Attachment 20170905112106-380.p

20170905112106-380.p

SUPPLEMENT

Supplement

2006-08-10

This document pretains to ITC-T/C-20060810-00386 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2006081000386_1626763

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




                                                           No/ No/ Ns Ns Nes N) N) Ne Nt Nest! Nes! Nus! Nus! Neus! Nes‘
I1   he Matter of

0    EEIGHTY COMMUNICATIONS, INC.
                                                                                                                           File No. ITC—T/C—2006_
         Transferor,

E    HELON TELECOM, INC.

         Tfansferee,                                                                                                       WC Docket No. 06—_______

Jc   it Application for Consent to a Transfer
P    suant to Section 214 of the Communications
A    of 1934, as Amended




             JOINT INTERNATIONAL AND DOMESTIC APPLICATION
              FOR STEAMLINED CONSENT TO TRANFER CONTROL


         Pursuant to Section 214 of the Communications Act of 1934, as amended (the

*    t)," and Sections 63.04 and 63.24 of the Commission‘s rules," this Application seeks

th   consent of the Federal Communications Commission to the proposed transfer of

ultimate control of OneEighty Communications, Inc. ("OCI") to Eschelon Telecom,

Inc.("ETI").      ETI and OCI are non—dominant carriers authorized by the Commission to

provide international® and domestic telecommunications services.                                                                         A Domestic


|        47 U.S.C. § 214.
*        47 C.F.R. §§ 63.04(b), 63.24(e).
*        ETI provides international telecommunications services pursuant to International Section 214
authorization granted by the Commission in File No. ITC—214—19990729—00490 on August 27, 1999. OCI
provides international telecommunications services pursuant to International Section 214 authorization
granted by the Commission in File No. ITC—ASG—20040426—00243 on June 30, 2004. ETI and OCI are
referred to collectively as the "Applicants."


Supplement, containing the information required by 47 EP . § 63.04, is attached hereto

as Exhibit A.

       Applicants seek streamlined processing of this            International and Domestic

Application pursuant to Sections 63.03 and 63.12 of              ‘ommission‘s Rules.‘     This

Application is eligible for strearnlined processing purs         :o Section 63.03(b)(2)(i) of

the Commission‘s Rules, 47 C.FR. § 63.03(b)(2)(1),               use (a) after the proposed

transaction, ETI and its affiliates, combined; 1) will t         »ss than 10 percent market

share in the interstate, interexchange marketplace, 2) 1         roQide: competitive services

exclusively in areas served by dominant local carr               aat are not parties to the

transaction, and (3) the Applicants are not currently            unant with respect to any

domestic service, and will not become dominant with              ‘ct to any domestic service

after consummation of the proposed transaction.         Th       plication also qualifies for

streamlined treatment under Section 63.12 because (a) 4          ants are not affiliated with a

dominant foreign carrier, (b) ETI will not becomeaffili          vith any foreign carrier as a

result of the proposed transaction, and (c) none of t]           ier provisions contained in

Section 63.12(c) of the Commission‘s Rules, 47 C.F.R. —          2, apply.

       Applicants seek to complete the proposed transaction on an expedited basis, and

therefore request expedited treatment and consideration of this Application, so that

Applicants‘     business   plans   can   be   implemented,   which   business   plans   include

consummation of the proposed transfer on or about September 30, 2006.

       In support of this Application, Applicants submit the following information:




4      47 C.F.R. §§ 63.03 and 63.12.


I.      APPLICANTS

        (a)      OneEighty Communications, Inc. (FRN # 0005075866)

        OneEighty Communications, Inc. ("OCI") is a privately owned corporatibn

organized under the laws of the state of Montana. OCTI is located at 206 North 29th

Street, Billings, MT 59101. OCI is authorized to provide and does provide

telecommunications services only in the state of Montana, where, it provides resold and

facilities—based local, resold long distance, and data services to small and medium—sized

businesses and residential customers. Altogether, OCI provides voice, data, Internet

services and business telephone systems to over 3,400 customers and has over 7,900

access lines® in service.

