Attachment App Attachment

This document pretains to ITC-T/C-20110711-00196 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2011071100196_905725

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


In the Matter of




                                                            Nu! Nes Neae! Nee Nee Nes Nes Nn Nus!
ITusatel USA, Inc.                                                                                  File No. ITC—T/C—2011

Joint Application Pursuant to Section 214 of the
Communications Act of 1934, as amended,
and Section 63.24 of the Commission‘s Rules
for Approval of the Transfer of Control of an
International Section 214 Authorization


        JOINT APPLICATION FOR APPROVAL OF A TRANSFER OF CONTROL

1.       INTRODUCTION

         A.      Summary of Transaction

         Total Play Telecomunicaciones, S.A. de C.V. f/k/a Tusatel, S.A. de C.V. ("Transferor" or

"Total Play"), Corporativo Vasco de Quiroga, S.A. de C.V. ("Transferee" or "CVQ"), and

ITusatel USA, Inc. ("Licensee" or "Iusatel USA") (collectively "Applicants"), by their

undersigned attorneys and pursuant to Section 214 of the Communications Act of 1934 (the

"Act‘), as amended, 47 U.S.C. § 214, and Section 63.24 of the Commission‘s rules, 47 C.F.R. §

63.24, hereby respectfully seek approval to transfer control of Iusatel USA.‘

         Although the proposed transaction will result in a change in the ultimate control of Iusatel

USA, no assignment of authorizations, assets, or customers will occur as a consequence of the

proposed transaction.      Iusatel USA will continue to provide service to its existing customers

pursuant to its authorization under the same rates, terms and conditions.                                            Accordingly, this

transaction will be transparent to the customers of Iusatel USA.



!        Tusate] USA holds international Section 214 authority under File No. ITC—214—19960923—00459.



A/74155419.3


         B.     Request for Streamlined Processing

         Applicants respectfully submit that this Application is eligible for presumptive

streamlined processing pursuant to Section 63.12(c)(1)(i) and (i1i) of the Commission‘s rules. Total

Play is a non—dominant telecommunications carrier in Mexico, which provides cable television,

Internet access, long distance and fixed local telephony services. CVQ is a subsidiary of Grupo

Televisa S.A.B. ("Grupo Televisa"), which is the largest media company in Latin America. Grupo

Televisa is the controlling shareholder of (A) Cablevision S.A. de C.V. ("Cablevision"), which

provides cable television, Internet access and fixed local telephony services in Mexico and (B)

Operbes, S.A. de C.V. ("Operbes") and (C) Bestphone, S.A. de C.V. ("Bestphone" and together

with Operbes collectively "Bestel"), a competitive Mexican telecommunications company offering

Internet access, long distance services and local telephony services primarily to other carriers,

resellers and high volume users in Mexico and the United States. Grupo Televisa does not have

telecommunications operations in any countries other than Mexico and the United States.

         Therefore, at the conclusion of this transaction, Iusatel USA will be affiliated with four non—

dominant competitive carriers in Mexico. The FCC has already found Total Play to be a non—

dominant carrier at the time it granted Iusatel USA‘s initial section 214 authorization, FCC File No.

ITC—214—19960923—00459, and determined to regulate Iusatel USA as non—dominant on the U.S.—

Mexico route. In addition, as competitive service providers, Cablevision and Bestel do not have

more than 50% of the domestic or international telecommunications market in Mexico, and

therefore are presumptively considered to be non—dominant service providers pursuant to Section

63.10(a)(3) of the Commission‘s Rules, 47 C.F.R. § 63.10(a)(3). Therefore, Iusatel USA will

continue to qualify for a presumption of non—dominance with respect to its foreign carrier




A/TAIS5419.3                                      L2 _


affiliations under Section 63.10(a)(3) of the Commission‘s Rules, 47 C.F.R. § 63.10(a)(3), and this

application therefore qualifies for streamlined processing under Section 63.12(c)(1)(i) and (ii).

         In support of this Application, Applicants also provide the following information:

II.      DESCRIPTION OF THE APPLICANTS

         A.     Total Play Telecomunicaciones, S.A. de C.V. (Transferor)

         Total Play is a company formed under the laws of Mexico. Total Play is a competitive

provider of cable television, Internet access, long distance and fixed local telephony services in

Mexico.

