Attachment Attachments

This document pretains to ITC-ASG-20140516-00149 for Assignment on a International Telecommunications filing.

IBFS_ITCASG2014051600149_1046689

                                                                       International Section 214
                                                                Partial Assignment Application
                                                                                   Attachment 1
                                                                                    Page 1 of 10

                         Attachment 1 to FCC Electronic Form for
               Partial Assignment of International Section 214 Authorization

        Pursuant to Section 214 of the Communications Act of 1934, as amended, 47 U.S.C. §
214, and Section 63.24 of the Commission’s rules, 47 C.F.R. § 63.24, PRTCommunications,
LLC (“PRTCommunications”) and PRTC Tide Acquisition Company LLC (“PRTC Tide”)
hereby request the Commission’s consent to the partial assignment of international Section 214
authority (as it pertains to certain wireless customer accounts) from PRTCommunications to
PRTC Tide, ultimately to be held as a wholly owned subsidiary of New Cingular Wireless PCS,
LLC (“New Cingular Wireless”), an indirect wholly owned subsidiary of AT&T Inc. (“AT&T”).
As an interim step in the proposed two-step transaction, PRTC Tide will be an indirect wholly
owned subsidiary of PRTCommunications.1 Following consummation of the proposed
transaction, PRTCommunications will retain its international Section 214 authorization and does
not seek to assign the entire authorization by this application.2

Answer to Question 10 – Section 63.18(c)-(d)

Assignor Information (PRTCommunications)

       Contact Information

       Randal J. Odom
       PRTCommunications
       201 Anderson Drive
       Laurens, SC 29360
       Tel: (864) 683-3731
       Fax: (864) 682-8888
       RandyO@prtcom.com

       with a copy to:

       Donald L. Herman, Jr.
       Herman & Whiteaker, LLC

1
        By executing the “Assignor” portion of the foregoing application form,
PRTCommunications is certifying to the accuracy of the application and the appropriate required
certifications as to the “Assignor” only. Similarly, by executing the “Assignee” portion of the
foregoing application form, PRTC Tide is certifying to the accuracy of the application and the
appropriate required certifications as to the “Assignee” only. Since the Assignee, PRTC Tide,
will ultimately be a wholly owned subsidiary of New Cingular Wireless, the responses herein for
the Assignee reflect information related to New Cingular Wireless.
2
     An application was filed for the assignment of wireless radio licenses held by
PRTCommunications. See ULS File No. 0006277388.


                                                                         International Section 214
                                                                  Partial Assignment Application
                                                                                     Attachment 1
                                                                                      Page 2 of 10

       3204 Tower Oaks Blvd.
       Suite 180
       Rockville, MD 20852
       Tel: (202) 600-7273
       Fax: (202) 706-6056
       dee@hermanwhiteaker.com

       International Section 214 Authority

       PRTCommunications holds the international Section 214 authorization that is the subject
       of this application, File No. ITC-214-19990803-00477 (authorization to provide global
       resale services).

Assignee Information (PRTC Tide)

       Contact Information

       Michael P. Goggin
       AT&T Mobility LLC
       1120 20th Street, NW
       Suite 1000
       Washington, DC 20036
       Tel: (202) 457-2055
       Fax: (202) 457-3073
       michael.p.goggin@att.com

       International Section 214 authority:

       PRTC Tide does not hold any international Section 214 authorizations. Post-
       consummation, PRTC Tide will be a wholly owned subsidiary of AT&T. AT&T and its
       subsidiaries/affiliates hold numerous international Section 214 authorizations.

Answer to Question 11 – Section 63.18(h)

Direct Ownership:

The following entity has a direct ten percent or greater direct ownership interest in PRTC Tide:

       Direct Shareholder Name:               New Cingular Wireless PCS, LLC
       Address:                               2200 N. Greenville Ave, 1W
                                              Richardson, TX 75082
       Citizenship:                           United States
       Principal Business:                    Provision of Mobile Wireless Services
       Ownership Interest in PRTC Tide:       100%


                                                                         International Section 214
                                                                  Partial Assignment Application
                                                                                     Attachment 1
                                                                                      Page 3 of 10


Indirect Ownership:

New Cingular Wireless Ownership:3

       AT&T Mobility II LLC
       1025 Lenox Park Blvd. NE
       Atlanta, GA 30319
       Citizenship: Delaware
       Principal Business: Holding Company
       Direct Ownership Interest: 100% percent of New Cingular Wireless PCS, LLC

       AT&T Mobility LLC
       1025 Lenox Park Blvd NE
       Atlanta, GA 30319
       Citizenship: Delaware
       Principal Business: Provision of Mobile Wireless Services
       Direct Ownership Interest: 54% of AT&T Mobility II LLC

       AT&T Mobility Corporation
       1025 Lenox Park Blvd NE
       Atlanta, GA 30319
       Citizenship: Delaware
       Principal Business: Management Company
       Direct Ownership Interest: manager of and controls AT&T Mobility LLC

       AT&T Teleholdings, Inc.
       208 S. Akard Street
       Dallas, TX 75202
       Citizenship: Delaware
       Principal Business: Holding Company
       Direct Ownership Interest: 100% of SBC Telecom, Inc.

