11% tlic %luttti~ nT I W THE MATTER OF THE

- - - -" ----- - APPLICATION OF VARTEC TELECOM, -- -- _- INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL - -- . - -_ EXCHANGE SERVICES IN SOUTH

. - . -- - - - DAKOTA - - -

PrabBic Utilities Comamissi~n of the State 0% South 'PIPska>t:a

Debra Elofson Executive Director South Dakota Public Utilities C~ir~trirsssr~~t 500 E. Capitol Ave. Pierre, South Dakota 575631 -5tfTl)

Tel e c o r n r ~ ~ u ~ ~ i c : t t ~ ~ s ~ $ ~ f ~ j j ~ ~ ~

Dear Ms. Elofson:

. .. Transnlitted heyxv i th on bsf.rat f $?f vIb"f'gg ' '~g,$g&;yj~~, $$?;; + LTtT ig$.~:-:,": !3 p!b, ;~~; i l j~ig~j$&~:~dp;$. <.: - . <+-; $. f fc:t;;:<j:ii,?

oft\le ~ ,o ,n lpany '~ App]iCat*on for alj&io&y gc> v*?yi&<; gg2$r;$x:$i$jip;g ~~$gg;2&,$:b;:Ei~($+f~:;,;;!2, 7&,r;,:z7>$%fi;+&i$$t;.:,ij,;;i%F$!;: :c$;yvi: :@:;-,$ F -..

within the State of South Dakasti:a.

Enclosed with this respectfl~lly requests be

for your tilxe and consider

Enclosures

In the Ptlartcr of ff.,;;. +pi'li!icli;r,~-+ + r

VarTe6: Trlrechnsn, Fac,

For A Cefti.Ge;r& i:nf j4lhi;t: e '?3~%% :;.-:;:T~,-,- r

and Necefi-sily r:% 'E;"n%t-idc $a t : : ~ s - ~ t ~ ~ + , ~ $ r

and Resold V. crcsT E: yr:l?;~etgc

TC~G~C~~~%~PE~C,I;ZIL~~E~ L-i-rrr; : ;,

in the S i f \ t~ r r [ ;l;,"t.&t ? & S C G ~ Y L ~

r-"tppIicant's website, www.vartec.net, contains a feature ~itlccf "Contact L's." .this scc-;t!na a-r;,used

in placc of a dircct ernail address foi VarTec and 1s viewed periodicailyl~y V;~rT'i.c"s C't:sfclmc,.rCirrc

13epartn1cnt. Any questio~ls or conkilents will be respondccl to tvitPzin 2-11 howl;.

VarTec is a corporation duly organized and existirlg u11dcr the Iaws afitf~c Slate c~t""lic:c:tq, V;K T V s x

n . ; ~ iincolporated on February 27,1989. A copy of Applicani's Articles of It~r:acr;ysr;ltiora and Ckrtt $SCrfk

r d Altthority to conduct business in the State of South Dakota is attactled fierctr? as ExErlbiu

Cnr~~n~uniCroup, Inc., a Mississippi Corporation, wholly owned by Ts.ftptror.~ul- E~G'C~CL~~I~CS

C'airpnrat-ion, is the rnajori ty shareholder o fVarTec. A list of the names and btjsincs ~dclfcsse."; of'eitc h

r;h;brcholclcl- holding twen~y percent or more o fVuTec3 stncl; is attnd~ctl t~ercro as "rSxfrii4t 13. At! r?f$~cr

stoclc~~oiders hold ~ n l y a small, or even a ii-actional percentage oi-.4l>piicanr.'s st w.k. hpp tiearrt ctina~tiy

~it~cf~ ~lai have facilities or employees in the State of South Dakota. A list rlfs~rhsidia1.3~s ;tz~~t ~11ti;'l"rIkra~ nI

VifX'rcc is attached hereto as Exhibit C. VarTec Telecom MoldingCarnp;lny (ilsfcrl in !txha5*i"eE't 1% tire

~nt?jcsi*ity shareholder of each of the subsidiaries.

2. Appilicasat's Registered Agent is as follavvs:

CT Corporation S ystenl 405 Second Avenue South Suite 454 Minneapolis, MN 5540 1 Phone: 612-333-43 15 Fax: 61 2-333-2524

3, AppBim"nt7s Federal Tax ldentificntioit Number is 3% ff1irlitt.r.u~:

Applicant's Federal Tax Identification Nuinbcr is 75-228rr2IH1,

operations of VarTec silould be directed to the fotlowidtg contnrrl::

Kevin Allen Manager. Regulatory Affairs VarTec Teleconi. Inc. 1600 Viceroy Drive Dallas, Texas 75235 Telephone: (2 14) 424- 1 5 13

(800) 533-8832, extension 15 I3 Facsimile: (214) 424-1 52 0 Ernail: kcalleni;;r..i\.artec.r~cf

5. Applicant's Officers and Directors

A tist of Vat-Tee's officers and directors i s attached Ir~wcto L ~ S Ealllihit if

