Attachment Attachment 1

This document pretains to ITC-T/C-20131105-00295 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2013110500295_1019178

                                        Before the
                            Federal Communications Commission
                                  Washington, D.C. 20554

In the Matter of                                   )
                                                   )
NTS, Inc., Transferor                              )
                                                   )        File Nos. ITC-T/C-2013_______
and                                                )                  ITC-T/C-2013_______
                                                   )
T3 North Intermediate Holdings, LLC, Transferee )           WC Docket No. _______
                                                   )
Consolidated Application for Consent               )
to Transfer Control of NTS, Inc., and Subsidiaries )
Possessing Blanket Domestic and International      )
Section 214 Authority                              )

To:    International Bureau
       Wireline Competition Bureau

                          CONSOLIDATED APPLICATION
                     FOR CONSENT TO TRANSFER OF CONTROL

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

47 U.S.C. § 214 (the “Act”), and Section 63.03, 63.04 and 63.24(e) of the Commission’s Rules,

47 C.F.R. § 63.03, 63.04 and 63.24(e), NTS, Inc. (“NTS” or “Transferor”), and T3 North

Intermediate Holdings, LLC (“T3 Intermediate” or “Transferee” and, together with NTS, the

“Applicants”), hereby respectfully request the authority necessary to consummate a transaction

(the “Transaction”) whereby T3 Intermediate will acquire direct control of NTS and indirect

control of NTS’s subsidiaries. Two NTS subsidiaries — NTS Communications, Inc., and Xfone

USA, Inc. — hold international Section 214 authorizations, and these and other subsidiaries (the

“Subsidiary Licensees,” and collectively with NTS the “Licensees”) hold domestic Section 214

authorizations as set forth herein. NTS is a holding and managing company providing, through

its subsidiaries, integrated communications services, which include voice, video and data, over

its Fiber-To-The-Premises (“FTTP”) and other networks.


                                                                      Application for Transfer of Control
                                                                          of NTS, Inc., and Subsidiaries
                                                                                                   Page 2


               The Applicants respectfully request streamlined treatment of the Application

pursuant to Sections 63.03 and 63.12 of the Rules. This Application is eligible for streamlined

processing of domestic transfer of control applications pursuant to Section 63.03(b)(1) of the

Rules because Transferee is not a telecommunications provider. This Application also is eligible

for streamlined treatment pursuant to Section 63.03(b)(2)(i) of the Rules because (1) following

consummation of the proposed Transaction, Transferee and its affiliates (as defined in Section

3(2) of the Act) will have less than a 10 percent share of the interstate, interexchange market and

will provide competitive telephone exchange services exclusively in areas served by a dominant

local carrier not a party to the Transaction; and (2) none of the Applicants or any of their

affiliates are regulated as dominant with respect to any service.

               This Application is eligible for streamlined processing pursuant to Section

63.12(c) of the Rules because Transferee is not a foreign carrier itself and is not (and upon

consummation of the Transaction would not be) affiliated with any foreign carrier or any

dominant U.S. carrier.

I.     DESCRIPTION OF THE TRANSACTION

               Applicants have entered into an Agreement and Plan of Merger (“Agreement”)

dated as of October 20, 2013, pursuant to which T3 Intermediate intends to acquire direct

ownership and control of NTS and indirect control of NTS’s subsidiaries. T3 Intermediate is a

Nevada limited liability company and a wholly owned subsidiary of T3 North Holdings, LLC

(“T3 Holdings”), a Delaware limited liability company. Tower Three Partners Fund II LP (“T3P

II”), a Delaware limited partnership, holds all of the direct ownership interests in, and exercises

voting control of, T3 Holdings. Prior to closing, T3 Holdings will be converted to a Delaware


                                                                       Application for Transfer of Control
                                                                           of NTS, Inc., and Subsidiaries
                                                                                                    Page 3


corporation wholly owned by T3P II, and T3 Intermediate will be converted to a Nevada

corporation wholly owned by T3 Holdings.

               The proposed Transaction will be accomplished by the merger of North Merger

Sub, Inc. (“Merger Sub”), a Nevada corporation wholly owned by T3 Intermediate, with and into

NTS, with NTS surviving the merger as a direct, wholly owned subsidiary of T3 Intermediate.

