Attachment 20170202090601-983.p

20170202090601-983.p

SUPPLEMENT

Supplement

1999-01-20

This document pretains to ITC-T/C-19990120-00072 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC1999012000072_1401589

                                     Streamlined       ITC—T/C—19990120—00072
                                     GTS (U.K.) LTD.




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



    ASSIGNMENT OF LICENSE
    GLOBAL FACILITIES—BASED SERVICE
    GLOBAL FACILITIES—BASED/GCLOBAL RESALE SERVICE
    GLOBAL RESALE SERVICE
    INDIVIDUAL FACILITIES—BASED SERVICE
    INTERCONNECTED PRIVATE LINE RESALE SERVICE
    LIMITED GLOBAL FACILITIES—BASED SERVICE/LIMITED
     GLOBAL RESALE SERVICE
    LIMITED GLOBAL FACILITIES—BASED SERVICE
    LIMITED GLOBAL RESALE SERVICE _
    INMARSAT AND MOBILE SATELLITE SERVICE
    SWITCHED RESALE SERVICE:—
   ~TRANSFER OF CONTROL—
    SUBMARINE CABLE LANDING LICENSE
    TINTERNATIONAL SPECIAL PROJECT




Description of Application:




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                               SWIDLER BERLIN SHEREFF FRIEDMAN, LLP @ @ [I'—')                                           PY
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                                                                                                                 NEW YORK OFFICE
3000 K STREET, NW, SUITE 300                                   y fi\i’\‘ §                                       919 THIRD AvEenUE
WasHNGToN, DC 20007—5116                                 \—_GQ] yfyel                                    NEw YoRK, NY 10022—9998
TELEPHONE (202) 424—7500                                                                                 TELEPHONE (212) 7589500
FACsIMILE (202) 424—7647                                                                                   FACSIMILE (212) 7589526

                                                         January 20, 1999

          VIA COURIER

          Federal Communications Commission
          International Bureau
          Telecommunications Division
          P.O. Box 358115
          Pittsburgh, PA 15251—5115

                     Re:       Application of Global Telesystems Group, Inc. and Esprit TelecomU.K.
                               Limited for authority pursuant to Section 214 of the Communications Act of 1934,
                               as amended. to transfer control of an authorized international carrier.

          Dear Sir or Madam:

                  Enclosed for filing with the Commission are an original and six (6) copies of the
          Application of Global Telesystems Group, Inc. ("GTS") and Esprit Telecom U.K. Limited ("Esprit)
          for authority pursuant to Section 214 of the Communications Act of 1934, as amended, to transfer
          control of Esprit, a nondominant carrier authorized by the Commission to provide international
          message telecommunications services in the United States, to GTS.

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

                                                              Respectfully submitted,


                                                              A%tsky%
                                                              Counsel for
                                                              Esprit Telecom U.K. Limited
                                                              Global Telesystems Group, Inc.

          Enclosures

          go:        Troy Tanner (FCC—IB)
                     Grier C. Raclin
                     Tain Osborne


                      FEDERAL COMMUNICAT! ONS COMMISSION
                                                                                      COPY
                               Washingtcon, D.C. 20554

In th: Matter of                                   )
                                                   )
GLCBAL
     LC TE e LESYSTEMS
                  |    GROUP, INC +                3                4\/ft”f/c"?”‘?ggf’ffl’
                                                                               |      ail/~   _p%0
                                                                                               6 )) &
                                                                                                    o

        and                                        )
                                                   )          File )No. ISP—99—
ESPIUT TBEL COM U.K. LIMITED                       )
                                                   )
A »plication fir author ty pursuant :o             )
Section 214 o ‘ the                                )
Communicati ms Act of 1934,                        )
as aniended, t ) transfe: control of in            )
at thorized int rnationiil carrier                 )
CE Rme                                            _
                                        JOINT AFPLIC ATICON

        (Globa Telesystems Group. Inc. ("GTS") and Esprit Tel:com J.K. Limited ("Esprit")"‘

(collctively t ie "Applicants"), by their undersigned cour sel, h:reby request approval to allow

GTS, upor. cc nsummation of the transactions clescritied below, t acqu ire ownership and control

of Es prit, whi :h is a nc ndominant carrier autho rized y the Federal Cor imunications Commission

("FCC" or      ‘Commission") to provide facilities—basec. and reso‘d international. message

telecommunications      services   ir     the   Unted   States."    GTS    provides   international

telecommunications services pursuant to Section 214 authority issued by the Commission to GTS‘




U      "Esprit" refers throughout this application to Esprit and to its parent, Esprit Telecom
Group plc.

