DOCKET UT-970675 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION Joint Application of ) WORLDCOM, INC., and ITC TELE-SERVICES, ) DOCKET UT-970675 INC., for Authority to Transfer ) Selected Assets to ) ORDER GRANTING INTELLICALL OPERATOR SERVICES, INC. ) APPLICATION . . . . . . . . . . . . . . . . . . . . ) On April 18, 1997, WorldCom, Inc., (WorldCom) and ITC Tele-Services, Inc.,(ITC), 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 assets to Intellicall Operator Services, Inc., (IOS). ITC was registered as a telecommunications company in Docket UT-950974. ITC is a wholly-owned subsidiary of WorldCom. The order authorizing registration was based upon ITC providing interexchange telecommunication services. IOS was registered as a telecommunications company in Docket U-89-3123-AR. IOS was authorized to provide resold direct dial long distance and operator services. ITC and WorldCom will transfer assets to IOS for a purchase price defined in the Asset Purchase Agreement, filed as part of the application. ITC and WorldCom will continue to operate as an interexchange telecommunication service provider in Washington state. Subsequent to this order, ITC and WorldCom's existing customers will receive the identical service from IOS that they currently receive from ITC and WorldCom, at the same rates, terms, and conditions. IOS submitted a proposed tariff in its registration application in Docket U-89-3123-AR, which duplicates the services offered by ITC and WorldCom. FINDINGS THE COMMISSION FINDS: 1. WorldCom, Inc., and ITC Tele-Services, Inc., are public service companies subject to regulation by this Commission, under the provisions of chapters, RCW 80.12 and RCW 80.36. 2. Intellicall Operator 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 selected assets 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, WorldCom, Inc., and ITC Tele-Services, Inc., is hereby authorized to transfer selected assets to Intellicall Operator Services, Inc., in accordance with the Asset Purchase Agreement filed as part of the application herein. 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, Intellicall Operator Services, Inc., shall file with the Commission true copies of the instruments of transfer which were executed pursuant to this order. 4. This order shall in no way affect the authority of this Commission over rates, service, evaluations, or accounts that may come before it, nor shall anything herein be construed as an acquiescence in any estimate or determination of cost or any valuation of property claimed or asserted. DATED at Olympia, Washington, and effective this 9th day of July, 1997. STEVE McLELLAN, Secretary