II. Background

In prior decisions, we authorized the provision of competitive local exchange service within the service territories of Pacific Bell Telephone Company (Pacific), Verizon California Inc. (Verizon), SureWest Telephone (SureWest),² and Citizens Telecommunications Company of California, Inc. (CTC).

Applicant, a Delaware corporation, requests authority to operate as a limited facilities-based and resale provider of local exchange services throughout California but initially within Pacific's and Verizon's service territories.

Applicant's principal place of business is located in Reston, Virginia.

Applicant is a wholly owned subsidiary of XO Communications, Inc., a publicly traded corporation in which Carl C. Icahn holds a majority interest. XO California, Inc. (U5553) is a certificated carrier and wholly owned subsidiary of Applicant.

Applicant seeks authority to provide telecommunications transport services, as a facilities-based and resale competitive local exchange and interexchange carrier, to business customers and other carriers in the State of California. Applicant plans to initially offer dedicated point-to-point transport and data services to enterprise customers and other common carriers. At a later date, Applicant may expand its service offerings to include a broader range of products and services. Accordingly, Applicant is requesting a CPCN to provide a full range of local exchange and interexchange services.

Although Applicant intends ultimately to operate throughout the state, it will initially serve business customers largely, if not entirely, located in the service territories of Pacific and Verizon. Accordingly, it requests permission to concur in these carriers' service area maps on file with the Commission.

Applicant's equipment will support both time division multiplexing and Internet protocol services.

² SureWest was previously known as Roseville Telephone Company.