        OCI holds Section 214 authorizations from the Federal Communications

Commission to provide domestic and international resold telecommunications services.®

OCI is considered a non—dominant carrier under the Commission‘s Rules. OCI has no

affiliates that offer telecommunications services. The company has no affiliation, within

the meaning of Section 63.09(e) of the Commission‘s Rules, 47 C.F.R. § 63.09(e), with a

dominant U.S. or foreign facilities—based carrier.

         (b)      ESCHELON TELECOM, INC. (FRN #0010289114)

        Eschelon Telecom, Inc. is a corporation organized under the laws of the state of

Delaware. ETI‘s principal place of business is located at 730 2"" Avenue South, Suite

900, Minneapolis, Minnesota 55402. Eschelon Operating Company ("OPCO") is a

Minnesota corporation that functions as a holding company, which in turn is a direct,

wholly owned subsidiary of ETI, the ultimate parent corporation. ETI itself is authorized

to provide telecommunications services in California, Idaho, New Mexico and New


° Applicants define "access lines" as 64bps channels.


                                                    53.


York; however, ETI presently provides no service in New Mexico and only provides

 service, specifically long distance resale service, to 1 business customer in New York and

fewer than 10 business customers in Idaho. OPCO has several direct, wholly owned

 subsidiaries that offer telecommunications services in various states.‘ In these states, the

—subsidiaries provide resold and facilities—based local, resold long distance, Internet and

data services to small and medium sized—businesses. ETI and its subsidiaries, collectively

"Eschelon," are headquartered at the above address, provide voice, data, Internet services

and business telephone systems to over 60,000 customers, and have over 500,000 access

 lines in service. ETI owns switches in all states where it offers local services. ETI and

its subsidiaries provide local and/or long distance facilities—based service in 19 markets in

 10 states. There are no other affiliates of ETI that offer domestic telecommunications

 services. As permitted by Section 63.21 of the Commission‘s Rules, 47 C.F.R. § 63.21,

ETI‘s subsidiaries currently provide resold international switched telecommunications

 services pursuant to the parent company, ETJ‘s, international Section 214 authorization.®

         As a part of the proposed transaction, a newly created subsidiary of OPCO,

Degree Merger Sub, Inc., a Montana Corporation, will be merged with and into OCI. As

 a result of the merger, the separate corporate existence of Degree Merger Sub, Inc. shall


 6See Footnote 3, supra.
 ‘ Advanced TelCom, Inc. provides telecommunications services in the states of California, Nevada,
 Oregon and Washington. Oregon Telecom, Inc. provides telecommunications services in Oregon and
 Washington. Eschelon Telecom of Minnesota, Inc., Eschelon Telecom of Washington, Inc., Eschelon
 Telecom of Colorado, Inc., Eschelon Telecom of Nevada, Inc., Eschelon Telecom of Arizona, Inc.,
 Eschelon Telecom of Utah, Inc. and Eschelon Telecom of Oregon, Inc. each provide telecommunications
 services in the state that bears their name.
  On July 6, 2006, ETI and Mountain Telecommunications, Inc. (MTI) filed a Joint International and
Domestic Application for consent to transfer control of MTI to ETI pursuant to Section 214 of the
Communications Act. File No. ITC—T/C—20060706—00336 and WC Docket No. 06—141. The international
authorization was granted on July 28, 2006. (DA No. 06—1579). The domestic application is pending, as is
the application before the Arizona Corporation Commission. MTI provides service in the state of Arizona.


 8 See Footnote 3, supra.

                                                   ari


cease and OCI will continue as the surviving corporation of the merger as a wholly

owned subsidiary of        , which is a wholly owned subsidiary c         . Thus, ETI will

be the ultimate par        ‘ompany for OCI after consummatio1             the transactions

contemplated by the .      ment and Plan of Merger.

