Attachment Attachment

This document pretains to ITC-T/C-20140131-00027 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2014013100027_1034014

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


In the Matter of                                    )
                                                    )
AT&T Inc.                                           )
                                                    )
and                                                 )
                                                    )
Frontier Communications Corporation                 )
                                                    )
Applications For Consent to Transfer of Control     )
of Domestic and International Authorizations        )
Pursuant to Section 214 of the Communications       )
Act of 1934, As Amended, and Associated             )
Wireless Licenses                                   )


        CONSOLIDATED APPLICATION FOR THE TRANSFER OF CONTROL OF
           INTERNATIONAL AND DOMESTIC SECTION 214 AUTHORITY

         Pursuant to Section 214 of the Communications Act of 1934, as amended (“the Act”), 1

and Sections 63.04, 63.18 and 63.24 of the Commission’s rules, 2 AT&T Inc. (“AT&T” or

“Transferor”) and Frontier Communications Corporation (“Frontier” or “Transferee”)

(collectively “Applicants”) request Commission consent to transfer control of certain

international and domestic Section 214 authority held by AT&T’s wholly-owned subsidiaries

The Southern New England Telephone Company (“SNET”) and SNET America, Inc. (“SNET

America” and together with SNET, the “Transferred Companies”) to Frontier. Such authority is

necessary to effect the transfer to Frontier of AT&T’s local wireline operations in Connecticut

and certain long distance customers in other states. The proposed transaction will benefit

residential and business customers in Connecticut, who will be a focus of Frontier’s efforts to

1
    47 U.S.C. § 214.
2
    47 C.F.R. §§ 63.04, 63.18, and 63.24.


provide world-class communications services and service quality. The transaction will also

strengthen Frontier’s ability to serve all of its customers nationwide, in the provision of

broadband as well as other wireline services.

       Specifically, the proposed transaction includes the transfer of: (1) certain assets and

customer relationships related to SNET’s provision of local exchange and exchange access

services to residential, small-business, and some enterprise customers in Connecticut, and (2)

certain customer relationships relating to SNET America’s provision of interstate domestic and

U.S.-international long distance service and calling card service.

       Simultaneously with the closing of the proposed transaction, (i) AT&T will transfer to the

Transferred Companies certain assets and cause the Transferred Companies to assume certain

liabilities relating to the business to be acquired and (ii) the Transferred Companies will transfer

to AT&T certain assets, and AT&T will assume certain liabilities of the Transferred Companies,

to be retained by AT&T following the closing (the Transferred Companies, taking into account

such transactions, being referred to as the “Transferred Business”). Upon closing, Frontier will

acquire the Transferred Companies and the Transferred Business. The transaction is discussed in

more detail in Exhibit 1 to this Application. Consistent with Section 63.04(b) and Commission

practice, the Applicants have consolidated their request for Commission consent to the

transaction into a single lead application, and are submitting separate filings for each affected

authorization. Specifically, the Applicants seek consent to the following transfers of control:

       1. The transfer of control of SNET’s blanket domestic Section 214 operating authority.

       2. The transfer of control of SNET America’s blanket domestic and international
          Section 214 operating authority (File Nos. ITC-214-19930716-00119, ITC-214-




                                                –2–


            19950215-00064, and ITC-214-19960223-00083 (as modified by ITC-MOD-
            20041129-00487 3)).

       3. The transfer of control of two wireless radio licenses held by SNET. 4

Electronic IBFS and paper domestic Section 214 applications, and a FCC Form 603 application,

as needed for each of these licensees are being filed concurrently. This narrative provides the

information required by the International Section 214 Main Form and Sections 63.04 and 63.18

of the Commission’s rules. Additionally, attached as Exhibit 1 is a statement demonstrating that

the transaction is in the public interest, including a description of the parties and of the proposed

transaction.

I.     RESPONSE TO ITEMS ON INTERNATIONAL SECTION 214 MAIN FORM

       A.      Answer To Question 10 – Section 63.18(c)-(d)

       AT&T, a Delaware corporation, and its subsidiaries hold various international Section

214 authorizations. Its wholly-owned subsidiary SNET America, a Delaware corporation, holds

three international Section 214 authorizations (File Nos. ITC-214-19930716-00119 (resell

switched telecommunications services from the United States to international points), ITC-214-

19950215-00064 (Global or Limited Global Resale Service) and ITC-214-19960223-00083 (as

modified by ITC-MOD-20041129-00487) (Individual Switched Resale Service)).

       Frontier is the transferee for all Applications included in this transaction. The address

and telephone number for all of these entities post-transaction will be:

       Frontier Communications Corporation
       3 High Ridge Park
       Stamford, CT 06905

3
  The transfer of control of File No. ITC-MOD-20041129-00487 should be considered a “partial”
transfer of control that does not impact the operating authority of any entities that may be
covered by the Section 214 modification other than SNET America.
4
 SNET is the licensee of a Common Carrier Fixed Point-to-Point Microwave license (KCB95)
and an Industrial/Business Pool, Conventional license (WNJN897).


                                                –3–


       203-614-5600

       Frontier is a Delaware corporation. Frontier does not hold any international Section 214

authorizations, but directly or indirectly controls subsidiaries that hold international 214

authorizations to provide international facilities-based and/or resold services. 5

       Correspondence concerning these Applications should be directed to:

       For Frontier:

       Andrew Crain
       Senior Vice President, General Counsel
       Frontier Communications Corporation
       3 High Ridge Park
       Stamford, CT 06905
       203.614.5110 (tele.)
       203.614.4651 (fax)
       Andrew.Crain@ftr.com

       Bryan N. Tramont
       David H. Solomon
       William F. Maher
       Jennifer L. Kostyu
       Wilkinson Barker Knauer, LLP
       2300 N Street, N.W. Suite 700
       Washington, D.C. 20037
       202.783.4141 (tele.)
       202.783.5851 (fax)
       BTramont@wbklaw.com
       DSolomon@wbklaw.com
       WMaher@wbklaw.com
       JKostyu@wbklaw.com



5
 The Frontier subsidiaries that hold international Section 214 authorizations are: Frontier
Communications of America, Inc. (ITC-214-19971202-00753); Commonwealth Telephone
Enterprises, Inc. (ITC-214-19960726-00343); GVN Services (ITC-214-20020225-00113);
Frontier Communications Online and Long Distance Inc. (ITC-214-20090528-00565); Frontier
Communications of the Southwest Inc. (ITC-214-20090528-00563); Frontier Communications
of the Carolinas LLC (ITC-214-20090528-00564); Frontier Mid-States Inc. (ITC-214-20080219-
00081); Citizens Telecommunications Company of California Inc. (ITC-214-20080219-00078);
Frontier West Virginia Inc. (ITC-214-20080219-00071); Frontier North Inc. (ITC-214-
20080219-00082); and Frontier Communications Northwest Inc. (ITC-214-20080219-00079).



