ALJ/SRT/eap DRAFT Item 2

2/8/2001

Decision DRAFT DECISION OF ALJ THOMAS (Mailed 1/5/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In Re Request of MCI WORLDCOM, INC. AND SPRINT CORPORATION for Approval to Transfer Control of Sprint Corporation's California Operating Subsidiaries to MCI WORLDCOM, INC.

Application 99-12-012 (Filed December 10, 1999)

O P I N I O N

A. Summary

In this decision, we grant the motion of MCI WorldCom, Inc. (WorldCom) and Sprint Corporation (Sprint) (collectively, Applicants) to withdraw their merger application. There is no need for this Commission to rule on the merits of a merger that did not occur. However, in view of the time and effort that the parties expended on developing a record in this proceeding, we take steps to preserve that record for other proceedings, to provide for future use of confidential documents produced in this case (while preserving, as appropriate, their confidentiality), and to ensure that this record is made part of any future merger application of either Applicant.

We do not evaluate or make determinations based on this record. Nonetheless, as discussed herein, the Commission may open an Investigation into Applicants' actions, if other proceedings do not address the issues The Utility Reform Network (TURN) and the Greenlining Institute/Latino Issues Forum (Greenlining/LIF) (collectively, Intervenors) raise here.