VII. Comments on Draft Decision
The draft decision of the ALJ Thomas Pulsifer in this matter was mailed to the parties in accordance with Public Utilities Code Section 311(g)(1) and Rule 77.7 of the Rules and Practice and Procedure. Comments were filed on ______________, and reply comments were filed on __________________.
1. VSSI was certificated to provide competitive local exchange service in 1996 under its prior business name of GTE Communications.
2. VSSI currently offers local exchange, long distance, and other add-on features in a bundled service offering called "OneSource."
3. At the time this application was filed, VSSI provided OneSource service to approximately 200,000 business and residential customers statewide.
4. VSSI seeks to withdraw from the provision of local service, but to continue offering long distance service and to retain the option to reenter the local exchange market in the future utilizing a different platform.
5. VSSI implemented a customer notification plan directing customers to switch to another local carrier by March 19, 2001 to avoid service interruptions even though VSSI had not yet been authorized by the Commission to discontinue its OneSource service.
6. Through letters to the Commission and in Public Participation Hearings, a number of customers of VSSI expressed strong opposition to the application noting that any available service alternatives were more costly or less convenient compared with their OneSource bundled service.
7. Customers also complained that they were led to believe by VSSI as to the that they had to terminate their OneSource service by March 19, 2001 or face telephone service interruption.
1. Under GO 96-A, Commission approval is required before a carrier may withdraw from the provision of public utility service.
2. Although public participation hearings were held, no evidentiary hearings are necessary in order to resolve this application.
3. The customer notice requirements of D.97-06-096 apply to customer base transfers such as this one.
4. VSSI should be held accountable for failing to clearly inform customers regarding their rights to continue OneSource service until or unless Commission approval to withdraw was granted.
5. VSSI should be required to make financial restitution to customers that were prematurely switched from VSSI to another carrier under misleading pretenses, as directed in the order below.
6. VSSI should be granted authority to discontinue offering the OneSource bundled service only after all customers have been properly notified concerning the Commission authorized date for service to terminate and provided necessary information concerning alternative service options that are available.
7. VSSI should not be permitted to retain its CPCN local authority after discontinuing local service to its customers.
8. VSSI is subject to the rules for market entry and exit governing CLECs and is not subject to the rules governing COLR.
9. The COLR regulatory concept is rooted in the idea that by accepting the franchise obligation from the state to serve a particular area, the COLR is obligated to serve all the customers in the service area who request service.
10. The COLR concept is important to universal service policy because it ensures that customers receive service.
11. Although the withdrawal of VSSI from providing local service may result in customers losing certain convenience and cost savings features available through OneSource service, the VSSI withdrawal does not jeopardize customers' uninterrupted access to reliable telephone service at reasonable rates.
IT IS ORDERED that:
1. The application of Verizon Select Services, Inc. (VSSI) for authority to transfer its California customer base and to withdraw from the provision of local bundled service is hereby granted subject to the terms and conditions outlined below.
2. Pacific Bell Telephone Company (Pacific) and Verizon California Inc. (Verizon California) are directed to accept all customers transferred to them from VSSI, subject to their rights to terminate such customers after proper notice if prescribed standards of service provision are not met.
3. VSSI is directed to prepare and mail within 10 days of this decision a notice to its current California customers advising them that the Commission has authorized VSSI to withdraw from providing bundled local service effective 30 days following the notice to customers. VSSI shall seek the approval of the Commission's Public Advisor regarding the text to appear in the notice before mailing it.
4. VSSI is directed to prepare and mail within 10 days of this decision a notice to its former customers that switched in response to one of the customer notices directing customers to switch by March 19, 2001. VSSI shall inform former customers that they are entitled to restitution if they respond to the VSSI notice, indicating that they were misled concerning the deadline to switch service providers to prevent service interruptions. Customers shall be given 20 days in which to respond to the notice. VSSI shall seek the approval of the Commission's Public Advisor regarding the text to appear in the notice.
5. VSSI shall promptly reimburse the former customers who respond to the above-referenced notice, compensating them for the difference between what they would have paid under the OneSource bundled service and what they were charged for their alternative service beginning with the date their OneSource service was discontinued until the date that VSSI local bundled service is authorized to terminate pursuant to this order.
6. VSSI shall file a compliance report with the Commission by June 29, 2001 indicating the number of customers that have responded to its letter for reimbursement and confirming the steps it has taken to issue appropriate reimbursements to customers in compliance with the terms of this order.
7. A final order terminating VSSI's local service tariffs and revoking its CPCN for local service authority will issue following receipt and approval of the above-referenced compliance report.
8. This docket shall be left open for receipt and disposition of VSSI's compliance report.
9. The motion to file customer-specific information under seal is granted.
10. A copy of this order shall be served on Pacific and Verizon California.
This order is effective today.
Dated , at San Francisco, California.