       BellSouth Mobile Data, Inc.
       1025 Lenox Park Blvd NE
       Atlanta, GA 30319
       Citizenship: Georgia
       Principal Business: Holding Company
       Direct Ownership Interest: 40% of AT&T Mobility LLC, 100% of AT&T Mobility
       Corporation, 4% of AT&T Mobility II LLC, and 40% of AT&T NCWS Holdings Inc.


3
       The ownership interests provided herein are the actual direct ownership interests held in
the next disclosed subsidiary in the vertical ownership chain rounded to the nearest one percent.


                                                                       International Section 214
                                                                Partial Assignment Application
                                                                                   Attachment 1
                                                                                    Page 4 of 10

       AT&T NCWS Holdings Inc.
       1025 Lenox Park Blvd. NE
       Atlanta, GA 30319
       Citizenship: Delaware
       Principal Business: Holding Company
       Direct Ownership Interest: 100% of New Cingular Wireless Services, Inc.

       New Cingular Wireless Services, Inc.
       1025 Lenox Park Blvd.
       Atlanta, GA 30319
       Citizenship: Delaware
       Principal Business: Provision of Mobile Wireless Services
       Direct Ownership Interest: 42% of AT&T Mobility II LLC

       SBC Long Distance, LLC
       208 S. Akard Street
       Dallas, TX 75202
       Citizenship: Delaware
       Principal Business: Holding Company
       Direct Ownership Interest: 50% of AT&T Mobility LLC

       SBC Telecom, Inc.
       208 S. Akard Street
       Dallas, TX 75202
       Citizenship: Delaware
       Direct Principal Business: Holding Company
       Direct Ownership Interest: 100% of SBC Long Distance, LLC, 60% of AT&T NCWS
       Holdings Inc., and 9% of AT&T Mobility LLC

       AT&T Inc.
       208 S. Akard Street
       Dallas, TX 75202
       Citizenship: Delaware
       Principal Business: Holding Company
       Direct Ownership Interest: 100% of AT&T Teleholdings, Inc. and 100% of BellSouth
       Mobile Data, Inc.

AT&T is a publicly traded corporation whose stock is widely held by the public with no person
or entity holding a ten percent or greater ownership interest in AT&T.


                                                                         International Section 214
                                                                  Partial Assignment Application
                                                                                     Attachment 1
                                                                                      Page 5 of 10

Answer to Question 12 – Section 63.18(h)

       PRTC Tide does not have any interlocking directorates.

        The following persons are officers or directors of AT&T Inc. and are also officers or
directors of one or more foreign carriers:

       Jeff McElfresh, President-Mexico of AT&T Mexico, LLC, and Michael J. Viola, Senior
Vice President - Finance of AT&T Inc., are directors of both América Móvil, S.A.B. de C.V.
(“América Móvil”) and Teléfonos de México, S.A.B. de C.V. (“Telmex”). América Móvil,
which controls Telmex, is a carrier or controls carriers in Argentina, Brazil, Chile, Colombia,
Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, México,
Nicaragua, Panama, Paraguay, Peru, the United States, and Uruguay.4

        The persons listed below are officers or directors of one or more of the following: New
Cingular Wireless PCS, LLC, AT&T NCWS Holdings Inc., New Cingular Wireless Services,
Inc., AT&T Mobility II LLC, AT&T Mobility LLC, AT&T Mobility Corporation, AT&T
Teleholdings, Inc., SBC Long Distance, LLC, SBC Telecom, Inc., BellSouth Mobile Data, Inc.,
and AT&T Inc. and are also officers or directors of one or more of the following foreign carriers:
BellSouth Long Distance, Inc., which is a carrier in Canada; AT&T Global Network Services
International, Inc., which is a carrier in Israel, New Zealand, and Pakistan; AT&T Global
Network Services Norge LLC, which is a carrier in Norway; AT&T Global Network Services
Venezuela LLC, which is a carrier in Venezuela; and AT&T Japan LLC, which is a carrier in
Japan.

