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Sempra Unit Wins License to Offer Local Phone Service

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From Bloomberg News

Sempra Energy on Wednesday said the California Public Utilities Commission granted its Sempra Communications unit authority to provide local telephone service in the state.

San Diego-based Sempra, owner of the largest U.S. natural-gas utility, said it is considering alliances with telecommunications companies.

The license allows Sempra to offer telecom services using only equipment installed within or on existing buildings and structures. The company said its request to provide service without those restrictions should be approved this year.

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Sempra had sales of $5.4 billion last year. Its utilities, Southern California Gas Co. and San Diego Gas & Electric, have about 6 million customers.

Sempra shares closed unchanged at $18.50 on the New York Stock Exchange.

The PUC has not yet acted on Sempra Communications’ request for full facilities-based authority. Such authority is, however, expected by year-end.

In April, Sempra Communications said it will participate in Aerie Networks, a company that will build and maintain a nationwide fiber-optic broadband network. For that project, local carrier authority wasn’t required because Sempra Communications is not directly involved in building the network infrastructure and it is not marketing the service to customers.

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