Hibernia - 1_767j No

LETTER submitted by Hibernia NGS Limited

Letter re: 63.18(j) Notice to State Department

2014-09-18

This document pretains to ITC-T/C-20140820-00244 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2014082000244_1061487

                                          KELLEY DRYE & W ARREN                                LLP
                                                   A LI MIT E D LIA BI LIT Y P ART NER SHI P




                                          WASHI NGT ON HARBOUR, SUIT E 40 0
   NEW   YO RK,      NY                                                                                       F ACSIM I LE

 LOS   A NGE LES,       CA                        3050 K STREET , NW                                       ( 202)   342 - 8451

    CHI CAGO,     I L                                                                                     www.kelleydrye.com
                                            WASHI NGT ON, D. C. 20 007- 5108
   S TAM FORD,       CT

  P A RSI PP A NY,      NJ
                                                         (202) 342-8400

B RUS SE LS,   BE LGI UM
                                                                                                     DIRECT L INE: (202) 3 42-8614

                                                                                                     EMA IL: ds mi th@kelleyd rye.co m
   AFFILIATE OFFICES

    MUMBAI, INDIA




                                                  September 17, 2014



BY IBFS

Ms. Sumita Mukhoty
International Bureau
Federal Communications Commission
445 12th Street, SW
Washington, D.C. 20554

                          Re:   Transfer of Control of Hibernia Atlantic U.S. LLC and Hibernia Media, LLC to
                                KCK Limited, ITC-T/C-20140820-00242; ITC-T/C-20140820-00244; SCL-
                                T/C-20140820-00007

Dear Ms. Mukhoty:

                Attached please find a copy of the September 12, 2014 letter submitted to the U.S.
Department of State, U.S. Department of Commerce and Defense Information Systems Agency. That
letter, submitted pursuant to Section 1.767(j) of the Federal Communications Commission’s (“FCC”)
rules, 47 C.F.R. § 1.767(j), provided a copy of the Application for the transfer of control of Hibernia
Atlantic U.S. LLC and Hibernia Media, LLC to Murosa Development S.A.R.L. and KCK Limited that
was filed with the FCC on August 20, 2014.

                Please contact the undersigned at (202) 342-8614 should you have any questions
regarding this letter.

                                                                Respectfully submitted,




                                                                Denise N. Smith
                                                                Counsel to Hibernia Atlantic US LLC, Hibernia
                                                                Media, LLC and Columbia Ventures Corporation


                                   KELLEY DRYE & WARREN                       LLP
                                            A LIMITED LIABILITY PARTNERSHIP




                                   WASHINGTON HARBOUR, SUITE 400
  NEW YORK, NY                                                                                         FACSIMILE

 LOS ANGELES, CA                           3050 K STREET, NW                                        (202) 342-8451

   CHICAGO, IL                                                                                     www. kelleyd rye. corn
                                     WASHINGTON, D.C. 20007-5108
  STAMFORD, CT

 PARSIPPANY, NJ
                                                (202) 342-8400


BRUSSELS, BELGIUM
                                                                                             DIRECT LINE: (202) 342-8614

                                                                                             EMAIL: dsmith@kelleydrye.com
  AFFILIATE OFFICES
   MUMBAI, INDIA




                                           September 12, 2014



  BY OVERNIGHT DELIVERY



  U.S. Coordinator                                           Office of Chief Counsel/NTIA
  EB/CIP                                                     U.S. Department of Commerce
  U.S. Department of State                                   14th St. and Constitution Ave., NW.
  2201 C Street, NW.                                         Washington, DC 20230
  Washington, DC 20520-5818

  Defense Information Systems Agency
  ATTN: GC/D01
  6910 Cooper Avenue
  Fort Meade, MD 20755-7088



                      Re:   Transfer of Control of Hibernia Atlantic U.S. LLC and Hibernia Media,
                            LLC to KCK Limited, ITC-T/C-20140820-00242; ITC-T/C-20140820-
                            00244; SCL-T/C-20140820-00007

  Dear Sir or Madam:

                  Pursuant to Section 1.767(j) of the Federal Communications Commission's
   ("FCC") rules, 47 C.F.R. § 1.767(j), attached please find a copy of an Application for the transfer
   of control of Hibernia Atlantic U.S. LLC ("Hibernia Atlantic") and Hibernia Media, LLC
   ("Hibernia Media") to Murosa Development S.A.R.L. ("Murosa") and KCK Limited ("KCK").