6. Applicaaatss Financial Qualifications

L'arTec is fifincmcially qualified to prollde local eschangt2scn-ires i tr lii'ie:Stb~*tt" tzi'Suui8-a i,%rA%\i;i zr~

support of this application, attached hereto as Exhibit E arc capics r t f V;tir T'cc'i; t i i t ~~ r t f i t r c ! fi0s:;r,r3

statcmenrs for fiscal years ending December 3 1 . 1098, Ilcccrnbct- 2 l . 1'3 1'1 ;trrcX f k r * ~ r ~ , a ~ ~ 2 " $1 .21U $ 4 ) f i7

accorciaice with 20: 10:01:30 of Adn~inistrative rules of South Daki%:t &is ex trikin ia o@5:::r.t.9 ;iaskrrtca11:4;*~?f~~

/ipplicaritYs financial ability to operate as a local teltxommur1rcatier'i~s~cr:.2-vircfm~~:~i.~~1 iru fhri 3 l ; t k ~ 'i>t $r+bi~!?i

Dakota. This infornlation is confidential and corn~nercially scttsitivc, :ic.vurrttriply Apglic,urt R,il fw* j i t i l~ '4

lZ?c infbri~:atioi~ in a sealed envelope marked "CONFZDEN'rIAf .'-. :tpptrc;~t.~t rs:;i,~s.c43'r t i \? htft ik*kiJ% lkictf E ~ C

infc7ri1lation not be divulged to the public.

7, Applicaaat's Maunagerial amd Technical Quatifisi3tians

Var'Tec possesses tl~c teclinicai and rnanagcriirf ~ x p t - r t i s ~ L i i ~ c i t r , r e , i $ c , - riat l t ~ . ~ : ~ * : + ~ . ; l r k

' I

prov~ctt: the services i t proposes i)cscnptrons af thc backgnrnnri aifLkr: I t'c's rlunrh4t~:cDiv:lkT. :t.tlSl i i

~minjalg in courses provlcled by eqrirpment manufacturers and leading i~~riustysci~ords. AII trrctiaac.cai

perwtmel are Wh~zcd and cross-trained on all network systems, subsystents atrd tt ig errtji;rtgxtl-as1 trktfij*crZ&

t. t13c Applicant. Network reliabilityis ofthe utnlost importance to the Appficrrtltt: i~crtx-evcr, A;r~pIi~:~fti': $5 $la

also rcly on the technical qualificatio~~s of its underlying cmisrs to 1.rrnvic-ie 1ocarl it;hcka~:gc SCF:-~~;G to

roaisurness in South Dakota.

8. Applicant's Existing Authority

Attached hereto as Exhibit G is a list of VarTcc's wxistitlg aittlitxity in :t:tcbdjtrna: ai? d.?;:zs;

authuri ty was granted in each jurisdiction. VarTec currently operates as a pm~ritcr u f i ~ ~ i e ~ c r z c ~ r a ~ ~ p ~

serifices in all listed jurisdictions. VxTm exercised ifs local service opentingauti1~rity8;c~iBxZJr rise Srait.4: of

Texas in March 2000, and within the State of Kansas In September Z(fOii. by pruv-.ittfrxg basic !katv,nt

cxchmge and call management services- VarTec is now in tht' prt>cr:l;s of 1pEnrtnirtg its iairrictil'8i fl"ril)8i~l'!i.>~ii!

sewlct?stfferings in other states. VarTec currently has applications far f ~ ' t r ~ t l rxella~~gc ;~~tt 'f~t~ifr;ty~~~r~t~iilg t l i ~

:4laba1ta, Arizona, California, Connecticut, DeJawarc, District lvrf (:"oiut.t~hr;t, Cdi,;t.nry~;r, i j d i ~ i ~ t t , fm.ii;ttt;k6

I-ouisiarla Maine. Marqlland, Minnesota Mississippi, Nebraska, Nt .~a~l i i , E1tcr.t~tsyir.;ani,i, Hlii*rdc Zllhiixnif.

Sauth Carolina. Tennessee, Utah, Ve~mont,, Virginia ,\Vest Vir~i r i iu , Wiscc9ststrr ;rnd ;rt ' i;l 'yi%~~~tt$;

Adbibonally, 'LkrTec: recently requested to expand its local scmicc opcr:~.ixrtari: ;rrrll'iartt> t h~gr;$r2 Y *EZ 1 Z:L

is mn gr>c~cI standing in all states where ~t is authorized toconducr busincs>. ?"rpl l t i~ut~i w,ah g,n~nicd :: ( .~:rXrZii;r\ii.

at'rbuthority to Conduct Business as a Tclecornmunicntions C'ctrnpanly Ly tfiv; ( ' ~ l ~ ~ l t f ~ i . - q > l i i i i , ~ l p ~ ~ ~ - t l i i ' . j i F j r B*:

provide iorsg distance services (e.g.. 1 t-, lsavcl cards, tot l ficc sc~icca) , in f3t1tktri Srr t f 4J.i- '; i 9 $10 j i i r~ l i~ , i r%L

27, 1995.

Irri tially, Applicant was denled a Service Proxidm Certificate of i2pcrutia1~ rttrttr~rntc - h.t - tllc j%"cdi\i5-

t ia l~ty tornmiss~on ofTexas (Docket No. 19745) art November 3, 1996 tirig !r: i:~suEicrr!nt ii;ili\i~ii::lk cft';iij>

Itlit-ttm<+ril~i drlr t n thr rnrnn1:rini Iiictnrv nf a rwrw (fiss.oIv~rl :tffiT;:~tc*cE rqcrnlxu:ialii. F +% Rr*t%td.;irr-

~~c~nu~tut~;carions, Inc.). However, Applican~ was granted a Service Trovid~esC'crti ficatc (3EUpc~nti~ig

hufElczl.1; ty by the Public Utility Conmission of Texas on June 22,1999 (Docket No. 2t26Si3i). in at_iJrrirrrz,

tPxc Prh t ic iiti i ity Commission of Texas has since granted VarTec the autt~ari ty to provicte faci 1 itizs-h3st.d

focal ~xclzakr~e telecommunications services in the State of Texas ail1 Jartuai-y 5.20111..

