IV. The Parties

XO California is a Washington corporation and a wholly owned subsidiary of XO, a Delaware corporation. XO California (formerly NEXTLINK Communications) was granted a Certificate of Public Convenience and Necessity (CPCN) to provide facilities-based and resold competitive local exchange service in D.95-12-057 and D.96-02-072, respectively. D.95-12-057 assigned XO California, a nondominant telecommunications carrier, its U-5553-C corporate identification number.

XO Long Distance (formerly NEXTLINK Long Distance Services, Inc.) is a Washington corporation and a wholly owned subsidiary of XO. In D.99-11-061, the Commission granted XO Long Distance authority to operate as a switchless reseller of inter-Local Access and Transport Area (LATA) service. That decision assigned XO Long Distance, a nondominant telecommunications carrier, its U-6272-C corporate identification number. In D.00-07-059, the Commission granted XO Long Distance authority to operate as a facilities-based carrier of interLATA and, to the extent authorized by D.94-09-065, intraLATA telecommunications services offered by communication common carriers in California subject to the conditions set forth in that decision.

Forstmann Little is a private equity firm formed in 1978 that has made 29 acquisitions and significant equity investments, including in XO, through several limited partnerships. The two Forstmann Little affiliates making the investment in XO, Forstmann Little & Co. Equity Partnership-VII (FLVII) and Forstmann Little & Co. Subordinated Debt and Equity Management Buyout Partnership-VIII (FLDEVIII), are Delaware limited partnerships. The general partners of these affiliates also are Forstmann Little limited partnerships. The general partners of those general partner entities are Theodore J. Forstmann, Sandra J. Horbach, Winston W. Hutchins, Thomas H. Lister, Jamie C. Nicholls, and Gordon A. Holmes. FLVII's limited partners are comprised primarily of institutional investors, with some individual investors. FLDEVIII's limited partners are comprised of various institutional investors.

Telmex, a Mexican corporation, has more than 13 million telephone lines in service, 1.43 million line equivalents for data transmission and more than 845,000 Internet accounts in Mexico. Privatized in 1990, Telmex is controlled by Carso Global Telecom, S.A. de C.V., a Mexican holding company.