                   On August 20, 2014, the Application was filed with the FCC requesting approval
   of a transaction that will result in the transfer of control of Hibernia Atlantic and Hibernia Media
   from Columbia Ventures Corporation ("CVC") to Murosa and KCK (collectively the
   "Applicants"). Hibernia Atlantic and Hibernia Media each hold both domestic and international
   operating authority as common carriers under Section 214 of the Communications Act of 1934,
   as amended, and Hibernia Atlantic also holds a submarine cable landing license.


                             KELLEY DRYE & WARREN             LLP




U.S. Department of State
U.S. Department of Commerce
Defense Information Systems Agency
September 12, 2014
Page 2


              Service of this Application was inadvertently not made at the time the Application
was submitted to the FCC.

               Questions regarding this filing should be directed to the undersigned at (202) 342-
8400.



                                                 Respectfully submitted,



                                                       —0(it,e4e,
                                                 Denise N. Smith
                                                 Counsel to Hibernia Atlantic US LLC, Hibernia
                                                 Media, LLC and Columbia Ventures
                                                 Corporation


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


In the Matter of                             )
                                             )
Columbia Ventures Corporation                )
                                             )
Transferors                                  )             WC Docket No. _______
                                             )
                                             )
and                                          )             IB File No. __________
KCK Limited and                              )
Murosa Development S. À R.L.                 )
                                             )             SCL File No.
    Transferees                              )
                                             )
Application for Consent to Transfer Control  )
of Companies Holding International Section   )
214 Authority, Blanket Domestic Section      )
214 Authority, and a Submarine Cable Landing )
License Pursuant to Section 214 of the       )
Communications Act of 1934, as Amended       )


              JOINT DOMESTIC AND INTERNATIONAL APPLICATION

       Columbia Ventures Corporation (“CVC”), KCK Limited (“KCK”) and Murosa

Development S.À R.L. (“Murosa”), (collectively the “Applicants”) hereby respectfully request

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

and Sections 1.767, 63.03, 63.04 and 63.24(e) of the Federal Communications Commission’s

(“FCC” or “Commission”) Rules,2 to transfer control of Hibernia Atlantic U.S. LLC (“HB

Atlantic”) and Hibernia Media, LLC (“HB Media”) to KCK. By agreements among Murosa,

KCK, CVC and CVC III Hibernia Blocker Inc. (“CV Hibernia”), a three-stage transaction is

contemplated (the “Transaction”). The first two stages of the Transaction (referred to as “Stage

1
       47 U.S.C. §214
2
       47 CFR §§ 1.767, 63.03, 63.04, 63.24(e),


One” and “Stage Two”), as described further in Section III, will not result in any transfer of

control. In the final stage of the Transaction (“Stage Three”), as described in Section III, KCK,

through its wholly-owned, indirect subsidiary, Murosa, will have the ability, subject to receipt of

regulatory approvals and certain other conditions being satisfied, to acquire a direct controlling

interest in Hibernia NGS Limited (“Hibernia NGS”), the direct parent and sole member of each

of HB Media and HB Atlantic. Consequently, if those conditions are satisfied and KCK takes

the requisite actions, Stage Three would result in the transfer of control of HB Media and HB

Atlantic, holders of domestic and international Section 214 authority and, in the case of HB

Atlantic, a submarine cable landing license.

