1O192566O - 1 -

CAI/K}/ek4 8/14/2O14



BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

}oinl AppIicalion of Concasl Coipoialion,
Tine Wainei CalIe Inc., Tine Wainei CalIe
Infoinalion Seivices (CaIifoinia), LLC, and
iighl House Nelvoiks Infoinalion
Seivices (CaIifoinia), LLC foi Lxpediled
AppiovaI of lhe Tiansfei of ConlioI of
Tine Wainei CalIe Infoinalion Seivices
(CaIifoinia), LLC (U6874C), and lhe
Iio Ioina Tiansfei of ConlioI of iighl
House Nelvoiks Infoinalion Seivices
(CaIifoinia), LLC (U6955C), lo Concasl
Coipoialion Iuisuanl lo CaIifoinia IulIic
UliIilies Code Seclion 854(a).






AppIicalion 14-O4-O13
(IiIed ApiiI 11, 2O14)


SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER
AND ADMINISTRATIVE LAW JUDGE

Summary
This iuIing sels foilh lhe scope, scheduIe, calegoiy, need foi heaiings, and
!" $%&'! connunicalion iuIes foi lhis pioceeding puisuanl lo RuIe 7.3 of lhe
Connissions RuIes of Iiaclice and Iioceduie (RuIes). The RuIes aie avaiIalIe
on lhe Connissions velsile.
1


1
(!! Connissions Wel page (vvv.cpuc.ca.gov), Lavs, RuIes and Iioceduies.
FILED
8-14-14
09:53 AM
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1. Parties and ProceduraI Background
Concasl Coipoialion (Concasl), Tine Wainei CalIe Inc. (TWC), Tine
Wainei CalIe Infoinalion Seivices (CaIifoinia), LLC (TWCIS) and iighl House
Nelvoiks Infoinalion Seivices (CaIifoinia), LLC (iighl House) (coIIecliveIy,
}oinl AppIicanls) fiIed lhis appIicalion (AppIicalion) foi appiovaI of lhe liansfei
of conlioI of TWCIS and iighl House lo Concasl on ApiiI 11, 2O14. TWCIS and
iighl House aie ieguIaled enlilies Iicensed ly lhe Connission. The
AppIicalion vas fiIed undei Seclion 854(a) of lhe IulIic UliIilies Code (Iul. UliI.
Code) vhich piovides, in ieIevanl pail, lhal liansfeis of conlioI of ieguIaled
enlilies nay onIy le nade vilh lhe piioi appiovaI of lhe Connission. The
AppIicalion aIso conlained a liief anaIysis of lhe vays in vhich lhe }oinl
AppIicanls neel lhe faclois sel foilh in Iul. UliI. Code 854(c).
The AppIicalion vas piolesled ly a gioup of pulIic inleiesl oiganizalions
incIuding lhe }esse Miianda Cenlei foi Hispanic Leadeiship, lhe Los AngeIes
Lalino Chanlei of Conneice, lhe Oiange Counly InleidenoninalionaI AIIiance,
lhe NalionaI Asian Aneiican CoaIilion, lhe LcunenicaI Cenlei foi Iack Chuich
Sludies, Chiisl Oui Redeenei AML Chuich, and lhe NalionaI Hispanic Chiislian
Leadeiship Confeience (coIIecliveIy, }oinl Iioleslois), lhe Connissions Office of
Ralepayei Advocales (ORA), The UliIily Refoin Nelvoik (TURN), and The
CieenIining Inslilule (CieenIining). Dish Nelvoik L.L.C. (Dish) fiIed a iesponse
lo lhe AppIicalion. }oinl Iioleslois, ORA, TURN and CieenIining aie heieaflei
sonelines coIIecliveIy iefeiied lo as Iioleslois.
The pioposed liansfei of conlioI of TWCIS and iighl House is incidenl lo
a pioposed neigei lelveen Concasl and TWC (Meigei). Concasl is lhe Iaigesl
calIe conpany in noilhein CaIifoinia, TWC is lhe Iaigesl calIe conpany in
soulhein CaIifoinia. The AppIicalion ieciles lhal innedialeIy foIIoving lhe
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pioposed change of conlioI, cusloneis of TWCIS and iighl House viII conlinue
lo ieceive lhe sane seivices al lhe sane iales as veie avaiIalIe lo lhen piioi lo
lhe change of conlioI and lhal ovei line lhe Meigei viII iesuIl in enhanced
seivices lo lhese ieguIaled enlilies voice cusloneis.
2
Ioi lhese ieasons, }oinl
AppIicanls uige lhe Connission lo lieal lhe AppIicalion as a iouline nallei and
appiove lhe change of conlioI vilhoul deIay and vilhoul lhe necessily foi
evidenliaiy heaiings. }oinl AppIicanls fuilhei nainlain lhal lhe Connissions
juiisdiclion is Iiniled lo evaIualing lhe inpacl of lhe pioposed Iicense liansfei on
lhe naikel foi voice seivices in CaIifoinia. They aigue lhal lhe liansfei viII
enhance conpelilion in lhe naikel foi voice seivices and is )$*+ ,%-'+ in lhe pulIic
inleiesl.
Iioleslois have a diffeienl viev of lhe nallei. They uige us lo adopl a
lioad pulIic inleiesl slandaid in ievieving lhe AppIicalion and Iook nol jusl al
lhe inpIicalions of lhe liansfei foi voice cusloneis of TWCIS and iighl House
lul aIso al lhe inpIicalions of lhe pioposed Meigei foi lhe cosl and avaiIaliIily
of lioadland seivices in CaIifoinia. In pailicuIai, ORA expiesses concein aloul
vhal il vievs as lhe neai-nonopoIy naikel povei lhal viII le possessed ly lhe
neiged conpany. }oinl Iioleslois and CieenIining voiiy lhal lhe Meigei viII
viden lhe so-caIIed digilaI divide lelveen affIuenl and pooi connunilies ly
iesliicling access lo lioadland seivices and naking lhen noie expensive.
TURN aigues lhal }oinl AppIicanls have faiIed lo denonsliale lhe cIained pulIic

