3. Discussion

In requesting dismissal of this complaint case, the parties ask that the Commission set forth requirements that it expects telecommunications carriers to follow if they anticipate going out of business or withdrawing from the provision of a service. Those requirements would derive from Pub. Util. Code § 451, which requires that public utilities maintain just and reasonable service, and General Order 96-A, which provides that no public utility shall withdraw from service without first having obtained approval of the Commission.

XO and NorthPoint suggest that a telecommunications carrier intending to cease operations or provision of a service should be required to take at least the following steps:

· Notify the Commission's Telecommunication Division and request approval of the contemplated withdrawal.

· Provide all affected customers and carriers at least 30 days' advance notice in writing of the proposed termination of service.

· Provide a blanket letter of authorization and all other necessary documentation to other carriers to facilitate the transfer of circuits necessary to fulfill a customer's request for continuation of service with a succeeding carrier.

In addition, XO and NorthPoint urge that any other carrier that has been involved in the provision of service to customers of the exiting carrier be required to:

· Cooperate in sharing information and creating procedures adequate for transfer of a customer from the exiting carrier to a succeeding carrier with minimum disruption of service to the customer.

· Effect a direct one-step ("lift and lay") transfer of service that prevents end user loops or other facilities previously used by the exiting carrier from returning to the "pool" of unused facilities and equipment, ensuring that the facilities will be available for use by succeeding carriers.

In comments in response to the joint motion, The Utility Reform Network (TURN) observes that an insolvent carrier is loathe to admit that it is on the verge of shutting down and is unwilling to take steps to transfer its customers until the last possible moment, when it is too late to avoid disruption.

TURN suggests that notice of imminent shutdown by a carrier should be triggered by an indicator of severe economic distress, i.e., insolvency, filing of bankruptcy, or actual acknowledgement that the carrier will cease operations within 45 days. When a triggering event occurs, a carrier would be required to give notice that it is economically distressed and may soon be forced to cease operation.

TURN also urges that the Commission consider establishing an emergency customer transfer fund that would help pay to keep networks live while transferring customers to avoid interruption of service. TURN also urges that the Commission consider participating in future bankruptcy cases as a representative of the public interest of consumers.

The California ISP Association also submitted comments, urging the Commission to adopt the proposed stipulated terms and conditions addressing continuity of service for customers of advanced services.