Attachment STA Request

This document pretains to ITC-STA-20140128-00028 for Special Temporal Authority on a International Telecommunications filing.

IBFS_ITCSTA2014012800028_1033712

   BIN G H A M

                          January 28, 2014

                          Via Overnight Delivery and IBFS

                          Marlene H. Dortch, Secretary
                          Office of the Secretary
                          Federal Communications Commission
                          445 12th Street, SW
                          Washington, DC 20554

                          Re:     ITG, Inc., Assignor and iTalk, Inc., Assignee
                                  Requestfor Special Temporary Authority

                          Dear Ms. Dortch:

                          ITG, Inc. ("ITG" or "Assignor") and iTalk, Inc. ("iTalk" or "Assignee") (collectively, the
                          "Applicants"), through undersigned counsel and pursuant to Section 214 of the
                          Communications Act, as amended, 47 U.S.C. § 214, and Section 63.24 of the
                          Commission‘s Rules, 47 C.F.R. § 63.24, respectfully request Special Temporary
                          Authority ("STA") for the assignment of domestic and international 214 authorization
                          and assets from ITG, Inc., a non—dominant international service carrier, to iTalk, Inc. (the
                          "Transaction").! Applicants respectfully request that the Commission grant this STA
                          request as soon as possible to permit continued operations by iTalk.

                          On June 5, 2013, ITG entered into an asset purchase agreement (the "Agreement") with
                          iTalk, pursuant to which in exchange for $300,000, among other things, ITG sold all
                          rights and interests to and in all of the customers of ITG to iTalk. The Transaction also
                          resulted in the assignment of ITG‘s blanket domestic 214 authority pursuant to 47 C.F.R.
               Beijing    § 63.01, and international 214 authority to operate as a global or limited global resale
               Bostan
                          carrier pursuant to File No. ITC—214—20090416—00200 granted on June 5, 2009. Further
             Ffrankfurt
             Hartford
                          details describing the transaction and parties are included in the underlying domestic and
           Hong Kang      international applications filed (jointly) concurrently herewith and attached hereto as
      Lexington (GSC)     Exhibit A (the "Applications").
               London
          Los Angeles
             New York     Unfortunately, the Applicants did not seek timely Commission approval of the
       Orange County      transaction. The oversight was inadvertent and unintentional. At the time of the
        San Francisco     transaction, Applicants, lacking advice from communications counsel on this very small
        Santa Monica
        Silicon Valley
                          transaction, were not aware of the obligation to request Commission approval of the
                Tokyo     assignment of authorizations held by ITG. As soon as this noncompliance came to the
          Washington      Applicants‘ attention, Applicants took steps to remedy the noncompliance to the extent


Bingham McCutchen LLP
                          1     Just prior to the Transaction, ITG, Inc. was named WQN, Inc. For purposes of
      2020 K Street NW          simplicity, this STA and the accompanying Applications refer to the company‘s
       Washington, DC           name as "ITG, Inc.," even though the filings on record with the FCC are under its
          20006—1806
                                former name, WQN, Inc. Thus, the company herein notifies the Commission of the
    1 +1.202.373.6000
                                company‘s name change from WQN, Inc. to ITG, Inc.
    F +1.202.373.6001

         bingham.com


                        Marlene H. Dortch, Secretary
                        January 28, 2014
                        Page2

                        possible by seeking this authority. The Applicants regret this oversight and have taken
                        steps to ensure compliance with all applicable FCC requirements going forward

                        Grant of the requested STA will serve the public interest. A grant will permit the
                        continued, uninterrupted service to customers while the Commission reviews the
                        underlying applications. It will also promote competition in the communications services
                        marketplace. Without discounting the regulatory obligation to obtain prior approval, the
                        Applicants note that it is not aware of specific harms to customers or to the market that
                        occurred as a result of Applicants' oversight. Further, ultimately, once the
                        noncompliance is addressed, the Transaction will have a positive impact on the affected
                        operations, and the ability of iTalk to provide cutting edge, cost-effective services to
                        customers. The Commission is respectfully requested to consider that the
                        Applicants have acted in good faith to rectify the failure to file for approval of the
                        assignment as quickly as possible after the noncompliance came to their attention.