2
(!!. }oinl AppIicalion al 14: y peinilling Concasl Coipoialion and Tine Wainei CalIe lo
conline lhe lesl aspecls of lheii iolusl and innovalive voice seivices, and ly adding scaIe lo
Concasl Coipoialions oveiaII lusiness lhal viII encouiage noie nelvoik inveslnenl in
CaIifoinia, appiovaI of lhis liansaclion viII Ieave lhe neiged conpany even lellei suiled lo
offei an aiiay of advanced voice seivices in conpelilion vilh ILLCs and olhei piovideis.
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lenefils of lhe Meigei. Iioleslois in geneiaI ask lhal ve adopl sliicl slandaids of
ieviev eilhei ly iuIing lhal lhe AppIicalion is goveined ly Seclion 854(c), vhich
iequiies lhal lhe change of conlioI neel ceilain slandaids enuneialed in lhe
slalule, oi ly Iooking lo lhe Seclion 854(c) slandaids foi guidance even if ve
concIude lhal lhe AppIicalion is goveined ly lhe Iess iesliiclive pulIic inleiesl
slandaid of Seclion 854(a).
In addilion lo lhese aigunenls, lased on piovisions of lhe IulIic UliIilies
Code, ORA uiges us lo iuIe lhal ve have juiisdiclion lo invesligale lhe
inpIicalions of lhe Meigei on lioadland depIoynenl in CaIifoinia undei
Seclion 7O6 of lhe fedeiaI TeIeconnunicalions Acl, ciling lo a iecenl decision of
lhe Disliicl of CoIunlia (D.C.) Ciicuil Couil on lhis lopic. In lhal conneclion,
ORA uiges lhal ve open a conpanion invesligalion inlo lhe Meigei, a posilion
suppoiled ly aII olhei Iioleslois.
}oinl AppIicanls dispule lolh lhe Seclion 854(c) aigunenl undei slale Iav
and lhe Seclion 7O6 aigunenl undei fedeiaI Iav, and sliongIy oljecl lo lhe
opening of an invesligalion inlo lhe effecls of lhe Meigei, vhich lhey aigue is an
aclion leyond lhe juiisdiclion of lhe Connission.
1. Discussion
Concasl and TWC, lhiough lheii CaIifoinia sulsidiaiies, vouId
polenliaIIy conline lhe lvo Iaigesl piovideis of high-speed Iasl niIe lioadland
seivice in lhe slale. The Meigei vouId inpacl conpelilion and consunei
veIfaie in CaIifoinias naikel foi vhoIesaIe leIeconnunicalions, ielaiI voice,
lackhauI and lioadland seivices.
3
Moie inpoilanlIy, lhe Meigei vouId have