Immediately prior to the effective time of the merger, each share of NTS’s common stock

(excluding the Rollover Shares described below) will be cancelled, with the holders of such

shares being entitled to receive $2.00 per share. Guy Nissenson, NTS’s Chairman, President and

Chief Executive Officer, has entered into a separate rollover agreement whereby certain shares of

NTS common stock beneficially owned by Mr. Nissenson will be rolled over into shares of T3

Holdings. T3P II will continue to hold greater than 90 percent of the direct ownership and voting

interests in T3 Holdings; Mr. Nissenson’s interest in T3 Holdings will be well under 10 percent.

               The business and affairs of T3 Holdings will be managed by its board of directors,

which is expected to consist of William D. Forrest, Daniel Bellissimo, Michael Nold, and Guy

Nissenson. Mr. Forrest and Mr. Nold are U.S. citizens. Mr. Bellissimo is a Canadian citizen.

Mr. Nissenson is a British, Argentinian, and Israeli citizen. The business and affairs of T3

Intermediate is expected to be managed by its president, Mr. Forrest.

               Upon closing, it is likely that there will be outstanding warrants for the purchase

of 450,000 shares of NTS, Inc., common stock. These warrants may not be exercised later than

May 1, 2014. In the event that the warrants are exercised, T3 Intermediate will effect a short

form merger under Nevada law, whereby T3 Intermediate will merge with and into NTS, Inc.,

with NTS, Inc. then becoming a wholly owned direct subsidiary of T3 North Holdings, Inc.

Applicants certify that this post-closing reorganization, should it take place, will not result in any


                                                                      Application for Transfer of Control
                                                                          of NTS, Inc., and Subsidiaries
                                                                                                   Page 4


further change in the actual controlling party of NTS, Inc. Applicants respectfully request that

the Commission authorize Applicants to undertake the pro forma reorganization described in this

paragraph as part of the instant Application, in lieu of requiring Transferee to file a separate pro

forma transaction notification pursuant to Section 63.24(f) of the Commission’s Rules.

II.    PUBLIC INTEREST STATEMENT

               The Transaction will enhance the ability of the Licensees to compete effectively

in the retail markets for local exchange, long distance, broadband, and video services, as well as

in the markets for private line and wholesale switched termination services. These markets are

subject to significant competitive forces, including participation by incumbent carriers and multi-

channel video programming distributors (“MVPDs”). Following the Transaction, the Licensees

will continue to provide their customers with the same high-quality services on the same terms

and conditions as currently provided, without interruption. In addition, the Licensees will

continue to be operated by highly experienced, well-qualified management, operating and

technical personnel from NTS. Meanwhile, the Transaction will provide NTS and its

subsidiaries with access to additional financial and other resources that will enhance their ability

to compete effectively with larger incumbent telecommunications providers and MVPDs.

Ultimately, the Transaction will benefit consumers by bolstering NTS’s ability to serve as a

strong, independent competitor in the telecommunications and video markets.

III.   INFORMATION PROVIDED PURSUANT TO SECTION 63.24(e) OF THE
       COMMISSION’S RULES AND THE IBFS ELECTRONIC FORM

               The Applicants submit the following information pursuant to Section 63.24(e) of

the Rules, including the information requested in Section 63.18:

       (a)-(b) Description of the Applicants and Licensees


                                                                   Application for Transfer of Control
                                                                       of NTS, Inc., and Subsidiaries
                                                                                                Page 5


              (1) Transferor and Subsidiary Licensees:

              NTS, Inc.                                            FRN:   0023090277
              NTS Communications, Inc.                             FRN:   0004266938
              NTS Telephone Company, LLC                           FRN:   0017183674
              PRIDE Network, Inc.                                  FRN:   0018804716
              Xfone USA, Inc.                                      FRN:   0013592787
              1220 Broadway
              Lubbock, Texas 79401
              Attention: Niv Krikov
              Tel: (806) 797-0687
              Email: niv@ntscominc.com

              NTS is a publicly held Nevada corporation. NTS Communications, Inc.

