time,the Company may make such tests and inspections as may be necessary to determine that the Customer is complying with the requirements set forth herein for the installation,operation,and maintenance of Customer-providedfacilities, equipment,and wiring in the connection of Customer- provided facilities and equipmentto Company or ILEC owned facilities and equipment. 2.10.3 If the protective requirementsfor Customer-provided equipmentare not being complied with,the Company may take such action as it deems necessary to protect its facilities,equipment,and personnel.The Company will notify the Customer promptly if there is any need for further corrective action.Within ten days of receiving this notice,the Customer must take this corrective action and notify the Company of the action taken.If the Customer fails to do this,the Company may take whatever additional action is deemed necessary,including the suspension of service,to Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 25 2.0 REGULATIONS (Cont'd) 2.10 Obligationsof the Customer (Cont'd) 2.10.3 (Cont'd) protect its facilities,equipment and personnel from harm. 2.11 Prohibited Uses The services of the Company shall not be used for any unlawful purpose or for any use as to which the Customer has not obtained all required governmentalapprovals,authorizations,licenses, consents and permits. 2.11.1 Abuse The abuse of Company Services is prohibited.Abuse includes,but is not limited to,the following activities: (a)Using service to make calls that might reasonably be expected to frighten, torment,or harass another. (b)Using service in such a way that it interferes unreasonably with the use of Company services by others. 2.11.2 Fraudulent Use The fraudulent use or the intended or attempted fraudulent use of service is prohibited and can result in the discontinuance of services as set out by this price list.Fraudulent use consists of using or attemptingto use service with the intent to avoid the payment,either in whole or in part,of the price listed charges for the service including but not limited to: (a)rearranging,tampering with,or making connections not authorized by this price list to any network components used to furnish service;or (b)using fraudulent means or devices, tricks,schemes,false or invalid numbers,false credit devices,or electronic devices. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 26 2.0 REGULATIONS(Cont'd) 2.12 Payments The Customer is responsible for payment of all charges for service provided by the Company to the Customer.If an entity other than the Company imposes charges on the Company,in addition to its own internal costs,in connection with a service for which a Company Non-Recurring Charge is specified,those charges may be passed on to the Customer. 2.12.1 Collection of Charges 2.12.1.1 Customers monthly service provided by Company shall be prepaid by Customer for each one-month period. 2.12.1.2 The Company shall present a Reminder Notice for Monthly Charges to the Customer in advance of the month for which service is provided. 2.12.1.3 For Customers who request service disconnection prior to the expiration of the prepaid service period the charge for the fraction of the month in which service was furnished will be calculated on a pro rata basis.For this purpose, every month is considered to have 30 days. 2.12.2 Disputed Bills 2.12.2.1 The Customer shall notify the Company of any disputed charges within 30 days of notification of the charges.The date of the dispute shall be the date the Company receives sufficient documentation to enable it to investigate the dispute.The date of the resolution is the date the Companycompletesits investigationand notifies the Customer of the disposition of the dispute. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 27 2.0 REGULATIONS (Cont'd) 2.12 Payments (Cont'd) 2.12.2 Disputed Bills (Cont'd) 2.12.2.1 (Cont'd) Payment of the amount due by the Customer does not constitute a waiver of the Customer's rights under the provisions of IDAPA 31.41.01.204 to challengeany billing amount due or paid to the Company. 2.12.2.2 In the event a Customer and the Company cannot resolve a billing dispute to their mutual satisfaction,the Customer may contact the Idaho PUC and proceed in accordance with the Idaho PUC's Rules.The address and telephonenumbers for the Idaho PUC are: Idaho Public Utilities Commission P.O.Box 83720 Boise,Idaho 83720-0074 334-0300 (within the local calling area) 1-800-432-0369 (from outside the local calling area) Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 28 2.0 REGULATIONS(Cont'd) 2.13 Taxes,Charges,Fees In addition to the rates and charges described in this price list,the Customer may be responsible for payment of taxes,charges or fees ordered by the Idaho PUC,the Idaho State Legislature,or local and county governments.When the Company is authorized to collect such taxes,charges or fees from the Customer,these taxes, charges and fees will be itemized separately on the Customer's bill. 2.14 Deposits 2.14.1 The Company will not require advance deposits. 2.15 Refusal or Termination of Services if the Company intends to deny an available service to an applicant, the Company will provide the applicant with a written explanationof its refusal to serve.The written explanationshall include: a)the reasons for denial of the service; b)actions the applicantmay take in order to receive the denied service;and c)a statement that the Customer may file an informal or formal complaintconcerning denial of the service with the Company or with the Idaho PUC. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 29 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.1 Grounds for Refusal to Establish Service The Company may refuse to establish service if any of the following conditions exist: 2.15.1.1 The applicant has an outstanding amount due to the Company for similar utility services and the applicant is unwillingto make acceptable arrangementswith the Company for payment; 2.15.1.2 A condition exists that,in the Company's judgment,is unsafe or hazardous to the applicant,the general population,or the Company's personnel, agentsor facilities; 2.15.1.3 The applicant is known to be in violation of the Company's price lists filed with the Commission; 2.15.1.4 The applicant fails to furnish such funds, suitable facilities,and/or rights-of-way which have been specified by the Company as necessaryto and a condition for providing service to the applicant;or 2.15.1.5 The applicant has falsified his/her identity for the purpose of obtaining service. 2.15.2 Grounds for Termination with Written Prior Notice Except as otherwise specified in this price list or Idaho PUC rules,the Company may,upon reasonable written notice to the Customer,discontinue services for any of the followingreasons: Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 30 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.2 Grounds for Termination with Written Prior Notice (Cont'd) 2.15.2.1 For nonpayment of any undisputed amounts owing to the Company; 2.15.2.2 For services provided to premises that have been vacated by the Customer; 2.15.2.3 For tampering with the Company's property; 2.15.2.4 For violation of rules,service agreements,or filed price lists; 2.15.2.5 For use of Customer equipment which adverselyaffects the Company's property,facilities,or service to its other Customers,or upon condemnation of any material portion of the facilities used by the Company to provide service to a Customer,or if a casualty renders all or any material portion of such facilities inoperable beyond feasible repair;or 2.15.2.6 For fraudulent obtaining or use of service,including,but not limited to: (a)providing false information to carrier the Company regarding the Customer's identity,address, creditworthiness,or current or planned use of common communications; (b)using or attempting to use service by rearranging, Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 31 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.2 Grounds for Termination with Written Prior Notice (Cont'd) 2.15.2.6 (Cont'd) tampering with,or making connection to the Company's service where not authorized by this price list; (c)using tricks,schemes, false or invalid numbers, false credit devices, electronic devices;or (d)any other fraudulent means or device. 2.15.3 Without Written Notice to the Customer The Company may deny or discontinue the furnishing of any and/or all service(s)to a Customer immediately and without prior notice to the Customer and without the Customer's permission for one or more of the followingreasons: 2.15.3.1 Dangerous Condition.A condition immediatelydangerous or hazardous to the life,physical safety,or property exists,or it is necessaryto prevent a violation of federal,state or local safety or health codes. 2.15.3.2 Ordered to Terminate Service.The Company is ordered to terminate service by any court,the Idaho PUC,or any other duly authorized public authority. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local E×change Tariff No.1 SHEET32 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.3 Without Written Notice to the Customer (Cont'd) 2.15.3.3 Services Obtained Illegally.The services(s)was (were)obtained, diverted or used without the authorization or knowledgeof the Company. 2.15.3.4 Customer Unable to be Contacted.The Company has tried diligently to provide reasonable notice to the Customer,but has been unsuccessful in its attemptto contact the Customer. 