Attachment Attachment 1

This document pretains to ITC-T/C-20130927-00270 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2013092700270_1013942

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

In the Matter of




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AMERICAN BROADBAND ACQUISITION CORP.
     (FRN 0014483325)
S&A TELEPHONE COMPANY, INC.
     (FRN 0002329662)

S&A COMMUNICATIONS, INC. d/b/a S&A¥ LONG
DISTANCE (FRN 0015987969)
                                                                                                                                                                                                         WC Docket No.
WAVERLY HALL TELEPHONE, L.L.C.
     (FRN 0004333043)

WAVERLY HALL COMMUNICATIONS, INC.
     (FRN 0015987985)                                                                                                                                                                                    File No. ITC—

Section 214 Authorization Holders and Transferors

        And

USCONNECT HOLDINGS INC.
    (FRN 0022834212)

      And its subsidiary:

USCONNECT ACQUISITTIONS II, INC.
    (FRN 0022931307)

Transferees

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


                               JOINT APPLICATION


       American Broadband Acquisition Corp. ("ABAC"),‘ S&A Telephone Company, Inc.

("S&A Telephone"), S&A Communications, Inc. d/b/a S&A Long Distance ("S&A

Communications"), Waverly Hall Telephone, L.L.C. ("WHT") and Waverly Hall

Communications, Inc. ("WHC"), 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 II, 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

Section 214 authorizations from the Transferors to the Transferees and to assign international

Section 214 authorization held by ABAC to USConnect. 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.




‘ As explained further herein, ABAC is the holder of the international Section 214 global resale
authorization under which S&A Communications, Inc. provides international service, and,
therefore, ABAC will be the assignor of such authorization under the transaction described
herein.


IJ.    Applicants

       A.      S&A Telephone Company, Inc.

       S&A Telephone is a Kansas corporation whose address is 413 Main Street, PO Box 68,

Allen, KS 66833—0068. S&A Telephone is authorized by the Kansas Corporation Commission

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

exchanges in Lyon and Osage Counties in Kansas and serves approximately 611 access lines.

       S&A Telephone is a wholly owned subsidiary of ABAC whose address is 60 Beckwith

Drive, PO Box 19787, Colorado City, CO 81019. The ownership and control of ABAC is

provided in Section III, below

       B.      S&A Communications, Inc. d/b/a S&A Long Distance

       S&A Communications is a corporation organized under the laws of North Carolina. Its

address is 413 Main Street, PO Box 68, Allen, KS 66833—0068. S&A Communications is

operating under authority from the Commission to provide interstate interexchange and

international telecommunications services. S&A Communications currently provides interstate

interexchange and international telecommunications services in and around the area served by its

affiliate, S&A Telephone. S&A Communications is a wholly owned subsidiary of ABAC.

       C.     Waverly Hall Telephone, L.L.C.

       WHT is a Georgia limited liability company whose address is 7457 Highway 208, PO

Box 100, Waverly Hall, GA 31831. WHT is authorized by the Georgia Public Service

Commission to provide local telephone service as the ILEC in certain exchanges in Harris and

Talbot Counties in Georgia and serves approximately 1,193 access lines. WHT is wholly owned

by ABAC.


       D.      Waverly Hall Communications, Inc.

       WHC is a corporation organized under the laws of North Carolina. Its address is 7457

Highway 208, PO Box 100, Waverly Hall, GA 31831. WHC has authority from the Commission

to provide interstate interexchange and international telecommunications services. WHC

currently provides interstate interexchange and international telecommunications services in and

around the area served by its affiliate, WHT. WHC is a wholly owned subsidiary of ABAC.

       E.      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.

       F.     USConnect Acquisitions II, Inc.

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

purpose of acquiring the shares or membership interests of S&A Telephone, S&A

Communications, WHT and WHC in the transaction described in Section III of this 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, USConnect and USConnect Acquisitions have entered into a Master Equity and

Asset Purchase Agreement ("Agreement") whereby USConnect Acquisitions will acquire from

ABAC all of the outstanding capital stock of S&A Telephone, all of the outstanding capital stock


of S&A Communications, the entire membership interest in WHT, and all of the outstanding

capital stock of WHC (the "Transaction"). Consummation of the Transaction is contingent upon

receipt of Commission approval and all other necessary regulatory approvals.