        Charles Bolton is President and Manager of SBC Long Distance, LLC, President and a
Director of SBC Telecom, Inc., and President and Director of BellSouth Long Distance, Inc.
George B. Goeke is Assistant Treasurer of AT&T Inc., Vice President and Assistant Treasurer of
AT&T Teleholdings, Inc. and is also Vice President and Treasurer of BellSouth Long Distance,
Inc., Director and Treasurer of AT&T Global Network Services International, Inc., AT&T
Global Network Services Norge LLC, AT&T Global Network Services Venezuela LLC, and
Treasurer of AT&T Japan LLC. Elaine Lou is Assistant Treasurer of SBC Long Distance, LLC,
SBC Telecom, Inc., BellSouth Long Distance, Inc., and is also Assistant Treasurer of AT&T
Japan LLC, AT&T Global Network Services International, Inc., AT&T Global Network Services
Norge LLC, and AT&T Global Network Services Venezuela LLC. Jeston Dumas is Treasurer of
SBC Long Distance, LLC and SBC Telecom, Inc. and Assistant Treasurer of AT&T Global
Network Services International, Inc., AT&T Global Network Services Norge LLC, AT&T
Global Network Services Venezuela LLC and AT&T Japan LLC. Karen M. Diorio is Assistant

4
       América Móvil, S.A.B. de C.V., Annual Report (Form 20-F) at 15 (Apr. 30, 2013).
AT&T has relied upon América Móvil’s SEC filings to identify the countries where América
Móvil is a carrier or controls carriers. There may be subsequent developments not reflected in
those SEC filings.


                                                                          International Section 214
                                                                   Partial Assignment Application
                                                                                      Attachment 1
                                                                                       Page 6 of 10

Secretary of AT&T Global Network Services International, Inc., AT&T Global Network
Services Norge LLC, and AT&T Global Network Services Venezuela LLC, and Director of Tax
of SBC Long Distance, LLC, SBC Telecom, Inc., and AT&T Teleholdings, Inc. Teresa G.
Blizzard is Assistant Secretary of AT&T Mobility Corporation, BellSouth Mobile Data, Inc.,
New Cingular Wireless Services, Inc. and AT&T NCWS Holdings, Inc., Director-Taxes of
AT&T Teleholdings, Inc., SBC Long Distance, LLC and SBC Telecom, Inc.; and Vice President
– Taxes of BellSouth Long Distance, Inc. Lawrence J. Ruzicka is Senior Vice President – Tax of
AT&T NCWS Holdings, Inc., AT&T Mobility Corporation, New Cingular Wireless Services,
Inc., BellSouth Mobile Data, Inc., AT&T Inc. and Vice President – Tax of SBC Long Distance,
LLC and SBC Telecom, Inc. and is also Director for AT&T Global Network Services, Norge,
LLC, AT&T Global Network Services International, Inc., and AT&T Global Network Services
Venezuela, LLC. Jeffrey M. Chambers is Assistant Secretary of AT&T NCWS Holdings, Inc.,
AT&T Mobility Corporation and New Cingular Wireless Services, Inc. and Assistant Vice
President – Taxes of AT&T Global Network Services, Norge LLC, AT&T Global Network
Services International, Inc., and AT&T Global Network Services Venezuela, LLC. Sherri L.
Bazan is Assistant Treasurer of BellSouth Mobile Data, Inc., AT&T Teleholdings, Inc., and also
BellSouth Long Distance, Inc.

Answer to Question 13 – Narrative of Assignment and Public Interest Statement

       Please see Exhibit 1 hereto for the description of the transaction and public interest
statement filed in connection with the assignment of mobile wireless licenses.

Answer to Question 14 - Section 63.18(i)

        PRTC Tide certifies that it is not a foreign carrier, as that term is defined by Section
63.09 of the Commission’s rules, 47 C.F.R. § 63.09. PRTC Tide certifies that, through AT&T’s
controlling interest in PRTC Tide, it will be affiliated with the following foreign carriers:

       AT&T Communications Services Argentina S.R.L.                           Argentina
       AT&T Global Network Services Australia Pty. Ltd.                        Australia
       AT&T Global Network Services Austria GmbH                               Austria
       AT&T Global Network Services Belgium                                    Belgium
        Luxembourg S.P.R.L.
       AT&T Global Network Services Brazil Ltda.                               Brazil
       AT&T Global Network Services Bulgaria Ltd.                              Bulgaria
       AT&T Global Services Canada Co.                                         Canada
       AT&T Enterprises Canada Co.                                             Canada
       BellSouth Long Distance, Inc.                                           Canada
       AT&T Chile SA                                                           Chile
       AT&T Global Network Services Colombia (Ltda.)                           Colombia
       AT&T Global Network Services Hrvatska d.o.o.                            Croatia
       AT&T Global Network Services Czech Republic s.r.o.                      Czech Republic
       AT&T Global Network Services Ltd.                                       Cyprus