                        The Applicants request sixty (60) days temporary authority while the regular Section 214
                        Applications are pending. The Applicants acknowledge that the grant of this STA will not
                        prejudice any action the Commission may take on the Applications, and that once
                        granted, the STA may be revoked on the Commission's own notice, without a hearing.
                        The Applicants further acknowledge that grant of the STA will neither preclude nor
                        dictate the scope of any enforcement action related to the underlying transaction.

                        This filing and the applicable credit card payment in the amount of $1,050.00 which
                        satisfies the filing fee required under line 2.d of Section 1.1107 of the Commission's
                        rules, are being submitted electronically through the MyiBFS.

                        Should you have any questions or require further information, please do not hesitate to
                        contact the undersigned.


                                                                 Respectfully submitted,

                                                                 Is/ Catherine Wang
                                                                 Catherine Wang
                                                                 Jeffrey R. Strenkowski
                                                                 Bingham McCutchen LLP
                                                                 2020 K Street, N. W.
                                                                 Washington, DC 20006
                                                                 Tel:    (202) 373-6000
                                                                 Fax:    (202) 373-6001
                                                                 Email: catherine.wang@bingham.com
                                                                         jeffrey. strenkowski@bingham.com

                                                                 Counsel for iTalk, Inc.




Bingham McCutchen LLP
         bingham.com


              EXHIBIT A




ansoorras.t


                                       Before the
                         FEDERAL COMMUNICATIONS COMMISSION
                                  Washington, DC 20554


                                                 )
In the Matter of the Joint Application of        )
                                                 )
lTG, Inc.,                                       )             File No. ITC-ASG-2014_ _ __
        Assignor,                                )
                                                 )
and                                              )             WC Docket No. 14-- - - - - -
                                                 )
iTalk, Inc.,                                     )
       Assignee                                  )
                                                 )
For Nunc Pro Tunc Grant of Authority Pursuant to )
Section 214 of the Communications Act of 1934, )
as amended, and Sections 63.04 and 63.24 ofthe   )
Commission's Rules to Complete an                )
Assignment of Licenses and Purchase of Assets    )
of an Authorized Domestic and International      )
Section 214 Carrier                              )



                                       JOINT APPLICATION

I.         INTRODUCTION

           A.     Summary of Request

           lTG, Inc. ("lTG" or "Assignor") and iTalk, Inc. ("iTalk" or "Assignee") (collectively, the

"Applicants"), pursuant to Section 214 of the Communications Act, as amended, 47 U.S.C.

§ 214, and Sections 63.04 and 63.24 of the Commission's Rules, 47 C.P.R. §§ 63.04, 63.24,

respectfully request nunc pro tunc Commission approval of a transaction whereby on June 5,

2013, iTalk acquired from lTG certain assets, including Section 214 licenses, ITG's customer




N 75907735.1


base and customer contracts (the "Transaction").2 As described below, iTalk is well-qualified to

hold the aforementioned Section 214 authorizations and own and operate the assigned licensed

operations. Further, the transaction was virtually transparent to assigned customers with respect

to the services that they receive.

           B.     Request for Streamlined Processing

           Applicants respectfully submit that this Application is eligible for streamlined processing

pursuant to Section 63 .03 and 63.12 of the Commission's Rules, 47 C.P.R. §§ 63.03 & 63.12.

With respect to domestic authority, this Application is eligible for streamlined processing

pursuant to Section 63.03(b)(2)(i) because, immediately following the Transaction, (1)

Applicants and their affiliates, as defined in Section 3(1) of the Communications Act

("Affiliates") combined held less than a ten percent (1 0%) share of the interstate, interexchange

market; (2) Applicants and their Affiliates will not provide local exchange service; and (3) none

of the Applicants or their Affiliates is dominant with respect to any service. This Application is

eligible for streamlined processing pursuant to Section 63.12 of the Commission's Rules, 47 C.P.R.

