2. Procedural Background

On July 12, 2007, CALTEL filed its petition pursuant to Pub. Util. Code § 1708.5 to institute a rulemaking on whether the Commission should adopt, amend, or repeal regulations governing the retirement by incumbent local exchange carriers of copper loops and related facilities used to provide telecommunications services. Section 1708.5 authorizes "interested persons to petition the commission to adopt, amend, or repeal a regulation." Pursuant to § 1708.5, the Commission considers the petition and, within six months, either denies the petition or institutes a proceeding to adopt, repeal or amend the regulation.

Several parties filed responses to the petition on August 13, 2007, and filed replies on August 22, 2007. Parties indicating support for the petition are the Commission's Division of Ratepayer Advocates (DRA),⁴ The Utility Reform Network (TURN), and the United States Department of Defense/All Other Federal Executive Agencies (DOD/FEA). Parties in opposition are AT&T/Pacific Bell Telephone Company (AT&T), Verizon California Inc. (Verizon), SureWest Telephone Company (SureWest), and a group of small incumbent local exchange carriers (Small LECs). We describe the parties' positions below.

By ruling dated September 14, 2007, the assigned Administrative Law Judge (ALJ) sought additional information about copper loop retirements. The parties responded on October 4, 2007. The ALJ held a Prehearing Conference on October 5, 2007, during which time she sought additional factual information and gave the parties an opportunity to respond to the October 4, 2007 responses. The parties filed responsive information and argument October 16, 2007 and replies on October 19, 2007.

We have reviewed parties' comments and responses noted above and take them into account in preparing this order. We have considered the merits of arguments both in favor and against the petition. We provide further procedural direction in the scoping and scheduling section of this order.

⁴ DRA filed in support of the petition on October 16, 2007. The other referenced parties filed in support or opposition during the initial comment round in August 2007.