                                                –4–


        For AT&T:

        Jacquelyne Flemming
        AT&T Services, Inc.
        1120 20th Street, N.W. Suite 1000
        Washington, D.C. 20036
        202.457.3032 (tele.)
        202.457.3071 (fax)
        jackie.flemming@att.com

        Robert C. Barber
        Gary L. Phillips
        Lori Fink
        AT&T Services, Inc.
        1120 20th Street, N.W. Suite 1000
        Washington, D.C. 20036
        202.457.2121 (tele.)
        202.457.3073 (fax)
        Robert.barber@att.com

        Scott Feira
        Arnold & Porter LLP
        555 Twelfth Street, NW
        Washington, DC 20004
        202.942.5679 (tele.)
        202.942.5999 (fax)
        scott.feira@aporter.com


        B.      Answer To Question 11 – Section 63.18(h)

        Following consummation of the proposed transaction, SNET and SNET America will be

wholly-owned direct subsidiaries of Frontier. No person or entity holds a direct or indirect 10

percent or greater ownership interest in Frontier.

        C.      Answer To Question 13 – Narrative Of Transfer Of Control And Public
                Interest Statement

        A description of the transaction and demonstration of how the transaction is in the public

interest is attached as Exhibit 1.




                                               –5–


       D.      Answer To Question 20 – Section 63.12

       The Applicants do not request streamlined treatment of the Applications because they

will be reviewed as part of a larger transaction that is not subject to streamlined treatment.

       E.      Answer To Question 21 – Section 63.18(n)

       Frontier certifies that it has not agreed to accept special concessions directly or indirectly

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

possesses sufficient market power on the foreign end of the route to affect competition adversely

in the U.S. market and will not enter into any such agreements in the future.

       F.      Answer To Question 22 – Section 63.24(e)

       The Applicants certify that the authorizations will not be assigned or that control of the

authorizations will not be transferred until the consent of the Commission has been given.

Frontier also acknowledges that the Commission must be notified by letter within 30 days of a

consummation or of a decision not to consummate the transaction.

       G.      Answer To Question 25 – Section 63.18(o)

       The 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, 21 U.S.C. § 862, because

of a conviction for possession or distribution of a controlled substance.

II.    INFORMATION REQUIRED BY SECTION 63.04 OF THE COMMISSION’S
       RULES IN RELATION TO TRANSFER OF BLANKET DOMESTIC 214
       AUTHORITY

       In support of the Applicants’ request for consent to transfer control of certain assets and

customer relationships related to the provision of local exchange and exchange access services in

Connecticut, as well as certain long distance and calling card customer relationships, to Frontier,




                                                –6–


the following information is submitted pursuant to Section 63.04 of the Commission’s rules. 6

Specifically, Section 63.04(b) provides that applicants submitting a joint domestic/international

Section 214 application should include the information requested in paragraphs (a)(6) through

(a)(12) of Section 63.04.

Section 63.04(a)(6) – Description of the transaction:

         A description of the transaction and demonstration of how the transaction is in the public

interest is attached as Exhibit 1.

Section 63.04(a)(7) – Description of the geographic area in which the transferor and
transferee offer domestic telecommunications services, and what services are provided in
each area:

         A description of the geographic area in which the Transferor and Transferee offer

domestic telecommunications services, and a description of the services provided, is contained in

Exhibit 1.

Section 63.04(a)(8) – Statement as to how the Application qualifies for streamlined
treatment:

         The Applicants do not request streamlined treatment of the Applications because they

will be reviewed as part of a larger transaction that is not subject to streamlined treatment.

Section 63.04(a)(9) – Identification of all other Commission applications related to this
transaction:

         The Commission Applications related to this transaction are identified on pages 2-3 of

this narrative.

Section 63.04(a)(10) – Statement of whether the applicants request special consideration
because either party is facing imminent business failure:

         The Applicants do not request special consideration because no parties to this transaction

are facing imminent business failure.

6
    47 C.F.R. § 63.04.



                                                –7–


Section 63.04(a)(11) – Identification of any separately filed waiver requests being sought in
conjunction with this application:

       No separately filed waiver requests are sought in conjunction with this Application.

Section 63.04(a)(12) – Statement showing how grant of the Application will serve the public
interest, convenience and necessity:

       A demonstration of how the transaction is in the public interest is attached as Exhibit 1.

III.   CONCLUSION

       For the reasons stated above and in Exhibit 1, the Applicants respectfully request that the

Commission grant these Applications for consent to transfer control of SNET and SNET

America under Section 214 of the Act, and associated radio licenses, to Frontier.


                                           Respectfully submitted,

                                     By: FRONTIER COMMUNICATIONS
                                         CORPORATION

                                           /s/ Andrew Crain
                                           Senior Vice President, General Counsel
                                           Frontier Communications Corporation
                                           3 High Ridge Park
                                           Stamford, CT 06905

                                           Bryan N. Tramont
                                           David H. Solomon
                                           William F. Maher
                                           Jennifer L. Kostyu
                                           Wilkinson Barker Knauer, LLP
                                           2300 N Street, N.W. Suite 700
                                           Washington, D.C. 20037
                                           Counsel to Frontier Communications Corporation


                                     By: AT&T INC.

                                           /s/ John J. O’Connor
                                           Senior Vice President and Assistant General Counsel
                                           AT&T Inc.
                                           208 South Akard Street, Room 3301
                                           Dallas, TX 75202


                                              –8–


                          Robert C. Barber
                          Gary L. Phillips
                          Lori Fink
                          AT&T Services, Inc.
                          1120 20th Street, N.W. Suite 1000
                          Washington, D.C. 20036

                          Scott Feira
                          Arnold & Porter LLP
                          555 Twelfth Street, NW
                          Washington, DC 20004
                          Counsel for AT&T Inc.


Dated: January 31, 2014




                            –9–


EXHIBIT 1 TO APPLICATION

    Description of the Parties
  Description of the Transaction
    Public Interest Statement
     Administrative Matters


                                                TABLE OF CONTENTS


I.     INTRODUCTION .............................................................................................................. 1
II.    DESCRIPTION OF THE PARTIES .................................................................................. 4
       A.        Frontier .................................................................................................................... 4
       B.        AT&T ...................................................................................................................... 5
       C.        Qualifications .......................................................................................................... 6
III.   DESCRIPTION OF THE TRANSACTION ...................................................................... 6
IV.    PUBLIC INTEREST STATEMENT.................................................................................. 8
       A.        The Transaction Will Generate Substantial Public Interest Benefits.................... 10
                 1.         The Transaction Will Result In Improved Service to Connecticut
                            Customers. ................................................................................................ 10
                 2.         The Transaction Will Better Position Frontier As A Stronger Service
                            Provider and National Competitor, With Commensurate Benefits To Its
                            Existing and Future Customers. ................................................................ 12
       B.        The Transaction Will Increase and Not Reduce Competition Or Harm Retail Or
                 Wholesale Customers............................................................................................ 14
                 1.         The Transaction Will Increase Competition. ............................................ 14
                 2.         The Transaction Will Not Cause Any Disruption Or Harm To Retail Or
                            Wholesale Customers................................................................................ 15
V.     ADMINISTRATIVE MATTERS ..................................................................................... 17
       A.        Request For Approval Of Additional Authorizations ........................................... 17
       B.        Exemption from Cut-Off Rules ............................................................................ 18
       C.        Trafficking ............................................................................................................ 19
       D.        Ex Parte Status ...................................................................................................... 19
       E.        Other Filings ......................................................................................................... 20
VI.    CONCLUSION ................................................................................................................. 20