(“NTSC”) and PRIDE Network, Inc. (“PRIDE”) both are Texas corporations. NTS Telephone

Company, LLC, is a Texas limited liability company. Both NTS Telephone Company and

PRIDE are wholly owned by NTSC, which in turn is wholly owned by NTS. Xfone USA, Inc. is

a Mississippi corporation wholly owned by NTS. NTS, through the Licensees, provides

integrated communications services in Texas, Louisiana, Mississippi, and it also serves

customers in Arizona, Colorado, Kansas, New Mexico and Oklahoma. NTS’s services include

voice, video and data over its FTTP and other networks.

              (2) Transferee:

              T3 North Intermediate Holdings, LLC                  FRN: 0023082548
              c/o Tower Three Partners
              Two Sound View Drive
              Greenwich, Connecticut 06830
              Attention: Michael Nold & Dan Bellissimo
              Tel: (203) 485-5800
              Facsimile: (203) 485-5885
              Email: mnold@tower3partners.com and
                     dbellissimo@tower3partners.com


              T3 North Intermediate Holdings, LLC (“T3 Intermediate”) is a Nevada limited

liability company and a direct, wholly owned subsidiary of T3 North Holdings, LLC (“T3


                                                                      Application for Transfer of Control
                                                                          of NTS, Inc., and Subsidiaries
                                                                                                   Page 6


Holdings”), a Delaware limited liability company. Both T3 Holdings and T3 Intermediate were

created for the purpose of the Transaction. Tower Three Partners Fund II LP (“T3P II”)

currently holds all of the direct ownership interests in, and exercises voting control of, T3

Holdings. T3P II is directly controlled by its general partner, Tower Three Partners Fund II GP

LP (“T3P II GP LP”), and it is ultimately controlled by Tower Three Partners Fund II GP LLC

(“T3P II GP LLC”). The managing member of T3P II GP LLC is William D. Forrest, a U.S.

citizen.

                  Tower Three Partners Fund II LP is part of a family of funds advised by Tower

Three Partners, LLC, an operationally-oriented private equity firm that invests in a concentrated

portfolio of U.S.-based middle market companies. With long-term committed capital from major

institutional investors, the firm targets equity investments of $50M to $150M. Alongside

management, Tower Three prioritizes and implements transformative improvements in growth,

strategy, operations and/or capital structure to significantly increase business performance.

           Answer to Question 10 -- Section 63.18(c)-(d)

           (c)    Contacts

                  (1) For NTS and Subsidiary Licensees:

                         NTS, Inc.
                         1220 Broadway
                         Lubbock, Texas 79401
                         Attention: Niv Krikov
                         Tel: (806) 797-0687
                         Email: niv@ntscominc.com

                      with a copy to:

                         Olshan Frome Wolosky LP
                         65 East 55th Street
                         New York, New York 10022
                         Attention: Steve Wolosky


                                                                    Application for Transfer of Control
                                                                        of NTS, Inc., and Subsidiaries
                                                                                                 Page 7


                      Tel: (212) 451-2333
                      Facsimile: (212) 451-2222
                      Email: swolosky@olshanlaw.com

                      Sichenzia Ross Friedman Ference LLP
                      61 Broadway, 32nd Floor
                      New York, New York 10006
                      Attention: Arthur Marcus
                      Tel: (212) 930-9700
                      Facsimile: (212) 930-9725
                      Email: amarcus@srff.com

              (2) For T3 Holdings and/or T3 Intermediate:

                      Matthew S. DelNero
                      Michael Beder
                      Covington & Burling LLP
                      1201 Pennsylvania Avenue N.W.
                      Washington, DC 20004-2401
                      Tel: (202) 662-6000
                      Fax: (202) 662-6291
                      E-mail: mdelnero@cov.com
                              mbeder@cov.com

              With a copy to:

                      c/o Tower Three Partners
                      Two Sound View Drive
                      Greenwich, Connecticut 06830
                      Attention: Michael Nold & Dan Bellissimo
                      Tel: (203) 485-5800
                      Facsimile: (203) 485-5885
                      Email: mnold@tower3partners.com
                             dbellissimo@tower3partners.com

       (d)    Section 214 Authorizations

              NTS and its Subsidiary Licensees hold authorizations under Section 214 of the

Act as specified below.

