B. Background
360networks is a telecommunications carrier certificated as an NDIEC subject to the jurisdiction of the Commission. 360networks has an application pending for authority to operate as a CLC providing local telecommunications services.2 On November 20, 2000, 360networks filed this application requesting that the Commission exercise its authority under § 853 to exempt transfers of assets and interests between NDIECs and CLCs from review under § 851.3
The application was noticed in the Commission's Daily Calendar and there were no responses or protests to the application.
Currently, the Commission requires certified NDIECs and CLCs who seek a transfer of control or assets to file an advice letter with the Commission for approval of the transaction. The Commission established this advice letter procedure in Decision (D.) 94-05-051 as a way to expedite the review and approval process by which NDIECs obtain authority for non-controversial transactions subject to §§ 851 through 854. In D.98-07-094, the Commission extended the procedure to apply to CLCs seeking authority, pursuant to §§ 851 through 854, for non-controversial transfers of control or assets.4 NDIECs and CLCs may only use the advice letter process if the entity acquiring the assets or control is another Commission certified entity or the parent of a certified entity. The advice letter is automatically approved 40 days after filing, absent Commission action to suspend the advice letter.5
2 See Application (A.) 00-10-005. 3 Section 853 states in relevant part: "The Commission may... exempt any public utility or class of public utility from this article if it finds that the application thereof ...is not necessary in the public interest." 4 Pursuant to Appendix A of D.94-05-051, the advice letter process may not be used for purposes of market entry and it does not apply to transactions covered under § 854(b) and (c). Furthermore, D.98-07-094 specifies that the advice letter procedure does not apply to CLCs owned by or affiliated with incumbent local exchange carriers (ILECs). 5 On February 14, 2001, the Commission released a draft decision in Rulemaking 98-07-038 that would shorten this automatic approval period, absent a protest or suspension by Commission staff, to 30 days (see Appendix A, Proposed General Order 96-B, Rule 7.3.4(1) and Appendix C, Telecommunications Industry Rules, Rule 1.15 and Rule 7.2(5)).