         As indicated above, ABAC is the 100% owner of S&A Telephone, S&A

Communications, WHT and WHC.* ABAC is 100% owned by ABB Holdco, Inc. ("Holdco"), a

U.S. corporation organized under the laws of the State of Delaware. The 10% or greater

shareholders of Holdco will be American Broadband Communications, LLC ("American

Broadband") (20%) (a U.S. limited liability company organized under the laws of the State of

Delaware) and Signal Equity Partners II, L.P. ("Signal") (41.50%) (a U.S. limited partnership

organized under the laws of the State of Delaware) and SM Investors II, L.P. ("SMI—II") (a U.S.

Limited Partnership organized under the laws of the State of Delaware engaged in investments)

(12%).

         Signal controls Holdco as Signal is able to designate and has designated the majority of

the Board of Directors of Holdco. This control, in turn, has allowed Signal to designate those

individuals that oversee the day—to—day operations of S&A Telephone, S&A Communications,

WHT and WHC.




> ABAC is also the 100% owner of Gridley Telephone Company ("Gridley) (a small rural ILEC
operating in the State of Illinois) and Gridley Communications, Inc. (a resale interexchange
carrier offering interstate interexchange and international resold long distance services in and
around the service area of Gridley).
* To facilitate closing, American Broadband‘s current non—controlling interest in Holdco will be
reduced from 49% to the referenced 20% above and distributed among the remaining
shareholders of Holdco. The control of Holdco remains in SEP—II with its ownership interest
increasing from its current 26.4% to the referenced 41.5%. The discussion of ownership that
follows reflects this re—allocation of these otherwise non—controlling common stock interests
within Holdco.


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

(the "Estate")." Signal 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; (f)
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, Missouri; (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; (i) Interior Telephone Company, an Alaska corporation and ILEC,
that provides local exchange and exchange access services in Alaska; (jJ) 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 only entity in Signal with successive multiplied interests of 10% or greater in S&A

Telephone, S&A Communications, WHT, and WHCI is Garden House, LLC (a U.S. limited

liability company organized under the laws of the State of Delaware and whose principal

business is investment), which owns a 58.9% limited partnership in Signal. Garden House, LLC},

in turn, is owned 95% by Eliot Nolen, a U.S. citizen and investor. At the same time, however,

Signal‘s operations are controlled by its General Partner, Signal Equity Advisors, II, LLC ("SEA

II"). SEA—II owns a 2.94 percent interest in Signal. SEA—II owners of 10% or greater are each

citizens of the United States and are Timothy P. Bradley (22.3%); Alfred J. Puchala, Jr. (22.3%);

Christopher Nolen (19.6%); Malcom C. Nolen (19.6%) and Charles T. Lake II (11.2%)." There



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, andin Moss Bluff in Calcasieu 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; and (c) AMA
Communications LLC, which provides voice and data services, resold interstate interexchange
and international long distance services, as a CLEC in Texas.
° Affiliates of American Broadband and SEA—II also are affiliated with other entities with
ownership in other telecommunications carriers operating in discrete areas of the United States
including: The Rye Telephone Company ("Rye") (a small rural ILEC operating in the State of
Colorado); South Park L.L.C. d/b/a South Park Telephone Company ("South Park") (a small
rural ILEC operating in a distinct other area in the State of Colorado from Rye); CableCo, LLC
d/b/a ghValley Long Distance (a resale interexchange carrier offering interstate interexchange
and international resold long distance services in and around the service areas of both Rye and
South Park); 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 ofits 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
(continued on next page)


are no owners of SMI —II with successive multiplied interests of 10% or greater in S&A

Telephone, S&A Communications, WHT, and WHCI. SMI—II is controlled by S. Muoio & Co.

LLC ("SMC"), a U.S. limited liability company, organized under the laws of the State of

Delaware. SMC is controlled and operated by Salvatore Muoio, who is a U. S. citizen."

