III. Representations of Applicant

Applicant stated, in its application as originally filed, that its local exchange operations in 49 of its 54 rate centers (selected rate centers) were unprofitable. Therefore, Applicant requested authorization to withdraw from providing local exchange service in the selected rate centers. Applicant intended to continue providing service in its five other rate centers.

Applicant provided written notice to its affected customers on April 3, 2001, at the same time it filed an advice letter to discontinue providing interexchange service.¹ The notice stated that effective May 15, 2001, Applicant would no longer be providing local exchange service in the customers' area. Applicant enclosed a list of other providers in the area and offered its service representatives' help to assist in the transition. On May 15, 2001, after this application was filed, Applicant provided a second written notice. The notice was identical to the first except that it changed the date of discontinuance to June 16, 2001 and provided a different list of potential providers.

As of the filing date of this application, May 9, 2001, 427 of Applicant's 651 affected customers had pending orders with other carriers. By July 16, 2001, only nine customers remained in the selected rate centers. Of these, three were scheduled to start service with a new carrier on July 17, 2001. Three other remaining customers had initial difficulties with their new carriers. Applicant continued service to these three customers until the problems were resolved. Applicant said that the three remaining customers, after receiving two written notices and numerous phone calls, had their service suspended (except 911 and 611) for part of a day, on or about June 28, 2001. Upon the temporary suspension, Applicant notified these customers that once they called back with a service order from another carrier, it would reinstate full service until their chosen carrier could install their service. These three customers then placed orders with other carriers, and Applicant restored service until their new carriers could provide service.

Applicant, the only local exchange service provider to the Block at Orange (Block), a continuous multi-tenant property, terminated its service contract with the property owner. On May 25, 2001, all of Applicant's 251 customers at the Block were transitioned to Pacific Bell.

On August 28, 2001, Applicant modified its application. By the modification, Applicant sought to discontinue local exchange service to the 49 customers in its five remaining rate centers as well. However, Applicant proposed to continue offering service to large business customers who order service in at least 10 rate centers, and who make at least a two year service commitment (multi-location customers).

On August 31, 2001, Applicant mailed a notice to its remaining customers, except for multi-location customers. The notice indicated that it would discontinue service effective September 30, 2001. It also included the following statement:

"Pursuant to an application on file with the California Public Utilities Commission, this letter is to notify you that due to certain economic and market conditions, effective September 30, 2001, FirstWorld will no longer be providing services in your area, including local exchange and/or toll services. On August 28, 2001 FirstWorld filed an application requesting approval from the California Public Utilities Commission to discontinue providing basic services in your area. FirstWorld's application is still pending at the Commission."

After the filing of Applicant's first modification, its only remaining customer, a multi-location customer, notified Applicant that it was going out of business and would terminate its service on October 31, 2001. The customer asked to be released from its service agreement. Applicant agreed to do so. On October 3, 2001, Applicant modified its application a second time requesting authority to discontinue offering local exchange service, and to relinquish its CPCN. In sum, Applicant wishes to completely withdraw from providing local exchange service, and to relinquish its authority to do so.