STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

August 10, 2001

Item 8

8/23/2001

TO: PARTIES OF RECORD IN APPLICATION 01-06-036

This is the draft decision of Administrative Law Judge (ALJ) Duda. It will be on the Commission's agenda at the meeting on August 23, 2001. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Pursuant to Rule 77.7(g), comments on the draft decision must be filed within seven days of its mailing and no reply comments will be accepted.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. In addition to service by mail, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ Duda at dot@cpuc.ca.gov. Finally, comments must be served separately on the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious methods of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC: eap

Attachments

ALJ/DOT/eap DRAFT Item 8

8/23/2001

Decision DRAFT DECISION OF ALJ DUDA (Mailed 8/10/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Cable & Wireless (U 5056 C) for Approval to Withdraw its Certificate of Public Convenience and Necessity to Provide Resold Local Exchange Service and to Discontinue Provisioning Resold Local Exchange Service.

Application 01-06-036 (Filed June 8, 2001)

O P I N I O N

I. Introduction

Cable & Wireless U.S.A., Inc.¹ ("Cable & Wireless," or the "Company") filed an application on June 8, 2001, pursuant to Pub. Util. Code § 2889.3 and General Order (GO) 96-A, requesting authority from the California Public Utilities Commission ("Commission") to withdraw its Certificate of Public Convenience and Necessity ("CPCN") to provide resold local exchange service to residential customers in the State of California. Despite its intent to discontinue local exchange service, Cable & Wireless plans to continue providing interexchange and intraLATA long distance service to California customers.

Cable & Wireless, a global telecommunications carrier, provides local exchange service, interexchange services and other enhanced internet protocol (IP) services. It was granted authority by the Commission to provide interexchange service in 1993 and a CPCN to provide local exchange services in 1996.¹ The Company serves approximately 241 small to medium-sized business customers in cities throughout California using facilities of the underlying incumbent local exchange carrier (ILEC).

Cable & Wireless requests the expedited treatment of this Application so that it may pursue other business opportunities that are more aligned with the Company's current business strategies.