       Attachment A – List of FCC Authorizations and Wireless Licenses Being Transferred
       Attachment B – Chart Depicting Proposed Transaction




                                                                    i


I.       INTRODUCTION

         Frontier Communications Corporation (“Frontier”) and AT&T Inc. (“AT&T”)

(collectively the “Applicants”) hereby request Commission consent under Sections 214 and 310

of the Communications Act of 1934, as amended (the “Act”), 1 to transfer control of the FCC

authorizations and licenses of The Southern New England Telephone Company (“SNET”) and

SNET America, Inc. (“SNET America”) 2 from AT&T to Frontier. These include domestic and

international Section 214 authorizations and certain radio licenses held by SNET and/or SNET

America. Such consent is necessary to effect the transfer to Frontier of SNET’s local wireline

operations serving residential, small-business, and some enterprise customers in Connecticut,

and SNET America’s related long distance and calling card operations. Frontier will also

acquire AT&T's broadband and video operations in Connecticut as part of the transaction.

         The proposed transaction unequivocally advances the public interest. With this

transaction, residential and business customers in Connecticut – where Frontier has been

headquartered for more than 65 years – will become a key focus of Frontier’s efforts to provide

world-class customer service and service quality, through intense local engagement.

         Frontier is a wireline communications company that historically has been dedicated

primarily to serving smaller cities and rural areas, where it has a proven track record of success.

Following the 2010 acquisition of properties from Verizon, Frontier grew by two thirds and

expanded beyond its traditional rural footprint to encompass larger cities and suburbs of major

metropolitan areas. With the Connecticut transaction, Frontier will build on its prior success,

expand its footprint and emerge as a stronger multistate competitor serving a broader area,


1
    47 U.S.C. §§ 214, 310.
2
  The domestic and international FCC authorizations and wireless licenses being transferred are
listed in Attachment A.


generating substantial public interest benefits for all of its end users, in addition to consumers in

Connecticut. Expanding Frontier’s operations to Connecticut, a single contiguous service area

with about 900,000 voice connections, will strengthen Frontier’s nationwide position by creating

increased economies of scale and scope, thus enabling more efficient operations throughout its

service areas.

        Just as significantly, the transaction will strengthen Frontier as a broadband competitor.

Frontier anticipates that once fully implemented, the transaction will yield efficiencies in the

form of annual operating expense savings of $200 million from the consolidation of various

administrative functions and systems and lower prices on capital expenditures as a result of

Frontier’s greater purchasing power. This stronger financial structure and increased cash flow

will facilitate more significant investments in Frontier’s service areas, including in broadband

infrastructure, thus ensuring the presence of a strong, stable competitor across Frontier’s service

territory.

        Moreover, this transaction will be seamless for retail and wholesale customers. The

SNET and SNET America legal entities will remain. Existing retail and wholesale customers

will continue to receive substantially the same services on the same terms and conditions under

their existing contracts and tariffs. Interconnection agreements and collective bargaining

agreements also will not change as a result of the transaction. Where another AT&T entity has

contracted on behalf of SNET or SNET America and in the case of tariffs or contracts that cover

other AT&T entities as well as SNET or SNET America, Frontier and AT&T have agreed to

work in good faith to separate the portion of the shared contract or tariff that applies to SNET or

SNET America, and Frontier has agreed to honor and assume AT&T’s obligations and rights




                                                  2


under that portion of the contract or tariff. In addition, SNET will continue to comply with all of

the statutory obligations applicable to ILECs under Sections 251 and 252 of the Act. 3

         Frontier will transition the SNET and SNET America operations to its existing billing

and operations support systems (“OSS”) post closing, negating the need to build new systems

from scratch and avoiding a lengthy transition period for consumers. Frontier has a strong record

of successfully integrating operations and customers from other acquisitions, including 4 million

connections previously acquired from Verizon in 2010. In this case, the parties have agreed to

plan for and test the data transfer and integration process prior to conversion to ensure it occurs

smoothly and seamlessly. Thus, customers need not be concerned that their service will be

disrupted or otherwise adversely affected.

         Even as the proposed transaction generates these substantial benefits, it will not result in

any competitive harm and will actually strengthen competition in Connecticut. Frontier has no

current incumbent local exchange carrier (“ILEC”) or competitive local exchange carrier

(“CLEC”) operations in Connecticut. None of the local exchanges that Frontier is acquiring

from AT&T overlaps with, or is adjacent to, any of the local exchanges already served by

Frontier. Frontier and AT&T do not currently compete for customers in any of the affected

exchanges. The transaction will not reduce the number of competitors in any region. 4 To the

contrary, post transaction, Frontier and AT&T will be competing with each other in Connecticut

for both consumer and business customers.

         In sum, the proposed transaction will bring significant public interest benefits and will

not cause competitive harm. The Commission should approve the transaction.
3
    47 U.S.C. §§ 251, 252.
4
  As a part of the proposed transaction, Frontier will gain a limited number of SNET America’s
long distance customers, and calling card customers. Because AT&T and others will continue to
provide long distance services post-closing, the proposed transaction will not affect competition.

                                                   3


II.    DESCRIPTION OF THE PARTIES

       As described below, in this transaction Frontier plans to purchase from AT&T the stock

of SNET, the AT&T wireline subsidiary serving Connecticut, 5 and SNET’s long distance and

calling card affiliate, SNET America. 6

       A.      FRONTIER

       Frontier, a publicly traded corporation, is a full-service wireline communications

provider. Frontier provides an array of telecommunications and broadband services, including

local and long distance voice, broadband data, and video, through its wholly-owned operating

companies. Frontier currently serves approximately 3.1 million customers and has 1.8 million

broadband customers in 27 states, 7 in predominantly rural areas and smaller cities. 8 Frontier has

maintained its headquarters in Connecticut since 1946, and the company is an integral part of the

Connecticut community. 9 No individual or company owns or controls ten percent or more of

Frontier’s stock.