3
(!!, }oinl AppIicalion al 2-7.
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an inpacl on lioadland depIoynenl in CaIifoinia as lvo of lhe Iaigesl calIe
lioadland piovideis in lhe slale neige lo foin one enlily. Theiefoie, vhiIe
conducling ouiseIves undei lhe Iiniled aulhoiily gianled ly appIicalIe Iav, lhe
Connission viII:
Calhei and anaIyze infoinalion ieIevanl lo lhe
pioposed neigei lo deleinine lhe specific inpacl of lhe
neigei on CaIifoinia undei lhe pulIic inleiesl ciileiia
enuneialed in Seclions 854(a) and 854(c) of lhe
IulIic UliIilies Code (Iul. UliI. Code),
AnaIyze vhal, if any, condilions ieIaled lo
CaIifoinia-specific effecls of lhe neigei nay le
appiopiiale, and
DeveIop a iecoid lo infoin addilionaI connenls lhal
lhe Connission nay fiIe vilh iegaid lo lhe neigei
appIicalion al lhe IedeiaI Connunicalions
Connission (ICC).
Once a calIe conpany has consliucled a nelvoik in a geogiaphic aiea and
acquiied a cuslonei lase, il is lypicaIIy loo expensive foi a second such conpany
lo cone in and oveiluiId lhe fiisl conpanys nelvoik. Ioi lhal ieason, in lhe
alsence of ieguIalion, a calIe conpany can chaige a nonopoIy piice foi
individuaI cusloneis lo access ils nelvoik. This is aIso vhy Concasl and TWC
have aigued lhal lhe Meigei vouId nol change lhe conpelilive Iandscape
lecause lhe lvo conpanies do nol cuiienlIy conpele foi cusloneis. As calIe
conpanies have lianched oul fion offeiing leIevision onIy lo offeiing high
speed Inleinel access, e-naiI, lexling, video confeiencing, leIephony and olhei
lioadland-lased seivices, lhe consequences of leing econonicaIIy piecIuded
fion access lo such seivices have lecone noie seveie.
Recognizing lhese facls, lhe Connission leIieves lhal il has a ioIe lo pIay
in lhe discussion aloul lhe pioposed Meigei of lhe counliys lvo Iaigesl calIe
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conpanies as il inpacls CaIifoinia consuneis. The ICC has opened a
pioceeding lo Iook al lhe anli-liusl and olhei naikel-ieIaled inpIicalions of lhe
Meigei and has inviled connenl fion slale ieguIaloiy connissions. In oidei lo
piovide neaningfuI inpul lo lhe ICC and infoin lhe Connissions pulIic
inleiesl anaIysis of lhe liansfei of conlioI undei Iul. UliI. Code 854, lhe
Connission viII iequiie significanl facluaI dala fion }oinl AppIicanls.
As pail of lhis pioceeding, lhe Connunicalions Division shaII foinuIale
dala iequesls lhal seek infoinalion fion }oinl AppIicanls aloul lhe inpIicalions
of lhe Meigei foi lhose voice and lackhauI seivices ovei vhich ve have
ieguIaloiy juiisdiclion as veII as foi lioadland depIoynenl in CaIifoinia. The
scheduIe leIov sels ieIaliveIy shoil deadIines foi dala pioduclion. The dala
iequesls shouId addiess lhe inpIicalions of lhe Meigei on lioadland avaiIaliIily
in CaIifoinia, incIuding lioadland depIoynenl in eIenenlaiy and secondaiy
schooIs, Iiliaiies, unseived and undeiseived aieas of CaIifoinia, as veII as voice
and lackhauI seivices. Any confidenliaI infoinalion sulnilled in iesponse lo
dala iequesls in lhis pioceeding viII le suljecl lo lhe slandaid lhal defines lhe
scope of confidenliaIily undei Iul. UliI. Code 583.
4
Any paily seeking
confidenliaIily leais a sliong luiden of pioof.
5


4
Iul. UliI. Code 583 slales:
No infoinalion fuinished lo lhe connission ly a pulIic uliIily, oi any lusiness vhich is
a sulsidiaiy oi affiIiale of a pulIic uliIily, oi a coipoialion vhich hoIds a conlioIIing
inleiesl in a pulIic uliIily, excepl lhose nalleis specificaIIy iequiied lo le open lo pulIic
inspeclion ly lhis pail, shaII le open lo pulIic inspeclion oi nade pulIic excepl on oidei
of lhe connission, oi ly lhe connission oi a connissionei in lhe couise of a heaiing oi
pioceeding. Any piesenl oi foinei officei oi enpIoyee of lhe connission vho divuIges
any such infoinalion is guiIly of a nisdeneanoi.

