VI. Comment on Draft Decision

The draft decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(g)(1) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Pursuant to Section 311(g)(2), Cable & Wireless agreed to reduce the otherwise applicable 30-day period for public review and comment to seven days. Comments were filed on _________________.

Findings of Fact

1. Cable & Wireless was certificated to provide competitive local exchange service in 1996.

2. Cable & Wireless currently offers resold local exchange service as well as interexchange and intraLATA long distance.

3. Cable & Wireless seeks to withdraw from the provision of local exchange service, but to continue offering interexchange and intraLATA long distance service.

4. Cable & Wireless has proposed a three (3)-part customer notification process directing customers to switch to another local carrier to avoid service interruptions when the Commission has authorized the discontinuation of its resold local exchange service.

5. No protests to this application were filed and a hearing is not required.

Conclusions of Law

1. Under GO 96-A, Commission approval is required before a carrier may withdraw from the provision of public utility service.

2. The customer notice requirements of D.97-06-096 apply to requests to discontinue service such as this one.

3. Cable & Wireless should be granted authority to discontinue offering resold local exchange service subject to the following conditions:

a. Within 10 days of the effective date of this order, Cable & Wireless shall send a notice to all of its current California local exchange customers advising them that the Commission has authorized Cable & Wireless to withdraw from providing local exchange service effective 30 days following the notice to customers.

b. The notice shall be identical to the one contained in Exhibit B of the application, except that the notice shall make clear that if the customer does not choose a new local service provider within 30 days, the customer will be transferred to the ILEC.

c. Any customers that do not select an alternative local exchange provider after the 30-day notice period shall be transferred to the underlying ILEC, subject to the ILEC's existing rights of termination, after proper notice.

d. Cable & Wireless shall send confirmation to the assigned ALJ certifying that the notices have been sent as directed and that any remaining customers have been transferred to the underlying ILEC.

4. Customers that are switched from Cable & Wireless to an ILEC remain protected against unreasonable rate increases or inadequate service quality by ILEC regulatory rules.

ORDER

IT IS ORDERED that:

1. The application of Cable & Wireless U.S.A., Inc. (Cable & Wireless) for authority to withdraw from the provision of resold local exchange service is hereby granted subject to the terms and conditions contained in this order.

2. Cable & Wireless is directed to prepare and mail within 10 days of this decision a notice, as set forth in this decision, to its current California customers advising them that the Commission has authorized Cable & Wireless to withdraw from providing local exchange service effective 30 days following the notice to customers.

3. Pacific Bell Telephone Company (Pacific) and Verizon California Inc. (Verizon) are directed to accept all customers transferred to them from Cable & Wireless, subject to their rights to terminate such customers after proper notice if prescribed standards of service provision are not met.

4. Cable & Wireless shall send a compliance report to the assigned Administrative Law Judge, within 45 days of this decision, certifying that customer notification has properly been sent as directed in this order, that any remaining customers have been transferred to the underlying incumbent local exchange carrier, and that no customers were disconnected for failure to choose another provider.

5. Cable & Wireless shall retain its Certificate of Public Convenience and Necessity local exchange authority pending a final order in this docket following receipt and approval of the above-referenced compliance report.

6. A copy of this order shall be served on Pacific and Verizon.

This order is effective today.

Dated , at San Francisco, California.

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