§ 63.12, because, as further described in Section IV below, none of the exclusionary criteria set

forth in Section 63.12(c) applies.

           In support of this Application, Applicants provide the following information:

II.        DESCRIPTION OF THE APPLICANTS

           A.     lTG, Inc. (Assignor)

           ITG, Inc., a Texas corporation, located at 14911 Quorum Drive, Suite 370, Dallas, Texas

75254, is a wholly owned subsidiary of DataJack, Inc. ("DataJack"), a Nevada corporation,

located at the same address (OTC BB: "DJAK"). DataJack offers, through its subsidiaries, a

2     The Applicants are concurrently filing Requests for Special Temporary Authority with the
      International and Wireline Competition Bureaus for approval of the Transaction pending approval of
      these applications.
                                                    2
A/75907735 .1


comprehensive range of mobile broadband Internet access products and semces that are

designed to meet the needs of individual consumers, businesses, government subscribers and

resellers. Datalack offers secure nationwide mobile broadband             data transmission services

primarily under the Datal ack brand.3

          Prior to the Transaction, Datalack's communications products included an international

calling service delivered under the brand "WQN," through its subsidiary, WQN, Inc. ("WQN").

Just prior to the Transaction, WQN changed its name to lTG, Inc. d/b/a WQN. The company's

international calling service delivers low cost international calls to consumers and businesses.

Pursuant to the Transaction, lTG sold certain intangible and other assets to iTalk, Inc. The assets

included in the Transaction were certain domain names, licenses (including FCC Section 214

licenses), service contracts including trade names and trademarks, and all rights and interests to

and in all of the customers of the international long distance division of Datal ack, Inc.

          A chart depicting the ownership chain of Assignor is attached hereto as Attachment 1.

          B.     iTalk, Inc. ("Assignee")

          iTalk, Inc. is a Nevada corporation with executive offices located at 2400 W Cypress

Creek Road, Suite 111, Fort Lauderdale, Florida 33309 (OTC: "TALK"). iTalk designs and

develops retail voice and data communications services and integrates these services with

wireless hardware devices to create new and more cost effective and productive communication

solutions.4

          A chart depicting the ownership chain of Assignee is attached hereto as Attachment 2.


3     Further information on DataJack, Inc. can be obtained through the company's most recent SEC
      Annual Report, available at: http://com.datajack.com/cfiles/investors filings.asp.

4     Further information on iTalk, Inc. can be obtained through the company's most recent SEC Annual
      Report, available at: http :1/www .italkmo bility. com/investors filings.

                                                   3
N75907735.!


III.       DESCRIPTION OF THE TRANSACTION


           Pursuant to an Asset Purchase Agreement (''Agreement"), dated June 5, 2013, Applicants

undertook a transaction whereby iTalk acquired those operations of ITG related to the provision

of regulated telecommunications services.           The Transaction entailed a purchase of the ITG

business operating pursuant to certain Section 214 authorizations and certain customer accounts.

iTalk will continue to offer services pursuant to blanket domestic 214 authority as well as

international 214 authority pursuant to File No. ITC-214-20090416-00200 granted to ITG on June 5,

2009, that it acquired from ITG. Customers have received, and will continue to receive service

from iTalk under the comparable rates, terms and conditions of services immediately prior to the

Transaction. Any future changes in the rates, terms and conditions of service for customers will

be undertaken pursuant to applicable federal and state notice and tariff requirements.

           As a result of the Transaction, iTalk acquired the assets and licenses of ITG.

Unfortunately, through an oversight, Applicants did not request authority for the assignment of

licenses and assets from ITG to iTalk at the time of the transaction and does so now.5 Following

consummation of the Transaction, iTalk offered service with no change in the rates or terms and

conditions of service. Further, iTalk has provided service to its customers under the same

"WQN" brand name. Therefore, the assignment was seamless and transparent to customers.