5
Decision (D.) O6-O6-O66 al 2.
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SpecificaIIy, dala iequesls shouId focus on, lul aie nol necessaiiIy Iiniled
excIusiveIy lo, lhe foIIoving lopic aieas:
(1) Safely and ieIialiIily, such as lhe lypes of lalleiy lackups
piovided ly }oinl AppIicanls lo piolecl consuneis duiing
eneigencies,
(2) ConpIainls and conpIainl pioceduies, such as avenues foi
iecouise avaiIalIe lo }oinl AppIicanls cusloneis,
(3) Teins and condilions, such as conliacls cusloneis nusl
sign in oidei lo ieceive seivice fion }oinl AppIicanls and
conliacls lelveen }oinl AppIicanls and conlenl deIiveiy
nelvoiks foi conneclion lo }oinl AppIicanls nelvoik,
(4) Cuslonei Iiivacy, such as lhe anounl and lype of
infoinalion }oinl AppIicanls aie peinilled lo galhei and
seII lo lhiid pailies,
(5) IulIic safely, such as 911 iequiienenls and 911 seivices lo
cusloneis as veII as oulages in CaIifoinia,
(6) Inlegialion of }oinl AppIicanls syslens posl-neigei, such
as cosl savings and veiifialIe efficiencies,
(7) Sulsciileis, such as hov nany sulsciileis Concasl and
TWC have in CaIifoinia, hov nany hones Concasl and
TWC pass lhiough in CaIifoinia, hov nany hones
sulsciile lo Concasl and TWC in CaIifoinia, and hov
nany schooIs and Iiliaiies Concasl seives in CaIifoinia foi
L-Rale,
(8) Voice seivices, such as vhelhei }oinl AppIicanls inlend lo
piovide LifeIine seivices lo lheii cusloneis,
(9) ackhauI, such as vhelhei lhe neigei vouId Iinil
conpelilion in lackhauI seivice in CaIifoinia,
(1O) WhoIesaIe seivices, such as vhal seivices, if any, do
caiiieis piovide on a vhoIesaIe lasis lo lhiid pailies, and
(11) usiness seivices, such as hov conpelilion vouId le
affecled in lhe snaII lusiness and Iaige lusiness segnenl
of lhe naikel posl-neigei, and
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Infoinalion conpiIed fion }oinl AppIicanls iesponses viII piovide lhe
facluaI lasis foi lhe Connissions connenls lo lhe ICC aloul lhe Meigei and
infoin lhe Connissions pulIic inleiesl anaIysis of lhe liansfei of conlioI of lhe
ieguIaled enlilies.
Undei Iul. UliI. Code 854, lhe Connission has juiisdiclion lo ieviev lhe
pioposed change of conlioI of TWCIS and iighl House. The }oinl AppIicanls
conlend lhal lhe Connission, as pail of ils pulIic inleiesl anaIysis, cannol
incIude a ieviev of lhe lioadei aspecls of lhe Meigei lhal incIude Concasl and
TWC affiIiales. Ioi lhe foIIoving ieasons, }oinl AppIicanls aie incoiiecl.
As noled alove, }oinl AppIicanls have lied logelhei lhe Meigei vilh lhe
change of conlioI and asseiled lhal lhe Meigei viII lenefil TWCIS and iighl
House and olhei affiIiales of lhe neiging conpanies.
6
Al a nininun, lheiefoie,
lhe Connission nay iequiie }oinl AppIicanls lo piovide facluaI dala lo lack up
lhese asseilions of pulIic lenefil.
The uIlinale lesl of a pioposed change of conlioI is vhelhei oi nol il is in
lhe pulIic inleiesl. The pulIic inleiesl is lioadei lhan lhe inleiesl of lhe
cusloneis of lhe ieguIaled enlilies in lhe piice and quaIily of lhe seivices lhey
ieceive fion lheii piovideis. WhiIe lhe exacl conlouis of lhe pulIic inleiesl nay
le vague, sone indicalion of lheii lieadlh is given ly lhe specific ciileiia Iisled
in Seclion 854(c) of lhe Iul. UliI. Code:


6
}oinl AppIicalion al 14 fn 16: The focus in lhis seclion is on lenefils lhal viII inuie lo
Concasl Coipoialion, Tine Wainei CalIe %/0 '1!)& %,,)2)%'!* (34$1%*)* *5$$2)!0), (!! %2*+, }oinl
AppIicalion al 14, vheie }oinl AppIicanls slale lhe neigei viII encouiage noie nelvoik
inveslnenl ly peinilling Concasl Coipoialion and Tine Wainei CalIe lo conline lhe lesl
aspecls of Concasls and Tine Waineis iolusl and innovalive voice seivices, and ly adding
scaIe lo !"#$%&' !")*")%'+",-& "./)%00 12&+,/&&. (34$1%*)* *5$$2)!06
A.14-O4-O13 CAI/K}/ek4


