Attachment 20170105120103-037.p

20170105120103-037.p

SUPPLEMENT

Supplement

2000-03-14

This document pretains to ITC-T/C-20000314-00208 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2000031400208_1391127

      Categories of
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O   LIMILTED/GLOBAL RIiSALE

O   LIMITED/GLOBAL FACILI!             SE]RVICE

@   LIMITED/GLOBAL FACILI!      —BASED/RESALH SI

©   INDIVIDUAL FACIL:[TIES—~BACED SERVICI]S

O   INTERCONNECTED PIRIVAT!HE LINE RESALE SETE

O   INMARSAT      MOBILE SATEILLITE SERVICE

O   INTERNATIONAL SPECIAL PROJECT

C   SWITCHED RESALE SERVICE

O   TRANSFER OF CONTROL

O   ASSIGNMENT OF LICENSE

8   PRO FORMA TRANSFER/ASSIGNMENT

O   SPECIAL TEMPORARY AUTHORITY

O   —SUBMARINE CABLE LANDING LICENSE


Description of Application:



    Q —BP—t — Pred=Tel Lut— bw Ephsst Cywh trod 3 C Errt—


READ INSTRUCTIONS CAREFULLY                                                                                                     ‘u                                               APPROVED BY OMB 3060—0589
       BEFORE PROCEEDING                                                              FEDERAL COMMUNICATIONS COMMISSIO®                                          Me
                                                                                                                  3                                               SPECIAL USE
                                                                                        REMITTAN(E ADVICE
                                                                                               4 t           1        ‘lA       7    fl                            FCC USE ONLY
(1)LockBox« 358115                                                                                 |ageno. __~             24200
                                                                            |                 SECTION A — PAYER INFORMATION                             |
 (2) PAYE_R NAME (if paying by credit card, enter name exactly as it appears on your card)                                                                  (3) TOTAL AMOUNT PAID (dollars and cents)
 Morrison & Foerster LLP                                                                                                                                    s                                           780.00
 (4) STREET ADDRESS LINE NO. 1
 2000 Pennsylvania Avenue, N.W., Suite 5500
 (5) STREET ADDRESS LINE NO. 2


 (6) CITY                                                                                                    (7) STATE                                   (8) ZIP CODE
 Washington                                                                                                  DC                                             20006
 (9) DAYTIME TELEPHONE NUMBER (Include area code)                                                           (10) COUNTRY CODE (if not in U.S.A.)
 (202) 887—1500
                                    IF PAYER NAME AND THE APPLICANT NAME ARE DIFFERENT, COMPLETE SECTION B
                                         IF MORE THAN ONE APPLICANT, USE CONTINUATION SHEETS (FORM 159—C)
                                                                            |            SECTION B — APPLICANT INFORMATION                           |
(11) APPLICANT NAME (if paying by credit card, enter name exactly as it appears on your card)
 Q—East U.S. Holdings, Inc
(12) STREET ADDRESS LINE NO. 1
 22401 Juniper Flats Road
(13) STREET ADDRESS LINE NO. 2


(14) CITY                                                                                                   (15) STATE                                   (16) ZIP CODE
 Nuevo                                                                                                       CA                                             92567
(17) DAYTIME TELEPHONE NUMBER (Include area code)                                                           (18) COUNTRY CODE (if not in U.S.A.)
 (909) 928—3446
       COMPLETE SECTION C FOR EACH SERVICE, IF MORE BOXES ARE NEEDED, USE CONTINUATION SHEETS (FORM 159—C)
                                                                            |             SECTION C — PAYMENT INFORMATION                           |
(19A) FCC CALL SIGN/OTHER ID                     (20A) PAYMENT TYPE CODE (PTC)                         (21A) QUANTITY      (22A) FEE DUE FOR (PTC) IN BLOCK 20A FCC USE ONLY
                                                 C            |TU               J[T       C                             1 |s                                    780.00
(23A) FCC CODE 1                                                                                                  (24A) FCC CODE 2


(19B) FCC CALL SIGN/OTHER ID                     (20B) PAYMENT TYPE CODE (PTC)                         (218) QUANTITY      (228) FEE DUE FOR (PTC) IN BLOCK 20B FCC USE ONLY
                                                              |                 |         |                                s
(23B) FCC CODE 1                                                                                                 (24B) FCC CODE 2