         B.     Corporativo Vasco de Quiroga, S.A. de C.V. (Transferee)

         CVQ is a holding company formed under the laws of Mexico. CVQ is a subsidiary of

Grupo Televisa. Grupo Televisa, is the largest media company in the Spanish—speaking world

based on market capitalization and a major participant in the international entertainment

business. It has interests in television production and broadcasting, production of pay television

networks, international distribution of television programming, direct—to—home satellite services,

cable television and telecommunication services, publishing and publishing distribution, radio

production and broadcasting, professional sports and live entertainment, feature film production

and distribution, gaming, and the operation of a horizontal Internet portal.

Bestel (USA), Inc. ("Bestel (USA)"), an indirect subsidiary of Grupo Televisa holds Section 214

authority issued by the Commission."

         C.     Iusatel USA, Inc. (Licensee)

         Tusatel USA, a wholly—owned subsidiary of Total Play, holds international section 214

authority to provide facilities—based and resold international services pursuant to FCC File No.



2        FCC File No. ITC—214—19970804—00457.



A/74155419.3                                     — 3 L


ITC—214—19960923—00459. Tusatel USA solely provides cross—border services to U.S. carriers at

several locations along the U.S.—Mexico border, including international voice and data services.

III.     DESCRIPTION OF THE PROPOSED TRANSACTION (Answer to Question 13)

         The transfer of Iusatel USA is a small part of a larger transaction through which CVQ is

also acquiring 50% equity interest in Total Play. The transaction entails the acquisition by CVQ

of the trust beneficiary rights to 1.093875% of the outstanding shares of stock of GSF Telecom

Holdings, S.A.P.I. de C.V. ("GSF"), which indirectly owns 100% of the outstanding shares of

stock of Total Play, and the acquisition of unsecured convertible debentures issued by GSF,

mandatorily convertible into shares of stock of GSF, which, together with the shares underlying

the aforementioned trust beneficiary rights, represent 50% (fifty percent) of the outstanding

shares of stock of GSF and indirectly 50% interest in Tusatel USA (the "Transaction"). The

Transaction is governed by Mexican law and is expected to close in the second half of 2011. For

the Commission‘s convenience, pre— and post—closing organization illustrative charts are

provided as Exhibit A.

IV.      PUBLIC INTEREST CONSIDERATION®S

         Applicants submit that the transaction will serve the public interest because it will strengthen

Tusatel USA‘s ability to offer competitive cross—border services to Mexico. Moreover, the change

in ownership of Tusatel USA will not have any adverse impact on existing customers. Iusatel

USA will continue to possess the managerial and technical qualifications to provide international

telecommunications services. Because the Transaction will be completed at the holding

company level and will not change the rates, terms or conditions of Iusatel USA‘s services, the

Transaction will not result in a change of service provider for Iusatel USA‘s customers and will

otherwise be transparent to customers of Iusatel USA receiving services in the United States.




A/1AL55419.3                                      —4_


Immediately following consummation of the Transaction, Iusatel USA will continue to provide

high—quality international telecommunications services to its customers without interruption and

without immediate change in rates, terms or conditions.

         At the same time, a grant of the application would not result in any anticompetitive

effects. For these reasons, Applicants respectfully submit that this Transaction is in the public

interest.

v.       INFORMATION REQUIRED BY SECTION 63.24(e)

         Pursuant to Section 63.24(e) of the Commission‘s rules, in support of this Application

Applicants submit the following information from Section 63.18(a)—(d)(h) for the Transferor and

the Transferee, and from Section 63.18(i)—(p) for the Transferee:

Section 63.18 (Transferor and Transferee) —

         (a)    Name, address and telephone number of Transferor, Transferee and Licensee:

                Transferor:    Total Play Telecomunicaciones, S.A. de C.V.
                               Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
                               Tel: 011 (52—55) 5109—4400
                               Fax: 011 (52—55) 5109—5941
                               FRN: 0021004494

                Transferee:    Corporativo Vasco de Quiroga, S.A. de C.V.
                               Av. Vasco de Quiroga No. 2000
                               Colonia Santa Fe
                               Mexico City, 01210
                               Mexico
                               Tel: 011 (52—55) 5261—2000
                               Fax: 011 (52—55) 5261 —2494
                               FRN: 0021004528




A/74155419.3                                    — 5 .L


               Licensee:       ITusatel USA, Inc.
                               Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
                               Tel: 011 (52—55) 5109—5794
                               Fax: 011 (52—55) 5109—5941
                               FRN: 0007453806

         (b)   Place of Formation:

               Transferor:     Total Play Telecomunicaciones, S.A. de C.V. is a corporation
                               organized under the laws of Mexico.

