DOCKET UT-971760 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION Joint Application of ) CONSOLIDATED COMMUNICATIONS TELECOM ) DOCKET UT-971760 SERVICES INC., and McLEODUSA INC., ) McLEODUSA TELECOMMUNICATIONS SERVICES, ) ORDER GRANTING INC., for Authority ) APPLICATION to Transfer Customer Base ) . . . . . . . . . . . . . . . . . . . . ) On December 11, 1997, Consolidated Communications Telecom Services Inc., and McLeodUSA Telecommunications Services Inc., McLeodUSA Incorporated jointly filed an application with the Commission under the provisions of chapter RCW 80.12 and chapter WAC 480-143 for an order authorizing the transfer of customer base from Consolidated Communications Telecom Services Inc., to McLeodUSA Telecommunications Services, Inc. Consolidated Communications Telecom Services Inc., was registered as a telecommunications company in Docket UT-951294. The order authorizing registration was based upon Consolidated Communications Telecom Services Inc., providing resold direct dial long distance services. McLeodUSA Telecommunications Services, Inc., was registered as a telecommunications company in Docket UT-961647. McLeodUSA Telecommunications Services, Inc., was authorized to provide resold direct dial long distance services. Consolidated Communications Telecom Services Inc., will transfer customer base to McLeodUSA Telecommunications Services, Inc., and Consolidated Communications Telecom Services Inc., will cease to operate as a long distance reseller in Washington state. McLeodUSA, Inc., wholly owns McLeodUSA Telecommunications Services, Inc., and Consolidated Communications Telecom Services Inc. Subsequent to this order, Consolidated Communications Telecom Services Inc.'s existing customers will receive the identical service from McLeodUSA Telecommunications Services, Inc., that they currently receive from Consolidated Communications Telecom Services Inc., at the same rates, terms, and conditions. Consolidated Communications Telecom Services Inc.'s customers will be notified in writing by direct mail concerning the transfer of customer base from Consolidated Communications Telecom Services Inc., to McLeodUSA Telecommunications Services, Inc. FINDINGS THE COMMISSION FINDS: 1. Consolidated Communications Telecom Services Inc., is a public service company subject to regulation by this Commission, under the provisions of chapters, RCW 80.12 and RCW 80.36. 2. McLeodUSA Telecommunications Services, Inc., is a public service company subject to regulation by this Commission, under the provisions of chapters, RCW 80.12 and RCW 80.36. 3. As to form, the application filed herein meets the requirements of chapter RCW 80.12 and the rules and regulations of the Commission adopted pursuant thereto. 4. The proposed sale and transfer of customer base is not inconsistent with the public interest and should therefore be approved under the terms and conditions of this order. O R D E R THE COMMISSION ORDERS: 1. After the effective date of this order and subject to the conditions hereof, Consolidated Communications Telecom Services Inc., is hereby authorized to transfer customer base to McLeodUSA Telecommunications Services, Inc. 2. The reasonableness of any fees, charges, or accounting allocation involved in carrying out the provisions of the transfer of property arrangements approved herein are neither approved nor disapproved in this proceeding. 3. Within 30 days after the above authorized transfer has been consumated, McLeodUSA Telecommunications Services, Inc., shall notify the Commission that the transfer has been completed and cancel Consolidated Communications Telecom Services Inc.'s WN U-1 tariff. DATED at Olympia, Washington, and effective this 14th day of January, 1998. PAUL CURL, Acting Secretary