IL.    DESCRIPTT           )F THE TRANSACTION

       On August 9         6, ETI and OCI signed an Agreemen              Plan of Merger

("Agreement") provil       or the merger of OCI and Degree Merge         , Inc., a Montana

corporation and a dir      holly owned subsidiary of Eschelon Op«        » Company, Inc.,

("OPCO"), which is         anesota Corporation and a direct wholl        ied subsidiary of

ETI. Pursuant to the       ; of the Agreement, Degree Merger Sul         . will be merged

into OCI, with OCI t«      ie surviving corporation of the merger (1     ransaction"). As

a result of the merge       separate corporate existence of Degree       er Sub, Inc. will

cease and OCI shall        inue as the surviving corporation of th       ‘ger as a wholly

owned subsidiary of        ). Thus, following the completion of the      saction, OCI will

be wholly owned by /       ), which will continue to be wholly own        ETI. Closing of

the Transaction is co      ant upon, among other things, receipt 0       »ssary regulatory

approvals from the C       ssion and other Governmental approvals

       Applicants emphasize that the proposed Transaction will be entirely transparent to

customers of OCI. Because of the nature of this merger, the transfer of control will not

result in a change of carrier for any OCI customers. Immediately after consummating the

transaction, OCI will continue to provide the identical end user telecommunications and

other services to the affected customers and will continue to provide these services at the

rates and pursuant to the terms and conditions of service these customers currently receive

from OCI. Any future changes in the rates, terms and conditions of service will be made


consistent with applica~"~ ‘~w. Further, OCI will continue to provide services under the OCI

name. The Transactic        0t expected to result in any discontinuance of service for the

OCI customers.    In si     onsummation of the Transaction will result in no perceivable

changes to OCI‘s custc

III.   PUBLICINT]           T
       The App’licant:      ectfully submit that the Transaction serves the public interest.

After consummation c        Transaction, OCI will continue to operate under its name and

operating authorities       present. The Transaction involves no change in the entity

providing service dit        to customers or the end user services, rates, terms and

conditions of such se       i. All existing tariffs will remain in place. The transfer of

control will be entire      insparent to OCI customers and will not have any adverse

impact on them. The         ‘hange will be in the ultimate ownership of OCI.

       The Applican         ect that the Transaction will increase competition in the

telecommunications :        ‘t by strengthening ETI‘s position as an effective and

multifaceted telecomt       ations carrier and giving them a presence in a new market.

The Transaction will .       ETI to combine its financial, technical and market resources

and expertise with tuau uf OCI, thereby enhancing its ability to provide reliable,

competitively priced services to customers.         By permitting ETI to strengthen its

competitive position the proposed Transaction will make ETI a more financially secure

competitive alternative to the incumbents and promote ETI‘s ability to enter additional

markets, thus expanding competitive choices for customers.

       OCI focuses on delivering reliable, high—quality voice, data and Internet services

to the small and medium business markets. Customers currently served by OCI fall


squarely within ETI‘s market niche and therefore make an ideal fit with ETTI‘s long term

expansion goals.

        Consummation of the proposed Tran              . allow ETI to make its technical,

product development, and service resources             to hg].p support and service OCI

customers. ETI is committed to exceeding               xpectations and understands that

service and support are just as important as            latest technology at competitive

prices. That is why ETI supports its produ             vices with dedicated and skilled

account teams. OCI customers can expéct 1              ‘dicated attention if the proposed

Transaction is consummated.

        The transfer of control of OCI to |            iot result in any anticompetitive

effects. OCI and ETI do not currently provic           n the same markets. The transfer

of control will facilitate ETI‘s entrance              arket currently served by OCI

(Montana).    The combined market share p              . in the interstate, interexchange

market in the relevant markets will not exc            ‘ent. In all instances where OCI

and ETI provide local exchange services, 1             ant local exchange carrier has a

virtual monopoly and this Transaction will             sh the ILEC‘s dominant market

position.    Furthermore, other competitive            3 participants in these markets.

