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BEFORE THE PUBLIC SERVICE COMMISSION
OF THE STATE OF MARYLAND
APPLICATION OF
Quantum Telecommunications, Inc. to Amend Its
Existing Certificate of Public Convenience and
Necessity to Include Authority to Provide and Resell
Facility-Based Switched Access Service and to Provide
and
Resell
Facility-Based
Interexchange
Telecommunications Services in the State of Maryland.
File No. TE-______________
APPLICATION TO AMEND EXISTING CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY OF
QUANTUM TELECOMMUNICATIONS, INC.
I.
INTRODUCTION
Quantum Telecommunications, Inc. ("QTI"), by its undersigned counsel, hereby
requests that the Maryland Public Service Commission ("Commission" or “MD-PSC”) amend
QTI’s existing Certificate of Public Convenience and Necessity (“CPCN”) to include authority to
provide or resell facilities-based switched access and dedicated intrastate interexchange
telecommunications service to residential and business subscribers in the State of Maryland. The
Commission has previously found QTI to have the technical, managerial and financial
qualifications to provide facilities-based and resold local exchange service [See MD-PSC Case No.
8761 (July 7, 1999)].
The instant amendment to QTI’s application sets forth information called for in the
Commission’s Checklist for Reviewing Applications for Operating Authority and Tariffs, including
a description of the services QTI will provide and its technical, managerial, and financial fitness to
provide the proposed services. As described more fully below, QTI will initially focus its marketing
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efforts in those areas where its affiliate currently provides Internet access service. QTI expects to
provide services in nearby communities as market conditions and technical developments warrant.
In addition, QTI requests approval of initial service terms and conditions in accordance with its
proposed intrastate-interexchange and switched access tariffs, which are attached as Exhibits D and
E, respectively.
II.
INFORMATION PROVIDED PURSUANT TO COMAR SECTION 20.07.04.12
A.
Description of Applicant
The name and address of the applicant is:
Quantum Telecommunications, Inc.
2975-B Manchester Road
Manchester, Maryland 21102
Tel.
(410) 239-6920
Fax
(410) 239-0820
Email: [email protected]*
*/-- for MD-PSC delivery of Annual Reporting Form pursuant to COMAR 20.45.02.03D
QTI is a Maryland corporation, which was incorporated on October 20, 1998. QTI's
officers and directors are:
Name
William L. Brown
Kevin W. Brown
Johanna H. Brown
Title
President
Vice President
Secretary/Treasurer
QTI currently resells and may soon provide over a combination of unbundled network
elements and its own facilities, local exchange service throughout the Baltimore metropolitan area.
QTI’s affiliate, Quantum Internet Services, Inc., provides Internet access service to customers
throughout the Baltimore metropolitan area. William L. Brown and Kevin W. Brown own both
QTI and Quantum Internet Services, Inc.
B.
None.
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Other States Where QTI is Authorized to Provided Interexchange Service
C.
Investigations by State or Federal Regulatory Authorities or Any Bankruptcy
None.
D.
Description of Marketing Practices and Anti-Slamming Measures
QTI will use sound marketing and sales strategies to ensure customers receive the highest
quality service. The Company will follow all applicable Federal Communications Commission
and Commission regulations applicable to its services including those regarding customer
selection of service. QTI will not impose a penalty or charge for unauthorized IntraLATA toll
provider changes. In all cases QTI will employ methods to ensure its customers clearly and
affirmatively select its services.
E.
Articles of Incorporation
QTI is a Maryland corporation in good standing with the Maryland Secretary of State. A
copy of the Articles is attached hereto as Exhibit A.
F.
Description of Services to Be Provided
QTI plans to provide facilities-based and resold interexchange service. It will serve both
residential and business customers.
G.
Facts Showing That Proposed Service is in the Public Interest
Certification of QTI to provide interexchange services in Maryland will further the public
interest. In Order No. 66765 in Case No. 7719, issued on September 11, 1984, the Commission
opened the Maryland interexchange market to competition. Since that time, other applicants for
operating authority in Maryland have been authorized to provide interexchange service.
By Order No. 66319, issued on August 10, 1983, the Commission established a liberal entry
policy for reselling carriers to provide service in the Maryland interexchange market. Since that
time, applicants deemed qualified to provide such services and willing to abide by Commission
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regulations have been authorized to provide interexchange services and the resale of interexchange
services. See Order No. 7115 in Case No. 8584, issued on April 24, 1994.
Grant of this Application and subsequent approval of QTI's tariffs will serve the public
interest and offer several identifiable benefits to interexchange telephone customers in Maryland.
Most importantly, grant of the instant application will allow QTI to leverage its existing
facilities in Maryland to offer a greater range of services to existing customers while
simultaneously enhancing QTI’s competitive position relative to other carriers offering integrated
telecommunications solutions.
