Attachment 20170112165822-513.p

20170112165822-513.p

SUPPLEMENT

Supplement

1998-09-17

This document pretains to ITC-T/C-19980917-00672 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC1998091700672_1395833

              Categories of Services for 214 Applications
                       (Streamline/Non—streamline)

                              fve. ya — oo m oo C795
            ASSIGNMENT OF LICENSE
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            GLOBAL FACILITIES—BASED SERVICE
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            GLOBAL FACILITIES—BASED/GLOBAL RESALE SERVICE
            GLOBAL RESALE SERVICE
  _3 o_ s




            INDIVIDUAL FACILITIES—BASED SERVICE
            INTERCONNECTED PRIVATE LINE RESALE SERVICE
            LIMITED GLOBAL FACILITIES—BASED SERVICE/LIMITED
  H.




            GLOBAL RESALE SERVICE
            LIMITED GLOBAL FACILITIES—BASED SERVICHE
DDXDDDB




            LIMITED GLOBAL RESALE SERVICE
            INMARSAT AND MOBILE SATELLITE SERVICE
            SWITCHED RESALE SERVICE
            TRANSFER OF CONTROL
            SUBMARINE CABLE LANDING LICENSE
            INTERNATIONAL SPECIAL PROJECT




   Description of Application:


                                            FCC/mELLON        SEP 17 1998
                                    SWIDLER BERLIN SHEREFF FRIEDMAN, LLP

WASHINGTON OFFICE                                                                                            NEW YORK OFFICE
3000 K STREET, NW, SurrE 300                                                                                919 THIRD AVENUE
]\YASHINGTO(I;,OZD)izl‘iOOT-S 116                                                                    NEW YORK, NY 10022—9998
 ELEPHONE               —7500                                                                         TELEPHONE (212) 758—9500
FACSIMILE (202) 424—7647                                  September 16, 1998                           FACSIMILE (212) 758—9526


         * VIA FEDERAL EXPRESS

             Federal Communications Commission                                Streamlined     ITC—T/C—19980917—00672
                     i l Bureau Telecommunicfcati
             Internationa                             (v1S! on
                                             ations Divisi                    NA       C OMMUNICATION S, INC.
                                                                              NACT TELEC
             P.O. Box 358115                                         4
             Pittsburgh, PA 15251—5115                               —C—

                         Re:        Application for Authority Pursuant to Section 214 of the Communications Act
                                    of 1934, as Amended, to Transfer Control nunc pro tunc of International
                                    Authorization

             Dear Sir or Madam:

                     On behalf of NACT Telecommunications, Inc. ("Applicant"), enclosed for filing are an
             original and six (6) copies of the above—referenced application. Applicant respectfully requests
             expedited treatment of this application.                                                          ®

                    As required by the Commission‘s Rules, a check in the amount of $780.00 is enclosed to
             cover the filing fee. Please date—stamp the enclosed extra copy of this application and return it
             in the self—addressed, postage paid envelope provided. Should you have any questions concerning
             this application, please do not hesitate to contact us.

                                                                Respectfully submitted,


                                                                           JAAL       Y¥
                                                                C        ine Wang
                                                                Je         bbons

                                                                Counsel for NACT Telecommunications, Inc.
             Enclosures

             go:         Troy Tanner (FCC)
                         Joanna Lowry (FCC)
                          Walter S. Saguibo
                          Mark A. Gergel

             251210.1




                                                                                                  COPY


                                      Before the
                         FEDERAL COMMUNICATIONS COMMISSION
                                       Washington, D.C. 20554




                                                        )
    In the Matter of                                    )
                                                        )
    NACT TELECOMMUNICATIONS, INC.                       )
                                                        )   File No. I—T—C—97—167
    Application for Authority                           )   + /’I"C, — 199g041 72 OO (o‘G.J.
    Pursuant to Section 214 of the Communications       )
    Act, as amended, to Transfer Control of NACT        )
    Telecommunications, Inc.                            )
                                                        )




                                           APPLICATION


           NACT Telecommunications, Inc. ("NACT"), by its undersigned counsel, hereby requests

    authority pursuant to Section 214 of the Communications Act of 1934, as amended, 47 U.S.C.