Accordingly, the transfer of control of OCI to ETI will increase, not degrade, the

competitiveness of these markets.

        For each of the foregoing reasons, grant of the proposed transaction is in the

public interest.

IV.     INFORMATION REQUIRED BY SECTION 63.24(e) OF THE RULES

        As required by Section 63.24(e) (2) of the Commission‘s Rules, Applicant

submits the following information:


                                            7.


(a)   Names, addresses and telephone numbers of Applicants:

      Transferee

      Eschelon Telecom, Inc.,
      730 2"" Avenue South, Suite 900
      Minneapolis, MN 55402
      Telephone: (612) 376—4400

      Transferor

      OneEighty Communications, Inc.
      206 North 29th Street
      Billings, MT 59101
      Telephone: (406) 294—4007

(b)   The Government, State, or Territory under the laws of which each of
      the Applicants is organized:

       Applicant                            State of Organization

       Eschelon Telecom, Inc.               Delaware
       OneEighty Communications, Inc.       Montana

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

      Dennis D. Ahblers
      Eschelon Telecom, Inc.
      730 2"" Avenue South, Suite 900
      Minneapolis, MN 55402
      Telephone: (612) 436—6249
      Facsimile: (612) 436—7349
      E—mail: ddabhlers@eschelon.com

      Christopher Dimock
      President and CEO
      OneEighty Communications, Inc.
      206 North 29th Street
      Billings, MT 59101
      Telephone: (406) 294—4006
      Facsimile: (406) 294—4004
      E—mail: ecdimock@oneeighty.com

      With a copy to:

      J. Jeffery Oxley
      Eschelon Telecom, Inc.


                 730 2"" Avenue South, Suite 900
                 Minneapolis, MN 55402
                 Telephone: (612) 436—6692
                 Facsimile: (612) 436—6792
                 E—mail: jjoxley@eschelon.co:

                 Statement as to previous Sec       m 214 authorization:

                        ETI, then knownas A         anced Telecommunications, Inc., received
                 its international authorizatic      to provide resale telecommunications
                 services on August 27, 1995        i ITC—214—19990729—00490, On May 2,
                 2000, the Commission was a         ised by letter of a change in name from
                 Advanced Telecommunicatio           Inc. to Eschelon Telecom, Inc. ETT‘s
                 subsidiaries provide interstate    nd international service pursuant to their
                 parent‘s Section 214 authorizs     m.
                         OCI received its int       ational authorization to provide resale
                 services on June 30, 2004, in ]    > No. ITC—214—20040426—00243.


        (e)      Not applicable.

        (£)      Not applicable.

        (g)      Not applicable.

        (h)      The following persons or           tities hold a 10% or greater direct
                 ownership interest in ETI:

                 Upon consummation of the T1        saction, OCI will become a wholly owned
        subsidiary of OPCO, which in turn is        ie wholly owned subsidiary of ETI. Thus,
        ETI will be the new ultimate parent         poration and indirectly own 100% of the
        equity interest in OCI. ETI is a De         rare corporation with its principal offices
        located at 720 2"" Avenue South,    ite 900, Minneapolis, Minnesota 55402.
        OPCO is a Minnesota Corporation, also located at 720 2"" Avenue South, Suite
        900, Minneapolis, Minnesota 55402 and functions as a holding company. ETI
        and     its   subsidiaries     currently   provide   local   and/or    long    distance
        telecommunications services in the states of Arizona, California, Colorado, Idaho,
        Minnesota, Nevada, New York, Oregon, Utah and Washington.

        The following entity owns a ten percent or greater direct or indirect interest in
OPCO:

        Name:                      Eschelon Telecom, Inc. ("ETT")
        Address:                   730 2"" Avenue South, Suite 900
                                   Minneapolis, Minnesota 55402
        Citizenship:               US — Delaware Corporation
        Principal business:        Provide of local and long distance telecommunications
services


       Percent of ownership: 100%

       None of ETI‘s officers or directors sits on the boards of any foreign
telecommunications carriers.

