Attachment 20170905164454-623.p

20170905164454-623.p

SUPPLEMENT

Supplement

2006-01-30

This document pretains to ITC-ASG-20060130-00081 for Assignment on a International Telecommunications filing.

IBFS_ITCASG2006013000081_1627036

                                                                                         Pro Forma        ITC—ASG—20060130—00081
                                                                                         PAETEC Communications, Inc.



O’
 gzéM] m:! A]T:;c%           p issi mate c bout quality"                                                   ym
  ~                               |                     |                                                 AZCEIVED
       Jan iary27, 2006                                                                                     JAN 3 0 2006
       VL JE E_I ERA L[ SX PI ES                               :                                     6 era‘Co nmumcatfons Com nission
                                                                                                             C fnca of Secretary

       Ma lene1. Dotoli, { ec ret iry                                                            *
       Fed sral C omminizatior s Cor 1x ission
       Inte m: ticnal B iweau — Folicy
       Wi eliae Comp etiio i F urcau — CPD —— 214 Appls.
       445 Tivelfth St:ee: S V
       Wahirg!lon, DC 2.05 54


               Rs:; Notif ca tion cf I‘ro Forma Assignrient; Surrend er of Se ‘tion 214 Authorit;
                     File Mo. 11 C—21.1—19960823—00397

       DeirMs. Dortch:

               Pursuant to S sctior 214 of the Communication s Act f 95 4, as amen led (the "Act‘) and
       Sec i0i1s 33.24(d) an 1 63.18 cf t 1e Code of Federal Re gul ati : ("CFR‘ ), 1‘A ZTEC
       Cor un unications, In. (‘P.AETEC") and Americ:iin Long it es, In :. ("A M L °) (together the
       "Pa ties", hereby nc ‘if / tke Coramission of a pro forn ia : ss: gn ne at vh 2reby
       tele soronm unicatio is :or ipiiniss iffiliated by common owier shi> t av: n erjgzec. and discontir ued
       cert ain operations. Spe ifically, PAETEC and AMLL, w ic ia:e »ota vhclly —owned
       sub :id ar es of PAE] EC Corp., inderwent a transaction c n D)ecen ber 3 1, :0( 5 whereby AlMLL
       mei ged inito PAETE: 3, ‘A ETEC took over providing sem ice tc th: AMLL ct stomers and
       ANV LL hiis discontin i1e(| providi ag service to its customes ( he "I ransa stion‘ ).

               In support of this Notification Letter, the Parties state as fo lows

       J.      The Parties

             \A.       PAETEC Communications, Inc.

               PAETEC is a privately—held Delaware corporation with principal offices located at One
       PAETEC Plaza, 600 Willowbrook Office Park, Fairport, New York 14450, (877) 340—2600.
       PAETEC is authorized to provide facilities based and resale carrier international services
       pursuant to Section 214 authorization granted by the commission in File No. ITC—214—199809—
       05—00658 (November 6, 1996). PAETEC is also authorized to provide interexchange and/or
       competitive local exchange service in numerous other states pursuant to certification,
       registration, or tariffrequirements, or on a deregulated basis.

               PAETEC is a wholly owned subsidiary of PAETEC Corp., a pn'vately held Delaware
       corporation with a principal address of One PAETEC Plaza, 600 Willowbrook Office Park,
       Fairport, NY 14450. PAETEC Corp. is the holding company of several subsidiaries, including


                                                                    —1 —
                      . PAETEC Communications, Inc. | One PAETEC Plaza | 600 WillowBrook Office Park | Fairport, NY 14450


 both Partles in this proceeding. Further information regarding PAETEC Cor>. is provided in
_ Section [LC. below.

           B.     American Long Lines, Inc.

        AAMLL is a privately—held Pennsylvania corporation with prir cipal of ices located at O ie
 PAETEC Plaza, 600 Willowbrook Office Park, Fairport, New York 4450), (37") 340—2600.
 AMLL isauthorized to provide facilities basedand resale carrier inte mmation: 1 s »rvices pursua it
 to Section 214 authorization granted by the commission in File No. I TC—21419960823—00:9"
 (October 10, 1996); AMLL offers resold local and long distance tele comtau: ric ations service: in
 markets throughout the United States, primarily in the Northeast Uni :ed States.

           AMLL also is a wholly owned subsidiary of PAETEC: Corp., a privatly held Delawar :
  corporation with a principal address of One PAETEC Plaza, 600 Wil lowbroc k Office Park,
  Fairport, NY 14450. Early in 2005, PAETEC Corp. received appro val fron. the Commissior tc
— acquired AMLL in WC Docket No. 05—19, DA 05—179 (January 26, :‘005).

