III. Pacific's Response

Pacific says that it cannot allow UST to utilize the collocation facilities occupied by ATG because the rights to use them still belong to ATG. It also says that there are alternatives available to UST that would permit UST to provide service to the acquired customers. The alternative ways to provide service include resale of Pacific's retail service, and leasing of collocation and related facilities from Pacific.

Pacific says that with the first alternative, customers could be migrated to Pacific's network, and be serviced under a resale agreement or through the leasing of an unbundled network platform. With the second alternative, customers could be migrated to UST's facilities in a virtually seamless manner, using a process Pacific follows with CLCs hundreds of times per day.

Pacific says that the buyer of ATG's remaining California assets is GE Business Productivity Solutions (GE). On June 25, 2002, the Bankruptcy Court gave ATG conditional approval to assign its interconnection agreement to GE. Although GE has not made a final decision to take an assignment of the interconnection agreement, it has until the closing of its sale in September 2002 to do so.⁶