Attachment 20161215104735-807.p

20161215104735-807.p

SUPPLEMENT

Supplement

2000-08-09

This document pretains to ITC-T/C-20000803-00462 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2000080300462_1382334



                                                      suffle¥ELLon                                             65—270
                                                                                                                550
       ARNOLD & PORTER
                                                      SunTrust Bank




          555 Twelfth Street, N.W
       Washington, D.C. 20004—1202                                    Date   August 3.   72000



PAY   sEVEN    HUNLNRE O EdIGHTY     &    Nis100                                     DOLLARS $       780,.00
                                                                                     CDA Number 200564367

   PAY
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    TO                                                                                   ARNOLD & PORTER
   THE
  ORDER
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                                                ARNOLD               &      PORTER                              NEW YORK
                                                       555 TWELFTH STREET, N.W.                                  DENVER
                                                     WASHINGTON, D.C. 20004—1206
PHILIP W. HORTON                                             (202) 942—5000                                    MeSAngiLes
(202) 942—5787                                            FACSIMILE: (202) 942—5999                             LONDON
INTERNET: Philip_Horton@aporter.com

                                                           August 3, 2000



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


                          Re:         Application of SBC Communications Inc. and A&T Wireless PCS, LLC
                                      for Authority, Pursuant to Section 214 of the Communications Act of
                                      1934, as Amended, to Transfer Control of the International Section 214
                                      Authorization Applied for by Eclipse PCS of Indianapolis, LLC


               Dear Sir/Madam:

                        Enclosed for filing please find an original and five copies of the application of
               SBC Communications Inc, AT&T Wireless PCS, LLC, and Eclipse PCS of Indianapolis,
               LLC for authority pursuant to Section 214 of the Communications Act, 47 U.S.C. § 214,
               and Section 63.18 of the Commussion‘s Rules, 47 C.F.R. § 63.18, to transfer control of an
               application for international Section 214 authorization. Also enclosed is a check payable
               to the Federal Communications Commission in the amount of $780.00 for the prescribed
               filing fee.

                      Please note that the applicants are requestingstreamlined processing of this
               Section 214 application, pursuant to Section 63.12 of the Commussion‘s Rules, 47 C.F.R.
               §03.12.

                        As indicated in the application, please direct questions or correspondence
               concerning SBC Communications Inc. and Eclipse PCS of Indianapolis, LLC‘s portions
               of this application to:


ARNOLD      &   PORTER

   Federal Communications Commission
   August 3, 2000
   Page 2




                   Wayne Watts
                   Vice President and Assistant General Counsel
                   SBC Communications Inc.
                   175 E. Houston
                   San Antonio, TX 78205
                   210—351—3476 (voice)
                   210—351—3257 (facsimile)


         Please direct questions or correspondence concerning AT&T Wireless PC;i,
   LLC‘s portion of this application to:

                   Douglas I. Brandon
                   Vice President
                   AT&T Wireless Services, Inc.
                   1150 Connecticut Avenue, NW
                   4"" Floor
                   Washington, DC 20036
                   (202) 223—9222 (voice)
                   (202) 223—9095 (facsimile)

            Thank you for your assistance.

                                                Sincerely,
                                                                          e

                                                Philip W. Horton


   Enclosures


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                                       SEE PUBLIC BURDEN ON REVERSE                                                       FCC FORM 159         FEBRUARY 2000 (REVISED)


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




                                             N NN NA NA NT NA NY No Nt N) N N N N) N)/ No)
In the Matter of                                                                                               406 U
                                                                                                     Inp,"    CC          yAQ
SBC Communications Inc.                                                                                      ”e""ab?’boi%r
Transferor,                                                                                                        )”a"Bu,.’o”'
                                                                                                                           Ga"


and

AT&T Wireless PCS, LLC                                                                       File No. ITC—            o
Transferee.

Application for Authority, Pursuant to
Section 214 of the Communications Act
of 1934, as Amended, to Transfer Control
of the International Section
214 Authorization Applied for by
Eclipse PCS of Indianapolis, LLC




              JOINT APPLICATION FOR TRANSFER OF CONTROL OF
                  APPLICATION FOR SECTION 214 AUTHORITY



       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

Commuission ("Commission"), 47 C.F.R. § 63.18, SBC Communications Inc. ("SBC") and

AT&T Wireless PCS, LLC ("AWP") (collectively, "Applicants") hereby request

Commission approval to transfer control to AWP of the international Section 214

authorization applied for by Eclipse PCS of Indianapolis, LLC ("Eclipse"). The Applicants

seek streamlined processing for this application pursuant to Section 63.12 of the

Commission‘s Rules.


        In support of this application, the Applicants submit the following information.


