Conclusion

Because the previous §§ 854(b) and (c) cases did not set precedent, are distinguishable and did not rely explicitly on subsection (c), they are not applicable here. Application of the §§ 854(b) and (c) criteria to this merger is warranted and will not prejudice WorldCom. WorldCom's Motion is denied.

IT IS RULED that:

1. WorldCom will be required to demonstrate that its proposed merger meets the criteria in Public Utilities Code §§ 854(b) and (c).

2. This ruling does not bind the Commission to apply each § 854(b) and (c) criterion at the decision stage, but ensures that the record will contain evidence called for under §§ 854(b) and (c) when the Commission renders its decision on the merger.

3. Pursuant to § 854(b)(3), the Attorney General of California is hereby requested to prepare an advisory opinion regarding whether the merger will adversely affect competition and what mitigation measures the Commission might adopt to avoid this result.

4. Pacific Bell's Opposition to the Motion is accepted for filing.

5. This order is effective immediately. The parties may proceed with discovery aimed at determining whether the merger complies with §§ 854(b) and (c).

Dated February 7, 2000, at San Francisco, California.

		Sarah R. Thomas Administrative Law Judge

CERTIFICATE OF SERVICE

I certify that I have by mail this day served a true copy of the original attached Administrative Law Judge's Ruling Denying Motion of MCI WorldCom and Sprint for Early Determination of Exemption From Public Utilities Code Sections 854(b) and (c) on all parties of record in this proceeding or their attorneys of record.

Dated February 7, 2000, at San Francisco, California.

Fannie Sid

NOTICE

Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.