Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Katherine Kwan MacDonald is the assigned ALJ in this proceeding.

1. Applicant was granted authority to provide limited facilities-based and resold competitive local exchange service in AT&T California and Verizon California Inc. service territory in D.01-01-017.

2. Applicant was granted authority to provide interexchange telecommunications services state wide in D.01-08-029.

3. Applicant requests authority to provide limited facilities-based and resold competitive local exchange service in Citizens territory.

4. Applicant filed an Amended Application on December 23, 2010 which contains the additional information required by the all-party Settlement Agreement.

5. There is currently no opposition to granting this Application, in light of the proposed all-party Settlement Agreement filed in this proceeding.

6. The proposed Settlement Agreement by and between Applicant and CPSD resolves all issues raised by CPSD's protest in this proceeding.

7. Public disclosure of the financial information filed under seal would place Applicant at an unfair business disadvantage.

1. The proposed all-party Settlement Agreement filed in this proceeding, including all of its terms and conditions, is reasonable in light of the whole record and consistent with the law, and its adoption would be in the public interest.

2. The proposed all-party Settlement Agreement, attached hereto as Attachment E, should be approved and adopted.

3. Metropolitan Telecommunications of California, Inc. should be granted a CPCN subject to the conditions set forth in the attached Settlement Agreement and attachments.

4. Applicant's request to file its financial information under seal should be granted for two years.

ORDER

IT IS ORDERED that:

1. The proposed all-party Settlement Agreement, attached hereto as Attachment E, is adopted.

2. A Certificate of Public Convenience and Necessity is granted to Metropolitan Telecommunications of California, Inc. to limited facilities-based and resold local exchange service in California subject to the conditions set forth herein.

3. Metropolitan Telecommunications of California, Inc. must pay a fine totaling $8,000. As required by Section 2 of the Settlement Agreement, the first payment of $2,000 must be made within 30 days of the effective date of this order. The remaining $6,000 must be paid to the Commission in three monthly installments of $2,000 each. The three installments are due in the three consecutive months after the due date for the initial payment. Metropolitan Telecommunications of California, Inc. will be deemed in default if full payment of the penalty under Section 2 of the Settlement Agreement is not made within five days of each due date. Payment must be made by check or money order payable to the California Public Utilities Commission and mailed or delivered to the Commission's Fiscal Office, at 505 Van Ness Avenue, Room 3000, San Francisco, CA 94102. The words "For deposit to the General Fund per Decision 11-07-021" must be written on the face of the check or money order.

4. The Certificate of Public Convenience and Necessity granted in Ordering Paragraph 2 is effective when the first $2,000 penalty payment required by Section 2 of the Settlement Agreement has been made.

5. The certificate granted, and the authority to render service under the rates, charges, and rules authorized, will expire if not exercised within 12 months after the effective date of this order.

6. Metropolitan Telecommunications of California, Inc. is authorized to file tariff schedules for the provision of competitive local exchange services with the deficiencies noted in Attachment A corrected. Metropolitan Telecommunications of California, Inc. may not offer services until tariffs are on file. Metropolitan Telecommunications of California, Inc.'s initial filing must be made in accordance with General Order 96-B, the Telecommunications Industry Rules. Metropolitan Telecommunications of California, Inc. must comply with its tariffs.

7. Metropolitan Telecommunications of California, Inc. is assigned corporate identification number U6568C which must be included in the caption of all filings made with this Commission.

8. In addition to all the requirements applicable to competitive local exchange carriers included in Attachments B, C, and D to this decision, Metropolitan Telecommunications of California, Inc. is subject to the Consumer Protection Rules contained in General Order 168, and all applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities.

9. Metropolitan Telecommunications of California, Inc. must file, in this docket, a written acceptance of the certificate granted it in this proceeding within 30 days of the effective date of this order.

10. Metropolitan Telecommunications of California, Inc. must annually pay the user fee and public purpose surcharges specified in Attachment B. Per the instructions in Exhibit E to Decision 00-10-028, the Combined California Public Utilities Commission Telephone Surcharge Transmittal Form must be submitted even if the amount due is $0.

11. Prior to initiating service, Metropolitan Telecommunications of California, Inc. must provide the Commission's Consumer Affairs Branch with the name and address of its designated contact person(s) for purposes or resolving consumer complaints. This information must be updated at least annually and whenever the name or telephone number changes.

