Scope of the Proceeding

Evidentiary hearings will be necessary to resolve the factual disputes that are expected to remain after the parties complete discovery.

At this time, the material facts in dispute include the following:

Winback practices

· whether Pacific uses CPNI in winback activities;

· whether Pacific falsely disparages Telscape's services to customers who have switched their service from Pacific to Telscape.

Slamming

· whether Pacific reports false slamming complaints to Telscape and regulatory agencies;

· whether any false slamming complaints are solicited, induced, or created by Pacific.

Billing/OSS

· whether Pacific consistently overcharges Telscape in its wholesale billing;

· whether wholesale billing disputes take excessive amounts of time to resolve;

· whether Pacific consistently imposes unjustified late charges on Telscape's wholesale bills;

· whether the wholesale billing problems experienced by Telscape are the result of systemic problems with Pacific's OSS.

DSL

· whether Pacific participates in refusing to provide DSL service to California retail customers who choose a carrier other than Pacific for their voice services.

The parties dispute whether any or all of the practices alleged in the complaint, even if they are proved true, constitute violations "of any provision of law or of any order or rule of the commission." (§ 1702). For some issues identified in the complaint, subsidiary or more specific legal disputes can also be identified. At this time, such specific disputed legal issues include the following:

Winback practices

· whether Pacific improperly uses CPNI in its winback activities;

· whether Pacific's offers of discounts to customers who have switched their service are discriminatory.

Slamming

· whether Pacific's reports of slamming complaints about Telscape are in compliance with relevant federal and state law mandates.

Billing/OSS

· whether the billing problems experienced by Telscape constitute, in their totality, improper anticompetitive activity by Pacific.

DSL

· whether Pacific's activities with respect to the provision of DSL service to customers who do not use Pacific for their voice services are in compliance with federal law.

· whether compliance with federal law constitutes a complete defense to the allegations that Pacific participates in wrongful denial of DSL service to customers who do not use Pacific for their voice services.