Upon the petition of any citizens residing in territory which is open territory, requesting telephone service from an adjacent telephone exchange, the Commission may cause the same to be set for hearing and give due and proper notice in writing, at least ten (10) days prior to the date of hearing, to all persons, firms or corporations holding certificates to furnish service in adjacent territory or furnishing service in adjacent territory and to the municipal officials of all municipalities in said affected territories, and by publication for one (1) week in a newspaper of general circulation in the territory affected. If, at such hearing, the Commission finds from competent evidence that the public convenience and necessity requires the furnishing of telephone service in the affected territory, it shall have the further power to order and direct the person, firm, association, corporation or cooperative which can most economically extend its service so as to furnish efficient telephone service in the affected territory to so extend its service, provided that it shall not make an order so requiring unless it finds, from substantial evidence, that the person, firm or corporation so ordered to serve is earning a fair return on the fair value of its property devoted by it to the public service in this state and that the rendition of service in the affected territory will not prevent the person, firm or corporation so ordered to serve from earning a fair return on the fair value of its property devoted to the public service in this state.

Laws 1959, p. 85, § 2.