              NTS Communications, Inc. holds International Section 214 authority to provide
              global facilities-based service and global resale service, which authority originally
              was granted in IB File No. ITC-214-19971024-00657. The Commission
              approved NTSC’s application to transfer control of this authorization to Xfone,


                                                                    Application for Transfer of Control
                                                                        of NTS, Inc., and Subsidiaries
                                                                                                 Page 8


               Inc. (now known as NTS, Inc.) in IB File No. ITC-T/C-20071109-00456. NTSC
               is authorized to provide interstate telecommunications service by virtue of blanket
               domestic Section 214 authority. 47 C.F.R. § 63.01.

               Xfone USA, Inc. (d/b/a/ NTS Communications) holds International Section 214
               authority to provide global or limited global resale service pursuant to the
               authority granted by IB File No. ITC-214-20040706-00251. Xfone USA is
               authorized to provide interstate telecommunications service by virtue of blanket
               domestic Section 214 authority. 47 C.F.R. § 63.01.

               NTS Telephone Company, LLC (d/b/a NTS of Levelland) is authorized to provide
               interstate telecommunications service by virtue of blanket domestic Section 214
               authority. 47 C.F.R. § 63.01.

               PRIDE Network, Inc. (in Texas, d/b/a NTS Communications and in Louisiana,
               d/b/a NTS of Louisiana) is authorized to provide interstate telecommunications
               service by virtue of blanket domestic Section 214 authority. 47 C.F.R. § 63.01.

               Transferee has not previously received – and does not currently hold – authority

under Section 214 of the Communications Act.

         (h)   Answer to Question 11 -- Name, address, citizenship, and principal business
               of entities that will own at least 10 percent of the applicants

               (1) NTS (Transferor)

               NTS, Inc. is a publicly held Nevada corporation. Its principal business is serving

as a holding and managing company providing, through its wholly owned Subsidiary Licensees,

integrated communications services which include voice, video and data over its FTTP and other

networks. The ownership structure and corporate forms of the Subsidiary Licensees, as

described in (a)-(b) above, will not change as a result of the Transaction. Upon consummation of

the Transaction, NTS will be a direct, wholly owned subsidiary of T3 Intermediate, and the

Subsidiary Licensees will remain wholly owned direct or indirect subsidiaries of NTS.

               The address of NTS and all its subsidiaries is 1220 Broadway, Lubbock, Texas

79401.


                                                                        Application for Transfer of Control
                                                                            of NTS, Inc., and Subsidiaries
                                                                                                     Page 9


               (A)     Ownership of NTS: As reflected in NTS, Inc.’s most recent 10-K filing

with the Securities and Exchange Commission, as of March 1, 2013, several individuals or

entities were deemed to hold beneficial ownership of 10 percent or more of NTS’s common

stock, based on the holder’s ability to exercise sole or shared voting power and/or investment

power over the shares. Under the SEC rules, more than one person may be deemed to be a

beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of

securities as to which he or she may not have any pecuniary beneficial interest. As described

above in Section I, immediately prior to the effective time of the merger, each share of NTS’s

common stock (excluding the Rollover Shares held by Guy Nissenson) will be cancelled, with

the holders of such shares being entitled to receive $2.00 per share.

               The following individuals or entities were deemed to hold beneficial ownership of

10 percent or more of NTS’s common stock, as of March 1, 2013:

               Name:               Guy Nissenson
               Address:            4711 106th Street, Lubbock, Texas, 79424
               Position:           Chairman of the Board, President, and Chief Executive
                                   Officer, NTS, Inc.
               Citizenship:        British, Argentinian, and Israeli citizen
               Ownership Interest: 16.4%

               Name:                 Alan L. Bazaar
               Address:              9 Bedford Road, Katonah, NY 10536
               Position:             Director, NTS, Inc.
               Citizenship:          British, Argentinian, and Israeli citizen
               Ownership Interest:    12.3%

               Name:                 Hollow Brook Wealth Management LLC
               Address:              410 Park Avenue - 17th Floor, New York, NY 10022
               Principal Business:   Investment adviser
               Citizenship:          New York limited liability company
               Ownership Interest:    12.2%