                                                           International Section 214
                                                    Partial Assignment Application
                                                                       Attachment 1
                                                                        Page 7 of 10

AT&T Global Network Services Danmark ApS                       Denmark
AT&T Global Network Services Ecuador Cia. Ltda.                Ecuador
AT&T Global Network Services Estonia Ou                        Estonia
AT&T Global Network Services Finland Oy                        Finland
AT&T Global Network Services France SAS                        France
AT&T Global Network Services Deutschland GmbH                  Germany
AT&T Global Network Services (Hellas) E.P.E. (Limited)         Greece
AT&T Servicios de Comunicaciones de Guatemala SA               Guatemala
AT&T Global Network Services Hong Kong Limited                 Hong Kong
AT&T Global Network Services Hungary Kft                       Hungary
AT&T Global Network Services Private Limited                   India
AT&T Global Network Services Ireland Limited                   Ireland
PT AT&T Global network Services Indonesia                      Indonesia
AT&T Global Network Services International Inc.                Israel
AT&T Global Network Services Italia S.p.A.                     Italy
AT&T Japan KK                                                  Japan
AT&T Japan LLC                                                 Japan
AT&T GNS Korea Limited (Yuhan Hoesa)                           Korea
AT&T Global Network Services Latvia SIA                        Latvia
UAB AT&T Lietuva (Lithuania)                                   Lithuania
AT&T Global Network Services Belgium                           Luxembourg
 Luxembourg S.P.R.L. (Branch Office)
AT&T Worldwide Network Services (Malaysia) Sdn. Bhd.           Malaysia
AT&T Global Network Services Mexico S. de R.L. de C.V.         Mexico
AT&T Global Network Services Morocco sarl au                   Morocco
AT&T Global Network Services Nederland B.V.                    Netherlands
AT&T Global Network Services International Inc.                New Zealand
AT&T Global Network Services Norge LLC                         Norway
AT&T Global Network Services International Inc.                Pakistan
AT&T Communications Services de Panama S. de R.L.              Panama
AT&T Global Network Services del Peru S.R.L.                   Peru
AT&T Global Network Services Polska Sp. z.o.o.                 Poland
AT&T Serviços de Telecomunicaçues,                             Portugal
  Sociedade Unipessoal, Lda.
AT&T Global Network Services Romania S.R.L.                    Romania
AT&T Global Network Services OOO                               Russia
AT&T Worldwide Telecommunications Services                     Singapore
 Singapore Pte Ltd.
AT&T Global Network Services Slovakia s.r.o.                   Slovakia
AT&T Globalne Omrezne Storitve d.o.o.                          Slovenia
AT&T South Africa (Proprietary) Limited                        South Africa
AT&T Global Network Services Espana, S.L.                      Spain
AT&T Global Network Services Sweden AB                         Sweden


                                                                           International Section 214
                                                                    Partial Assignment Application
                                                                                       Attachment 1
                                                                                        Page 8 of 10

         AT&T Global Network Services Switzerland GmbH                         Switzerland
         AT&T Global Network Services Taiwan Ltd.                              Taiwan
         AT&T Worldwide Services (Thailand) Limited                            Thailand
         AT&T Global Iletism Servisleri Limited Sirteki Ltd. STI               Turkey
         AT&T Global Network Services (UK) B.V.                                United Kingdom
         AT&T Global Network Services Venezuela LLC                            Venezuela


Answer to Question 15 - Section 63.18(j)

        Pursuant to Section 63.18(j) of the Commission’s rules, 47 C.F.R. § 63.18(j), PRTC Tide
certifies that it is not a foreign carrier. AT&T holds controlling interests in certain foreign
carriers in destination countries where its subsidiaries provide international service. These
carriers and the countries where they provide service are described above in the answer to
Question 14.

Answer to Question 16 - Section 63.10

        Pursuant to Section 63.10 of the Commission’s rules, 47 C.F.R. § 63.10, PRTC Tide
qualifies for non-dominant classification on the routes between the United States and all the
above-listed countries because the affiliates in these countries have no market power on the
foreign end of any of these routes.5 All of the above-listed affiliates have market shares under 50
percent in any relevant market on the foreign end of U.S. routes to these countries. Therefore,
because all these companies lack 50 percent market share in the international transport and the
local access markets in their respective foreign markets, and none is listed on the Commission’s
List of Foreign Telecommunications Carriers that Are Presumed to Possess Market Power in
Foreign Telecommunications Markets, PRTC Tide is presumptively classified as non-dominant
on these routes.