(19C) FCC CALL SIGN/OTHER ID                     (20C) PAYMENT TYPE CODE (PTC)                         (21C)QUANTITY       (22C) FEE DUE FOR (PTC) IN BLOCK 20C FCC USE ONLY
                                                              |                 |         |                                s
(23C) FCC CODE 1                                                                                                 (24C) FCC CODE 2


(19D) FCC CALL SIGN/OTHER ID                     (20D) PAYMENT TYPE CODE (PTC)                         (21D)QUANTITY       (22D) FEE DUE FOR (PTC) IN BLOCK 200 FCC USE ONLY
                                                              |                 |         |                                s
(23D) FCC CODE 1                                                                                                 (24D) FCC CODE 2


                                                       SECTION D — TAXPAYER INFORMATION (REQUIRED)
(25)                                                                                                             (26) COMPLETE THIS BLOCK ONLY IF APPLICANT NAME IN B—11 IS DIFFERENT FROM PAYER NAME IN A—2)

PAYER TIN                                0|o |4 |o |6 |9 |7 |2 1 0                                               APPLICANT TIN                                    10|3 |3 |o |[s |s |s 1 |o |s
                                                                                                  SECTION E — CERTIFICATION                         |
(27) CERTIFICATION STATEMENT
1,                                                                                        , Certify under penalty of perjury that the foregoing and supporting information
                                  (PRINT NAME)

are true and correct to the best of my knowledge, infomation and belief.                                                        SIGNATURE
                                                                                    SECTION F — CREDIT CARD PAYMENT INFORMATION                                       I
(28)                             MASTERCARDNISA ACCOUNT NUMBER:                                                                                                   EXPIRATION DATE:

         MASTERCARD

                                                                                                                                                                      MONTH      YEAR

                    I hereby authorize the FCC to charge my VISA or MASTERCARD                     AUTHORIZED SIGNATURE                                                   DATE
         VISA
                    for the service(s)/authorization(s) herein described.                     >

                                                                     SEE PUBLIC BURDEN ESTIMATE ON REVERSE                                                      FCC FORM 159            JULY 1997 (REVISED)


                         HOLD AT AN ANGLE TO VERIFY BACKGROUND WORDS SAFE® ON FRONT AND A WATERMARK ON BACK

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                                                                                                    AUTHORIZED SIGNATURE


                        MorRIsON & FoOoERSTER i1
SAN FRANCISCO                        ATTORNEYS AT LAW                                NEW YORK
LOS ANGELES                                                                          LONDON
SACRAMENTO                     2000 PENNSYLVANIA AVENUE, NW                          BRUSSELS
ORANGE COUNTY                    WASHINGTON, D.C. 20006—1888                         BEIJING
PALO ALTO                         TELEPHONE (202) 887—1500                          HONG KONG
WALNUT CREEK                     TELEFACSIMILE (202) 887—0763                       SINGAPORE
DENVER                                                                              TOKYO

                                   March 14, 2000


                                                                          Writer‘s Direct Dial Number

                                                                            (202) 887—1510
                                                                             ctritt@mofo.com




Magalie Roman Salas, Secretary
Federal Communications Commission
445 12th Street, S.W., TW—A325
Washington, D.C. 20554

    Re: Application for Commussion Consent to Transfer of Control of
        Domestic Section 214 Authorization of PacAmTel LLC from Mr.
        Egbert Lynch Haywood to Q—East U.S.: Holdings, Inc:

Dear Ms. Salas:

        Enclosed for filing on behalf of Q—East U.S. Holdings, Inc. ("Q—East") are an
original and one copy of an application seeking Commussion consent to the transfer of
control of the domestic Section 214 authorization of PacAmTel LLC from Mr. Egbert
Lynch Haywood to Q—East. Also enclosed is a check payable to "FCC" in the amount
of $780.00 to cover the prescribed filing fee.

       Please stamp the enclosed duplicate copy as received and return it for our
records in the attached envelope.

                                                Respectfully submitted,


                                                 /h.
                                                Cheryl A. Tritt
                                                Joan E. Neal
                                                Counsel for Q—East U.S. Holdings, Inc.

Enclosures




de—192125


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


In the Matter of




                                             NU ALS SX Ruuh Ni iat ul Ruul Rot nst ul
Q—East U.S. Holdings, Inc.,
Mr. Egbert Haywood Lynch, and
PacAmTel, LLC

Application for Authority Under                                                         File No. ITC—_
Section 214 of the Cornmunications Act
of 1934, as Amended, to Transfer Control
of PacAmTel LLC from Mr. Egbert Lynch
Haywood to Q—East U.S. Holdings, Inc.