¥      Esprit originally filed for Section 214 authority with the Commission under the name of
Esprit Telecom of the United Kingdom Ltd. See In the Matter of Esprit Telecom of the United
Kingdom Ltd., File No. ITC—95—435, Order and Authorization, 10 FCC Red 11,086 (1995).
Esprit subsequently changed its name to Esprit Telecom U.K. Limited. Esprit wishes to correct
the record by making the Commission aware of its name change.


affiliates: Hermes Europ : Rail el B.‘V/.; Hc:_rmes Europe Railtel (Ireland) Ltd.; Hermes FEurope

Railtel (Network) Ltd.; HEER N tworl;: Services B.V.B.A.; and Hermes Europe Railtel (US , Inc.

(hereinafter the "G°TS Su sidia ies").*

       As fully describec here‘n, approval of the transfer will per nit G‘TS and Esprit to 1 salize

significant economic an| marceting efficiencies that will enhance their atility :o coitinue

providing high quality, Ic w cos : telecommt nicati ons services and t) com»ete more effectiy ely in

the international telecon munication:; marcetplace.     Moreover, ‘he trinsact on will have no

anticompetitive effects in the U.S. te ecom nunications marketplac:. Accordi1nigly, grant of this

Application will serve th : publ c interest.

       Applicants respec fully ‘equest expedited treatment of this .\pplication n order to 1 ermit

them to consummate the »ropo ied trinsfer of control transaction ro late: than March 3, 1 299.

       In support of this Appli:ation, App icants submit the informmatior prov ded below.

I.     THE PARTIES

       A.      Global Te lesyst ‘ms C:roup . Inc.

       GTS is a leading indevnendent owner and operator of te ecom nunications comjpanies

throughout Europe.     GT S provides cross—border transport of, and facilities—»ased ac;ces; for,

voice, data, Internet and other telecommunications services in Europe, as well as high quality

telecommunications services in Russia and the Commonwealth of Independent States.

Headquartered in McLean, Virginia, GTS‘s affiliates have offices in London, Brussels, Moscow,

Budapest, Kiev, Prague and Paris.




3¥     See TTC—214—19980903—00619.


       The GTS Subsidiaries are authorized to provide international swi           voice and private

line services between the United States and international points using th         m facilities or by

reselling international services of existing facilities—based carriers, pi        t to Section 214

authorization granted by the Commission. The GTS Subsidiaries are reg             . as non—dominant

under the FCC‘s rules.     It is respectfully submitted that, after comple        f the transaction

described herein, the GTS Subsidiaries will continue to be qualified tc           ate as authorized

nondominant international carriers.

       B.      Esprit Telecom U.K. Limited

       Esprit is one of the leading independent European carriers. Fou            in 1992, it offers


facilities—based telecommunications services predominantly to business c          ers in 30 cities in

eight countries in Europe, generating revenues of over one billion minut:         raffic per annum. .

The group is incorporated in the U.K.., and its stock is traded on the N.         Q and EASDAQ

exchanges. Affiliates hold operating licenses in France, Germany, the Ne          nds, Belgium, the

U.K., Spain, Portugal and Ireland.

       Esprit is a nondominant telecommunications carrier authorized t            vide international

switched voice and private line services between the United States and in         ional points using

its own facilities or by reselling international switched voice services of exisumg facilities—based

carriers, pursuant to Section 214 authorization granted by the Commission. It is respectfully

submitted that, after completion of the transaction described herein, Esprit will continue to be

qualified to operate as an authorized nondominant international carrier.


       II.     THE TRANSACTION

       On December 8, 1998, GTS publicly announced that it had reached agreement with Esprit

on the terms of a proposed recommended offer to acquire all the share capital of Esprit Telecom

Group plc. Under the terms of the proposed offer GTS will exchange its own ordinary shares for

Esprit shares and, after consummation of the proposed acquisition, Esprit will become a wholly—

owned subsidiary of GTS. The holders of 65% of Esprit ordinary shares have given irrevocable

undertakings to accept the offer, andthe offer is conditional on GTS securing acceptance by 90%

of ordinary shares (although this condition can be waived by GTS).

       The combination of GTS and Esprit will assist both companies in their mutual goals of

becoming major providers of carriers‘ carrier and business communications services throughout

Europe. Together, GTS and Esprit will have one of the largest independent cross border carriers‘ .

carrier networks in Europe and will have an extensive sales force in eleven (11) countries in

Western Europe. This merger will allow the combined group to compete effectively with large,

well—established providers of telecommunications services in Europe, allowing carriers and

businesses from the United States and other countries to realize the benefits of a more competitive

telecommunications market in Europe.                                                     |

III.   PUBLIC INTEREST CONSIDERATIONS

       In accordance with Section 214(a) of the Communications Act of 1934, as amended, and

the Commission‘s public interest analysis,*" consummation of the proposed transfer of control of



4/     See Application of WorldCom, Inc. and MCI Communications Corporation for Transfer
of Control of MCI Communications Corporation to WorldCom, Inc., CC Docket No. 97—211,
Memorandum Opinion and Order, 13 FCC Red 18025, para. 8 (rel Sept. 14, 1998) (herein
                                                                       (continued...)