Answer to Question 18 - Section 63.18(k)

        In accordance with Section 63.18(k)(1) of the Commission’s rules, 47 C.F.R.
§ 63.18(k)(1), PRTC Tide certifies that all of the countries listed in its response to Question 15
(therein referencing its response to Question 14) are WTO Member countries.6

Answer to Question 20 - Section 63.18(p)

       The parties to this Application request streamlined processing of it pursuant to Section
63.12 of the Commission’s rules, 47 C.F.R. §63.12. While PRTC Tide will be affiliated with

5
         See 47 C.F.R. § 63.10(a)(3).
6
         See http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm (last visited Apr. 21,
2014).


                                                                        International Section 214
                                                                 Partial Assignment Application
                                                                                    Attachment 1
                                                                                     Page 9 of 10

foreign carriers in destination markets, PRTC Tide qualifies for a presumption of non-dominance
under Section 63.10(a)(3) of the Commission’s rules, 47 C.F.R. §63.10(a)(3), as set forth in the
Answer to Question 16. Accordingly, streamlined process is appropriate pursuant to Section
63.12(c)(1)(ii).


Exhibit 1


                                                         FCC Form 603
                                                              Exhibit 1
                                                            Page 1 of 6
      DESCRIPTION OF TRANSACTION AND PUBLIC INTEREST STATEMENT

I.       Description of Transaction

        Piedmont Rural Telephone Cooperative, Inc. (“Piedmont Cooperative”) and
PRTCommunications, LLC (“PRTC” and collectively with Piedmont Cooperative, “Piedmont”),
together with New Cingular Wireless PCS, LLC (“New Cingular”), an indirect wholly-owned
subsidiary of AT&T Inc. (collectively with New Cingular, “AT&T”), hereby seek Commission
consent to a series of assignment applications involving Broadband PCS, 700 MHz and AWS-1
licenses (collectively the “Piedmont Licenses”) as follows:

      A. The full and/or partial assignment of three AWS-1 licenses from Piedmont
Cooperative to New Cingular.

        B. In the first step of a two-step transaction, PRTC will assign its Broadband PCS license
to PRTC Tide Acquisition Company LLC (“Newco”)1 and Piedmont Cooperative will assign its
700 MHz license to Newco. Newco will initially be an LLC wholly-owned by Piedmont
Cooperative and PRTC. In step 2 of the transaction, which will occur immediately after step 1,
New Cingular will purchase all of the membership interests in Newco from Piedmont
Cooperative and PRTC, respectively, resulting in Newco becoming a wholly-owned subsidiary
of New Cingular. With regard to this portion of the transaction, the applications have been styled
as “assignment” applications, but they also seek authority to simultaneously consummate the
transfer of control of Newco.2

         All of the Piedmont Licenses to be assigned in this transaction are described in more
detail in Exhibit 2.

        The Piedmont Licenses are not subject to unjust enrichment or transfer restrictions. And,
as described in more detail below and in Exhibit 3, no competitive concerns are raised by this
proposed assignment. Accordingly, and as described in more detail below, the Parties
respectfully submit that Commission approval of the proposed transaction will serve the public
interest, convenience and necessity and request that the Commission expeditiously grant this
transaction.

II.      Commission Approval of the Proposed Transaction is in the Public Interest

1
         Because this assignment will involve the transition of customers, the parties to this transaction are filing an
application for consent to the partial assignment the International Section 214 authorization held by
PRTCommunications, LLC.
2
         By executing the “Assignor” portion of the FCC Forms 603 associated with this portion of the transaction,
the assignor is certifying to the accuracy of the application and appropriate required certifications as the “Assignor”
and “Assignee” in step 1 of the transaction and as the “Transferor” in step 2 of the transaction. By executing the
“Assignee” portion of the FCC Forms 603 associated with this portion of the transaction, AT&T is certifying as to
the accuracy of the application and appropriate required certifications of the Transferee of step 2 of this transaction.
Through submission of this application, the parties also seek Commission approval for the assignment of all pending
applications associated with the underlying licenses that are being assigned.


                                                                                     FCC Form 603
                                                                                           Exhibit 1
                                                                                         Page 2 of 6
         Under Section 310(d) of the Communications Act of 1934, as amended (the “Act”), a
license may be transferred or assigned where the Commission finds “that the public interest,
convenience and necessity will be served thereby.”3 This standard involves a balancing process
that weighs the potential public interest benefits of the proposed transaction against any potential
harm. 4 As demonstrated below, this transaction does not pose any harm and will benefit wireless
consumers. In particular, by acquiring control of the spectrum described in Exhibit 2, AT&T
will be able to augment its network capacity in order to enhance the scope and depth of services
it offers in the affected markets.5

