Attachment 20170207162004-993.p

20170207162004-993.p

SUPPLEMENT

Supplement

1999-04-02

This document pretains to ITC-ASG-19990402-00238 for Assignment on a International Telecommunications filing.

IBFS_ITCASG1999040200238_1420165

                         Categories of Services fLZor
                                       (Stresmline/Non——stre
o 9 9 a) a, § 1‘;~



                      ASSIGNMENT OF LICEN
                       GLOBAL FACILITIP




                                                     SEEVICE
                                                mnig REQAL SERVICE
                      LIMITED GLOBAL FACILITIES— BA 3ED SER\RE/I‘
                       GLOBAL RESALE SERVICE .
                      LIMITED GLOBAL EACILITIESfBAFED sERV:
     O




       O              LIMITED GLOBAL RESALE SERVIC
       C
       §
                      INMARSAT AND MOBILE SATELLITE SERVICE
                      SWITCHED RESALE SERVICE,_          _
       B2               TRANSFER OF CONTROL—
       C                SUBMARINE .CABLE LANDING LICENSE
       O             .. INTERNATIONAL SPECIAL PROJECT
                             +¥

                                  D#




       Description of Application:


                                        Bef re the                                                                                              <§ » @ P
                        FEDEFI.AL COMI IUNICATIONS COMMISSION
                                           W; shing ‘on, C .C. 20554

In th: M[latter o1                                                                                                                              @fl}‘l\%%%




                                                           o.X uh clh cud Neccld ts §6. Ao ul 0CP N. P NE P NU § cR
COR EC OMA ‘ JE WCO, INC.                                                                                                           \_Q\\   fi
                                                                                                                        ‘,Q,Q;F ‘\E\'
        ind

USN COMNV U «I CATIONS MIDWEST , INC.

        ind                                                                                                           File Nc. ITC—99—__________

USN COMNV U «I CATIONS NORTHEA ST, N IC.

Af pl ca:ion for au hority pursuant :o Sec:ion 2 .4
Ccm nu nicat or s . ict of 1934, as unended,
to as: ig i Sec io 1 2 14 authorizations


                                             £ PPL] CAT: ON                                                                                          [

        ‘2oreCoian | Newco, Inc. ("CoreC »mm ] Yewe«." or tie "Pr »posed Assignee"),‘ USN

Ccm: nunicat or s 1 idwest, Inc. ("USNC. MW"), and USN Tomn unications Northeast, Inc.

("US NC‘—NE‘) (joi ntly, "Proposed Assig ors") ‘collec:tivel, the ‘ Applicants"), by the

undesiy med cot ns 2l, hereby request authprity, Jursuant to Secticn 214 of the Communications

Act of 1934, as an ended, 47 U.S.C. § 214, and Section 63.18 of the Commission‘s Rules,

47 C.F.R. § 63.18, to assign    the Section 214 authorizations of USNC—MW and USNC—NE (the

"USNC 214 licenses!)k«
        KX Nex_
                    to CoreComm Newco."
                              1 /

                                                 C   o


        ‘ CoreComm Newco currently holds Section 214 authorization to provide international service
on a global basis as both a facilities—based carrier and resale carrier to all countries of the world except for
those on the Commission‘s exclusion list. (File No. ITC—98—338 (effective June 17, 1998).

        * Under the relevant transaction, the ultimate parent company of CoreComm Newco, CoreComm
Limited ("CoreComm Ltd."), is in the process of acquiring substantially all of the assets of USN
Communications, Inc. ("USNC"), the parent company of USNC—MW and USNC—NE.


        Furthe more, as describe 1 belo w and in the reque St for Speci i Temporary Aut 10rity

("STA Reques :") as: ociated witi this : pplic:ition, Applivants 1 espec fully equest expdited

action re gardi ig thi;. app_li:atior . Cor:Com n Newrco‘s iltim: te par »nt company, Cor :Com m

Limited "Corm:Com n Ltd."), ha s exec ited a 1 agre ameni to purchase substantially all of the

assets of the P: opost d Assignor: ‘ pare at cor ipany USN Com nunic itions Inc. ("USN C"), 1inder

the supervisior of th: U.S. Bank ruptc} Court, whi th has schec uled : hearing for April 2, 1939 to

consider the p1opose d sale. Exj editec. actio i regarding ‘his A pplic: tion vill allow C( reConm

Newco to prov ide ec ntinuous se vice 1 > the : ‘ropo: ed Assigno s‘ existing customer ba ie anc will

afford th : Ban ruptc y Court gre iter cc mfort that a »prov i1 of t ie pro J0sed sale will be 1efit

USNC‘s credit »rs ar d customer:.

