2. Background

On March 28, 2001, XO filed a motion for an emergency order to prevent the imminent shutdown of NorthPoint, a supplier of Digital Subscriber Line (DSL) services. NorthPoint in January 2001 had filed for bankruptcy protection,

and on March 22, 2001, it announced that it would cease operations because it had not obtained needed financing. Meanwhile, AT&T California, Inc., won Bankruptcy Court approval to purchase NorthPoint's DSL assets. AT&T's purchase, however, did not include the service agreements under which NorthPoint provided DSL connectivity to Internet Service Providers (ISPs) like XO.

Following a telephone conference call with interested parties on March 29, 2001, and a hearing on March 30, 2001, Commissioner Carl Wood on March 30 issued a ruling on complainant's motion for emergency relief. The ruling noted that 40,000 customers of DSL services in California were likely to suffer irreparable harm if NorthPoint discontinued service without providing time for customers to make alternative arrangements for their DSL connections. In the ruling, and at hearing, Commissioner Wood enjoined NorthPoint from discontinuing DSL service to California customers without notice and established procedures intended to minimize disruption of service. On April 3, 2001, the Commission confirmed Commissioner Wood's ruling in Decision (D.) 01-04-008.