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efoie aulhoiizing lhe neigei, acquisilion oi conlioI of any
eIecliic, gas, oi leIephone uliIily oiganized and doing lusiness
in lhis slale, vheie any of lhe enlilies lhal aie pailies lo lhe
pioposed liansaclion has gioss annuaI CaIifoinia ievenues
exceeding five hundied niIIion doIIais ($5OO,OOO,OOO), lhe
connission shaII considei each of lhe ciileiia Iisled in
paiagiaphs (1) lo (8), incIusive, and find, on laIance, lhal lhe
neigei, acquisilion, oi conlioI pioposaI is in lhe pulIic
inleiesl:
(1) Mainlain oi inpiove lhe financiaI condilion of lhe
iesuIling pulIic uliIily doing lusiness in lhe slale,
(2) Mainlain oi inpiove lhe quaIily of seivice lo pulIic uliIily
ialepayeis in lhe slale,
(3) Mainlain oi inpiove lhe quaIily of nanagenenl of lhe
iesuIling pulIic uliIily doing lusiness in lhe slale,
(4) e faii and ieasonalIe lo affecled pulIic uliIily enpIoyees,
incIuding lolh union and nonunion enpIoyees,
(5) e faii and ieasonalIe lo lhe najoiily of aII affecled pulIic
uliIily shaiehoIdeis,
(6) e leneficiaI on an oveiaII lasis lo slale and IocaI
econonies, and lo lhe connunilies in lhe aiea seived ly
lhe iesuIling pulIic uliIily,
(7) Iieseive lhe juiisdiclion of lhe connission and lhe
capacily of lhe connission lo effecliveIy ieguIale and
audil pulIic uliIily opeialions in lhe slale, and
(8) Iiovide niligalion neasuies lo pievenl significanl adveise
consequences vhich nay iesuIl.
ecause Concasl neels lhe $5OO niIIion CaIifoinia ievenue lhieshoId foi
enlilies speIIed oul in Seclion 854(c), lhis liansaclion is suljecl lo lhal seclion and
viII iequiie }oinl AppIicanls lo denonsliale lhal lhe pioposed change of conlioI
salisfies lhe Seclion 854(c) ciileiia. Since Seclion 854(c) speaks expIicilIy of
acquisilion of a pulIic uliIily ly neigei, }oinl AppIicanls viII aIso le iequiied lo
piovide evidence lhal lhe Meigei salisfies lhose ciileiia.
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In addilion lo ils aulhoiily undei lhe ciled seclions of lhe Iul. UliI. Code,
lhe Connission is aIso affecled ly a gianl of aulhoiily lo exanine lhe
inpIicalions of lhe Meigei on lioadland depIoynenl puisuanl lo Seclion 7O6(a)
of lhe 1996 IedeiaI TeIeconnunicalions Acl:
The Connission and each Slale connission vilh ReguIaloiy
juiisdiclion ovei leIeconnunicalions seivices shaII encouiage
lhe depIoynenl on a ieasonalIe and lineIy lased of advanced
leIeconnunicalions capaliIily lo aII Aneiicans (incIuding, in
pailicuIai, eIenenlaiy and secondaiy schooIs and cIassioons)
ly uliIizing, in a nannei consislenl vilh lhe pulIic inleiesl,
convenience and necessily, piice cap ieguIalion, ieguIaloiy
foileaiance, neasuies lhal pionole conpelilion in lhe IocaI
leIeconnunicalions naikel, oi olhei ieguIaling nelhods lhal
ienove laiiieis lo infiasliucluie inveslnenl.
7

This seclion of lhe 1996 acl vas lhe suljecl of a iecenl opinion of lhe
D.C. Ciicuil Couil in vhich lhe queslion discussed vas vhelhei lhis Ianguage
conslilules a gianl of aulhoiily oi is neieIy an expiession of IegisIalive inlenl.
8

The D.C. Ciicuil Couil unanliguousIy found lhe foinei lo le lhe piefeiied
inleipielalion, saying lhal lhe IegisIalive hisloiy suggesls lhal Congiess nay
have, sonevhal piescienlIy, vieved lhe piovision |Seclion 7O6(a)j as an
affiinalive gianl of aulhoiily lo lhe Connission.
9
The D.C. Ciicuil Couil
iejecled lhe aigunenl lhal Seclion 7O6(a) vas neieIy a slalenenl of
congiessionaI poIicy: lhe Ianguage |of Seclion 7O6(a)j can jusl as easiIy le iead
lo vesl lhe Connission vilh acluaI aulhoiily lo uliIize such 'ieguIaling nelhods

7
47 U.S. C. 13O2(a), !' *!78
8
9!&):+/ ;8 <== 74O I. 3d 623, 638 (D. C. Cii 2O14).
9
>08, al 639.
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lo neel lhis slaled goaI.
1O
In essence, lhe D.C. Ciicuil Couil found Seclion 7O6
lo le an acluaI gianl of aulhoiily lo lhe ICC and lhe slale connissions lo lake
conciele sleps ly uliIizing neasuies lhal pionole conpelilion and ienove
laiiieis lo infiasliucluie inveslnenl. Hovevei, lhe D.C. Ciicuil Couil aIso
noled lhal Seclion 7O6s deIegalion of aulhoiily is Iiniled:
The ICC has idenlified al Ieasl lvo Iiniling piincipIes
inheienl in 7O6(a). Iiisl, lhe seclion nusl le iead in
conjunclion vilh olhei piovisions of lhe Connunicalions Acl,
incIuding, nosl inpoilanlIy, lhose Iiniling lhe ICC's suljecl
nallei juiisdiclion lo inleislale and foieign connunicalion ly
viie and iadio. 47 U.S.C.S. 152(a) . Second, any ieguIalions
nusl le designed lo achieve a pailicuIai puipose: lo
encouiage lhe depIoynenl on a ieasonalIe and lineIy lasis
of advanced leIeconnunicalions capaliIily lo aII
Aneiicans.
11