       Pursuant to Section 63.04(b) of the Commission’s Rules,3 the Applicants are filing a

combined application for the proposed transfer of control of HB Atlantic and HB Media. The

Applicants provide below the information required by Section 63.24(e)(2) of the Commission’s

Rules.4 Exhibit A provides the additional information requested by Section 63.04(a)(6) through

(a)(12) of the Commission’s Rules.5 Applicants also seek authority to transfer a submarine cable

landing license pursuant to Section 1.767(a)(11) of the Commission’s rules.6 Exhibit B provides

the additional information requested by Section 1.767(a)(1) through (a)(3) and (a)(8) through

(a)(9) of the Commission’s Rules.7




3
       47 C.F.R. § 63.04(b).
4
       47 C.F.R. § 63.24(e)(2).
5
       47 C.F.R. § 63.04(a)(6)-(12).
6
       47 C.F.R. § 1.767(a)(11).
7
       47 C.F.R. § 1.767(a)(1)-(3), (8)-(9)


                                                 2


I       THE APPLICATION QUALIFIES FOR STREAMLINED PROCESSING

        The Applicants request streamlined treatment of this Application pursuant to Sections

63.03 and 63.12 of the Commission’s Rules.8 This Application is eligible for streamlined

processing pursuant to Section 63.03(b)(2) of the Commission’s Rules for domestic Section 214

authority because (i) Stage Three will result in Applicants (including their affiliates, as that term

is defined in Section 3(1) of the Act) having a market share in the interstate, interexchange

market of less than 10 percent; (ii) the Applicants (including their affiliates) will provide

information services, competitive telecommunications services and exchange access services (if

any) exclusively in geographic areas served by a dominant local exchange carrier that is not a

party to the transaction; and (iii) neither the Applicants, nor any of their affiliates, are regulated

as dominant with respect to any service.

        This Application also qualifies for streamlined treatment under Section 63.12(c) of the

Commission’s Rules for international Section 214 authority because, although the Applicants,

HB Atlantic and HB Media are affiliated with several foreign carriers, none of those carriers has

market power in the foreign market nor do they possess 50% market share in the international

transport or local access markets in the foreign markets. Specifically, the Applicants, HB

Atlantic and HB Media are affiliated with Hibernia Atlantic Communications (Canada)

Company, Hibernia Atlantic Cable System Limited, Hibernia Atlantic (UK) Limited, Hibernia

Media (UK) Limited, Hibernia Atlantic (Singapore) Private Limited, Stored Data B.V.

(collectively the “Hibernia Foreign Carrier Affiliates”) all of which are wholly-owned

subsidiaries of Hibernia NGS. Hibernia Atlantic Cable System Limited, Hibernia Atlantic (UK)

Limited, Hibernia Atlantic Communications (Canada) Company, and Hibernia Atlantic (NI)


8
        47 C.F.R. §§ 63.03 and 63.12.


                                                   3


Limited (“Hibernia Submarine Cable Affiliates”) have ownership interests in the Hibernia

Atlantic cable system, a submarine cable network currently extending between the U.S., Canada,

the U.K., and the Republic of Ireland (“Ireland”).9 In conjunction with the services they provide

between the U.S., Canada, the U.K. and Ireland, the Hibernia Submarine Cable Affiliates also

provide service in Belgium, France, the Netherlands, and Germany. The Hibernia Foreign

Carrier Affiliates, individually and collectively, do not have market power in any of the foreign

countries in which they provide service, as the Hibernia Foreign Carrier Affiliates, individually

and collectively, hold less than a 50 percent market share in the international transport and the

local access markets in these countries.

       CVC, HB Atlantic and HB Media are also affiliated with Magnet Networks

(“Magnet”),10 a Dublin, Ireland based communications company that provides telephone,

Internet, and video services in and around the Republic of Ireland and in the UK, Magnet does

not have market power in Ireland or the UK and does not possess 50% market share in the

international transport or local access markets in either of such markets.

