STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 3, 2003 Agenda ID #2342

TO: PARTIES OF RECORD IN CASE 01-07-027

This is the draft decision of Administrative Law Judge (ALJ) Duda. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:hkr

Attachment

ALJ/DOT/hkr DRAFT Agenda ID #2342

Adjudicatory

Decision DRAFT DECISION OF ALJ DUDA (Mailed 6/3/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

CALIFORNIA ISP ASSOCIATION, INC.,

Complainant,

vs.

PACIFIC BELL TELEPHONE COMPANY (U 1001 C); SBC ADVANCED SOLUTIONS, INC. (U 6346 C) and DOES 1-20,

Defendants.

Case 01-07-027

(Filed July 26, 2001)

OPINION APPROVING REVISED SETTLEMENT
AGREEMENT WITH MODIFICATIONS

TABLE OF CONTENTS

Title Page

OPINION APPROVING REVISED SETTLEMENT
AGREEMENT WITH MODIFICATIONS 2 2

I. Summary 2 2

II. Background of Complaint 2 2

III. Settlement Agreement 6 6

A. Initial Settlement Agreement 6 6

B. Revised Settlement Agreement 9 9

IV. Discussion 11 11

A. Modifications to the Revised Settlement 14 14

B. Other Parties' Concerns 18 18

C. Conclusion 21 21

V. Comments on Draft Decision 22 22

VI. Categorization and Assignment of Proceeding 22 22

Findings of Fact 22 22

Conclusions of Law 23 23

ORDER 24 24

Appendix A: Proposed Modifications to Revised Settlement Agreement
Revised Release and Settlement Agreement

Appendix B: Ruling

OPINION APPROVING REVISED SETTLEMENT
AGREEMENT WITH MODIFICATIONS

I. Summary

This decision approves a settlement agreement entered into between the California Internet Service Provider Association (CISPA, or Complainant), Pacific Bell Telephone Company (Pacific, also known as SBC) and SBC Advanced Solutions Inc. (ASI) (jointly SBC/ASI, or Defendants), conditioned upon CISPA, SBC, and ASI agreeing to modify the settlement agreement as described in this order. Specifically, the settlement should be revised to: 1) remove language in Section 1(a) allowing ASI to implement packetized voice on the ISP's end-user line without the consent of the affected ISP; 2) specify an explicit time frame in Section 8(a) regarding the release of claims that were the subject of this complaint; and 3) incorporate further revisions proposed by SBC/ASI on March 10, 2003.¹

¹ A copy of the Revised Settlement, with revisions that are proposed in this order, is attached as Appendix A. The revisions proposed in this order are shown in bold underline for additions, and strikeout for deletions.