II. Background

In prior decisions, we authorized the provision of competitive local exchange service within the service territories of Pacific Bell Telephone Company (Pacific), Verizon California Inc. (Verizon), Roseville Telephone Company (RTC) and Citizens Telecommunications Company of California, Inc. (CTC).

Applicant, a Texas corporation, has its principal place of business located at 1600 Viceroy Drive, Dallas, Texas 75235.

Applicant was granted authority to resell interexchange services by Decision (D.) 94-05-053 (U-5384-C).

In this application, Applicant requests authority to provide limited facilities-based and resold local exchange services within Pacific and Verizon's service territories, as well as approval of its acquisition of a controlling interest in Choctaw. Applicant and CSD filed a joint motion on March 8, 2002 requesting approval of a settlement. We will address the settlement first, and the request for a CPCN second.