12. Metropolitan Telecommunications of California, Inc. must notify the Director of the Communications Division in writing of the date that local exchange service is first rendered to the public, no later than five days after service first begins.

13. Metropolitan Telecommunications of California, Inc. must file an affiliate transaction report with the Director of the Communications Division, in compliance with Decision 93-02-019, on a calendar year basis. The report must set forth the information described in Attachment D.

14. Metropolitan Telecommunications of California, Inc. must file an annual report with the Director of the Communications Division, in compliance with General Order 104-A, on a calendar-year basis with the information described in Attachment C to this decision.

15. Metropolitan Telecommunications of California, Inc. is not authorized to construct facilities other than those to be installed in existing buildings and structures.

16. All sealed information will remain sealed for a period of two years after the effective date of this order. After two years, all such information will be made public. If Metropolitan Telecommunications of California, Inc. believes that further protection of sealed information is needed beyond two years, Metropolitan Telecommunications of California, Inc. may file a motion, no later than 30 days before the expiration of the two-year period granted by this order, stating the justification for further withholding of the sealed information from public inspection.

17. Application 10-05-018 is closed.

This order is effective today.

Dated July 14, 2011, at San Francisco, California.

ATTACHMENT A

List of deficiencies in tariff filed by Metropolitan Telecommunications of California, Inc. in Application 10-05-018 to be corrected in its tariff compliance filing:

No deficiencies noted.

(END OF ATTACHMENT A)

ATTACHMENT B

REQUIREMENTS APPLICABLE TO COMPETITIVE LOCAL EXCHANGE CARRIERS

1. Applicant must file, in this docket, a written acceptance of the certificate granted in this proceeding within 30 days of the effective date of this order.

2. Applicant is subject to the following fees, and you must remit them regularly. Per the instructions in Decision (D.) 00-10-028, the Combined California PUC Telephone Surcharge Transmittal Form must be submitted, even if the amount due is $0.

a. The current 1.15% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the Universal Lifeline Telephone Service Trust Administrative Committee Fund (Pub. Util. Code § 879; Resolution T-17071, dated March 1, 2007, effective April 1, 2007);

b. The current 0.20% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Relay Service and Communications Devices Fund (Pub. Util. Code § 2881; D.98-12-073 and Resolution T-17127, dated December 20, 2007, effective January 1, 2008);

c. The user fee provided in Pub. Util. Code §§ 431-435, which is 0.18% of gross intrastate revenue (Resolution M-4819), dated June 7, 2007, effective July 1, 2007;

d. The current 0.00% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-A (Pub. Util. Code § 739.3; D.96-10-066, pp. 3-4, App. B, Rule 1.C; Resolution T-17299, dated November 19, 2010, effective December 1, 2010);

e. The current 0.45% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-B (D.96-10-066, p. 191, App. B, Rule 6.F; D.07-12-054); Resolution T-17215, dated October 15, 2009, effective December 1, 2009;

f. The current 0.00% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Advanced Services Fund (D.07-12-054); Resolution T-17248, dated December 17, 2009, effective January 1, 2010; and

g. The current 0.079% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Teleconnect Fund (D.96-10-066, p. 88, App. B, Rule 8.G; Resolution T-17142, dated April 24, 2008, effective June 1, 2008).

These fees change periodically. In compliance with Resolution T-16901, December 2, 2004, you should check the joint tariff for surcharges and fees filed by Pacific Bell Telephone Company (d/b/a AT&T California) and apply the current surcharge and fee amounts in that joint tariff on your end-user bills until further revised.

3. Applicant is a competitive local exchange carrier (CLC). The effectiveness of its future tariffs is subject to the requirements of General Order 96-B and the Telecommunications Industry Rules (D.07-09-019).

4. Tariff filings must reflect all fees and surcharges to which Applicant is subject, as reflected in 2 above.

5. Applicant must file a service area map as part of its initial tariff.

6. Prior to initiating service, Applicant must provide the Commission's Consumer Affairs Branch with the name and address of its designated contact person(s) for purposes of resolving consumer complaints. This information must be updated if the name or telephone number changes, or at least annually.

7. Applicant must notify the Director of the Communications Division in writing of the date that local exchange service is first rendered to the public, no later than five days after service first begins.

