Attachment 20170110102240-850.p

20170110102240-850.p

SUPPLEMENT

Supplement

2000-04-28

This document pretains to ITC-T/C-20000428-00270 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2000042800270_1392464



              _ SWIDLER BERLIN SHEREFF FRIEDMAN, uP                                              C@ P
              .                       3000 K STREET N‘V, SUITE 300                                                Y
                                     WASHINGT IN, DC 20007—5116
                                          TELEPHONE 202 424—7500                                NEw York Orfict
                                           FACsSIV ILE (©02) 424—7645                          919 THIRD AVENUE
                                                                                             NEW YORK, NY 10022

                                                                           UCO/MEILON:                8 asin
                                            April 27, 2000                       ELLON             APR 2 8 2089


VLA OVERNIGHT DELIVERY

Federal Communications Commuission
International Bureau, Telecommunications Divisio11
P.O. Box 358115
Pittsburgh, PA 15251—5115
Attn:    Rebecca Arbogast, Division Chief

        Re:       Joint Application for Authority Purst an to Section 14 of the Communicati ms Act
                  of 1934, as Amended, To Trar sfer C onrol of Ccast to Ceast Telecon munications,
                  Inc. an Authorized International Car 1e1, to CI@:ity U s¥A LLC

Dear Sir or Madam:

        On behalf of Cl@rity USA, LLC and Coas : to Coast Tele:sor          imunications, [nc.(tc      gether,
"Applicants"), enclosed for filing are an original aid iix (6) ccpies c     the above—reierenc         :d joint
application. Applicarnts respectfully request expedi ed treatment 0: th     :s j aint applica 101 to   permit
themto consummate the transfer of control describe 1 i11 this applicitic    n zs soon as pcssijle       but no
later than April 30, 2000.

        As required by the Commission‘s Rules, a (che :k in the an ou it of $780.00 is e rcl »sed to
cover the filing fee. Please date—stamp the encle se e::tra copy of this application and reti m it in
the self—addressed, postage paid envelope provided. Should you have & ny questions conce »rn ng this
application, please do not hesitate to contact the unler signed.

                                                 Respe #fiy subrm itted,



                                                 Harry Mgone
                                                                        ahoue
                                                 Counsel for Cl@rity USA, LLC



Enclosures

ge:    J. Breck Blalock (FCC)
       Lisa Kaufman


                                              Befor : the
                         FEJ)ERAL CO          JNIC\ATIO NS COMMISSION
                                   W          igton, D.C. 2055«




                                                        )
 I1 the Matter of                                       )
                                                        )
Cl@rity US,., LLC                                       )
        and                                             )
C oast to Cog st Teecom nunications                     )
                                                        )       File No. _
 A pplic: tion for Auhority purst ant to      on        )
 2 .4 of ‘he Ce mmunicatic ns Ac : of 19                )
 a ame1 ded, o Traisfer Contrcl of Se         214       )
 A uthor. ty Gr. inted ?ursu; nt to                     )
 F 2C Fi:e No. ITC—25—30"                               )
 m                                                   _J

                                              PLIC ATICN


         CI@r ty USA, LL C ("C l@rity         ‘Applisant‘") by it ; undersigned counsel, and pursuant

 to Sectin 21« of the Com munic ations        £1934, as ar iende, 47 U.S.C. §214, and Section 63.18

 o: the C omm: ssion‘s Rules, 47 C.F.R.       18, he eby re quest : approval for a transfer of control of

 the inte natio ial authoriz ition 1 eld by   t to C »ast T slecor amunications, Inc. ("Coast"), a U.S.

 common carmer, from Ccast to Cl@riy. 1~either Coasti nor CUI@rity have any foreign affiliations

within the meaning of Section 63.09(e) of the Commission‘s Rule, 47 C.F.R. § 63.09(e). As

 described below, Cl@rity is acquiring ultimate control of Coast through a transaction in which Coast

will be merged into a wholly—owned subsidiary of Cl@rity.

         Upon consummation of the transaction, services to Coast‘s existing customers will continue

under existing service arrangements, pursuant to its authority granted by the Commission. The

proposed transaction will therefore be virtually transparent to Coast‘s current customers.


           Appli sant r :spect ‘ully reques :s expeditedtreatt 1ent c f this Appli sation in or er to permit

 them to cons imma e the aropesed tr nsfer of cointrol t ansac ion a;. soon as po isible but r o late®

 than April 3C 200( . In s ippor: of th: s requ sst, Applica it not :s that this / pplic tion i ; eligi »le fo

 streamlified p ‘oces: ng pi rsuani to Se :tion (3.12 of the Comur ssion‘s Rul:s, 47 ZC.F.R §63.12, fo:

 the reasons s ated t slow.