       Finally, CVC, HB Atlantic and HB Media are also affiliated with Pivotel Group Pty. Ltd.

(“Pivotel”), a satellite and mobile services provider in Australia.11 Pivotel does not hold a 50

percent market share in the international transport and the local access markets in Australia. As

such, Pivotel does not have market power in the country in which it provides its services.

       Accordingly, Applicants qualify for non-dominant treatment or a presumption of non-

dominant treatment, under Section 63.10(a)(3), on all routes. Further, the Applicant qualifies for


9
       See IB File Nos. SCL-T/C-20021213-00104 and SCL-ASG-20021213-00103, granted
       Jan. 31, 2003, in DA No. 03-335, rel. Jan. 31, 2003.
10
       Magnet is an indirect wholly-owned subsidiary of CVC.
11
       Kenneth D. Peterson, Jr., a U.S. citizen who holds 100 percent of the ownership interest
       in CVC, and CVC each hold a 50 percent ownership interest in Pivotel.


                                                 4


streamlined processing pursuant to Section 63.12(c)(1)(ii) because the Applicants are not

affiliated with any dominant U.S. carrier whose international switched or private line services

Applicants or their affiliates seek authority to resell, nor will Applicants or its affiliates be so

affiliated post-close.12

II.      DESCRIPTION OF THE APPLICANTS

         A.     CVC

         CVC is a Washington state corporation. CVC owns and operates a portfolio of

telecommunications companies and a small number of manufacturing businesses around the

world. Mr. Kenneth D. Peterson, Jr., a U.S. citizen, owns 100% of the issued and outstanding

equity of CVC. Mr. Peterson is Chief Executive Officer, Chairman and Founder of CVC. The

principal place of business of CVC and Mr. Peterson is 12503 SE Mill Plain Blvd., Suite 120,

Vancouver, WA 98684. CVC currently owns 60.1% of the issued and outstanding equity of

Hibernia NGS which, in turn, owns all of the membership interests in HB Atlantic and HB

Media.

         B.     HB Atlantic

         HB Atlantic is a limited liability company formed under the laws of the State of

Washington and is a direct, wholly-owned subsidiary of Hibernia NGS. HB Atlantic’s principal

place of business is 25 De Forest Avenue, Suite 108, Summit, New Jersey 07901. HB Atlantic is

the holder of a submarine cable landing license 13 and domestic and international Section 214

authority14 issued by the FCC. HB Atlantic provides broadband services to a variety of


12
         See 47 C.F.R. 63.12(c)(1)(ii).
13
         See File No. SCL-MOD-20020412-00022 (granted July 3, 2002) (modification of the
         Cable Landing License granted in SCL-LIC-19990804-00012).
14
         See File No. ITC-214-20090612-00283 (granted Dec. 11, 2009). Domestic authority was
         obtained by operation of rule. See 47 C.F,R, §63.01. A separate transfer of control

                                                   5


customers including enterprise and wholesale customers. HB Atlantic’s domestic offerings are

interstate in nature and are provided to customers in Connecticut, California, Georgia, Illinois,

Massachusetts, Maryland, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania,

Virginia and Wisconsin.15 The existing HB Atlantic cable system connects landing stations

located in the U.S. (Lynn, Massachusetts), and abroad (Halifax, Nova Scotia, Canada (Herring

Cove); Dublin, Ireland; Southport, United Kingdom; and Portrush, Northern Ireland).

