II. Discussion

The application before us raises two major issues. First, should the Commission grant BBOC the authority to withdraw its CPCN to provide resold local exchange services to customers in the State of California? Second, if so, does the customer notification provided by BBOC meet the minimum established notice requirements set in D.97-06-096?

A. Commission Authorization to Withdraw From Service

According to GO 96-A, Section XIV, "No public utility of a class specified herein shall, unless authority has been obtained from the Commission, either withdraw entirely from public service or withdraw from public service in any portion of the territory served." Thus, BBOC is required to continue to offer local exchange service to existing customers until or unless authorized to discontinue it by this Commission. According to BBOC's filings, it has not withdrawn from service without Commission approval and it continues to maintain service to 91 customers in California while awaiting authorization to withdraw from service.³

As noted in several recent orders,⁴ it is disheartening to find competitive local exchange carriers and long distance carriers exiting competitive markets given our efforts over the past several years to promote the growth of competitive alternatives for consumers. We regret that carriers find it necessary to file applications intended to diminish, rather than increase, the competitive choices available to local customers. Nevertheless, just as our rules do not compel carriers to enter into competitive markets, neither can we obligate a carrier, particularly one that has filed for bankruptcy, to continue to serve a market. As we established in several recent orders, we will allow BBOC to withdraw from service after providing any remaining customers with an additional ten days notice to provide time for those customers to make arrangements with another carrier. As a further condition of the withdrawal, we will require BBOC to transfer any remaining customers to the underlying ILEC, either Pacific Bell Telephone Company (Pacific) or Verizon California, Inc. (Verizon), if they have not chosen another provider within ten days of receiving final notification from BBOC. Likewise, Pacific and Verizon are directed to accept all customers transferred to them from BBOC, subject to the ILEC's existing rights of termination after proper notice. This requirement will ensure that BBOC customers will continue to have uninterrupted service.

B. The Customer Notice Process

Customers are entitled to be properly informed about their options when a carrier seeks to exit from the local market. In D.97-06-096, we established minimum requirements for transfer of a customer base from one carrier to another.⁵ In D.01-06-036, we found that the notice requirements of D.97-06-096 apply when a carrier is withdrawing from service and transferring any remaining customers to the ILEC. (D.01-06-036, p. 21.)

We find that the notification provided by BBOC to its customers reasonably complied with these notice requirements. BBOC's initial letter to customers provided the required 30 days notice that service would be discontinued. The notice contained a straightforward description of the transfer, provided directions regarding transfer to another carrier, and listed a toll-free number for further assistance. The notice also contained an adequate description of BBOC's services as required by the notice requirements.

Although BBOC's notice to customers did not state that Commission authorization was required before service could be discontinued, we are satisfied that BBOC did not disrupt service to any customers while awaiting Commission approval of this application. Therefore, we find that BBOC has reasonably met the notice requirements established in D.97-06-096. As stated above, we will require one final 10-day notice to customers indicating the Commission has approved the withdrawal of service.

³ See BBOC's Response to Administrative Law Judge (ALJ) Ruling, filed August 17, 2001.

⁴ See, e.g., D.01-06-036 and D.01-08-068.

⁵ D.97-06-096 established the following minimum notice requirements:

1. The notice must be in writing; 2. The carrier must provide it to customers no later than 30 days before the proposed transfer; 3. The notice must contain a straightforward description of the upcoming transfer, any fees the customer will be expected to pay, a statement of the customer's right to switch to another carrier, and a toll-free number for questions; and 4. The notice and the carrier's description of service to customers must be included in the advice letter.