Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Jacqueline A. Reed is the assigned ALJ in this proceeding.

Findings of Fact

1. Applicant is authorized by D.99-03-019 to provide facilities-based and resold local exchange and interexchange telecommunications services in California.

2. Applicant requests authority to discontinue circuit-switched local exchange and interexchange telecommunication services to approximately 12,609 customers, and to cancel its residential circuit-switched voice tariff upon the discontinuance.

3. The Application to discontinue service in 65 northern California cities is unopposed, but SureWest contends that Applicant should be required to relinquish its CPCN as a condition for the grant of authority to discontinue circuit-switched telecommunications service

4. On December 5, 2007, AT&T California filed a request to be designated the default carrier for Applicant's customers. No other carrier has volunteered to serve Applicant's customers, and no party has opposed AT&T California's request.

5. AT&T California is a COLR in the area where Applicant's affected customers are located, offers similar services as those which Applicant seeks to discontinue, and has facilities to serve Applicant's remaining customers.

6. On February 8, 2008, the ALJ ruled that AT&T California is designated the default carrier to serve Applicant's remaining customers in its franchise territory who have not selected another carrier.

7. Applicant's revised exit plan is adequate and timely filed.

8. Applicant has satisfied the regulatory and industry notification requirements.

9. Based on SureWest's contentions alone, we cannot find that Applicant will cease to be a telecommunications carrier when it discontinues offering services through CDP, and we deny SureWest's request to revoke Applicant's CPCN as a condition of approving this application.

10. The regulatory status of Applicant's VoIP affiliate is unclear.

11. Applicant and AT&T California entered into an agreement regarding the customer discontinuance procedure they will follow.

12. A "soft dial tone" will minimize the impact of the interruption of local service that this type of discontinuance requires.

13. In a facilities-based situation, as present here, it is technically infeasible to force migrate customers to the default carrier.

14. Applicant has satisfied the requirements concerning the contents and timing of customer notification letters.

15. Applicant has met the mass migration process requirements.

16. Applicant has satisfied the Commission's requirements for the discontinuance of service.

17. Approximately 8,734 of Applicant's affected customers have voluntarily switched to other service providers.

18. None of Applicant's customers are in jeopardy of losing access to a local service provider. As the default carrier, AT&T California will serve Applicant's remaining customers that choose it as their carrier.

19. Applicant is in good standing with the Commission regarding its reporting and payment of surcharges and regulatory fees.

Conclusions of Law

1. This is a ratesetting proceeding.

2. There is no need for hearings.

3. AT&T California should be designated the default carrier for Applicant's remaining customers in its franchise territory.

4. The ALJ Ruling of February 8, 2007, designating AT&T California as the default carrier for Applicant's remaining customers in its franchise territory should be affirmed.

5. AT&T California's tariffed credit and collection procedures should apply to any of Applicant's customers transferred to it as the default carrier. AT&T California's other tariff provisions should apply when they do not conflict with D.06-10-021 or FCC requirements.

6. AT&T California should be required to file all quarterly reports required under GO 133-B for failure to meet service quality measures due to a mass migration 30 days after the quarter in which the migrations are completed, but any failure to meet service quality measures due to a mass migration should not be subject to penalties.

7. OSS performance measurement reports should be filed when due, but AT&T California should be allowed to request relief from incentive payments if the mass migration process results in a failure to meet required measurements.

8. The third-party verification requirements of Pub. Util. Code § 2889.5 should not apply to Applicant's customers transferred to AT&T California.

9. Applicant should cancel its residential circuit-switched voice tariff upon the discontinuance of service because it will no longer be providing circuit-switched voice telecommunications services in the State of California.

10. Because timing is essential to the mass migration of telephone customers, this order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The application of Comcast Phone of California, LLC (Comcast Phone-CA or Applicant) for authority to discontinue the provision of circuit-switched telecommunications services in California on April 15, 2008, and to cancel its residential circuit-switched voice tariff upon the discontinuance of service is granted.

2. Pacific Bell Telephone Company, doing business as AT&T California, is designated as default carrier for Applicant's remaining customers in its franchise territory.

3. AT&T California's tariffed credit and collection procedures shall apply to any of Applicant's customers transferred to it as the default carrier on or after March 15, 2008. AT&T California's other tariff provisions shall apply when they do not conflict with Decision 06-10-021 or Federal Communications Commission requirements.

4. AT&T California shall file all quarterly General Order 133-B reports addressing failure to meet service quality measures due to migrating Applicant's customers 30 days after the quarter in which the migration is completed. Failure to meet service quality measures due to migrating Applicant's customers shall not be subject to penalties.

5. AT&T California shall file Operations Support Systems performance measurement reports when due. AT&T California may request relief from incentive payments if the mass migration process for Applicant's customers results in a failure to meet applicable performance measures.

6. The third-party verification requirements of Pub. Util. Code § 2889.5 shall not apply when Applicant's customers are transferred to AT&T California.

7. After April 15, 2008, Applicant shall begin to downgrade the service of its remaining customers to "soft dial tone." The downgrade to "soft dial tone" shall be done in two installments with customers receiving notice of the actual date of downgrade. Under the two-installment process, Applicant shall place half of its customers on soft dial tone on one day, and the remaining half on soft dial tone one week later. Applicant may discontinue service to a customer placed on soft dial tone after 21 days, provided that it notifies the Communications Division no less than five days after the discontinuance.

8. Comcast Phone-CA shall implement the agreement concerning customer discontinuance procedures set forth in the March 4, 2008 letter attached hereto as Appendix A.

9. Applicant shall file an advice letter, effective on one-day notice, cancelling its residential circuit-switched voice tariff on file with the Commission, as soon as its circuit-switched telecommunications services are discontinued.

10. Application 07-11-014 is closed.

This order is effective today.

Dated April 10, 2008, at San Francisco, California.

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