       C.      HB Media

       HB Media is a limited liability company formed under the laws of the State of Delaware

and is a direct, wholly-owned subsidiary of Hibernia NGS. Its principal place of business is 25

De Forest Avenue, Suite 108, Summit, NJ 07901. HB Media is the holder of a domestic and

international Section 214 Authority previously held by Hibernia NGS.16 HB Media provides

broadband services and content management services to media companies. HB Media is also a

provider of private line services to media content service providers. HB Media’s domestic

offerings are interstate in nature and are provided to customers in Arizona, California, Colorado,

the District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, North Carolina,

New Jersey, New York, Ohio, Pennsylvania, Texas and Washington.17

       D.      Murosa Development S.À R.L.

       Murosa is a wholly-owned indirect subsidiary of KCK and is an investment company

organized under the laws of Luxembourg. Murosa’s registered offices are at 6, rue Guillaume


       application is being submitted to the Commission in connection with HB Atlantic’s
       submarine cable landing license.
15
       HB Atlantic is qualified as a foreign corporation in each of these states.
16
       See Notification, pursuant to Section 63.24(f) of the Commission's Rules, of a pro forma
       assignment of international Section 214 authority (File No. ITC-214-20100303-00093)
       (July 17, 2014) (“July 17 Notice”).
17
       HB Media is qualified as a foreign corporation in each of these states.


                                                 6


Schneider, L-2522 Luxembourg. Murosa was formed on July 4, 2014 for the purpose of

obtaining an equity interest in Hibernia NGS and, thereby, supporting Hibernia NGS in obtaining

funding necessary to undertake a trans-Atlantic cable project connecting the UK to Nova Scotia

being undertaken by another of Hibernia NGS’ subsidiaries, Hibernia Express (Ireland) Limited.

Murosa does not currently engage in any activity other than management of its investment in

Hibernia NGS. Pursuant to Stage One of the transaction, which is discussed further in Section

III below, Murosa has acquired a 27.9 percent direct interest in Hibernia NGS and, thus, an

indirect interest in HB Atlantic and HB Media.18



18
      The third current investor in Hibernia NGS is CVC III Hibernia Blocker, Inc. (“CV
      Hibernia”), a Delaware corporation. The following information regarding CV Hibernia was
      provided to the Applicants and confirmed to them by Highbridge (as defined below). CV
      Hibernia currently owns 12% of the issued and outstanding equity of Hibernia NGS. CV
      Hibernia is owned by the following three (3) Constellation funds:
                  •       Constellation Venture Capital III (EF), L.P. (“CVEF”), a Delaware limited
                  partnership, owns 24% of the issued and outstanding equity of CV Hibernia. The
                  general partner of CVEF is Constellation Ventures Management III LLC
                  (“CVManagement”), a Delaware limited liability company.
                  •       Constellation Venture Capital III, L.P. (“CVCapital”), a Delaware limited
                  partnership, owns 67% of the issued and outstanding equity of CV Hibernia. The
                  general partner of CVCapital is CVManagement.
                  •       Constellation Venture Capital Offshore III, L.P. (“CVOffshore”), a
                  Cayman Islands limited partnership, owns 8% of the issued and outstanding
                  equity of CV Hibernia. The general partner of CVOffshore is CVManagement.
     Constellation Growth Capital, LLC (“Constellation”), a Delaware limited liability company,
     holds a 50% ownership interest in CVManagement. Constellation is wholly owned by
     Highbridge Principal Strategies, LLC (“Highbridge”), a Delaware limited liability company.
     Highbridge is wholly owned by Highbridge Capital Management, LLC (“Highbridge
     Capital”), a Delaware limited liability company. Highbridge Capital is a subsidiary of
     JPMorgan Asset Management Holdings, Inc. (“JPMorgan Asset”), a Delaware corporation
     and the holder of 99.8% of the limited partner ownership interests in CVEF. JPMorgan Asset
     is a wholly owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), a Delaware
     corporation that is widely held. No limited partner in CVEF, CVCapital, or CVOffshore other
     than JPMorgan Asset held or currently holds a 10% or greater ownership interest in HB
     Atlantic or HB Media under the FCC’s ownership attribution rules. Constellation, CVCapital,
     CVManagement, CVOffshore, CVEF, CVHibernia, Highbridge, Highbridge Capital,
     JPMorgan Asset, and JP Morgan operate principally as investment companies. The principal
     place of business of Constellation, CVCapital, CVManagement, CVOffshore, CVEF,
     CVHibernia, Highbridge, and Highbridge Capital is, in each case, c/o Constellation Growth
     Capital LLC, 40 West 57th Street, New York, New York, 10019. The principal place of