               Name:                 Richard L. Scott
               Position:             Beneficial shareholder


                                                                      Application for Transfer of Control
                                                                          of NTS, Inc., and Subsidiaries
                                                                                                 Page 10


               Address:            568 9th Street S., Suite 276, Naples, FL 34102
               Citizenship:        United States citizen
               Ownership Interest: 12.2%

               Name:               Burlingame Asset Management, LLC and Blair E. Sanford
               Address:            1 Market Street, Spear Street Tower, Suite 3750,
                                   San Francisco, CA 94105
               Principal Business: Investment adviser (Blair E. Sanford, managing member)
               Citizenship:        Delaware limited liability company
               Ownership Interest: 19.9%

               (2) T3 Intermediate (Transferee):

               Upon consummation of the Transaction, including the conversion of T3 Holdings

and T3 Intermediate to corporations as described in Section I, NTS will be a direct, wholly

owned subsidiary of T3 North Intermediate Holdings, Inc. (“T3 Intermediate”). T3 Intermediate

will be a Nevada corporation created for the purpose of serving as a holding company for NTS.

T3 Intermediate’s address is c/o Tower Three Partners, Two Sound View Drive, Greenwich,

Connecticut 06830.

               (A)     Ownership of T3 Intermediate: Upon consummation of the Transaction

all of the direct ownership and voting interests in T3 Intermediate will be held by T3 North

Holdings, Inc. (“T3 Holdings”), a Delaware corporation created for the purpose of serving as a

holding company in this transaction. 1

               The address of T3 Holdings is c/o Tower Three Partners, Two Sound View Drive,

Greenwich, Connecticut 06830.




1
  There are certain additional parties that directly or indirectly hold 10 percent or more of the
economic interests in Transferee, but such parties have no material involvement, directly or
indirectly, in the management or operation of Transferee, nor will they have any such
involvement in Transferor after consummation of the transaction.


                                                                          Application for Transfer of Control
                                                                              of NTS, Inc., and Subsidiaries
                                                                                                     Page 11


                (B)     Ownership of T3 Holdings: Upon consummation of the Transaction,

Tower Three Partners Fund II LP (“T3P II”), a Delaware limited partnership whose principal

business is operating as an investment partnership, will hold greater than 90 percent of the direct

ownership interests in T3 Holdings. As described in Section I, Guy Nissenson, NTS’s Chairman,

President and Chief Executive Officer, will roll over certain shares of NTS common stock

beneficially owned by Mr. Nissenson into shares of T3 Holdings. Mr. Nissenson’s interest in T3

Holdings will be well under 10 percent.

                T3P II is directly controlled by its general partner, Tower Three Partners Fund II

GP LP (“T3P II GP LP”), and it is ultimately controlled by Tower Three Partners Fund II GP

LLC (“T3P II GP LLC”). The managing member of T3P II GP LLC is William D. Forrest, a

U.S. citizen.

                The address for all of the Tower Three entities described above is c/o Tower

Three Partners, Two Sound View Drive, Greenwich, Connecticut 06830.

                Transferee will not have any interlocking directorates with a foreign carrier.

                Charts depicting the pre- and post-closing ownership structure of the Applicants

are attached at Exhibit A.

       (i) Foreign Carrier Affiliation

                Transferee certifies that it is not a foreign carrier, that it is not affiliated within the

meaning of Section 63.09(e) of the Commission’s rules, 47 C.F.R. § 63.09(e), with any foreign

carriers, and that it would not become affiliated with any foreign carriers upon consummation of

the Transaction.

       (j)      Foreign Carrier and Destination Countries


                                                                       Application for Transfer of Control
                                                                           of NTS, Inc., and Subsidiaries
                                                                                                  Page 12


                 Transferee certifies that, through the Transaction, Transferee does not seek to

provide international telecommunications services to any destination country where (1) any

entity that owns more than 25 percent of Transferee, or that controls Transferee, controls a

foreign carrier in that country; or (2) two or more foreign carriers (or parties that control foreign

carriers) own, in the aggregate more than 25 percent of Transferee and are parties to, or the

beneficiaries of, a contractual relation affecting the provision or marketing of international basic

telecommunications services in the United States.