                                               —4_


Esprit‘s license will serve the public interest, convenience and necessity by enhancing compei

and increasing consumer choice.      Evaluated under the Commission‘s current public int

standard, the competitive and other benefits of the proposed transfer are substantial, while

are no adverse effects."

       The proposed transfer will promote competition among providers of interexch

telecommunications services by combining the financial resources and complementary manag

skills and experience of GTS and Esprit in providing telecommunications services to the pt

The Applicants anticipate that the contemplated business combination will result in a com

with a broader market base that is better equipped to accelerate its growth as a compei

telecommunications service provider. The transfer of control will allow Applicants to ma

their telecommunications operations more efficiently, thereby enhancing Applicants‘ operat

flexibility and efficiency as well as their financial viability. These enhancements will acer

the benefit of both carriers‘ customers, who will also benefit from the expanded array of ser

offered by each carrier.




4/     (...continued)
WorldCom/MCI Order); Teleport Communications Group Inc., Transferor, and AT&T Corp.
Transferee, CC Docket No. 98—24, Memorandum Opinion and Order, FCC 98—169 at para. 11
(rel. July 23, 1998) ; Applications of NYNEX Corp., Transferor, and Bell Atlantic Corp.,
Transferee, For Consent to Transfer Control ofNYNEX Corp. and Its Subsidiaries, File No. NSD—
L—96—10, Memorandum Opinion and Order, 12 FCC Red 19985, at 20000, para. 29 (1997) (herein
BA/NYNEX Order); In the Matter of the Merger of MCI Communications Corp and British
Telecommunications PLC, GN Docket No. 96—245, Memorandum Opinion and Order, 12 FCC
Red 15351, 15364, para. 28 (1997) (herein BT/MCI Order).

3      See WorldCom/MCI Order at para. 8.
                                               —§.


        For the reasons discussed below, th: prop ased transfe s of control will al so have no a iverse

effects on competition in telecommun icatio: is mariketpleces. Unlike the particip ints tc the x erger:

involving the Bell Operating Companies and the acquisiticn of MCI by BT," neither G‘ °S no:

Esprit possess control over bottleneck facilities.      Th: Applicant; also provide seivices in the

domestic and international lonjz—dist: nce nuarket>laces, where lov‘ entry barriers ar d nur rierou:

competitive alternatives exist.     Moreove:, sin:e the Applicant:; will, in every nstanc:e, be

competing with one or more incumbent ser ice providers, custome s will have a choize of : ervict

providers if the Applicants charge h: gher han niarket prices:. Accordingly, tie Applicar ts wil

not be able to exercise any market power. Given the Applicants‘ lack of market power ; nd the

absence of an affiliation with a foreig: i carr er with mar cet po wer, the transfer of con rol al io wil

not hinder the Commission‘s regulatory oversigit responsibilities

        The proposed transaction will there ‘ore ensure the continue 1 provision of hig)i qual ty anc

innovative telecommunications services to »xisting cus :omer ; and ;should prom ote cc mpeti :ion i1

the U.S. interexchange and intern:tional telecommuinications s>rvice market.                n sua, the

proposed acquisition will serve the public ntere t by enhancing the ability of STS ind E: prit t«

offer, through their subsidiaries, competi ively priced services i1 the U.S. ntere: :cflan; ie anc

international telecommunications marketplace, and will not have any anticompetitive impact in the

United States telecommunications market.




o       See BA/NYNEX Order at para. 37.

4       See BT/MCI Order at para 3 n.8.


IV.    INFORMATION REQUIRED BY SECTION 63.18

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

Applicants submit the following information:

       (a)    Name and address of Applicants:

                     Global Telesystems Group, Inc.
                     1751 Pinnacle Drive
                     North Tower — 12" Floor
                     McLean, VA 22102
                     (703) 918—4548 (Telephone)
                     (703) 918—0371 (Facsimile)

                     Esprit Telecom U.K. Limited
                     Minerva House
                     Valpy Street
                     Reading RG1 1AR
                     United Kingdom
                     011—44—118—951—4049 (Telephone)
                     011—44—118—951—4046 (Facsimile)

       (b)    GTS is a corporation organized under the laws of the State of Delaware. GTS
              Subsidiaries authorized under Section 214 include:

                     o      Hermes Europe Railtel B.V., a business corporation organized
                            under the laws of the Netherlands;
                     o      Hermes Europe Railtel (Ireland) Limited and Hermes Europe Railtel
                            (Network) Limited, business corporations organized under the laws
                            of the Republic of Ireland;
                     o      HER Network Services B.V.B.A., a corporation organized under
                            the laws of Belgium;
                     o      Hermes Europe Railtel (U.S.) Inc., a business corporation
                            organized under the laws of the State of Delaware.