L.      INTRODUCTION AND DESCRIPTION OF THE PARTIES AND
        TRANSACTION


        Eclipse has applied for international Section 214 authority to provide global

international resale services between the contiguous United States, Hawaii, the

Commonwealth of Puerto Rico ("Puerto Rico") and the United States Virgin Islands andall

international points.‘ The transfer of the authorization for Section 214 authority applied for

by Eclipse is part of a transaction in which SBC is transferring control of its PCS system, the

Indianapolis MTA.‘ This transaction will allow AWP, one of the nation‘s leading CMRS

providers, to obtain additional spectrum and to expand its cellular footprint to better serve its

customers. The Applicants, the transaction into which they propose to enter, and the

application for international Section 214 authorization to be transferred, are summarized

below. As demonstrated herein, the proposed transfer of control will serve the public

interest, convenience and necessity.

A.     TheParties

       AWP‘s principal businesses consist of providing CMRS and other

telecommunications services throughout the United States. AWP is a wholly owned

subsidiary of AT&T Corporation ("AT&T"). AT&T has foreign affiliations within the



‘ This application for international Section 214 authorization was filed with the Commission
on July 20, 2000.
* An application to transfer control of the Title III license is being filed concurrently with
this Application.


meaning of Section 63.09(e) of the Commission‘s Rules® with carriers in Canada, Chile, El

Salvador, Guatemala, Japan, Mexico, the Netherlands, the Philippines and the United

Kingdom ("UK"). AWP operates under the blanket international Section 214 authority of

AT&T.


        SBC‘s principal businesses consist of local exchange, wireless and directory

publishing services provided by operating subsidiaries of SBC. SBC has foreign affiliations

within the meaning of Section 63.09(e) of the Commission‘s Rules* with carriers in South

Africa, Switzerland, Hungary, Norway, the Netherlands, Denmark, Germany, Canada,

Lithuania and Belgium. SBC‘s subsidiaries hold a number of international Section 214

authorizations, which are described more fully below.


B.      The Transaction

        SBC and AWP have entered into an agreement under which SBC will transfer

control of Eclipse to AWP. Following consummation of the transaction, Eclipse will be

controlled by AWP. The proposed transaction is described in detail in Exhibit 1.


IL.     PUBLIC INTEREST CONSIDERATIONS


        The Applicants believe that the proposed transfer of control will serve the public

interest, convenience and necessity. As described fully in Exhibit 1, the proposed

transaction will plainly result in public interest benefits and will not trigger anti—competitive



347 C.F.R. § 63.09(€).
4 m


effects in any market. Moreover, AWP is highly qualified to be in ultimate control ofthis

application for authorization. The transfer of control ofthe international Section 214

authorization applied for by Eclipse is incidental to this larger transaction. Nevertheless,

grant ofthe instant application is essential to preserve international calling capabilities in the

affected markets upon transfer. Failure to grant this request would not only deprive

customers in these markets of critical calling capabilities on which they have come to rely,

but it would also reduce the ability of these systems to compete fully and fairly in the

communications marketplace.

       Because the proposed transfer of control is in the public interest, convenience and

necessity and otherwise complies with applicable law and regulations, the Applicants

respectfully request that the Commissiongrant this Application expeditiously.


III.   OTHER INFORMATION PROVIDED PURSUANT TO SECTION 63.18
       OF THE COMMISSION‘S RULES


       The Applicants hereby submit the information required under Section 63.18 of the

 Commission‘s Rules, 47 C.F.R. §§ 63.18(a)—(p), and in support of the Applicants‘ request.

 The information set forth below is labeled according to the corresponding rule section to

 which it is responsive.

       Section 63.18(a) Identifying Information. The names, addresses and telephone

 numbers of the Applicants are:

            SBC Communications Inc.
            175 E. Houston Street
            San Antonio, TX 78205
            210—351—3476


          AT&T Wireless PCS, LLC
          1150 Connecticut Avenue, NW
          4 Floor
          Washington, DC 20036
          202—223—9222

          Eclipse PCS of Indianapolis, LLC
          17330 Preston Road
          Suite 100A
          Dallas, TX 75252
          (972)733—2092


     Section 63.18(b) State of Organization. SBC is a corporation organized under the

laws of the State of Delaware. AWP is a limited liability company organized under the

laws of the State of Delaware.

