Attachment Attachment 1

This document pretains to ITC-T/C-20130920-00259 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2013092000259_1013318

                                                                                                                                                                                                                                                Execution Version


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

In the Matter of




                                                       Neus! Nuse! Nee ue SNene! Sme! Newe! Nuue! Sune! Sund! SNent! Nent! SNent! Nen! Seut! Nes Nes SNent Sua! Nem! Nen! Seul Neut Suut NSea! Sua! Nuul Neu! Nent! Neut Neur! Neur!
THE RYE TELEPHONE COMPANY
     (FRN 0001615665)

sOUTH    PARK L.L.C.         D/B/A    SOUTH    PARK
TELEPHONE COMPANY
     (FRNOOO05070933)

CABLECO,    LLC     d/b/a         ghVALLEY     LONG
DISTANCE                                                                                                                                                                                                                               WC Docket No.
      (FRN 0007485386)


Section 214 Authorization Holders and Transferors
                                                                                                                                                                                                                                       File No. ITC—
        And


USCONNECT HOLDINGS INC.
    (FRN 0022834212)

       And its subsidiary:

USCONNECT ACQUISITIONS IIL, INC.
    (FRN 0022931331)

Transferees


Joint Application for Transfer of Control of
Section 214 Authorizations for
Domestic and International
Telecommunications Authorizations




                                 JOINT APPLICATION


      The Rye Telephone Company ("RTC"), South Park L.L.C. d/b/a South Park Telephone

Company ("SPTC") and CableCo, LLC d/b/a ghValley Long Distance ("CableCo"), on their


own behalf and behalf of their respective shareholders or members, (jointly, the "214 Holders" or

"Transferors"), and USConnect Holdings Inc. ("USConnect") and its subsidiary USConnect

Acquisitions III, Inc. ("USConnect Acquisitions") (jointly, the "Transferees"), hereby request

approval of the Federal Communications Commission ("Commission") pursuant to Section 214

of the Communications Act of 1934, as amended, 47 U.S.C. §214, and Sections 1.763, 63.03,

63.04, 63.18, and 63.24(e) of the Commission‘s rules, 47 C.F.R. §§1.763, 63.03, 63.04, 63.18,

and 63.24(e), to transfer control of the Section 214 authorizations from the Transferors to the

Transferees. All parties are collectively referred to herein as the "Applicants."

1.     Combined Application to Transfer Control of Domestic and International Section
       214 Authorizations

       Under Section 63.04(b) of the Commission‘s rules, the Applicants are filing a combined

domestic and international application for the transfer of control of the Section 214

authorizations of the Transferors to the Transferees.

       This application qualifies for streamlined processing under applicable rules.

II.    Applicants

       A.      The Rye Telephone Company, Inc.

       RTC is a Colorado corporation whose address is PO Box 19048, 60 Beckwith Drive,

Colorado City, CO 81019. RTC is authorized by the Colorado Public Utilities Commuission to

provide local telephone service as the incumbent local exchange carrier ("ILEC") in three

exchanges in south central Colorado.

       RTC is a wholly owned subsidiary of Corona Holdings, Inc. ("Corona") (a U.S.

corporation under the laws of the state of North Carolina) which, in turn, is a wholly owned

subsidiary of American Broadband Acquisition Corp. III ("ABAC III"), a Delaware corporation


whose address is 60 Beckwith Drive, PO Box 19787, Colorado City, CO 81019. The ownership

and control of ABAC III is provided in Section III, below.

       B.      South Park L.L.C. d/b/a South Park Telephone Company

       SPTC is a Colorado limited liability company. Like RTC, SPTC is a wholly—owned

subsidiary of Corona which, in turn, is a wholly owned subsidiary of ABAC III. Its address is

P.O. Box 19166, Colorado City, CO 8§1019. SPTC is authorized by the Colorado Public Utilities

Commission to provide local telephone service as the incumbent local exchange carrier in a

portion of Park County, Colorado.

       C.      CableCo, LLC d/b/a ghValley Long Distance

       CableCo is a Colorado limited liability company whose address is PO Box 19579,

Colorado City, CO 8§1019. Like RTC and SPTC, CableCo is a wholly—owned subsidiary of

Corona which, in turn, is a wholly owned subsidiary of ABAC III. CableCo has authority from

the Commission to provide interstate and international telecommunications services. CableCo

currently provides interstate and international telecommunications services in and around the

service areas of its affiliates, RTC and SPTC.