              Esprit is a corporation organized under the laws of England.

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

                     Grier C. Raclin, Esq.
                     Senior Vice President, General Counsel and Corporate Secretary
                     Global Telesystems Group, Inc.

                                               —7


                 1751 Pinnacle Drive
                 North Tower — 12" Floor
                 McLean, VA 22102
                 (703) 918—4573 (Telephone)
                 (703) 918—07 38 (Facsim‘le)

                 and to:

                 Adam Kupetsky
                 Swidler Berlin Shereff Friedman LLP
                 3000 K. Srect, N.W., Si1ite 300
                 Washington, D C. 20007
                 202/424—, 500 (Telephotre)
                 202/424—,645 (Facsitaile)

                 with a copy :0:

                 Tain Osborne , Director of Regulatory Affzirs
                 Esprit Te‘ecom U.K. Li nited
                 Minerva House
                 Valpy Str:et
                 Readicg BG!| 1 AR
                 United Kingdotn
                 011—44—118—951—4049 (Telephone)
                 011—44—118—951—4046 (F acsimile,

(d)       Esprit currently operites as an authorized nondominant international carrier
          pursuant to Section 21« authoriy.

          The GTS Subsidiari:s :urrently operate as authorized nondominant international
          carriers pursuant to Setion 214 authority.

(e)(35)   This application seeks authority for the transfer of control of Esprit, which is a
          nondominant common carrier holding international Section 214 authorization, to
          GTS, a telecommunications company whose subsidiaries hold international Section
          214 authorization. GTS and Esprit currently are not affiliated with each other.

(£)       Not applicable.

(g)       Not applicable.

(h)       Affiliations and Shareholders


              GTS is affiliated, as defined in Section 63.18(h)(1), with the foreign carriers listed
              in Exhibit A. These carriers lack the ability to discriminate against unaffiliated
              U.S. carriers through control of bottleneck facilities or facilities in the destination
              countries. GTS‘s Section 214—authorized affiliates are therefore non—dominant
              carriers    theroutes applicable to its affiliations.

              The foll«   ng individuals or entities directly or indirectly possess ten (10) percent
              or more     the equity of GTS:

              §     3     7     ‘eholder.     .   f          15    ppr     .   Sh omcs is




             George S     is and affiliates                       16.55%
             c/o Soros    ind Management
             888 Sever     Avenue, 31" Floor
             New Yorl     NY10106

             Fidelity \   iagement & Research Corp.               11.17%
             82 Devon     re Street
             Boston, M     02109

             and

             Fidelity 1   rnational Ltd.
             P.O. Box     M 670
             Hamilton.     ermuda

             Mutuelles    XA/AXA—UAP                              10.45%
             The Equit    le Companies
             Incorpora
             9 Place V    lome
             75001 Pa     FRANCE
              *      C    rership interests including warrants to purchaseshares.

              These data relate to shares of Common Stock which will be beneficially owned
              after the Offer, and are excerpted from Form S$4 submitted to the Securities and
              Exchange Commission. Percentages of ownership are based on the 60,495,446
              shares of Common Stock issued and outstanding at September 30,1998. Excluded
              from this total number are: 4,444,443 shares of Common Stock that are subject to
              the exercise of warrants in Common Stock (of which warrants for 3,333,333 shares
              are held by George Soros and affiliates); 5,336,893 shares of Common Stock


&       Percent stakes represent holdings of several separately managed funds and are based on
filings to the Securities and Exchange Commission.

                                                      — 9.


               issued under the Company‘s options plans; and 3,737, 407 shares of Common
               Stoc c issu=d as of November 30, 1998 in connection with GTS‘ acquisition of
               NetSource. (An additional 300,093 shares will be issued in exchange for
               NetS ource shares that will be tendered in connection with that acquisition, subject
               to N :tSouw: ce meeting certaiiperforniarce tarzet; d iring the first 1wo quarters of
               199¢ .)

               Owr ershif interests include warrants to Jurch:iise shiires althc ugh the total number
               of sl ares on which percentiges are calculiited e:cclides vrarrants. (This has the
               effec t of 0 zer—stating the hoding of (Georg: Sorcs and affilistes.)

               Other thar the three shar cholders naned1 a»ove, no other shareliolder will be the
               direc t or i1 direct owner of mor : than 10% of the coonmon shares 0 ° GTS after the
               dilut ion ca used by the Offer.

               The Appli:ant certifies that it coes not havs any int»rlocking: directorates.