       The following entities own a ten percent or greater direct or indirect interest in
EN:

(1)    Name:                 Wind Point Partners IV, L.P. ("Wind Point Partners")
       Address:              One Towne Square, Suite 780
                             Southfield, MI 48076
       Citizenship:          US — Delaware LP
       Principal business:   Investments
       Percent of ownership: 16.7 %

       Wind Point Partners IV, L.P., does not have an ownership interest in any
       telecommunications company other than ETI. The Wind Point Partners
       investment in ETI is through three separate funds and multiple limited partners,
       none of whom hold a ten percent or greater ownership interest in ETI under the
       Commission‘s ownership attribution rules. The general partner of Wind Point
       Partners is:

       Name:                   Wind Point Investors IV, L.P. ("Wind Point Investors")
       Address:                One Towne Square, Suite 780
                               Southfield, MI 48076
       Citizenship:            US — Delaware LP
       Principal business:     Investments


       No limited partner of Wind Point Investors holds a ten percent or greater
       ownership interest in ETI under the Commission‘s ownership attribution rules.
       The general partner of Wind Point Investors is:

       Name:                   Wind Point Advisors, LLC ("Wind Point Advisors")
       Address:                One Towne Square, Suite 780
                               Southfield, MI 48076
       Citizenship:            US — Delaware LLC
       Principal business:     Investments


       There is no managing member of Wind Point Advisors and no member of Wind
       Point Advisors has a ten percent or greater ownership interest in ETI under the
       Commission‘s ownership attribution rules.

(2)    Name:                   Bain Capital Fund VI, L.P. ("Bain Capital")
       Address:                111 Huntington Avenue
                               Boston, MA 02199
       Citizenship:            US — Delaware LP

                                            4g.


Principal business:   Investments
Percent of ownership: 20.9%

No limited partner of Bain Capital holds a ten percent or greater ownership
interest in ETI under the Commission‘s ownership attribution rules. The genera
partner of Bain Capital is:

Name:                  Bain Capital Partners VI, L.P. ("Bain Partners")
Address:               111 Huntington Avenue
                       Boston, MA 02199
Citizenship:           US — Delaware LP
Principal business:    Investments

Bain Capital Partners VI, L.P. has a 5.2% ownership interest in one otk
telecommunications company—US LEC Corp. Other Bain entities, who do r
have an ownership interest in ETI, own an additional 7.1% in US LEC Corp. T
LEC Corp. does not provide service in any of the markets served by ETL

No limited partner of Bain Partners holds a ten percent or greater ownerst
interest in ETI under the Commission‘s ownership attribution rules. The Bs
Partners investment in Eschelon is made through ten separate funds with multif
limited partners, none of whomown a ten percent or greater ownership interest
ETI. The general partner of Bain Partners is:

Name:                  Bain Capital Investors, LLC ("Bain Investors")
Address:               111 Huntington Avenue
                       Boston, MA 02199
Citizenship:           US — Delaware LLC
Principal business:    Investments

Bain Investors has no economic interest in Bain Partners. There is no managi
member of Bain Investors and no member of Bain Investors has a ten percent
greater ownership interest in ETI under the Commission‘s ownership attributi
rules.

No other entity will hold a 10% or greater direct or indirect interest in ETL

Following consummation of the proposed Transaction, there will be no
interlocking directorates with any foreign carrier.

(i)     Certification that ETT is not a foreign carrier and is not affiliated with
        a foreign carrier:

        As evidenced by the Signatures to this Application, ETI certifies that
following consummation of the proposed Transaction, ETI will not be a foreign
carrier and will not be affiliated with any foreign carriers. As evidenced by the
signatures to this Application, OCI certifies that following consummation of the


                                    £1{.—


proposed Transaction, OCI will not be a foreign carrier and will not be affiliated
with any foreign carriers.


