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ALJ/MAB/eap Date of Issuance 12/10/2007

Decision 07-12-020 December 6, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Review Policies Concerning Intrastate Carrier Access Charges.

Rulemaking 03-08-018
(Filed August 21, 2003)

FINAL OPINION MODIFYING INTRASTATE ACCESS CHARGES

I. Summary

This decision reduces intrastate access charges1 by requiring all mid-size incumbent local exchange carriers to remove the non-cost-based element or its equivalent, effective January 1, 2009. With this effective date, no surcharges will be necessary for the mid-size incumbent local exchange carriers.

The surcharges authorized by Decision (D.) 06-04-071 for Pacific Bell Telephone Company, now doing business as AT&T (AT&T), and Verizon California Inc. (Verizon) shall expire on the date the rate freeze on basic residential telephone service is lifted, currently scheduled for January 1, 2009.

Competitive local exchange carriers will reduce their intrastate access charges to $0.025 per minute effective April 1, 2008, and then to the higher of AT&T's or Verizon's intrastate access charges, plus 10%, effective January 1, 2009.

Small local exchange carriers that do not opt in to the Uniform Regulatory Framework shall phase out non-cost-based elements over their next two rate case cycles.

This proceeding is closed.

1 The term "access charges" refers to charges imposed by local exchange carriers for use of the local network by interexchange or long distance carriers, which use this switched access to originate and terminate long distance calls to the vast majority of California residential and business customers. For purposes of this decision, intrastate access charges are defined as the following switched access rate elements: end office switching, which may include a set up fee, tandem transport and switching, and information surcharge.

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