        A s disc ussed more fully »elow USNC—MV"‘s Setion :14 at thorization initial y wa:.

obtained in the name of U§E§f mmuw icatic ns, Iq .. anc USNC—NE s Sep ion 214 aut 10riz: tion
                                          ~——_     _       m   .                  e   ~



initially was ol taine 1 in the narm eCS
       omighs                          of U nited Telem anage
                                                            ge ment
                                                                  ME Services,
                                                                       2C      In:. CoreCon m Ltl.,
                                                                                                 ,

through its wh »lly—o vned subsic iary, :oreC mm Neweo is awompe titive arovider of ntegr ited
                                    —


telecomtr iunic; tions services to |usine ss and residntial :ustomners i1 the United State:.

CoreComm/W
     _—
           urrently pre vides intern ational telec omminicat: ons services pursuant t«
uennel*



Section 214 authorization granted by this Commission. Neither CoreComm Newco nor any of

its affiliates or subsidiaries currently is affiliated with the USNC entities or any of their affiliates

or subsidiaries.

        As described herein, grant of the requested assignment of the USNC Section 214 licenses

will permit the customers of those entities to be served by CoreComm Newco, a strong and

innovative competitor. Accordingly, grant of this Application is in the public interest.

                                                       2


        In support of this Application, Appl cants subm t the i ollow ng informa ion:

I.      THE PARTIES

        A.       CoreComm Newrco

        CoreComm Newcods a Jelav    are ccrpora ion a1 d an i idirect, wholly—o vaed ; ubsid lary
                               YX P N*
of CoreComm LtgéoreComm Ltd. i ; a puljlic ce mpan y trad d on ‘he N. \SDA Qsto :k exc hange
                                                                       /



underes 1Lc
        the symbol C?)MMF,‘witfi heac quart »rs §at 110BsE §9‘h { t., 2¥
                                                                     New Yo: k; Ne w Yok 100 22.

—CoreComm Newco is currently autho ized to offe: intet aatior al ser rices p ursus nt to lectio i 214

authorization granted by this Cemmis sion." As evidenc 2d by the in orma ion siibmitt :d wi h

CoreComm Newco‘s applicatio1 for { ection 214 u}thm izati0 1, v‘vhi sh the Com nissicn

approved, boreComm Newco is well— qualified to serve the ex isting custoner b ise of the U NC

entities. CoreComm Newco‘s existin ; global Section 214 aut horiz: tion e atitle: it to: (1) r¢ sell

the international services of autliorize 1 U.S. comtion ci rriers for th : provision >f inte rnatic nal

basic switched, private line, data, tele ision and N usine is sen ices t ) all iiiterna :ional point:

subject to the terms and conditions of Section 63. .8(e)(‘) of t ie Co nmission‘s ules; ind (@) to

operate as a facilities—based carrier su yject t» the terms : ind cc aditio as of | sectic n 63.1 8(e)(1 ).

CoreComm Newco is considered a nc n—dominant carrie : under the :omissiot ‘s rules.

Following consummation of the proposed transaction, CoreComm Newco will continue to be

qualified to operate as an authorized non—dominant international carrier.




        3 File No. ITC—98—338 (effective June 17, 1998).

                                                       3


        B.      USNC, |JSNC—MW and USN—I [E

        USNC is a Dela vare corporation with p ‘incip.i1 offices located at 10 South Riverside

Plaza Chic ig, IL 606( 6 U;SNC, ‘hrough vari jus of erating subsidiaries, is aut 10rize 1 to

provide int ‘as :ate intere «change services :n 48 : tates ; nd to provide ocal t :lephone se vices in

18 states.* A 1ditionall », USINC is authorized t iroug! : the FEroposed Trans ‘erors to off :r

internation i1 : ervices piirsuant to Section 214 a ithori::ation;; gran‘ted by this Corimission: (.)