       D.      USConnect Holdings Inc.

       USConnect is a Delaware corporation formed on March 4, 2013. Its address is 1000 Elm

Street, Suite 1901, Manchester, NH 03101. USConnect was created to purchase and operate

rural local exchange carriers. The operations and management of the USConnect will be led by

experienced telecommunications executives. In addition, each of USConnect‘s major equity

shareholders is a company, or an affiliate of a company, which has extensive experience in the

telecommunications industry.


       E.      USConnect Acquisitions III, Inc.

       USConnect Acquisitions is a corporation recently formed under Delaware law for the

purpose of acquiring the shares of ABAC III in the transaction described in Section III ofthis

application. Its address is 1000 Elm Street, Suite 1901, Manchester, NH 03101. USConnect

Acquisitions is a wholly—owned subsidiary of USConnect.

III.   Description of the Transaction

       ABAC II, USConnect and USConnect Acquisitions have entered into an Agreement and

Plan of Merger ("Agreement") whereby USConnect Acquisitions will merge with and into

ABAC III, with ABAC III to be the surviving corporation after the merger. As a result, ABAC

III and its subsidiaries will be controlled by USConnect after the merger (the "Transaction").

Consummation of the Transaction is contingent upon receipt of Commission approval and all

other necessary approvals.

       As indicated above, ABAC III is the ultimate 100% owner of RTC, SPTC and CableCo

through an intermediary holding company, Corona, a U.S. corporation organized under the laws

of the state of North Carolina.    The 10% or greater shareholders of Corona are American

Broadband Communications, LLC ("American Broadband") (30% currently) (a U.S. limited

liability company organized under the laws of the State of Delaware) and SSF Partners, LLC

("SSF Partners") (70% currently) (a U.S. limited partnership organized under the laws of the

State of Delaware).‘




‘ As of the closing of the transaction, SSF Partners plans to obtain an additional 10% of the
outstanding common stock of ABAC III, thus reducing American Broadband‘s currently non—
controlling ownership interest in ABAC III to 20% and increasing SSF Partners‘ existing
controlling interest to 80%.


           American Broadband‘s only 10% or greater shareholder is the Estate of Patrick L. Eudy

(the "Estate")." SSF Partners understands that Ms. Jane R. Eudy is the Personal Representative

of the Estate and a U.S. citizen.



> The Estate is also the indirect 10% or greater owner of the following telecommunications
carriers operating in discrete areas of the United States that are outside of the State of Kansas and
Georgia: (a) Arlington Telephone Company, a Nebraska corporation and ILEC, that provides
local exchange and exchange access services in and around Arlington, Nebraska; (b) The Blair
Telephone Company, a Nebraska corporation and ILEC, that provides local exchange and
exchange access services in and around Blair, Kennard and Fort Calhoun, Nebraska; (c) Eastern
Nebraska Telephone Company, a Nebraska corporation and ILEC, that provides local exchange
and exchange access services in and around Walthill, Macy, Winnebago, Rosalie, Osmond,
Meadow Grove, Carroll and Belden, Nebraska; (d) Rock County Telephone Company, a
Nebraska corporation and ILEC, that provides local exchange and exchange access services in
and around Bassett and Newport, Nebraska; (e) HunTel Cablevision d/b/a HunTel
Communications, a Nebraska corporation and CLEC, that provides local exchange and exchange
access services in and around Lyons, Oakland and Tekamah, Nebraska, and is also an
interexchange carrier ("IXC") that resells interstate interexchange and international long distance
services throughout the Nebraska areas served by the above—listed affiliated Nebraska ILECs; (£)
Holway Telephone Company, a Missouri corporation and ILEC, that provides local exchange
and exchange access services in and around Maitland, Missouri; (g) K.L.M. Telephone
Company, a Missouri corporation and ILEC, that provides local exchange and exchange access
services in and around Rich Hill, Missouri; (g) Holway Long Distance Company, a Missouri
corporation and IXC that resells interstate interexchange and international long distance services
in and around Maitland, Missounri; (h) KLM Long Distance Company, a Missouri corporation
and IXC that resells interstate interexchange and international long distance services in and
around Rich Hill, Missouri; (1) Interior Telephone Company, an Alaska corporation and ILEC,
that provides local exchange and exchange access services in Alaska; (j) Mukluk Telephone
Company, Inc., an Alaska corporation and ILEC, that provides local exchange and exchange
access services in Alaska; (k) TelAlaska Long Distance, Inc., an Alaska corporation that resells
interstate interexchange and international long distance services; (1) TelAlaska Cellular, Inc., an
Alaska corporation that provides mobile voice and data services in Alaska, and is the licensee of
Cellular Radio Service Stations WQIQ306, Alaska Rural Service Area 2 — Bethel (Cellular
Market Area 316) and WQIQ308, Alaska Rural Service Area 1 — Wade (Cellular Market Area
315); (m) Cameron Communications, LLC ("Cameron Communications"), a Louisiana limited
liability company that resells interstate interexchange and international long distance services
under the trade name of Cameron Long Distance in the ILEC and CLEC exchanges served by
Cameron Telephone Company, LLC ("Cameron Telephone"), Elizabeth Telephone Company,
L.L.C. ("Elizabeth") and LBH, L.L.C ("LBH") in Cameron, Allen, Vernon, Rapides and
Beauregard Parishes in southwestern Louisiana, and in Jefferson, Chambers, Liberty and
Galveston Counties in southeastern Texas; (n) Cameron Telephone, a Louisiana limited liability
company and ILEC that provides local exchange telephone and exchange access services in the
Cameron, Carlyss, Creole, Grand Chenier, Hackberry, Holly Beach and Johnson Bayou
(continued on next page)