5
 SNET’s local exchange service area covers all of Connecticut except for two exchanges served
by Verizon in the far southwest corner of the state that are not involved in this transaction.
6
  SNET America has a de minimis number of long distance customers in California, Delaware,
the District of Columbia, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire,
New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina,
Tennessee, Texas, Utah, Virginia, Washington, and West Virginia. SNET America also provides
calling cards, which can be used for both long distance and local calling.
7
 Frontier’s current service territories are located in Alabama, Arizona, California, Florida,
Georgia, Idaho, Illinois, Indiana, Iowa, Michigan, Minnesota, Mississippi, Montana, Nebraska,
Nevada, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina,
Tennessee, Utah, Washington, West Virginia, and Wisconsin.
8
 As examples of small cities, Frontier serves Elk Grove, California, one of Sacramento’s fastest-
growing suburbs, and Burnsville, Minnesota and nearby towns in the Minneapolis suburbs.
Frontier’s largest city served is Rochester, New York, and its suburbs.
9
 See, e.g., Press Release, Frontier, Frontier Communications to Participate in Conn. Run for the
Fallen and Honor and Remember Event (Sept. 19, 2013), available at
http://investor.frontier.com/releasedetail.cfm?ReleaseID=791783; Frontier Communications is
                                                 4


       Frontier has a proven, successful track record of acquiring, operating, and investing in

telecommunications properties. Most recently, Frontier successfully integrated customers and

operations spanning 4 million voice connections in 14 states after the 2010 acquisition of

multiple Verizon local exchange territories. Indeed, Frontier has extensive experience – and

extensive success – in converting existing OSS and billing systems to Frontier’s platform.

       As an experienced provider of telecommunications and broadband services, Frontier has

long-established relationships with peers, partners, suppliers, regulators, and customers.

Frontier’s work force is 100 percent U.S.-based.

       Committed to innovation and expanded deployment and uptake of broadband, Frontier

has launched new products such as the award-winning Frontier Secure security product, 10 and

has launched a trial in three areas of Pay-As-You-Go Internet, a new offering that brings Frontier

high-speed Internet to customers in a prepaid format. Frontier offers a wide range of data

services, including consumer broadband utilizing fiber-to-the-home and fiber-to-the-node

architectures and business Ethernet products. Customer growth and improved service have been

the focus of Frontier’s operations, and the proposed transaction will enable Frontier to extend

and expand access to innovative products and high quality customer service.

       B.      AT&T

       AT&T, the transferor, is a leading provider of wireless, Wi-Fi, high-speed Internet, local

and long distance voice, mobile broadband, and advanced TV services, as well as worldwide

wireless coverage and IP-based business communications services.


focused on Memorial Day, available at http://frontier.com/careers/military-careers/frontier-
communications-is-focused-on-memorial-day (last visited Jan. 27, 2014).
10
   See Press Release, Frontier, Frontier Communications' Frontier Secure Wins F-Secure
Excellence Award (May 13, 2013), available at
http://investor.frontier.com/releasedetail.cfm?ReleaseID=764237.

                                                 5


       C.      QUALIFICATIONS

       The Commission has previously concluded that Frontier has the qualifications required

by the Act to control Commission licenses and authorizations,11 and nothing has changed to alter

this conclusion. The Commission also has concluded repeatedly that AT&T has the

qualifications required by the Act to control Commission authorizations,12 and nothing has

changed to disturb this conclusion.

III.   DESCRIPTION OF THE TRANSACTION

       On December 16, 2013, Frontier and AT&T entered into a Stock Purchase Agreement

(the “Agreement”). Under the Agreement, simultaneous with the closing of the transaction, (i)

AT&T will transfer to SNET and SNET America (the “Transferred Companies”) certain assets

and cause the Transferred Companies to assume certain liabilities relating to the business to be

acquired and (ii) the Transferred Companies will transfer to AT&T certain assets, and AT&T

will assume certain liabilities of the Transferred Companies, to be retained by AT&T following

the closing (the Transferred Companies, taking into account such transactions, being referred to



11
  See, e.g., Applications Filed by Frontier Commc’ns Corp. and Verizon Commc’ns Inc. for
Assignment or Transfer of Control, Memorandum Opinion and Order, 25 FCC Rcd 5972, 5979,
5981-83 ¶¶ 13-14, 21-25 (2010) (“Frontier-Verizon Order”).
12
  See, e.g., Applications of AT&T Inc. and Atlantic Tele-Network, Inc., for Consent to Transfer
Control of and Assign Licenses and Authorizations, WT Dkt No. 13-54, Memorandum Opinion
and Order, DA 13-1940, ¶ 17 (WTB rel. Sept. 20, 2013); Applications of AT&T Inc., Cellco
Partnership d/b/a Verizon Wireless, Grain Spectrum, LLC, and Grain Spectrum II, LLC, for
Consent to Assign and Lease AWS-1 and Lower 700 MHz Licenses, WT Dkt No. 13-56,
Memorandum Opinion and Order, DA 13-1854, ¶ 17 (WTB rel. Sept. 3, 2013); Application of
AT&T Inc. and Qualcomm Inc. for Consent to Assign Licenses and Authorizations, Order, 26
FCC Rcd 17589, 17601 ¶ 28 (2011); Applications of AT&T Inc. and Cellco P’ship d/b/a Verizon
Wireless for Consent to Assign or Transfer Control of Licenses and Authorizations and Modify a
Spectrum Leasing Arrangement, Memorandum Opinion and Order, 25 FCC Rcd 8704, 8720 ¶ 29
(2010); Applications of AT&T Inc. and Centennial Commc’ns Corp. for Consent to Transfer
Control of Licenses, Authorizations and Spectrum Leasing Arrangements, Memorandum
Opinion and Order, 24 FCC Rcd 13915, 13931 ¶ 33 (2009).

                                                6


as the “Transferred Business”). At closing, Frontier will pay $2 billion in cash for the stock of

SNET and SNET America, and the Transferred Companies will have no debt.

       The transaction will transfer ownership of SNET and its incumbent local exchange, retail

broadband, and video businesses in Connecticut from AT&T to Frontier. These operations

include approximately 900,000 access line customers (about 60 percent of which are residential

switched and VoIP customers and about 40 percent of which are business customers);

approximately 415,000 broadband customers, and approximately 180,000 video customers in

Connecticut. The transaction also will transfer to Frontier ownership of SNET America. SNET

America provides interexchange and international calling and calling card services. 13

       Upon completion of the transaction, SNET and SNET America will become wholly-

owned subsidiaries of Frontier. Current Frontier management will manage and control the day-

to-day operations of Frontier and its operating subsidiaries, including the Transferred Companies

and Transferred Business, as well as Frontier’s current businesses.

       The transaction does not include the other AT&T operations in Connecticut, such as

those of AT&T Mobility and AT&T Corp. AT&T Mobility will continue to provide wireless

service in Connecticut, and AT&T Corp. will continue to serve enterprise customers in the state.

