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FOR IMMEDIATE RELEASE Docket #: D.07-03-014

Media Contact: Terrie Prosper, 415.703.1366, news@cpuc.ca.gov

PUC ISSUES FIRST VIDEO FRANCHISE UNDER NEW STATE LAW

SAN FRANCISCO, March 8, 2007 - The California Public Utilities Commission (PUC) today approved the first video franchise application made under state legislation passed last year. Under the terms of the PUC-approved franchise application, Verizon now may offer video service to Californians residing in 45 different California communities, including portions of the cities of Huntington Beach, Long Beach, Santa Monica, and other southern California municipalities (see below for the list of 45 cities). Verizon's application calls for a phased roll-out of service in these regions corresponding to company build-out capability.

"I am very pleased to announce the PUC's issuance of the first-ever state-approved video franchise," said PUC Executive Director Steve Larson. "As new companies enter into the video marketplace, we believe California consumers will benefit from more choices in programming and service options."

The PUC officially launched the state video franchise application process at its March 1, 2007, meeting in a unanimous decision with all five PUC Commissioners voting.

Under the terms of the Digital Infrastructure and Video Competition Act (AB 2987) passed in late 2006, the PUC must determine whether a video franchise application is complete within 30 days of its submission, and must issue a video franchise within 14 days after finding the application complete. Prior to the recent legislative change, a video service provider had to seek permission from the local governments in each individual locality where it sought to offer service.

Consumers can check online at www.verizonfios.com or call 877-707-7066 to see if Verizon's video service is available in their area.

More information on video franchising is available at www.cpuc.ca.gov/static/hottopics/2telco/videofranchising.htm.

For more information on the PUC, please visit www.cpuc.ca.gov.

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Communities Approved Under Franchise Agreement

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