               Transferee:     Corporativo Vasco de Quiroga, S.A. de C.V. is a corporation
                               organized under the laws of Mexico.

               Licensee:       Tusatel USA, Inc. is a corporation organized under the laws of the
                               State of Delaware.

         (c)   (Answer to Question 10) Correspondence concerning this Application should be
               sent to:


               To CVQ:
               Luis Mancera
               General Counsel Telecommunications
               Av. Vasco de Quiroga No. 2000
               Colonia Santa Fe
               Mexico City, 01210
               Mexico
               Tel: 011 (52—55) 5261—3192
               Imancera@televisa.com.mx

               To Total Play and Iusatel USA to:

               Carlos Hirsch
               Regulatory Director
               Montes Urales No. 460
               Primer Piso
               Colonia Lomas de Chapultepec
               Mexico City, 11000
               Mexico
               Tel: 011 (52—55) 5109—5794
               chirsch@iusacell.com.mx




A/74155419.3


                  In all cases with a copy to:

                  Ulises R. Pin
                  Nguyen T. Vu
                  Bingham McCutchen LLP
                  2020 K Street, NW
                  Washington, DC 20006
                  Tel: (202) 373—6000
                  Fax: (202) 373—6001
                  u.pin@bingham.com

         (d)      Transferor:      Total Play Telecomunicaciones, S.A. de C.V. has not received
                                   authority under Section 214 of the Act.

                  Transferee:       Corporativo Vasco de Quiroga, S.A. de C.V. has not received
                                   authority under Section 214 of the Act."

                  Licensees:       Tusatel USA, Inc. provides international facilities—based and resale
                                   telecommunications services pursuant to FCC File No. ITC—214—
                                   19960923—00459.

         (h)      (Answer to Questions 11 & 12)

                  Ownership Information:

                  Please see Exhibit B attached hereto.

                  Interlocking Directorates:

                  CVQ has no interlocking directorates to report:

         Section 63.18 (Transferee) —

         (i)      (Answer to Question 14) Foreign Carrier Affiliations:

                  Pursuant to Section 63.18(i) of the Commission‘s Rules, Corporativo Vasco de
                  Quiroga S.A. de C.V. certifies that as of the closing of the Transaction, it will be
                  affiliated with the following foreign carriers:

                  Operbes, S.A. de C.V. (Mexico)
                  Bestphone, S.A. de C.V. (Mexico)
                  Cablevision S.A., de C.V. (Mexico)


3        As noted above, an affiliate of CVQ, Bestel (USA), has received international Section 214 authority from
the Commission.



A/74155419.3                                           — * —


               Total Play Telecomunicaciones, S.A. de C.V (Mexico)

         (Answer to Question 15)


         )     CVQ certifies that Iusatel USA will provide international telecommunications
               services to Mexico where CVQ is affiliated with four foreign carriers within that
               country.

         (k)   CVQ certifies that Mexico is a Member of the World Trade Organization
               ("WTO") and that at the close of the Transaction, Iusatel USA‘s foreign affiliates
               will lack market power in Mexico.

         (1)   CVQ hereby certifies that, through Tusatel USA, it may at times resell the
               international switched services of an unaffiliated U.S. carrier for the purposes of
               providing international telecommunications services.

         (m)   CVQ hereby certifies that each ofits foreign affiliates have less than a fifty
               percent share in the international transport and the local access markets on the
               foreign end and, therefore, CVQ‘s foreign affiliates should be presumptively
               classified as non—dominant carriers pursuant to Section 63.10(a)(3) of the
               Commission‘s Rules.

         (n)   Applicants certify that neither they nor any of their licensed subsidiaries have
               agreed to accept special concessions, as defined in Section 63.14(b) of the
               Commission‘s Rules, directly or indirectly from any foreign carrier, as defined in
               Section 63.09(d) of the Commission‘s Rules, with respect to any U.S.
               international route where the foreign carrier possesses sufficient market power on
               the foreign end of the route to affect competition adversely in the U.S. market,
               and that they will not enter into such agreements in the future.

