ALJ/JLG/niz Mailed 12/16/2005

Decision 05-12-032 December 15, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Joint Application of Comtel Telcom Assets LP and VarTec Telecom, Inc. (U-5384-C and U-4338-C), Excel Telecommunications, Inc., (U-5196-C and U-4345-C) and VarTec Solutions, Inc. (U-5526-C) for Approval of a Transfer of Assets

Application 05-09-026 (Filed September 14, 2005)

OPINION AUTHORIZING TRANSFER OF ASSETS

Summary

This decision grants the joint application of Comtel Telcom Assets LP (Comtel) and VarTec Telecom, Inc. (VarTec), Excel Telecommunications, Inc. (Excel)¹ and VarTec Solutions, Inc. (VarTec Solutions) (the VarTec Companies) for approval to transfer to Comtel the certificates of public convenience and necessity (CPCN) to provide services currently held by the VarTec Companies and the related assets and customers of the VarTec Companies. The transfer is part of an asset purchase agreement approved by the U. S. Bankruptcy Court for the Northern District of Texas.

¹ We approved the transfer of control of Excel to VarTec in Decision (D.) 02-04-021.