ALJ/DOT/jgo MAILED 4/5/2002

Decision 02-04-021 April 4, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

VarTec Telecom, Inc. (U 5384-C), VarTec Telecom Holding Company, Teleglobe Holdings (U.S.) Corporation, Excel Telecommunications, Inc. (U 5196-C), eMeritus Communications, Inc. (U 5526-C), and Long Distance Wholesale Club, Inc. (U 5653-C), for Authority for Transfers of Control.

Application 01-10-026 (Filed October 22, 2001)

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OPINION GRANTING AUTHORITY FOR TRANSFER OF CONTROL

1. Summary

Through this application, VarTec Telecom, Inc. (VarTec), VarTec Telecom Holding Company (VarTec Holding), Teleglobe Holdings Corporation (Teleglobe Holdings), Excel Telecommunications, Inc. (Excel), eMeritus Communications, Inc. (eMeritus), and Long Distance Wholesale Club, Inc. (LDWC) (jointly Applicants) seek approval under Pub. Util. Code § 854 of a stock purchase agreement in which VarTec, through its wholly owned subsidiary VarTec Holding, will acquire control of Excel, eMeritus, and LDWC.

The Commission's Consumer Services Division (CSD) filed a protest to the application requesting consolidation of this matter with VarTec's currently pending request for a certificate of public convenience and necessity (CPCN) to offer local exchange service in Application (A.) 99-04-011 (CPCN application). Subsequently, CSD and VarTec filed a motion requesting adoption of a settlement between CSD and VarTec of disputed issues in the CPCN application and requesting withdrawal of CSD's protest of this application. Given our action today in a companion order to approve the settlement in the CPCN application, we grant the joint motion for withdrawal of CSD's protest. The application is granted.