B1%. PROPOSED SERVHCES

I . Progcrssed Network and Services

Applicant respectfully requests authority to PI-ovide faci!itiss-hnsed local esc?lat.~gc

rcIc.ccrrnmtmicatior~s sei-vices in rlne State of South Dakota in areas wherein Qtvcst C . ' : ' ~ ~ ~ ~ I T ~ L I T I ~ C : I I ~ ~ ~ ~ I S is~f~r

incrm)bcr~t local excliange carrier. Applicant expects to expand I ts local exchange senriceotl5~-trtp t~>$tke

Statc r)f South Dakota hy the first quarter of2002. Applicant intends to provide Fncilities-bnseci s~nicca

tl~iiizirtg the ur?bunciled nehvork elentents platfonn ('TWE-P") of the inc:imhent Itxa]. e:;cirmge CTYI~CI-S imf

assuch, does not inrefid to construct alynew facilities at t h ~ s time. Although, irrritially. %tr'T-cc rt~iiy$~i~t\:itlc

Lkcilities-based local services only, Applicant req~lests authority to provide thc full ramp oflmai c.tctaa~ni;:

services to pern~it flexibility in its service offerings. VarTec's ttelccomxnttnicati~111~ wrtricus wif f kri::waiXixErTc

rrrl a full-time basis, 24 hours a day, seven days aweek. Var?"ecTs local exclrmig~ scnficcs i l l ~ y irxcJ~i11c,

ktrr u'ill ~asrt be limited to, the following: (1) basic residential and business Incril t:xt;h:mge scn-i~es {f:~ctraflgc

access service, flat rate service, sperator access, etc.); (2) residenriai and busincss cusrtxnrcr;stui ujas;~)

Pt7;ztu~~s (call waiting, caller D, call forwarding, etc.); (3) resider~tial and busixtcss ;\ncilln~~scn.iccsf~~l I ,

rjircctcr~y assistance, ctc.); (4) private line services; and (5) data t r a n n ~ i i s s i ~ services. In ; r&tir i t~t~.

Xppttc;lrlt will continue ia offer interexchange telccomr11~micatior7s SC:IT~CCS [(I t > ~ i ~ l t ~ e ' ~ ~ ; ; i i l i f re~isIcriiti;;t3

customers in the Stale of South Dakota. Applicant proposes to offer-'*btrndlcd" tcit.ct~~r~iar.vr;rtnia:atic~i'~scru tcc

y?nc%ages ~vhich include local exchange senlice. longdista~~ce 311~1 call ~ ' ~ ~ ; i l l a g ~ n ~ t . ~ i f sen'ier;s fc.g-, c,:il

15,ai tbllg, sallcr iiicnti fication). By cornbilling locai cxcha~~gcservicc with other tl;llIec:r.t~mrrttu~icrrtitit.it;;~~~l rklxr-

~e~~mrn~~;t tm~cahons services, Applicant intends to offer niore bencfic~d and cornpctiti~c sct~ir..es 10 rt~crcx$sc

eon~petition within the state. Vaflec intends to bill its customers utl1izi;ig mnnthlybiIiings~atcnrrmx i;r?fai~:b

will bc sent to custo~iiers via U.S. Mail.

Due to the features and nature of LINE-P arrangements, Applicant dots rrilt init i-nf I) r n;cnef ti2 a ~ t r

. . i- any fi~cilities, end-office scvitcl~es, telecommunications circuit equipn-lcxit. tel'ecu~rrrnurr~c:ti~otissigxrai-:rig

systems, or telm~nmu~ications W e s s i o n facilities to provide Local cschx~gt. tulcyhot~ir. scwicc, .+; strcfr,

a11 enlcrgcncy services, operator services, directoryassistancc a~d tclcccrrnrr-~,i~1ic;1tii~i1~~~i:~yse~~i~c~ kt $8

be provided by the Applicait's underlying carrier. VarTec does intend to p ~ l l ~ i d e it~tcreuchaxge scr~icc-s

to its customers in accordance with its existing certificatioil gantrri by itiris Crtntnrtssitsi,

2. Service Assistance Operations

As with VarTec's long distance operations, VarTec is debicatccf to ~arnviif~n~c.rtios~,,ksttt~ri~i :,c..u.ciCt:

In order to ensure customer satisfaction. VarTec's Customer C'irre Def1;trmlcrrt is t.csi*arx:;lirlc f kv &%ti

X~CCLS ofprodrcact delivery, order entry, account adjusbnent.,, ~ l c w scrvicc c~f'kli~rp, ;ippEi~i;;rirser af":u;efl;'ic~s

aid cxpl~maiion of use for such services. fn order to ensure that the highest T::trcl:;af cusic~rrr r r~t i i tF; t~i~~rt

are achieved, VarTec's Customer Care Associates are highly trair.rcr1 atrd' ctfucaicd OF\ ;2ft tspocis r'rf

custu~ncr service. Tnis includes, but is riot liniited to, mining011 bisir: tel~r,.unttrrrtunr~:itttt rm ik~pti:~, p r ~ . ~ f t s i ~

and servrces, billling and tracking systems, and ovcrali customer care. In ncici-itiori., *t',l-'i t.r='% t 'rr:;roc~tcr