                                                  7


       E.      KCK, Limited

       KCK is a family-owned and run financial investment business that is owned by five

members of the Clin / Kassar family and is incorporated under the laws of the British Virgin

Islands with its registered offices in Tortola, British Virgin Islands. KCK holds significant

investments in a diverse range of business sectors including clean technologies, utilities,

telecommunications, technology, media, energy, real estate, basic material, consumer finance

and business services. KCK frequently co-invests in companies or projects with blue-chip U.S.

investment firms such as Goldman Sachs & Co., Highbridge Principal Strategies. The

Blackstone Group, Kleiner Perkins Caufield Byers and Bessemer Venture Partners. KCK’s

investments are principally located in the United States and Europe.

III.   DESCRIPTION OF THE TRANSACTION

       Pursuant to the terms of an “Investment Agreement” and a “Shareholder Agreement”,

(the “Agreements”) both dated July 17, 2014, by and among CVC, CV Hibernia, KCK and

Murosa, Murosa acquired a minority equity interest in Hibernia NGS. Under the terms of the

Agreements, Murosa also has the ability, under certain conditions, to acquire a majority interest.

Specifically, the transaction is structured as a three-stage process whereby, under Stage One,

Murosa acquired its 27.9% interest in Hibernia NGS. Stage One was completed on July 17,

2014 and provided funding needed to complete marine surveys and manufacturing of fiber-optic

cable. Stages Two and Three grant Murosa the option to obtain increasing equity interests in

Hibernia NGS, culminating in Murosa, in Stage Three, directly holding a majority equity interest

in Hibernia NGS, and an indirect majority interest in HB Atlantic and HB Media.19


    business of JPMorgan Asset and JP Morgan is, in each case, c/o JPMorgan Asset
    Management Holdings, Inc., 270 Park Avenue, New York, NY 10017.
19
   Murosa’s ultimate acquisition of majority equity interest in Hibernia NGS is contingent upon
   several conditions. It is contemplated in a standalone arrangement between KCK, Murosa, and

                                                 8


       All stages of the Transaction will be transparent to HB Atlantic’s and HB Media’s

customers, which will continue to be served, without interruption, by HB Atlantic and HB Media

after the three stages of the Transaction are consummated. A corporate structure diagram is

appended as Exhibit C.


IV.    PUBLIC INTEREST STATEMENT

       The transfer of control of HB Atlantic and HB Media that would occur in Stage Three

will serve the public interest. The financial resources that Murosa has brought and will bring to

Hibernia NGS through its investment will enhance the ability of HB Atlantic and HB Media to

compete in the communications and information services marketplace. As discussed below, after

the consummation of Stage Three, although now holding a majority share, Murosa will not be

involved in the daily operations of HB Atlantic and HB Media. Consequently, HB Atlantic and

HB Media will benefit from the increased financial stability of Murosa’s investment in Hibernia

NGS while retaining the same day-to-day operations thereby ensuring the continued success of

HB Atlantic and HB Media. The Investment Agreement enables the funding of a portion of the

costs to construct a new low-latency, six fiber pair trans-Atlantic undersea fiber optic cable

system connecting Halifax, Nova Scotia, and Brean, United Kingdom (“Project Express”) which

is being undertaken by one of Hibernia NGS’s Irish subsidiaries – Hibernia Express (Ireland)

Limited.

       Notably, Project Express does not include a new submarine cable system landing point in

the United States nor an increase in the number of fibers between Halifax, Nova Scotia, and



 CV Hibernia that, in conjunction with Stage Two, CV Hibernia’s shares in Hibernia NGS will
 be transferred to Murosa and CV Hibernia will take an interest in Murosa. At the culmination
 of Stage Two of the transaction, Murosa would hold no more than 40% of the equity and still a
 minority share in Hibernia NGS. CVC would continue to hold more than a 50% share after
 Stage Two is complete.