     Section 63.18 (c) Contact Information. All correspondence concerning this

application should be addressed to:


      For SBC and Eclipse:

        Wayne Watts
        V.P. & Assistant General Counsel
        SBC Communications Inc.
        175 E. Houston Street
        San Antonio, TX 78205

        210—351—3476 (voice)
        210—351—3257 (facsimile)

     with a copy to

        Philip Horton
        Arnold & Porter
        555 12th Street, N.W.
        Washington, DC 20004

        (202) 942—5787 (voice)
        (202) 942—5999 (facsimile)


        For AWP:


             Douglas I. Brandon
             Vice President
             AT&T Wireless Services, Inc.
             1150 Connecticut Avenue, NW
             4 Floor
             Washington, DC 20036
             (202) 223—9222 (voice)
             (202) 223—9095 (facsimile)

        with a copy to

             David C. Jatlow, Esq.
             Young & Jatlow
             1150 Connecticut Avenue, NW
             4"" Floor
             Washington, DC 20036
             (202) 416—6540 (voice)
             (202) 416—6539 (facsimile)

        Section 63.18(d) Existing Authorizations.

1.      AWP, a wholly owned subsidiary of AT&T, operates under the blanket authority of

AT&T to provide international services. AT&T is authorized to provide international basic

switched, private line, data, television and business services. AT&T holds the following

authorizations:

        a.        AT&T Corporation, ITC—96—467 (authorization to provide global facilities—

                  based services).

        b.        AT&T Corporation, ITC—95—558 (authorization to lease and operate satellite

                  voice—grade bearer circuits to all overseas points).

2.      SBC‘s subsidiaries and affiliates currently hold the following international Section

214 authorizations to provide both resold and facilities—based switched (voice and data) and

private line international services:


        a.             Ameritech Mobile Communications, Inc., FCC File No. ITC—214—

                19960418—00152 (public notice of approval, Report No. I—8180, DA 96—933,

               June 13, 1996; effective June 10, 1996).

       b.              CCPRServices, Inc., FCC File No. ITC—94—100 (public notice of

               approval, Report No. —6941, March 16, 1994; effective March 13, 1994)."

                       USVI Cellular Telephone Corporation, FCC File No. ITC—93—128

               (public notice of approval, Report No. 1—6796, May 12, 1993; effective May

               8, 1993)."

                       Southwestern Bell Communications Services—Massachusetts, Inc.,

               FCC File No. ITC—96—496 (Oct. 25, 1996) (public notice ofapproval, DA 96—

               1796, Oct. 31, 1996; effective Oct. 25, 1996).

                       Southwestern Bell Confinunications Services—Maryland, Inc., FCC

               File No. ITC—96—498 (public notice of approval, DA 96—1796, Oct. 31, 1996;

               effective Oct. 25, 1996).




° This international section 214 authorization is the subject of a pending transfer of control
application filed with the Commission on May 4, 2000, to transfer control of this
authorization to Alloy LLC, a joint venture between SBC and BellSouth Corporation.
° This international section 214 authorization is the subject of a pending transfer of control
application filed with the Commission on May 4, 2000, to transfer control of this
authorization to Alloy LLC, a joint venture between SBC and BellSouth Corporation.
‘ This international section 214 authorization is the subject of a pending transfer of control
application filed with the Commission on May 4, 2000, to transfer control of this
authorization to Alloy LLC, a joint venture between SBC and BellSouth Corporation.


         Southwestern Bell Communications Services—New York, Inc., FCC

File No. ITC—96—499 (public notice of approval, DA 96—1796, Oct. 31, 1996;

effective Oct. 25, 1996).

         Southwestern Bell Communications Services—Illinois, Inc., FCC File

No. ITC—96—500 (Oct. 25, 1996) (public notice of approval, DA 96—1796, Oct.

31, 1996; effective Oct. 25, 1996).

         Southwestern Bell Communications Services, Inc., FCC File No.

ITC—96—497 (public notice of approval, DA 96—1796, Oct. 31, 1996; effective

Oct. 25, 1996).

         Southwestern Bell Communications Services, Inc., FCC File No.

ITC—214—19971108—00689 (public notice, DA 99—1613, released August 13,

1999).

         Pacific Bell Communications, FCC File No. ITC—96—689 (public

notice of approval, DA 97—327, Feb. 13, 1997; effective Feb. 7, 1997).

         SBC Global Communications, Inc., FCC File No. ITC—96—692 (order,

authorization and certificate, DA 97—1928, Sept. 9, 1997; effective Sept. 5,

1997).

         SNET America, Inc., FCC File Nos. ITC—93—256 (public notice of

approval, Report No. 1—6858, Sept. 15, 1993), ITC—95—145 (public notice of

approval, Report No. 1—8030, Mar. 22, 1995; effective Mar. 17, 1995) and

ITC—96—172 (public notice of approval, Report No. I—8171, DA 96—668, May

2, 1996; effective Apr. 26, 1996).


              SNET Diversified Group, Inc., FCC File No. ITC—96—538 (public

      notice of approval, Report No. I—8218, DA 96—1988, Nov. 27, 1996; effective

      Nov. 22, 1996).