                     APPLICATION FOR TRANSFER OF CONTROL

        Q—East U.S. Holdings, Inc. ("Q—East"), PacAmTel, LLC ("PacAmTel"), and Mr. Egbert

Lynch Haywood ("Haywood") (together, the "Applicants"), hereby request authority to transfer

control of PacAmTel from Haywood to Q—East, pursuant to Section 214 of the Communications

Act of 1934, as amended, 47 U.S.C. § 214, and Section 63.18 of the rules of the Federal

Communications Commission ("FCC" or "Commission"), 47 C.F.R. §63.18. PacAmTel holds a

global Section 214 authorization to provide facilities—based and resale telecommunications

services to all permissible international points. The Applicants seek streammlined processing of

this application under Section 63.12 of the Commission‘s rules.

        On December 30, 1999, Q.east Holding Ltd. ("QH"), the ultimate corporate parent of Q—

East, PacAmTel, and Haywood, entered into a letter agreement, whereby Q—East will acquire all

of Haywood‘s 60 percent membership interest in PacAmTel ("Letter Agreement"), subject to




sf—8 12234


Con mission approval.! ommission approval of the proposed transfer of control will enable

P:c.\mTel to continue to provide international communications services without interruption to

its c istomers. In additio1;, the aroposed transfer of control will permit the infus:on of capit al to

as si: t in financing PacAniTel‘s operations and thus will benefit the public interest. Further more,

th: proposed transfer of contro. will have no adverse competitive effect because neither Q— Sast

acr : )H currently compet :s with PacAmiTel in the provision of international conmunicatio is

se v ces in the United Stztes.

         In support of this application, the Applicants submit the following inforraatior. purs 1ant

to S:ction 63.18 of the C »mmission‘s rules:

         (a)      Name, adc ress ind telephone number of Applicants:

                  Q—East U. s. Hodings, Inc.
                  22401 Juniper Flats Rd.
                  Nuevo, C.\ 925 37
                  (909) 928. 3446

                  Mr. Egber : L. Haywood
                  3100 Tow »r Blvd., Suite 514
                  Durham, 1 IC 27707
                  (919) 493— 8909

                  PacAmTe , LLC
                  22401 Juniper Flats Rd.
                  Nuevo, C.\ 92567
                  (909) 928 3446

         (b)      Q—East is a corporation organized under the laws of the State of Delaware.

PacAmTel is a limited liability company organized under the laws of the State of North Carolina.




 ! Q—East intends to acquire the remaining non—controlling 40 percent membership interest in PacAmTel in the near
future. Assuming grant of the present application, the planned transfer of such membership interest to Q—East is p»p
forma and will not require prior Commission approval.



sf—812234                                                 2


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

             For Q—East:

             Caspar Chou
             Chief Executive Officer
             Q—East U.S. Holdings, Inc.
             22401 Juniper Flats Rd.
             Nuevo, CA 92567
             (909) 928—3446

             with a copy to:

             Cheryl A. Tritt
             Morrison & Foerster LLP
             2000 Pennsylvania Avenue, N.W., Suite 5500
             Washington, D.C. 20006
             (202) 887—1500 (Tel)
             (202) 887—0763 (Fax)

             _For Haywood:

             Mr. Egbert L. Haywood
             3100 Tower Blvd., Suite 514
             Durham, NC 27707

             with a copy to:

             Andrew L. Howell
             Nelson Mullins Riley & Scarborough, L.L.P.
             First Union Plaza, Suite 1400
             999 Peachtree St.
             Atlanta, GA 30309
             (404) §$17—6050 (Fax)

             For PacAmTel:

             Damon Rutherford
             Chief Financial Officer
             PacAmTel, LLC
             22401 Juniper Flats Rd.
             Nuevo, CA 92567
             (909) 928—3446 (Tel)




sf—812234


         (d)       Q—East does not hold any Sec              214 authorization. PacAmTel holds a global

Section 214 authorization to provide facilitie               sed and resale services toall permissible

international points, granted by FCC Public 1                ‘e, 12 FCC Red 16423 (Oct. 9, 1997)

(File No. ITC—97—491).2

         (e)(3) Applicants hereby request authority to transfer control of PacAmTel from

Haywood to Q—East pursuant to the terms and conditions of Section 63.18(e)(3).

         (£)      No response is necessary.