                                                 9


Lynn, Massachusetts. Instead, Project Express will interconnect with the group’s current trans-

Atlantic system at Halifax and use that system to bring communications traffic into the United

States. As noted above, the existing Hibernia NGS transatlantic cable system - which is owned

and operated by various subsidiaries of Hibernia NGS, including HB Atlantic, which owns the

portion of the cable system in the U.S. and U.S. territorial waters - connects landing stations

located in the U.S. (Lynn, Massachusetts), and abroad (Halifax, Nova Scotia, Canada (Herring

Cove); Dublin, Ireland; Southport, United Kingdom; and Portrush, Northern Ireland).

         At the same time, the consummation of Stage Three will have no adverse impact on HB

Atlantic’s and HB Media’s existing customers. These customers will continue to receive their

existing services at the same rates, terms and conditions as at present. Any future changes to the

rates, terms and conditions of service will be made consistent with Commission requirements, as

applicable.

         Furthermore, the potential consummation of Stage Three does not present any anti-

competitive concerns. The transfer of control of HB Atlantic and HB Media to Murosa (and,

indirectly, KCK) will have no adverse effect upon competition in the markets for local, intrastate

toll or domestic interstate telecommunications services. Murosa and KCK have no

communications operations, therefore, there is no overlap with the services provided by HB

Atlantic or HB Media. As a result, the proposed transfer of control has no impact other than

ensuring the continued financial stability of Hibernia NGS and, therefore, of HB Atlantic and HB

Media.

         In addition, the consummation of Stage Three poses no risk of anticompetitive impact on

the U.S. international telecommunications marketplace. Murosa and KCK do not provide

international telecommunications services and HB Atlantic and HB Media are long-established




                                                10


providers of international services. HB Atlantic and HB Media are not foreign carriers, and their

foreign carrier affiliates, do not have market power in the foreign points where they operate.

HB Atlantic and HB Media will not become foreign carriers nor gain any new foreign carrier

affiliates as a result of consummating in Stage Three. Consequently, there is no anticompetitive

overlap of international services or markets.

          Finally, the proposed consummation of Stage Three does not raise any national security

or law enforcement concerns. In a Letter of Assurance (“LOA”) dated September 30, 2010,

between the predecessor in interest of Hibernia NGS (and its subsidiaries) and the Department of

Justice, Department of Homeland Security, and Department of Defense, Hibernia NGS agreed to

abide by certain security and reporting obligations as a condition of granting international

Section 214 authority to Hibernia NGS.20 Hibernia NGS, HB Atlantic and HB Media will

continue to be bound by the LOA after consummation of Stage Three. Moreover, Murosa and

KCK are not investing directly in HB Atlantic and HB Media. In addition, as noted above, the

current day-to-day business operations of HB Atlantic and HB Media will not be affected by the

proposed consummation of Stage Three. Accordingly, the consummation of Stage Three will

not raise any national security or law enforcement concerns. For the Commission’s information,

the Applicants have also filed, on August 8, 2014, a draft Voluntary Notice with the Committee

on Foreign Investment in the United States (“CFIUS”) that provided additional information

regarding the Applicants and the financial components of the investment transaction.




20
      The LOA was entered into by Hibernia Group ehf the applicant, at that time, for international
     Section 214 authority. By pro forma notice dated, March 4, 2014 Hibernia Group ehf notified
     the Commission of the transfer of that section 214 authority to Hibernia NGS Limited. See
     ITC-ASG-20140304-00065. By pro forma notice dated July 17, 2014, notified the
     Commission of the transfer of Hibernia NGS’ section 214 authority to HB Media. See ITC-
     ASG-20140717-00206.