    § 214 (1982), and Section 63.18 of the Commission‘s Rules, 47 C.F.R. § 63.18 (1996), to

   transfer control of NACT and its Section 214 authorization in connection with the sale of NACT

    stock by NACT‘s majority shareholder, GST Telecommunications, Inc. ("GST") to World

o Access, Inc. ("WAI"). Because the sale of GST‘s stock was consummated on February 27, 1998,

   NACT herein respectfully requests that authority be granted nunc pro tunc."



   U       The Parties also seek herein special temporary authority ("STA") for this transfer as may
   be necessary while this regular application is pending. NACT‘s international operations are
   relatively small compared to NACT‘s non—carrier operations.               Accordingly, the Parties
   inadvertently did not file for Commission approval prior to completing the transaction. NACT
   will make every effort to make timely filings in the future, and regrets any inconvenience caused
   to Commission staff.


 1.    THE PARTIES

       A.         NACT TELECOMMUNICATIONS, INC.

        NACT is a publicly held Delaware corporation engaged in diversified telecommunications

‘activities, including the manufacture of telecommunications switching equipment. NACT also

provides certain international telecommunications services pursuant to Commission authority

granted under Section 214 of the Communications Act on June 2, 1997. Prior to the Transaction

described below, GST owned the majority of NACT‘s outstanding stock (approximately 63 %) and

WAI owned a minority (less than 5%) of NACT stock.

       B.         WORLD ACCESS, INC.

       WAI is a publicly held Delaware corporation whose principal business is the manufacture

of telecbmmunications switching products. WAI is not itself a common carrier and does not hold

Commission authority. WAI‘s ownership is described on page 5 herein. As described herein,

WAI is legally, financially and managerially qualified to acquire ownership control of NACT.




II.    DESCRIPTION OF THE TRANSACTION

       This application seeks authority nunc pro tunc for a transfer of control effected by a sale

of NACT stock from GST and its subsidiary, GST USA, Inc., to WAI on February 27, 1998.

WAI paid $17.50 per share for the NACT stock, with $59.6 million to be paid in cash and $12.2

million in WAI common stock. WAI also has an option to buy the remaining shares of NACT




*(...continued)
will make every effort to make timely filings in the future, and regrets any inconvenience caused
to Commission staff.

                                              — 3:


stock held by GST. As a result of this Transaction, GST and GST USA no longer hold any

interest in NACT, and WAI now holds a controlling 68 % interest in NACT. Following this

Transaction, NACT will operate as a subsidiary company of WAI. The stock transfer will not

affect NACT‘s operations, and NACT will continue to provide high—quality, affordable

telecommunications services to the public consistent with the authorizations it has received from

the Commission. The Transaction did not effect any change in the nameof, or services provided

by, any certificated entity. As such, this Transaction has not and will not in any way disrupt

service, nor will it cause inconvenience or confusion to customers. Indeed, the Transaction will

be completely transparent to customers in termsof the services they will receive.




III.   PUBLIC INTEREST CONSIDERATIONS

       The Transaction will serve the public interest in promoting competition among

telecommunications carriers.      The Transaction will provide NACT with the opportunity to

strengthen its competitive position with greater financial resources that allow for greater flexibility

to improve and expand its business. Furthermore, the Transaction will benefit consumers by

increasing the breadth and scope of telecommunications services made available through the

planned expansion of NACT‘s operations and international network. Greater access to capital

enhances NACT‘s ability to bring competitive services to consumers in the U.S. international

telecommunications market. Because NACT is a small, nondominant, international carrier, the

transaction will not lessen competition, and will raise no antitrust concerns.