C'ase Departmen~i has qualified nianagers and supelvisors availttbie to assis; thfrrr star! 'it'ittr t:crfi l~~\&'% 4rt

cscaliittt@drnatters as well as guide and insh-uct the Customer Care Axa>ciar~:t; w i ~ h eh:rrrcx,utnrcltll tiiltbb ;Y.

needed. Custor~icrs with service, billing and repair ~questior~s c)i-cornpl~zrnis rn;t:+- r-c;!c'n l';~r'l cc a: 3 ts@t4.

frrx customer sen-ice nurnber, (800) 708-7305, for X S ~ S ~ X I C C . h d ~ l i f i i ~ i ~ ~ l l ~ ~ . k'di;l*~r: t \ r i ~ C; tiif It \t*i t'fiit2

Replatory 13repsu-til~ent that is available to asstst Con.irnissicrn st:tf'fi~~tli ;unyn~attcrs~ixit~:~?t~i~~, L';tr I~,+c'I.

,- i* .p.

b r f s f ' 4

~3~ . ."f &" - - I*i iL i- 4-

e *? .- ;* a".%. , - +

8 ' -.a

a - 4 - M

c i %-

GL . -J

3 'P- C $4 - 3

8 - g E e d 4 =?. 3 13 '..* 0 C 0

8 - ", g 3 .g 5; 2 5 0 -23 on C . - -a 3 3n k2 23 .6 a e3

E' 3

In addition, VarTec has been providing long distancc senices since 1 cJ89, and ass~stt. :Iixpik~:ar,t

has received consumer complaints fro~n regulatory agencies. Tlisse cnra~plaints v a F i r t ~i.-.-npcmd Widii>

- times, are notj~istified. Applicant is always pleased to assist custorncrs 1~a.it11 ~ I I ~ $ F S C F ~ icu:s+ t h ~ < ' i l % r i p i ~ ~ t ~

aims to provide prompt and equitable responses to each cnnlplaint brraugh t to the hpy1icd:at "s;itterhian.

Applicant has never been served with a forma1 Federal Con~ni~u~ications Cnmntissi17n ~x:~.i~.~'1:xlrtt ~i;&ic~y

unauthorized conversion complaints. Applicant's ability to p r ~ ~ i d e t~ lc~ot~~nt ' t t l l i i~~t tbo t~~~~wic+ '~~ !~t:i,s txr t:

hcen rcvokeb, suspended or otherwise impacted as a result nf regtll;lttu~y a~ l t i o ;~~ t~tken r\g;\if?SI L ~ Z C

Company in response to consumer complaints or for any other rzlrtsoil.

VarTec's prin~ary means ofsoliciting long distance crlsfornm% titmu~l~~~krt tlvc k;alitcx%St;ltes is%ti&~:r

n1:iif marketing. VarTec primarily promotes tlre use of irscnn-icr acc~st;ctteSsI"'tl'flC~~"l, f .fjll't=3 I 's , at;

cor~sumcrs, rather than soliciting them to change their prirnLary 1 o n g d i s t ; m c ~ a ~ ~ r ~ Thrs tale.ttwsd u!^;st;cc~s.

allows custonlers to use VarTec's service on a per call basis and mixtimiscs ;lossitat ka3y t ~ f . l - , t r l'ix

changing a customer's long distance service without prapcr atithorir,rrtisuii. I r is ~iltt4~srr~+k"~it tkr t ~ ~ f t c t l ~ ~ f t

consumers sometimes allege that VarTec has switcl~cd their Itaag dlr;l;tnuc S C ~ V ~ ~ C I G el:th:kli1i ;lti~Q1~a!-i~*;ttt14t'f

b ~ a u s e the Company's charges appear on their biHs, ht t-irt~ialJyaJI t:,ftirf;:sc~i turuti.;at?s, Yarf'cc4:, :.;~;:rwisrc

tvas accessed by dialing its CAC, and no change in carrier cverocc-rirreif. iis tict ti, V,rr fc:= ia.tjtr:rlcr:ct:u;

\!cry few custornercornplai~~ts related to actual trnauthorized conversions. Rcsirxttirsg 1t.1 ii:igusb 2Iiiif. ti?<-

Federal Co~n~nunicatiot~s Comnnlission ("FCC") requires tclcci~rnrnu~.ric;~tic~nr sew ~ T C proi it!r~\rs tit R.p ~ - g t

the nurnbcr ofslamming complaints received. Please find attached as Exttibit 1 n capyesf :I?~~~~~I''~III! "LE. (~1.

FCC F o m 478 - Telecommunications SIarnrningCon~-plau~t Rcpcrtirrg T'am fhat* Y;.I<P;I?J~~c~TL! t t x biic

I2tX.

"t F * Regulatory Compliance

'l.;iiTci: 1vi11 colnply with all state and federal rules and regulations regat-ding markctingprsiclrcus,

:r~clir;'iing x r i licntinn requii-cments for canier changes. VarTec will comply with all xpplicdzblc Cat~irrrission

t ~ l ! ~ + , regul~tions, and standards regal-ding its proposed services.

