VII. Public Interest Considerations

Applicants believe the proposed transaction will serve the public interest in promoting competition among the telecommunications carriers in California. According to Applicants, the acquisition of New Edge by EarthLink will result in significant benefits for California consumers, and will advance important state public policy goals. Most importantly, it will promote much-needed competition in the broadband marketplace in California, a longstanding policy goal of the Commission.1

Applicants state that the proposed transaction will not have any negative effect on the California Customers of New Edge, to whom it will be essentially transparent. After consummation of the proposed transaction, New Edge will continue to provide the same services to those customers at the same pricing, terms and conditions as at present. Similarly, the proposed transaction will not require any revisions to New Edge's tariffs on file with the Commission. The operations of New Edge will continue to be supervised by the same management, technical and customer service supervisors as at present. All services will continue to be provided to New Edge's customers without interruption; the proposed transaction will not result in discontinuance of the service of any customer in California.

Further, Applicants state that because it is a stock transaction proposed at the holding company level, the transfer of control of New Edge will not result in a change of carrier for any of New Edge's customers in California. There will be no negative impact on service to California customers. Nonetheless, Applicants will provide notice to New Edge's California customers, consistent with the requirements of D.97-06-090 and D.98-07-038.

1 See Broadband Deployment in California, D.05-05-013, issued May 5, 2005.

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