In essence, upon completion of this transaction, the wireline operations in Connecticut of AT&T

Corp. that predate its 2005 merger with SBC Communications, Inc. will remain with AT&T. 14

Thus, the majority of AT&T’s existing enterprise wireline customers in Connecticut and

AT&T’s CLEC operations in Connecticut (which are not part of SNET or SNET America) will



13
  The Applicants will comply with any applicable anti-slamming requirements in the
Commission’s rules that arise from the transaction. See 47 C.F.R. § 64.1100 et seq.
14
 See SBC Commc’ns Inc. and AT&T Corp. Applications for Approval of Transfer of Control,
Memorandum Opinion and Order, 20 FCC Rcd 18290 (2005) (“SBC-AT&T Order”).

                                                 7


remain with AT&T. 15 Frontier therefore will compete with the wireless, enterprise and CLEC

operations that AT&T will retain in Connecticut, enhancing the competitive landscape in the

state.

         A corporate organizational chart depicting the proposed transaction is attached as

Attachment B.

IV.      PUBLIC INTEREST STATEMENT

         This transaction will generate substantial public interest benefits in Connecticut and

across Frontier’s service areas, with no countervailing harms, and therefore warrants approval.

Section 214(a) and 310(d) of the Act require the Commission to determine whether the proposed

transfers of control and assignment of Commission licenses and authorizations are consistent

with the public interest, convenience, and necessity. 16

         The proposed transaction fully satisfies the public interest standard. The Commission

considers four questions in making its public interest assessment: “(1) whether the transaction

would result in the violation of the Act or any other applicable statutory provision; (2) whether

the transaction would result in a violation of Commission rules; (3) whether the transaction


15
  To facilitate the orderly division and provision of services, a limited quantity of assets will be
exchanged between SNET and non-transferring AT&T entities.
16
  See, e.g., Frontier-Verizon Order, 25 FCC Rcd at 5976-77 ¶ 9; Applications for Consent to the
Assignment and/or Transfer of Control of Licenses Time Warner Inc. to Time Warner Cable,
Inc., Memorandum Opinion and Order, 24 FCC Rcd 879, 884-85 ¶ 10 (2009); SBC-AT&T
Order, 20 FCC Rcd at 18300-01 ¶ 16; Verizon Commc’ns Inc. and MCI, Inc. Applications for
Approval of Transfer of Control, Memorandum Opinion and Order, 20 FCC Rcd 18433, 18442-
43 ¶ 16 (2005) (“Verizon-MCI Order”); Applications of Nextel Commc’ns, Inc. and Sprint Corp.
For Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and
Order, 20 FCC Rcd 13967, 13976-77 ¶ 20 (2005) (“Sprint-Nextel Order”); Applications of AT&T
Wireless Services, Inc. and Cingular Wireless Corp. For Consent to Transfer Control of Licenses
and Authorizations, Memorandum Opinion and Order, 19 FCC Rcd 21522, 21542-44 ¶ 40
(2004) (“AT&T-Cingular Order”); General Motors Corp. and Hughes Electronics Corp. and
The News Corp. Ltd. for Authority to Transfer Control, Memorandum Opinion and Order, 19
FCC Rcd 473, 483 ¶ 15 (2004).

                                                  8


would substantially frustrate or impair the Commission’s implementation or enforcement of the

Act or interfere with the objectives of that and other statutes; and (4) whether the transaction

promises to yield affirmative public interest benefits.” 17

       As demonstrated below, the proposed transaction satisfies all four prongs of the

Commission’s test. With regard to the first two prongs of the Commission’s test, the Application

and accompanying materials show that this transaction does not violate any provision of the Act

or any Commission rule. In assessing the latter two prongs of this test, the Commission

considers whether a proposed transaction could result in public interest harms by determining

whether it would “substantially frustrate or impair” the objectives or implementation of the Act

or related statutes. 18 It then “employs a balancing test weighing any potential public interest

harms of a proposed transaction against any potential public interest benefits to ensure that, on

balance, the proposed transaction will serve the public interest.” 19 Here again, the latter two


17
  See SBC Commc’ns Inc. and BellSouth Corp. for Consent to Transfer of Control or
Assignment of Licenses and Authorizations, Memorandum Opinion and Order, 15 FCC Rcd
25459, 25464 ¶ 13 (WTB/IB 2000); Ameritech Corp. and SBC Commc’ns Inc., Memorandum
Opinion and Order, 14 FCC Rcd 14712, 14737-38 ¶ 48 (1999); see, e.g., Frontier-Verizon
Order, 25 FCC Rcd at 5976-77 ¶ 9; Applications filed by Qwest Commc’ns Int’l Inc. and
CenturyTel, Inc. d/b/a CenturyLink For Consent to Transfer of Control, Memorandum Opinion
and Order, 26 FCC Rcd 4194, 4198-99, ¶ 7 (2011) (“Qwest-CenturyLink Order”); SBC-AT&T
Order, 20 FCC Rcd at 18300-01 ¶ 16.
18
  See, e.g., Qwest-CenturyLink Order, 26 FCC Rcd at 4198-99 ¶ 7; Frontier-Verizon Order, 25
FCC Rcd at 5976-77 ¶ 9; Applications of Midwest Wireless Holdings, L.L.C. and ALLTEL
Commc’ns, Inc. For Consent to Transfer Control of Licenses and Authorizations, Memorandum
Opinion and Order, 21 FCC Rcd 11526, 11535 ¶ 16 (2006) (“ALLTEL-Midwest Order”); SBC-
AT&T Order, 20 FCC Rcd at 18300-01 ¶ 16; Verizon-MCI Order, 20 FCC Rcd at 18442-43 ¶ 16;
Sprint-Nextel Order, 20 FCC Rcd at 13976-77 ¶ 20.
19
  See ALLTEL-Midwest Order, 21 FCC Rcd at 11535 ¶ 16; see, e.g., Frontier-Verizon Order, 25
FCC Rcd at 5976-77 ¶ 9; Qwest-CenturyLink Order, 26 FCC Rcd at 4198-99 ¶ 7; Applications of
Nextel Partners, Inc., Nextel WIP Corp. and Sprint Nextel Corp., For Consent To Transfer
Control of Licenses and Authorizations, Memorandum Opinion and Order, 21 FCC Rcd 7358,
7360 ¶ 7 (2006); SBC-AT&T Order, 20 FCC Rcd at 18300-01 ¶ 16; Verizon-MCI Order, 20 FCC
Rcd at 18442-43 ¶ 16; Sprint-Nextel Order, 20 FCC Rcd at 13976-77 ¶ 20; Applications of
Western Wireless Corp. and ALLTEL Corp. For Consent to Transfer Control of Licenses and
                                                  9


prongs of the test are met, as the proposed transaction will yield substantial public interest

benefits and result in no material harms – and in particular no competitive harms – thus amply

demonstrating that the proposed transaction serves the public interest.

