II. CONCLUSION

GTE has not established legal error in D.00-05-023 concerning our public interest review of AT&T's acquisition of MediaOne Telecom or our decision on AT&T's indirect, minority interest in TWT- California. Rehearing is, therefore, denied. In D.00-05-023, we found local exchange and exchange access telephone service will be more competitive as a result of AT&T's acquisition of MediaOne Telecom of California. That finding, uncontested, sufficiently supports our approval of the merger. However, the Commission will remain alert to exercise our proper authorities should the future effects of the AT&T/Media One merger prove detrimental to California's telecommunications customers.

IT IS THEREFORE ORDERED that:

1. D.00-05-023 shall be modified to:

a) Delete on page 26, the next to last paragraph which reads:

"[W]e have no authority to address a change in control of broadband, cable or Internet services. The Cable Act prohibits the regulation of a cable system as a common carrier or utility by reason of providing any cable services. [Citation to 47 U.S.C. § 541(c).] Further, no part of the Cable Act authorizes us to dictate who the providers of Internet services should be over the cable systems."

2. Delete on page 27, the first sentence of the second paragraph which reads:

"We have previously considered and concluded on several occasions that we have no jurisdiction to address or condition the use of broadband, cable, and Internet access."

3. Application 99-08-013 is hereby closed.

This decision is effective today.

Dated September 7, 2000, at San Francisco, California.

LORETTA M. LYNCH

President

HENRY M. DUQUE

JOSIAH L. NEEPER

RICHARD A. BILAS

CARL W. WOOD

Commissioners