               GTS certilies that it is aot afiliated ‘witi iny dominant J.S. carriers whose
               facil ties—b aised services it proposes to resel :. «3TS riay wish to resell the services
               of E iprit t pon closing the: transaction, tut Esprit is not regu ated is doniinant on
               any of the routes to be served.                                                ’

       (1)     By he atached certificaton and as requirel y Section 6:).18(i of the
               Com mission‘s Rules, GTS :ertifies that it his rot agreed to accept any special
               conc »ssiot s, as defined by‘ the Comm‘ssion‘s KR ules, directly cr indirectly from any
               forei gn ca: rier or admini:tr; tion with re spect to ‘raific or revenue flows between
               the U.S. a 1d any foreign cointry whick it may te suthorized to serve and it will
               not ¢nter i ito such agreeimmeints in the futur:, exo:pt as perm tted ty FCC rules.

       (J)     By he atached certificat on and as requirel y Section 6.).18(;. of the
               Con mission‘s rules, both partics certify thet n > part, to this \pplication is subject
               to a lenial of Federal be:nefits pursuant to Section 301 of the Arti—Drug Abuse
               Act of 1988.

                                          CONCLUSION

       For the reasons stated herein, Global Telesystems Group, Inc. and Esprit Telecom U.K.

Limited respectfully submit that the public interest, convenience, and necessity would be furthered

by grant of this application for consent to the transfer of control of Esprit to GTs. Applicants



                                                 — 10 —


  respectfully request that the Commissionauthorize the transfer ofcontrol described herein to permit

  the Applicants to consummate thetransaction no later than March 3, 1999.

                                              Respectfully submitted,

                                              GLOBAL TELESYSTEMS GROUP, INC.
                                              ESPRIT TELECOM U.K. LIMITED


                                        By:     /% 74 fl/é;
                                              Adam Kupetsky      _flép/v
                                              Swidler Berlin ShereffFriedman, LLP
                                              3000 K Street, N.W., Suite 300
                                              Washington, D.C. 20007
                                              202/424—7500 (Telephone)
                                              202/424—7645 (Facsimile)

                                              Their Counsel

_— Grier C. Raclin, Esq.
   Senior Vice President, Corporate Counsel and Corporate Secretary
   Global Telesystems Group, Inc.
   1751 Pinnacle Drive
  North Tower — 12" Floor
  McLean, VA 22102
  (703) 918—4573 (Telephone)
  (703) 918—0338 (Facsimile)

  Iain Osborne, Director of Regulatory Affairs
  Esprit Telecom U.K. Limited
  Minerva House
  Valpy Street
  Reading RG1 1AR
  United Kingdom
  011—44—118—951—4049 (Telephone)
  011—44—118—951—4046 (Facsimile)

  Dated: January 20, 1999




                                                  —1{{ =


   EXHIBIT A
Foreign Affiliations


                             FOREI(GN CARRIER AFFTILIATIONS

GTS has the following foreign carrier affiliations, as defined by the FCC‘s rules:




mmSnmndooondennnnnnndooonn
 Hermes Europe Railtel     Netherlands           92.85%                  International Long
 BV                                                                      Distance

 Hermes Europe Railtel     Ireland               100%                    International Long
 (Ireland) Ltd.                                                          Distance

 Hermes Europe Railtel     Ireland               100%                    International Long
 (Network) Ltd.                                                          Distance

 HER Network Service       Belgium               100%                    International Long
 B.V.B.A.                                                                ‘Distance

 GTS—Hungary Ltd.          Hungary               100%                    VSAT Network

 Hydrotel                  Hungary               25%                     Microwave Network
 Telecommunications Ltd.

 Catalina s.a.             Poland                49%                     International Long
                                                                         Distance Data
                                                                         Communications

 CzechNets.r.0.            Czech Republic        100%                    International Long
                                                                         Distance

 CzechCom s.r.o.           Czech Republic        100%                    Data and Internet

 Sitel—VSAT s.r.0.         Czech Republic        49%                     VSAT Network

 SC GTS Romania SRL        Romania               100%                    VSAT Network

 GTS Monaco Access         Monaco                50%                     Carriers‘ Carrier and
 S.A.M.                                                                  International Gateway

 EDN Sovintel              Russia                50%                     International Long
                                                                         Distance and Local
                                                                         Access


    Vostok Mobile, B.V.          Russia                     50% to 100%               Basic Cellular

    Prim Telephone               Russia                     50%                       Basic Cellular

    Golden Telecom               Ukraine                    49%                       Basic Cellular and
                                                                                      overlay services

    TeleCommunications of        Russia                     175%                      Local Access
    Moscow

    SFIT, Ltd., Co.              Russia                     100%                      Domestic Long Distance

    Sovam Teleport, LLP          Russia                     100%                      Data
                                 Kazakhstan
                                 Uzbekistan
                                 Azerbajain

    Sovam Teleport Kiev          Ukraine                    49%                       Data
    Division (a subsidiary of
    Sovam Tekeport, LLP)

    Shanghai V—Tech              China                      15%                       VSAT Network
    Systems Co., Inc.