       The 10% or greater owners of SSF Partners as follow:

       SSF Partners, LLC

                                                   %                            Principal
                                                   Equity        Citizenship     Business

              ZM Private Equity Fund II, L.P.      99%           USA            Investments

              ZM Private Equity Fund II, L.P.

                                                    %o                          Principal
                                                   Equity        Citizenship     Business

                     Pantheon Global Secondary
                            Fund III "A", LP.  31.3%              Scotland      Investment
                     Lexington Partners VI
                            Holdings, L.P.     22.3%              Delaware      Investment
                     Pantheon Global Secondary
                             Fund III "B", L.P.    14.5%          Delaware      Investment
                      Pomona Capital VII, L.P.     10.2%          Delaware      Investment

No entity or person that owns an interest in any of the Funds that comprise ZM Private Equity

Fund II, L.P. ("ZM") has a derivative ownership that would result in a 10% interest or greater

ownership interest in ZM and, ultimately the applicants involved in this application. With the

agreement of ZM Private Equity Fund II, L.P., the authority to oversee and control the day—to—


exchanges in Cameron and Calcasieu Parishes in southwestern Louisiana and also provides local
exchange telephone and exchange access services in the Nome and High Island exchanges in
Jefferson, Chambers, Liberty and Galveston counties in southeastern Texas; (0) Elizabeth, a
Louisiana limited liability company and ILEC that provides local exchange telephone and
exchange access services in the Elizabeth, Pitkin and Sugartown exchanges in Allen, Vernon,
Rapides and Beauregard Parishes in southwestern Louisiana; (p) LBH, a Louisiana limited
liability company that provides broadband voice, video and data services as a CLEC in Grand
Lake and Sweetlake in Cameron Parish, and in Moss Bluff in Calceasieu Parish, in southwestern
Louisiana. In addition, the Estate indirectly has a greater than 10% ownership interest in the
following telecommunications carriers: (a) Dialog Telecommunications, Inc., which provides
voice and data services as a CLEC in Kentucky, Mississippi and North Carolina; (b) Acorn
Telephone LLC, which provides voice and data services as a CLEC in Kentucky; (c) AMA
Communications LLC, which provides voice and data services, resold interstate interexchange
and international long distance services, as a CLEC in Texas; and (d) Mesa Broadband, LLC,
which is the licensee of 3650—3700 MHz Service station WQKW948.


day management and operations of SSF Partners, LLC will be delegated to SSF Advisors, LLC.

        SSF Advisors, LLC

                                                     %                             Principal
                                                     Equity         Citizenship     Business
                       Timothy P. Bradley            36.84%         USA            Investments

                       Alfred J. Puchala, Jr.        36.84%         USA            Investments

                       Charles T. Lake, II           18.42%         USA            Investments

The foregoing reflects all general partnership interests and all 10% or more derivative equity