1+.          Ameritech Communications, Inc., FCC File No. ITC—96—272 (order,

      authorization and certificate, DA 96—1169, 11 FCC Red. 8685, July 24, 1996;

      effective July 19, 1996; memorandum, opinion and order removing interim

      separation safeguards, DA 97—1662, 12 FCC Red. 11654, August 4, 1997).

P            Ameritech Communications, Inc., FCC File No. ITC—96—441 (public

      notice of approval, Report No. I—8202, DA 96—1551, Sept. 19, 1996; effective

      Sept. 13, 1996).

p.           Ameritech Communications, Inc., FCC File No. ITC—97—289 (public

      notice of approval, Report No. I—8251, DA 97—1442, July 10, 1997; effective

      July 9, 1997).

4.           Southwestern Bell Communications Services, Inc., FCC file No. ITC—

      214—20000301—00125 (public notice of approval, Report No. TEL—O00212, DA

      00—768, April 6, 2000; effective March 31, 2000).

             Southwestern Bell Communications Services, Inc. FCC file No. ITC—

      214—20000127—00027 (public notice of approval, DA 00—1474, June 30, 2000,

      effective June 30, 2000).

             Pacific Telesis Mobile Services, FCC file No. ITC—214—20000516—

      00368 (public notice of approval, DA 00—1614, July 20, 200, effective July

      14, 2000).


                       SNET Mobility, Inc., FCC file No. ITC—214—20000516—00367 (public

               notice of approval, DA 00—1614, July 20, 2000, effective July 14, 2000).

3.     SBC‘s subsidiaries and affiliates have applied for the following international Section

214 authorizations to provide global international resale service«

       1:              SNET    Cellular,   Inc.        has   an   app   m pending before the

                      Commission requesting authority to                ide global international

                      resale services. This application was fil         May 16, 2000.

       b.             SBC Wireless, Inc. has an application 1           g before the Commission

                      requesting authority to provide globa             mational resale services.

                      This application was filed on May 16,

                      Radiofone, Inc. has an application pe              before the Commission

                      requesting authority to provide globa             mational resale services.

                      FCC File No. ITC—214—20000516—004                 ‘his application was filed

                      on May 16, 2000.

       d.             Baton Rouge Cellular Telephone (                  my has an application

                      pending before the Commission reques              uthority to provide global

                      international resale services. FCC File No. ITC—214—20000721—00427.

                      This application was filed on July 21, 2000.

                      Houma—Thibodaux Cellular Partnership has an application pending

                      before the Commission requesting authority to provide global

                      international resale services. FCC File No. ITC—214—20000721—00430.

                      This application was filed on July 21, 2000.




                                                  10


        £.             Ameritech Wireless Communications, Inc. has an application pending

                       before the Commission requesting authority to provide global

                       international resale services. FCC File No. ITC—214—2000720—00425.

                       This application was filed on July 20, 2000.

       g.              Eclipse PCS ofIndianapolis, LLC has an application pending before

                       the Commission requesting authority to provide global international

                       resale services. FCC File No. ITC—214—20000720—00424. That

                       application was filed on July 20, 2000 and is the subject of this

                       Application.

       Section 63.18(e) Authority Requested. AWP is applying for authority under

Section 63.18(e)(3), 47 C.F.R. § 63.18(e) of the Commussion‘s Rules, to transfer control of a

common carrier (Eclipse PCS ofIndianapolis, LLC) who has applied for international

Section 214 authority to provide global international resale services.

       Section 63.18(f) Separate Applications. No response required.

       Section 63.18(g) Categorical Exclusion ofFacilities—Based Operations. The

Applicants are not seeking facilities—based authority under Section 63.18(e)(4) of the

Commussion‘s Rules. 47 C.F.R. § 63.18(e)(4). Therefore, and in accord with Section

63.18(e)(3), Section 63.18(g) requires no response from the Applicants.®




8 See 47 C.F.R. §§ 63.18(e)(3) & 63.18(g).


                                              11


Section 63.18(h) Transferee Ownership.

        AWP is a single—member Delaware limited liability company whose sole member is

AT&T. No entity holds more than 10% of the common stock of AT&T.

       Section 63.18(i) Foreign Carrier Affiliations.

       AWP is a wholly owned subsidiary of AT&T. AT&T has affiliations with the

following foreign carriers in the following countries:

1.     Canada:                AT&T Canada Corp.
                              AT&T Canada Telecom Service Company

2      Chile:                 AT&T Chile

3.     El Salvador:           AT&T Coramunications Services El Salvador S.A. de C.V.

4.     Guatemala:             VLT Guatemala, S.A.

3.     Japan:                 Concert Japan Y.K.

6.     Mexico:                Alestra S. de R.L. de C.V.

7.     Netherlands:           VLT Nederland B.V.

8.     Philippines:           Subic Telecommunications Company, Inc.

9.     UK:                    Concert Communications Company


       Section 63.18(J) Destination Markets.