(J)    Certification that ETI does not intend to provide international
       telecommunications services to a destination country for which any of
       Sections 63.18(j)(1)—(4) of the Commission‘s Rules, 47 C.F.R. §
        63.18(j)(1)—(4) is true.

        As evidenced by the signatures to this Application ETI certifies that it
does not intend to provide international telecommunications services to a
destination country for which any of Sections 63.18(j)(1)—(4) of the Commission‘s
Rules, 47 C.F.R. § 63.18(j)(1)—(4) is true.

(k)    Not applicable (see response to item (J)).

(1)    Not applicable (see response to item (J)).

(m)    Not applicable. ETI qualifies for a presumption of non—dominance under
Section 63.10(a) (1) as it is not a foreign carrier, nor is it affiliated with a foreign
carrier. Following the transaction, ETI and OCI will continue to be presumptively
classified as non—dominant carriers.

(n)     Certification that ETI 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:

        As evidenced by the signatures to this Application, ETI certifies that it has
not agreed to accept special concessions directly or indirectly fromany 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.

See Exhibit B.

(0)     Certifications by Parties that no party to this Application is subject to
        a denial of Federal benefits pursuant to Section 5301 of the Anti—Drug
        Abuse Act of 1988, 21 U.S.C. § 853(a):

       As evidenced by the signatures to this Application, Applicants certify,
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. § 3301), that they are
not subject to a denial of Federal benefits pursuant to Section 5301 of the Anti—
Drug Act of 1988.




                                      13.


       (p)     Streamlined Processing.

               Applicants request streamlined processing of this application pursuant to
       Section 63.12 of the Commission‘s Rules, 47 C.EF.R. § 63.12. This Application is
       eligible for streamlined processing pursuant to Section 63.12 of the Commission‘s
       Rules because: (1) ETI, the transferee, is not affiliated with a foreign carrier; (2)
       ETI is not affiliated with a dominant U.S. carrier; and (3) ETI does not seek
       authority to provide switched basic services over private lines to a country for
       which the Commission has not previously authorized the provision of switched
       services over private lines, and none of the other scenarios outlined in Section
       63.12(c) of the Commission‘s Rules apply. See 47 C.F.R. §§ 63.12(a)—(c).

v.     CONCLUSION

       For the reasons stated above, Applicants respectfully submit that the public

interest, convenience, and necessity would be furthered by a grant of this Application.




                                                   Respectfully submitted,



                                             By:
                                                   Dennis D. Ahlers
                                                   Associate General Counsel
                                                   Eschelon Telecom, Inc.
                                                   730 2"" Avenue South, Suite 900
                                                   Minneapolis, MN 55402
                                                   Telephone: (612) 436—6692
                                                   Facsimile: (612) 436—6792
                                                   E—mail: ddahlers@eschelon.com




                                                   Christopher Dimock
                                                   President and CEO
                                                   OneEighty Communications, Inc.
                                                   206 North 29th Street
                                                   Billings, MT 59101
                                                   Telephone: (406) 294—4006
                                                   Facsimile: (406) 294—4004
                                                   E—mailedimock@oneeighty.com



                                           13—


                                    EXHIBIT A

                 DOMESTIC SUPPLEMENT TO
JOINT INTERNATIONAL AND D _ _ STIC APPLICATION FO                           NSENT
                  TO TRAl     R CONTROL


    Pursuant to 47 C.F.R. § 63.04(b      following information requit        47 C.F.R.
    63.04(a)(6)—(a)(12) is supplied 1    nection with the attached Jo       ternational
    and Domestic Application for C       t to Transfer Control.


