Discussion

We authorize Verizon Ave. to relinquish its CPCN authorizing the provision of resold local exchange services and related bundled offerings and to discontinue providing these services to customers in California. We approve the Assigned Commissioner's ruling authorizing the use of the guidelines in this proceeding.

Under General Order (GO) 96-A Section XIV, a carrier must obtain approval from the Commission before withdrawing services. Under the draft guidelines, there are several criteria for approval of a carrier's termination of service. (Section IX.) Overall, the Commission is to be guided by what is in the public interest. The factors to consider in weighing a carrier's request to withdraw local exchange services are progress of customer migrations, availability of alternatives, and nature of the customer base. When customers have not timely selected a new carrier, the Commission may require that a default carrier provide service. If the Commission orders a default carrier to assume the customer base of an exiting carrier, the default carrier is eligible for compensation.

The mass migration guidelines impose notice requirements on exiting carriers. (Section V.) Customers must receive one notice letter 60 days in advance of the final service termination date and a second notice if the customer has not selected a new carrier. The second notice could include any or all of the following: a follow-up letter, a telephone call to the customer, a bill insert, or any other effective means of direct contact with the customer.⁴ Verizon Ave. has satisfied these requirements through its March 26, 2006 written notice to its customers, its two additional customer notice letters, and bill inserts and automated calls. All of Verizon Ave.'s customers selected another carrier or were transferred to AT&T by June 12, 2006.

We confirm the ALJ's May 12, 2006 ruling, attached hereto as Appendix A, which orders AT&T to assume Verizon Ave.'s remaining customer base as a default carrier and Verizon Ave. to compensate AT&T for acting as the default carrier, as set forth in their agreement. Providing for a default carrier and compensation for assuming that role is necessary because some of Verizon Ave.'s customers did not select a new carrier. We find the terms for compensation and assuming the customer base, negotiated by Verizon Ave. and AT&T, are reasonable.

Based on Verizon Ave.'s business plan, to continue to provide broadband services and to discontinue providing narrowband voice services because they are no longer as competitive, we find it reasonable to grant its request to withdraw its provision of resold local exchange services and related bundled offerings and to relinquish its CPCN.⁵

⁴ The customer notice letter must satisfy the following requirements:

· Identify the arranged carrier (a carrier with whom the exiting competitive local exchange carrier (CLEC) has negotiated an arrangement to serve customers who do not choose a replacement carrier in the timeframe provided) or default provider

· State the customer's right to choose an alternative carrier

· State the customer's need to take prompt action when there is no arranged carrier

· Provide clear instructions to the customer regarding choice of an alternative provider, including a list of the services impacted by the change in service provider

· Provide a toll-free number for the exiting carrier and the arranged carrier, if any

· Clearly state time deadlines for customer action in accordance with the Commission's mass migration guidelines

· Applicable information about long distance service

· Customer's responsibility for payment of telephone bills during the migration period.

⁵ Verizon Ave. is a carrier competing with the incumbent local exchange carrier (ILEC) and any other CLECs offering service in California. In order to ensure that a minimum level of affordable telecommunications services are available to all persons in California, each ILEC has been designated as a "carrier of last resort" in its service area and must serve all persons who request service in the area. Since Verizon Ave. is not a carrier of last resort, Verizon Ave. is not obligated to continue to indefinitely serve customers when it wishes to exit the market.