IV.        PUBLIC INTEREST STATEMENT

           Applicants submit that approval of the Transaction will serve the public interest.

Approval of the Transaction will enhance the ability of iTalk to retain an expanded line of

products and services. Through the purchase of the ITG assets, iTalk became a more robust


5      As discussed in the attached request for Special Temporary Authority, the Applicants were unaware
       of the prior approval requirement and inadvertently failed to obtain timely authority and have taken
       steps to ensure compliance with all applicable FCC requirements going forward.
                                                      4
A/75907735.1


competitor in the highly competitive telecommunications industry. Further, the Transaction was

conducted in a manner that was transparent to customers of ITG. The assignment of ITG's

business and licenses did not result in any changes to the terms or conditions of services of

affected customers. Following consummation of the Transaction, iTalk continued to provide

high-quality communications services to its customers without interruption.6

V.        INFORMATION REQUIRED BY SECTION 63.24(e)

          Pursuant to Section 63.24(e)(3) of the Commission's Rules, the Applicants submit the

following information requested in Section 63.18 (a)-(d) and (h)-(p) in support of this

Application:

          63.18 (a)      N arne, address and telephone number of each Applicant:

                 Assignor:
                      lTG, Inc. (f/k/a WQN, Inc.)                                  FRN: 0016796914
                      14911 Quorum Drive
                      Suite 370
                      Dallas, Texas 75254
                      Tel: (972) 361-1980

                 Assignee:
                      iTalk, Inc.                                                  FRN: 0023299464
                      2400 West Cypress Creek Road
                      Suite 111
                      Fort Lauderdale, Florida 33309
                      Tel: (877) 652-3834

          63.18 (b)      Juris diction of Organizations:

                 Assignor:        ITG is a corporation formed under the laws ofthe State of Texas.

                 Assignee:        iTalk is a corporation formed under the laws of the State of
                                  Nevada.

6     As the ITG customers involved in the transfer did not receive presubscribed international, interstate,
      or inter-exchange intrastate long distance telecommunications services from lTG, the certification
      requirements set forth in Section 64.1120(e) of the Commission's Rules are inapplicable as no carrier
      subscription changes were undertaken for any customer.

                                                     5
N75907735.1


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

           For iTalk:                                  With a copy to:
               Catherine Wang                              David Levy
               Jeffrey R. Strenkowski                      iTalk, Inc.
               Bingham McCutchen LLP                       2400 West Cypress Creek Road
               2020 K St. NW, 11th Fl.                     Suite 111
               Washington, DC 20006                        Fort Lauderdale, Florida 33309
               202-373-6000 (Tel)                          Tel: (877) 652-3834
               202-373-6001 (Fax)
               catherine. wang@bingham.com
               jeffrey.strenkowski@bingham.com

           For ITG:
               Steven Ivester
               ITG, Inc.
               2400 W. Cypress Creek Rd.
               Suite 200
               Fort Lauderdale, FL 33309
               Tel: (954) 465-1658

           63.18 (d)     Section 214 Authorizations

                  Assignor:      ITG holds blanket domestic Section 214 authority and holds
                                 international Section 214 authority granted in File No. ITC-214-
                                 20090416-00200 on June 5, 2009.

                  Assignee:      iTalk does not hold domestic or international Section 214
                                 authority.

           63.18 (h)     Ownership

           The following entities hold, directly or indirectly a 10% or greater interest in iTalk as

calculated pursuant to Commission ownership attribution rules for wireline and international

telecommunications carriers:

  Ownership ofiTalk, Inc.:

          No individual or entity owns or controls more than 10% directly or indirectly of iTalk,

Inc. iTalk, Inc. has no interlocking officers or directors with any other foreign carriers.