       Following closing (1) S&A Telephone and WHT will continue to operate as ILECs

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

as each of the companies did prior to the closing and (2) S&A Communications and WHC will

continue to operate as providers of resold interstate interexchange and international services in

and around the areas served by S&A Telephone and WHT, respectively.

IV.    Public Interest Statement

       The Transaction furthers the public interest, convenience and necessity. S&A Telephone

has served residential and commercial customers in certain areas of Lyon and Osage Counties in

Kansas since 1939. WHC has served residential and commercial customers in the Waverly Hall

area of Georgia since 1944. S&A Communications and WHC have provided resold interstate and

resold international services in recent years to customers of their respective affiliates. USConnect




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 of its parent company, Newcastle Holdings, Inc., international long distance services in
and around the service areas of DTC and ECI.


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, S&A Telephone and WHT will continue to provide local

exchange service to their respective customers, and S&A Communications and WHC will

continue to provide interexchange service to their 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. S&A Communications‘

and WHC‘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 numerous other interexchange carriers operating in the Kansas and Georgia areas

where S&A Communications and WHC, respectively, will continue to market their 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.




° SMC also controls SM Investors, L.P., a U.S. limited partnership organized under the laws of
the State of Delaware ("SMI"), and Mr. Muoio. SMI is also controlled by its general partner
SMC. SMI has a non—controlling 4% ownership interest in Holdeco.


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:

               American Broadband Acquisition Corp.‘
               PO Box 19787
               60 Beckwith
               Colorado City CO 81019
               Attention:      Charles T. Lake, II
                Tel:   646—580—3195

                S & A Telephone Company, Inc.
               413 Main Street, PO Box 68
               Allen, KS 66833—0068
               Attn: Janet Bathurst, General Manager
               Tel: 620—528—3223

               S&A Communications, Inc. d/b/a S&A Long Distance
               413 Main Street, PO Box 68
               Allen, KS 66833—0068
               Attn: Janet Bathurst, General Manager
               Tel: 620—528—3223

               Waverly Hall Telephone, L.L.C.
               7457 Highway 208, PO Box 100
               Waverly Hall, GA 31831
               Attention: Robert Jones, General Manager
               Tel: 706—582—3333

               Waverly Hall Communications, Inc.
               7457 Highway 208, PO Box 100
               Waverly Hall, GA 31831
               Attention: Robert Jones, General Manager
               Tel: 706—582—3333


‘ Please see n.1, supra.


                                                10


              Transferees:

              USConnect Holdings Inc.
              US Connect Acquisitions II, Inc.

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

       (b)    S&A Telephone is a corporation organized under the laws of Kansas. S&A

Communications is a corporation organized under the laws of North Carolina. WHT is a limited

liability company organized under the laws of Georgia. WHC is a corporation organized under

the laws of North Carolina. USConnect Holdings Inc. is a corporation organized under the laws

of Delaware. USConnect Acquisitions II, 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:

              American Broadband Acquisition Corp.
              S & A Telephone Company, Inc.
              S&A Communications, Inc. d/b/a S&A Long Distance
              413 Main Street, PO Box 68
              Allen, KS 66833—0068
              Attn: Janet Bathurst, General Manager

              Waverly Hall Telephone, LL.C.
              Waverly Hall Communications, Inc.
              7457 Highway 208, PO Box 100
              Waverly Hall, GA 31831
              Attention: Robert Jones, General Manager

              With copies to:

              Charles T. Lake, II
              c/o Signal Equity Partners, II, L.P.
              805 Third Avenue, Suite 1202
              New York, NY 10022
              Tel: 646—580—3195



                                                11


              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

              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@feclaw.com

       (d)    (i) S&A Communications provides international telecommunications under

Section 214 authorization for global resale, File No. ITC—214—20000310—00140 (see also File No.

ITC—ASG—20090717—00335 and File No. ITC—ASG—20050405—00140) held by ABAC, originally

granted April 12, 2000 to Mid—South Telecommunications, Inc. S&A Telephone and S&A

Communications hold blanket domestic Section 214 authority to provide interstate interexchange

telecommunications services.




                                              12


               (ii) WHC holds an international Section 214 authorization for global resale, File

No. ITC—214—20070328—00125 (see also ITC—T/C—20090717—00334), granted April 24, 2007.

