2. Background

In prior decisions, we authorized the provision of competitive interexchange services by carriers meeting specified criteria. In addition, we authorized the provision of competitive local exchange service, by carriers meeting specified criteria, within the service territories of Pacific Bell Telephone Company (Pacific), Verizon California Inc. (Verizon), SureWest Telephone (SureWest), and Citizens Telecommunications Company of California, Inc. dba Frontier Communications of California (CTC).¹

Applicant, a California corporation, seeks authority to provide facilities-based local exchange and interexchange services to and within five of the Channel Islands, specifically San Miguel, Santa Rosa, Santa Barbara, Anacapa, and Santa Cruz Islands, which do not currently have phone service. Applicant's principal place of business is located at 3802 Rosecrans Street, San Diego, CA 92110.

According to the application, the largest of the Channel Islands, Santa Catalina Island is served by Pacific, and two of the remaining islands, San Nicolas and San Clemente Islands, are controlled by the United States Navy. Four of the five remaining Channel Islands, including San Miguel, Santa Rosa, Santa Barbara, and Anacapa Islands, along with a portion of Santa Cruz Island, comprise the Channel Islands National Park. The remaining portion of Santa Cruz Island is owned by the Nature Conservancy.

Applicant states that San Miguel, Santa Rosa, Santa Barbara, Anacapa, and Santa Cruz Islands are not served by any local exchange or interexchange carrier. Although some analog cellular telephone service is available on these islands, this service is being discontinued. As a result, these five islands will soon have no public telephone service to serve National Park Service employees, ranch employees, and research personnel who live on the islands or the 30,000 individuals who visit the national park each year.

Applicant has applied for a Rural Telecommunications Infrastructure Grant from the Commission in order to obtain funding for the construction of its telecommunications facilities and for any necessary environmental (CEQA) review. However, Applicant cannot qualify for a Rural Telecommunications Infrastructure Grant until it holds a CPCN in this state, and Applicant cannot obtain a full facilities-based CPCN without undergoing CEQA review for its proposed facilities or obtaining a staff determination that the project is exempt from CEQA pursuant to the expedited process described in D.06-04-030. Although Applicant claims that the facilities proposed to be constructed are exempt from CEQA, the construction of facilities in this environmentally-sensitive setting may require CEQA review. Applicant has, to date, neither completed CEQA review of its proposed project nor obtained a staff determination that the project is exempt from CEQA.

However, the issuance of a limited facilities-based CPCN to Applicant would enable Applicant to commence its operations as a telecommunications provider in this state. Although a limited facilities-based CPCN would not authorize Applicant to engage in construction, except for very minor activities such as the placement of switches in or on existing structures, Applicant may later reapply for a full facilities-based CPCN and authorization to construct facilities, after undergoing any required CEQA review.

¹ SureWest was formerly known as Roseville Telephone Company.