    Beijing Tianmu Satellite     China                      70%                       VSAT Network
    Communications
    Technology Co. Ltd.

    C—Datacom International,     India                      100%                      International Private Line
    Jnc.  F                                                                           Communications




I                     Vostok Mobile, B.V. is a wholly owned subsidiary of GTS. Vostok Mobile, B.V., owns between
50% and 100% of a series of cellular ventures in various regions of Russia. The telecommunications companies in
which Vostok mobile, B.V. has interest are Penza Mobile (60%); Astrakhan Mobile (50%); Votec Mobile (50%);
Chuvashia Mobile (70O%); Lipetsk Mobile (70O%); Arkhangelsk Mobile Networks (50%); Saratovy Mobile
(50%)Volgograd Mobile (50%); Murmanskaya Mobilnaya Set (50%); Parma Mobile (50%); Unicel Bryansk (50%);
Unicel Kostroma (50%); Unicel Orel (50%); Altaisviaz (50%); Unicel Yaroslavi (50%); BashUnicel (50%); Mar
Mobile (50%); Novgorod Telecommunications (100%) and Unicel Ivanovo (50%).

19               SFIT Ltd. Co. holds the network license and co—manages fourteen joint ventures that are 50%
beneficially—owned by GTS. These fourteen joint ventures are TeleRoss—Irkutsk,; TeleRoss—Ufa, TeleRoss—
Novosibirsk, TeleRoss—Vladivostock, TeleRoss—Tiumen, TeleRoss—Khabarovsk, TeleRoss—Volgograd, TeleRoss—
Ekaterinburg, TeleRoss—Nizhni Novogorod, TeleRoss—Arkhangelsk, TeleRoss—Veronezh, TeleRoss—Samara, TeleRoss—
Komi and TeleRoss—Kubanelectrosviza.


JAN—19—99   15:14   FROM:SWIDLER     BERLIN     SHEREFF    FR    ID : 2024247645                     PAGE       2/ 2




                                   CERTIFICATION QF APPLICANT

             On behalf of Global Telesysteras Group, Inc. ("GTS"), I hereby certify that, except as
      permitted by the Commussion‘s Rules, GTS has not agreed to accept nor shall it accept in the
      future any special concessions, as defined by the Commission‘s Rules, directly or indirectly, from
      any foreign carrier or administration with respect to traffic or revenue flows or any U.S.
      international route where the foreign carrier possesses sufficient market power on the ‘oreign end
      of the route to affect competition adversely in the U.S. market,


             In accordance with Section 1.2001—1.2003 of the Commission‘s Rules, 47 C.E.R.
      §§ 1.2001—1.2003, I also certify that no party to the foregoing Application is subject to a denial
      of Federal benefits that includes FCC benefits pursuant to Section 5301 ofthe Anti—Urug Abuse
      Act of 1988. See 21 U.S.C. § 853a.


             1 further certify that the statements in the foregoing Application for Section 214 authority
      are true, complete, and correct to the best of my knowledg: and are made in good faith.


                                            GLOBAL TELISYSTEMS GROUP, INC.


                                           By                -—.&/Aéfi/ ,Z--
                                            Name:        Grier C. Raclin                  ep                |
                                                         Senior VVice President, uene ral Counsel
                                           Title:        ind beniral.C           1 Es

                                            Date         January 19, 1999


                                SWIDLER BERLIN SHEREFF FRIEDMAN, LLP

WaASHINGTON CEFICE                                                                                                 NEV YoRK OFF CE
3000 K STREET, NW, SuUtTE 300                                                                                     919 THIRD AVENUE
WASHINGTON, DC 20007—5116                                                                                  NEW YORK, NY 10022—9$98
TELEPHONE (202) 424—7500                                                                                    TELEPHONE (212) 758—9500
FACSIMILE (202) 424—7647                                  Februar ; 1 7, 1999                                FacsiMILE (212) 758—9526
                                                                              p=
                                                                             Fika{ (FXfY jg=p
          VIA_COURIER                                                                N tsl¥ ied
          Federal Communications Commission
          International Bureau Telecommunications Division             FEoteE 6 uis .ll
          445 12"" Street, S.W.                                              thace qy ces Crmeeny
          12" Street Lobby                                                            <fSocdayw   .
          TW—A325
          Washington, DC 20554

                     Attention:        Troy Tanner, Chief, Policy and Facilitics Branch, Internatio ial Bireau

                     Re:        Amendment to Application of Glo»al Telesyst:ms Croup, Inc. and Esprit Telesom U.K.
                                Limited for authority pursuant to Section 214 ol‘ thke Communications Act of 1934, as
                                amended, to transfer control of an autt orized ir ternational carrier,
                                Filed on January 20, 1999

          Dear Sir or Madam:

                  Enclosed for jiling with the Commission ar: aii original and six (6) copies ol‘ ar ariendment to the
          above—referenced application requesting authority, pur suant to Sectio 1 214 of the C¢e minu iications Act of
          1934, as amended, to transfer control of Esprit Telecoin U.K. Lim tec!, an authorizec. in ternational carrier,
         to Global Telesystems Group, Inc.

