4. Public Interest

Applicants state that granting of the proposed transaction will serve the public interest. The proposed transaction will enable FCL, Globalcom, and Xtension to access additional financial and operational resources from its new publicly traded parent company. These additional resources will allow FCL, Globalcom, and Xtension to strengthen its competitive position in California to the benefit of Californian consumers and the State's telecommunications marketplace. Specifically, the transaction will allow the combined company to pursue growth strategies as well as increase brand awareness, expand into additional geographic markets, and expand their service offerings. The combined company will also hold the managerial, operational and technical qualifications of existing FCI management.

In addition, the transaction will be conducted in a manner that will be virtually transparent to the customers of FCL, Xtension, and Globalcom. The transfer of control of FCL, Xtension, and Globalcom will not result in a change of carrier for customers or any transfer or assignment of authorizations. Following consummation of the proposed transaction, FCL, Xtension, and Globalcom will continue to provide high quality communications services to its customers without interruption and without change in rates, terms or conditions. Applicants emphasize that the proposed transfer of control will be seemless and virtually transparent to the customers of FCL, Xtension, and Globalcom, and in no event will it result in the discontinuation, reduction, loss, or impairment of service to customers.

Approval of the transaction will also help the Applicants realize significant economic and marketing efficiencies which in turn will enhance their ability to continue providing high quality, low cost telecommunications services and to compete more effectively in the telecommunications market. Applicants' operations will more readily increase in size and profitability, due to enhanced economies of scale. Accordingly, Applicants contend that the proposed transaction will benefit consumers through improved services and lower rates, thereby promoting competition in the telecommunications market.

Applicants request that the Commission process this application on an expedited basis to ensure that the transaction can be completed before January 29, 2009. The merger agreement (Attachment C to the Application) contains a termination clause, if the proposed merger is not consummated by January 29, 2009 and such merger cannot be consummated without the Commission's approval of this Application. Applicants also request expedited approval here due to the unstable and deteriorating conditions of the credit market that may put the merger transaction in jeopardy.  Applicants further contend they face increasing risk with each passing day that creditors may materially alter lending terms which could in turn severely compromise the viability of this merger transaction.

For all of the foregoing reasons, Applicants submit that an expedited approval of the proposed transaction is in the public interest.