19. Assignment of Proceeding
Timothy Alan Simon is the assigned Commissioner and Jacqueline A. Reed is the assigned ALJ in this proceeding.
1. Applicant is authorized by D.04-03-032 to provide limited facilities-based and resold local exchange and interexchange telecommunications services.
2. Applicant requests authority to discontinue local exchange and intrastate interexchange telecommunications services to approximately 5,265 customers, and to cancel its residential circuit-switched voice tariff upon the discontinuance of service because it will no longer be providing state regulated voice telecommunications services in the State of California.
3. The Application is unopposed.
4. On July 30, 2007, AT&T California filed a request to be designated the default carrier for Applicant's customers that are located in those areas where it provides service. No other carrier has volunteered to serve Applicant's customers, and no party has opposed AT&T California's request.
5. AT&T California is a carrier of last resort in some areas where Applicant's affected customers are located, offers similar services as those of Applicant, and has facilities to serve Applicant's remaining customers in those areas.
6. Verizon is a carrier of last resort in some areas where Applicant's affected customers are located, offers similar services as those of Applicant, and has facilities to serve Applicant's remaining customers in those areas.
7. TWCIS filed a request for default carrier designation in Playa Vista for TWC Digital Phone because Verizon has no facilities in the development and no other carrier, certificated or otherwise, served the area.
8. On November 28, 2007, the ALJ ruled that AT&T California, Verizon, and TWC Digital Phone are designated the default carriers to serve Applicant's remaining customers, who have not selected another carrier in the respective areas that they serve and have facilities.
9. TWC Digital Phone's regulatory status is unclear at present.
10. On December 5, 2007, Race moved to intervene and requested designation as the default carrier for Lifeline and other circuit-switched customers in Playa Vista.
11. Race was granted a CPCN in D.08-01-009.
12. Race is now certificated and able to formally accept the migration of any Lifeline customers or other circuit-switched customers, currently served by TWCIS.
13. Race offers similar services to those which TWCIS seeks to discontinue through this application.
14. A "soft dial tone" will minimize the impact of the interruption of local service this type of discontinuance requires.
15. Applicant's revised exit plan is adequate and timely filed.
16. Applicant has satisfied the regulatory and industry notification requirements.
17. Applicant has satisfied the requirements concerning the contents and timing of customer notification letters.
18. Applicant has met the mass migration process requirements.
19. Applicant has satisfied the Commission's requirements for the discontinuance of service.
20. Applicant and AT&T California have reached an accord on the migration cost reimbursement issue.
21. Applicant and Verizon have reached an accord on the migration cost reimbursement issue.
22. Race did not address the issue of migration cost reimbursement.
23. In a facilities-based situation, as present here, it is technically infeasible to force migrate customers to the default carriers.
24. Because the arrangement agreed to by AT&T California and Verizon with TWCIS and approved herein does not involve forced migration, related extraordinary costs that default carriers might otherwise have are not present.
25. Approximately 39,439 of Applicant's affected customers have voluntarily switched to other service providers.
26. None of Applicant's customers are in jeopardy of losing access to a local service provider. As the default carriers, AT&T California, Verizon, and Race will serve Applicant's remaining customers that choose them as their carrier.
27. Applicant is in good standing with the Commission regarding its reporting and payment of surcharges and regulatory fees.
1. This is a ratesetting proceeding.
2. There is no need for hearings.
3. AT&T California and Verizon should be designated the default carrier for Applicant's remaining customers who are located in the areas that they have facilities.
4. Race should be designated default carrier in Playa Vista because it offers similar services to those TWCIS seeks to discontinue in this application, it has the facilities to serve the Playa Vista customers, the Guidelines require that the designated carrier be in compliance with Commission rules and regulations, and Verizon has no facilities to provide service in this neighborhood.
5. The ALJ Ruling of November 28, 2007, designating AT&T California, Verizon and TWC Digital Phone as default carriers for Applicant's remaining customers should be affirmed with respect to AT&T California and Verizon.
6. The designation of TWC Digital Phone as the default carrier in Playa Vista should be retracted because a certificated carrier is now available to serve TWCIS's remaining customers in Playa Vista.