 T.        DESCRIP‘ TON OF T HE T RAN; ACTION

       |   On Aril 12 200C CI@:ity an 1 Coa t entered an agree aent sad plan of m erger "the l ferge:

 Agreement"). Undir the: Aerge: Agre smen, Cl@rity w 11 acqire ul imate contr: 1 of C oast t irougl

 a transaction in wI ich C past vill be meryed in:o a v holly owne 1 subsidiary of C @rity ("the

Merger"). Tl e nev oper ting comps 1y wi l be named Coast to Ce ast Telecom muni: ation ;, Inc.

_ Upon consur maticn of he M »ger, services to Coast‘s exi; ting custon .ers w il1 co: tinue unde:;

 existing service arr. ngem >nts, 1 ursug it to t ie authority grant: d to Coast ty the Zomtr ussion. The

 Merger will t erefo e be ~ irtual) y tran sparer t to Coast‘s surrer : customers. An c ‘ganis ation:l char

 of Applicant: ‘ corp »rate tructire fol owin ; the Merge is att iched hereto: as E:; hibit A.

 II.       PUBI] IC I [TER EST ON{ IDEK] ATIONS

           Grant of thi App. cationi is in the pi blic interest, since the p opose d tran :actio i will snable

 Cl@rity and Coast to enuance the range of telecommunications services and choices available to

 their customers. Moreover, the synergies resulting from the transaction will promote operational and

 administrative efficiencies within each company. These enhancements and efficiencies will enable

 the companies to compete more effectively in the telecommunications market to the ultimate benefit

 of consumers. Finally, the proposed transaction will be consummated in a seamless manner, will


be transparent to consumers and will not in any way inconvenience or cause harm to any of Coast‘s

customers.


III.   INFORMATION REQUIRED BY SECTION 63.18

       As required by Section 63.18(e)(3) of the Commission‘s Rules, Applicant submits the follow—

ing information:

       (a)    Names, ac.dresses and phone numbers:

               Transferor:   Coast to Coast Telecommunications, Inc.
                             5850 Dixie Highway
                             Clarkston, MI 48346
                             Tel:     248—623—6700

              Transferee:    CIlI@rity USA, LLC
                             4061 Powder Mill Road, Su: te 700
                             Calverton, MD 20705
                             Tel:     301—595—4455

       (b)    Transferor:    Coast is a corporation org:inized urder the laws of the State 0
                             Michigan.

              Transferee:    Cl@rity is a limited liability company arganized under the laws of the
                             State of Delaware.

       (c)    Correspondence concerning this applicatior. should bhe sent to:

                      Harry Malone
                      Swidler Berlin Shereff Friedman, L LP
                      3000 K Street, N.W., Suite 300
                      Washington, D.C. 20007
                      Tel:    (202) 424—7500
                      Fax:   (202) 424—6745
                      Counsel for Cl@rity


         with copies to:

                   Lisa Kaufman
                   C1@rity Communications, Inc.
                   200 © . Wacker D ive, 31" Fic or
                   Chic: go, IL 60616
                   Tel:     (312) 4400340
                   Fax:    (312) 674 4760
         and to:

                   Btuc: Yuille
                   Couas to Coast Télecommuni—ations, Inc.
                   5850 Dixie High vay
                   Clark ston, MI 46345
                   Tel:    248—623—t70)
                   Fax: 248—623—1463

(d}      Frevious Secion 214 aut 101izations:

         Transfero:        Coast hol is ruthoriza :io:1 under Section 214 of the Act to provide
                           internatio) ial telecomr 1ur ications servic ;s pursuant to FCC File No.
                           ITC—95—309.

         Transfere::       Cl@rity daes not holé Section 214 auth>riz:ation.

(e)(3)   By this A spl ‘cation, Apt licant seeks authority to transfer control of Coast, a U.S.
         carrier ho diig internaticnal Section 214 authority, to Cl@(Qrity, a U.S. carrier that
         does not Folo Section 21 | aithority.

(£)      Not applicab‘e. This application for transfer of contrel is eligible for streamlined
         processing u: ider Section 63.12 of th: Commission‘s Rules, 47 C.F.R. § 63.12.

(g)      Not applicable.

(h)      The following entities hold a ten percent (10%) or greater direct or indirect ownership
         or management interest in the Applicant/Transferee CI@rity USA, LLC:

         Name:                    C1@rity Communications, Inc.
         Address:                 4061 Powder Mill Road
                                  Suite 700
                                  Calverton, MD 20705
         Percentage Held:         100%
         Citizenship:             USA


      Principal Business:      Communications

      The following entities hold a ten percent (10%) or greater ownership or management
      interest in Cl@rity Communications, Inc.