           C.      PAETEC Corp.
       Although not a party to this Application, PAETEC C »rp. is t! e controlliig entity of be th
 PAETEC and AMLL and therefore the following ownership informs tion is bein g provided
 pursuan to the Section 63.18(h) of the CFR:

           The following entities directly own ten percent (10% ) or mor : of the »quity of PAETEC
  Corp.:

                  Name:                           Madison Dearbormn Cap ital Part ners III, L.?.
                  Address:                        Three first National Plaza
                                                  Suite 3800
                                                  Chicago, IL 50502
                   Citizenship:                   U.S.A.
                   Percentage Owned:              27:3%‘
                   Principal Business:            Equity Investment




           * Includes shares held of record by Madison Dearborn Capital Partners IH, L.P. (MDCP), shares held of
  record by Madison Dearborn Special Equity III, L.P. (MDSE) and shares held ofrecord by Special Advisors Fund I,
  LLC (SAF).



                                                               —7.
                  PAETEC.Communications, Inc. | One PAETEC Plaza | 600 WillowBrook Office Park | Fairport, NY 14450


                 Name:                          TheBlackstone Group
                 Address:                       345 Park Avenue
                                                31" Floor
                        .                       New York, NY 10154
                 Citizenship:                   U.S.A. .
                 Percentage Owned:              19.5%"
                 Principal Business:            Equity Investment                         ,

        No other person or entity directly or indirectly owns ten percent (10%) or more of the
equity of PAETECCorp. Notwithstanding the foregoing disclosures, PAETEC also reports that
the followingindividual controls PAETEC Corp. by virtue of super—voting rights associated with
the class of PAETEC Corp. stock he holds, although his equity ownership interest in PAETEC
corp. is less than ten percent (10%).

                 Name:                          Arunas A. Chesonis
                 Address:                     — 18 Buckthorn Run
                                    Victor, NY 14564
                 Citizenship:       U.S.A.
                 Percentage Owned: .©5.98%
                 Principal Business:            Individual


IIL     DESIGNATED CONTACTS

        All matters related to this Notification shouldbe addressed to the following:

                 Mary K. O‘Connell, Esq.
                 Senior Corporate Counsel
                 PAETEC Communications, Inc.
                 One PAETEC Plaza
                 600 Willowbrook Office Park
                 Fairport, NY 14450
                 Tel: (585) 340—2669
                 Fax: (585) 340—2563
                 E—mail: mary.oconnell@paetec.com

IV.     CERTIFICATION OF PRO FORMA ASSIGNMENT

        As detailed above, both AMLL and PAETEC are wholly—owned subsidiaries of PAETEC
Corp. The merger of AMLL into PAETEC has resulted in an assignment from one corporation
(AMLL) to another corporation {PAETEC) owned and controlled by the same stockholders
without any change in their interests. The Parties hereby certify that the assignment was pro
forma, and that, together with all previous pro forma transactions, does not result in a change in
the actual controlling party.

       > Includes shares of common stock owned of record by Blackstone CCC Capital Partners L.P., Blackstone
CCC Offshore Partners L.P. and Blackstone Family Investment partnership III L.P.



                                                             «3 —
                PAETEC Communications, Inc. | One PAETEC Plaza | 600 WillowBrook Office Park | Fairport, NY 14450


       By way of background, the Parties providethe followinginformation:

        3.     Early in 2005, PAETEC Corp. decided to acquire AMLL in order to expand
PAETEC Corp.‘s telecommunicationsoperations in a cost—efficient manner, thereby enhancing
its competitive position and ability to provide integrated telecommunications services to
customers nationally. After receiving approval fromthe Commission and the requisite state
regulatory agencies, PAETECCorp. and AMLL consurnmated the transaction. AMLLthereby
joined PAETEC as a wholly—owned subsidiary of PAETEC Corp. However, AMLL and
PAETEC continued to maintain separate billing systems, customer service operations, and other
internal processes that were largely duplicative. In order to eliminate redundancies and
inefficiencies, and to further streamline company operations, the Parties decided that they should
consolidate their administrative andbusiness operationsinto a unified system. To that end, on
December 31, 2005 the Parties merged AMLL into PAETEC, transferred all of AMLL‘s
customers to PAETEC, and discontinued AMLL‘s operations. A diagram depicting the
transaction is attached hereto as Exhibit A.