File No. IT C— 35—213 (e fective Apr 1 24, .995), initia ly held in the rame USN Comm inicat ions,

Inc., which U 3N subsec uent!:/ re—n:iuimed JSN Comm inications Midwest, inc. (‘ USNC—MVW ");

and(2) Fil: N o. ITC—94 —328 (effective July 16, 1994) initislly held :n the aame United

Telemanag : ent Services, In:. ("UTS"), which USN °2 subs equently re—named USN

Communic ati ns North :ast, I 1c. ("USNC—NE")

II.     RE QUEST FO ? AU THO} TY TO 4 SSIG NTHE PROF OSED ASIGN()RS‘ 214


        COn Fe »uary 19, 1999, CoreComni New co‘s i idirec ; parent company, CoreCortnm Li d.,

executed ai1 4 sset Purc! ase A greenient (tie "A reem ‘nt") to acquire substantial y all of the

assets of U 3N C. In cor necticn with that ransa :tion, ‘he Proposed A ssignors propose :o ass gn

the USNC 211 licenses to CoreComm Newco t enable CoreComm Newco to serve the exis ing

customer base of the USNC entities currently served under those Section 214 authorizations.

        Concurrent with the parties‘ execution of the Agreement, USNC and twelve ofits

subsidiaries, including USNC—MW and USNC—NE, filed voluntary petitions under Chapter 11 of



      * USNC‘s operating subsidiaries include, among others, USN Communications Midwest, Inc.,
USN Communications Northeast, Inc., USN Communications West, Inc., USN Communications Atlantic,
Inc., USN Communications Southwest, Inc. and USN Communications Maine, Inc.

                                                    4


the United Stites Biinkruptcy Code, 11 U.S.C. § 101, et seq. n the U.S. Bankn ptcy Court for

the Dist:ict of Delauvare. Simultaneously, USNC and tt e sell ng supsidia ies filed a niotion

seeking the B:inkruptcy Court’s approval of the sale of their a ;sets nd business as a going

concern to CoreConim Lt1. under the Agreement, as the best vay to maximize creditor

recoveries anc. preserve uiiinten upted service to custom »rs. The Bankrup cy Cc urt hss scheduled

a hearing for \pril 2., 1993, to c ansider USNIC‘s motion for a1 thoriz ation of the propc sed sale to

CoreCommm L :d. Stbject :o reqiired regulatory approv:ls, the bank uptcy process is expected to

be concluded 3y April 2, 999.

        As describec. in th: App icants‘ request for special ten porar ; auth prity, »:xpedited action

regarding this Applicatior will serve the publlic interest in sev :ral respects. First, in combination

with grant of the rec uest for special temporery authority, expe ditious acticn will enab.e

CoreCommm Nzsweo‘s imn ediate: and continuied servicin;; of U SNC‘ ; customer accour ts upon

consummatio1| of th : sale follovring asprov;i 1 of the Bar krupt :y Coirt. T ais wi 1 ensure the

continued pro‘zision of reliable, uninterrupted service to thous inds c resiclential and t usiness

customers dur ing any interim period. Second, expeditious act on will facilitate the ba ikruptcy

process by aff »rding the Court greater comfurt thet approval c f the proposed sale will benefit

USNC‘s creditors and existing customers. Finally, and perhaps most obviously, expeiitious

approval of the proposed amended Application will promote the continued development of

effective competition in the telecommunications market by allowing the existing customer base

of the Proposed Assignors to be served by a strong, experienced competitor committed to

preserving and building upon USNC‘s existing customer base and expanding consumer choice

through the provision of advanced, high quality products and services.

