2. Background

Applicant received its California Certificate of Public Convenience and Necessity (CPCN) to provide facilities-based local exchange services in the service territories of Pacific Bell and Verizon California Inc.2 (Verizon) on December 20, 1995 in D.95-12-057. The Commission granted resale authority to Applicant on February 23, 1996 in D.96-02-072. At present, Applicant does not provide facilities-based residential local exchange service.

Applicant filed Application (A.) 07-02-024 on February 23, 2007, requesting authority to discontinue the provision of residential local exchange telecommunications service and all related telecommunication service offerings within the ILEC service territory of AT&T California. Notice of the application appeared in the Commission's Daily Calendar on March 2, 2007. There were no protests to the application. In the Application and its Exit Plan, Applicant notes its agreement with AT&T California to designate the ILEC as the acquiring or "Arranged" local exchange carrier pursuant to the Commission's Guidelines.

Applicant requests authority to discontinue the provision of residential local exchange service to 242,179 local residential customers within AT&T California's service territory. Applicant seeks authority to discontinue service by April 11, 2008.3

2 Formerly known as GTEC.

3 Applicant originally sought an exit date of August 31, 2007. However, the date was revised in coordination with the Commission's Communications Division (CD, formerly known as the Telecommunications Division), given the volume of customers involved in the process.

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