interests in ABAC III. *




‘ Affiliates of American Broadband and SSF Advisors, LLC also are affiliated with other
entities with ownership in other telecommunications carriers operating in discrete areas of the
United States including: Gridley Telephone Company ("Gridley) (a small rural ILEC operating
in the State of Illinois); Gridley Communications, Inc. (a resale interexchange carrier offering
interstate interexchange and international resold long distance services in and around the service
area of Gridley); S&A Telephone Company, Inc. ("S&A") (a small rural ILEC operating in the
State of Kansas), S&A Communications, Inc. d/b/a S&A Long Distance (a resale interexchange
carrier offering interstate interexchange and international resold long distance services in and
around the service area of S&A), Waverly Hall Telephone Company, L.L.C. ("WHT")(a small
rural ILEC operating in the State of Georgia), Waverly Hall Communications, Inc. (a resale
interexchange carrier offering interstate interexchange and international resold long distance
services in and around the service area of WHT); Georgetown Telephone Company, Inc.
("Georgetown"), a rural ILEC in the State of Mississippi that also through a separate operating
division provides resold interstate interexchange and, operating under authority of its parent
company, American Georgetown, Inc., international long distance services in and around the
areas served by Georgetown); Oregon Farmers Mutual Telephone Company, a rural ILEC in the
State of Missouri; and Oregon Farmers Mutual Long Distance, Inc. (a reseller of interstate
interexchange and international long distance services in and around the area served by Oregon
Farmers; Zenda Telephone Company, Inc. ("Zenda") (a rural ILEC operating in the State of
Kansas); West Side Telecommunications ("West Side") (a rural ILEC operating in the State of
West Virginia); Miller Telephone Co. (Miller") (a rural ILEC operating in the State of Missouri);
Tel—Atlantic Communications, Inc. (which, through various dba‘s provides resold interstate
interexchange and international long distance services in and around the service areas of Zenda,
West Side, and Miller); Dalton Telephone Company, Inc. (a small rural ILEC operating in the
State of Nebraska ("DTC"), Elsie Communications, Inc. ("ECI") (a small rural ILEC operating
in the State of Nebraska), and Dalton Telecommunications, Inc. (a reseller of interstate
interexchange and, operating under the authority ofits parent company, Newcastle Holdings,
Inc., international long distance services in and around the service areas of DTC and ECI.


       Following closing (1) US Connect intends to continue to operate RTC and SPTC as

ILECs serving their same respective exchanges, and using in their operations the same respective

assets, as each of the companies did prior to the closing and (2) CableCo will continue to operate

as a provider of resold interstate interexchange and international services in and around the

service areas of RTC and SPTC.

       IV.     Public Interest Statement

       The Transaction furthers the public interest, convenience and necessity. RTC was

founded in 1959 after Robert and Maxine MacCormack made a proposal to acquire the Farmers

Mutual Cooperative in Rye, CO. The proposal stated if the MacCormacks could successfully

build a new telephone network, install a switch, and provide telephone service to every home

within one year, the telephone system would become theirs. If they could not accomplish the

tasks within the proposal the system would remain with the Cooperative. The community agreed

and the improvements were successfully implemented. Today, RTC has a serving area of

approximately 1,800 square miles with over 2,000 subscribers.     RTC utilizes a state—of—the—art

fiber optic network and offers an abundance of products and services for subscribers‘

telecommunications needs.

       SPTC was established in 1996 by the MacCormack Family as means to provide

telephone service to an unserved region of central Colorado. Due to the diverse terrain, sparsely

populated area, and lack of commercial power, SPTC deployed a unique wireless technology

along with a solar power platform that enabled the SPTC to offer telephone service to South Park

and surrounding areas. Today, SPTC has one full time employee (relying on employees of RTC

as needed) to serve approximately 170 customers over approximately 600 square miles and

provides a suite of communication services.


        CableCo offers resold interstate interexchange and international services in and around

the service areas of RTC and SPTC.

           USConnect possesses the requisite financial and managerial resources to maintain, and

improve, the services provided by all of the 214 Holders.

        A.       Continued Provision of High—Quality Service is Ensured

        Following the Transaction, US Connect plans to continue to operate RTC and SPTC as

ILECs providing local exchange service to their respective customers, and CableCo will continue

to provide resold interstate interexchange and international service to its customers. Further,

USConnect will bring greater financial resources to all of the 214 Holders.

        Customers will be notified of the transaction as required by the applicable state and

federal laws and regulations.

       B.        No Anti—Competitive Issues are Present

       The Transaction does not present any anti—competitive issues. CableCo‘s total market

share, combined with that of equity owners of USConnect, is less than ten percent (10%) of the

interstate interexchange and international telecommunications markets. There remain other

interexchange carriers operating in the Colorado areas where the 214 Holders will continue to

market its services.

       In summary, the Transaction has no potential to harm the public interest and is expected

to preserve and increase competition in the domestic and international telecommunications

markets.


V.     Information Required by Section 63.24(e) of the Commission‘s Rules for a Transfer
       of Control Section 214 Authorizations

       In furtherance of this application the Applicants submit the specific information pursuant

to Section 63.24(e) of the Commission‘s rules. The following paragraphs refer to Sections (a)

through (d), and (h) through (p), of Section 63.18.