QTI will offer residential and business customers a direct competitive alternative to the
services offered by other certified interexchange carriers. QTI will competitively price both its
retail interexchange services, as evidenced in its Maryland Intrastate Interexchange
Telecommunications Services Tariff (MD-PSC No. 2), hereto attached as Exhibit D, as well as
its switched access service offerings, as evidenced in its Maryland Intrastate Switched Access
Telecommunications Services Tariff (MD-PSC No. 3), hereto attached as Exhibit E.
H.
Designated Contacts Regarding Application
All correspondence, notice, inquiries and other communications regarding this Application
should be addressed to:
Christopher W. Savage
Erik J. Cecil
Cole, Raywid & Braverman, L.L.P.
1919 Pennsylvania Ave., NW, Suite 200
Washington, DC 20006
Tel: (202) 659-9750
Fax: (202) 452-0067
[email protected]
[email protected]
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with copies to:
Kevin W. Brown
Vice President
Quantum Telecommunications, Inc.
2975-B Manchester Road
Manchester, Maryland 21102-1631
Tel: (410) 239-6920
Fax: (410) 239-0820
[email protected]
I.
Managerial Information
QTI is in the process of expanding its product offerings and will soon install its own
switching facilities in the Baltimore area, further enhancing its ability to compete. Additionally, as
demonstrated by the Commission’s previous authorization of QTI to provide facilities-based and
resold local services, QTI possesses the requisite managerial and technical experience to provide
high quality interexchange telephone services. A summary of the relevant experience of QTI’s
management team is included as Exhibit C.
J.
Technical Ability
QTI's technical ability to provide reliable telecommunications service is demonstrated by (a)
its successful provision of local telecommunications services to several hundred rural and
metropolitan customers, (b) its overall performance as an internet service provider (ISP) to over
7,500 end users and (c) its plans to install switching facilities.
K.
Financial Ability
QTI's financial ability to provide interexchange telephone services is derived from its own
financial resources as well as those of its sister corporation, QIS, and is demonstrated by a
combined financial report concerning both entities. QTI is a privately held corporation and,
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accordingly, files its financial information separately and subject to its request for confidential
treatment under seal as Confidential Exhibit B.
L.
Request for Waiver of COMAR Provisions
QTI requests waiver of the COMAR provisions referenced in Order No. 66765, MCI
Telecommunications, 75 MD PSC 331 (1984).
QTI agrees that it, like all LECs in the State of Maryland, should be subject to the operating
standards and reporting requirements contained in COMAR 20.45, except for those provisions for
which it has requested waiver or modification. Moreover, QTI acknowledges its duties under
federal law as a telecommunications carrier pursuant to 47 U.S.C. § 251(a).
QTI also understands that, according to the Commission’s rules, authorized interexchange
carriers will receive a revenue request and an assessment invoice from the MD-PSC.
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IV.
CONCLUSION
Quantum Telecommunications, Inc. respectfully requests that the Commission, at an
Administrative Meeting to: (1) amend its existing authority to include the provision of
interexchange telephone service in its requested service territory; (2) approve its initial
interexchange and access tariffs; (3) grant the requested COMAR waivers and modifications; and
(4) grant any other relief as the Commission finds just and proper.
Respectfully submitted,
QUANTUM TELECOMMUNICATIONS, INC.
By:
_________________________________
Erik J. Cecil
COLE, RAYWID & BRAVERMAN, L.L.P.
1919 Pennsylvania Avenue, N.W., Suite 200
Washington, D.C. 20006
Tel: 202-659-9750
Fax: (202) 452-0067
[email protected]
[email protected]
Counsel for Quantum Telecommunications, Inc.
September 28, 2001
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LIST OF EXHIBITS
Exhibit A .......................................................................................................... Articles of Incorporation
Exhibit B ........................................................................................ (Confidential) Financial Statements
Exhibit C ............................................................................. Summary of Experience of Key Personnel
Exhibit D................................................ Intrastate Interexchange Telecommunications Services Tariff
Exhibit E .......................................................... Switched Access Telecommunications Services Tariff
86935.1
Exhibit A
Articles of Incorporation of
Quantum Telecommunications, Inc.
86935.1
Exhibit B
(Confidential) Financial Statements
[FILED UNDER SEAL]
86935.1
Exhibit C
Summary of Experience of Key Personnel of
Quantum Telecommunications, Inc.
86935.1
BIOGRAPHY
William L. Brown
President--Quantum Internet Services, Inc.
and Quantum Telecommunications, Inc.