       AWP certifies that it seeks to provide international telecommunications services to

the following countries in which an entity that owns more than 25 percent of AWP, or that

controls AWP, controls a foreign carrier:

1.     Chile:                 AT&T Chile

2.     El Salvador:           AT&T Communications Services El Salvador S.A. de C.V.




                                              12


3.      Guatemala:             VLT Guatemala, S.A.

4.      Japan:                 Concert Japan Y.K.

5.     Netherlands:            VLT Nederland B.V.

6.     UK:             Concert Communications Company


       Section 63.18(k) WTO Membership/Market Power.

       All of the destination countries listed in Section (j) above are members of the World

Trade Organization.

       Section 63.18() International Switched Resale Condition

       AWP and AT&T qualify for a presumption of non—dominance on all affiliated routes

and therefore satisfy Section 63.10.

       Section 63.18(m) Non—Dominant Treatment.

       AWP and AT&T certify that they qualify for a presumption of non—dominance on all

affiliatedroutes pursuant to Section 63.10 because all foreign affiliates have less than 50

percent market share in the international transport and local access markets in their home

countries and therefore lack any market power.


        Section 63.18(n) Special Concessions Certification. AWP hereby 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 market power

on the foreign end of the route and will not enter into such agreements in the future.

       Section 63.18(0) Anti—Drug Abuse Act Certification. AWP is not subject to a denial

of Federal benefits pursuant to Section 5301 of the Anti—Drug Abuse Act of 1988. Attached




                                              13


hereto is a certification, pursuant to Sections 1.2001 through 1.2003 of the Commission‘s

Rules (implementing the Anti—Drug Abuse Act of 1988, 21 U.S.C. § 862), of AWP.

        Section 63.18(p) Streamlining. The Applicants request streamlined processing of

this application.




                                             14


L.      CONCLUSION

        In view of the foregoing, the Applicants respectfully request the Commission to

grant this application.


                Respectfully submitted,


                AT&T WIRELESS PCS, LLC




DATE: 8 /3 /oo




                                          15


SBC COMMUNICATIONS INC.




patTE: @lz2l00




                          16


                     CERTIFICATION PURSUANT TO
           SECTIONS 1.2001—1.2003 OF THE COMMISSION‘S RULES

       Pursuant to Sections 1.2001—1.2003 of the Commission‘s Rules, 47 C.F.R.

§§ 1.2001—1.2003, AT&T Wireless PCS, LLC hereby certifies that neither it, nor any of

its officers or directors, nor any of the shareholders holding 5 percent or more of the

outstanding stock or shares (voting and/or non—voting) of AT&T Wireless PCS, LLC is

subject to a denial of federal benefits that include FCC benefits pursuant to Section 5301

of the Federal Anti—Drug Abuse Act of 1988, 21 U.S.C. § 862.


               AT&E     WIRELESS PCS, LLC



                 Y A"




DATE: al s|oo


                                                                   Section 214 Application
                                                                   Exhibit 1
                                                                   Page 1 of 10

             DESCRIPTION OF TRANSACTION, PUBLIC INTEREST
                 SHOWING AND RELATED DEMONSTRATIONS


I.     INTRODUCTION

       These applications seek Commission approval for the transfer of control of certain

FCC authorizations controlled by SBC Communications Inc. ("SBC") to AT&T Wireless

PCS, LLC ("AWP").‘ SBC has entered into the transaction that is the subject of these

applications in order to resolve spectrum cap issues raised by its pending wireless joint

venture with BellSouth Corporation ("BellSouth")." The applications relate to PCS

services in the Indianapolis, Indiana MTA, as well as international services under Section

214 of the Communications Act."

       This transaction has two major procompetitive benefits. First, the transaction will

cure spectrum cap problems arising from the SBC/BellSouthjoint venture, thus allowing

that transaction to go forward and bringing about the public interest benefits that were

described in the transfer applications filed by SRC and BellSouth. Second, it will provide

AT&T, a leading CMRS provider, additional spectrum and expansion of its CMRS

footprint. The Commission has repeatedly found that the expansion of CMRS systems

brings benefits to consumers and is procompetitive, and these transactions will lead to the


‘ SBC and AWP, together with their affiliates that are involved in this transaction, will be
collectively referred to herein as the "Applicants."
> SBC and BellSouth filed transfer of control and assignment applications to transfer
certain CMRS entities to a joint venture, Alloy LLC, on May 4, 2000.
‘ Concurrently, the Applicants and a third party, Indiana Acquisition, L.L.C., have filed
applications to swap 10 MHz licenses in the MTA. See ULS File Numbers 0000200115,
0000200155, 0000200157 & 0000200199. The Applicants request simultaneous
processing of all of these applications.