       (a)     Name, address and telephone number of Applicants:

               214 Holders:

               The Rye Telephone Company
               PO Box 19048, 60 Beckwith Drive
               Colorado City, CO 81019
               Attn: David Shipley, General Manager
               Tel: 719—676—3131

               South Park L.L.C, d/b/a South Park Telephone Company
               P.O. Box 19166
               Colorado City, CO 81019
               Attn: David Shipley, General Manager
               Tel: 719—676.4151

               CableCo, LLC d/b/a ghValley Long Distance
               PO Box 19579
               Colorado City, CO 81019
               Attention: David Shipley, General Manager
               Tel: 719—676—3131

               Transferees:

               USConnect Holdings Inc.
               US Connect Acquisitions III, Inc.

               1000 Elm Street, Suite 1901
               Manchester, NH 03101
               Attn: William E. King
               Tel: (603) 622—0379

       (b)     RTC is a corporation organized under the laws of Colorado. SPTC is a limited

liability corporation organized under the laws of Colorado. CableCo is a limited liability

company organized under the laws of Colorado. USConnect Holdings, Inc. is a corporation



                                                10


organized under the laws of Delaware. USConnect Acquisitions III, Inc. is a corporation

organized under the laws of Delaware.

       (c)    Correspondence concerning this application should be sent to:

              For the 214 Holders and Transferors:

              The Rye Telephone Company
              PO Box 19048, 60 Beckwith Drive
              Colorado City, CO 81019
              Attn: David Shipley, General Manager

              South Park L.L.C. d/b/a South Park Telephone Company
              P.O. Box 19166
              Colorado City, CO 81019
              Attn: David Shipley, General Manager

              CableCo, LLC d/b/a ghValley Long Distance
              PO Box 19579
              Colorado City, CO 81019
              Attention: David Shipley, General Manager

              With copies to:

              Charles T. Lake, II
              c/o SSF Advisors, LLC
              805 Third Avenue, Suite 1202 New York, NY 10022
              Tel: 646—580—3195
              E—mail: CLake@signal—equity.com

              Thomas J. Moorman, Esq.
              Woods & Aitken, LLP
              2154 Wisconsin Avenue, NW, Suite 200
              Washington, DC 20007
              Tel: 202—944—9502
              E—mail: tmoorman@woodsaitken.com

              For the Transferees:

              USConnect Holdings Inc.
              1000 Elm Street, Suite 1901
              Manchester, NH 03101
              Attn: William E. King
              Tel: (603) 622—0379
              E—mail: bking@jsicapital.com



                                              11


                With copies to:

                Sheehan Phinney Bass + Green PA
                1000 Elm Street
                Manchester, NH 03101
                Attn: Michael J. Drooff, Esq.
                Tel: (603) 627—8167
                E—mail: mdroff@sheehan.com

                David L. Nace, Esq.
                Lukas, Nace, Gutierrez & Sachs, LLP
                8300 Greensboro Drive, Suite 1200
                McLean, VA 22102
               Tel: 703—584—8661
               Email: dnace@fceclaw.com

        (d)     (i) CableCo provides international telecommunications under Section 214

authorization for global resale, File No. ITC—214—20040609—00224. (See also File Nos. ITC—

T/C—20060113—00041, ITC—T/C—20061107—00508 and ITC—T/C—20090116—00031 which

authorized various transfers of control of CableCo.) RTC and SPTC hold blanket domestic

Section 214 authority to provide domestic telecommunications services.

               (ii) Neither of the Transferees currently provides telecommunications services

and neither holds any Section 214 authorization. USConnect is the authorized transferee of

control of Livingston Telephone Company and Telcom Supply, Inc. in WC Docket 13—186 and

File No. ITC—T/C—20130719—00191.

       (h) As described above, USConnect owns 100% of USConnect Acquisitions. The

following entities and individuals will hold a ten percent (10%) or greater attributable interest in

USConnect when the Transaction closes. The preferred stock shareholders of USConnect, as a

group, will hold 90% of the voting power. All five preferred stockholders of USConnect are

local exchange carriers or affiliated with a local exchange carrier. None of the service territories

of those five stockholders (or affiliates) adjoins or overlaps the local exchange service territories



                                                  12


of RTC or SPTC. Attached as Exhibit B is a list of county areas served in full or in part by the

five preferred stockholders as well as their service area maps. Neither does Livingston Telephone

Company, a Texas local exchange carrier and a company to be acquired by USConnect pursuant

to Commission authorization, have a local exchange service territory that adjoins or overlaps the

local exchange service territories of RTC or SPTC.