       (k)-(l)

                 Not applicable.

       (m)       Non-Dominance

       Transferee qualifies for a presumption of non-dominance under Section 63.10(a)(1) of the

Commission’s rules, 47 C.F.R. § 63.10(a)(1) because it is not a foreign carrier and is not

affiliated with any foreign carriers.

       (n)       Concessions

                 Applicants certify that they have not agreed to accept any direct or indirect special

concessions from a foreign carrier or administration 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.

       (o)       Federal Benefits

                 Applicants certify pursuant to Sections 1.2001 through 1.2003 of the Rules that

they are not 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; see also 47 C.F.R. §§ 1.2001-1.2003.


                                                                       Application for Transfer of Control
                                                                           ofNTS, Inc., and Subsidiaries
                                                                                                  Page 13


        (p)     Streamlined Processing

                Applicants respectfully submit that this Application is eligible for streamlined

processing pursuant to Section 63.12(a)-(b) ofthe Commission's rules, 47 C.F.R. §63.12(a)-(b).

Transferee is not a foreign carrier, is not affiliated with any foreign carriers or any dominant U.S.

carriers, and will not become affiliated with any such carriers as a result of the Transaction.

IV.     INFORMATION REQUESTED BY SECTION 63.04(b) OF THE COMMISSION'S
        RULES

                In accordance with the requirements of Section 63.04(b) of the Rules, the

additional information required for the domestic Section 214 transfer of control application is

provided in Exhibit B.

V.      CONCLUSION

                For the reasons stated above, Applicants respectfully request that the Commission

grant all authority necessary for consummation of the Transaction described herein.

                                              Respectfully submitted,

NTS, Inc.                                          T3 North Intermediate Holdings, LLC


                                                   By:~~
      Arthur Marcus                                     Matthew S. DelNero
                                                        Michael Beder
      Sichenzia Ross Friedman Ference LLP
      61 Broadway, 32nd Floor                           Covington & Burling LLP
      New York, New York I 0006                         1201 Pennsylvania Avenue NW
      Tel: (212) 930-9700                               Washington, DC 20004-2401
      Facsimile: (212) 930-9725                         Tel: (202) 662-6000
      Email: amarcus@srtf.com                           Fax: (202) 662-6291
                                                        E-mail: mdelnero@cov.com
Its attorneys                                                   mbeder@cov .com

                                                   Its attorneys
November 5, 2013


                              EXHIBIT A

                Pre- and Post-closing Organization Charts




DC: 4683965-6


                                                                                Pre-transaction Structure of NTS, Inc.

                                                                                                                           NTS, Inc.
                    Wholly                                                                                                                                                                                                  Wholly
                     owned                                                                                                                                                                                                   owned
                   subsidiary                                                                                                                                                                                              subsidiary



            NTS Communications, Inc.                                                                                                                                                                   Xfone USA, Inc. (1)




                                                                      Wholly owned subsidiaries                                                                                                       Wholly owned subsidiaries




                                                                                                                                                                                                 Gulf Coast                   eXpeTel
                                NTS                                                                                                                                        NTS                 Utilities, Inc. (3)       Communications, Inc. (3)
    PRIDE                                            Gary M. Wallace                 Midcom of              Communications              NTS Telephone
                             Construction                                                                                                                               Management
Network, Inc. (2)                                    Company, Inc. (3)              Arizona, Inc.           Brokers, Inc. (3)          Company, LLC (4)
                              Company                                                                                                                                  Company, LLC

_________
(1)   d/b/a NTS Communications.
(2)   In Texas, d/b/a NTS Communications and in Louisiana, d/b/a NTS of Louisiana.
(3)   Entity in good legal standing, however no longer conducts business.
(4)   d/b/a NTS of Levelland.