      Name:                   Cary J     hi
      Address:                8158 1    iethyst D1      e
                              MclLe     , VA 221
      Percentage Held:        34% (_    .17% afte       on: umm{ tion of tiie Merger)
      Citizenship:            Canad
      Principal Business:      Comn         iucations

      Name:                   Palom     Ventures        L.J .
      Address:                100 W     shire Boul      arc, Suite: 400
                              Santa onica, CA           204 )1
      Percentage Held:        21% (_.88% afte           ons umm: tion of tie merger)
      Citizenship:            USA
      Principal Business:      Invest nt

      There are no additional entitu        holding a   1!% or grei ter direc or indirect beneficial
      interest in Applicant/Transfe     :

      Applicant has no interlockin:     lirectorate     witl. a for :sign carr er.

(i)   Applicant certifies that it is    t a forei;       cairier v ithin the meaning of Section
      63.09(d) of the Commussion‘       Rules, 47        F.F. § 62.09(d), nor is it affiliated with
      a foreign carrier within the m     aing of Se     (on 53.09(e) of the Commission‘s Rules,
      47 C.F.R. § 63.09(e).

G)    Applicant certifies that it doe   iot seek to     rov de internationa l telecommunications
      services to any destination       untry for       hici any of the provisions of Section
      63.18(j) are true.

(k)   Not applicable.

(1)   Not applicable.

      Not applicable.


(n)   As required by Section 63.18 (n) of the Commission‘s Rules, 47 C.F.R. § 63.18(n),
      Applicant certifies that it 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 on
      an U.S. international route where the foreign carrier possesses sufficient market
      power on the foreign end of the route to affect competition adversely in tl.e 1J.S.
      market.

(0)   Applicant certifies, pursuant to Section 1.2002 of the Commission‘s Riles
      (implementing the Anti—Drug Abuse Act of 1988, 21 U.S.C. § 3301), that n > party
      to this application is subject to denial of Federal benefits pursuant to Sectio 1 5301
      of the Anti—Drug Abuse Act of 1988.

(p)   Applicant qualifies for streamlined processing pursuant to Section 63.12 of the
      Commission‘s Rules because Sections 63.12(c)(1)—(3) do not apply to the Ap»lic ant.


                                       CONCLUSION

       For the reasons stated above, Applicant respectfully submits that the public interest,

convenience and necessity would be furtkered by a grant of this application for consent to the

transfer of control of Coast to Coast Telecommunications, Inc. to ClI@rity USA, LLC.


                                            Respectfully submitted,

                                            CL@RITY U§A, LLC




                                                   Harry MayJone
                                                   Swidler Berlin Shereff Friedman, LLP
                                                   3000 K Street, N.W., Suite 300
                                                   Washington, D.C. 20007
                                                   Phone:     (202) 424—7705
                                                   Facsimile: (202) 424—7645

                                                   Counsel for Cl@rity USA, LLC

                                           And on Behalf of

                                                   Coast to Coast Telecommunications, Inc.



Dated: April 27, 2000


                                                                                                       PAGE    02
                                                           ARS ACC.&TAX INE; m m                      pacrEr    2 ;3
             @4:18     9192352268
ai/19/1994



                                      CERMFICATION OF APPLICANT


                On behalf of Cl@rity USA, LLC, 1 hereby certify that the statements in the foregoing

         Application for Authority to Transfer Control of an Authorized Interrational Carmer are true,

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



                                                     Cl@rity USA, LLC


                                                     By:

                                                     Nanie: Cary   Joshi

                                                     Title:   President and Chief Executive Officer

                                                     Date: April 27, 2000


                    EXHIBIT A




               Organizational Chart of
Applicants‘ Proposed Post—Merger Corporate Structure


                                               PROPOSED
                                   POST CLOSING CORPORATE STRUCTURE
                                                                  [As of 4728/00]


                                                                                                     w          o    s
                                                   _                                                   Saul Afuzis
                                             . Founders! "         _PalomarF                            e            2. ]____
                                             Managément            Jnstitutional                                >
                                                                                                      "Bruce Yyitle .




                                                                                           Fiber Network Loan
                                                                     CI@rity. _:         cxip n e aorc C 1
                                                             Communications, Inc.,                          1
                                                             a Delaware corporation                         1
                                                                                                            1
                                                                                           Fiber Capacity   I
                                                                                             Agreement      1
                                                                                                            I
                                                                                                            1
                                                                                                            1
                                                                                                            I

                          100%                                            100%                              1                 25%     75%
                                                                                                            1
                                                                                                            I
                           5                                         Cl@rity                                1
                                                                                                            1
 Vendor               Cl@rity                                     USA, LLC, a                                   —»       FiberCo Networks, Inc.,
            ~    Integrated, Inc., a
Financing       Delaware corporation                            Delaware limited                                         a Delaware corporation
                                                                liability company
                                                                                                                     Ftsuntimnmtrosrtsrmmtmmamud
                                                                          100%


                                                                  Coast to Coast
                                                           Telecommunications, Inc.
                                   Bank One
                                                       ——|   (f/k/ia Coast Acquisition
                                       Financing
                                                                   Corporation), a
                                                              Delaware corporation



Document Created: 2019-04-15 01:44:52
Document Modified: 2019-04-15 01:44:52

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