Summary:
A resident of Maryland most of his life, Mr. Brown is an entrepreneur who has founded seven
successful businesses over the past forty years. Most recently, Mr. Brown co-founded Quantum
Internet Services, Inc., a leading Internet service provider in Baltimore, Maryland. As president
of QSI, Mr. Brown has gained extensive practical and technical knowledge about the
telecommunications industry and communications technology.
Education:
A.A., Accounting
Strayer College, Washington, D.C.
A.A., Business Administration
Eastern College, Baltimore, Maryland
B.S., Business Administration
University of Baltimore, Baltimore, Maryland
Graduate Studies, Administration
Loyola College, Baltimore, Maryland
Employment History:
1995-98
Co-founded Quantum Internet Services, Inc., an Internet service provider that provides ISDN,
DS-0, DS-1, and DS-3 circuits to over 7,500 users in the Baltimore metropolitan area and
surrounding counties. QTI’s customers include banks, state agencies, schools, universities,
Internet service providers, and small to large businesses that require reliable, high speed Internet
access. QTI prides itself in providing its customers the highest level of service and support as
well as network uptime of 99.99 percent. As president of QTI Internet Services, Inc., Mr. Brown
is responsible for planning financial and corporate strategies.
1970-98
Since the early seventies, Mr. Brown has been actively involved in real estate development and
property management. Initially employed as a property manager for the Siegel Organization, Inc.
86935.1
of Owings Mills, Maryland, Mr. Brown rose through the ranks to become Executive Vice
President and General Manager where he had profit and loss responsibility for a portfolio valued
at eighty-five million dollars. It was during this period that Mr. Brown developed a keen interest
in computer systems and networks. He planned and supervised the conversion of his company’s
manual accounting system into a computerized system and he was directly responsible for his
company becoming the first property management firm in Baltimore to install an in-house
mainframe system for property and construction management. Over the ensuing years, Mr.
Brown was responsible for the planning, supervision, and installation of several networked
computer systems and ongoing system upgrades. Mr. Brown is familiar with most major
software programs, is able to construct computers from component parts, and he is experienced
in the installation and management of network operating systems.
1990-98
Mr. Brown co-founded Software Mania, Inc. (SMI), an independent software company that
specialized in the sale of “off-the-shelf” software programs for IBM compatible and MAC
computers. Located in Timonium, Maryland in the early ‘90s, the principals of SMI discovered
that volatile market conditions were causing a change in focus from selling primarily software to
selling computer systems and related accessories. Eventually, SMI’s focus evolved to the point
that it now concentrates primarily on wholesale sales to corporate clients and computer resellers.
1983-89
As co-owner and operator of Cascade Lake, Hampstead, Maryland, Mr. Brown restored and
revived an aging and deteriorating recreation facility in just two short years. Faced with a facility
that had literally fallen apart, Mr. Brown managed to restore not only the physical property, but
also the community’s confidence in a historic Carroll County landmark. During Mr. Brown’s
ownership of Cascade Lake, the business enjoyed an annual increase in sales and profits of
twenty-five percent for five consecutive years. During this period, Mr. Brown was responsible
for construction, restoration, maintenance, and water quality management.
1976-83
As co-owner and operator of a specialty auto parts business for six years, Mr. Brown gained
valuable marketing experience as a direct marketer and manufacturer of Chevrolet Corvette parts
and supplies. During this period, Mr. Brown’s B.J. Corvette Supplies, Inc. of Finksburg,
Maryland, operated a national mail order house specializing in hard to find parts for the Corvette
hobbyist and restorer. Mr. Brown was responsible for remanufacturing several rare and
discontinued parts critical to Corvette restoration.
1962-68
In the early ‘60s, Mr. Brown owned and operated several small businesses including a paint and
tile contracting business, a rare coin and stamp business, and, as co-owner, a home building
business.
86935.1
BIOGRAPHY
Kevin W. Brown
Vice President--QTI Internet Services, Inc.
and Quantum Telecommunications, Inc.
Summary:
Mr. Brown is an entrepreneur and life-long resident of Maryland. Mr. Brown is one of the
founders of QTI Internet Services, Inc., Baltimore’s largest local Internet provider with over
7,500 users. Through his role as Vice President and Director of Engineering, Mr. Brown has
gained extensive first-hand experience and knowledge about the telecommunications industry
and its associated technologies.
Employment History:
1995-present
In 1995, Mr. Brown co-founded QTI Internet Services, Inc. Originally intended to provide
Internet service to Carroll County, QTI expanded operations to include Baltimore City when Bell
Atlantic was unable to service QTI’s needs for additional line capacity. Since then, QTI has
grown rapidly and now services over 7,500 users in the Baltimore metropolitan area. QTI has
gained the reputation of being one of the area’s most reliable Internet providers, and services
other ISPs, banks, state agencies, universities and organizations that require high-availability
Internet access.