WHT and WHC hold blanket domestic Section 214 authority to provide interstate interexchange

telecommunications services.

               (iii) 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. USConnect is also the proposed transferee of control of The

Rye Telephone Company, South Park L.L.C. d/b/a South Park Telephone Company and

CableCo, LLC d/b/a ghValley Long Distance in WC Docket No. 13—237 and in applications

pending before the International Bureau® and the Wireless Telecommunications Bureau."

        (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

of S&A Telephone or WHT. 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. Likewise, no other

ILEC that USConnect proposes to acquire, pursuant to separate Commission authorizations, have

a local exchange service territory that adjoins or overlaps the local exchange service territories of

S&A Telephone or WHT.


8 See Submission ID IB2013002061.


                                                  13


               (i)      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.

               (ii)     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

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.




* See File Nos. 0005941034 and 0005941166.



                                                14


               (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

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




                                                15


authorized transferee of control of the following 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.

        (1)     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(j) 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.

                (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.




* As noted in Section V(d)(iii) of this application, 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. USConnect has also entered into an agreement as the
transferee of Corona Holdings, Inc. (also an affiliate of ABAC) and its subsidiaries South Park
L.L.C. d/b/a South Park Telephone Company, The Rye Telephone Company, and CableCo,,
LLC, applications for which have been filed with the Commission. See Section V.(d)(iii), supra.



                                                  16


                (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

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

such agreements in the future.




                                                  17


        (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)(iii) 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

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.

                                 [Section VII and signature pages follow]




                                                  18


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.

                                     Respectfully submitted,

                                     AMERICAN BROADBAND ACQUISITION CORP.
                                     on its own behalf and on behalf of its shareholders


                                     By:      %M                      &
                                             Charles T. Lake, 11, Treasurer

                                     Date:            7/—2@ Zj:f


                                     S&A TELEPHONE COMPANY, INC.
                                     on its own behalf and on behalf of its shareholder



                                     By: _ s
                                             Charles T. Lake, II, Treasurer

                                     Date:             ?/2{//3


                                     S&A COMMUNICATIONS, INC. d/b/a S&A LONG
                                     DISTANCE
                                     on its own behalf and on behalf of its shareholder



                                     By:       4t_2 &
                                             Charles T. Lake, II, Treasurer

                                     Date:           2 [/>4 /1 >

                                     WAVERLY HALL TELEPHONE, L.L.C.
                                     on its own behalf and on behalf of its member

                                     By:     _7 Z ,’Z          omI"___   g
                                             Charles T. Lake, 11, Treasurer

                                    Date:           ?/26’//3



                                               19


WAVERLY HALL COMMUNICATIONS, INC.
on its own behalf and on behalf of its shareholder


By:     /_'/,/
             P                       4
        Charles T. Lake, II, Treasurer

Date:          9/—2(//—?

USCONNECT HOLDINGS, INC.

By:
        William E. King, President

Date:


USCONNECT ACQUISITIONS II, INC.

By:
        William E. King, President

Date:




         20


WAVERLY HALL COMMUNICATIONS, INC.
on its own behalf and on behalf ofits shareholder


By:
        Charles T. Lake, II, Treasurer

Date:




          illiam E. King. President      *
                9. z46—3




         20


                                            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 ILB. 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 a separate application filed on the appropriate FCC Form, Applicants request
              consent to transfer control of a license held by S&A Telephone in the
              Industrial/Business Pool, Conventional, Call Sign KNDU915.

       (2)    In separate Section 214 applications recently filed with the Commission,
              USConnect requests domestic and international transfer of control authorizations
              as noted in Section V.(d)(iii) of this application.

§63.04(a)(10) — Special Considerations

       None

§63.04(a)(11) — Waiver Requests

       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.




                                                21


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
                                             Wiltamsburg       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
                                             Meads             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




                  Dickey Rural




       Stutsman
                           Barnes              Cass




McPherson                           Marshall


                   Brown


                            Farmers Telecommunications




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                    Golden West




        Parkins




Sioux    Sherldan


Horry Telephone Cooperative



Document Created: 2013-09-26 16:24:41
Document Modified: 2013-09-26 16:24:41

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