2. Description of Applicants

a. The VarTec Companies

VarTec, a Texas corporation, is currently authorized to resell interLATA and intraLATA¹ telecommunications services in California.² In addition, VarTec is authorized to provide interexchange services in 48 other states and competitive local exchange services in 7 states. VarTec Holding is a Delaware corporation that is a wholly owned subsidiary of VarTec and does not hold any authorization to provide service in California.

b. The Teleglobe Companies

Teleglobe Holdings is a wholly owned subsidiary of Teleglobe Inc., a Canadian corporation and subsidiary of BCE Inc. Teleglobe Inc. operates the Teleglobe Communications group and Excel Communications group. Teleglobe Holdings owns all of the authorized capital stock of Excel Communications Inc. which controls 100% of the equity of Excel, eMeritus, and LDWC.

Excel is a Texas corporation authorized to provide long distance service in California.³ eMeritus, formerly operating under the names of Teleglobe Business Solutions, Inc. and Telco Holdings, Inc. d/b/a Dial & Save, is a Texas corporation authorized to provide long distance and local exchange service in California.⁴ LDWC provides dial-around (1010-XXX) interexchange service in California.⁵

¹ California is divided into 10 Local Access and Transport Areas (LATAs) of various sizes, each containing numerous local telephone exchanges. "InterLATA" describes services, revenues, and functions that relate to telecommunications originating in one LATA and terminating in another. "IntraLATA" describes services, revenues, and functions that relate to telecommunications originating and terminating within a single LATA. ² See Decision (D.) 94-05-053 and D.95-01-011. ³ See D.90-02-028, D.97-05-023. In addition, Excel received authorization to provide local exchange service in California in D.97-08-031, but the certification was not exercised within the first 12 months and has lapsed. ⁴ See D.95-10-009 and D.96-02-072. ⁵ See D.96-08-019.