                  Please date—stamp the extra copy of this filing ind retur1| it in ‘he enclosed self—;ddressec, stamped
          envelope. Any questions regarding the enclosed fil ng should be a1diessed to the undeisig ned.

                                                               Respe ctfully subniitt 2d,
                                                                     se /            //               P

                                                               Adam Kupetsky

                                                               Counsel for
                                                               Global Telesystems Group, Inc.
                                                               Esprit Telecom U.K. Limited

          Enclosures

          ge:        Grier C. Raclin
                     Iain Osborne
                     Rebecca Arbogast (FCC—IB)


          268242.1


                                            Before the                                                      pais .
                      FEDERA                INICATIONS COMMISSION                                          / Lkz   Elt};pp
                                             gton, D.C. 20554                                                     * " isE

In the Matter of




                                                 A "A "A "A "a " "t " h "h "Ah h. t d
GLOBAL TELESYSTEMS GR

       and
                                                                                        File No. ISP—99—
ESPRIT TELECOM U.K. LIM]

Application for authority pursus
Section 214 of the
Communications Act of 1934,
as amended, to transfer control
authorized international carrier
                                                 I




                              Al             TOAPPLICATION

       In accordance withSectil              : Communications Act of 1934, as amended, 47 U.S.C.

§ 214, and Section 63.18 ofthe C             s Rules, 47 C.F.R. § 63.18, Global Telesystems Group,

Inc. ("GTS") and Esprit Telecon              ted ("Esprit") (collectively the "Applicants"), by their

undersigned counsel, hereby ame              ding application for authority to transfer ownership and

control of Esprit to GTS. In pa              Applicants wish to update information with regard to

GTS foreign carrier affiliations. ror ine vommission‘s convenience, Applicants are resubmitting

GTS‘ foreign carrier affiliation chart with the corrected information in italics. The Applicants also

hereby attach as Exhibit B an updated list of Esprit‘s foreign carrier affiliations. Other than these


changes, the statements and information contained in the initial application filed on January 20,

1999, remain accurate.



                                           Respectfully submitted,

                                           GLOBAL TELESYSTEMS GROUP, INC.
                                           ESPRIT TELECOM U.K. LIMITED



                                     By:       /é/% /Z;W%
                                           Adam Kupetsky
                                           Swidler Berlin Shereff Friedman, LLP
                                           3000 K Street, N.W., Suite 300
                                           Washington, D.C. 20007
                                           202/424—7500 (Telephone)
                                           202/424—7645 (Facsimile)

                                           Their Counsel

Grier C. Raclin, Esq.
Senior Vice President, Corporate Counsel and Corporate Secretary
Global Telesystems Group, Inc.
1751 Pinnacle Drive
North Tower — 12‘" Floor
McLean, VA 22102
(703) 918—4573 (Telephone)
(703) 918—0338 (Facsimile)

Iain Osborne, Director of Regulatory Affairs
Esprit Telecom U.K. Limited
Minerva House
Valpy Street
Reading RG1 1AR
United Kingdom
011—44—118—951—4049 (Telephone)
011—44—118—951—4046 (Facsimile)

Dated: February 17, 1999


                         EXHIBIT A

Fbreign Carrier Affiliations for Global Telesystems Group, Inc.


                                FOREIGN CARRIER AFFILIATIONS

GTS has the following foreign carrier affiliations, as defined by the FCC‘s rules:




 Heirmes Europe Railtel      Austria,*‘ Belgium,           89.9%           Ir ternatio:nal Long
 BV                          Denmark, France,                              Distance
                             Germany, Italy,
                             Luxembourg, Spain,
                             Sweden, Switzerland,
                             The Netherlands, United
                             Kingdom

 GTS—Hungary Telecom         Hungary                       100%            VSAT Network
 Ltd.

 Hydrotel                    Hungary                      25%              International and
 Telecommunications Ltd.                                                   Domestic Data Services

 Catalina Sp.2.0.0.          Poland                        73%             International Long
                                                                           Distance Data
                                                                           Communications

 ATOM SA                     Poland                        54.3%           International and
                                                                           Domestic Data Services

 GTS CzechNet s.r.o.         Ciec.1 Republic               100%            Internztional Long
                                                                           Cistance

 GTS CzechCom s.r.o.         Czec1 Republic                100%           | Cata and Internet

 Sitel—VSAT s.r.0.           Czeci Republic               49%             | VSAT Network
 SC GTS Romania SRL          Romania                       100%            VSAT Network

 GTS Monaco Access           Monaco                        50%             Carriers‘ Carrier and
 S.A.M.                                                                    International Gateway

 EDN Sovintel LLC            Russia                        50%             International Long
                                                                           Distance and Local
                                                                           Access




        HER is in the process of applying for a license in Austria.


