ALJ/JPO/hkr Mailed 3/22/2002

Decision 02-03-050 March 21, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of McLeodUSA Telecommunications Services, Inc. (U-5712-C) and Forstmann Little & Co. Equity Partnership-VII, L. P.; Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VIII, L. P.; Forstmann Little & Co. Equity Partnership-V, L. P.; Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VI, L. P.; and Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VII, L. P. for Expedited, Ex Parte Approval of the Indirect Transfer of Control of McLeodUSA Telecommunications Services, Inc.

Application 02-02-017 (Filed February 15, 2002)

OPINION

Summary

This decision grants the joint application of McLeodUSA Telecommunications Services, Inc. (U-5712-C) (McLeod) and Forstmann Little & Co. Equity Partnership-V, L. P. (FL-V); Forstmann Little & Co. Equity Partnership-VII, L. P. (FL-VII); Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VI, L. P. (FLDE-VI); Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VII, L. P. (FLDE-VII); Forstmann Little & Co. Subordinated Debt & Equity Management Buyout Partnership-VIII, L. P. (FLDE-VIII); for approval of the indirect transfer of control of McLeod to FL-V, FL-VII, FLDE-VI, FLDE-VII, and FLDE-VIII.