' , PI!BH,lC INTEREST glQBNSIDEMTI(0WS

Thegrant oftliis Application will promote the public interest by increasing corrrpetitirw in ilic

pxsvisrr?rn of t~i~co~~-t~l"~i~t~icatjons services in South Dakota. Competition promotes not an!.; lower ~ E - ~ C C S

'twh afm c:fi'teierlcy in the delivery ofservices and in the develop~nent ofnew services. TF1esehenefi:st~tczrk

t i ? ~r~raxa~zi i~ t : tile public interesl by providing corltiriuing incentives for carriers to rcducc casts, t ~ h i Ic

srnrulra~?co\nsly promoting the availability of potentially desirable services,

'I"i~e entry of VafTec into the South Dakota telecomi-~~unicatior~s market tvi H pmvicic c~istnrncm ni tk

:tbxrcicr nrr;ry c~fchoices fbr se~vice providers and services. Furthermore. c~tstorncrs tvii1 rcnp the berrclits

~ 3 1 ' ' c~~~ipe ' t i t~on through lower prices, increased quality of service and advanceti tccll~totc~gy ;iiild

ri:tcsurzjirnri~~icatior.is services.

f;it~i;tly, gant ofthis Application will advance tlie goals of the Fcrierrd Tciecarr~n~unic~tiu~i~ :'rck rlf

:al;tt,% t\~hlch was adopted to promote con~petition and reducc regulr~tio~i in circler tc:, sccurc: \~t\-~oi-i~rii:cs

,titti tugIlcr quality ttcleco~nn~unicatio~~s serviccs for cons~ui-terj. 111 light of the heriefits that VitrTcc at it1 tlrit~g

ai.9 Srkuttl I)rrkota consumers: VarTec respectfully requests that the Cummissinn grant i t ;I ccnificafc rtf

:-.illti::: ~~ortvenlcncc and necessity witliout unduc delay.

WI-TEREFOKE, VarTec Telecom Inc., respectfblly requests that the South Dakota fr~ifiillibf i ~eii ta~:;

r i inlmissio~~ g a t t it full authonty to provide facilities-based and resold local t:xchanp teleconmrunitx!;lti~1~*4

si;:tricrsl"s, as hereirt reqt~ested, throughout the State of South Dakota.

Director of ~ e ~ d b & t h y A F E X ~ / LC_'

VxTec Telecom, 1i.r~

EXHIBIT A

VMTEC TELECOM, INC. Articles of H~corp~ra%ian

and Secretary of State

Certificate of Authority

XT 23 EWAWBY ha: the attached &/are tsue ard corn& cazpis af ;fbe Wiorsiw de~cribed do&(s) on me in this office:

VVkRTEC T'EUKOM, IN&:. NO. 11 054237-00.

+ +'Ti E A a r;sr;'ara%l.an Fs argarrized is3 'cha

m,-+,** -- - ,,, , % a L,: r~w,Xnl bu,t%znese l a x w l ~ i r k ! caqozzekc3ons ..

,,?:2'?: :.kr% TEXEG 91*~~732bm~n C O ~ I O X T = B Z ilaa XGZ - W*%@JCSX ,TWP

;i~s"!bbas ~f sjlnmea w&i.l=!i xha C Z X ~ G X ~ Z ~ . U W zkla?l%

b ? ;I ?;;a,,.: t.6 I.a&ifad i r ~ tba fa l t lcvhg 6 3 a ~ l ~ b s

' a J:' - y e " t 4 ~ ' *'" * - L A C , on t h i s d a y PcrsonaJLy app@&:-d .-3. , !CROWII f 3 mu c i l ba ram pwraon . r h o ~ * name

i -- ,.: p ~ Y P ;-.L.!?g Gouumftnr. end, baing by aa .fL-s2 -: a t Zhd : RT3iilmBnC9 T ~ @ E L \ & I ~ conrakned n r a

' * m r ' fl-m c "s Fr ' i 1 L ~ E D 4GENT OR BOTH

'ty ' y w * + is8< ; ;ZEjPEST i C: CURPORAT I ON

and n.~,mfnaor, 3 f l"i resent reaist~r-eti s f f i c ~ r.V?*? cp ,6 . .ngs ;,, :-; ,,,,, te..ary ~f S t a c e i i 8Q k:!:ri iskx:rina 2

~ : - ~ . ~ ~ ~ ' u ' , , * ! ~ m " ~ . u _ . r . - , > -

.,,..*.;,;:;i . , i " -.,..i..i <-, . , * ,, .;,:.,,:: ., -< t . , , .,..-->-,*., -..-,-.*, , :.:&<?;%Q .k,: :? * " y p ~ ..- . - d ~ - - . i - i r ~ * : . . * W , , . ~ * L & & ~ , , , ~ ,,-,-.*-

"2FF3f35,TXCH St5'ZmJ?. 350 fr. s t . ?auL St ree t , "i " r r t * . " o l r - - . w - , L ~ + - ~ - $7

" c p and t h e a d d r ~ s s a f t h e business ~ f f : ~ i ? .. *. .. " ' YI., ,.., , l s . .,.,., ;...,, d j i i b e identical,

i;.!?: r t . r"?es,k $ 3 ~ j

a *. - :+ e i :,i a P Q ~ . :,. Ba frereby cert.1 i y the "r'i luainq

zj; v+8$sc5 t + , ~ y y @ 7 s yfi 1 t,;i rrv the czrQymr~t i on w i l l csnrjurt dnrl

=. -. ,, &L, "It I.:, . : L,:,, ,;,i,.,:% 3.f D,$ i 1 695 I :DI . I~~~;v ,

-.