         (g)      Not applicable.

        (h)     Q—East is a wholly owned subsidiary of QH, a Bermuda corporation whose
principal business is telecommunications and which is located at Cedar House, 41 Cedar
Avenue, Hamilton HM12 Bermuda. The following are the names, addresses, citizenship,
principal businesses, and equity holdings of the shareholders who directly control ten percent or
more of QH:

Name & Address                       Citizenship      Business                  Equity (%)

Caspar Chou                          U:S.             Telecommunications        17.0
1950 Samara Dr.
Rowland Heights, CA 91748

CoreComm Ltd.                    —   Bermuda          Telecommunications        31.2
110 East 59th St., 26th FI.
New York, NY 10022

Candor CompanyLtd.                   British Virgin   Investment                21.7
P.O. Box 659                         Islands
Offshore Incorporations Center
Road Town, Tortola B.V.I

Hyde Park Group Ltd.                 British Virgin   Investment                10.4
P.O.: Box 957                        Islands
Offshore Incorporations Center
Road Town, Tortola B.V.I


         The shareholders who indirectly own or control ten percent or more of QH are as follows:

CoreComm Ltd. is a publicly traded Bermuda corporation whose stock is publicly traded on




2 Applicants also are filing contemporaneous applications seeking Commission consent to the transfer of control of
certain satellite earth station and point—to—point microwave authorizations held by PacAmTel.


sf—812234                                                4


NASDAQ and whose ownership has been disclosed to the Commission in other filings," and

whose indirect ownership of wireless licensees also has been previously approved by the

Commission.t Candor Company Ltd. is wholly owned by Michael Pei, a Canadian citizen,

whose address is 33/F New World Tower, 16—18 Queen‘s Road, Central, Hong Kong. The

following individuals each own 50 percent of the equity of Hyde Park Group Ltd.: (1) Charles

Chan Chi Wong, a Hong Kong citizen, whose address is 29 South Bay Rd., 4F, Hong Kong; and

(2) Ming (Nelson) Yu Tang, a Hong Kong citizen, whose address is 17/F 7—9 MacDonnell Rd.,

MidLevel, Hong Kong. There are no other shareholders who directly or indirectly own or

control. 10 percent or more of the equity of Q—East or QH.

        George Blumenthal, a director of QH, also serves as Chairman of NTL Inc., a Delaware

corporation with cable and telecommunications operations in Europe. Rich Lubasch, a director

of QH, alsoserves as an officer of NTLInc. Q—East has no other interlocking directorates.

        (i)      By the attached certification, Q—East certifies that it is affiliated with foreign

carriers in Hong Kong and Taiwan, as identified in Paragraph (1) of the attached certification.

        (J)      By the attached certification, Q—East certifies that it seeks to provide international

telecommunications services to destination countries in which Q—East is affiliated with an entity

that controls a foreign carrier in those countries (i.e, Hong Kong and Taiwan), as specified in

Paragraph (2) of the attached certification.

        (k)      Hong Kong is a member of the World Trade Organizatiofi ("WTO").5 In

addition, each of the affiliated foreign carriers identified in Paragraphs (1) and (2) of Q—East‘s



* See, e.g., FCC Form 602 of PacAmTel (filed concurrently herewith) (disclosing ownership information regarding
CoreComm, as proposed holder of a disclosable interest in PacAmTel).
4 See FCC Public Notice, DA 98—1366, 13 FCC Red 17469 (July 9, 1998) (announcing grant of CoreComm‘s
request, FCC File No. ISP—98—004, for determination that its indirect ownership of U.S. wireless
telecommunications licenses is in the public interest pursuant to Section 310(b)(4)).
5 See Western Wireless Corp. and Western PCS Corp.s 13 FCC Red 64, [ 10 (Int‘l Bur. 1997).


sf—812234                                               $


attached certification is a new entrant with less than a 50 percent market share in its respective

country ofoperation.

        (1)     On all routes where Q—East is affiliated with a foreign carrier, the affiliated

foreign carrier satisfies the requirements of Section 63.10(a)(3) of the Act. Specifically, each

affiliated foreign carrier holds significantly less than a 50 percent market share in the

international transport, inter—city, and local access markets in its respective country of operation.

Moreover, none of these affiliated carriers has the ability to discriminate against unaffiliated U.S.

international carriers through the control of bottleneck services or facilities in any destination

country. Accordingly, Q—East‘s affiliated foreign carriers lack sufficient market power on the

foreign end of their respective routes to affect competition adversely in the U.S. market.

