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MP1/JLG/eap 1/17/2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

DSLExtreme,

            Complainant,

      vs.

Verizon California, Inc.,

            Defendant.

Case 05-09-008

(Filed September 8, 2005)

ASSIGNED COMMISSIONER'S RULING AND SCOPING MEMO

This ruling sets the schedule for the proceeding and determines its scope following the November 29, 2005 prehearing conference (PHC). At the request of the parties, this ruling also refers this proceeding to an early neutral evaluation (ENE).

Background

Extreme Telecom, Inc., dba DSLExtreme (DSLExtreme) alleges Verizon California, Inc. (Verizon) is violating Pub. Util. Code §§ 451 and 453 in the provision of DSL transport. DSLExtreme alleges Verizon has failed to provide a reasonable level of service in the processing of DSL orders, provisioning of high capacity circuits, installation and maintenance of customers' DSL service, and in billing services and technical support provided to DSLExtreme. Further, DSLExtreme alleges discrimination in the provisioning of DSL transport in favor of Verizon's affiliate, Verizon Online. Verizon denies these allegations and asserts DSLExtreme seeks remedies beyond the jurisdiction of the Commission. Verizon also asserts this complaint is preempted under federal statutory law and federal regulations.

At the request of the administrative law judge (ALJ), DSL Extreme and Verizon filed PHC statements on November 21, 2005 to address the impact of the Federal Communications Commission's (FCC) September 23, 2005 Report and Order in its broadband Internet access services proceeding on the issues raised in this complaint. (Report and Order, In the Matters of Appropriate Framework for Broadband Access to the Internet over Wireline Facilities, Universal Service Obligations of Broadband Providers; Review of Regulatory Requirements for Incumbent LEC Broadband Telecommunications Services, et al., CC Docket No. 02-33; CC Docket No. 01-337; CC Docket Nos. 95-20, 98-10; WC Docket No. 04-242; WC Docket No. 05-271, 20 FCC Rcd. 14853.)

Verizon asserts the FCC's order divests the Commission of jurisdiction over the complaint, since the FCC no longer requires common carrier regulation for DSL transport service and permits carriers to discontinue offering DSL transport after one year. Verizon further asserts the FCC has classified its DSL transport as an interstate service, its DSL transport is tariffed at the FCC, and its DSL transport is subject to the FCC's jurisdiction, not the Commission's. DSLExtreme asserts the Commission retains jurisdiction, because the FCC's order does not specifically preempt states from regulating DSL.

DSLExtreme requests that the Commission order Verizon to take specific actions should the Commission find Verizon has violated Commission rules and regulations in the provisioning of DSL transport. DSLExtreme also requests that the Commission order penalties. DSLExteme's requests for compensatory damages and attorneys' fees are beyond the relief this Commission may grant.

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