               (1)     Brazoria Telephone Company ("Brazoria") will own 19.2857% of the

preferred stock of USConnect and have a 17.357% voting interest in USConnect. Brazoria is a

corporation organized in the state of Texas, and its address is PO Box 2008, Brazoria, TX 77422—

2008, Attention John H. Greenberg, President and Manager (Telephone: 979—798—2121).

Brazoria‘s principal business is telecommunications. There are no ownership interests in

Brazoria of a level that require disclosure in order to comply with Section 63.04(a)(4) or Section

63.18(h) of the Commission‘s rules.

               (i1)    Dickey Rural Telephone Cooperative, Inc. ("Dickey") will own 19.2857%

of the preferred stock of USConnect and have a 17.357% voting interest in USConnect. Dickey

is a corporation organized in the state of North Dakota, and its address is Box 69, Ellendale, ND

58436—0069, Attention Robert Johnson, General Manager (Telephone: 701—344—5000). Dickey‘s

principal business is telecommunications. Dickey is a cooperative in which no stockholder owns

or votes as much as a one percent interest.

               (iii)   __FTC Management Group, Inc. ("FTC") will own 19.2857% of the

preferred stock of USConnect and have a 17.357% voting interest in USConnect. FTC is a

corporation organized in the state of South Carolina, and its address is PO Box 588, Kingstree,

SC 29556—0588, Attention Brad Erwin, CEO (Telephone: 843—382—2333). FTC‘s principal

business is communications. FTC is a wholly owned subsidiary of Farmers Telephone




                                                13


Cooperative, Inc., a South Carolina corporation with the same address as FTC. Farmers

Telephone Cooperative, Inc. is a cooperative in which no stockholder owns or votes as much as a

one percent interest.

               (iv)     Golden West Telecommunications Cooperative, Inc. ("Golden West")

will own 19.2857% of the preferred stock of USConnect and have a 17.357% voting interest in

USConnect. Golden West is a corporation organized in the state of South Dakota, and its

address is PO Box 411, Wall, SD 57790—0411, Attention Denny Law, General Manager

(Telephone: 605—279—2161). Golden West‘s principal business is telecommunications. Golden

West is a cooperative in which no stockholder owns or votes as much as a one percent interest.

               (v)      Horry Telephone Cooperative, Inc. ("Horry") will own 19.2857% of the

preferred stock of USConnect and have a 17.357% voting interest in USConnect. Horry is a

corporation organized in the state of South Carolina, and its address is PO Box 1820, Conway,

SC 29528—1820, Attention Michael Hagg, CEO (Telephone: $43—365—2151). Horry‘s principal

business is telecommunications. Horry is a cooperative in which no stockholder owns or votes as

much as a one percent interest.

       In addition to preferred stock issued by USConnect there will be common stock whose

holders will have 10% of the voting power. While no common stockholder will hold as much as

a 10% interest in USConnect, Leo Staurulakis and Manny Staurulakis, who are brothers

principally engaged in the telecommunications consulting business, each own 1/3 of the common

stock of USConnect, and jointly own MLStar, LLC, a limited liability company organized in

Virginia, that will own 3.6% of the preferred stock of USConnect. Both are United States

citizens with the following business address: 7852 Walker Drive, Suite 200, Greenbelt, MD

20770 (Telephone: 301—459—7590). Leo Staurulakis and Manny Staurulakis do not own any other




                                               14


telecommunications entities, either individually or jointly except to the extent either may from

time to time hold small, non—controlling interests in public companies engaged in

telecommunications and to the extent both are stockholders of USConnect which is the

authorized or proposed transferee of control of the various telecommunications companies that

are not parties to this application: Livingston Telephone Company and its subsidiary Telcom

Supply, Inc.; and other telecommunications carriers that are subject to companion transactions.*

        Section 63.18(h) also calls for disclosure of any interlocking directorates with a foreign

carrier. Transferees and their affiliates have no interlocking directorates with a foreign carrier.

        (i)     Section 63.18(i) calls for a certification as to whether or not the applicant is, or is

affiliated with, a foreign carrier. Transferees hereby certify that neither is a foreign carrier and

neither is affiliated with a foreign carrier.

        (j) Section 63.18() calls for a certification as to whether or not the applicant seeks to

provide international telecommunications services to any destination country for which any of

the following is true:

                (1) The applicant is a foreign carrier in that country. Transferees hereby certify

that neither is a foreign carrier in any destination country.

                 (2) The applicant controls a foreign carrier in that country. Transferees hereby

certify that neither controls a foreign carrier in any destination country.




