Attachment Attachment

This document pretains to ITC-T/C-20130606-00173 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2013060600173_999593

                                              ATTACHMENT 1

    Application to Transfer Control of Allstream Fiber US, Inc. to 8312168 Canada, Inc.

                                      Description of the Transaction.

This application seeks consent of the Commission for the transfer of control of the International
214 authorization held by Allstream Fiber US, Inc. ("Allstream Fiber"), a Delaware corpomtion,l

         from MTS Inc. ("Transferor"), a Canadian corporation and an indirect subsidiary of
         Manitoba Telecom Services Inc. ("Manitoba Telecom"), an incumbent local exchange
         telephone company in Manitoba, Canada,

         to 8312168 Canada, Inc.("Transferee"), a Canadian corporation and a subsidiary of
         Accelero Capital Investments Holdings, S.a.1.1. (Luxembourg) ("Accelero Capital
         Investments").

Allstream Fiber is also a licensee of the AmeriCan—1 cable, which is operated on a non—common
carrier basis between the United States and Canada. A separate application seeking Commission
consent to transfer control of Allstream Fiber‘s interest in the AmeriCan—1 cable is being
submitted concurrently with this application. Upon grant of these applications, the parties will
effectuate the transfer of control by the delivery of the stock of Allstream Fiber by Transferor to
Transferee. Allstream Fiber does not provide domestic interstate services and does not hold a
domestic Section 214 authorization.

The transfer of control of Allstream Fiber is part of a larger transaction by which Manitoba
Telecom is also selling its interest in Allstream Inc. ("Allstream") and its Allstream business to
Accelero Capital Investments. Allstream, headquartered in Toronto, Canada, is a
communications network connectivity and solutions provider for Canadian businesses that,
among other things, provides fiber network coverage across Canada. The operations of
Allstream Fiber form a small part of the overall Allstream business and the only portion of the
Allstream business involving authorizations issued by the Commission.

The Transferee is a subsidiary of Accelero Capital Investments, an investment and management
group focused on telecommunications, digital media, and technology. As a result of the
transaction, Allstream will become a stronger competitor to incumbent telephone companies in
Canada in the provision of services in Canada‘s enterprise market.
                    /
                                          Public Interest Benefits.

As a result of the proposed transaction, Alistream Fiber and the related Allstream business would
receive an infusion of capital from Accelero Capital Investments, and Alistream Fiber would
become a separate and additional competitorin its market, no longer operated by and affiliated

‘ On May 31, 2013, a proforma application was filed to reflect the assignment of the Section 214 authorization to
Allstream Fiber from Allstream Fiber‘s current parent corporation, MTS Allstream Holdings Inc. See File No. ITC—
ASG—INTR2013—01160.


with Manitoba Telecom, the incumbent telephone carrier in Manitoba, Canada. Although
Allstream does not currently provide any common carrier services in the United States, transfer
of control of the Allstream Fiber Section 214 authorization will enhance Allstream‘s flexibility
in the provision of services, will be transparent to customers now receiving service, and will
benefit competition in the international telecommunications market.

                          Information Required by Section 63.24(e)

Pursuant to Section 63.24(e) of the Commission‘s rules," the Applicants submit the following
information requested in 63.18(a)—(d) of the Commission‘s rules and the Transferee submits the
following information requested in Section 63.18(h)—(p) of the Commission‘s rules in support of
the Application.

    (a) Name, address and telephone number of each Applicant:

          Transferor:         MTS Inc.
                              c/o Teresa Griffin—Muir
                              Vice President, Regulatory Affairs
                              Allstream Inc.
                              45 O‘Connor Street, Suite 1400
                              Ottawa, Ontario, Canada KIP 1A4
                              Telephone: 613—688—8789
                              Fax: 613—688—8303
                              Email: Teresa.Griffin—Muir@mtsallstream.com

          Transferee:         8312168 Canada, Inc., Ossama Bessada, President
                              c/o Accelero Capital Holdings S.a.1.1.
                              65 Boulevard Grande Duchesse Charlotte
                              L1331 Luxembourg
                              Telephone: +1 (647) 389—3337
                              Email: Ossama.bessada@accelerocapital.com

         Licensee:            Allstream Fiber US, Inc.
                              c/o Teresa Griffin—Muir
                              Vice President, Regulatory Affairs
                              Allstream Inc.
                              45 O‘Connor Street, Suite 1400
                              Ottawa, Ontario, Canada KIP 1A4
                              Telephone: 613—688—8789
                              Fax: 613—688—8303
                              Email: Teresa.Griffin—Muir@mtsallstream.com