        In evaluating assignment and transfer applications under Section 310(d), the Commission
focuses on whether the proposed assignee or transferee is qualified to hold Commission
licenses. 6 The qualifications of AT&T to hold and control Commission licenses are matters of
public record.7 The Commission has properly found that the qualifications of AT&T to hold
Commission licenses are well-settled and that there is no reason to re-evaluate them in each
proposed transaction. 8 Therefore, there is no question that AT&T possesses the qualifications
required to acquire the Piedmont Licenses.
3
         47 U.S.C. § 310(d); see Applications of AT&T Inc. and Dobson Communications Corporation For Consent
to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 22 FCC Rcd 20295, at ¶ 2
(2007) (“AT&T-Dobson Order”); Applications of Midwest Wireless Holdings, L.L.C. and Alltel Communications,
Inc. For Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 21 FCC
Rcd 11526, 11535 (2006) (“Alltel-Midwest Order”); Applications of Nextel Communications, Inc. and Sprint
Corporation For Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 20
FCC Rcd 13967, 13976 (2005) (“Sprint-Nextel Order”); Applications of Western Wireless Corporation and Alltel
Corporation For Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 20
FCC Rcd 13053, 13062 (2005) (“Alltel-Western Order”); Applications of AT&T Wireless Services, Inc. and
Cingular Wireless Corp. For Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion
and Order, 19 FCC Rcd 21522, 21542 (2004) (“Cingular-AT&T Wireless Order”); Applications for Consent to the
Assignment of Licenses Pursuant to Section 310(d) of the Communications Act from NextWave Personal
Communications, Inc., Debtor-in-Possession, to Subsidiaries of Cingular Wireless LLC, Memorandum Opinion and
Order, 19 FCC Rcd 2570, 2580 (“Cingular-NextWave Order”).
4
         AT&T-Dobson Order at ¶ 10; Alltel-Midwest Order, 21 FCC Rcd at 11535; Sprint-Nextel Order, 20 FCC
Rcd at 13976; Alltel-Western Order, 20 FCC Rcd at 13062-63; Cingular-AT&T Wireless Order, 19 FCC Rcd at
21543; Cingular-NextWave Order, 19 FCC Rcd at 2580-81.
5
       See, e.g., AT&T-Dobson Order at ¶ 79; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21602; Cingular-
NextWave Order, 19 FCC Rcd at 2585; see also Alltel-Midwest Order, 21 FCC Rcd at 11566-68.
6
         AT&T-Dobson Order at ¶ 11; Alltel-Midwest Order, 21 FCC Rcd at 11537; Sprint-Nextel Order, 20 FCC
Rcd at 13979; Alltel-Western Order, 20 FCC Rcd at 13063; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21546;
Cingular-NextWave Order, 19 FCC Rcd at 2581.
7
         See, e.g., AT&T-Dobson Order at ¶ 11; AT&T Inc. and BellSouth Corporation Application for Transfer of
Control, Memorandum Opinion and Order, 22 FCC Rcd 5662, 5758 (2007) (“AT&T-BellSouth Order”); Cingular-
AT&T Wireless Order at 21548-51; Cingular-NextWave Order at 2583 & n.112; Applications of SBC
Communications, Inc. and BellSouth Corporation (For Consent to Transfer Control or Assignment of Licenses and
Authorizations), Memorandum Opinion and Order, 15 FCC Rcd 25459, 25463-66 (WTB/IB 2000) (“SBC-BellSouth
Order”).
8
        See, e.g., Application of New Cingular Wireless PCS, LLC and D&E Investments, Inc. For Consent to
Assign Lower 700 MHz C Block Licenses, Order, DA 12-232, ¶ 5 (WTB 2012) (“AT&T/D&E Order”) (“No issues


                                                                                                   FCC Form 603
                                                                                                        Exhibit 1
                                                                                                      Page 3 of 6

        The Commission has determined that applications that demonstrate on their face that a
transaction will yield affirmative public interest benefits and will neither violate the Act or
Commission rules, nor frustrate or undermine policies and enforcement of the Act by reducing
competition or otherwise,9 do not require extensive review and expenditure of considerable
resources by the Commission. 10 This transaction meets this standard and should thus be granted
promptly.

         A.       The Proposed Transaction Serves the Public Interest

       Commission approval of the proposed transaction will promote the public interest. The
proposed transaction will enable AT&T to achieve greater operational efficiencies and offer
improved, more robust and advanced services to meet the needs of new and existing
subscribers.11

       Specifically, the additional spectrum will enable AT&T to enter markets where it has
heretofore not provided facilities-based service and facilitate the provision of additional products
and services to the public in the geographic areas authorized under the Piedmont Licenses. 12 The
additional spectrum will be used to deploy AT&T’s 4G network using LTE technology, and, in
addition to other authorizations it holds, will increase network capacity to the benefit of all
AT&T subscribers. 13 It will also facilitate AT&T’s continued deployment of EDGE and
HSDPA/UMTS technologies throughout South Carolina.

