DA 03-1747 Federal Communications Commission 
Before the 
Federal Communications Commission 
Washington, D.C. 20554 
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Comp. Pol. File No. 651 ) 
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In the Matter of 
NACS Communications, Inc. d/b/a Texcom 
USA Application for Authority for 
Emergency Discontinuance of Interexchange 
Telecommunications Services Pursuant to 
Section 63.63 ) 
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) 
ORDER 
Adopted: May 20, 2003 Released: May 20, 2003 
By the Chief, Competition Policy Division: 
I. INTRODUCTION AND BACKGROUND 
1. In this Order, we deny NACS Communications, Inc. d/b/a Texcom USA’s (Texcom) 
application for emergency discontinuance, filed May 5, 2003, pursuant to section 214(a) of the 
Communications Act of 1934, as amended (the Act),1 and section 63.63 of the Commission’s 
rules,2 seeking authorization for its May 1, 2003 discontinuance of resold interexchange 
telecommunications services.3 Texcom’s Emergency Application explains that for “many 
months” prior to May, it had experienced financial difficulties and, increasingly, could not obtain 
operating funds.4 As a result, Texcom indicates that it decided to discontinue service to its 
customers and liquidate under Chapter 7 of the U.S. Bankruptcy Code. The Emergency 
Application states that Texcom did not notify its customers of its intent to discontinue services,5 
1 47 U.S.C. § 214(a). 
2 47 C.F.R. § 63.63. 
3 Letter from Cristián Gálvez, NACS Communications, Inc. d/b/a Texcom USA, to Federal Communications 
Commission, dated May 1, 2003, received May 5, 2003 (Emergency Application). Texcom sold prepaid calling 
cards and provided equal access international long distance services. Emergency Application at 1-2. 
4 Texcom indicates that it was operating with funds contributed by its major shareholder, who recently informed 
Texcom that these payments would cease. After Texcom failed to obtain another source of funding, Texcom states 
that it decided to cease operations. Texcom states that its service providers, which enabled Texcom to serve its own 
customers, also began to discontinue service to Texcom, including Global Crossing on April 15, 2003. Emergency 
Application at 1-2. 
5 Emergency Application at 1-2. 
DA 03-1747 Federal Communications Commission 
nor did Texcom file an application for discontinuance authority under section 63.71 of the rules.6 
DISCUSSION II. 
2. Under section 214(a) of the Act, before a carrier may discontinue service, it must 
obtain a certificate from the Commission stating that the public convenience and necessity would 
not be adversely affected.7 This requirement applies to all carriers, including resale 
interexchange carriers, and applies under all circumstances, including bankruptcy.8 Under 
section 63.63 of the Commission’s rules, emergency authorization shall be deemed to have been 
granted unless the Commission notifies the applicant to the contrary within 15 days after the 
carrier has filed its application.9 In its application for emergency discontinuance, a carrier must 
describe, among other things, the nature of the conditions causing the discontinuance,10 facts 
showing that these conditions could not have been reasonably foreseen in sufficient time to 
prevent discontinuance,11 and steps the carrier took to restore service – or establish comparable 
service – as expeditiously as possible.12 3. We deny Texcom’s Emergency Application because Texcom has failed to satisfy the 
requirements of section 63.63. Texcom has not shown that any unforeseen conditions caused its 
discontinuance, nor has it outlined any steps it took to establish comparable service.13 As the 
Commission found in Rhythms, financial difficulty is not sufficient cause in itself to justify 
emergency discontinuance.14 Texcom acknowledges that it was aware for “many months” that it 
was having financial difficulties and that its problems were worsening, yet it failed to notify its 
customers that it would discontinue operations15 and failed to contact the Commission to inform 
6 47 C.F.R. § 63.71. Under section 63.71, once a non-dominant carrier has notified its customers of the planned 
discontinuance, and has applied with the Commission for discontinuance authority, the application is automatically 
granted on the 31st day after the Commission releases a public notice announcing its filing, unless it is shown that 
customers or other end users would be unable to receive service or a reasonable substitute from another carrier, or 
that the public convenience and necessity is otherwise adversely affected. See 47 C.F.R. §§ 63.71(a), (a)(5)(ii), (c). 
7 See 47 U.S.C. § 214(a). See also 47 C.F.R. § 63.71. 
8 See Requirements for Carriers to Obtain Authority Before Discontinuing Service in Emergencies and 
Northpoint Communications, Inc. Authority to Discontinue Service, Public Notice, 16 FCC Rcd 10924 (2001). 
9 47 C.F.R. § 63.63(b). Authority for the emergency discontinuance lasts for 60 days, after which the rules 
contemplate that service will resume. A carrier may request renewal of emergency authority. Id. 
10 47 C.F.R. § 63.63(a)(2). 
11 47 C.F.R. § 63.63(a)(3). 
12 47 C.F.R. § 63.63(a)(7). 
13 Emergency Application at 1-2. 
14 See Rhythms Link Inc. Emergency Application to Discontinue Domestic Telecommunications Services, Order 
(Rhythms), 16 FCC Rcd 16372, 16374-75 (2001) (denying Rhythms’s application for emergency discontinuance 
because it failed to show conditions existed that it could not have foreseen in time to prevent discontinuance). 
15 Emergency Application at 1-2. 
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it of its intent to discontinue.16 Texcom’s customers were given no advance warning and no 
opportunity to avoid disruption of service by seeking alternative providers. We conclude that, by 
its own admission, Texcom had ample opportunity to contact its customers and the Commission 
prior to discontinuing service, and thus cannot show that the conditions causing discontinuance 
could not have been foreseen or forestalled. Therefore, Texcom has failed to satisfy the 
requirements of sections 63.63(a)(3) and (7), and its application for emergency discontinuance is 
accordingly denied. 
III. ORDERING CLAUSE 
4. IT IS ORDERED, pursuant to sections 0.91, 0.291, and 63.63(b) of the Commission’s 
rules, 47 CFR §§ 0.91, 0.291, 63.63(b), that NACS Communications, Inc. d/b/a Texcom USA’s 
application for emergency discontinuance IS DENIED. 
16 In Rhythms, the carrier also experienced financial trouble, not a sudden service disruption suitable for relief 
under section 63.63, but it nevertheless notified its customers of its impending bankruptcy and filed for permanent 
discontinuance under section 63.71 before ceasing operations. See Rhythms, 16 FCC Rcd at 13374-75. 
DA 03-1747 Federal Communications Commission 
FEDERAL COMMUNICATIONS COMMISSION 
Michelle M. Carey 
Chief, Competition Policy Division 
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