IV.    INFORMATION REQUIRED UNDER SECTION 63.18

       As required by Section 63.18 of the Commission‘s Rules, NACT submits the following

information:


       (a)     Name, address and telephone number of the applicant:

                      NACT Telecommunications, Inc.
                      191 West 5200 North
                      Provo, UT 84604
                      Telephone:     801—802—3000
                      Facsimile:     801—802—2005

               Name, address and telephone number of the transferee:

                      World Access, Inc.
                      945 East Paces Ferry Road
                      Suite 2240
                      Atlanta, GA 30326
                      Telephone:     404—231—2025
                      Facsimile:     404—262—2598

       (b)     NACT is a publicly held corporation organized under the laws of the State of
               Delaware.

               World Access is a publicly held corporation organized under the laws of the State
               of Delaware.

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

                      Catherine Wang
                      Jean Gibbons
                      Swidler Berlin Shereff Friedman, LLP
                      3000 K St., NW.
                      Suite 300
                      Washington, DC 20007—5116
                      Telephone:      202—424—7500
                      Facsimile:     202—424—7645


         with copies to:

                 Walter S. Saguibo
                 Assistant Controller
                 NACT Telecommunications, Inc.
                 191 West 5200 North
                 Provo, UT 84604
                 Telephone:     801—802—3000
                 Facsimile:     801—802—2005

                and

                Mark A. Gergel
                Executive Vice President & Chief Financia.       fficer
                World Access, Inc.
                945 East Paces Ferry Road
                Suite 2240
                Atlanta, GA 30326
                Telephone:      404—231—2025
                Facsimile:      404—262—2598

(d)      Applicant holds authority to operate as a nondomina:    nternational facilities—based
         and resale carrier with global authority pursu          t to Section 214 of the
         Communications Act of 1934, as amended, ar               the Commission‘s Rules.
         Specifically, Applicant holds the following certific;   mn:

                NACT Telecommunications, Inc., FCC File]          ITC—97—167 (effective June
                2, 1997), Public Notice Report No. I—8241        1. May 8, 1997) (authority
                to operate as a nondominant international fac    ties—based and resale carrier
                with global authority) as amended, filing d:;    1 Apr. 15, 1997 (providing
                additional information regarding NACT              lack of foreign carrier
                affiliation).

         WAI holds no authorizations from the Commission.


(e)(5)   This application seeks Commission consent to the transfer of control of NACT‘s
         authorization listed above in paragraph (d). The authorization sought in this
         application will approve a transfer of control whereby NACT will become
         controlled by World Access, Inc. NACT will continue to provide the services it
         currently is authorized to provide in compliance with the Commission‘s rules and
         the terms of its authorization. _

(£)      Not applicable.


       (g)       Not applicable.

       (h)       Applicant certifies that, under Section 63.18(h)(1)(i) of the Commission‘s Rules,
                 47 C.F.R. § 63.18(h)(1)(i), neither NACT nor its new majority owner, WALI, is
                 affiliated with any foreign carriers or U.S. carriers whose facilities—based services
                 NACT prof          :o resell.

                 After the T:      tion, the follo"    ig entity holds a ten percent (10%) or greater
                 ownership i       t in NACT:


                 Name/Addr                               Citizenship         %   Principal Business

                 World Acce        .                     U.S..           68%     Telecommunications
                 945 East Pa       »rry Road
                 Suite 2240
                 Atlanta, GA       .6
                 Telephone:        1—231—2025
                 Facsimile:        1—262—2598

             .   No single &       or person hok       2 ten percent (10%) or greater ownership or
                 managemen         ‘est in World A     ess, Inc.

                 Information       ding the interlc    ing directorates of NACT (post—Transaction) is
                 attached he1      ; Attachment A      ‘ this application.

       (0)       As required       ction 63.18 (i) \   he Commission‘s Rules, 47 C.F.R. § 63.18(i),
                 NACT and          l Access certify    iat they have not agreed to accept nor will they
                 accept in tt      ire any specia      oncessions, as defined by the Commission‘s
                 Rules, direc      indirectly from     y foreign carrier or administration with respect
                 to traffic or     ue flows betw       1 the U.S. and any foreign country for which
                 NACT may          thorized to ser      except such concessions as may be permitted
                 under the F.      : Participation     ‘der.*

       0)        NACT and World Access are not subject to a denial of Federal benefits pursuant
                 toSection 5301 of the Anti—Drug Abuse Act of 1988. NACT‘s and World Access‘
                 certifications pursuant to Section 1.2002 of the Commission‘s Rules (implementing
                 the Anti—Drug Abuse Act of 1988, 21 U.S.C. § 3301) are attached.




