2. Background

The Commission opened this rulemaking to establish rules governing the transfer of customers from a Competitive Local Exchange Carrier (CLEC) exiting the local telecommunications market. Decision (D.) 06-10-021 resolved Phase 1 by adopting Mass Migration Guidelines that apply when a CLEC files an application to discontinue providing local exchange services to its customers. The Mass Migration Guidelines are limited to voluntary exits. The procedures contained in the Mass Migration Guidelines permit the CLEC's customers the opportunity to migrate to another Local Exchange Carrier (LEC) without interruption of service. The Commission deferred considering applying the Mass Migration Guidelines to CLEC-to-CLEC migrations, Incumbent Local Exchange Carrier (ILEC)-to-CLEC migrations, and involuntary exits, such as disconnection due to default in payments and Commission termination of a CLEC's certificate of public convenience and necessity, to this phase of the proceeding.

By a January 2, 2007 ruling, comments were requested on whether the Mass Migration Guidelines adopted for voluntary exits of CLECs in D.06-10-021 should apply to involuntary exits, CLEC-to-CLEC customer transfers, and/or ILEC-to-CLEC customer transfers. Parties filed comments on January 29, 2007, and reply comments on February 16, 2007 on those issues. By a September 11, 2008 ruling, comments were requested on modifications to the Mass Migration Guidelines that would improve the efficient resolution of CLEC applications to discontinue providing local exchange services. Specifically, comments were sought on modifications to the timing for resolving applications, the handling of incomplete applications, the review process for customer notification letters, the provision of customer lists, and compensation for default carriers. Parties also were permitted to file updates to their comments filed in response to the January 2, 2007 ruling. Parties filed comments on September 26, 2008.

A workshop was held on January 23, 2009 to address three issues:

1. Use of the advice letter process for CLEC involuntary exits from providing local exchange service;

2. Applying the Mass Migration Guidelines adopted in D.06-10-021 to ILEC voluntary exits; and

3. Adopting general principles and limited procedures for CLEC-to-CLEC/ILEC end-user transfers.

Parties served position statements in advance of the workshop. A January 27, 2009 post-workshop ruling summarized the parties' positions at the workshop and set a schedule for the workshop participants to file a consensus position on the issue of general principles for CLEC-to-CLEC/ILEC end-user transfers. The parties generally agreed at the workshop that Pacific Bell Telephone Company d/b/a AT&T California's (AT&T) Proposed Guidelines for CLEC Involuntary Exits from Local Exchange Service Market should be adopted. The parties agreed that using the Mass Migration Guidelines as a starting point for ILEC voluntary exit guidelines should be deferred until the reverse auction process is resolved. Although it might be possible to address ILEC voluntary exit guidelines in the context of the reverse auction process, the parties agreed it is likely that the Commission would need to initiate a separate process to address those guidelines.

The parties generally agreed that proposals submitted by AT&T, California Association of Competitive Telecommunications Carriers (CALTEL), and Verizon California Inc. (Verizon) on end-user transfers in their position papers could be merged to create a consensus proposal. The parties requested the opportunity to reach and file a consensus position. Two extensions were sought, and by Administrative Law Judge (ALJ) e-mail rulings the date for filing consensus positions ultimately was extended to April 2, 2009.

The parties were unable to reach a single consensus position. Verizon filed a consensus position generally supported by The Utility Reform Network (TURN). Cox California Telcom, LLC (Cox), tw telecom of California lp (tw telecom), and Time Warner Cable Information Services (Time Warner) (Joint Providers) filed a separate consensus position. CALTEL filed a report on the negotiations.

The Phase 2 Scoping Memo was issued on April 20, 2009 and served both on the service list and all California CLECs, at the request of Joint Providers, because the issues had expanded beyond customer transfers occurring when carriers exit the local exchange market. Phase 2 is considering end-user transfers that occur when carriers remain California providers. Pursuant to the scoping memo, parties filed comments on June 1, 2009 and reply comments on June 15, 2009. Joint Providers sought and received permission to file supplemental comments on June 19, 2009. Although notice was provided to all CLECs, no additional CLEC filed comments in response to the scoping memo.

A December 30, 2009 ruling requested comments on draft guidelines and principles and the revised Mass Migration Guidelines. Parties filed comments on January 15, 2010. A corrected version of the draft Guidelines for CLEC Involuntary Exits from Local Exchange Services Market was circulated for comment by a February 4, 2010 ruling. After an extension was granted, wholesale providers and TURN filed comments on February 25, 2010.