8. Applicant must keep its books and records in accordance with the Generally Accepted Accounting Principles.

9. In the event Applicant's books and records are required for inspection by the Commission or its staff, it must either produce such records at the Commission's offices or reimburse the Commission for the reasonable costs incurred in having Commission staff travel to its office.

10. Applicant must file an annual report with the Director of the Communications Division, in compliance with GO 104-A, on a calendar-year basis with the information contained in Attachment C to this decision.

11. Applicant must file an affiliate transactions report with the Director of the Communications Division, in compliance with D.93-02-019, on a calendar-year basis with the information contained in Attachment D to this decision.

12. Applicant must ensure that its employees comply with the provisions of Pub. Util. Code § 2889.5 regarding solicitation of customers.

13. Within 60 days of the effective date of this order, Applicant must comply with Pub. Util. Code § 708, Employee Identification Cards, and notify the Director of the Communications Division in writing of its compliance.

14. If Applicant is 90 days or more late in filing an annual report, or in remitting the surcharges and fees listed in 2 above, the Communications Division shall prepare for Commission consideration a resolution that revokes Applicant's Certificate of Public Convenience and Necessity unless it has received written permission from the Communications Division to file or remit late.

15. Applicant is exempt from Rule 3.1(b) of the Commission Rules of Practice and Procedure.

16. Applicant is exempt from Pub. Util. Code §§ 816-830.

17. Applicant is exempt from the requirements of Pub. Util. Code § 851 for the transfer or encumbrance of property whenever such transfer or encumbrance serves to secure debt.

18. If Applicant decides to discontinue service or file for bankruptcy, it must immediately notify the Communications Division's Bankruptcy Coordinator.

19. Applicant must send a copy of this decision to concerned local permitting agencies no later than 30 days from the date of this order.

(END OF ATTACHMENT B)

ATTACHMENT C

ANNUAL REPORT

An original and a machine readable, copy using Microsoft Word or compatible format must be filed with the California Public Utilities Commission, 505 Van Ness Avenue, Room 3107, San Francisco, CA 94102-3298, no later than March 31st of the year following the calendar year for which the annual report is submitted.

Failure to file this information on time may result in a penalty as provided for in Pub. Util. Code §§ 2107 and 2108.

Required information:

For answers to any questions concerning this report, call (415) 703-2883.

(END OF ATTACHMENT C)

ATTACHMENT D

CALENDAR YEAR AFFILIATE TRANSACTION REPORT

1. Each utility must list and provide the following information for each affiliated entity and regulated subsidiary that the utility had during the period covered by the annual Affiliate Transaction Report.

· Form of organization (e.g., corporation, partnership, joint venture, strategic alliance, etc.);

· Brief description of business activities engaged in;

· Relationship to the utility (e.g., controlling corporation, subsidiary, regulated subsidiary, affiliate);

· Ownership of the utility (including type and percent ownership);

· Voting rights held by the utility and percent; and

· Corporate officers.

2. The utility must prepare and submit a corporate organization chart showing any and all corporate relationships between the utility and its affiliated entities and regulated subsidiaries in #1 above. The chart should have the controlling corporation (if any) at the top of the chart, the utility and any subsidiaries and/or affiliates of the controlling corporation in the middle levels of the chart, and all secondary subsidiaries and affiliates (e.g., a subsidiary that in turn is owned by another subsidiary and/or affiliate) in the lower levels. Any regulated subsidiary should be clearly noted.

3. For a utility that has individuals who are classified as "controlling corporations" of the competitive utility, the utility must only report under the requirements of #1 and #2 above any affiliated entity that either (a) is a public utility or (b) transacts any business with the utility filing the annual report excluding the provision of tariff services.

4. Each annual report must be signed by a corporate officer of the utility stating under penalty of perjury under the laws of the State of California (CCP 2015.5) that the annual report is complete and accurate with no material omissions.

5. Any required material that a utility is unable to provide must be reasonably described and the reasons the data cannot be obtained, as well as the efforts expended to obtain the information, must be set forth in the utility's annual Affiliate Transaction Report and verified in accordance with Section I-F of Decision 93-02-019.

6. Utilities that do not have affiliated entities must file, in lieu of the annual transaction report, an annual statement to the Commission stating that the utility had no affiliated entities during the report period. This statement must be signed by a corporate officer of the utility, stating under penalty of perjury under the laws of the State of California (CCP 2015.5) that the annual report is complete and accurate with no material omissions.

(END OF ATTACHMENT D)

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