Findings of Fact

1. Circumstances in telecommunications markets and regulation have changed in ways that justify reviewing the "NIC" or "TIC" portion of SBC and Verizon access charges.

2. The issue of whether reducing access charges requires an offsetting increase in other LEC rates is yet unresolved and is a threshold issue for consideration in this proceeding because of its implications for customers of other LEC services.

Conclusions of Law

1. Pursuant to Public Utilities Code Section 1708.5, the Commission has authority to consider a petition requesting the initiation of a rulemaking to consider access charge reform.

2. To the extent that the petition requests the initiation of a rulemaking to consider access charge reform, it should be granted.

3. The Commission should initiate a rulemaking to review intrastate access charges for SBC and Verizon as set forth herein.

ORDER

IT IS ORDERED that:

1. The petition of AT&T Communications of California, Inc. is granted to the extent set forth herein.

2. Pacific Bell Telephone Company (SBC) and Verizon California shall and interested parties may file comments on Phase I issues as set forth herein.

3. The Executive Director shall serve a copy of this order on all telecommunications companies subject to the Commission's jurisdiction and on all parties to R.93-04-003 et al.

4. SBC, Verizon California and all other jurisdictional local telephone companies are respondents to this proceeding.

5. The Commission hereby opens a rulemaking for the purpose of considering access charges, as set forth herein.

6. Petition 01-10-008 is closed.

This order is effective today.

Dated August 21, 2003, at San Francisco, California.

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