have been raised in this proceeding with respect to the basic qualifications of the proposed assignee, AT&T, which
has previously and repeatedly been found qualified, through its subsidiaries, to hold Commission licenses. We
therefore find that there is no reason to re-evaluate the basic qualifications of AT&T.”).
9
         See Applications for Consent to the Transfer of Control of Licenses and Section 214 Authorizations from
Telecommunications, Inc., Transferor to AT&T Corp., Transferee, Memorandum Opinion and Order, 14 FCC Rcd
3160, 3170 (1999); Ameritech Corp., Transferor, and SBC Communications Inc., Transferee, For Consent to
Transfer Control of Corporations Holding Commission Licenses and Lines Pursuant to Sections 214 and 310(d) of
the Communications Act and Parts 5, 22, 24, 25, 63, 90, 95 and 101 of the Commission’s Rules, Memorandum
Opinion and Order, 14 FCC Rcd 14712, at 14740-42 (1999) (“Ameritech/SBC”).
10
         See Ameritech/SBC, 14 FCC Rcd at 14740-42.
11
         Transactions that give rise to these results have been found by the Commission to be in the public interest.
See AT&T-Dobson Order at ¶¶ 79, 83; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21602-04, 21607; Cingular-
NextWave Order, 19 FCC Rcd at 2585; Applications of Northcoast Communications, LLC and Cellco Partnership
d/b/a Verizon Wireless For Consent to Assignment of Licenses, Memorandum Opinion and Order, 18 FCC Rcd
6490, 6493 (WTB/CWD 2003) (“VZW-Northcoast Order”).
12
         Among other things, the Commission’s public interest calculus takes into consideration the extent to which
the transaction will accelerate the “deployment of advanced services” and “affect the quality of communications
services or will result in the provision of new or additional services to consumers.” AT&T-Dobson Order at ¶ 12;
Alltel-Western Order, 20 FCC Rcd at 13064-65; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21544.
13
         The Commission has previously concluded that, in the absence of competitive harm, the acquisition of
additional 700 MHz spectrum by AT&T serves the public interest by enabling AT&T to achieve greater efficiencies,
enhance existing services, accommodate growth, and facilitate the provision of additional products and services to


                                                                                                 FCC Form 603
                                                                                                      Exhibit 1
                                                                                                    Page 4 of 6

        B.       The Proposed Transaction Creates No Competitive Harm

       The proposed transaction will have no adverse competitive effects. It will neither cause
an overall aggregation of spectrum that would pose an anticompetitive risk nor reduce actual
competition in any meaningful way for a variety of reasons. 14

        In particular, the proposed transaction will not cause an aggregation of spectrum that
would pose an anticompetitive risk.15 AT&T proposes to acquire spectrum covering all or part
of ten counties in five Cellular Market Areas (“CMAs”).16 Post-closing, AT&T’s attributable
spectrum total will range from 120 MHz (in one county) to 165 MHz (in one county).17


the public. See AT&T/D&E Order at ¶ 8. See also Application of AT&T Mobility Spectrum LLC and BTA Ventures
II, Inc. For Consent To Assign Lower 700 MHz B Block Authorization Call Sign WQJQ779, Order, DA 12-234, ¶ 8
(2012).
14
          In evaluating the competitive effects of proposed transactions, the Commission considers the relevant
product market and geographic market. With respect to the domestic wireless markets, the Commission has defined
the relevant product market as mobile telephony services. See AT&T-Dobson Order at ¶ 17. Spectrum suitable for
mobile telephony includes cellular, PCS, SMR and 700 MHz spectrum. Id. at ¶¶ 17, 30. The Commission has also
found that 20 megahertz of WCS spectrum are “suitable and available for the provision of mobile
telephony/broadband services and should therefore be added to the spectrum screen.” See Applications of AT&T
Mobility Spectrum LLC, New Cingular Wireless PCS, LLC, Comcast Corporation, Horizon Wi-Com, LLC,
NextWave Wireless, Inc., and San Diego Gas & Electric Company For Consent to Assign and Transfer Licenses,
Memorandum Opinion and Order, FCC 12-156, at ¶ 31 (2012) (“AT&T/WCS Licensees Order”). The Commission
has further held that, where available, it will include AWS-1 and BRS spectrum in its evaluation of the competitive
effects of proposed transactions. Applications of Cellco Partnership d/b/a Verizon Wireless and Atlantis Holdings
LLC For Consent to Transfer Control of Licenses, Authorizations, and Spectrum Manager and De Facto Transfer
Leasing Arrangements and Petition for Declaratory Ruling that the Transaction is Consistent with Section 310(b)(4)
of the Communications Act, Memorandum Opinion and Order and Declaratory Ruling, FCC 08-258, at ¶¶ 62-70
(Nov. 10, 2008) (“Verizon Wireless-ALLTEL Order”). The Commission has defined the relevant geographic market
as the area “within which a customer is most likely to shop for mobile telephony service.” Id. at 25; see also
Cingular-AT&T Wireless Order, 19 FCC Rcd at 21563 (“[T]he appropriate definition of the relevant geographic
market is neither national, on the one hand, nor as small as a county on the other.”).
15
        See AT&T/WCS Licensees Order at n. 94 (“Our modified spectrum screen is triggered where the Applicants
would have, on a market-by-market basis: 102 megahertz or more of cellular, PCS, SMR, 700 MHz, and WCS
spectrum, where neither BRS nor AWS-1 spectrum is available; 121 megahertz or more of spectrum, where BRS
spectrum is available, but AWS-1 spectrum is not available; 132 megahertz or more of spectrum, where AWS-1
spectrum is available, but BRS spectrum is not available; or 151 megahertz or more of spectrum where both AWS-1
and BRS spectrum are available.”). The relevant screen for this transaction is 151 MHz.
16
        In Spartanburg County, SC and Union County, SC, AT&T is acquiring 30 MHz of Broadband PCS
spectrum in a portion of each county. However, as AT&T already holds and is attributed with this spectrum in the
remainder of the respective counties, this transaction does not constitute a spectrum aggregation event in
Spartanburg County or Union County.
17
        AT&T will exceed the Commission’s spectrum screen by 2 megahertz in Anderson County; by 4
megahertz in Abbeville and Greenwood counties; and by 14 megahertz in Oconee County.