2.15.3.5 Misrepresentation of Identity.The Customer has misrepresentedthe Customer's identity for purposes of obtaining telephoneservice and either does not have or has an inadequate security deposit on file with the Company. 2.15.3.6 For any governmentalprohibition,or required alteration of the services provided,or any violation of any applicable law or regulation,or unlawful use of service or use of service for unlawful purposes,the Company may immediatelydiscontinue or suspend service. 2.15.4 Notice of Disconnection 2.15.4.1 Seven-Day Notice Except as otherwise provided under the provisions of IDAPA 31.41.01.303.04 and 31.41.01.305,the Company will mail to the Customer written notice of Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 33 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.4 Notice of Disconnection (Cont'd) 2.15.4.1 (Cont'd) termination at least seven (7)calendar days before the proposed date of termination.The written notice will contain the information required by IDAPA 31.41.01.306. 2.15.4.2 Twenty-Four-HourNotice At least twenty-four (24)hours before actual termination,the Company will diligentlyattemptto contact the Customer affected to apprise the Customer of the proposed action and the steps to take to avoid or delay termination.Oral Notice will contain the same information as required by IDAPA 31.41.01.306. 2.15.4.3 Additional Notice If the Company does not terminate service within seven (7)days after a proposed termination date,and the matter is not the subjectof a pending complaintbefore the Idaho PUC,or if other arrangements have not been made with the Customer,the Company will again make a diligent effort to contact the Customer to advise the Customer of the proposed action.If the Company has not terminated service within twenty-eight(28)days of mailing a written notice of termination,but still intends to terminate,the Company will again issue a written notice as set out Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 34 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.4 Notice of Disconnection (Cont'd) 2.15.4.3 Additional Notice (Cont'd) by subsection 2.15.4.1 of this price list, related to Seven-Day Notice. 2.15.5 Customer Cancellation of Service If the Customer cancels a service order or terminates service before the completion of the term of service specified in the service order for any reason,the Customer agrees to pay to the Company all costs, fees,and expenses reasonably incurred in connection with special construction and with the term of service. In addition,the Customer may be liable for termination charges up to a maximum amount equal to the total charges applicable for the remaining term specified in the service order. 2.16 Restoration of Service 2.16.1 A reconnection charge shall be imposed on any Customer whose service has been discontinued pursuant to the provisions of Section 2.15 of this price list or voluntarynon-renewal of service by Customer. The Company reserves the right to refuse to restore service until all amounts due have been paid. 2.16.2 Should the Customer request that service be restored during a period other than regular working hours, such as evenings or weekends,the Customer may be required to pay an after-hour charge for service reconnection. 2.17 Assignment The Company may,without obtaining any further consent from the Customer,assign any of its rights,privileges or obligationsunder this price list to any subsidiary,parent,or affiliate of the Company; Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 35 2.0 REGULATIONS (Cont'd) 2.17 Assignment(Cont'd) pursuantto any sale or transfer of substantiallyall the business of the Company;or pursuant to any financing,merger or reorganization of the Company.The Customer may,upon prior written consent of the Company,which consent shall not be unreasonablywithheld,assign its rights,privileges or obligations under this price list to any subsidiary,parent,or affiliate of the Customer;pursuantto any sale or transfer of substantiallyall the business of the Customer;or pursuant to any financing,merger or reorganization of the Customer. 2.18 Promotions The Company may provide promotional offerings from time to time. The Company will notify the idaho PUC five (5)days in advance of the rates,terms &conditions of any such promotions. 2.19 E911 The Company will provide necessary Customer informationto the incumbent local exchange carrier for appropriate routing of E911 calls. 2.20 Public Notice The Company shall give public notice of all proposed changes in rates.Public notice must be reasonably designed to call the attention of Customers who are affected by the proposed changes in rates.Legal advertisements alone will not be considered adequatepublic notice.Individual notice to all Customers affected will always constitute public notice Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 36 3.0 LOCAL EXCHANGE SERVICES 3.1 Local Exchange TelephoneService The Company's Local TelephoneService provides a Customer with the ability to connect to the ILEC's switching network which enables the Customer to: (a)Place or receive calls to any calling Station in the local calling area,as defined herein; (b)Access basic and enhanced 911 EmergencyService (if available through the ILEC); (c)Place or receive calls to toll free 8XX telephone numbers,where available The Company's service cannot be used to access interexchange carriers for:interLATA,intraLATA,interstate,or international calling;or access caller-paid information services (e.g.900,976). 3.1.1 Basic Local Service Basic Local Service is a service that is available for access by subscribers on a full time basis.Basic Local Service provides the Customer with a single, voice-grade communications channel and access to unlimited local calls,"911"and/or "E 911"calls,if available in the Customer's area,and toll free (e.g. "800"or "888")calls. Basic Local Service does not include any long distance service or other toll services.The following types of calls and services will be blocked by the Company through the ILEC's switch:interLATA, intraLATA,interstate,and international (e.g."1+"or "0+");collect calls;operator-assisted calls;directory assistance,third number billed calls;or any service that may be billed to Customer's telephonenumber (e.g."900"and "976"calls). 3.1.2 Service Area Where facilities are available,the Company's service area incorporates the geographic regions and exchanges currently served by Qwest Communications. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 37 3.0 LOCAL EXCHANGE SERVlCES (Cont'd) 3.1 Local Exchange TelephoneService (Cont'd) 3.1.3 Local Calling Area Local calling areas will be identical to Qwest's local calling areas as defined in Qwest's tariff on file with the Commission. 3.1.4 OptionalServices 3.1.4.1 Call Waiting Allows the Customer to be notified of an incoming call while the Customer is having a conversation with another party. 3.1.4.2 Call Forwarding Allows calls to automatically ring to another phone number. 3.1.4.3 Non-published Number Allows Customer to keep his local phone number out of the phone book or directory assistance. 3.1.4.4 "3 Way"Calling Allows the Customer to add a third party to a conversation. 3.1.4.5 Call Return The subscriber may return the last call to the Customer's telephonenumber by dialing a one or two-digitcode. 3.1.4.6 Speed Dial The subscriber may call pre-selected, pre-programmed telephonenumbers by dialing a one or two-digitcode. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 38 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.1 Local ExchangeTelephoneService (Cont'd) 3.1.4 Optional Services (Cont'd) 3.1.4.7 Caller ID Caller ID is an optional feature that allows the subscriber to see the telephonenumber of an incoming call displayed on the Customer provided display unit.The telephonenumber of an incoming call will display between the first and second rings.Caller ID service works only on calls that originate and terminate in central offices that are equipped and have SS7 connectivity. Caller ID is available to Customers by monthlysubscription only,which provides unlimited use of this service. The Caller ID box is not included in the rate for the monthlyservice fee. The telephonenumbers that will be displayed on a Caller ID subscriber's display unit include listed,non-listed and non-publishedtelephonenumbers. Telephonenumbers that will not be displayed to the Caller ID subscriber are:(1)calls from customers who use Per-Call Blocking or Per-Line Blocking; (2)calls from customers located in central offices not a part of the SS7 Signaling System;and (3)calls placed through an operator.When these types of calls are received by a Caller ID subscriber,their display unit will notify them that the calling telephonenumber is unavailable. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 39 3.0 LOCAL EXCHANGE SERVlCES (Cont'd) 3.2 Service Descriptions 3.2.1 Idaho Telecommunications Service Assistance Program (lTSAP) ITSAP consists of two programs,Lifeline and Linkup, that were developedto provide discounted rates for telephoneservice to low-income customers,thus promoting universal service.The programs are jointly sponsored (federal and state)telephoneassistance programs designed to maximize federal contributions to Idaho's low-income customers. The programs provide reductions in monthly rates for single line telephoneservice and/or reductions in one- time costs for installation of telephoneservice for qualifying customers.The program is administered by the Department of Health and Welfare in accordance with Idaho Code,§56-901. 