247 C.FR. § 63.24(c).


(b) Government, state or territory under the laws of which each corporate or partnership
Applicant is organized:

        Transferor:    MTS Inc. (Canada)

        Transferee:    8312168 Canada Inc. (Canada)

        Licensee:      Allstream Fiber US, Inc. (DFE)

(c) Name, title, post office address, and telephone number of the officer or contact point of
each Applicant to whom correspondence concerning the Joint Application is to be
addressed. (Answer to Question 10):

Contact Information for This Submission

Transferor and Licensee                                   Transferee
MTS Inc. and Alistream Fiber US, Inc.                     8312168 Canada, Inc.
c/o Teresa Griffin—Muir                                   clo Ossama Bessada, President
Vice President, Regulatory Affairs                        Accelero Capital Holdings S.a.r.1.
Allstream Inc.                                            65 Boulevard Grande Duchesse Charlotte
45 O‘Connor Street, Suite 1400                            L1331 Luxembourg
Oftawa, Ontario, Canada KIP 1A4                           Telephone: +1 (647) 389—3337
Telephone: 613—688—8789                                   Email: Ossama.bessada@accelerocapital.com
Fax: 613—688—8303
Email: Teresa.Griffin—Muir@mtsalistream.com

With a copy to:                                           With a copy to:
Lawrence J. Movshin                                       John S. Logan
Jennifer L. Kostyu                                        J.G .Harrington
Wilkinson Barker Knauer, LLP                              Michael Pryor
2300 N Street, N.W., Suite 700                            Dow Lohnes PLLC
Washington, D.C. 20037                                    1200 New Hampshire Avenue, N.W.
Telephone: 202—783—4141                                   Washington, D.C. 20036
Fax: 202—783—5851                                         Telephone: (202) 776—2640
Imovshin@wbklaw.com                                       Fax: (202) 776—2222
jkostyu@wbklaw.com                                        jlogan@dowlohnes.com
                                                          jharrington@dowlohnes.com
                                                          mpryor@dowlohnes.com




(d) Statement as to whether the Applicants have previously received authority under
Section 214 of the Act. (Answer to Question 10)

        Allstream Fiber holds the international Section 214 authorization thatis the subject of
this application (File No. ITC—214—19981207—00852).


       Transferee holds no prior International Section 214 authorizations.

(h) Name, address, citizenship and principal business of any person or entity that directly
or indirectly owns at least ten percent of the equity of the Transferee and identification of
any interlocking directorates (Answer to Questions 11 and 12);


       After consummation of the Transaction, all of the issued and outstanding shares of the
       licensee, Allstream Fiber, will be held by the Transferee, 8312168 Canada, Inc., a wholly
       owned subsidiary of Accelero Capital Investments Holdings, S.a.r.1. ("Accelero Capital
       Investments"), a Luxembourg limited lfability company. Accelero Capital Investments,
       in turn, is a wholly owned subsidiary of Accelero Capital Holdings, S.a.1.l. ("Accelero
       Capital Holdings"), also a Luxembourg limited lfability company.

       The following entities and persons have a 10% or greater ownership interest in Accelero
       Capital Holdings:

       Company Name                Orascom TMT Investments S.a.r.l.
      Address                      1, boulevard de la Foire L—1528 Luxembourg
      Jurisdiction of Formation    Luxembourg
      Principal Business           Holding Company
      Interest                     20.0%

      Orascom TMT Investments S.a.1.1. is a wholly owned holding company for investments
      of The Marchmont Trust, a Jersey family trust for the benefit of the Sawiris family. The
      Marchmont Trust owns Orascom TMT Investments S.a.r.1. through two wholly owned
      Cayman Island companies: Marchmont Limited, which is the 100% owner of Marchco
      Holding Limited, which, in turn, is the 100% owner of Orascom TMT Investments S.a.1.1.
      The trustee of the Marchmont Trust is February Private Trust Company, a Jersey trustee
      company of which Ms. Yousriya Nassif Loza is the settlor. Ms. Loza also is a
      discretionary beneficiary of the February Private Trust Company, along with the
      International Federation of Red Cross and Red Crescent Societies.