5; i 't nnE$c+ 3:2 C ~ J I - ~ C J ~ ~ ' C . ~ U ~ ~ ~ ~ i ? d t f c ? i n4 01"

."1W'T'!9R4PFg I f f C , jn t l "cte ofurter number or , a. j! * ,* 2 ~7 f.* -F

,a ;, . , : t . ..*ildX ,

;I.- i.:?::iu::. , j u ~ i :st$jctjoo ijnder the I ~ H S of stlh id-$

$ 5 , (j~:ti ",f-re arjrfresz o f i ts reqistered i 5 G,,, l . f ~ r a o y . i t - i . nro ,5ys t e ~ c , ?hi0 N.

r.255 o f t h e orjncindi o f f i c e i s iann

!q/%&&/flfl - yo;iu) -- w-

Qotdrmy Pub.! ic. State o f Tpxns

;:om.~:jsion x i iqCjq

,- > +, ,b# -., .,7 -: .*- <.. . ..'-.. ,,*,; ,Lrrl;;r:en is i - ~ g ~ i r - ~ d t5 md j n td i :? B ~ g i ~ i e j - ~ ~ ? 3C;E:ce 411

: r t : ~ :,P:% 3 r : ~ ~ ~ ~ ~ ~f the reqi~t2~ed a f f j c e i s lsrt N , T t , n,, , l l ih Jl;i,s, . r C

9':t;~ Cke n4ifne"_ ~i i t r ~ x j i z : e r ~ _ x f ) daent d41 t h i s dnbrefs ! s :.. 1 .

?. , irtd2 , - + %e dad'fr"e55 sf the ~ r j n ~ j ~ d ' ! 3 f f ICE 1:s :,"can M. Pie4r;ar.t

* -, ,- - *z,.%-,pA.q + - s - i . * wrti-:,- dk"z3~ieeuea before ~ n p an

, I , , ? i%i - F . t % ' . ' 1 " 3 1 u r - ~ l,@f- gf ' b ~ ~ ~ " E ~ ! ~ ~ ? ~ r f l ' d A t . , !??cgv d 1

I .- ., ..,?U*

+ ,"lp;c ..":;A ' .':.:LpilLii

kt..; 1-;;a'33i-6: ; $0 .

:~"arYcc f faCicns l , Ins.

- +-p %#,--a 6 5 ' . , .ti& . , , , . , sr.srz,, ourscnnding "2;' 3°C:"'"" -- c - b h

2-f- 53 ;.:; ~ ~ I ~ E - ~ ~ ; $ ~ I ~ ~ J ~ ::,.ix.f+- :; ~ C J L I E G ,:::A= inoun csr:se::: i ; w C X Z ~

3- C I

l.i , *" +, . L 15 &dZpc ;ng .~~encrnt?ZE 2°C iC"! " ' ~ ~ ~ ~ ~ - q . 4 p . , >.,!,$t?? : . a :\i*z;::As: .,,,*- *%E*? ". - .-.* ?-+" L - . r . _ - . - , , , - - : 9 . 1 0 tss ;'-J~Z-

5E TT RESOLVED, ehac 3as'~ec; Teleco;a, f nc, her%/ay jJkiixz-,gca k t ~ i B W T E C J Z E E nk;sb?Ser sf a u ~ b c r 2 r e d ehi&res z S:F& chol;sand Il, SOol i 3 :en d L i i u n ! I O + I I I C t F ~ Q l :'hr ; ~ a ai1Pion I l e , QOQ, QaQ) sharca 8kaL2 5e k a a w ~ a 8 w CZs&zh " A * Comcn ~hrnsrs whish s h a l l have rm- gar v a l u e arsd gnz~jr: @had l have fz lL z i g i z ~ s a8 prlav2ded by t h e Texas B.;&~;~&BE# i"xl~",ao~-aeian ACE. Each prcvioualy au~hc:-i:p~& nhase s$s;.I be exchanged and split F s ~ c c r tc:~ r-,h~u$~~rmb t ? l O , ZOO2 a&l%ra~,

923 IT ZRTXER ZRESQLV3, tbae GrrcicLa 3fh $ 2 ~ C s ~ o r a t i cn ' s ie-~ziclas of T,,s~3rgor2~iar~ {gar ad ?a31":~&:3* 2 4 , ;2~!9 (as amezded) s h a i l 5e f t ~ z ~ % e z azsen~dcd ,r~?:$ha-, r k i a aE~eraeJon, .