3.2.1.1 Eligibility -To be eligible for ITSAP,the participant must: (a)Apply through the Department of Health and Welfare, (b)Be head of household, (c)Have a total gross income at or below 133%of the Office of Managementand Budgets (OMB)Poverty guidelines. 3.2.1.2 Residents of Tribal Lands may be eligible for additional federal assistance if the individual participates in one of the followingfederal assistance programs: Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 40 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.2 Service Descriptions (Cont'd) 3.2.1 ITSAP (Cont'd) 3.2.1.2 (Cont'd) (a)Bureau of Indian Affairs general assistance; (b)Tribally administered Temporary Assistance for Needy Families; (c)Head Start (only those meeting its income qualifying standard); (d)National School Lunch Program's free lunch program. 3.2.1.2.1 Eligibility and qualification determinations will be performed according to the telecommunication provider's federal tariff and/or 47 C.F.R.Part 54. 3.2.1.2.2 Each eligible participating resident of Tribal Lands must provide to its local service provider a signed document certifying under penalty of perjury that the customer receives benefits from at least one of the programs mentioned. 3.2.1.3 Lifeline Discounts-applied to tariffed monthlyrecurring rates and charges for qualifying residential customers. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 41 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.2 Service Descriptions (Cont'd) 3.2.1 ITSAP (Cont'd) 3.2.1.3 (Cont'd) Monthly discount (not to exceed the rate charged for the grade of subscribed residential basic local exchange service) $3.50 Additional federal discounts may apply: Tier 1 -Monthlyservice discount equal to the subscriber line charge $3.50 Tier 2 -Monthlyservice discount for customers of eligible telecommunications carriers who have received non-federal regulatory approvals$1.75 Tier 3 -Monthlyservice discount equal to one half of the amount of any state support up to a maximum of $1.75 Tier 4 -Eligible residents of Tribal Lands may be eligible for discounts of up to $25.This discount may not bring the local residential rate to below $1.00 per month $25.00 3.2.1.4 Linkup Discounts -applied to installation of new service,including line extensions,construction of facilities, etc.,but shall not apply to customer premises facilities or equipment. A service installation cost reduction of 50%up to $30.00 For an eligible resident of Tribal Lands, an additional reduction of up to $70 may be applied to cover 100%of the charges Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET42 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.2 Service Descriptions (Cont'd) 3.2.1 ITSAP (Cont'd) 3.2.1.4 (Cont'd) between $60 and $130 assessed for initiating telephoneservice.$70.00 3.2.1.5 Rules 3.2.1.5.1 Applies to Telecommunication service at the principal residence of the eligible subscriber/head of household. 3.2.1.5.2 A household is either an individual living alone or a group of individuals living togetherin common living quarters and facilities under such domestic arrangementsand circumstances as to create a single establishment. 3.2.1.5.3 The eligible participant can receive assistance with telephoneservice installation costs only once at a residential address. However,if the participant moves to a new address, meets the eligibility criteria and is in good standing with the telephoneservice provider,there is no limit to the number of times the Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 43 3.0 LOCAL EXCHANGE SERVlCES (Cont'd) 3.2 Service Descriptions (Cont'd) 3.2.1 ITSAP (Cont'd) 3.2.1.5 Rates(Cont'd) 3.2.1.5.3 (Cont'd) participant may receive assistance with telephone costs. 3.2.1.6 Nonrecurring charges to change to or from this program because of change in eligibility status will be waived. 3.2.1.7 Lifeline service is not available for foreign exchange service.Only one line per household will qualify for ITSAP discounts. 3.2.1.8 Customers participating in either of these assistance programs must notify the company of any changes that would affect qualification.Verification of eligibility will be established by the Departmentof Health and Welfare and will be reviewed annually. 3.2.1.9 When the customer is no longer eligible, the discount will be discontinued and regular tariff rates and charges will apply. 3.2.1.10 Recovery The cost of providing assistance through ITSAP shall be recovered by imposing a monthlysurcharge determined by the Public Utilities Commission and assessed on each line used for Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local ExchangeTariff No.1 SHEET 44 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.2 Service Descriptions (Cont'd) 3.2.1 ITSAP (Cont'd) 3.2.1.10 Recovery (Cont'd) providing residential and business access.Participating ITSAP customers are exemptedfrom this surcharge. $.05/line/month 3.2.2 Idaho USF Surcharges A surcharge is assessed on all access lines to contribute towards funding for an Idaho Universal Service Fund.The Surcharge Rate is established by the Commission and will be assessed to each business and residential line. Issued:May 1,2002 Effective:Month Day,2002 Basic Phone,Inc.Idaho Local Exchange Tariff No.1 SHEET 45 4.0 RATES AND CHARGES Company will provide specific rate and charge information with final illustrative tariff filed after interconnection process has been completed. Issued:May 1,2002 Effective:Month Day,2002 OSBORNE CRAIGP.L.C.LodATTORNEYSATLAW THEMONROE BUILDINGTELEPHONE:(703)393-8500 SECOND FLooR Post OFRCE Box 2797FACSIMILE:(703)393-0615 9625 SURVEYOR COURT MANASSAS,VmGINR2ÛlÛ$-Û$$Êhttp://www.osbornecraig.com MANASSAs,VIRGINIA20110-4408 May 15,2002 Ms.Jean Jewell Commission Secretary rnIdahoPublicUtilityCommission 472 W.Washington Boise,ID 83702 VIA FEDERAL EXPRESS Re:Filing of Supplemental Original Illustrative Tariff by BasicPhone,IR. Case No.GNR-T-02-08 Dear Ms.Jewell: On behalf of BasicPhone,Inc.,we hereby respectfully request that you immediately file the enclosed "Supplemental Original"illustrative tariff in the above- referenced case.Three (3)copies are also enclosed pursuant to your regulations. The purpose of this filing is for the "Supplemental Original"illustrative tariff to replace the original illustrative tariff filed with BasicPhone's CLEC certification application on May 1,2002. If you have any questions or concerns regarding this filing,please contact the undersigned. Very truly yours, SBORNE CRAIG I!.L.. J mie S.Osborne J nathan T.Williams cc:Carolee Hall Enclosures (4) BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET 1 BASIC PHONE,INC. Schedule of GENERAL REGULATlONS FOR EXCHANGE SERVICES Applying to the Resold Non-Facilities Based Prepaid Local Exchange Services of this Company In the State of Idaho Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"RevisedSHEET 2 Cancels Original SHEET 2 CHECK SHEET Pages listed are effective as of the date shown on each page.*Asterisk indicates changes in current tariff filing. Sheet Revision Sheet Revision 1 Original 37 *1st 2 *1st 38 *1st 3 Original 39 *1st 4 *1st 40 *1st 5 Original 41 Removed 6 Original 42 Removed 7 Original 43 Removed 8 *1st 44 Removed 9 Original 45 Removed 10 *1st 11 Original 12 Original 13 Original 14 Original 15 Original 16 *1st 17 *1st 18 *1st 19 *1st 20 *1st 21 *1st 22 *1st 23 *1st 24 *1st 25 *1st 26 Original 27 Original 28 Original 29 Original 30 Original 31 Original 32 Original 33 Original 34 Original 35 Original 36 *1st Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET3 TABLE OF CONTENTS Subject Matter Sheet Number Title Page.....................................................................................1 Check Sheet..................................................................................2 Table of Contents ...........................................................................3 Application of Price List.................................................................5 Explanationof Symbols...................................................................6 Tariff Format ..............................................................................7 Contact Information.....................................................................8 SECTION 1.0 --DEFINITIONS........................................................9 . SECTION 2.0 -REGULATIONS 2.1 Undertaking of the Company................................................12 2.2 Sho rtage of Eq uipment or Facilities ........................................1 3 2.3 Notification of Service-Affecting Activities................................1 3 2.4 Provision of E¾uipment and Facilities .....................................1 3 2.5 Terms and Conditions ......................................................1 5 2.6 Ownership of Facilities ........................................................1 6 2.7 Liability ............................................................................1 6 2.8 Conflicts Between Price List and Commission Rules..................21 2.9 Allowances for Interruptions in Service.................................22 2.10 Obligations of the Customer .............................................24 2.11 Prohibited Uses.............................................................25 2.12 Payments.......................................................................26 2.13 Taxes,Ch arges and Fees .................................................28 2.14 Deposits.........................................................................28 2.15 Refusal or Termination of Services.....................................28 2.1 6 Restoration of Service......................................................34 2.17 Assignment....................................................................34 2.18 Promotions....................................................................35 2.19 E-91 1 ............................................................................35 2.20 Public Notice..................................................................35 SECTION 3.0 -LOCAL EXCHANGE SERVICES 3.1 Local Exchange TelephoneService ......................................36 Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.11°'Revised SHEET 4 Cancels Original SHEET 4 TABLE OF CONTENTS (Cont'd) Sub ect Matter Sheet Number SECTION 3.0 --LOCAL EXCHANGE SERVICES (Cont'd) 3.1.1 Basic Local Service ................................................36 3.1 .2 Service Area.........................................................36 3.1 .3 Optional Services ...................................................37 3.1.3.1 Call Waiting ............................................37 3.1.3.2 Call Forwarding........................................37 3.1.3.3 Non-published Number...............................37 3.1.3.4 "3 Way"Calling.........................................37 3.1.3.5 Call Return .............................................37 3.1.3.6 Speed Dial...............................................37 3.1 .3.7 Caller I D .................................................38 3.2 Service Descriptions ................................................39 3.2.1 Idaho TelephoneService Assistance Pgm.......39 3.2.2 Universal Service Fund ................................39 SECTION 4.0 -RATES 4.1 Residential Service .........................................................40 4.2 Optionaland Vertical Featu res ............................................40 4.3 Miscellaneous Charges..................................................40 Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 5 APPLICATION OF PRICE LIST BASIC PHONE,INC.(hereinafter "The Company")has been authorized by the Idaho Public Utilities Commission (Idaho PUC)to provide competitive local exchange and interexchangeservices. This price list sets forth the service offerings,rates,terms and conditions applicable to the furnishing of local exchange services to residential customers within the entire state of ldaho.The rates and rules contained herein are subject to change pursuant to the rules and regulations of the Idaho PUC. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET6 EXPLANATION OF SYMBOLS,REFERENCE MARKS,AND ABBREVIATIONS OF TECHNICAL TERMS USED IN THIS PRICE LIST The followingsymbols shall be used as set out below to describe specific changes made to the original price list: C Indicates a changed listing,rule,or condition,which may affect rates or charges D Indicates discontinued material,including a listing,rate, rule or condition I Indicates an increase M Indicates that the material has been relocated to another part of price list schedules with no change in text,rate,rule or condition N Indicates new material including listing,rate,rule or condition R Indicates a reduction S Indicates reissued matter T Indicates a change in wording of text,but not a change in rate,rule or condition lssued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 7 TARIFF FORMAT A.Sheet Numbering Sheet numbers appear in the upper right corner of the sheet.Sheets are numbered sequentially.However,new sheets are occasionally added to the Tariff.When a new sheet is added between sheets already in effect,a decimal is added.For example,a new sheet added between sheets 14 and 15 would be 14.1. B.Sheet Revision Numbers Revision numbers also appear in the upper right corner of each sheet. These numbers are used to determine the most current sheet version on file with the Commission.For example,the 4th revised Sheet 14 would cancel the 3rd revised Sheet 14.Because of various suspension periods, deferrals,etc.the Commission follows in their tariff approval process,the most current sheet number on file with the Commission is not always the tariff sheet in effect.Consult the Check Sheet for the sheet currently in effect. C.Paragraph Numbering Sequence There are six levels of paragraph coding.Each level of coding is subservient to its next higher level: 2. 2.1 2.1.1 2.1.1.1 2.1.1.1.1 2.1.1.1.1.1 D.Check Sheets When a tariff filing is made with the Commission,an updated Check Sheet accompanies the filing.The Check Sheet lists the sheets contained in the Tariff,with a cross-reference to the current revision number.When new sheets are added,the Check Sheet is changed to reflect the revision.All revisions made in a given filing are designated by an asterisk (*).There will be no other symbolsused on this sheet if these are the only changes made to it.The Tariff user should refer to the latest Check Sheet to find out if a particular sheet is the most current on file with the Commission. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.11°Revised SHEET 8 Cancels Original SHEET 8 CONTACT INFORMATION BASIC PHONE,INC. P.O.Box 220 2207 MacArthur Drive Orange,Texas 77631 Phone:1-888-503-3663 Fax:1-800-954-2769 Email:harris@basicphone.com Customer Contact For establishment of service,complaints and inquires regarding service and billing,or reporting or inquiring about network outagesor service problems. Customer Service:1-888-503-3663 Maintenance:1-888-503-3663 Commission Contact For complaints,inquiries and matters concerning rates and price lists. Matters concerning customer service: Shari'R.Harris Phone:1-888-503-3663 Fax:1-800-954-2769 Email:harris@basicphone.com Matters concerning tariffs and regulatory affairs: Shari'R.Harris Director of Operations Phone:1-888-503-3663 Fax:1-800-954-2769 Email:harris@basicphone.com lssued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET 9 1.0 DEFINITIONS The following words and terms when used in this price list shall have the meaning set out by this section. 1.01 Advance Payment A payment required before the start of service.Advance payment may consist of any required construction cost,all appropriate non- recurring charges,and an estimate of the first month's recurring charges.Advance Paymentswill be applied to the first bill rendered by Company followingimplementationof services. 1.02 Agent A business representativeauthorized by the Companyto bring about,modify,affect,accept performance of,or terminate contractual obligationsbetween the Company and its applicants or Customers. 1.03 Applicant A person who applies for telecommunications service.Includes persons seeking reconnection of service after Company-initiated termination. 1.04 Application A request made in writing for telephoneservice. 1.05 Authorized User A person,firm or corporation that is authorized by the Company to be 1.06 Automatic Number Identification (ANl) The automatic transmission of a calling party's billing account telephonenumber to a local exchange Company,interexchange carrier or a third party subscriber.The primary purpose of ANI is for billing of toll calls. 1.07 Basic Rate Area A specific geographic area,within which the schedule rates for local exchange service apply without exchange line mileage and without special rates in lieu of mileage. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1 *Revised SHEET 10 Canceis Original SHEET 10 1.0 DEFINITIONS (Cont'd) 1.08 Company or Name of Company BASIC PHONE,INC.,a Texas corporation,which is the issuer of this tariff 1.09 Customer or Subscriber The person,firm or corporation that orders service and is responsible for the payment of charges for that service and for compliance with the Company's regulations related to that service. 1.10 Non-listed Service A directory listing service wherein a Customer is not listed in the published directory,but is listed in the directory assistance database. 1.11 Non-published Service A directory listing service wherein a Customer is not listed in the published directory or in the directory assistance database. 1.12 Recurring Charges The charges to a Customer for services,facilities and equipment, which recur monthlyfor the agreed upon duration of the service. 1.13 Residential Service TelephoneService provided to residential customers when the actual or obvious use is for domestic purposes. 1.14 Service Commencement Date The first day following the date on which the Company notifies the Customer that the requested service or facility is available for use, unless the Customer refuses to accept service because it does not conform to the standards set forth in the Service Order or in this price list,in which case the Service Commencement Date is the date on which the Customer accepts service.The Company and the Customer may agree on a substitute Service Commencement Date. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 OriginalSHEET 11 1.0 DEFINITIONS (Cont'd) 1.15 Service Order The written order for Services executed by the Customer and the Company in the format devised by the Company.The signing of a Service Order by the Customer and acceptance by the Company initiates the obligations of the respective_parties as set forth therein and pursuant to this price list;except that the duration of the service is calculated from the Service Commencement Date. 1.16 Shared A facility or equipmentsystem or subsystem that can be used simultaneouslyby several Customers. 1.17 Underlying Carrier The telecommunications carrier whose network facilities provide the technical capability and capacity necessaryfor the transmission and reception of Customer telecommunications traffic. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET 12 2.0 REGULATIONS 2.1 Undertaking of the Company 2.1.1 Scope 2.1.1.1 The Company undertakes to furnish local exchange communications service on a resale basis between points within the State of Idaho under the terms of this Tariff. Customers may use services and facilities provided under this Tariff to obtain access to services offered by other service providers.The Company is responsible under this Tariff onlyfor the services provided herein,and it assumes no responsibility for any service by any other entity. 2.1.1.2 The services offered herein may be used for any lawful purpose.There are no restrictions on sharing or resale of the Company's services. However,the Customer remains liable for all obligations under this price list even if such sharing or resale arrangements exist regardless of the Company's knowledgeof these arrangements. If service is jointlyordered by more than one Customer,each is jointly and severallyliable for all obligations. 2.1.1.3 The services the Company offers shall not be used for any unlawful purposes or for any use for which the Customer has not obtained all required governmentalapprovals,authorizations,licenses, consents and permits. 2.1.1.4 Company services may be connected to the services or facilities of other communications carriers only when authorized by and in accordance with the terms and conditions of any price lists of such other communications carriers. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET 13 2.0 REGULATIONS (Cont'd) 2.1 Undertaking of the Company (Cont'd) 2.1.1 Scope (Cont'd) 2.1.1.5 The services of the Company are furnished for the transmission of voice communications but may also be used for data,facsimile,signaling, metering,or other similar communications,subject to the transmission capabilities of the technologies or combination of technologiesavailable.Service is available twenty-four hours a day,seven days a week. 2.2 Shortage of Equipment or Facilities The furnishing of service under this price list is subject to the availabilityon a continuing basis of all facilities necessary to provide the service.Services are provided using resale of other carrier facilities. 2.3 Notification of Service-Affecting Activities The Company will provide the Customer with reasonable notification of service-affecting activities that may occur during the normal operation of its business.Such activities may include,but are not limited to,Company or lLEC equipment or facilities additions,removals or rearrangements and routine preventive maintenance.Generally,such activities are not specific to an individual Customer but affect many Customers'services.No specific advance notification period is applicable to all service- affecting activities.The Company will work cooperatively with the Customer to determine reasonable notification requirements. Notification to the Customer may not be possiblewith some emergency or unplanned service-affecting conditions,such as an outage resulting from cable damage. 2.4 Provision of Equipment and Facilities 2.4.1 The Company shall make a reasonable effort to provide service to a Customer on or before a particular date,subject to the provisions of and compliance by the Customer with the regulations contained in this price list.The Company lssued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 14 2.0 REGULATIONS (Cont'd) 2.4 Provision of Equipment and Facilities (Cont'd) 2.4.1 (Cont'd) does not guarantee availabilityby any such date and shall not be liable for any delays in commencing service to any Customer. 2.4.2 The Company shall make a reasonable effort to cause the ILEC to maintain its own facilities that the Company furnishes to the Customer.The Customer shall not,and the Customer shall not permit others to,rearrange,disconnect, remove,attemptto repair or otherwise interfere with any of the facilities provided by the lLEC or the Company. 2.4.3 The Customer shall be responsible for the paymentof service charges as set forth herein for visits by the Company's agents or employeesto the Customer's premises when the service difficulty or trouble report results from the use of equipment or facilities provided by any party other than the ILEC or the Company,including but not limited to the Customer. 2.4.4 The Company shall not be responsible for the installation, operation,or maintenance of any Customer-provided communications equipment.Where such equipment is connected to the facilities furnished pursuant to this Tariff, the responsibility of the Company shall be limited to the furnishing of facilities offered under this Tariff and to the maintenance and operation of such facilities.Beyond this responsibility,the Company shall not be responsiblefor: (a)The transmission of signals by Customer- provided equipmentor for the quality of,or defects in,such transmission;or (b)The reception of signals by Customer-provided equipment Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 15 2.0 REGULATIONS (Cont'd) 2.5 Terms and Conditions 2.5.1 Except as otherwise provided herein,service is prepaid and provided on the basis of a minimum term of at least one month,using 24-hours per day for each day of the month, and shall continue to be provided until Customer fails to prepay for the subsequentmonth pursuant to Company's monthlyservice Reminder Notice.If Customer does not provide payment prior to the expiration of the prepaid service period Customer's service will be suspended.Company may,in its sole discretion,extend the service period for up to 10 days to allow Customer to make full paymentfor the next 30-day period upon payment of a Service Continuation Fee. For purposes of this price list,a month is considered to have thirty days.All calculations of dates set forth in this price list shall be based on calendar days,unless otherwise specified herein. 2.5.2 Customers may be required to enter into written Service Orders that may contain or reference the name of the Customer,a specific description of the service ordered,the rates to be charged,the duration of the services,and the terms and conditions of this Tariff. 2.5.3 This price list shall be interpreted and governed by the laws of the State of Idaho and the Rules issued by the Idaho Public Utilities Commission. 2.5.4 Another telephonecompany must not interfere with the right of any person or entity to obtain service directly from the Company. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"'Revised SHEET 16 Cancels Original SHEET 16 2.0 REGULATIONS (Cont'd) 2.6 Ownershipof Facilities Title to all facilities provided in accordance with this Tariff remains in the ILEC,its agents or contractors. 2.7 Liability 2.7.1 The Companyshall not be liable for any claim,loss, expense or damage for any interruption,delay,error, omission,or defect in any service,facility or transmission provided under this tariff,if caused by an act of God,fire,war,civil disturbance,act of government,or due to any other causes beyond the Company's control. If Company is unable to provide service for a 24-hour period due to any interruption,delay,error,omission, or defect in any service,facility or transmission provided under this tariff caused by the Underlying Carrier,Customer shall be entitled to a credit as provided for in Section 2.9.1.4 herein. 2.7.2 The Company shall not be liable for,and shall be fully indemnified and held harmless by the Customer against any claim,loss,expense,or damage for defamation,libel,slander,invasion,infringementof copyright or patent,unauthorized use of any trademark,trade name or service mark,proprietary or creative right,or any other injury to any person, property or entity arising out of the material,data or information transmitted. 2.7.3 No agent or employeeof any other carrier or entity shall be deemed to be an agent or employee of the Company. 2.7.4 The Company shall not be liable for: (a)Any act or omission of any entity furnishing the Company or the Company's Customers facilities or lssued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1°*RevisedSHEET 17 Cancels Original SHEET 17 2.0 REGULATIONS (Cont'd) 2.7 Liability (Cont'd) 2.7.4(a)(Cont'd)equipmentfor or with the services the Company offers,or (b)For the acts or omissions of other common carriers or their employees or agents. 2.7.5 The Company shall not be liable for and shall be indemnified and saved harmless by any Customer or by any other entity from any and all loss,claims, demands,suits,or other action or any liability whatsoever,whether suffered,made,instituted,or asserted by any Customer or any other entityfor any personal injury to,or death of,any person or persons, and for any loss,damage,defacement or destruction of the premises of any Customer or any other entity or any other property whether owned or controlled by the Customer or others. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"RevisedSHEET 18 Cancels Original SHEET 18 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.6 The Companyshall not be liable for any indirect, special,incidental,or consequential damages under this Tariff including,but not limited to,loss of revenue or profits,for any reason whatsoever,includingthe breakdown of facilities associated with the service,or for any mistakes,omissions,delays,errors,or defects in transmission occurring during the course of furnishing service. 2.7.7 The Company shall not be liable for any defacement of or damage to the Customer's premises resulting from the furnishing of services or equipment on such premises or the installation or removal thereof,unless such defacement or damage is caused by the willful misconduct of the Company's agents or employees. No agents or employeesof other entities shall be deemed to be agentsor employees of the Company. 2.7.8 The entire liability of the Company for any claim,loss, damage or expense from any cause whatsoever shall in no event exceed sums actually paid to the Company by the Customer for the specific services giving rise to the claim,and no action or proceeding against the Company shall be commenced more than one year after the service is rendered. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Locui Exchange Tariff No.11*Revised SHEET 19 Cancels Original SHEET 19 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.9 The Company shall not be liable for any act or omission of any other company or companies furnishing a portion of the service,or for damages associated with service,facilities or equipment which it does not furnish,or for damages which result from the operation of Customer-provided systems, equipment,facilities or services which are interconnected with Company services. 2.7.10 The Company does not guarantee nor make any warranty with respect to service installations at locations of which there is present atmosphere that is explosive,prone to fire,dangerous or otherwise unsuitable for such installations.The Customer shall indemnify and hold the Company harmless from any and all loss,claims,demands,suits or other action,or any liability whatsoever,whether suffered,made, instituted or asserted by the Customer or by any other party,for any personal injury to,or death of,any person or persons,or for any loss,damage or destruction of any property,whether owned by the Customer or others,caused or claimed to have been caused,directly or indirectly,by the installation, operation,failure to operate,maintenance,removal, presence,condition,locations or use of service furnished by the Company at such locations. 2.7.11 The Company shall not be liable for the Customer's failure to fulfill its obligations to take all necessary steps including,without limitation,obtaining,installing and maintaining all necessary equipment,materials and supplies,for interconnecting the Station,terminal equipmentor communications system of the Customer,or any third-party acting as its agent,to the ILEC's network.The Customer shall secure all licenses,permits,rights-of-way,and other arrangements necessary for such interconnection.In addition,the Customer shall insure that its equipment Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 16 Revised SHEET 20 Cancels Original SHEET 20 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.11 (Cont'd) and/or system or that of its agent is properly interfaced with the Company's service,that the signalsemitted into the ILEC's network are of the proper mode,band-width,power,data speed,and signal level for the intended use of the Customer,and that the signals do not damage Company or ILEC equipment,injure its personnel or degrade service to other Customers.If the Customer or its agent fails to maintain and operate its equipment and/or system or that of its agent properly,with resulting harm to Company or ILEC equipment,personnel,or the quality of service to other Customers,the Company may require the use of protective equipment at the Customer's expense or terminate the Customer's service without liability. 2.7.12 The Company's liability arising from errors or omissions in Directory Listings,other than charged listings,shall be limited to the amount of actual impairment to the Customer's service.In cases of charged Directory Listings,the liability of the Company shall be limited to an amount not exceeding the amount of charges for the charged listings involved during the period covered by the directory in which the error or omission occurs. 2.7.13 The remedies set forth herein are exclusive and in lieu of all other warranties and remedies,whether express,implied,or statutory,INCLUDINGWITHOUT LIMITATlON IMPLIED WARRANTIESOF MERCHANTABILITYAND FITNESS FOR A PARTICULAR PURPOSE. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"Revised SHEET 21 CancelsOriginal SHEET 21 2.0 REGULATIONS(Cont'd) 2.7 Liability (Cont'd) 2.7.14 THE INCLUDED EXCULPATORY LANGUAGE DOES NOT CONSTITUTE A DETERMINATIONBY THE COMMISSIONTHAT A LIMITATION OF LIABILITY IMPOSED BY THE COMPANY SHOULD BE UPHELD IN A COURT OF LAW.ACCEPTANCE FOR FILING BY THE COMMISSION RECOGNIZES THAT IT IS A COURT'S RESPONSIBILITYTO ADJUDICATE NEGLIGENCE AND CONSEQUENTIAL DAMAGE CLAIMS.IT IS ALSO THE COURT'S RESPONSIBILITYTO DETERMINE THE VALIDITY OF THE EXCULPATORYCLAUSE. 2.8 Conflicts Between Price List and Commission Rules lf this Price List contains provisions that deny or restrict a Customer's rights otherwise protected by Commission rules, Commission rules supersede any conflicting tariff or price list provisions that deny or restrict any of those rights,unless otherwise ordered by the Commission,court order,or statute. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"'Revised SHEET 22 Cancels Original SHEET 22 2.0 REGULATIONS(Cont'd) 2.9 Allowances for Interruptionsin Service A credit allowance will be given for interruptions of service,subject to the provisions of this section. 2.9.1 Credit for Service Interruptions A credit allowance will be made when an interruption in service occurs.An interruption in service is considered to exist when the local service quality deteriorates to such an extent that the customer cannot make local calls or cannot receive local calls or cannot use the service for voice grade communications because of cross talk,static or other transmission problem. An interruption period begins when the Customer reports a circuit,service or facility to be interrupted and releases it for testing. 2.9.1.1 The Company must restore service: within sixteen (16)hours after the report of the outage if the customer notifies the telephonecompanythat the service outagecreates an emergency;or 2.9.1.2 within 24 hours after the report of the outageif no emergency exists. 2.9.1.3 Outagesreported between noon on Saturday and 6:00 p.m.on the following Sunday must be restored within forty- eight (48)hours or by 6:00 p.m.on the followingMonday,whichever is sooner. 2.9.1.4 If the Company does not restore service within the times required by this paragraph,the Company will credit the customer's account for an amount equal to the monthly rate for one (1)month of basic local exchange service. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.116'Revised SHEET 23 Cancels Original SHEET 23 2.0 REGULATIONS (Cont'd) 2.9 Allowances for Interruption of Service (Cont'd) 2.9.2 Limitations on Allowances No credit allowance will be made for: 2.9.2.1 Interruptions due to the negligence of the Customer,or noncompliancewith,or acts of omission regarding the provisions of this price list by the Customer,authorized user or joint user; 2.9.2.2 Interruptions of service during any period in which the Company is not given full and free access to its facilities and equipment for the purpose of investigatingand correcting interruptions; 2.9.2.3 Interruptions of service during a period when the Customer has released service to the Companyfor maintenance purposes or for implementationof a Customer order for a change in service arrangements;or Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Lot,-Exchange Tariff No.1 1"Revised SHEET 24 Cancels OriginalSHEET 24 2.0 REGULATIONS (Cont'd) 2.10 Obligationsof the Customer 2.10.1 The Customer shall provide at no charge,as specified by the Company,any personnel,equipment,space, power,heating and air conditioning needed to operate,and maintain a proper operating environment for the Company's or ILEC's facilities and equipment installed on the Customer's premises 2.10.2 Upon suitable notification to the Customer,and at a reasonabletime,the Company may make such tests and inspections as may be necessary to determine that the Customer is complying with the requirements set forth herein for the installation,operation,and maintenance of Customer-provided facilities, equipment,and wiring in the connection of Customer- provided facilities and equipment to Company or ILEC owned facilities and equipment. 2.10.3 If the protective requirements for Customer-provided equipment are not being complied with,the Company may take such action as it deems necessary to protect its facilities,equipment,and personnel.The Company will notify the Customer promptly if there is any need for further corrective action.Within ten days of receiving this notice,the Customer must take this corrective action and notify the Companyof the action taken.If the Customer fails to do this,the Company may take whatever additional action is deemed necessary,including the suspension of service,to protect its facilities,equipmentand personnel from harm. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"RevisedSHEET25 Cancels Original SHEET 25 2.0 REGULATIONS(Cont'd) 2.11 Prohibited Uses The services of the Company shall not be used for any unlawful purpose or for any use as to which the Customer has not obtained all required governmentalapprovals,authorizations,licenses, consents and permits. 2.11.1 Abuse The abuse of Company Services is prohibited.Abuse includes,but is not limited to,the followingactivities: (a)Using service to make calls that might reasonably be expectedto frighten, torment,or harass another. (b)Using service in such a way that it interferes unreasonably with the use of Company services by others. 2.11.2 Fraudulent Use The fraudulent use or the intended or attempted fraudulent use of service is prohibited and can result in the discontinuance of services as set out by this price list.Fraudulent use consists of using or attemptingto use service with the intent to avoid the payment,either in whole or in part,of the price listed charges for the service including but not limited to: (a)rearranging,tamperingwith,or making connections not authorized by this price list to any network components used to furnish service;or (b)using fraudulent means or devices, tricks,schemes,false or invalid numbers,false credit devices,or electronic devices. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 Original SHEET 26 2.0 REGULATIONS (Cont'd) 2.12 Payments The Customer is responsible for payment of all charges for service provided by the Company to the Customer.If an entity other than the Company imposes charges on the Company,in addition to its own internal costs,in connection with a service for which a Company Non-Recurring Charge is specified,those charges may be passed on to the Customer. 2.12.1 Collection of Charges 2.12.1.1 Customers monthly service provided by Company shall be prepaid by Customer for each one-month period. 2.12.1.2 The Company shall present a Reminder Notice for Monthly Charges to the Customer in advance of the month for which service is provided. 2.12.1.3 For Customers who request service disconnection prior to the expiration of the prepaid service period the charge for the fraction of the month in which service was furnished will be calculated on a pro rata basis.For this purpose, every month is considered to have 30 days. 2.12.2 Disputed Bills 2.12.2.1 The Customer shall notify the Company of any disputed charges within 30 days of notification of the charges.The date of the dispute shall be the date the Company receives sufficient documentation to enable it to investigate the dispute.The date of the resolution is the date the Company completes its investigationand notifies the Customer of the disposition of the dispute. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 27 2.0 REGULATIONS(Cont'd) 2.12 Payments (Cont'd) 2.12.2 Disputed Bills (Cont'd) 2.12.2.1 (Cont'd) Payment of the amount due by the Customer does not constitute a waiver of the Customer's rights under the provisions of IDAPA 31.41.01.204 to challenge any billing amount due or paid to the Company. 2.12.2.2 In the event a Customer and the Company cannot resolve a billing dispute to their mutual satisfaction,the Customer may contact the Idaho PUC and proceed in accordance with the Idaho PUC's Rules.The address and telephonenumbers for the Idaho PUC are: Idaho Public Utilities Commission P.O.Box 83720 Boise,Idaho 83720-0074 334-0300 (withinthe local calling area) 1-800-432-0369 (from outside the local calling area) Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 28 2.0 REGULATIONS (Cont'd) 2.13 Taxes,Charges,Fees In addition to the rates and charges described in this price list,the Customer may be responsible for payment of taxes,charges or fees ordered by the Idaho PUC,the Idaho State Legislature,or local and county governments.When the Company is authorized to collect such taxes,charges or fees from the Customer,these taxes, charges and fees will be itemized separately on the Customer's bill. 2.14 Deposits 2.14.1 The Company will not require advance deposits. 2.15 Refusal or Termination of Services lf the Company intends to deny an available service to an applicant, the Company will provide the applicant with a written explanation of its refusal to serve.The written explanationshall include: a)the reasons for denial of the service; b)actions the applicant may take in order to receive the denied service;and c)a statement that the Customer may file an informal or formal complaintconcerning denial of the service with the Company or with the Idaho PUC. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 29 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.1 Grounds for Refusal to Establish Service The Company may refuse to establish service if any of the following conditions exist: 2.15.1.1 The applicant has an outstanding amount due to the Companyfor similar utility services and the applicant is unwilling to make acceptable arrangements with the Company for payment; 2.15.1.2 A condition exists that,in the Company's judgment,is unsafe or hazardous to the applicant,the general population,or the Company's personnel, agentsor facilities; 2.15.1.3 The applicant is known to be in violation of the Company's price lists filed with the Commission; 2.15.1.4 The applicant fails to furnish such funds, suitable facilities,and/or rights-of-way which have been specified by the Company as necessary to and a condition for providing service to the applicant;or 2.15.1.5 The applicant has falsified his/her identity for the purpose of obtaining service. 2.15.2 Grounds for Termination with Written Prior Notice Except as otherwise specified in this price list or Idaho PUC rules,the Company may,upon reasonable written notice to the Customer,discontinue services for any of the followingreasons: Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 30 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.2 Grounds for Termination with Written Prior Notice (Cont'd) 2.15.2.1 For nonpayment of any undisputed amounts owing to the Company; 2.15.2.2 For services provided to premises that have been vacated by the Customer; 2.15.2.3 For tampering with the Company's property; 2.15.2.4 For violation of rules,service agreements,or filed price lists; 2.15.2.5 For use of Customer equipmentwhich adverselyaffects the Company's property,facilities,or service to its other Customers,or upon condemnation of any material portion of the facilities used by the Company to provide service to a Customer,or if a casualty renders all or any material portion of such facilities inoperable beyond feasible repair;or 2.15.2.6 For fraudulent obtaining or use of service,including,but not limited to: (a)providing false information to carrier the Company regarding the Customer's identity,address, creditworthiness,or current or planned use of common communications; (b)using or attempting to use service by rearranging, Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 31 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.2 Grounds for Termination with Written Prior Notice (Cont'd) 2.15.2.6 (Cont'd) tampering with,or making connection to the Company's service where not authorized by this price list; (c)using tricks,schemes, false or invalid numbers, false credit devices, electronic devices;or (d)any other fraudulent means or device. 2.15.3 Without Written Notice to the Customer The Company may deny or discontinue the furnishing of any and/or all service(s)to a Customer immediately and without prior notice to the Customer and without the Customer's permission for one or more of the followingreasons: 2.15.3.1 Dangerous Condition.A condition immediatelydangerous or hazardous to the life,physical safety,or property exists,or it is necessary to prevent a violation of federal,state or local safety or health codes. 2.15.3.2 Ordered to Terminate Service.The Company is ordered to terminate service by any court,the Idaho PUC,or any other duly authorized public authority. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 32 2.0 REGULATIONS(Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.3 Without Written Notice to the Customer (Cont'd) 2.15.3.3 Services Obtained lllegally.The services(s)was (were)obtained, diverted or used without the authorization or knowledgeof the Company. 2.15.3.4 Customer Unable to be Contacted.The Company has tried diligently to provide reasonable notice to the Customer,but has been unsuccessful in its attemptto contact the Customer. 2.15.3.5 Misrepresentation of Identity.The Customer has misrepresentedthe Customer's identity for purposes of obtaining telephoneservice and either does not have or has an inadequate security deposit on file with the Company. 2.15.3.6 For any governmentalprohibition,or required alteration of the services provided,or any violation of any applicablelaw or regulation,or unlawful use of service or use of service for unlawful purposes,the Company may immediatelydiscontinue or suspend service. 