  Ownership ofiTG, Inc.:

                                                   6
A/75907735.1


         The following entity owns or controls 10% or more of lTG, Inc.:

                 Name:                     DataJ ack, Inc.
                 Address:                  14911 Quorum Drive, Suite 370, Dallas, Texas 75254
                 Citizenship:              us
                 Principal Business:       Mobile Broadband Internet Services
                 %Equity:                  100%

                 Name:                     Gerald & Seena Sperling
                 Address:                  17899 Aberdeen Way, Boca Raton, Florida 33496
                 Citizenship:              us
                 Principal Business:       Individuals
                 %Equity:                  18% ofDataJack, Inc. (18% OfiTG, Inc. indirectly)?

                 Name:                     Warren Gilbert
                 Address:                  1800 NE 114th St., Suite 2110, Miami, Florida 33181
                 Citizenship:              us
                 Principal Business:       Individual
                 %Equity:                  14% ofDataJack, Inc. (14% OfiTG, Inc. indirectly)

         No other individual or entity owns or controls more than 10% directly or indirectly of

lTG, Inc. lTG, Inc. has no interlocking officers or directors with any other foreign carriers.

         63.18 (i)        iTalk certifies that it is not a foreign carrier and is not affiliated with any
                          foreign carriers.

         63.18 (j)        iTalk certifies that it does not seek to provide international
                          telecommunications services to any destination country where:

                 (1)      iTalk is a foreign carrier in that country; or

                 (2)      iTalk controls a foreign carrier in that country; or

                 (3)      Any entity that owns more than 25 percent of iTalk, or that controls iTalk,
                          controls a foreign carrier in that country; or

                 (4)      Two or more foreign carriers (or parties that control foreign carriers) own,
                          in the aggregate more than 25 percent of iTalk and are parties to, or the
                          beneficiaries of, a contractual relation affecting the provision or marketing
                          or international basic telecommunications services in the United States.

         63.18 (k)        Not applicable (no destination countries are listed in response to paragraph

7    Gerald and Seena Sperling own their shares of DataJack, Inc. both directly and through a trust, with
     beneficial ownership held by Seena Sperling.

                                                        7
N75907735.1


                         (j) above).

          63.18 (I)      Not applicable (iTalk is not a foreign carrier and is not affiliated with any
                         foreign carriers).

          63.18 (m)      Not applicable (iTalk is not a foreign carrier and is not affiliated with any
                         foreign carriers).

          63.18 (n)      Applicants certify that they have not agreed to accept special concessions
                         directly or indirectly from any foreign carrier with respect to any U.S.
                         international route where the foreign carrier possesses market power on
                         the foreign end of the route and will not enter into such agreements in the
                         future.

          63.18 (o)      Applicants certify that they are not subject to denial of federal benefits
                         pursuant to Section 5301 of the Anti-Drug Abuse Act of 1998. See 21
                         U.S.C. § 853a. See also 47 C.P.R. §§ 1.2001-1.2003.

          63.18 (p)      Applicants respectfully submit that this Application is eligible for
                         streamlined processing pursuant to Section 63.12(a)-(b) of the
                         Commission's Rules, 47 C.P.R. §63.12(a)-(b). In particular, Section
                         63.12(c)(1) is inapplicable because the Applicant is not affiliated with any
                         foreign carriers and none of the scenarios outlined in Section 63 .12(c) of
                         the Commission's Rules, 47 C.F.R.§ 63.12(c), apply.


VI.       INFORMATION REQUIRED BY SECTION 63.04

          In lieu of an attachment, pursuant to Commission Rule 63.04(b), 47 C.P.R. § 63.04(b),

Applicants submit the following information in support of their request for domestic Section 214

authority in order to address the requirements set forth in Commission Rule 63.04(a)(6)-(12), 47

C.F.R. § 63.04(a)(6)-(12):

          (a)(6) A description of the Transaction is set forth in Section III above.

          (a)(7) Applicants do not currently offer domestic telecommunications services.

