ALJ/JLG/hkr Mailed 11/30/2001

Decision 01-11-045 November 29, 2001

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of GST Telecom California, Inc. (U-5469-C) and GST Pacific Lightwave, Inc. (U-5371-U) for Authority to Withdraw the Provision of Telecommunication Services in California.

Application 01-05-042 (Filed May 18, 2001)

OPINION GRANTING GST TELECOM CALIFORNIA, INC.'S AND GST PACIFIC LIGHTWAVE, INC.'S APPLICATION TO WITHDRAW SERVICES

I. Summary

This decision authorizes GST Telecom California, Inc. and GST Pacific Lightwave, Inc. (GST) to withdraw from providing telecommunications services in California and approves GST's transfer of its Mare Island customers to Pacific Bell Telephone Company (Pacific).¹ At GST's request, we also revoke its operating authority. We find that GST has met the customer notice requirements necessary for withdrawing from providing local exchange service and that the third party verification requirements of Pub. Util. Code § 2889.5 do not apply to this customer base transfer.

In light of GST's bankruptcy, we need to act promptly to ensure GST's Mare Island business customers do not suffer service interruptions. GST's switching arrangements have expired. At the same time, we have had to consider the impact of GST's attempt to sell its customers and facilities to another carrier on its later request that Pacific complete necessary cross connections in order to assume that customer base. We have had to allow time for Pacific to complete those cross connections. We recognize that GST and Pacific have cooperated to ensure that Pacific is prepared to assume GST's Mare Island customers without a break in service. We will have GST file a compliance report that will provide the date when the successful transfer of its customers to Pacific has been completed.