¥      Foreign Participation in the U.S. Telecommunications market, IB Docket No. 96—111,
Report and Order, FCC 97—298 (rel. Nov. 26, 1997) ("Foreign Participation Order").

                                                  —~6—


¥.         CONCLUSION

           For the reasons stated above, NACT Telecommunications respectfully submits that the

public interest, convenience, and necessity would be furthered by a grant of this application for

consent to the transfer of control of Applicant‘s Section 214 authorization.

                                             Respectfully submitted,

                                             NACT Telecommunications, Inc.




                                             By:     \@O,LUOOMC
                                                       therine    Wakg
                                                   @n Gibb(%}]
                                                    Swidler Berlin Shereff Friedman, LLP
                                                    3000 K St., N.W., Suite 300
                                                    Washington, DC 20007—5116
                                                    202—424—7500

                                                    Its Counsel



Dated: September 16, 1998




250443.1


                              CERTIFICATION OF APPLICANT


        On behalf of NACT Telecommunications, Inc. and in accordance with Section

 1.2001—1.2003 of the Commission‘s Rules, 47 C.F.R. §§ 1.2001—1.2003, I hereby certify that no

_ party to this application is subject to a denial of Federal benefits that includes FCC benefits

 pursuant to Section 5301 of the Anti—Drug Abuse Act of 1988. See 21 U.S.C. § 853a. I also

 hereby certify that the statements in the foregoing application for Section 214 authority are true,

 complete, and correct to the best of my knowledge and are made in good faith.

        NACT Telecommunications, Inc. has not agreed to accept any concessions directly or

 indirectly from any foreign carrier or administration with respect to traffic or revenue flow

 between the United States and various international points under the authority granted under

 Section 214 of the Communications Act of 1934, as amended, and the Commission‘s Rules, and

 has not agreed to enter into such agreements in the future, except such concessions as may be

 permitted under the Foreign Participation Order.

                                               NACT Telecommunications, Inc.




                                               o udk i W
                                               Walter S. Saguibo
                                               Assistant Controller
                                               September %, 1998


                            CERTIFICATION OF TRANSFEREE


        On behalf of World Access, Inc. and in accordance with Section 1.2001—1.2003 of

 the Commission‘s Rules, 47 C.F.R. §§ 1.2001—1.2003, I hereby certify that no party to

~ this application is subject to a denial of Federal benefits that includes FCC benefits pursuant

 to Section 5301 of the Anti—Drug Abuse Act of 1988. See 21 U.S.C. § 853a. I also hereby

 certify that the statements in the foregoing application for Section 214 authority are true,

 complete, and correct to the best of my knowledge and are made in good faith.

        World Access, Inc. has not agreed to accept any concessions directly or indirectly from

 any foreign carrier or administration with respect to traffic or revenue flow between the United

 States and various international points under the authority granted under Section 214 of the

 Communications Act of 1934, as amended, and the Commission‘s Rules, and has not agreed to

 enter into such agreements in the future, except such concessions as may be permitted under the

 Foreign Participation Order.

                                             World Access, Inc.




                                             By:           m‘q@é@@g
                                                                      §2
                                             Mark A. Gergel
                                             Executive Vice President and
                                              Chief Financial Officer

                                             September _‘i, 1998


                                      ATTACHMENT A

                                   Response to § 63.18(h)(2)


           NACT Telecommunications, Inc. —— Interlocking Director/Officer Positions
                                    (Post—Transaction)


NACT Directors                       Other Positions Held

Mark A. Gergel                       Executive Vice President and Chief Financial Officer,
                                     World Access, Inc.

Steven A. Odom                       Chairman of the Board and CEO, World Access, Inc.

Hensley E. West                      Director, World Access, Inc.




250443.1



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Document Modified: 2019-04-22 04:06:14

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