* As noted in Section V(d)(ii) of this application, USConnect is the transferee of control of
Livingston Telephone Company and Telcom Supply, Inc. in WC Docket 13—186 and File No.
ITC—T/C—20130719—00191. USConnect has also entered into an agreement to acquire control of
S&A Telephone Company, Inc., S&A Communications, Inc. d/b/a S&A Long Distance in
Kansas, and Waverly Hall Telephone Company, L.L.C., Waverly Hall Communications, Inc. in
Georgia, for which applications for Commission approval will be filed in the near future.




                                                  15


                (3) Any entity that owns more than 25 percent of the applicant, or that controls the

applicant, controls a foreign carrier in that country. Transferees hereby certify that no entity that

controls a foreign carrier in any destination country owns more than 25 percent of either of the

Transferees.

                (4) Two or more foreign carriers (or parties that control foreign carriers) own, in

the aggregate, more than 25 percent of the applicant and are parties to, or the beneficiaries of, a

contractual relation (e.g., a joint venture or market alliance) affecting the provision or marketing

of international basic telecommunications services in the United States. Transferees hereby

certify that the foregoing statement is not true as relating to each Transferee.

        (k)     Section 63.18(k) calls for one of certain showings by the applicant for any

destination country listed by the applicant in response to paragraph (j). Based upon Transferees‘

certifications in response to Section 63.18(j), no showing is required of Transferees in response

to Section 63.18(j).

        (1)     In response to Section 63.18(1), Transferees do not propose to resell the

international switched services of an unaffiliated U.S. carrier for the purpose of providing

international telecommunications services to a country where it is a foreign carrier or is affiliated

with a foreign carrier.

        (m)    Transferees hereby respond to Section 63.10(m) by confirming that neither is a

foreign carrier, and neither is affiliated with a foreign carrier. Transferees satisfy the

requirements of Section 63.10(a)(1) to be presumptively classified as "non—dominant" for the

provision of international communications services.

       (n)     Transferees certify that neither has agreed to accept special concessions directly

or indirectly from any foreign carrier with respect to any U.S. international route where the




                                                  16


foreign carrier possesses market power on the foreign end of the route and will not enter into

such agreements in the future.

        (0)     With reference to §§ 1.2001 through 1.2003 of the Commission‘s rules,

Applicants certify that no party to the application is subject to a denial of Federal benefits

pursuant to Section 5301 of the Anti—Drug Abuse Act of 1988. See 21 U.S.C. 853a.

        (p)     Applicants request streamlined processing of this application pursuant to Section

63.03(b)(2)(1ii) of the Commission‘s Rules. Consummation of the proposed transaction would

result in a market share in the interstate, interexchange market of less than 10% among

Transferees and their affiliates. Similarly, the local exchange affiliates and subsidiaries of

Transferees would have, collectively, fewer than 2% of the subscriber lines installed in the

aggregate nationwide. Finally, the transaction would result in no new overlapping or adjacent

local service areas.

VI.     Additional Information Required by Section 63.04(b) of the Commission‘s Rules or
        Assignment/Transfer of Control

        In response to requirements of Section 63.04(b) of the Commission‘s rules, the additional

information required by Sections 63.04(a)(6) through 63.04(a)(12) is provided in Exhibit A to

this application.

VII.    Conclusion

        In view of the foregoing, Applicants respectfully submit that the public interest,

convenience and necessity would be furthered by grant of this application.




                                                 17


Respectfully submitted,

THE RYE TELEPHONE COMPANY
on its own behalf and on behalf of its shareholder

By: é‘(/r:f’fi4
     Charles T.Lake, II, Treasurer

Date:      ?// ?1/[ 3.

SOUTH PARK L.L.C. d/b/a SOUTH PARK
TELEPHONE COMPANY
on its own behalf and on behalf of its member



By: %7                           4
        Charles T.   Lake, II, Treasurer

Date:          7 // 9 /_2

CABLECO, LLC d/b/a ghVALLEY LONG
DISTANCE
on its own behalf and on behalf of its member

By: e2 &A
        Charles T. Lake, II, Treasurer

Date:          ‘7//? //-?


USCONNECT HOLDINGS, INC.

By:
        William E. King, President

Date:



USCONNECT ACQUISITIONS III, INC.