2.15.4 Notice of Disconnection 2.15.4.1 Seven-Day Notice Except as otherwise provided under the provisions of IDAPA 31.41.01.303.04 and 31.41.01.305,the Company will mail to the Customer written notice of Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 33 2.0 REGULATIONS (Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.4 Notice of Disconnection (Cont'd) 2.15.4.1 (Cont'd) termination at least seven (7)calendar days before the proposed date of termination.The written notice will contain the information required by IDAPA 31.41.01.306. 2.15.4.2 Twenty-Four-HourNotice At least twenty-four (24)hours before actual termination,the Company will diligently attemptto contact the Customer affected to apprise the Customer of the proposed action and the steps to take to avoid or delay termination.Oral Notice will contain the same information as required by IDAPA 31.41.01.306. 2.15.4.3 Additional Notice If the Company does not terminate service within seven (7)days after a proposed termination date,and the matter is not the subject of a pending complaint before the Idaho PUC,or if other arrangements have not been made with the Customer,the Company will again make a diligent effort to contact the Customer to advise the Customer of the proposed action.If the Company has not terminated service within twenty-eight(28)days of mailing a written notice of termination,but still intends to terminate,the Companywill again issue a written notice as set out Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 34 2.0 REGULATIONS(Cont'd) 2.15 Refusal or Termination of Services (Cont'd) 2.15.4 Notice of Disconnection (Cont'd) 2.15.4.3 Additional Notice (Cont'd) by subsection 2.15.4.1 of this price list, related to Seven-Day Notice. 2.15.5 Customer Cancellation of Service If the Customer cancels a service order or terminates service before the completion of the term of service specified in the service order for any reason,the Customer agrees to pay to the Company all costs, fees,and expenses reasonably incurred in connection with special construction and with the term of service. In addition,the Customer may be liable for termination charges up to a maximum amount equal to the total charges applicable for the remaining term specified in the service order. 2.16 Restoration of Service 2.16.1 A reconnection charge shall be imposed on any Customer whose service has been discontinuedpursuanttotheprovisionsofSection2.15 of this price list or voluntarynon-renewal of service by Customer. The Company reserves the right to refuse to restore service until all amounts due have been paid. 2.16.2 Should the Customer request that service be restored during a period other than regular working hours, such as evenings or weekends,the Customer may be required to pay an after-hour charge for service reconnection. 2.17 Assignment The Company may,without obtaining any further consent from the Customer,assign any of its rights,privileges or obligationsunder this price list to any subsidiary,parent,or affiliate of the Company; Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 Original SHEET 35 2.0 REGULATIONS (Cont'd) 2.17 Assignment(Cont'd) pursuant to any sale or transfer of substantiallyall the business of the Company;or pursuant to any financing,merger or reorganization of the Company.The Customer may,upon prior written consent of the Company,which consent shall not be unreasonably withheld,assign its rights,privileges or obligations under this price list to any subsidiary,parent,or affiliate of the Customer;pursuantto any sale or transfer of substantiallyall the business of the Customer;or pursuant to any financing,merger or reorganization of the Customer. 2.18 Promotions The Company may provide promotional offerings from time to time. The Company will notify the Idaho PUC five (5)days in advance of the rates,terms &conditions of any such promotions. 2.19 E911 The Company will provide necessary Customer information to the incumbent local exchange carrier for appropriate routing of E911 calls. 2.20 Public Notice The Company shall give public notice of all proposed changes in rates.Public notice must be reasonably designed to call the attention of Customers who are affected by the proposed changes in rates.Legal advertisements alone will not be considered adequate public notice.Individual notice to all Customers affected will always constitute public notice issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"'Revised SHEET 36 Cancels Original SHEET 36 3.0 LOCAL EXCHANGE SERVICES 3.1 Local Exchange TelephoneService The Company's Local TelephoneService provides a Customer with the ability to connect to the ILEC's switching network which enables the Customer to: (a)Place or receive calls to any calling Station in the local calling area,as defined herein; (b)Access basic and enhanced 911 EmergencyService (if available through the lLEC); (c)Place or receive calls to toll free 8XX telephone numbers,where available (d)Place or receive interLATA,intraLATA,interstate,or international calls,or access caller-paid information services (e.g.900,976) 3.1.1 Basic Local Service Basic Local Service is a service that is available for access by subscribers on a full time basis.Basic Local Service provides the Customer with a single, voice-grade communications channel and access to unlimited local calls,"911"and/or "E 911"calls,if available in the Customer's area,and toll free (e.g. "800"or "888")calls. Customers that so desire may utilize the Company's Basic Local Service to place interLATA,intraLATA, interstate or international calls via the interexchange carrier of their choice. 3.1.2 Local Service Area The Company's local service area incorporatesthe entire state of Idaho. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1"'Revised SHEET 37 Cancels Original SHEET 37 3.0 LOCAL EXCHANGE SERVlCES (Cont'd) 3.1 Local Exchange TelephoneService (Cont'd) 3.1.3 OptionalServices 3.1.3.1 Call Waiting Allows the Customer to be notified of an ----incoming call while the Customer is having a conversation with another party. 3.1.3.2 Call Forwarding Allows calls to automaticallyring to another phone number. 3.1.3.3 Non-published Number Allows Customer to keep his local phone number out of the phone book or directory assistance. 3.1.3.4 "3 Way"Calling Allows the Customer to add a third party to a conversation. 3.1.3.5 Call Return The subscriber may return the last call to the Customer's telephonenumber by dialing a one or two-digitcode. 3.1.3.6 Speed Dial The subscriber may call pre-selected, pre-programmed telephonenumbers by dialing a one or two-digitcode. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1 *RevisedSHEET 38 Cancels Original SHEET 38 3.0 LOCAL EXCHANGE SERVlCES (Cont'd) 3.1 Local Exchange TelephoneService (Cont'd) 3.1.3 Optional Services (Cont'd) 3.1.3.7 Caller ID Caller ID is an optional feature that allows the subscriber to see the telephone number of an incoming call displayed on the Customer provided display unit.The telephonenumber of an incoming call will display between the first and second rings. Caller ID service works only on calls that originate and terminate in central offices that are equipped and have SS7 connectivity.Caller ID is available to Customers by monthly subscription only, which provides unlimited use of this service. The Caller ID box is not included in the rate for the monthly service fee. The telephonenumbers that will be displayed on a Caller ID subscriber's display unit include listed,non-listed and non-published telephonenumbers. Telephonenumbers that will not be displayed to the Caller ID subscriber are: (1)calls from customers who use Per-Call Blocking or Per-Line Blocking;(2)calls from customers located in central offices not a part of the SS7 Signaling System;and (3) calls placed through an operator.When these types of calls are received by a Caller ID subscriber,their display unit will notify them that the calling telephonenumber is unavailable. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local ExchangeTariff No.1 1"'Revised SHEET39 Cancels Original SHEET39 3.0 LOCAL EXCHANGE SERVICES (Cont'd) 3.2 Service Descriptions 3.2.1 Idaho TelecommunicationsService Assistance Program (ITSAP) ITSAP consists of two programs,Lifeline and Linkup, that were developedto provide discounted rates fortelephoneservicetolow-income customers,thus promoting universal service.The programs are jointly sponsored (federal and state)telephoneassistance programs designed to maximize federal contributions to ldaho's low-income customers. The progr s provide reductions in monthly rates for single line telephoneservice and/or reductions in one- time costs for installation of telephoneservice for qualifying customers.The program is administered by the Department of Health and Welfare in accordance with Idaho Code,§56-901. 3.2.1.1 Eligibility -To be eligible for ITSAP,the participant must: (a)Apply through theDepartmentofHealth and Welfare, (b)Be head of household, (c)Have a total gross income at or below 133%of the Office of Managementand Budgets (OMB)Poverty guidelines. 3.2.2 ldaho USF Surcharges A surcharge is assessed on all access lines to contribute towards funding for an Idaho Universal Service Fund.The Surcharge Rate is established by the Commission and will be assessed to each business and residential line. Issued:May 15,2002 Effective:Month Day,2002 BasicPhone,Inc.Idaho Local Exchange Tariff No.1 1 RevisedSHEET 40 Cancels Original SHEET 40 4.0 RATES AND CHARGES Company will provide specific rate and charge information with final illustrativetariff filed after interconnection process has been completed. Issued:May 15,2002 Effective:Month Day,2002