                                                   3


IV.    INFORMATION REQUIRED BY SECTION 63.18

       Pursuant to Section 63.18(e)(5) of the Commission‘s Rules, 47 C.F.R. § 63.18(e)(5),
Applicants submit the following information:

       (a)    Name and address of Appicnts:

              Proposed Assignee:

              CoreComm N#w:o, Inc.
               110 East 55"" Sitre et
              New York, New Yok 10022.
              Telephone: 212/00¢—8485
              Facsimile: 212/906.— 8497

              Proposed Assignurs:

              USN Comnmuunic: tions MiIiwest, Inc.
              10 South Riversice l‘laza
              Chicago, Illinois 50606
              Telephone: 312/006—3600
              Facsimile: 31:2/474—0814

              USN Communic: tions North sast, Inc.
              10 South Riversice l‘laza
              Chicago, Illinois 50006
              Telephone: 312/906—3600
              Facsimile: 312/4‘‘4—)814

       (b)    CoreComm New:o is a comp an, organized underQhe laws—of Delaware. Both
              USNCentitiesar:organiz d under the laws of Delaw'm:e./CeoreComm Ltd. and
              USNC have ex:ecuted an A greement under which CoreComm Ltd. will purchase
              substantially all of USNC‘s assets. In connection with this transaction, the
              Proposed Assignees propose to assign the USNC Section 214 licenses to _
              CoreComm Newco. Following consummation of the transaction, CoreComm
              Newco will service the customer accounts currently served by the USNC entities
              under those entities‘ Section 214 authorizations.


        (c)        Correspondence concerning this Application should be sent to:

                   Eric J. Branfman, Esq.
                   Lawrence A. Walke, Esq.
                   SWIDLER BERLIN SHEREFF FRIEDMAN, LLP
                   3000 K Stieet, N.W ., uite 200
                   Washin gto a, 1J.C. :0( 07
                   202/424.—7;:0€ (Tel)
                   202/424—7045 (Fax

with copie:s to:

                   Christopher A. FEoli
                   Assistant Cieners1 C ou isel
                   CoreComr i Lim: tec
                   110 E. {9" St
                   New York New Ycork 10022
                   Telephcne (212 906— 3485
                   Facsimile: (212) 90 —£ 497

and

                   Ellen C:ai;;
                   Vice Prosiclent o ‘R :g latory Affairs
                   USN Com: nunications , Inc.
                   10 Sout 1 R iverside Pl;za
                   Chicage, L. . 63606.
                   Telephcne 312/006 —3000
                   Facsimile: 31./4 74— 08 14

        (4)        The twc Section 211 li sense:. held by the USNC entities are as follows: (1) File
                   No. ITC—95—2 13 (effec ive A pril 24, 1995), initially held in the name USN
                   Communications, Inc., which USN subsequently re—named USN Communications
                   Midwest, Inc. ("USN—MW"); and (2) File No. ITC—94—328 (effective July 16,
                   1994), initially held in the name United Telemanagement Services, Inc., which
                   USN subsequently re—named USN Communications Northeast, Inc. ("USN—NE").
                   Under both authorities, USN is authorized to provide international switched
                   services by reselling the international switched services of other carriers, pursuant
                   to 47 C.F.R. § 63.18(e)(2).

                   CoreComm Newco, Inc. is authorized to operate as both a facilities—based and
                   resale carrier in accordance with 47 C.F.R. § 63.18(e)(1) and (e)(2). See File No.
                   ITC—98—338 (effective June 17, 1998). CoreComm received authorization to (1)

                                                     J


       resell the international services of authorized U.S. common carriers for the
       provision of international basic switched, private line, data, television, and
       business services to all international points subject to the terms and conditions of
       Section 63.18(e)(2) of the Commission‘s rules and (2) to operate as a facilities—
       based carrier subject to the terms and conditions of Section 63.18(e)(1).

(e)(5) This application seeks authority for the US?TC 214 Licenses to be assigned to
       CoreComni Newco, pursvan: to Section 53.18(e)(5) of the Commissiion‘s Rules
       Under the releva it transaction, CoreComm Newco‘s ultimate parent: company,
       CoreComni Ltd., is in the process of scequiring substantally all of the assets of
         SNC, the parer t company of USNC MW ini. USNC—NE. Following
       cons immatio:i 0 ‘ the transac:ionr, Cor:Com n Newco will provide service to the
       exist ng customers curren‘ly served by the USNC entiticcs under those entities‘
       Section 214 Licenses. As described apove, CoreComm Newco, Inc.‘s Section
       214 nuthor za:ion already excee is the scope of the authorizations at issue in thi;
       Application.

