RECITALS

Whereas, in I.00-01-018¹⁴ the Commission instituted an investigation into whether inter alia the Respondents jointly and/or severally were unlawfully switching California consumers' presubscribed toll and/or long - distance telephone provider to another carrier;

Whereas, the Parties mutually desire to reach a full and final settlement of
I.00-01-018 and thus avoid the time, expense, uncertainty, and inconvenience of an evidentiary hearing;

WHEREAS the Companies since May 1, 1998, have voluntarily ceased soliciting any new California customers as a Telephone Corporation whether for themselves or another business, as the Companies have represented to the Commission¹⁵;

WHEREAS, Gershenson represents that he owns, directs, or otherwise controls only the following businesses that hold a CPCN: (i) Long Distance Charges, Inc.
(U-5561); (ii) Least Cost Routing, Inc. (U-4206-C); (iii) National Telecommunications, Inc. (ESP1176); and (iv) Internet Telephone Company, Inc., (U- 6107-C). OAN Services, Inc., is the Companies' sole and exclusive Billing Agent for customer billing and collections in California;

Whereas, the Parties have signed a letter dated April 19, 2000, memorializing their intent to settle; and

Whereas, the Parties agree that this Settlement does not constitute any admission by any of the Respondents of any fact and/or law alleged in I.00-01-018.

¹⁴ 2000 Cal. PUC LEXIS 81 (filed January 20, 2000).