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ALJ/DOT/hkr DRAFT CA-32

10/25/2001

Decision _______________

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of BroadBand Office Communications, Inc. for Authority to Withdraw Entirely from Public Service.

Application 01-06-037

(Filed June 20, 2001)

OPINION ALLOWING WITHDRAWAL FROM SERVICE

I. Background

BroadBand Office Communications, Inc. (BBOC) (U-6326-C) filed an application on June 20, 2001, pursuant to Pub. Util. Code § 451 and General Order (GO) 96-A, requesting authority from the California Public Utilities Commission (Commission) to withdraw entirely from service in California.

In March 2000, BBOC obtained its Certificate of Public Convenience and Necessity (CPCN) to provide resold and limited facilities-based competitive local exchange service, interLATA, and intraLATA services1 in California.2 BBOC provides local exchange service and long distance, including Centrex, special access, private line and Digital Subscriber Line service, to approximately 137 customers in the state.

In the present application, BBOC states that on May 9, 2001, the parent company of BBOC, BroadBand Office, Inc. (BBO), filed for protection under Chapter 11 of the Bankruptcy Code. Despite numerous efforts to secure additional financing to maintain operations, BBOC states that its parent company was unable to find an investor or buyer. As a result, BBOC explains that it has no choice but to terminate service to customers in California.

On May 10, 2001, BBO sent a notice to all of its current customers in California indicating that it was in bankruptcy and that it and its subsidiaries intended to discontinue service to all customers in 30 days, or by June 11, 2001. The letter explained that customers would need to arrange for another local and long distance provider and suggested that customers contact the incumbent local telephone company (ILEC) or a competitive carrier. The notice provided customers with a toll-free customer assistance number to address any questions or concerns.

BBOC sent a second customer notice regarding discontinuance of service to customers on June 21, 2001. The notice stated that BBO would discontinue service on June 26, 2001 and urged customers to arrange alternate service providers immediately.

As further support for its withdrawal from service in California, BBOC states that it does not owe any outstanding regulatory surcharges to the Commission.

1 California is divided into ten Local Access and Transport Areas (LATAs) of various sizes, each containing numerous local telephone exchanges. "InterLATA" describes services, revenues, and functions that relate to telecommunications originating in one LATA and terminating in another. "IntraLATA" describes services, revenues, and functions that relate to telecommunications originating and terminating within a single LATA.
2 See Decision (D.) 00-03-047 (March 16, 2000).

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