                                                                  Section 214 Application
                                                                  Exhibit 1
                                                                  Page 2 of 10

same benefits that the Commussion has acknowledged in approving similar transactions

in the past. Accordingly, the Commission should approve these applications

expeditiously.

IL.    THE PROPOSED TRANSACTION

       On July 22, 2000, SBC and AWP (and certain of their affiliates) entered intoa

"Purchase Agreement,"" pursuant to which SBC will transfer control to AWP of its 20

MHz B Block PCS license (held by Eclipse PCS of Indianapolis, LLC) ("Eclipse") for

the Indianapolis MTA, as well as an international Section 214 application." The identity

of the licensee will not change, but AWP will control and become the parent company of

Eclipse. AWP will also acquire all of the facilities and customers that SBC has in the

MTA.

       As a result of the proposedtransaction, AWP will have 30 MHz of PCS spectrum

in eight BTAs in the Indianapolis MTA, 40 in two others and 20 in the remaining BTA.°

However, its only operational spectrum will be the Eclipse spectrum it will receive




* The parties to the Purchase Agreement are SBC, its subsidiary, Ameritech Wireless
Communications, Inc. ("Ameritech Wireless"), AT&T Wireless Services, Inc. and its
affiliate AWP.
° Until recently, Ameritech Wireless held the 30 MHz B Block license for the
Indianapolis, Indiana MTA. On July 24, 2000, however, that license was disaggregated
into one 20 MHz license and one 10 MHz license. See ULS File No. 0000195759. The
20 MHz portion was assigned, as will be all of Ameritech Wireless‘s facilities and
customers in this MTA, to Eclipse, which is a newly created limited liability company
that is wholly owned by Ameritech Wireless. The remaining 10 MHz of spectrum, which
is not currently being used to provide service to the public, was retained by Ameritech
Wireless.
° AWP currently has a single 10 MHz license in eight BTAs and two 10 MHz licenses in
two BTAs.


                                                                    Section 214 Application
                                                                    Exhibit 1
                                                                    Page 3 of 10

through this transfer. SBC 1\       ntrol 10 MHz of spectrum throughout the MTA, which

it plans to contribute to the {     JellSouth joint venture.

III.    DESCRIPTION OJ              1 APPLICANTS
        AND THEIR EXIS              ; BUSINESS

        A.       SBC
        SBC is a holding cor        r whose affiliates provide wireline and wireless voice

and data communications, p          , high—speed Internet access and messaging, cable and

satellite television, security :    es and telecommunications equipment, as well as

directory advertising and pu        ag services. In the United States, SBC‘s affiliates

currently serve over 90 milli       ice grade equivalent lines, and SBC‘s CMRS affiliates

provide cellular and PCS se         o a population of 120 million persons, both within the

13 states where SBC‘s affili        :e incumbent local exchange carriers and elsewhere.

SBC‘s CMRS affiliates curr          serve approximately 11.2 million cellular and PCS

customers.

        B.      AWP

        AWP is one ofthe la         wireless service providers in the United States. It offers

a variety of services for both voice and data communications. It is a subsidiary of AT&T

Corp. ("AT&T"). AT&T is one of the world‘s communications leaders, providing voice,

data and video communications services to large and small businesses, consumers and

government entities. AT&T and its subsidiaries furnish domestic and international long

distance, regional, local and wireless communications services, cable television and

Internet communications services.


                                                                     Section 214 Application
                                                                     Exhibit 1
                                                                     Page 4 of 10

IV.     PUBLIC INTEREST STATEMENT

        A.      The Standard of Review


        To approve the transfer of control of the FCC authorizations at issue, the

Commission must find that the transaction is consistent with the public interest,

convenience and necessity. See 47 U.S.C. § 310(d). In making that finding, the

Commission will consider (i) whether the transaction will yield affirmative public interest

benefits and (ii) whether the transaction will violate or interfere with the objectives of the

Communications Act or the Commission‘s rules, by reducing competition or otherwise.‘

In addition, the Commission must determine whether AWP is qualified to control the

FCC authorizationsin question.*

       Many transfer applications on their face show that a transaction will yield

affirmative public interest benefits and will not violate the Communications Act or

Commission rules, nor frustrate or undermine its policies and enforcement of the

Communications Act by reducing competition or otherwise." Such applications do not

require extensive review and expenditures of considerable resources by the Commission



" In re Applications of Ameritech Corp. and SBC Communications Inc., Memorandum
Order and Opinion, 14 FCC Red. 14712 [ 48 (1999) ("SBC/Ameritech").
° 1d. [ 568; In re Applications of Comeast Cellular Holdings, Co. and SBC
Communications Inc., Memorandum Opinion and Order, 14 FCC Red. 10604 € 4 (WTB
1999) ("SBC/Comcast"); In re Applications of Southern New England
Telecommunications Corp. and SBC Communications Inc., Memorandum Opinion and
Order, 13 FCC Red. 21292 [ 26 (1998) ("SBC/SNET").
° See SBC/Ameritech [ 54; In re Applications of Tele—Communications, Inc. and AT&T
Corp., Memorandum Opinion and Order, 14 FCC Red. 3160 16 (1999) (citing In re
Applications of Bourbeuse Tel. Co. and Fidelity Tel. Co., Memorandum Opinion and
Order, 14 FCC Red. 803 (1998)) CAT&T/TCT).