         (0)   Applicants certify that neither they nor any of their licensed subsidiaries are
               subject to a denial of Federal benefits pursuant to Section 5301 of the Anti—Drug
               Abuse Act of 1988.

         (P)   This Application qualifies for streamlined processing pursuant to Section
               63.12(c)(1)(i) and (ii) of the Commission‘s Rules, as set forth in Section 1.(B)
               above.




A/7A155419.3


VII.     CONCLUSION

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

convenience, and necessity would be furthered by grant of this Application for consent to the

transfer of control of Iusatel USA, Inc., a holder of international section 214 authority.

                                              Respectfully submi




                                              Ulises R. Pin
                                              Nguyen T. Vu
                                              Bingham McCutchen LLP
                                              2020 K Street, NW
                                              Washington, D.C. 20006
                                              (202) 373—6000 (Tel)
                                              (202) 373—6001 (Fax)

                                              Counsel to Applicants


Dated: July 11, 2011




A/74155419.3                                    — 9 _


                                EXHIBIT A

               PRE— AND POST—CLOSING ORGANIZATIONAL CHARTS




A/74155419.3


               Pre—Transaction Ownership Structure




                       Grupo Salinas Telecom,
                             S.A. de C.V.


                                     100%

                       GSF Telecom Holdings,
                           S.A.P.I de C.V.


                                     100%

                        Orilizo Holdings, B.V.



                                     100%

                           Grupo Iusacell,
                            S.A. de C.V.


                                     100%

                       Grupo Iusacell Celular,
                             S.A de C.V.


                                     100%

                             Total Play
                        Telecomunicaciones,
                            S.A. de C.V.

                                     100%

                          Tusatel USA, Inc.
                              (Licensee)




A/7A428217.1


                              Post—Transaction Ownership Structure

                                                                       Grupo Televisa, S.A.B.



                                                                                    100%

        Grupo Salinas Telecom,                                         Corporativo Vasco de
               S.A. de C.V.                                            Quiroga, S.A. de C.V.




                                 50%                             50%

                                       GSF Telecom Holdings,
                                          S.A.P.I. de C.V.


                                                      100%

                                        Orilizo Holdings B.V.



                                                      100%

                                           Grupo Iusacell,
                                            S.A. de C.V.


                                                      100%

                                       Grupo Iusacell Celular,
                                            S.A de C.V.


                                                      100%

                                             Total Play
                                        Telecomunicaciones,
                                            S.A. de C.V.

                                                      100%

                                          ITusatel USA, Inc.
                                              (Licensee)




A/74428218.1


                                          EXHIBIT B

                               OWNERSHIP INFORMATION


As of the date of the closing of the Transaction, the 10% or greater direct shareholders of
Licensee, Iusatel USA, Inc. will be:

         Name:                 Total Play Telecomunicaciones, S.A. de C.V. ("Total Play")
         Address:              Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
         Ownership:            100%
         Citizenship:          Mexico
         Principal Business:   Telecommunications

The following entity will hold an indirect ten percent (10%) or greater equity or controlling
interest in Licensee through its ownership in Total Play:

         Name:                 Grupo Iusacell Celular, S.A. de C.V. ("GIC")
         Address:              Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
         Ownership:            100%
         Citizenship:          Mexico
         Principal Business:   Holding Company

The following entity will hold an indirect ten percent (10%) or greater equity or controlling
interest in Licensee through its ownership in GHIC:

         Name:                 Grupo Iusacell, S.A. de C.V. ("GI")
         Address:              Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
         Ownership:            100%
         Citizenship:          Mexico
         Principal Business:   Holding Company




A/74155419.3


The following entity will hold an indirect ten percent (10%) or greater equity or controlling
interest in Licensee through its ownership in GI:

         Name:                 Orilizo Holdings B.V. ("Orilizo")
         Address:              Amteldijk 166
                               1079, LH, Amsterdam
                               The Netherlands
         Ownership:            100%
         Citizenship:          Netherlands
         Principal Business:   Holding Company

The following entity will hold an indirect ten percent (10%) or greater equity or controlling
interest in Licensee through its ownership in Orilizo:

         Name:                 GSF Telecom Holdings, S.A.P. I. de C.V. ("GSF")
         Address:              Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
         Ownership:            100%
         Citizenship:          Mexico
         Principal Business:   Holding Company