    (6)    Description of the tran:      n:

           On August 9, 2006, ETT        JCI signed a Agreement and         of Merger

    ("Agreement") providing for th       rger of OCI and Degree Me          Jub, Inc. a

   Montana corporation and a dire«       »lly owned subsidiary of Esc        Operating

   Company, Inc., ("OPCO®") a N          ota Corporation and a direc        Ily owned

    subsidiary of ETI (the "Transa       ‘). Pursuant to the terms of       «greement,

   Degree Merger Sub. will be 1          d into OCI, with OCI to b           surviving

    corporation of the merger.     A     »sult of the merger, the sey        corporate

    existence of Degree Merger |         will cease and OCI shall ¢         ue as the

    surviving corporation of the me      s a wholly ownedsubsidiary         2CO. Thus

    following the completion of t.. .ransaction, OCI will be whk.u.., owned by

    OPCO, which will continue to be wholly owned by ETL                 Closing of the

    Transaction is contingent upon, among other things, receipt of necessary

   regulatory approvals from the Commission and other Governmental approvals.

           Applicants emphasize that the proposed Transaction will be entirely

   transparent to customers of OCI.      Because of the nature of this merger, the

   transfer of control will not result in a change of carrier for any OCI customers.

    Immediately after consummating the transaction, OCI will continue to provide the


                                        14—


identical    end user telecommunications      and other services to the affected

customers and will continue to provide these services at the rates and pursuant to

the terms       conditions of service these customers currently receive from OCI.

Any futt        anges in the rates, terms and conditions of service will be made

consisten       a applicable law. Further, OCI will continue to provide services

under th        —I name.    The Transaction is not expected to result in any

discontin       : of service for the OCI customers. In sum, consummation of the

Transacti       11 result in no perceivable changes to OCJI‘s customers.

(7)     A       ‘ription of the geographic areas in which the transferor and
        tr      ‘rees offer domestic telecommunications services, and what
        SC      s are provided in each area:

        E       1 its subsidiaries provide local and/or long—distance voice, data,

internet s      »s and business telephone systems in Minnesota, California,

Colorade        ‘ona, , Utah, Nevada, Washington and Oregon, Idaho and New

York. O         »vides resold and facilities—based local, resold long distance, and

data serv       > small and medium—sized businesses and residential customers in

Montana

(8)     A       »ment as to how the Application fits into one or more of the
        presumptive streamlined categories in Section 63.03 or why it is
        otherwise appropriate for streamlined treatment:

        ETI, as transferee, will have less than a 10 percent market share in the

interstate, interexchange market as a result of the transaction and will provide

services exclusively in geographic areas served by a dominant local exchange

carrier that is not a party to this transaction.    Further, neither ETI nor OCI is

dominant with respect to any service. Therefore, this Application is appropriate

for streamlined treatment pursuant to 47 C.F.R. § 63.03(b) (2).


                                      —{5.—


(9)    Identification of all other Commission applications related to the same
       transaction:

       The attached Application for consent to the transfer of control related to

the provision of international telecommunications services is being submitted

herewith.

(10)   _A statement of whether the Applicants are requesting special
       consideration because either party to the transaction is facing
       imminent business failure:

       Applicants do not seek special consideration in this Application.

(11)   Identification of any separately filed waiver requests being sought in
       conjunction with the transaction:

       Applicants do not seek any waivers in conjunction with the transactions

discussed in this Application.

(12)   _A statement showing how grant of the Application will serve the
       public interest, convenience and necessity, including any additional
       information that may be necessary to show the effect of the proposed
       transaction on competition in domestic markets:

       The Applicants respectfully submit that the Transaction serves the public

interest. After consummation of the Transaction, OCI will continue to operate

under its name and operating authorities as at present. The Transaction involves

no change in the entity providing service to customers or the end user services,

rates, terms and conditions of such services. All existing tariffs will remain in

place. The transfer of control will be entirely transparent to customers and will

not have any adverse impact on them. The only change will be in the ultimate

ownership of OCI.

       The Applicants expect that the Transaction will increase competition in

the telecommunications market by strengthening ETI‘s position as an effective

and multifaceted telecommunications carrier. The Transaction will allow ETI to

                                   16—



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Document Modified: 2019-05-25 08:06:59

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