NTS, Inc. – A publicly held corporation. Incorporated under the laws of the state of Nevada. Authorized capital of 75,000,000 shares of common stock par value $0.001.
NTS Communications, Inc. – A business corporation. Incorporated under the laws of the state of Texas, Authorized capital of 11,000,000 shares of stock with no par value. Wholly-owned by NTS, Inc.
PRIDE Network, Inc. - A business corporation. Incorporated under the laws of the state of Texas. Authorized capital of 1,000,000 shares of stock with no par value. Wholly-owned by NTS Communications, Inc.
NTS Construction Company. - A business corporation. Incorporated under the laws of the state of Texas. Authorized capital of 1,000,000 shares of stock with no par value. Wholly-owned by NTS Communications, Inc.
Garey M Wallace Company, Inc. - A business corporation. Incorporated under the laws of the state of Texas. Authorized capital of 1,000,000 shares of stock with no par value. Wholly-owned by NTS Communications, Inc.
Midcom of Arizona, Inc. - A business corporation. Incorporated under the laws of the state of Arizona. Authorized capital of 1,000,000 shares of stock with no par value. Wholly-owned by NTS Communications, Inc.
Communications Brokers, Inc. - A business corporation. Incorporated under the laws of the state of Texas. Authorized capital of 3,300,000 shares of stock with no par value. Wholly-owned by NTS Communications, Inc.
NTS Telephone Company, LLC - A limited liability company formed under the laws of the state of Texas. It has no authorized capital stock. NTS Communications, Inc., is its sole Member. Wholly-owned by NTS Communications, Inc.
NTS Management Company, LLC. - A limited liability company formed under the laws of the state of Texas. It has no authorized capital stock. NTS Communications, Inc., is its sole Member. Wholly-owned by NTS Communications, Inc.
Xfone USA, Inc. - A business corporation. Incorporated under the laws of the state of Mississippi. Authorized capital of 1,000 shares. Wholly-owned by NTS, Inc.
Gulf Coast Utilities, Inc. - A business corporation. Incorporated under the laws of the state of Mississippi. Authorized capital of 1,000 shares. Wholly-owned by Xfone USA, Inc.
eXpeTel Communications. Inc. - A business corporation. Incorporated under the laws of the state of Mississippi. Authorized capital of 10,000 shares. Wholly-owned by Xfone USA, Inc.




DC: 5061178-2


                                           Pre-transaction Structure of
                                                   Transferee*


                                                   Tower Three Partners Fund II GP LLC


                                                       General Partner




                                                             Tower Three Partners Fund II GP LP


                                                              General Partner




                                       Tower Three Partners Fund II LP




                                                   Wholly owned
                                                    subsidiary




                                                                    T3 North Holdings, LLC




                                                        Wholly-owned
                                                         subsidiary




                                     T3 North Intermediate Holdings, LLC




*Does not include certain additional parties that directly or indirectly hold 10 percent or more of the economic interests in
Transferee, but that have no material involvement, directly or indirectly, in the management or operation of Transferee.
Such parties also will have no such involvement in Transferor after consummation of the transaction.


                                                        Post-transaction Structure of
                                                               Merged Entity*

                                                                   Tower Three Partners Fund II GP LLC


                                                                       General Partner




                                                                          Tower Three Partners Fund II GP LP


                                                                           General Partner



                                                          Tower Three Partners Fund II LP


                                                                                      >90%



                                                                          T3 North Holdings, Inc.

                                                                                   Wholly owned
                                                                                    subsidiary




                                                         T3 North Intermediate Holdings, Inc.



                                                                       Wholly-owned
                                                                        subsidiary




       Wholly
                                                                                  NTS, Inc.
                                                                                                                                                               Wholly
        owned                                                                                                                                                   owned
      subsidiary                                                                                                                                              subsidiary



 NTS Communications, Inc.                                                                                                                       Xfone USA, Inc.


                                            Wholly owned subsidiaries                                                                        Wholly owned subsidiaries




                                                                                                                                             Gulf Coast         eXpeTel
 PRIDE                             Gary M.           Midcom                                      NTS                NTS
                NTS                                                                                                                           Utilities,     Communications,
Network,                           Wallace              of           Communications            Telephone         Management
             Construction                                                                                                                       Inc.              Inc.
  Inc.                            Company,           Arizona,         Brokers, Inc.            Company,           Company,
              Company
                                    Inc.               Inc.                                      LLC                LLC


             *Does not include certain additional parties that directly or indirectly hold 10 percent or more of the economic interests in
             Transferee, but that have no material involvement, directly or indirectly, in the management or operation of Transferee.
             Such parties also will have no such involvement in Transferor after consummation of the transaction.