       A.      THE TRANSACTION WILL GENERATE SUBSTANTIAL PUBLIC
               INTEREST BENEFITS.

               1.      THE TRANSACTION WILL RESULT IN IMPROVED SERVICE TO
                       CONNECTICUT CUSTOMERS.

       The transaction will enhance service to customers in Connecticut. Frontier has long

followed a policy of intensive local engagement 20 in its operating territories, and will apply this

practice in Connecticut. Indeed, Frontier already has very strong roots in the state. As noted

above, Frontier has made its headquarters in Connecticut for over 65 years. Approximately 200

employees already work at Frontier’s headquarters in Stamford, and Frontier plans to keep its

headquarters in Connecticut for the foreseeable future. Frontier is committed to improving

service in its home state and expanding its engagement throughout the state’s communities.

       Connecticut customers also will benefit from the enhanced competition that will result

from this transaction. As noted, after the transaction is completed, AT&T will retain all of its

wireless operations as well as some CLEC operations in the state and, in particular, will continue

to serve some large enterprise customers. Customers in the state thus will benefit from the

competition resulting from the presence of both Frontier and AT&T. As the Commission has




Authorizations, Memorandum Opinion and Order, 20 FCC Rcd 13053, 13062-63 ¶ 17 (2005);
AT&T- Cingular Order, 19 FCC Rcd at 21542-44 ¶ 40.
20
  Under Frontier’s “local engagement” management model, Frontier employees in Connecticut
will live locally and provide high-quality service to their friends and neighbors, while being
actively involved in their communities. Frontier’s operations in Connecticut will be led by local
general managers and a state leader.

                                                 10


long recognized, competition facilitates improved service, more choices, new products, and

lower prices. 21

        Upon completion of the transaction, Connecticut will be the largest of Frontier’s service

territories. As such, Connecticut will be a focal point of Frontier’s competitive business and

customer strategy. Frontier will focus on customer service and service quality, disaster

preparedness, and a smooth transition for retail and wholesale customers in Connecticut.

        Customer service is a vital part of Frontier’s business plan and strategy, and the company

has a strong record on overall customer retention and satisfaction. Its local engagement

approach includes the use of local general managers and innovative marketing programs,

allowing the company to remain flexible and focus on the unique characteristics and needs of,

and bring a wide range of products and services to, residential and commercial customers in each

community. Thus, customers benefit from the advantages of service from a large company while

retaining the close working relationships of a small company. The local general managers

engage with their communities, determine where and how to deploy resources during natural

disasters, engage with community leaders on issues of interest to the local population, and

provide a local contact for customers.

        Frontier also has a proven track record of improving customer service in its acquired

service areas. Indeed, an operational priority for Frontier in Connecticut will be to maintain and
21
  See, e.g., Applications for Consent to the Transfer of Control of Licenses and Section 214
Authorizations by Time Warner Inc. and America Online, Inc. to AOL Time Warner, Inc.,
Memorandum Opinion and Order, 18 FCC Rcd 16835, 16839-40 ¶ 12 (2003) (“The Commission
has continually recognized competition as an important policy objective for communications
services, bringing consumer benefits of increased choice, lower prices, improved service, and
new product offerings.”); Implementation of Section 6002(b) of the Omnibus Budget
Reconciliation Act of 1993: Annual Report and Analysis of Competitive Market Conditions With
Respect to Commercial Mobile Services, Eighth Report, 18 FCC Rcd 14783, 14792 ¶ 13 (2003)
(enhanced competition benefits consumers by “increasing customer choice, offering innovative
services, and introducing new technologies”).

                                                11


improve service quality. Frontier will maintain and continue to invest in existing facilities and

operations in Connecticut to ensure that improved speeds and capacity are delivered to customers

across the state at reasonable prices. Frontier sells broadband services at highly competitive

prices, without requiring customers to sign annual contracts – its basic level broadband service

(usually 6 Mbps) is $29.99 per month, and $19.99 per month when bundled with voice service.

Customers can easily upgrade to a higher speed tier for only an additional $10 per month.

         As further discussed below, full conversion of AT&T's Connecticut operations onto

Frontier's existing systems and networks is planned post closing. Frontier has successfully

completed numerous complex system and network migrations. Frontier’s most recent

conversion, after its 2010 transaction with Verizon, 22 covered operations across 14 states and

was completed approximately one year ahead of schedule. Frontier expects to invest more than

$225 million into the integration process to ensure a seamless transition of the Transferred

Business.

                2.      THE TRANSACTION WILL BETTER POSITION FRONTIER AS A STRONGER
                        SERVICE PROVIDER AND NATIONAL COMPETITOR, WITH
                        COMMENSURATE BENEFITS TO ITS EXISTING AND FUTURE CUSTOMERS.

         The proposed transaction will enhance Frontier’s ability to serve customers in all 28

states in which it will operate as an ILEC after the merger. Frontier’s predominant business

focus is delivering high quality wireline broadband services over its own networks in rural

America and in smaller cities. Connecticut’s urban, suburban and rural markets will complement

Frontier’s existing diverse mix of markets, and post-transaction the company will continue to be

the largest U.S. carrier serving predominantly rural and smaller city areas. Frontier is committed

to improving the customer experience across all service areas.


22
     See Frontier-Verizon Order, 25 FCC Rcd 5972.

                                                 12


          This acquisition will result in a larger and more robust carrier, thus ensuring over the long

term that Frontier will have the financial capability to increase broadband investment and

penetration, provide better service, and become a stronger competitor throughout its service

areas. The transaction will improve Frontier’s overall financial flexibility and stability by

promoting its policy of providing stable dividends to shareholders and by being accretive to free

cash flow in the first year after closing. The transaction also will limit Frontier’s debt leverage.

Once the transaction closes, Frontier’s net debt to EBITDA ratio is expected to increase by only

0.4 percent, and that ratio is expected to fall below its current rate as ongoing synergies are

achieved. 23 When the proposed transaction is fully implemented, Frontier expects to realize

annual operating expense savings of $200 million. The Commission has long recognized that

these types of efficiencies are public interest benefits. 24 Here, these savings will be

accomplished by consolidating various administrative and procurement functions, network

monitoring and information support systems, and finance and accounting processes, reducing

corporate overhead, and increasing the company’s overall purchasing power and economies of

scale. 25 Frontier has a proven track record of achieving such synergies. Indeed, the 2010




23
     EBITDA is earnings before interest, taxes, depreciation and amortization.
24
   See, e.g., Frontier-Verizon Order, 25 FCC Rcd at 5995 ¶ 57; AT&T Inc. and BellSouth Corp.
Application for Transfer of Control, Memorandum Opinion and Order, 22 FCC Rcd 5662, 5768-
70 ¶¶ 214-215 (2007) (crediting economies of scope and scale and cost synergies as public
interest benefits); Joint Applications of Telephone and Data Systems, Inc. and Chorus
Commc’ns, Ltd. For Authority to Transfer Control of Commission Licenses and Authorizations
Pursuant to Sections 214 and 310(d) of the Communications Act and Parts 22, 63 and 90 of the
Commission’s Rules, Memorandum Opinion and Order, 16 FCC Rcd 15293, 15299 ¶ 11
(CCB/WTB 2001) (citing “economic and operational efficiencies” as supporting a finding that
transaction was in the public interest).
25
  Frontier estimates that integrating the Transferred Business should upon closing create savings
of $75 million, with an additional $125 million of cost savings within three years.