        (m)     Q—East qualifies for a presumption of nondominance because each of the affiliated

foreign carriers listed in Paragraphs (1) and (2) of the attachedcertification is a new market

entrant without market power. As stated in Subsection (1) above, each such affiliated foreign

carrier holds significantly less than a 50 percent market share in the international transport, inter—

city, and local access markets in its respective country of operation. Moreover, none of these

affiliated carriers has the ability to discriminate against unaffiliated U.S. international carriers

through the control of bottleneck services or facilities in any destination country. Accordingly,

Q—East‘s affiliated foreign carriers lack sufficient market power on the foreign end of their .

respective routes to affect competition adversely in the U.S. market, and therefore Q—East should

presumptively be classified as a nondominant carrier on all international routes.

        (n)     By the attached certification, Q—East certifies that it has 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 sufficient market power on the foreign end




sf—812234                                          6


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AAL.    W id         miicf¥      Meru jAL IENTIR                                             y5. is $     i


       of the route to affect competition adversely in the U.S. market and wil| not e iter into such

       agreements in the future.

               (0)      By the attached certification, Q—East certifies that no pirty to his a iplication i:

       subject to a denial of federal benefits pursuant to Section 5301 of the Anti—C ug A »use Act of

       1988.

               (p)      The Applicants seek streamlined processing of this app icatic i und ir 47 C.F.R

       § 63.12 because Q—East qualifies for a presumption of nondominance under 7 C.] .R. §

       63.10(a)(3) for all international routes.

                                                       CONCLUSION

               Grant of the proposed transfer of cont:ol will enhance PacAmTel‘s a ility o provide

       high—quality, competitive international communications services and thus wi 1 sem : the public

       interest, convenience, and necessity.


       Date:                                           Respectfully submitted,



                                                       By:      S % Si
                                                               Caspar Ch
                                                               Chief Executive Officer
                                                               Q—East U.S. Holdings, Inc
                                                               22401 Juniper Flats Rd.
                                                               Nuevo, CA 92567
                                                               (909) 928—3446




       sf—812234                                           7


             4 uin Egbert L. Haywood
                   3100 Tower Boulevard
                   Suite 514
                   Durham, NC 27707
                   (919) 493—8909


                                          A
             By:        é?g   §Z~A«;y4( 9
                   Egbert L. Haywood * *~
                   Pres ident"~ &
                   PacAmTel, LLC
                   22401 Juniper Flats Road
                   Nuevo, CA 92567
                       (909) 928—3446




                   $
sf—8 12234


                                             CERTIFICATION

         I, Caspar Chou, Chief Executive Officer of Q—East U.S. Holdings, Inc. ("Q—East"),

hereby certify that:


                Q—East is affiliated with the following foreign carriers: (a) Q—east.comi (11K)
                Ltd., which holds a Public Non—exclusive Telecornmmuncaiions Set vices
                (PNETS) license in Hong Kong to provicle, among o0 ther tt ings, intert ationiil
                simple resale service; and (b) Di Lian, which holeis a Tipe Two licsnse i1
                Taiwan to provide, among other thing:, fax and data seivices.

                Q—East seeks to provide international telecommurics tions services to lestination
                countries in which Q—East is affiliated with an entity th:t contro‘s a foreiin
                carrier in those countries, Specifically, Q—East is aff liated with (i1) (QQ—east com
                (HK.,) Ltd., which holds a Public Non—cxclusive Tale :or im unicatio: is Services
                (PNETS) license n Hong Kong to provide, among o her tt ings, interr ati onl
                simple resale service; and (b) Di Lian, which holcs a Tipe Two lic:nse i1
                Taiwan to provide, among other things, fax and diata services.

                Q—East has not agreed to accept special concessions, dirsctly or indire :stly, f:oni
                any foreign carrier with respect to any U.S. intenational route vhere ‘he foreigin
                cartier possesses sufficient market power on the fiareign end of the route to :iffuct
                competition adversely in the U.S. market and will not ente: into such agr:emer ts
                in the future.

                No party to this application is subject to a denial of Federal benefit: pursuant to
                Section 5301 of the Anti—Drug Abuse Actof 1988, 21 L.S.C. § §5:(a}, a;
                amended.

                                                          C
                                                          ~         )ue ==——
                                                 Caspar Chou
                                                 Chief Executive Officer


        Date:




sf—8 12234



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