Theiefoie, lvo opeialive Iinilalions on lhe ICCs and slales aulhoiily lo
acl aie lhal lhe ieguIaloiy neasuies chosen ieIale lo liansnission ly viies oi
iadio vaves, and lo lhe ieasonalIe and lineIy depIoynenl of lioadland. In
addilion, lhe D.C. Ciicuil Couil aIso piecIuded any connon caiiiei ieguIalion
such as iale of ieluin ieguIalion: We lhink il olvious lhal lhe Connission
vouId vioIale lhe Connunicalions Acl veie il lo ieguIale lioadland piovideis
as connon caiiieis.
12

WhiIe }oinl AppIicanls nainlain lhal ieIiance on 7O6(a) is piecIuded ly
71O of lhe Iul. UliI. Code, 7O6(a) piovides lhe expiess deIegalion of aulhoiily
aIIoved ly 71O:

1O
>08, al 637.
11
>08, al 64O.
A.14-O4-O13 CAI/K}/ek4


- 12 -
The Connission shaII nol exeicise ieguIaloiy juiisdiclion oi
conlioI ovei Voice ovei Inleinel IiolocoI oi Inleinel IiolocoI
enalIed seivices /3$/*' %& )/42+)/5 ") /3*)/&&06 5/0/7%'/5 16
8/5/)%0 0%9.(34$1%*)* *5$$2)!0)
In viev of lhe D.C. Ciicuil Couils concIusion lhal Seclion 7O6(a) is an
affiinalive gianl of aulhoiily lo lhe ICC and lhe slale connissions, il appeais
lo faII cIeaiIy vilhin lhe highIighled exenplion in Iul. UliI. Code. 71O.
Theiefoie, lhe scope of lhe Connissions cuiienl ieviev of lhe Meigei
lelveen Concasl and TWC, as slaled in lhis RuIing, faIIs vilhin lhe Iiniled
aulhoiily gianled undei Iul. UliI. Code 854 and Seclion 7O6(a) of lhe
TeIeconnunicalions Acl. The Connission is seeking infoinalion undei lhe
Iiniled aulhoiily gianled ly slale and fedeiaI Iav and piolecling lhe pulIic
inleiesl lo pionole slale and fedeiaI goaIs, such as encouiaging lioadland
depIoynenl, pionoling safely and fuilheiing innovalion, consunei choice and
pioleclion, and econonic lenefils lo CaIifoinia.
13

2. Scope of the Proceeding
The scope of lhis pioceeding incIudes aII issues lhal aie ieIevanl lo lhe
pioposed Meigeis inpacls on CaIifoinia consuneis in oidei lo infoin lhis
Connissions connenls vilh lhe ICC, and deleinine vhelhei any condilions
shouId le pIaced upon a neiged enlily. eaiing in nind oui Iiniled iesouices
and lhe ICCs and Depailnenl of }uslices concuiienl ieviev of lhe Meigei, ve
inlend lo focus lhis pioceeding on (lul do nol Iinil il lo) lhe foIIoving Iiniled
issues lhal have lhe giealesl inpacl on CaIifoinia consuneis:

12
>08, al 65O.
13
47 U.S. C. 13O2(a), !' *!78? (!! %2*+. Senale iII No. 1161, Seclion 1.
A.14-O4-O13 CAI/K}/ek4


- 13 -
1. Does lhe pioposed change of conlioI and lhe Meigei neel
lhe ciileiia enuneialed in Iul. UliI. Code 854(c)`
SpecificaIIy, pailies shouId focus lheii allenlion on lhe
ciileiia enuneialed in Iul. UliI. Code 854(c)(6) and
(c)(8), vilh due consideialion given lo lhe neigeis effecl
on safely, ieIialiIily, consunei pioleclion, conpelilion as
veII as voice, lackhauI, vhoIesaIe and lioadland seivices
in CaIifoinia.
2. Whal aie lhe inpIicalions of lhe Meigei foi lioadland
depIoynenl in CaIifoinia incIuding, in pailicuIai,
depIoynenl of lioadland lo eIenenlaiy and secondaiy
schooIs and cIassioons and lo unseived and undeiseived
aieas of lhe Slale`
3. Is lhe pioposed change of conlioI in lhe pulIic inleiesl,
laking inlo accounl findings of facl ieIaled lo lopics 1 and
2`
a. WouId lhe Meigei enhance safely and ieIialiIily of
CaIifoinia cusloneis vho ieceive voice and
lioadland seivices fion lhe neiged enlily`

l. WouId lhe neiged enlily iesuIl in giealei luiIdoul
lo unseived and undeiseived aieas in CaIifoinia as
veII as lo CaIifoinia schooIs and Iiliaiies`

c. Hov vouId lhe Meigei lenefil CaIifoinia
consuneis` Ioi exanpIe, viII lhe neigei lenefil
Iov incone oulieach and adoplion of lioadland
seivices lhal aie accessilIe, affoidalIe, and equilalIe
in a nannei lhal is enfoicealIe and viII heIp cIose
lhe digilaI divide` WiII lhe neigei heIp educale
consuneis on using conpuleis and lhe inleinel
vhen seivice is piovided` WiII lhe neiged enlily
offei slandaIone inleinel access and nake suie
consuneis aie avaie of lhis offei`

d. WouId lhe Meigei nainlain oi inpiove lhe quaIily
of seivice lo CaIifoinia consuneis`
A.14-O4-O13 CAI/K}/ek4


