III. CONCLUSION

For the reasons stated above, D.07-09-018 and D.07-09-019 are modified to: (1) delete language requiring URF Carriers to file advice letters with more restrictive terms and conditions for basic service under Tier 3; and (2) clarify language that is inconsistent with the Commission's determination in these decisions that URF advice letters formerly qualifying for one-day effective filing under the Phase I Decision may now be filed under Tier 1 as set forth in GO 96-B, General Rule 7.3.3. D.07-09-019 is also modified for the purpose of clarifying inconsistencies and correcting clerical errors, as set forth below. Rehearings of D.07-09-018 and D.07-09-019, as modified, are denied.

THEREFORE, IT IS ORDERED that:

1. D.07-09-018 shall be modified as follows:

a. The first bullet point on page 3 is modified to read:

"All tariff changes to retail service offerings other than basic service rates;"

b. The first bullet point on page 14 is modified to read:

"Changes to services other than basic service rates;"

c. The last sentence on page 14 beginning with "As also discussed in our accompanying GO 96-B decision ..." and ending on page 15 with "more restrictive" is modified to read:

"We find that changes to terms and conditions for basic service shall be filed in Tier 1 to the extent that such changes are not inconsistent with the law, or Commission orders or decisions."

d. The second complete sentence on page 15 beginning with "Imposition of more restrictive ..." is deleted.

e. The second and third sentences under Section 7.8 on page 76 are modified to read:

"To the extent that a carrier seeks to file any changes to terms and conditions for basic service, and such changes are not inconsistent with Commission decisions or orders, or state or federal law, such changes may be filed in Tier 1."

f. Conclusion of Law 4 on page 89 is modified to read:

"Changes to basic service terms and conditions that do not conflict with law, or Commission decisions or orders, may be filed in Tier 1."

2. D.07-09-019 shall be modified as follows:

a. The last sentence on page 7 beginning with "Tier 1 now includes" and ending on page 8 is modified to read:

"Tier 1 now includes changes by an URF Carrier to a "rate, charge, term, or condition of a regulated service other than Basic Service rates."

b. The second and third sentences of the second paragraph on page 58 are deleted.

c. Telecommunications Industry Rule 5.2(i) in Appendix A, Page 7 and Appendix B, Page 8, is modified so that the word "services" follows the word "detariffed."

d. The first sentence of Telecommunications Industry Rule 7.1(5) in Appendix A, Page 9 and Appendix B, Page 11, is modified to replace the word "regulated" with the word "retail."

e. The second sentence of Telecommunications Industry Rule 7.1(5) in Appendix A, Page 9 and Appendix B, Page 11, is modified to read:

"Changes to terms and conditions for Basic Service that do not conflict with law or the Commission's decisions or orders are permitted."

f. Telecommunications Industry Rule 7.4(3) in Appendix A, Page 13 and Appendix B, Page 16, is modified to replace "URF Carrier" with "URF Carrier that is an incumbent local exchange carrier."

3. Rehearing of D.07-09-018, as modified, is denied.

4. Rehearing of D.07-09-019, as modified, is denied.

5. Rulemaking (R.) 98-07-038 is closed.

This order is effective today.

Dated May 15, 2008 at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners