Description of Pro Forma Transaction

0006-EX-TU-2011 Text Documents

New Cingular Wireless PCS, LLC

2011-06-20ELS_117001

                                                                              FCC Form 703
                                                                                    Exhibit 1
                                                                                  Page 1 of 4
              Description of Pro Forma Transactions and Public Interest Statement

       Pursuant to Section 5.79 of the Commission’s rules,1 BellSouth Enterprises, Inc.
(“BellSouth Enterprises”) and AT&T Inc. (“AT&T”; collectively with BellSouth Enterprises,
“Applicants”) hereby seek consent for certain pro forma transactions that are set to occur on June
30 and July 1, 2011 as part of a planned internal reorganization of wholly owned subsidiaries of
AT&T.2 This reorganization will result in the pro forma transfer of control of experimental
authorizations held by New Cingular Wireless PCS, LLC (“New Cingular”).

        Specifically, on June 30, 2011, BellSouth Enterprises will merge into its immediate
wholly owning parent, BellSouth Corporation. As a consequence, BellSouth Mobile Data, Inc.
(“BellSouth Mobile Data”), which currently is a wholly owned direct subsidiary of BellSouth
Enterprises, will become a wholly owned direct subsidiary of BellSouth Corporation. The
following day, on July 1, 2011, immediate ownership and control of BellSouth Mobile Data will
be transferred from BellSouth Corporation to AT&T.3 As the transactions do not change
AT&T’s position as the ultimate controlling parent of BellSouth Mobile Data (and the
subsidiaries it controls), the transactions are pro forma in nature.4

       These transactions will also result in the pro forma transfer of control of authorizations
held by entities under the de facto control of AT&T Mobility Corporation, which is a wholly
owned direct subsidiary of BellSouth Mobile Data. Because AT&T Mobility Corporation
controls New Cingular, this transaction will result in the pro forma transfer of control of New
Cingular’s experimental authorizations.5


1
         47 C.F.R. § 5.79.
2
         Please see the attached charts for a pictorial representation of the corporate structure before and after the
reorganization.
3
          Both the June 30, 2011 and July 1, 2011 transactions require prior consent for some of the affected licenses.
Given their proximity in time, however, BellSouth Enterprises and AT&T are filing the forms as if there were a
single transfer of control from BellSouth Enterprises to AT&T instead of a transfer of control from BellSouth
Enterprises to BellSouth Corporation and a second transfer of control from BellSouth Corporation to AT&T.
4
         In re Fed. Communications Bar Ass’n’s Petition for Forbearance from Section 310(d) of the
Communications Act Regarding Non-Substantial Assignments of Wireless Licenses & Transfers of Control Involving
Telecomms. Carriers, Memorandum Opinion and Order, 13 FCC Rcd. 6293, 6299, ¶ 8 (1998) (“FCBA Forbearance
Order”) (“corporate reorganization which involves no substantial change in the beneficial ownership of the
corporation” is pro forma in nature); cf. 47 C.F.R. § 63.24(d).
5
          Applications requesting prior approval for the pro forma transfer of control of private radio, VSAT and
earth station authorizations held by New Cingular are also being filed with the Wireless Telecommunications
Bureau and the International Bureau. In addition, the parties separately filed an application with the Wireless
Telecommunications Bureau to transfer control of WCS licenses held by BellSouth Mobile Data, and the Bureau has
consented to this application (ULS File No. 0004714918). All other authorizations impacted by these transactions
are eligible for forbearance from the requirement that advance consent to pro forma transfers of control be granted,
and will be filed after the transactions have occurred. 47 C.F.R. §§ 1.948(c)(1), 63.24(f)(1).


                                                                                     FCC Form 703
                                                                                           Exhibit 1
                                                                                         Page 2 of 4
        As AT&T Mobility Corporation, BellSouth Mobile Data, BellSouth Enterprises, and
BellSouth Corporation all are wholly owned subsidiaries of AT&T, no substantial change in
control of the affected licenses will occur.6 The Commission has stated that, in situations “where
no substantial change of control will result from the transfer or assignment, grant of the
application is deemed presumptively in the public interest.”7 Applicants request that
Commission staff expeditiously grant these applications.




6
    FCBA Forbearance Order, 13 FCC Rcd. at 6299, ¶ 8.
7
    Id. at 6295, ¶ 2.


                           FCC Form 703
                               Exhibit 1
                             Page 3 of 4
  Pre-Reorganization



           AT&T Inc.

                 100%

          BellSouth
         Corporation

                 100%

          BellSouth
       Enterprises, Inc.

                 100%

          BellSouth
         Mobile Data,
            Inc.

    100%

        AT&T Mobility
         Corporation

0.0000001%
(controlling)
       AT&T Mobility LLC

                 53.53%

       AT&T Mobility II
           LLC

                   100%

   New Cingular Wireless
        PCS, LLC


                                            FCC Form 703
                                                Exhibit 1
                                              Page 4 of 4
           Post-Reorganization

                  AT&T Inc.

                100%          100%

        BellSouth              BellSouth
       Mobile Data,           Corporation
          Inc.

    100%

      AT&T Mobility
       Corporation

0.0000001%
(controlling)
    AT&T Mobility LLC

                53.53%

     AT&T Mobility II
         LLC

                100%

   New Cingular Wireless
        PCS, LLC



Document Created: 2011-06-20 07:58:35
Document Modified: 2011-06-20 07:58:35

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