ECI - California description of Services

Jeff -- here is a rough outline of the activities we will be doing in CA.

ECI porposes to:

* provide managed virtual private line service using DWDM technology over our
own proprietary network. This is primarily an interstate service, but some
segments may be marketed and sold between points in CA.

* acquire OC-48 capacity on other networks and "mux" them down into DS-3,
OC-3 and OC-12 increments and then re-sold to other carriers and large
enterprise users. Some of this activity will be interstate and some
intrastate but interLATA.

* possibly buy,lease, or build local loop capacity to connect metro
points-of-presence, probably in LA and San Jose. These facilities would
carry mostly interstate/international traffic, but add/drop within the city
and LATA.

QUESTIONS:

- Do we need a CPUC Certificate for these activities?
- Is there more benefit to common carriage vs. private?
- Will ECI need to tariff services?

Thanks for your help and interest.