                                                   13


Verizon transaction exceeded the planned $500 million operating savings, as Frontier in fact

achieved 130 percent of its projected cost reductions.

       The savings will further strengthen Frontier’s ability to provide services to consumers

throughout its service areas and add to Frontier’s financial strength to support its broadband

network investment plans. Frontier’s broadband offering speeds continue to increase, with

broadband speeds of 20 Mbps or more available to 45 percent of households in its existing

service areas, and broadband speeds of 12 Mbps being available to almost 60 percent of those

households.

       B.      THE TRANSACTION WILL INCREASE AND NOT REDUCE
               COMPETITION OR HARM RETAIL OR WHOLESALE CUSTOMERS.

       In addition to the public interest benefits discussed above, the transaction will neither

reduce competition nor create billing or service disruptions or otherwise harm existing

customers.

               1.      THE TRANSACTION WILL INCREASE COMPETITION.

       The transaction will actually increase the number of competitors in Connecticut. None of

the local exchanges being acquired by Frontier in this transaction overlap with or are adjacent to

any of the local exchanges already served by Frontier. Indeed, Frontier has no current ILEC or

CLEC operations in Connecticut. Therefore, Frontier and SNET do not compete for customers

in any of the affected exchanges. Prior to this transaction, Frontier also had no plans for

expanding operations into Connecticut. Thus, the transaction will not eliminate the possibility of

a future new competitor in that state. In fact, because AT&T is keeping its Connecticut

operations serving enterprise customers, as well as all of its wireless operations, this transaction

will increase local exchange competition in Connecticut as Frontier enters the market.




                                                 14


       Frontier’s acquisition of SNET America also will have no impact on competition in long

distance services. The Commission has long acknowledged that competition to offer

interexchange services is intense. 26 SNET America has a minimal role in the long distance

marketplace. AT&T also will continue to provide long distance services nationwide after

closing. Thus, post-closing consumers will continue to have a wide range of competitive choices

for long distance service providers.

               2.      THE TRANSACTION WILL NOT CAUSE ANY DISRUPTION OR HARM TO
                       RETAIL OR WHOLESALE CUSTOMERS.

       Upon consummation, existing retail and wholesale customers will continue to receive

substantially the same services on the same terms and conditions under their existing contracts

and tariffs. In addition, the transfer will be coordinated and subject to pre-planning and testing to

ensure a smooth transition. Accordingly, customers will not be harmed by the transaction and

will benefit from the presence of a service provider headquartered in and committed to the state.

       With respect to retail customers, Frontier will continue to provide substantially the same

local exchange and domestic interstate and international interexchange telecommunications and

information services after the closing of the transaction. Moreover, Frontier will introduce in

Connecticut its branded products and services, such as its High-Speed Internet Service, which, as

noted above, is offered at highly competitive prices, without requiring customers to sign annual

contracts.




26
   See, e.g., SBC-AT&T Order, 20 FCC Rcd at 18368-71 ¶¶ 146-152 (noting presence of
extensive national networks with excess capacity); see also id. at 18342 ¶ 91 (noting
“significance evidence in the record that long distance service purchased on a stand-alone basis
is becoming a fringe market”).

                                                 15


       Frontier will honor existing tariffs and contracts to make the transition seamless for retail

customers. In fact, because the SNET corporate entity will remain, most contracts and tariffs

will not be impacted by the transaction.

       Wholesale customer arrangements also will remain substantially the same as a result of

this transaction. To the extent that SNET is the contracting party, interconnection agreements

will not be affected. To the extent that another AT&T entity contracted on behalf of SNET,

Frontier will assume those interconnection agreements that relate to service wholly within

Connecticut. Interconnection agreements of SNET relating in part to service outside of

Connecticut will need to be modified to apply to Frontier and the other party in Connecticut

only, or those agreements will be replicated by Frontier with respect to Connecticut, following

discussion with and required notice to the affected parties. In the latter cases, however, Frontier

stands ready to put in place new interconnection agreements on substantially the same terms and

conditions, so as not to disrupt existing arrangements.

       In cases where another AT&T entity has contracted on behalf of SNET or SNET America

and in the case of tariffs or contracts that cover other AT&T entities as well as SNET or SNET

America, Frontier and AT&T have agreed to work in good faith to separate the portion of the

shared contract or tariff that applies to SNET or SNET America, and Frontier has agreed to

honor and assume AT&T’s obligations and rights under that portion of the contract or tariff. 27

       As explained above, Frontier and AT&T also have in place a plan for the seamless

transition of OSS and billing systems so that neither retail nor wholesale customers will

experience disruptions in service, ordering, or billing. Post closing, AT&T’s Connecticut
27
  As a general rule, because SNET was not the beneficiary of volume or minimum purchase
commitments that applied across AT&T subsidiaries under those shared contracts or tariffs,
minimum purchase or volume commitments will not be assigned to SNET or Frontier, except
those that are specific to SNET.

                                                16


operations will be converted onto Frontier's existing systems and networks. Frontier has the

administrative and technical resources and experience to undertake the transition. Its existing

billing and operations systems also are scalable so they will be able to accommodate the

Transferred Business. Frontier has had consistent success in numerous complex system and

network migrations. The company has consolidated seven different billing systems into one over

the past seven years, which involved six million access lines. Frontier’s most recent conversion,

after its 2010 transaction with Verizon, covered operations across 14 states and was completed

approximately one year ahead of schedule, and included the successful switch over of operations

in West Virginia.

       Frontier is also acquiring AT&T’s broadband business in Connecticut, including its

existing video business in Connecticut. Frontier will continue to provide video services in

affected areas after the completion of the merger. Frontier will obtain content rights before

closing and continue to offer customers substantially the same content available today, and

AT&T will provide transport to support the service.

V.     ADMINISTRATIVE MATTERS

       A.      REQUEST FOR APPROVAL OF ADDITIONAL AUTHORIZATIONS

       The list of call signs and file numbers referenced in Attachment A is intended to be

complete and to include all of the licenses and authorizations held by the respective licensees

that are subject to the transaction. SNET and SNET America, however, may now have on file,

and may hereafter file, additional requests for authorizations for new or modified facilities

related to the assets to be transferred to Frontier, which may be granted before the Commission

takes action on these applications. Accordingly, the Applicants request that any Commission

approval of the applications filed for this transaction include authority for Frontier to acquire

control of the following:

                                                 17


Any license or authorization issued to SNET and/or SNET America during the Commission’s
consideration of the applications and the period required for consummation of the transaction following
approval;

Any construction permits held by SNET and/or SNET America that mature into licenses after closing;
and

Applications that are filed after the date of these applications and that are pending at the time of
consummation.