 Vostok Mobile, B.V.         Russia                       50% to 100%*                Basic Cellular

 Prim Telephone              Russia                      50%                          Basic Cellular

 Golden Telecom              Ukraine                     56.:75%                      Basic Cellular and
                                                                                      overlay services

 TeleCommunications of       Russia                      95 %                         Local Access
 Moscow

 TeleRoss LLC                Russia                       100%                        Domestic Long Distance
 Sovam Teleport, LLC         Russia                       100%                        Data

 Sovam Teleport Kiev         Ukraine                     49%                          Data
 Division

 C—Datacom International,    India                        100%                        International Private Line
 ing:                                                                                 Communications

 GTS Business Services       United Kingdom               100%                        Domestic Value Added
 (UK) Ltd.                                                                            Services and
                                                                                      International Voice

 NetSource Europe asa        Norway                       100%                        Value Added Services

 NetSource Norge AS          Norway                       100%                        Value Added Services

 NetSource Sverige AS        Sweden                       100%                        Value Added Services

 NetSource Danmark AS        Denmark                      100%                        Value Added Services

 NetSource Telecom           Netherlands                  100%                        Value Added Services
 Benelux BV

 WestCom GmbH                Germany                      100%                        Value Added Services




¥       Vostok Mobile, B.V. is a wholly owned subsidiary of GTS. Vostok Mobile, B.V., owns between 50% and
100% of a series of cellular ventures in various regions of Russia. The telecommunications companies in which
Vostok mobile, B.V. has interest are Penza Mobile (60%); Astrakhan Mobile (50%); Votec Mobile (50%); Chuvashia
Mobile (70%); Lipetsk Mobile (70%); Arkhangelsk Mobile Networks (50%); Saratov Mobile (50%)Volgograd Mobile
(50%); Murmanskaya Mobilnaya Set (50%); Parma Mobile (50%); Unicel Bryansk (50%); Unicel Kostroma (50%);
Unicel Orel (50%); Altaisviaz (50%); Unicel Yaroslavi (50%); BashUnicel (50%); Mar Mobile (50%); Novgorod
Telecommunications (100%) and Unicel Ivanovo (50%).

3        TeleRoss LLC holds the network license and co—manages fourteen joint ventures, thirteen of which are 50%
beneficially—owned by GTS, and one, TeleRoss—Irkutsk, which is 100% beneficially—owned by GTS. These fourteen
joint ventures are TeleRoss—Irkutsk, TeleRoss—Ufa, TeleRoss—Novosibirsk, TeleRoss—Vladivostock, TeleRoss—Tiumen,
TeleRoss—Khabarovsk, TeleRoss—Volgograd, TeleRoss—Ekaterinburg, TeleRoss—Nizhni Novogorod, TeleRoss—
Arkhangelsk, TeleRoss—Veronezh, TeleRoss—Samara, TeleRoss—Komi and TeleRoss—Kubanelectrosviza.


 International                Ireland                       100%                         Value Added Services
 Telecommunications Ltd.

 NetSource Phonesystem        Sweden                       51%                           Value Added Services
 AB

 Atlantic Telecom Venran      Netherlands                   100%                         Value Added Services
 BV


Note: Dattel a.s. is an unregulatedprivate local network in the Czech Republic which is interconnected to the public
switched telephony system in the Czech Republic. The approximate effective ownership by GTS is 51.03%.


                        EXHIBIT B

Foreign Carrier Affiliations for Esprit Telecom U.K. Limited


Esprit has the following foreign carrier affiliations, as defined by the FCC‘s rules:

                                                             TServicesProvided
                                                             ks    t o mabee n _ nso% ks
                                         United Kingdom   |International and National Long
                                                          Distance Services
 Esprit Telecom UK Limited               Ireland          Value Added Services
 Esprit Telecom Deutschland GmbH         Germany          International and National Long
                                                          Distance Services
 PLUSNET GmbH Co. KG                     Germany          International and National Long
                                                          Distance Services
 Esprit Telecom France SA                France           International and National Long
                                                          Distance Services
 Esprit Telecom Benelux BV               Belgium          International and National Long
                                                          Distance Services
 Esprit Telecom Benelux BV              Netherlands       International and National Long
                                                          Distance Services
 Esprit Telecom Espafia SA               Spain            International and National Long
                                                          Distance Services in Gerona, Madrid
                                                          and Barcelona
 Esprit Telecom Italia SrL               Italy            Value Added Services




268221.1



Document Created: 2019-04-23 12:04:04
Document Modified: 2019-04-23 12:04:04

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