2. Description of Applicants

Star and three of its operating subsidiaries are presently certificated to provide telecommunications services in California. Star, a Delaware corporation, was authorized to provide telecommunications services in California as a facilities-based carrier of inter-Local Access and Transport Area (LATA) and intra-LATA1 telecommunications services pursuant to Decision (D.) 97-09-074. Star operates in California under U-5854-C. Star's three subsidiaries involved in this merger transaction are PT-1 Communications (U-5717-C) (formerly Phone Time), AST (U-5440-C), and PLDI (U-6196-C). These three subsidiaries were certificated to operate in California pursuant to D.96-12-044, D.95-01-033, and D.99-06-097 respectively. PT-1 is a provider of prepaid calling cards, while AST and PLDI both provide switch-based and resold domestic and international long distance services.

World Access, the parent corporation in the merger transaction, is a holding company for a group of diversified telecommunications service providers. Its numerous operating subsidiaries provide domestic and international long distance voice, data and internet transport services on both a wholesale and retail basis. World Access is a Delaware corporation publicly traded on the NASDAQ Exchange. World Access does not currently provide any services subject to Commission jurisdiction.

1 California is divided into 10 LATAs of various sizes, each containing numerous local telephone exchanges. "InterLATA" describes services, revenues, and functions that relate to telecommunications originating in one LATA and terminating in another. "IntraLATA" describes services, revenues, and functions that relate to telecommunications originating and terminating within a single LATA.

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