          Such authorization would be consistent with Commission precedent. 28 Moreover, the

parties request that the Commission’s approval of the applications include any facilities that may

have been inadvertently omitted.

          B.     EXEMPTION FROM CUT-OFF RULES

          Pursuant to Sections 1.927(h), 1.929(a)(2) and 1.933(b) of the Commission’s rules, 29 to

the extent necessary, 30 the Applicants request a blanket exemption from any applicable cut-off

rules in cases where Frontier files amendments to pending applications to reflect consummation

28
  See Qwest-CenturyLink Order, 26 FCC Rcd at 4214-15 ¶ 46; Frontier-Verizon Order, 25 FCC
Rcd at 5996 ¶ 64; AT&T-Cingular Order, 19 FCC Rcd at 21626 ¶ 275; Application of
WorldCom, Inc., and MCI Commc’ns Corp. for Transfer of Control of MCI Commc’ns Corp. to
WorldCom, Inc., Memorandum Opinion and Order, 13 FCC Rcd 18025, 18153 ¶ 226 (1998);
NYNEX Corp. and Bell Atlantic Corp. for Consent to Transfer Control of NYNEX Corp. and Its
Subsidiaries, Memorandum Opinion and Order, 12 FCC Rcd 19985, 20097 ¶ 247 (1997); Craig
O. McCaw and Am. Tel. and Telegraph Co. For Consent to the Transfer of Control of McCaw
Cellular Commc’ns, Inc. and its Subsidiaries, Memorandum Opinion and Order, 9 FCC Rcd
5836, 5909 ¶ 137 n.300 (1994) (“McCaw-AT&T Order”).
29
     47 C.F.R. §§ 1.927(h), 1.929(a)(2), and 1.933(b).
30
  See Sprint Nextel Corp. and Clearwire Corp. Applications for Consent to Transfer Control of
Licenses, Leases, and Authorizations, Memorandum Opinion and Order, 23 FCC Rcd 17570,
17611 ¶ 105 (2008) (“Sprint-Clearwire Order”). With respect to cut-off rules under Sections
1.927(h) and 1.929(a)(2), the Commission has previously found that the public notice
announcing the transaction will provide adequate notice to the public with respect to the licenses
involved, including for any license modifications pending. In such cases, it determined that a
blanket exemption of the cut-off rules was unnecessary. See Ameritech Corp. and GTE
Consumer Services Inc. For Consent to Transfer Control of Licenses and Authorizations,
Memorandum Opinion and Order, 15 FCC Rcd 6667, 6668 ¶ 2 n.6 (WTB 1999); Comcast
Cellular Holdings, Co. and SBC Commc’ns, Inc. For Consent to Transfer Control of Licenses
and Authorizations, Memorandum Opinion and Order, 14 FCC Rcd 10604, 10605 ¶ 2 n.3 (WTB
1999).

                                                      18


of the proposed transfer of control. This exemption is requested so that amendments to pending

applications to report the change in ultimate ownership of these licenses would not be treated as

major amendments. The scope of the transaction demonstrates that the ownership change would

not be made for the acquisition of any particular pending application, but as part of a larger

transaction undertaken for an independent and legitimate business purpose. Grant of such

application would be consistent with previous Commission decisions routinely granting a blanket

exemption in cases involving similar transactions. 31

          C.     TRAFFICKING

          To the extent authorizations for unconstructed systems are covered by this transaction,

these authorizations are merely incidental, with no separate payment being made for any

individual authorization or facility. Accordingly, this transaction raises no trafficking issues, and

there is no reason to review the transaction for trafficking.

          D.     EX PARTE STATUS

          The Applicants request that the Commission treat this proceeding as permit-but-disclose

pursuant to Section 1.1206 of the Commission's rules. 32 The public interest in expeditiously

considering these applications would be served by the flexibility permitted by permit-but-

disclose procedures. 33




31
  See, e.g., Sprint-Clearwire Order, 23 FCC Rcd at 17611 ¶105; PacifiCorp Holdings, Inc. and
Century Tel. Enterprises, Inc. For Consent to Transfer Control of Pacific Telecom, Inc., a
Subsidiary of PacifiCorp Holdings, Inc., Memorandum Opinion and Order, 13 FCC Rcd 8891,
8915-16 ¶ 47 (WTB 1997); McCaw-AT&T Order, 9 FCC Rcd 5909 ¶ 137 n.300.
32
     See 47 C.F.R. § 1.1206.
33
  Pursuant to Section 1.1200(a) of the Commission’s rules, the Commission may adopt modified
ex parte procedures in particular proceedings if the public interest so requires. See 47 C.F.R. §
1.1200(a).

                                                  19


       E.      OTHER FILINGS

       In connection with this transaction, the parties are making filings with the Federal Trade

Commission and U.S. Department Justice pursuant to the Hart-Scott-Rodino Antitrust

Improvements Act, the Connecticut Public Utilities Regulatory Authority, and other state

regulatory authorities as required.

VI.    CONCLUSION

       For the reasons above, the Applicants respectfully submit that the grant of these

applications will serve the public interest, convenience, and necessity, and thus warrant favorable

Commission action.




                                                20


                                            Attachment A

                         LIST OF FCC AUTHORIZATIONS AND
                       WIRELESS LICENSES BEING TRANSFERRED

 The Southern New England Telephone Company

        •   Blanket Domestic Section 214 Authority

        •   Common Carrier Fixed Point-to-Point Microwave -- KCB95

        •   Industrial/Business Pool, Conventional -- WNJN897


 SNET America, Inc.

        •   Blanket Domestic Section 214 Authority

        •   International Section 214 Authorizations - ITC-214-19930716-00119, ITC-214-
            19950215-00064, and ITC-214-19960223-00083 (as modified by ITC-MOD-
            20041129-00487*)




* The transfer of control of File No. ITC-MOD-20041129-00487 should be considered a “partial” transfer
of control that does not impact the operating authority of any entities that may be covered by the Section
214 modification other than SNET America.


                          Attachment B



             Pre-Transaction Ownership Structure




                          AT&T Inc.




                                         The Southern New
AT&T Teleholdings, Inc.                  England Telephone
                                             Company




 SNET America, Inc.


          Post-Transaction Ownership Structure




               Frontier Communications
                     Corporation




                                     The Southern New
SNET America, Inc.                   England Telephone
                                         Company



Document Created: 2014-01-31 14:26:10
Document Modified: 2014-01-31 14:26:10

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