The following entities will hold an indirect ten percent (10%) or greater equity or controlling
interest in Licensee through their ownership in GSF:

         Name:                 Grupo Salinas Telecom, S.A. de C.V. ("Grupo Salinas Telecom")
         Address:              Montes Urales No. 460
                               Primer Piso
                               Colonia Lomas de Chapultepec
                               Mexico City, 11000
                               Mexico
         Ownership:            50%
         Citizenship:          Mexico
         Principal Business:   Holding Company

         Name:                 Corporativo Vasco de Quiroga, S.A. de C.V. ("CVQ")
         Address:              Av. Vasco de Quiroga No. 2000
                               Colonia Santa Fe
                               Mexico City, 01210
                               Mexico
         Ownership:            100%
         Citizenship:          Mexico
         Principal Business:   Holding Company




A/74155419.3


        The following person will hold an indirect ten percent (10%) or greater equity or
controlling interest in Licensee through its ownership of Grupo Salinas Telecom:

         Name:                     Ricardo Benjamin Salinas Pliego
         Address:                  Periférico Sur 4119
                                   Colonia Fuentes del Pedregal
                                   Mexico City, 14141
                                   Mexico
         Ownership:                69.54%
         Citizenship:              Mexico
         Principal Business:       Retailing, Telecommunications and Media

No other person or entity will hold a 10% or greater indirect interest in Licensee through an
ownership interest in Grupo Salinas Telecom.

        The following entity will hold an indirect ten percent (10%) or greater equity or
controlling interest in Licensee through its ownership in CVQ:

         Name:                     Grupo Televisa S.A.B. ("Grupo Televisa")
         Address:                  Av. Vasco de Quiroga No. 2000
                                   Colonia Santa Fe
                                   Mexico City, 01210
                                   Mexico
         Ownership:                100%
         Citizenship:              Mexico
         Principal Business:       Media Investments

       Grupo Televisa‘s shares are publicly traded on the Mexican and New York stock
exchanges. Grupo Televisa‘s shareholding is widely held and the only 10% or greater
shareholder is Mr. Emilio Fernando Azcarraga Jean, a Mexican national with the same address
as Grupo Televisa. Mr. Azcarraga beneficially owns approximately 15.25% of Grupo
Televisa‘s outstanding shares.‘ Other than Mr. Azcarraga, there are no 10% or greater owners
of Grupo Televisa. No other person or entity will hold a 10% or greater indirect interest in
Licensee through an ownership interest in Grupo Televisa.




         Mr. Azcarraga‘s ownership in Grupo Televisa is held through a series of trusts in Mexico.



A/74155419.3


               CERTIFICATIONS




A/74155419.3


                                       CERTIFICATION


         We, Fernando J. Cabrera and Carlos Ferreiro Rivas, each a legal representative of Total
Play Telecomunicaciones, S.A. de C.V. ("Total Play"), hereby certify under penalty of perjury
that we are authorized to make this Certification on behalf of Total Play, and Tusatel USA, Inc.
the Transferor and Licensee, respectively, in the foregoing application. We further certify that
the information in the foregoing application as it pertains to the Transferor and Licensee is true
and accurate to the best of my knowledge, and that neither the Transferor nor the Licensee 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 amended.




                                            \N\aflme: Fernando J. Cabrera
                                                Title: Legal Representative



                                                     BANameso _(
                                                  Name: Carlos Ferreiro Rivas
                                                  Title: Legal Representative

                                                  Date: July 6, 2011




A/T41$5419.2


                                       CERTIMCATION


         We, José Antonio Lara del Olmo and Jorge Lutteroth Echegoyen, each a legal
representative of Corporativo Vasco de Quiroga, S.A. de C.V. ("CVYQ"), hereby certify under
‘penalty of perjury that we amauthorized to make this Certification on behalf of CVQ, the
Transferee in the foregoing application. We further certify that the information in the
foregoing application as it pertains to the Transferee is true and accurate to the best of our
knowledge, and that the Transferee is not 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 amended.




                                                          «fifi
                                                  Name: José     Afitonio Lara del Olmo
                                                  Title: Legal Representative




                                                                   \WieaL
                                                  Name: Jorge Lutteroth Echegoyen
                                                  Title: Legal Representative


                                                  Date: July 6, 2011




Al14155419,2



Document Created: 2011-07-11 12:20:55
Document Modified: 2011-07-11 12:20:55

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