"WJi, ~ ~ a e azgregaze nu-r a," shares ukxdei: t2e" C ~ ~ : > Z ~ K A G ~ A ah-aa%1 have a~ichar i ry t o i ~ s a ~ c l a ccn z 2 i . > i w 3 z 113, O S Q , Qa3191 , Tha Cen m i l l i l o z t10, EtT;Q, t IOQi sir+%zaa air&::

bc*- ' - ' ,~&~ed ae Cl.;asa * A ~ ~ s r n a ; ~ ska2eg w::i~k ~ i ; a - i ~ i P :&VQ nz g a r ~aiaaei~, and ;dfxich ahal* i have full ri~;a.;.,a ~ I E T grc$~~ddc;ci 5.y ::he Texas Bss i ncss Corpo;:a r: Lcn A c t a

$1 ~3 ,,, 27" E S ~ L V ~ , c h a t T,Q+~~@C ~alecza, :fie. h e x " ~ ~ 9 y c t&?~es i.zn ic,SFiagaca n~.slle?ez a2 ,meBarizcr$ a&bres fiia ts% 3;LP.ic.n ( Z O , Q Q O , j aharaa p a v i o u a i y auehorizsd E 3 5s isutsuad 3-33 !-z.aas~ "14" C m e PPSX-E!B v i t3 3a pa," 7 ~ a l : ~ ~ "PhC

c cr: a,iLSicrt i 2.0, CISO, GBQI s k a r ~ s asi",har!,z~d E s kXKXd 3~ Clseo t31m'fl a b ~ w t sack with a PIT VZ,~,U@ 32 cszx: i S 3 . a & ) and w h i c h ghall, hav@ c u i l rlgkr.3 233 p=v%e+b 3y zrz-s 7 ~ x 2 s duafrsase ~ 4 q x 2 9 ; 9 ~ 1 ~ n ACE. 4ha ;axxacnt i~a:~E"rror eS or;@ (?h j aSf m 3 1 ~ vaStdd 1t3~% m%Y' t:xc2B.;k-rc :ka . Z ; ~ Z T ~ zcr I I j share c2 ana asaf: i SO g : l > "I '" w

""4 VD,,UQ s tack , y>is C-FB ZQ.C ~ f f s ~ z 2t9~lend

. z .xq izsP of the C a ~ x a t l s n .

.- -r r? k a T l ~ ~ ~ FOUR '

,P i* '*C," - - ' '%T; Lz ?I,-- r; T3e , .,: , , I s n a r e , 3uts:andinq 3311 --.---.--- M W - 6

, ., irJ"'" - ' 3~ 517,1ii , i , . , m - , :; L ~ i i e C a (i::ani;noliS CJnSe!:i -.a

* - - -35 ,,%, , , . & - = % & : ,,. , =+ . ; 3 adizpc card .,nendmenr a n t a=? w::LZCez

,"i;p;G ... ,zb+-v, -.-_-- , , v e a>P --; Lyf ~ r = ; r : - 9 . 1 3 has kip-3 5L"'"-

a,,- Lkm + ,... ..*- Ah., <"2.a;,*.: -,,.

3*- , , . . " . , - "'".,""':, ..,,, - <&&.LL. :, ,<< *; ,;. &... &,..- 8.. ,:I;,, :.Y':::::.:z,, --:z ;-$ ;:$ ,,,*,*.,,<- "*",.. '*

,m*, .-. .."' * . .# a- ,, -. - ,Wi9,.. , '., ,,LI*.m,I &. .,: ,s:z )<' ::,,. . ,~,;;;';;;',!?;;i~~y? ., 1 111 i

:A. "I.

"- : ,zg I;;ljUlnr:; ( I F ..I lUZl lC5 'A

'>c L ~ r 8 ~ ~ ~ c ; [ : t j 1 ~r S Y ~ J C : ~ ~

. .

ClfEce o f the Corporakkxis Sectipn f3ecretary of State P.O. BOX 1 3 6 9 ~

'E nxc name of Lhe corporniion, liniiied liability commpany,'~inlited pa~-tne;;hip, or r6pi:dered lirnifed liability partnership as stated in its articles of incorponLion, artides oB orgnnizaeion, certificate of limited parhership, appiicaticln for certificate of

i nuthoritl or comparable document is v ~ w , Tder-m, Inc. F

9 a* Ihe assumkd name under which the business or professional service is or is to be

ctpndtsckd o r rendered is Telephone Express .-

7 .$# B n x c slate, country; or o l h k julisdiciian under t l~c laws of which it was incorpomted.

@rgnzlizbsr% or associated is Texas - . . , and the 3dtlras UP iLr registered or similar uEce in that jurisdiction is A t t e n t i o n : Lrqal Depariiment . . --

32OO West ~ l ~ a s & . t : Fiun Road, Lancaster , Texas 75146 . -I--- ...

v v. 1 period, not to exceed i 0 years, during which the assumed nnrne nil1 be used is _ Moverrtber 1 7 , 1997 t o November 17 , 2007 . -.-- -

entity is is ((cirde one): <h@ness ~ o r ~ o r a t i o n i .

%

Non-Profit Corporation Professional ~or&ratiozn Professional Associa tiara Lin?ited Liability Company Limited Partnership Registered Limited Liability ~&-tnership

X f entity is some other type of incorporated I~usiness, profession;sd nssodafion, please specify below:

. -

6. E ihe entity is required to nlaintain n regisbcred ofice in Te-us, the address of' Ulc

r ~ g f ~ t w c d of'6cz is 350 North S t - P a u l , Dallas, Texas 75201 ~ , . *-

-. and the name aF its r2gisrereci agea t a6 such address is C. T. rnmnr~ti n n , ~ v c + n m ---- T h e address of the principal office (if not the sane as the registered ctEce) is .-..--.-*--

i 2 D f j West ?leasant Xrzii R ~ a d i , Lancaster , Teyras 752.46 *,.--,----__l_ ------

7, K the entity is not required to or does not maintain a registered affise in Tcsas. EJIrf: oEce address in Texas is N. A-- - arid if eaati-fy is not incorporated, organized o r associated under the laws af Ift!x;ls, tfiiie address of its place o f business in Texm is N . A .

ahd ihe o E c e address &ewfiese is W - A , P

P a " " . . . . " . .