       11.     AMLL sent notice to its customers pursuant to Section 64.1120(e)(3) ofthe
Commissions rules, thatit intended to discontinueservice at least thirty (30) days prior to the
transition of service to PAETEC. The discontinuance notice, which was mailed to customers on
November 21, 2005 is attached hereto as Exhibit B. AMLL‘s customers did not experience any
disruptions in service, and there will be no immediate changes to the rates and services provided
to AMLL‘s existing customers. Upon expiration ofanyservice contracts with AMLL‘s
customers, those customers will have the option to continue service with PAETEC pursuant to its
then—current rates, terms, and conditions or other negotiated agreements, or to select service from
another telecommunications service provider.

        ii1.    Because the Parties are managed by the same team of well—qualified officers and
directors, key personnel in charge of the companies‘ operations have not changedasa result of
the merger and discontinuance. PAETEC‘s management, which oversees AMLL‘s current
operations, have ensured that AMLL‘s customers continueto receive high quality and innovate
services before and after the transition. Affected customers have received the same services
from PAETEC that they previously received from AMLL, and PAETEC will continue to provide
services pursuant to its own certificate of authority, as referenced above.

       iv.     The primary objective of the Transaction was to achieve greater corporate
efficiencies by eliminating duplicative billing systems, customer service operations, and other
internal processes maintained by the Parties. The Transaction will serve the public interest by
combining the financial resources and complementary operating, technical, and managerial
strengths of PAETEC and AMLL to better serve the companies‘ constituent subscribers. The
Parties anticipate that the Transaction will result in a more efficient company better equipped to
accelerate its growth as a competitive telecommunications provider and that Transaction will
enable PAETEC to strengthen its competitive position, which will inure to the benefit of
consumers through improved service. The Transaction will also ensure continued provision of
high quality, affordable telecommunications services to existing customers, and should promote
competition in the telecommunications services market by offering consumers a cost effective
and competitive alternative.



                                                            _4_
               PAETEC Communications, Inc. | One PAETEC Plaza | 600 WillowBrook Office Park | Fairport, NY 14450


         v.      PAETEC serfifies Jursuant to Sections 1.2001 through 1.2003 of the
 ‘Commission‘srules that :s not subject to ‘a denial of Federal benefitspursuant to Section 5..01 of
_ the Anti—Drug Abuse Act of 1998".

 v.      CONCLUsION
        As described above, AMLL and PAETEC are wholly—owned sub31d1anes of PAET                                      C
 Corp and they consummiated : pro forma transaction on December‘31, 2005, whereby AAX                                 [L. /s
 Section 214 authorization was assigned to PAETEC. This notice is bemg filed within thirt                             ; (}0)
 days after completion of ‘he assignment as permitted under Section 63.24 of the Commissi                             m‘s
 —rules. Because PAETEC holds its own Section 214 authorization, AMLL‘s Section 214 is
 duplicative. Accordingly, the Parties respectfully notify the Commission ofthe Transactio 1, : nd
 surrender AMLL‘s Section 214 authority to the Commission.

         Please date—stamp the extra copy ofthis filing, and return it to us in the enclosed se £—
 addressed stamped envelope. Should you have any questions with respectto this matter, p ea ie
 do not hesitate to contact the undersigned. >

                                                            Respectfully suibtnit:ed,


                                                          tllu, 4.0 emw
                                                            Mary K. O‘GConnell, Esq
                                                            Semior Corporate Counsel
                                                            PAETEC Communications, Inc.
                                                            One PAETEC Plaza
                                                            600 Willowbrook Office Park
                                                            Fairport, NY 14450
                                                            Tel: (585) 340—2669
                                                            Fax: (585) 340—2563
                                                            E—mail: mary.oconnell@paetec.com

 Date:   January 27, 2006

 cc: George Li (via email)
      Susan O‘Connell (via email)
      David Krech (via email)
      Renee Crittendon ({via email)
      Tracey Wilson— Parker (via email)
      Alexis John (via email)
      Kimberly Jackson (via email)



         > 21 U.S.C. § 3301




                                                               C3.~
                 PAETEC Communications, Inc. | One P_AETEC Plaza | 600 WillowBrook Office Park | Fairport; NY 14450


                                             EXHIBITS


Exhibit A     >            Pié/Post-Mérger Corporate Structure

Exhibit B                  Diséontinuan‘ce Notice




                                                  — 6.—
      PAETEC Communications, Inc. | One PAETEC Plaza | 600 WillowBrook Office Park | Fairport, NY 14450


                                       EXHIBITA
                   j Pre/Pos't-Merg,er' Corporaté 'Strucmre




                                             ~7—
PAETECG Com_municatioh's,l Inc. | One PAETEC Plaza ]'500 WiHowBrook Office Park | Fairport, NY 14450


                                  CorporateStructure — PRE Mer"ge:r




                           |           |               | PAETECCorp




| MEECGRHCOp |MSECGomicios|                    _ MHE —_| MEKChignd                                                   AmertanLongLinsnc
  |           | ~ ofVirgaiaInc.            Communications, Inc. |         SolutionsGroup Inc.