                                                                                    FCC Form 603
                                                                                           Exhibit 1
                                                                                         Page 5 of 6
        The fact that AT&T will slightly exceed the spectrum screen in three counties should not
serve as a barrier to grant of this transaction. The Commission has previously stated that the
spectrum screen is “designed to be conservative and ensure that any markets in which there is
potential competitive harm based on spectrum aggregation are identified and subjected to more
in-depth analysis.”18 And, as demonstrated clearly below and in Exhibit 4, there will remain
significant competition in these markets post-transaction and thus this transaction raises no
competitive concerns.

         The proposed transaction will not reduce actual competition in any meaningful way in
these markets. To the contrary, the transaction will “preserv[e] and enhance[e] competition.”19
In fact, the proposed transaction will enhance competition by enabling AT&T to be a more
effective competitor, while preserving meaningful competition in the affected markets.
Specifically, the transaction will not result in public interest harm in mobile telephony markets
“because there will be a continuing presence of multiple other substantial carriers in each overlap
market with the capacity to add subscribers and the ability to add capacity.”20 As shown in
Exhibit 4, there will continue to be numerous licensed providers (including AT&T) in the
affected counties. As a result, this transaction “is unlikely to result in collusive behavior or
create ‘unilateral’ market power” on the part of the assignee.21

        C.        Subscriber Transition

        As noted above, this transaction involves the transition of subscribers from Piedmont to
Newco, an entity that will be controlled by AT&T. Because PRTC is currently in a Joint
Operating Agreement with AT&T and its existing network is already integrated with AT&T’s
national network, subscriber transition will consist primarily of a billing conversion. In this
regard, AT&T expects to create rate plans that will be substantially similar to the existing rate
plans for the vast majority of transitioned subscribers. Subscribers on rate plans that are
substantially similar to existing rate plans will be able to remain on those plans for the duration
of their existing contracts. Subscribers for whom substantially similar rate plans cannot be
created will be able to choose a different rate plan offered by AT&T or they will be able to
terminate service with no early termination fee. AT&T anticipates that subscriber transition
should be completed within six to nine months.

III.    Conclusion

        As demonstrated above, AT&T is well-qualified to acquire, control and make beneficial
public use of the spectrum proposed to be assigned in this transaction. In addition, as set forth

18
        Verizon Wireless-ALLTEL Order at ¶ 54 (emphasis added).
19
         AT&T-Dobson Order at ¶ 12; Sprint-Nextel Order, 20 FCC Rcd at 13977; Alltel-Western Order, 20 FCC
Rcd at 13064; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21544.
20
        See Sprint-Nextel Order, 20 FCC Rcd at 13969.
21
        See id.


                                                                                   FCC Form 603
                                                                                         Exhibit 1
                                                                                       Page 6 of 6
above, the proposed transaction will not adversely affect competition. Indeed, grant of this
application will promote competition and will otherwise serve the public interest, convenience
and necessity. For these reasons, prompt Commission approval of this transaction is warranted.



Document Created: 2014-05-15 16:11:05
Document Modified: 2014-05-15 16:11:05

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