8 "Afie cixoxlty o r counties where bwinss or profdamil services are b&z3g or are .tn £ 1 ~

rrruadduded or rendend un& such assumed mame are (if applicqbJ~~ use the designation ",ALLn or '6ALL EXCEPT'):

* aL1 *-- - ----

represenbttue or ntiurmey-in-fact OF the cnfity As q+naax 5 Michael G. Zof Z~nan, s e t T - k n 2 ,

Sb1fie a& - ==s --

BE~&$ me, ihe undersigned authority, on this day personalIy appeared -I-IIP

Michael G. B o f ~ h a n , -"I--.- w *-,4*

kao7~nZrne l o be the person who signed the foregoing i n s t r u x n f and adcnowled-me &d1b ha exeekted the r m f ~ a ~ ~ ~ e for purposes theseid expressed,

='A

Civcn txnder my hand and seal 01 o E c e i?n t!zk i7ti, d z j . of %ovrtrn%t3 LL a 3 ~ - __....... *l__n ".I/"

XAS%L%EN RCCAEEYp Y A W V f & TELECDfiy IMc, 3280 %* l)bEASANT RCfht WOAD RAHCA STEi? s V X 75146

WE ABAMUOPIHEN'I' OF ASSLaHED NAPqE CERTfFf CATE FBR THE ASI3lfE GACTIU,hlED I N C O R P Q R A T E D BUSINESS OR PRUFESSION .HA5 BEEN FILED IN THIS twrrXm* THTS LETTER Y A Y B E USED AS E V I D E N C E OF FILING IN THIS O F F I C E *

V E R Y TRULY YOURS*

CBFFlCE OF THE SECRETARY O F STATE

CERTIFICATE OF AUTHBRIM

f , J O Y C E H A Z E L T I N E , S e c r e t a r y o f S t a t e o f t h e S t a t e a,? South D a k o t a , h e r e b y c e r t i f y t h a t t h e A p p l i c a t i o n f o r a C e r t i f i c a t e o f A u t h o r i t y o f VARTEC TELECOM, INC. ( T X ) t a t r a n s a c t b u s i n e s s i n t h i s s t a t e d u l y s i g n s d a n d v e r i f i e d p u r s u a n t t o t h e p r o v i s i o n s o f t h e S o u t h D a k o t a C w r p u r a t i a n Ac ts , h a v e b e e n r e c e i v e d i n t h i s o f f i c e and a r e f o u n d t o c o n f o r m t o l a w .

A C C O R D I N G L Y and by v i r t u e o f t h e a u t h o r i t y v e s t e d i n me by l a w , 1 h e r e b y issue t h i s C e r t i f i c a t e o f A u t h o r i t y a n d a t t a c h h e r e t o a d u p l i c a t e o f t h e a p p l i c a t i o n t a t r a n s a c t b u s i n e s s i n t h i s s t a t e u n d e r t h e name o f V A R T E C YELECDM, IWC.

IN T E S T I M O N Y WHEREOF, I h a v e h e r e u n t o s e t my hand a n d a f f i x e d t h e G r e a t S e a l o f t h e S t a t e o f Sauth D a k o t a , a t

EXHIBIT B

VARTEC TELEC0M7 INC. Shareholders Owning Twenty Percent or Greater Interest

f ' cawln~~tr l iCirc~~l~~, Inc. e< % %!dl %utl~ W (:st Street bwkctrn, h4ississippi 39205

EXHIBIT C

VARTEC TELECOM, %IN@. List of SubsidiarieS and Affiiliatd;:~

Q*

‘3iafl'ai: "Telecorn Holding Company U.S. Republic Communications, Inc.

'Vtir'4"c~ Business Trust 1 0XXX Ranch Corrlpan y

tiafl"cc Tdecorn of Virginia, Inc. VarTec Properties, Inc.

Vrkr-l'ce: Xr~turnctive, Enc.

Voice 3,111~.

Vait'ec CRh4. 111~.

We:b An~crica Networks, Inc.

%c3ctwork Constluction Management, Inc.

Chn~ t tw Co~r~mtmications, hc.*

Clluctnnr Con~municztions of Virginia, itleba

VTI I~~ternational B.V. (The Netherlands) VarTec de Mexico, S. de R.L. de C.V. (Mexico) VarTec Telekom (Cleutschland) GmbH (Gemany) VarTec Telecorn Europe Limited (England) VarTec Telecom (U.K.) Limited (England) VarTec Kontinental Telckon: G~nbfl (Germmy1

'T"~.ti:pRone Electronics Corporation CommuniGroup, Inc. I*falll;Iir~l; Prr.ttcl, S.A. de C.V. (Mexico) Lightyear Holdings, Inc.

>--=--

Ptracc thl'r~tz: i n ndcfition to thcsc subsidiaries and affiliates, Var'l'ec has affiliates tllrough its parent r:arrtpany, Telephone Electronics Corporation; however, VarTec is not familiar with the operations of these rrrritirg, c e

1jisstllvr.d ln Stntc of'lricorporat~on * lJenc$rnt; film1 regulatory consents, VarTec sold its shares to an uriaffiliatcd third party on 8/3 1/01.