By:
        William E. King, President

Date:




          18


Respectfully submitted,

THE RYE TELEPHONE COMPANY
on its own behalf and on behalf of its shareholder

By:
        Charles T. Lake, II, Treasurer

Date:

SOUTH PARK L.L.C. d/b/a SOUTH PARK
TELEPHONE COMPANY
on its own behalf and on behalf of its member


By:
        Charles T. Lake, II, Treasurer

Date:

CABLECO, LLC d/b/a ghVALLEY LONG
DISTANCE
on its own behalf and on behalf of its member

By:
        Charles T. Lake, II, Treasurer




        William E. Kirg,President        _/

Date:      SAAr      19   2e3




          illiam E. King, PreSsident     _/
           JaAr 137 £a3




          18


                                            Exhibit A

               Information Required by Sections 63.04(a)(6) through 63.04(a)(12)

       Pursuant to Section 63.04(b) of the Commission‘s rules, Applicants provide the following
information in connection with the proposed transfer of control:

§63.04(a)(6) — Description of the Transaction

       The Transaction is summarized in Section III of the Application.

§63.04(a)(7) — Description of the Geographic Service Area and Services in Each Area

       Descriptions of the geographic service areas and the services provided in each area are
       provided in Section II.A. and Section II.B. of the Application.

§63.04(a)(8) — Presumption of Non—Dominance and Qualification for Streamlining

       Applicants request streamlined processing of this application. See Section V(p) above.

§63.04(a)(9) — Other Pending Commission Applications Concerning the Subject Transaction


       (1)     In separate applications filed on the appropriate FCC Form, Applicants request
               consent to transfer control of the following licenses:

               RTC, Telephone Maintenance Service, Call Sign KNGA688
               RTC, Common Carrier Point to Point Microwave Service, Call Sign WLV821
               RTC, Common Carrier Point to Point Microwave Service, Call Sign WQBJ319
               RTC, 3.65 GHZ point—to—multipoint microwave registration, Call Sign WQLX351
               SPTC, 3.65 GHZ point—to—multipoint microwave registration, Call Sign
                     WQLXxX353


       (2)     In separate Section 214 applications to be filed in the near future, Transferees will
               request domestic and international transfer of control authorizations as noted in
               footnote 4, supra, page 15.

§63.04(a)(10) — Special Considerations

       None

§63.04(a)(11) — Waiver Requests

° In addition to the licenses noted herein, CableCo holds a receive—only earth station registration,
Call Sign E020312, that is subject to post—consummation notification to the Commission.



                                                 19


       None

§63.04(a)(12) — Public Interest Statement

       The Transaction is in the public interest for the reasons stated in Section IV of the
       Application.




                                                20


EXHIBIT B


Telco                                        Counties Served   State   Coverage

Brazoria Telephone Company
                                             Brazoria          TX       Partial

Dickey Rural Telephone Cooperative
                                             Barnes            ND       Partial
                                             Cass              ND       Partial
                                             Dickey            ND       Partial
                                             LaMoure           ND       Partial
                                             Logan             ND       Partial
                                             Mcintosh          ND       Partial
                                             Ransom            ND       Partial
                                             Sargent           ND       Partial
                                             Stutsman          ND       Partial
                                             Brown             SD       Partial
                                             Marshall          SD       Partial
                                             McPherson         SD       Partial

Farmers Telecommunications Cooperative
                                             Lee               SC       Partial
                                             Sumter            SC       Partial
                                             Clarendon         SC       Partial
                                             Florence          SC       Partial
                                             Wiliamsburg       SC       Partial
                                             Georgetown        SC       Partial


Golden West Telecommunications Cooperative
                                             Boyd              NE       Partial
                                             Dawes             NE       Partial
                                             Keya Paha         NE       Partial
                                             Sheridan          NE       Partial
                                             Sioux             NE       Partial
                                             Aurora            SD       Partial
                                             Bennett           SD       Partial
                                             Bon Homme         SD       Partial
                                             Charles Mix       SD       Partial
                                             Custer            SD       Partial
                                             Douglas           SD       Partial
                                             Fall River        SD        Full
                                             Gregory           SD       Partial
                                             Haakon            SD        Full
                                             Hutchinson        SD        Full
                                             Jackson           SD         Full
                                             Jones             SD         Full
                                             Lyman             SD       Partial
                                             McCook            SD       Partial
                                             Meade             SD       Partial
                                             Mellette          SD        Full
                                             Minnehaha         SD       Partial
                                             Moody             SD       Partial
                                             Pennington        SD       Partial
                                             Perkins           SD       Partial
                                             Shannon           SD       Partial
                                             Stanley           SD       Partial
                                             Todd              SD       Partial
                                             Tripp             SD         Full
                                             Turner            SD       Partial
                                             Yankton           sD       Partial
                                             Niobrara          WY       Partial


Horry Telephone Cooperative
                                             Georgetown        SC       Partial
                                             Horry             SC       Partial
                                             Marion            SC       Partial




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Document Created: 2013-09-20 11:18:38
Document Modified: 2013-09-20 11:18:38

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