                                   Post-transaction Structure of
                    Merged Entity (after contemplated pro forma reorganization) *


                                                                    Tower Three Partners Fund II GP LLC


                                                                        General Partner




                                                                           Tower Three Partners Fund II GP LP


                                                                            General Partner



                                                           Tower Three Partners Fund II LP


                                                                                       >90%



                                                                           T3 North Holdings, Inc.

                                                                                    Wholly owned
                                                                                     subsidiary




       Wholly
                                                                                  NTS, Inc.
                                                                                                                                                               Wholly
        owned                                                                                                                                                   owned
      subsidiary                                                                                                                                              subsidiary



 NTS Communications, Inc.                                                                                                                       Xfone USA, Inc.


                                            Wholly owned subsidiaries                                                                        Wholly owned subsidiaries




                                                                                                                                             Gulf Coast         eXpeTel
 PRIDE                             Gary M.           Midcom                                      NTS                NTS
                NTS                                                                                                                           Utilities,     Communications,
Network,                           Wallace              of           Communications            Telephone         Management
             Construction                                                                                                                       Inc.              Inc.
  Inc.                            Company,           Arizona,         Brokers, Inc.            Company,           Company,
              Company
                                    Inc.               Inc.                                      LLC                LLC




             *Does not include certain additional parties that directly or indirectly hold 10 percent or more of the economic interests in
             Transferee, but that have no material involvement, directly or indirectly, in the management or operation of Transferee.
             Such parties also will have no such involvement in Transferor after consummation of the transaction.


                                                                       Application for Transfer of Control
                                                                           of NTS, Inc., and Subsidiaries
                                                                                        Exhibit B - Page 1


                                            EXHIBIT B

   Domestic Supplement to Consolidated Application for Consent to Transfer of Control

                Pursuant to Section 63.04(b) of the Commission’s Rules, 47 C.F.R. § 63.04(b),

the Applicants submit the following additional information in support of their application for

consent to transfer of control under Section 214 of the Act:

63.04(a)(6): Description of the Transaction

                The proposed transaction is described in Section I of the Application.

63.04(a)(7): Description of Geographic Service Areas

                Certain subsidiaries of NTS are authorized by the FCC and state public utility

commissions to provide telecommunications services in Arizona, Colorado, Kansas, Louisiana,

Mississippi, New Mexico, Oklahoma, and Texas.

                Neither Transferee nor its current affiliates provide, or are authorized to provide,

telecommunications services.

63.04(a)(8): Eligibility for Streamlined Processing

                This Application is eligible for streamlined processing pursuant to Section

63.03(b)(1) because Transferee is not a telecommunications provider. This Application also is

eligible for streamlined treatment pursuant to Section 63.03(b)(2)(i) because (1) following the

Transaction, Transferee and its affiliates will have less than a 10 percent share of the interstate,

interexchange market and will provide competitive telephone exchange services exclusively in

areas served by a dominant local carrier not a party to the transaction; and (2) none of the

Applicants or any of their affiliates is regulated as dominant with respect to any

telecommunications service.




DC: 4683965-6


                                                                     Application for Transfer of Control
                                                                         of NTS, Inc., and Subsidiaries
                                                                                      Exhibit B - Page 2


63.04(a)(9): Other Related Applications

               This Application is related to Applicants’ application for approval to transfer

control of two Cable Television Relay Service (CARS) licenses currently held by NTS

Communications, Inc., call signs WLY-648 and WHZ-407. There are no other Commission

applications related to the Transaction.

63.04(a)(10): Special Considerations

               No party requests any special consideration as no party to the transaction is facing

imminent business failure.

63.04(a)(11): Separately Filed Waiver Requests

               None.

63.04(a)(12): Public Interest Statement

               The public interest statement is provided in Section II of the Application.



Document Created: 2013-11-05 17:45:03
Document Modified: 2013-11-05 17:45:03

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