(£)    Nt appliciibl:.

(g)    Not appliciibl:.

(b)    CoreComni Newco is not a foreign carrier and is not afiiliated with any foreign

      «27s%.                                     /                                    Je
       carmier.

  \ Ron:ld Ba: on
                )B aron Capital Goup, |nc., RBaron Capital Management Inc.,
       KN
       B. [CO; fic , ard ‘he Barot A sset F ind colle ctively h )ld shares that constitut
       approximaely1{.1‘%ofthe out standi 1g sto :k of CoreC omm Ltd, The address
       for these comparies is 767 Fftk Aver ue, 24 th Floor, Nuw York, New York
       10153. Sr yder  ua] mital Man agement, L.P., 350 Califoriia Street, Suite 1460, S
       Francisco, Calife mia94104, owns apj )roximately15%of CoreComm‘s
       outstancliny; stocl:. No other shareholders owvn or vote nmore than 10% of
       CoreComni Ltd.‘s cutstanding stock.

       CoreComm Newco and CoreComm Ltd. share officers and directors with another
       publicly traded Delaware corporation, NTL Incorporated ("NTL"). Subsidiaries
       of NTL are foreign carriers in the United Kingdom of Great Britain competing
       with the dominant carrier in that country. The United Kingdom is a member of
       the World Trade Organization. NTL does not have the ability to discriminate
       against unaffiliated U.S. international carriers through control of bottleneck
       services or facilities in Great Britain. A subsidiary of NTL, NTL (UK) Group,
       Inc., is authorized to provide international resale and facilities—based
       telecommunications services. See Files No. ITC—98—161 and ITC—98—163.


           (i)   Applicants certify that they have not agreed and will not agree in the future to
                 accept special concessions, as defined in Section 63.14(b) of the Commission‘s
                 Rules, directly or indirectly from any foreign carrier, as defined in Section
                 63.18(h)(1)(ii) of the Commission‘s Rules, with respect to any U.S. international
                 route where the foreign carrier possesses sufficient market power on the foreign
                 end of theroute to affect competition adversely in the U.S. market, and will not
                 enter into such agreements in the future.

           G)    CoreComm Newco certifies that no party to this application is subject to a denial
                 of Federal benefits pursuant to Section 5301 of the Anti—Drug Abuse Act of 1988.

           (k)   Applicants request streamlined processing of this application because Applicants
                 do not have an affiliation within the meaning of Section 63.18(h)(1)(i) with any
                 foreign carriers or any dominant U.S. carriers.

                                          CONCLUSION
        For the reasons stated herein, CoreComm Newco, USN Communications Midwest, Inc.,
and USN Communications Northeast, Inc. respectfully submit that the public interest,
convenience, and necessity would be furthered by grant of this application for authority to assign
the Section 214 licenses of USNC—MW and USNC—NE to CoreComm Newco. Applicants
respectfully request that the Commission authorize the proposed assignments described herein to
permit the Applicants to consummate the underlying transaction on an expedited basis.


                                           Respectfully submitted,




                                          7‘/ce \g&—
                                           Eric J. Branfman, Esq.
                                           Lawrence A. Walke, Esq.
                                           SWIDLER BERLIN SHEREFF FRIEDMAN, LLP
                                           3000 K Street, N.W., Suite 300
                                           Washington, D.C. 20007
                                           Telephone: 202/424—7500

                                           Counsel for CoreComm Newco

Dated: April 2, 1999

276443.1


                            CERTIFICATION OF TRANSFEREE




       I, Christopher A. Holt, Assistant General Counsel of CoreComm Newco, Inc., hereby
certify that CoreComm Newco, Inc. is not subject to a denial of Federal benefits pursuant to
Section 5301 of the Anti—Drug Abuse Act of 1988.

       Further, I hereby certify that the statements in the foregoing Application are true,
complete, and correct to the best of my knowledge, information, and belief.

                                                  CoreComm Newco, Inc.




                                                   CAtzhe. 0. Htoctleu
                                                  Christofher A. Holt
                                                  Assistant General Counsel

                                                  April 2, 1999 _



Document Created: 2019-04-09 07:46:10
Document Modified: 2019-04-09 07:46:10

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