                                                                     Section 214 Application
                                                                     Exhibit 1
                                                                     Page 5 of 10

andinterested parties.‘" This is such a transaction, and the Commission should approve

the transfer applications expeditiously."‘

       B.        The Transactions Are Consistent with the Public
                 Interest, Convenience and Necessity


       The Commuission should unconditionally approve the transfer of control described

above because:

       e    Thetransaction will yield affirmative public interest benefits in the CMRS

            market — benefits that the Commussion has repeatedly recognized in approving

            similar transactions;

       e    Thetransaction will not violate the Communications Act or Commission

            rules, norfrustrate or undermine its policies and enforcement of the

            Communications Act, either by harming competitionor otherwise; and

       e    AWP is clearlyqualified to control the authorizations.

                 1.    Public Interest Benefits

       This transaction will enhance CMRS service. Consumers will benefit because

AWP (byitself and with other AT&T affiliates) will be able to extend its wireless


‘° See SBC/Ameritech « 54.
‘ The Commission has emphasized that a detailed showing of benefits is not required for
transactions where there are no anticompetitive effects. The Commission stated in
SBC/SNET ( 45, that, in the absence of anticompetitive effects, a detailed showing of
benefits is not necessary in seeking approval of a merger. Similarly, as the Commission
stated in its approval of the SBC/Telesis merger, where it found that the merger would
not reduce competition and that SBC possessed the requisite qualifications to control the
licenses in question, "[a] demonstration that benefits will arisefrom the transfer is not
... a prerequisite to our approval, provided that no foreseeable adverse consequences
will result from the transfer." In re Applications of Pacific Telesis Group and SBC
Communications Inc., Memorandum Opinion and Order, 12 FCC Red. 2624 2 (1997)
("SBC/Telesis") (emphasis added).


                                                                    Section 214 Application
                                                                    Exhibit 1
                                                                    Page 6 of 10

footprint and to offer new services, such as, for example, AT&T‘s national rate plan, to

consumers. These changes will promote competition among CMRS service providers, as

the Commission has repeatedly recognized in approving mergers or transfers allowing for

larger CMRS systems.12 Moreover, consumers will enjoy additional benefits beyond

those that flow from a larger calling scope because AWP and its affiliates will be able to

offer consistency of advanced features that can be designed and operated to minimize

costs and maximizeefficiencies. Finally, this transfer will give AWP access to enough

spectrumin the covered market to provide a wider range of voice and data services,

which will clearly benefit consumers.

        In addition, the transfer of SBC‘s 20 MHz PCS authorization in the Indianapolis

MTAwill serve the public interest because it will allowthe consummation of the CMRS

joint venture between SBC and BellSouth. For the reasons set forth in the transfer

applications for that venture, it will bring about a number of significant public interest

benefits. Accordingly, the transaction with AWP will serve the public interest by

facilitating the joint venture.

        These are the types of public benefits that the Commission relied on in approving

other CMRS mergers."" The same result is appropriate here.




  SBC/Comcast [ 10; In re Applications of Vanguard Cellular Sys., Inc. and Winston,
Inc., Memorandum Opinion and Order, 14 FCC Red. 3844 23 (WTB 1999)
("‘Winston/Vanguard"); In re Application of 360 Communications Co. and ALLTEL
Corp., Memorandum Opinion and Order, 14 FCC Red. 2005 [ 41 (WTB 1998);
SBC/SNET J 44—45; In re Application of Bell Atlantic Mobile Sys., Inc. and Nynex
Mobile Communications Co., 10 FCC Red. 13368 « 44—48 (WTB 1995).
"} E.g., SBC/SNET C 44—45; SBC/Comeast « 10.


                                                                   Section 214 Application
                                                                   Exhibit 1
                                                                   Page 7 of 10

               2.      No Anticompetitive Effects

       The proposed transaction will not violate the Communications Act or the

Commission‘s Rules, nor frustrate or undermine its policies and enforcement of the

Communications Act. In particular, the transaction raises no anticompetitive issues and

thus is fully consistent with the procompetitive and deregulatory policies of the

Communications Act.

       Indeed, for the reasons discussed above, the transaction will be procompetitive.

