Criteria for Commission Approval of a Carrier's Termination of Service
A CLEC must continue providing local exchange service until its application to withdraw service is approved by the Commission. In deciding whether to approve a CLEC's application we consider the progress made toward migrating customers, the availability of alternatives, and the nature of the customer base that is in jeopardy of losing local service.
On December 28, 2007, SureWest filed a protest in this proceeding, asserting that the Commission should not permit Applicant to retain its CPCN after it discontinues what Applicant describes as "the provision of regulated local exchange and interexchange voice"18 telecommunications services. Otherwise, SureWest asserts, Applicant will no longer be a telecommunications carrier, but will have the associated rights and privileges19 of one. SureWest also contends that Applicant will gain competitive advantage, through reduced regulation and fewer fees, by migrating to a VoIP platform. Applicant's advantage will be over incumbent and competitive local exchange carriers as well as stand-alone VoIP providers. Consequently, SureWest urges the Commission to revoke the CPCN as a condition of approval of Comcast's Application.20
Applicant replied that SureWest's protest lacked substantive merit, was procedurally defective, and anti-competitive.21 It argued that SureWest never states that any public harm would result from the proposed discontinuance, because none would. Instead, Applicant maintains, migration to a VoIP platform will allow it to offer more advanced features than it could through the circuit-switched network. Applicant also contends that under their interconnection agreement, SureWest should have raised the issue of its status as a telecommunications carrier with it. Applicant further suggests that as a direct competitor, SureWest benefits from slowing down Applicant's movement to VoIP.
We agree that SureWest is not confined to the Dispute Resolution procedures contained in the interconnection agreement between Applicant and it in raising the question of whether or not Comcast Phone-CA should maintain its CPCN. SureWest asserts that once Applicant ceases to provide circuit-switched telecommunications services through Comcast Digital Phone (CDP), it will cease to be a telecommunications carrier in California because it will not be truly offering wholesale telecommunications services to the "public."22
However, Applicant contends that it will "continue to provide regulated access service." And, it is not clear from either its Application or the Reply to SureWest's Protest that Applicant intends to provide wholesale telecommunications services in support of only its affiliate VoIP provider. Applicant also maintains that "it has plans to make other offerings available, as well." It does not state that these offerings will be solely directed at its affiliate VoIP provider. Consequently, based on these contentions alone, we cannot find that Applicant will cease to be a telecommunications carrier when it discontinues offering services through CDP. Thus, we deny SureWest's request. But in denying SureWest's request, we acknowledge that the regulatory status of VoIP providers in California remains an issue for resolution through the appropriate procedural vehicle. The Commission anticipates it will need to look closely at this regulatory question in the near future.
In its February 4, 2008 Progress Report, Applicant indicated that 6,497 customers (over 50% of its originally affected customers) had switched to an alternate local service carrier, or had otherwise made firm arrangements to switch to another local carrier.23 By February 28, 2008, 8,734 customers had switched to alternate carriers.24 Presently, there is more than one alternative carrier available to Applicant's customers, and those customers who have not switched to another local carrier should easily be able to obtain alternate local service. Also, as discussed below, a default carrier has been designated to serve any of the Applicant's remaining customers who have not selected another carrier. We find Applicant meets the Commission's criteria for discontinuance of a carrier's service; therefore, we grant Applicant's request.
18 Emphasis in the original.
19 SureWest Telephone lists the associated benefits of a CPCN as: (1) the ability to directly access North American Numbering Plan resources; (2) the ability to charge local end office switching charges (despite the fact that no local end office switching will occur); and (3) the ability to enter into Interconnection Agreements with Local Exchange Carriers.
20 SureWest Telephone's Protest to Comcast Application to Discontinue Services at p. 3 (December 28, 2007).
21 Reply of Comcast Phone of California, LLC to SureWest Telephone Protest at p. 4 (January 28, 2008).
22 See In the Matter of Time Warner Cable Request for Declaratory Ruling that Competitive Local Exchange Carriers May Obtain Interconnection Under Section 251 of the Communications Act of 1934, as Amended, to Provide Wholesale Telecommunications Services to VoIP Providers, Memorandum Opinion and Order, Federal Communications Commission WC-Docket No.06-55 (March 1, 2007).
23 Applicant had approximately 178 Lifeline customers when it filed its application in November 2007. As of February 3, 2008, Applicant had 122 Lifeline customers remaining on its circuit-switched service.
24 This is over 67% of its originally affected customers. As of February 25, 2008, Applicant had 91 Lifeline customers remaining on its circuit-switched service. February 25, 2008 Progress Report.
