Background
In Decision (D.) 01-10-019, we granted Verizon Ave. a CPCN to provide limited facilities-based and resold local exchange services in the service territories of Pacific Bell Telephone Company, Verizon California Inc., Roseville Telephone Company, and Citizens Telephone Company of California, Inc.2 Under this operating authority, Verizon Ave. is providing local exchange service, long distance and other add-on features to residential customers statewide. Verizon Ave. also provides broadband services, and it will continue to provide those services. Verizon Ave. requests authorization to withdraw its resold local exchange service and related bundled offerings and to relinquish its CPCN to provide such services, because the competitive landscape makes it more attractive to focus on broadband services.
In this application, Verizon Ave. proposed to use the guidelines issued in R.03-06-020. Verizon Ave. included with its application the required exit plan. The Assigned Commissioner authorized use of the guidelines in a February 22, 2006 ruling. AT&T, the underlying carrier for Verizon Ave.'s customers, filed a response to the application on March 8, 2006. Although AT&T did not oppose the application, AT&T opposed being designated a default carrier for Verizon Ave. customers who did not choose an alternate local exchange provider. Volunteers were solicited to serve as a default carrier in the February 22, 2006 ruling. No carrier volunteered.
Verizon Ave. has provided the required customer notice. The 60-day notice letter was sent on March 24, 2006. In that letter, customers were notified that the Commission might appoint a default carrier to serve them should they fail to select an alternate provider.
On April 21, 2006, the assigned administrative law judge (ALJ) ordered Verizon Ave. and AT&T to meet and confer to discuss compensation to be provided to AT&T for assuming Verizon Ave.'s remaining customer base. Commission staff had reported that several hundred Verizon Ave. customers had not selected another carrier. The ALJ also ordered Verizon Ave. to file a customer migration progress report. On May 2, 2006 Verizon Ave. reported that approximately 152 customers had not yet migrated. Verizon Ave. had provided bill inserts and automated calls reminding customers of the proposed exit in addition to the 60-day and 30-day customer notice letters.
Verizon Ave. and AT&T continued to negotiate the terms of AT&T assuming Verizon Ave.'s remaining customers. On May 9, 2006, Verizon Ave. sent a letter to the ALJ to report that Verizon Ave. and AT&T had agreed to compensation and the terms of AT&T assuming Verizon Ave.'s customers. The agreement included the following terms: (1) compensation of $4.75 per migrated customer consistent with AT&T's bill record change order charge;3 (2) a third customer notice letter from Verizon Ave.; (3) a welcoming letter from AT&T; and (4) transfer of local service and vertical features only.
On May 12, 2006, the ALJ ordered Verizon Ave. and AT&T to implement the terms of their agreement governing default carrier and related migration issues and to provide draft final customer notice and welcoming letters to Commission staff for review. On May 23, 2006, Verizon Ave. notified the ALJ by e-mail that Commission staff had approved the final customer notice, which Verizon Ave. planned on mailing that day. The parties were coordinating the timing of the default migration, which they intended to complete on or around June 12, 2006. On June 12, 2006, the parties called the ALJ to report that all customers had either selected another carrier or had transferred to AT&T under the terms of the agreement.
2 Verizon Ave.'s corporate identification number is U 6584 C.
3 AT&T's filed tariff A3, sheet 41.