      Company Name                Khaled Bishara
      Citizenship                 Egypt
      Principal Business          Managing Partner, Accelero Capital
      Interest                    16.2%


        Company Name                 Pezou S.a.r.L.
        Address                      40, Holland Park, London, W11 3RP, United
                                     Kingdom
       Jurisdiction of Formation     Luxembourg
       Principal Business            Investments
       Interest                      16.2%

       Pezou S.a.r.l. is 100% owned and controlled by Mr. Rodolphe Aldo Mario Mareuse, a
       citizen of France residing in the United Kingdom. Mr. Mareuse is a Managing Partner of
       Accelero Capital.

       Company Name                  Panda Investments
       Address                       C/o UBS Trustees (Singapore) Ltd., 1 Raffles
                                     Quay, #50—01 North Tower, Singapore
                                     048583
       Jurisdiction of Formation     Singapore
       Principal Business            Private Family Trust
       Interest                      14.2%

       Panda Investments is a trust for the sole benefit of Ossama Bessada, a citizen of Egypt
       residing in Canada. Mr. Bessada is a Managing Partner of Accelero Capital. The trustee
       is UBS Trustees (Singapore) Ltd., an indirect subsidiary of UBS AG, a public traded
       banking and financial services company.

There are no other individuals or entities that hold a 10% or greater direct or indirect equity or
voting interest in Accelero Capital Holdings.

Mr. Ossama Bessada and Mr. Rodolphe Aldo Mario Mareuse sit on the board of directors of
WIS Telecom S$.p.A. Mr. Mareuse, in addition, sits on the board of directors of Keyyo Societe
Anonyme Francais. Transferee does not anticipate that there will be any additional interlocking
directorates with carriers other than the commonly owned Allstream and its subsidiaries
following the consummation of the proposed transaction.

(i) Certification as to whether or not Transferee is, or is affiliated with, a foreign carrier
(Answer to Question 14):

Upon consummation of the proposed transaction, the Transferee will be affiliated with
Allstream, a Canadian competitive provider of business services to enterprises within Canada,
which will, upon consummation of the associated sale of stock, become a wholly owned
subsidiary of Transferee.

Following consummation of that associated transaction, Allstream no longer will be controlled
by or affiliated with Manitoba Telecom, the incumbent telephone company in Manitoba, Canada.


(j—k) Certification as to whether or not Transferee seeks to provide international
telecommunications services to any country for which certain conditions are true (Answers
to Questions 15 and 18):

As a licensee of the AmeriCan—1 submarine cable, Allstream Fiber will provide non—common
carrier international services to Canada, a WTO member country, in which Transferee‘s affiliate,
Alistream, provides telecommunications.

(m) Regulatory classification under Section 63.10 of the Rules for foreign—affiliated carrier.
(Answer to Question 16)

Alistream Fiber qualifies for non—dominant treatment for the provision of international services
to Canada because its affiliated foreign carrier, Allstream, lacks 50 percent market share in the
international transport and local access markets on the foreign end of the route. Allstream is not
included on the Commission‘s List of Foreign Telecommunications Carriers that Are Presumed
to Possess Market Power in Foreign Telecommunications Markets. Following the
consummation of the proposed transaction, Allstream no longer will be affiliated with Manitoba
Telecom.

(n) Certification that Transferee has not agreed to accept special concessions directly or
indirectly from any foreign carrier.

The Transferee certifies thatit 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.

(0) Certification by Transferee pursuant to 47 C.F.R. §§ 1.2001—1.2003 that no party to the
Joint Application is subject to denial of federal benefits pursuant to Section 5301 of the
Anti—Drug Abuse Act of 1988, 21 U.S.C. § 583

Transferee hereby certifies that to the best ofits knowledge, information, and belief, no party to
this Joint Application is subject to denial of federal benefits pursuant to Section 5301 of the Anti—
Drug Abuse Act of 1988, 21 U.S.C. § 583 and 47 C.F.R. §§ 1.2001—1.2003.

(p) Qualification for streamlined processing.

This application qualifies for streamlined processing pursuant to Section 63.10(a)(3) of the
Commission‘s rules because neither Transferee nor Allstream Fiber will be affiliated with a
dominant foreign carrier. As a result of the transaction, Allstream Fiber and its sister corporation
Allstream will no longer be affiliated with Manitoba Telecom. The sole foreign carrier
affiliation of Transferee and Allstream Fiber will be with Allstream, which, post—transaction, will
be a non—dominant carrier in Canada with no other carrier affiliations.


* List ofForeign Telecommunications Carriers that are Presumed to Possess Market Power in
Foreign Telecommunications Markets, Public Notice, 22 FCC Red 945 (2007).

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Document Created: 2013-06-06 18:44:17
Document Modified: 2013-06-06 18:44:17

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