7. "Soft dial tone" service should be maintained throughout TWCIS's service area for three weeks before service is fully discontinued.
8. TWCIS's agreements with AT&T California and Verizon on the process for transitioning TWCIS's remaining customers should be approved.
9. AT&T California's, Verizon's, and Race's tariffed and collection procedures should apply to any of Applicant's customers transitioned to any one as the default carrier. All three carriers' other tariff provisions should apply when they do not conflict with D.06-10-021 or FCC requirements.
10. AT&T California and Verizon should be required to file all quarterly reports required under GO 133-B for failure to meet service quality measures due to a mass migration 30 days after the quarter in which the migrations are completed, but any failure to meet service quality measures due to a mass migration should not be subject to penalties.
11. OSS performance measurement reports should be filed when due, but AT&T California should be allowed to request relief from incentive payments if the mass migration process results in a failure to meet required measurements.
12. The third-party verification requirements of Pub. Util. Code § 2889.5 should not apply to Applicant's customers transitioned to AT&T California, Verizon, and Race.
13. TWCIS should cancel its residential circuit-switched voice tariff upon the discontinuance of service because it will no longer be providing state regulated voice telecommunications services in the State of California.
14. Because timing is essential in the mass migration of customers, this order should be effective immediately.
IT IS ORDERED that:
1. The application of Time Warner Cable Information Services, LLC (Applicant) for authority to discontinue the provision of circuit-switched telecommunications services in California on March 28, 2008, and to cancel its residential circuit-switched voice tariff upon the discontinuance of service is granted.
2. Pacific Bell Telephone Company, doing business as AT&T California, and Verizon California Inc. (Verizon) are designated as default carriers for Applicant's remaining customers in those respective areas where AT&T California and Verizon provide service and have the necessary facilities.
3. Race Telecommunications, Inc. (Race) is designated the default carrier for Applicant's remaining customers in Playa Vista.
4. Applicant shall provide Time Warner Cable Digital Voice service at Lifeline rates to those existing Lifeline customers in Playa Vista who do not want to transfer to Race.
5. After February 20, 2008, TWCIS shall begin to downgrade the service of its remaining customers to "soft dial tone." The downgrade to "soft dial tone" shall be done on a rolling basis. TWCIS shall send out a notice, no less than five business days prior, specifying the exact date the service downgrade will occur. TWCIS may discontinue service to a customer placed on soft dial tone after 21 days, provided that it notifies the Communications Division no less than five business days prior to discontinuing the service.
6. Applicant and AT&T California shall implement the agreement concerning customer transition costs set forth in the January 17, 2008 letter attached hereto as Appendix A.
7. Applicant and Verizon shall implement the agreement concerning customer transition costs set forth in the February 7, 2008 letter attached hereto as Appendix B.
8. AT&T California's, Verizon's, and Race's tariffed credit and collection procedures shall apply to any of Applicant's customers transferred to AT&T California, Verizon, or Race, respectively, as the default carrier on or after February 21, 2008. AT&T California's, Verizon's, and Race's other tariff provisions shall apply when they do not conflict with Decision 06-10-021 or Federal Communications Commission requirements.
9. AT&T California and Verizon shall file all quarterly General Order 133-B reports addressing failure to meet service quality measures due to transitioning Applicant's customers 30 days after the quarter in which the migration is completed. Failure to meet service quality measures due to transitioning Applicant's customers shall not be subject to penalties.
10. AT&T California shall file Operations Support Systems performance measurement reports when due. AT&T California may request relief from incentive payments if the mass migration process for Applicant's customers results in a failure to meet applicable performance measures.
11. The third-party verification requirements of Pub. Util. Code § 2889.5 shall not apply when Applicant's customers are transferred to AT&T California, Verizon and Race.
12. Applicant shall file an advice letter, effective on one-day notice, cancelling its residential circuit-switched voice tariff on file with the Commission, as soon as its circuit-switched telecommunications services are discontinued.
13. Application 07-07-010 is closed.
This order is effective today.
Dated February 14, 2008, at San Francisco, California.