As a member of Lucent Technologies’ Postmaster Beta team, Mr. Brown has worked closely
with Lucent Technologies engineering staff and has actively participated in Lucent’s quality
assurance program. As a result of his experience with Lucent, Mr. Brown has gained valuable
knowledge and experience with the “low-level” operation of the telecommunications equipment
used to operate QTI’s network.
Since founding QTI Internet Services, Mr. Brown has gained first-hand experience in many
aspects of telecommunications, including wide-area networking, data and voice communications,
Internet infrastructure, computer and network security, cabling technology and communications
hardware engineering.
1989-1996
Mr. Brown owned and operated the QTI Bulletin Board system (BBS), an electronic forum for
the exchange of freeware/shareware software programs and electronic mail. The QTI BBS was
the first BBS in Maryland to provide the public with free Internet e-mail. The QTI BBS was also
one of the world’s first BBS’s to provide text-based interactive access to the Internet.
86935.1
1994-1995
During this period, Mr. Brown worked as a service technician for Basically Computers, Inc.,
Westminster, Maryland. Mr. Brown serviced local area networks, PC’s and workstations for a
variety of manufacturing companies.
1990-1994
Software Mania, Inc., of Timonium, Maryland employed Mr. Brown as its Service Manager. Mr.
Brown supervised the building, installation and repair of personal computers and local area
networks.
86935.1
BIOGRAPHY
Johanna H. Brown
Secretary/Treasurer--QTI Internet Services, Inc.
and Quantum Telecommunications, Inc.
Summary:
A resident of Maryland most of her life, Mrs. Brown is an entrepreneur who has, with her
husband, co-founded several successful businesses over the past twenty-five years. Mrs. Brown
co-founded and is President of Software Mania, Inc., once a retail software outlet in Timonium,
Maryland that now sells wholesale software and computer products to corporate accounts.
Primarily responsible for sales and day-to-day operations, Mrs. Brown has gained extensive sales
and practical technical knowledge about software and computers.
Education:
B.A., Childhood Education
Towson University, Towson, Maryland
Graduate Studies
Johns Hopkins University, Baltimore, Maryland
Employment History:
1995-98
Secretary/Treasurer and General Manager of QTI Internet Services, Inc., an Internet service
provider that provides ISDN, DS-0, DS-1, and DS-3 circuits to over 7,500 users in the Baltimore
metropolitan area and surrounding counties. QTI’s customers include banks, state agencies,
schools, universities, Internet service providers, and small to large businesses that require
reliable, high speed Internet access. QTI prides itself in providing its customers the highest level
of service and support as well as network uptime of 99.99 percent. As General Manager of QTI
Internet Services, Inc., Mrs. Brown is responsible for sales and day-to-day operations.
1990-98
Mrs. Brown co-founded Software Mania, Inc. (SMI), an independent software company that
specialized in the sale of “off-the-shelf” software programs for IBM compatible and MAC
computers. Located in Timonium, Maryland in the early ‘90s, the principals of SMI discovered
that volatile market conditions were causing a change in focus from selling primarily software to
selling computer systems and related accessories. Eventually, SMI’s focus evolved to the point
that it now concentrates primarily on wholesale sales to corporate clients and computer resellers.
As President, Mrs. Brown is responsible for sales and day-to-day operations.
86935.1
1983-89
As co-owner and operator of Cascade Lake, Hampstead, Maryland, Mrs. Brown restored and
revived an aging and deteriorating recreation facility in just two short years. Faced with a facility
that had literally fallen apart, Mrs. Brown managed to restore not only the physical property, but
also the community’s confidence in a historic Carroll County landmark. During Mrs. Brown’s
ownership of Cascade Lake, the business enjoyed an annual increase in sales and profits of
twenty five percent for five consecutive years. During this period, Mrs. Brown was responsible
for the supervision of fifteen full-time employees as well as purchasing, accounting and
administrative functions.
1976-83
As co-owner and operator of a specialty auto parts business for six years, Mrs. Brown gained
valuable marketing experience as a direct marketer and manufacturer of Chevrolet Corvette parts
and supplies. During this period, Mrs. Brown’s B.J. Corvette Supplies, Inc., Finksburg,
Maryland, operated a national mail order house specializing in hard to find parts for the Corvette
hobbyist and restorer. Mrs. Brown was responsible for advertising, accounting, and shipping.
1970-76
Mrs. Brown taught elementary education for the Baltimore County Public School System. She
was qualified to teach grades 1-6 and had extensive experience with open-space classrooms and
team teaching.
86935.1
Exhibit D
MARYLAND INTRASTATE INTEREXCHANGE
TELECOMMUNICATIONS SERVICES TARIFF
86935.1
Exhibit E
MARYLAND SWITCHED ACCESS
TELECOMMUNICATIONS SERVICES TARIFF
86935.1