- 14 -

e. Whal Meigei-specific and veiifialIe efficiencies
vouId IikeIy le ieaIized ly lhe neigei`

f. Whal inpacl vouId lhe Meigei have on lhe naikel
foi speciaI access oi lackhauI seivices`

i. Whal aIleinalives lo lhe neiging enlilies
speciaI access lackhauI faciIilies cuiienlIy
exisl, and vhal aIleinalives vouId exisl aflei
lhe neigei`

ii. WouId lhe Meigei inciease lhe aliIily of lhe
neiging pailies lo inpose excIusive oi
iequiienenls conliacls on puichaseis of
lackhauI seivices`

g. WouId lhe Meigei, vhich is pIanned as a nalionvide
liansaclion, have specific oi diffeienl effecls in
CaIifoinia` Ioi exanpIe, vouId lhe neigei iesuIl in
Iess conpelilion in lhe CaIifoinia naikelpIace foi
lioadland cusloneis as conpaied lo lioadland
cusloneis nalionaIIy`

2.1. TimetabIe
As slaled alove, lhis Connission inlends lo connenl on lhe ICC
pioceeding. In oidei lo do so, lhe Connission has laigeled lhe end dale of lhis
pioceeding so lhal il is aiound lhe line lhe ICC anlicipales lhe concIusion of ils
pioceeding. Moieovei, a nunlei of issues can onIy le decided ly lhe ICC,
incIuding vhelhei lo appiove lhe Concasl and Tine Wainei neigei on a
nalionaI lasis. A Ienglhy pioceeding heie, vhich couId conlinue Iong aflei lhe
ICC has nade ils decision, couId pievenl us fion having neaningfuI
pailicipalion in lhe ICC piocess. Theiefoie, lhe scope adopled in lhis
A.14-O4-O13 CAI/K}/ek4


- 15 -
pioceeding aIIovs a lhoiough consideialion of lhe pioposed neigei vilhin a
scheduIe consislenl vilh lhe ICCs anlicipaled lineIine.
The foIIoving linelalIe is adopled:
:;:<= >:?>@A<:
AppIicalion IiIed ApiiI 11, 2O14
Iiolesls Due May 19, 2O14
Response lo Iiolesls Due }une 9, 2O14
Iieheaiing Confeience }uIy 2, 2O14
Scoping Meno Augusl 14, 2O14
ConcIusion of Discoveiy ly Iailies Oclolei 1, 2O14
Opening iiefs Oclolei 2O, 2O14
RepIy iiefs Oclolei 27, 2O14
Iioposed Decision Decenlei, 2O14
Decision Adopled }anuaiy, 2O15

3. Assigned Commissioner; Presiding Officer
CaiIa }. Ieleinan is lhe assigned Connissionei. Iuisuanl lo RuIe 13.2,
Adninislialive Lav }udge KaiI }. enesdeifei is designaled as lhe piesiding
officei.
4. Categorization and Need for Hearings
This iuIing confiins lhe Connissions pieIininaiy calegoiizalion of
AppIicalion 14-O4-O13 as Raleselling and ils deleininalion lhal evidenliaiy
heaiings aie nol necessaiy. This iuIing, onIy as lo calegoiizalion, is appeaIalIe
undei lhe piovisions of RuIe 7.6 of lhe Connissions RuIes of Iiaclice and
Iioceduie (RuIes).
A.14-O4-O13 CAI/K}/ek4


