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ALJ/TOM/sid Mailed 5/29/2007

Decision 07-05-040 May 24, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of Application of Yak Communications (America) Inc. (U-6578-C), Yaktastic, Inc., and Blackbird Corporation for Approval Nunc Pro Tunc of a Transfer of Control of Yak Communications (America) Inc.

Application 07-03-002

(Filed March 1, 2007)

OPINION GRANTING TRANSFER OF CONTROL

AND FINING APPLICANTS $10,000 FOR THEIR SECOND VIOLATION OF SECTION 854(a) OF THE PUBLIC UTILITIES CODE

1. Summary

This decision grants the unopposed application1 of Yak Communications (America) Inc. (Yak America), Yaktastic Inc. (Yaktastic), and Blackbird Corporation (Blackbird) (together, Applicants) for a transfer of control of Yak America to Blackbird effective today, on a prospective basis only. We deny Applicants' request for retroactive approval of this transaction, which was previously consummated without prior Commission approval, in violation of Section 854(a).2

This decision also requires Applicants to pay a fine of $10,000 based on their failure to obtain Commission authorization for this transfer of control, as required by Section 854(a), before the closing of the sale of Yak America to Blackbird. We note that Yak America, Yaktastic, and Yak Communications, Inc. (Yak) recently committed another violation of Section 854(a) by transferring Yak America to Yaktastic without prior Commission authorization.

1 The application was filed on March 1, 2007. In Resolution ALJ 176-3189, dated March 15, 2007, we preliminarily categorized this proceeding as ratesetting and preliminarily determined that no hearings are necessary. No protests to the application were filed.

2 All statutory references are to the Public Utilities Code, unless otherwise stated.

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