          (a)(8) Applicants respectfully submit that this Application is eligible for streamlined
                 processing pursuant to Sections 63.03 of the Commission's Rules, 47 C.P.R. §63.03.
                 In particular, with respect to domestic authority, this Application is eligible for
                 streamlined processing pursuant to Section 63.03(b)(2)(i) because, immediately
                 following the transaction, (1) Applicants and their Affiliates combined held less
                 than a ten percent (10%) share of the interstate, interexchange market; (2)
                 Applicants and their Affiliates will not provide local exchange service; and (3)

                                                   8
N75907735.1


                  none of the Applicants or their Affiliates is dominant with respect to any service.

           (a)(9) By this Application, Applicants seek authority with respect to both international
                  and domestic Section 214 authorizations. (This Application is being separately
                  and concurrently filed with respect to both types of authorities in compliance with
                  Commission Rule 63.04(b), 47 C.P.R. § 63.04(b)). Except with respect to the
                  requests for Special Temporary Authority being filed concurrently with the
                  Commission as outlined above, no other applications are being filed with the
                  Commission with respect to this Application.

           (a)(lO) The Applicants are seeking Special Temporary Authority with respect to the
                   Transaction described in this Application. As such, Applicants respectfully request
                   that the Commission approve this Application expeditiously.

           (a)(ll) Not applicable (no other waiver requests are being filed).

           (a)(12) A statement showing how grant ofthe application will serve the public interest,
                   convenience and necessity is provided in Section IV above.

VII.       CONCLUSION

           For the reasons stated above, Applicants respectfully submit that the public interest,

convenience, and necessity would be furthered by a grant of this Application.              Applicants

therefore respectfully request that the Commission consider and approve this Application as soon

as possible.

                                                         Respectfully submitted,

                                                        Is/ Catherine Wang
                                                        Catherine Wang
                                                        Jeffrey R. Strenkowski
                                                        Bingham McCutchen LLP
                                                        2020 K St., NW
                                                        Washington, DC 20006
                                                        202-373-6000 (Tel)
                                                        202-373-6001 (Fax)
                                                        catherine. wang@bingham. com
                                                        jeffrey.strenkowski@bingham.com

                                                         Counsel for iTalk, Inc.



Dated: January 28, 2014

                                                    9
A/75907735.1


                 ATTACHMENT 1

               ASSIGNOR OWNERSHIP




N75907735. 1


                               Assignor Ownership




        Gerald and Seena              Warren Gilbert                          Widely Held By Multiple
         Sperling (US}                    (US)                                    Shareholders

               1   18%                          14%                                      1 68%




                           I        DataJack, Inc. (US)
                                                              I
                                               100%



                                      lTG, Inc.* (US)
                                I                         I


                                                                  *Assignor




75388638.2


                ATTACHMENT 2

              ASSIGNEE OWNERSHIP




N75907735.1


Assignee Ownership




  Widely Held By Multiple
       Shareholders

                100%


      iTalk, Inc.* (US)




                            * Assignee


                                          VERIFICATION


          1, stale that 1 am the President of lTG, Inc. ( lTG ')· that I am authorized to make this

Verification on behalf of ITO; that the foregoing filing was prepared under my direction and

supervision; and that the contents with re pect to IGT are true and correct to the best of my

knowledge, information. and belief.

           l declare under penalty of perjury that the foregoing is true and correct. Executed this

28th day of January, 2014.


                                                 AME, Steven Ivester
                                               TITLE President
                                               lTG. Inc.




N7S6SI 115 11


                                          VERIFICATION


          I, David F. Levy_state that I am the CEO of iTalk, Inc. ("iTalk"); that I am authorized to

make this Verification on behalf of iTalk; that the foregoing filing was prepared under my

direction and supervision; and that the contents with respect to iTalk are true and correct to the

best of my knowledge, information, and belief.

                                                                                      Executed this




                                               iTalk, Inc.




N1S90713S I



Document Created: 2014-01-28 18:31:27
Document Modified: 2014-01-28 18:31:27

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