- 16 -
5. !" $%&'( Communication
Since lhis pioceeding is calegoiized as Raleselling, !" $%&'!
connunicalions vilh lhe assigned Connissionei, olhei Connissioneis, lheii
advisois, and lhe AL} aie onIy peinilled as desciiled al Iul. UliI. Code.
17O1.3(c) and RuIes 8.2, 8.3 and 8.5.
6. Discovery
Discoveiy viII le conducled accoiding AilicIe 11 of lhe RuIes. If lhe
pailies have discoveiy dispules lhey aie unalIe lo iesoIve lhiough
neel-and-confei sessions, lhey shaII iaise lhese dispules undei lhe
Connissions Lav and Molion pioceduie as soon as possilIe lo avoid
unnecessaiy deIay in lhe pioceeding. ((!! RuIe 11.3)
7. FiIing, Service and Service List
The officiaI seivice Iisl vas discussed and agieed lo al lhe }uIy 2, 2O14 IHC
and is nov on lhe Connissions velsile. Iailies shouId confiin lhal lheii
infoinalion on lhe seivice Iisl is coiiecl, and seive nolice of any eiiois on lhe
Connissions Iiocess Office, lhe seivice Iisl, and lhe judge. Iiioi lo seiving any
docunenl, each paily nusl ensuie lhal il is using lhe nosl up-lo-dale seivice Iisl.
The Iisl on lhe Connissions vel sile neels lhal definilion.
LIeclionic seivice is nov lhe slandaid undei RuIe 1.1O. AII pailies lo lhis
pioceeding shaII seive docunenls and pIeadings using eIeclionic naiI, vhenevei
possilIe, liansnilled no Ialei lhan 5:OO p.n., on lhe dale scheduIed foi seivice lo
occui. Iailies aie ieninded lhal, vhen seiving copies of docunenls, lhe
docunenl foinal nusl le consislenl vilh lhe iequiienenls sel foilh in
RuIe 1.1O(a).
RuIes 1.9 and 1.1O govein seivice of docunenls onIy and do nol change lhe
RuIes iegaiding lhe lendeiing of docunenls foi fiIing. AII docunenls foinaIIy
A.14-O4-O13 CAI/K}/ek4


- 17 -
fiIed vilh lhe Connissions Dockel Office nusl incIude lhe caplion appioved ly
lhe Dockel Office and lhis caplion nusl le accuiale.
Olhei docunenls, incIuding piepaied leslinony, aie seived on lhe seivice
Iisl lul nol fiIed vilh lhe Dockel Office. This pioceeding viII foIIov lhe
eIeclionic seivice piolocoIs adopled ly lhe Connission in RuIe 1.1O, vhelhei
foinaIIy fiIed oi jusl seived. This RuIe piovides foi eIeclionic seivice of
docunenls, in a seaichalIe foinal, unIess lhe appeaiance oi slale seivice Iisl
nenlei did nol piovide an e-naiI addiess. If no e-naiI addiess vas piovided,
seivice shouId le nade ly Uniled Slales naiI. AddilionaIIy, pailies shaII seive
papei copies of aII fiIings on lhe piesiding officei and assigned Connissionei.
L-naiI connunicalion in lhis pioceeding shouId incIude, al a nininun,
lhe foIIoving infoinalion on lhe suljecl Iine of lhe e-naiI: A.14-O4-O13 Concasl-
TWC Meigei. In addilion, lhe paily sending lhe e-naiI shouId liiefIy desciile
lhe allached connunicalion, foi exanpIe, @&)!,.
Any peison inleiesled in pailicipaling in lhis pioceeding vho is
unfaniIiai vilh lhe Connissions pioceduies oi vho has queslions aloul lhe
eIeclionic fiIing pioceduies shouId conlacl lhe Connissions IulIic Advisoi al
(866) 849-839O oi (415) 7O3-2O74, oi (866) 836-7825 (TTY-loII fiee), oi send an
e-naiI lo pulIic.advisoicpuc.ca.gov.
8. FinaI OraI Arguments
Any paily vishing lo exeicise lhe iighl undei RuIe 13.13 lo nake a finaI
oiaI aigunenl lefoie lhe Connission nusl nake a viillen iequesl in lhe
Opening iiefs, fiIe il, and seive il on aII pailies, lhe assigned Connissionei and
assigned AL}.
A= AB CD@:> lhal:
1. The scope of lhis pioceeding is as sel foilh alove.
A.14-O4-O13 CAI/K}/ek4


- 18 -
2. The scheduIe of lhis pioceeding is as sel foilh alove, unIess anended ly
lhe assigned Connissionei oi lhe assigned Adninislialive Lav }udge.
3. The piesiding officei in lhis pioceeding is Adninislialive Lav }udge
KaiI }. enesdeifei.
4. This pioceeding is calegoiized as Raleselling.
5. Lvidenliaiy heaiings aie pieIininaiiIy deleinined nol lo le necessaiy.
6. 3" $%&'! connunicalions, if any, shaII conpIy vilh AilicIe 8 of lhe
Connissions RuIes of Iiaclice and Iioceduie.
7. Any sellIenenls ieached lelveen pailies shaII le fiIed and seived in
viiling as discussed alove.
8. The pioceduie foi accessing lhe seivice Iisl and foi lhe fiIing and seivice of
docunenls and leslinony in lhis pioceeding is as sel foilh alove.
Daled Augusl 14, 2O14, al San Iiancisco, CaIifoinia.



/s/ CARLA }. ILTLRMAN /s/ KARL }. LMLSDLRILR
CaiIa }. Ieleinan
Assigned Connissionei
KaiI }. enesdeifei
Adninislialive Lav }udge