                                  «        *                  ~   8   ~    —



                . PAETEC Communications,Inc. | One PAETEC—Plaza ‘| 600 WillowBrook OfficePark | Fairport,.NY 14450


                                   Corporate Structure — PO,ST Merger _




                                                            PAFTECCp.              | _
                                                    |           Delawae o|




PABTECCapital Corp    PAETEC Communicatiom                                                  PAETEC Integrated               PAETEC Software Corp.
                           ofVirginia Inc.                                                 Solutions Group, Inc. |               New York




                                                                 ~=9—
                     PAETEC Communications, Inc. | Oné PAETEC .!’Iaia' | 600 WillowBrook Office Park | Fairport, NY 14450


                                      EXHIBIT B

                               Discontinuance Notice




                                            — 10 —
. PAETECCommunications, Inc. | One PAETECPlaza |. 600 WillowBrook Office Park|_Fairport; NY 14450


        APAETEECoinpa i.
                                                                                              ®



          AMERICAN _ONG LIME3, NZ. and P.AE THC COIMAIUNICT O NS, INC.
                                                 "Tass ona:e Alo it Qua it

 November 21 & 2C Of

 Dear Valued Americar Long Line s Cus to ner:

          American Lon j Lings, nc. ( AML ") and 22                    ECEC; Communications , l 1c ("PAETEC") ars
    ssionate about brinting y ou, our \ allue| castonmie                , cus lity services. AMLL hecarme an atfilfate o
 PAETEC in Febraaly ::‘005. PAETEC a privatel; t                       eli! c on peny, h as beer piov ‘ding an enh:ancec suite
 of communication s am iess :o cas orme s since 1696                   . W th an ur wivering :o nruitinent to qu:alil y,
 PAETEC now se ves i nore tha i 11,00) nmiedium .an                    1 fiirg 2iz 2d bt sir ess cus to ners throu ghou : t!l e
 United States.

         AMLL ar d PA        ZTEC ar »r ow       c in     bining tae   r c pera ions in orcer to m ix) mize the tenefis hetwe
 may bring to you The         resultw li ie      a : in   jle com»a    y P AE TEC. FAETEC w ll cor tinue providi 1igthe
 services you curr enily     receive 1 oi n .    \Iy LL   . FAETIZC    w ll L etininvoi :ing for yo ir su rent seivice: o icr
 about January 1, 2( 0¢      , ger dinj & ll t   eces     sa y regul   atcry ap provils                       |

         AMLL and PAECES w It vo k 0 snuure the tthe ra is‘er of yaour service ; to PAETIIC is _
 seamless. Your curer tservsice s viill cont us to be orcviddee und ar ‘he: same i ats, terms nc con| itims _
  that you currenth enjo ; viith AML .. Ary uture chaliges niates, te ms and coniliti ons of sarvic : v ill e
  provided to you zs req uired by avv/; io‘ ve sei, no chiinvie: a e aniicima‘ed. PAZIEC will be resp on sitkle
  for handling any quest ons or is st as pt or to and du in jtiie rens‘er. PAETEC will also be respc ns ibl 3 for
  any carrier chance ch:iirges the tria b e ssociated wi h he tranife®. If you have:placed a "free e o1 the
~ current services, the fi seze wil be Ii te 1 (Fnseded) an 1 j ou r sermvic 3s will be 1 ‘ansfarred to PAE TE C. As
  the service subscrit er you must c on act y our local s ervic : ; roridar ‘f such pre vicer is not FAET:C, to re—
  establish freeze prote« tion for you r ser ic as after th : cate c‘fina tr ansfer.

          As always, you have the right to choose a different carrier for your services. If you do take steps
 to transfer your service to a different carrier you will need to make sure that the new service is ordered
 and provisioned no later than December 31, 2005. Please note, that choosing to terminate services may
 result in early termination charges being assessed per your AMLL contract. If you are a customer of
 AMLL on the date of the transfer and you have not informed AMLL that you have made arrangements to
 switch to a carrier other than PAETEC, your services will automatically be transferred to PAETEC.
         AMLL and PAETEC are passionate about quality and committed to providing you with
 outstanding customer service, as well as an enhanced suite of products aimed to meet all of your
 communications needs. We look forward to continuing the mutually beneficial relationship that you have
 built with AMLL. If you have any questions, please do not hesitate to contact your AMLL account team or
 PAETEC to learn more about the company and the service offerings. Please call us toll free at 1—800—
 922—7730 or visit the PAETEC website at www.paetec.com.
                                                                 Cordially,

                                                                 Doug Derstine _
                                                                 VicePresident



                                                                  >>
                    PAETEC Communications, Inc. | One PAETEC Plaza. | 600 WillowBrook Office Park | Fairport, NY 14450.



Document Created: 2019-05-26 06:17:58
Document Modified: 2019-05-26 06:17:58

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