At present, AWP has only 10 MHz of spectrum in eight of the BTAs in the Indianapolis

MTA, and none in two others; none of that spectrum is yet in service. After the

transaction, AWP will not only substantially increase its spectrum holdings, allowing it to

be a more effective competitor, but it will immediately become an actual competitor,

rather than a potential competitor possessing only raw spectrum, since it will obtain

SBC‘s facilities and customers. AWP will also increase the geographic footprint ofits

CMRS licenses by obtaining spectrum in two BTAs in the Indianapolis MTA in which it

currently has no license. SBC and BellSouth, in turn, will not only remain in the market;

they will become the sixth national wireless carrier.‘* Thus, these transactions will

enhance competition.




4 In addition, there are a number of other significant competitors within the MTA. For
example, Verizon is the B Band cellular licensee throughout the Indianapolis MTA, while
Sprint holds the A Block PCS license in the MTA. VoiceStream also controls a number
of 10 MHz PCS licenses within the MTA, as does its joint venture with Cook Inlet.


                                                                    Section 214 Application
                                                                    Exhibit 1
                                                                    Page 8 of 10

               3.      AWP‘s      Qualifications

       There can be no question as to AWP‘s qualifications. The qualifications of AWP,

which — with its affiliates — is among the nation‘s leading CMRS carriers, are well known

to the Commission, which has repeatedly found that it is qualified to control the types of

authorizations at issue here.""

vV.    RELATED GOVERNMENT FILINGS

       In addition to this filing, the Applicants are taking steps to obtain other

government approvals necessary to consummate the transfer. Specifically, as part of its

review of the proposed SBC/BellSouth joint venture, the Department of Justice will

review the transfer of Eclipse‘s 20 MHz PCS license to AT&T.

VI._   ADDITIONAL AUTHORIZATIONS

       In addition to seeking the Commussion‘s approval of the transfer of control of the

FCC authorizations covered in these applications, the Applicants are also requesting the

additional authorizations described below.

       A.      After—Acquired Authorizations

       While the lists of authorizations specified in the applications for approval of the

transfers of control are intended to be complete, the Applicants may have on file, and

may file for, additional authorizations for new or modified facilities, some of which may


5 See, e.g., In re Applications of MediaOne Group, Inc. and AT&T Corp., Memorandum
Opinion and Order, 15 FCC Red. 9816 (2000) (approving the transfer of control over
Commuission authorizations to AT&T); Winston/Vanguard [ 3 & n.7 (stating "we find the
transferee to be duly qualified" and noting that "the Commission hald] recently approved
AT&T‘s licensee qualifications" (citing AT&T/TCI)). More particularly, the
Commission has approved AWP‘s qualifications to hold over 200 broadband PCS
licenses. See, e.g., File Nos. 00050CWLO95 et seq. and 0000030525.


                                                                   Section 214 Application
                                                                   Exhibit 1
                                                                   Page 9 of 10

be granted during the pendency of these transfer of control applications. Accordingly,

the Applicants request that the grant of the applications include authority for them to

acquire control of the following items:

       (1)     any authorization issued to the Applicants during the Commission‘s

               consideration of the applications and the period required for

               consummation of the transaction following approval;

       (2)     construction permits held by suchlicensees that mature into licenses after

               closing and that may not have been included in the applications; and

       (3)     applications that will have been filed by such licensees and that are

               pending at the time of consummation of the transaction.

Such action would be consistent with prior decisions of the Commission.‘°

       B.      Blanket Exemptions to Cut—Off Rules

       The public notice announcing this transaction will provide adequate notice to the

public with respect to such licenses, including any for which license modifications are

now pending. Therefore, no waiver needs to be sought from Sections 1.927(h) and

1.929(a)(2) of the Commission‘s rules to provide a blanket exemption from any

applicable cut—off rules in cases where the Applicants file amendments to pending

applications to reflect the consummation of the proposed transfer of control.""

‘© See, e.g., SBC/SNET 49; SBC/Telesis [ 93; In re Applications of Craig O. McCaw
and American Tel. & Tel. Co., Memorandum Opinion and Order, 9 FCC Red. 5836 [ 137
n.300 (1994), aff sub nom. SBC Communications Inc. v. FCC, 56 F.3d 1484 (D.C. Cir.
1995), recons. in part, 10 FCC Red. 11786 (1995).
e See In re Applications of Ameritech Corp. and GTE Consumer Services Inc.,
Memorandum Opinion and Order, 15 FCC Red. 6667           2 n.6 (WTB 1999);
SBC/Comcast 2 n.3.


                                                                  Section 214 Application
                                                                  Exhibit 1
                                                                  Page 10 of 10

VII._   CONCLUSION

        For the foregoing reasons, the Commussion should conclude that this transaction

serves the public interest, convenience and necessity, and should grant the applications

expeditiously.



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Document Modified: 2019-04-14 10:20:59

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