                                                  11


V.     INFORMATION REQUIRED BY SECTION 63.24(e) OF THE
       COMMISSION’S RULES

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

Commission’s Rules, including the information requested in Section 63.18:

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

       Columbia Ventures Corporation (transferor)
       12503 SE Mill Plain Blvd.
       Suite 120
       Vancouver, WA 98684

       Hibernia Atlantic U.S. LLC (licensee)
       25 De Forest Avenue, Suite 108
       Summit, NJ 07901
       Tel: 908-988-1988

       Hibernia Media, LLC (licensee)
       25 De Forest Avenue, Suite 108
       Summit, NJ 07901
       Tel: 908-988-1988

       Murosa Development S.À R.L. (transferee)
       6, rue Guillaume Schneider
       L-2522 Luxembourg

       KCK Limited (transferee)
       Principal Place of Business:
       Dubai Airport Free Zone,
       Bldg 6 W, Block A, 5th floor,
       Office No. 512
       P.O. Box: 29506 Dubai- U.A.E

       Registered Office:
       C/OMC Chambers,
       Wickhams Cay 1,
       Road Town,
       Tortola, British Virgin Islands


(b)    Laws under which each corporate or partnership applicant is organized:

       HB Atlantic is a limited liability company formed under the laws of the State of
       Washington.



                                               12


      HB Media is a limited liability company formed under the laws of the State of Delaware.

      Hibernia NGS is a company formed under the laws of the Republic of Ireland.

      CVC is a corporation organized under the laws of the State of Washington.

      CV Hibernia is a corporation organized under the laws of the State of Delaware.

      CVEF and CVCapital are limited partnerships organized under the laws of the State of
      Delaware.

      CVOffshore is a limited partnership organized under the laws of the Cayman Islands.

      Murosa is a company organized under the laws of Luxembourg.

      KCK is a private company organized under the laws of the British Virgin Islands.


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

      For CVC, HB Atlantic and HB Media:              For KCK and Murosa:

      James P. Prenetta, Jr.                          Burt Braverman
      General Counsel                                 Davis Wright Tremaine LLP
      Hibernia NGS Limited                            1919 Pennsylvania Avenue, NW
      c/o Hibernia Atlantic U.S. LLC                  Suite 800
      25 De Forest Avenue, Suite 108                  Washington, DC 20006-3401
      Summit, New Jersey 07901                        Phone: (202) 973-4210
      Phone: (978) 460-1987                           Email: burtbraverman@dwt.com
      Email: james.prenetta@hibernianetworks.com

      with copy to:

      Edward A. Yorkgitis, Jr.
      Denise N. Smith
      KELLEY DRYE & WARREN LLP
      3050 K Street, N.W.
      Washington, D.C. 20007
      Phone: (202) 342-8400
      Email: eyorkgitis@kelleydrye.com
            dsmith@kelleydrye.com




                                             13


(d)    HB Atlantic holds an international Section 214 license to provide global or limited global
       facilities-based and resale international telecommunications services, granted in File No.
       ITC-214-20090612-00283 on December 1, 2009. HB Atlantic also holds a submarine
       cable landing license, granted in File No. SCL-LIC-19990804-00012 on January 13, 2000
       and modified in File No. SCL-MOD-20020412-00022. HB Atlantic also holds domestic
       Section 214 authority by operation of Section 63.01 of the Commission’s Rules.21

       HB Media holds international Section 214 authority, granted in FCC File No. ITC-214-
       20100303-00093, to operate as a global or limited global facilities-based and resale
       carrier. HB Media also holds domestic Section 214 authority by operation of Section
       63.01 of the Commission’s Rules.22

       CVC, CV Hibernia, Murosa and KCK do not hold FCC international or domestic Section
       214 authorities.


(h)    The following individuals or entities hold a 10% or greater interest in KCK and Murosa and
       thus will hold a 10% or greater interest in HB Atlantic and HB Media post close:

      Name             Ownership in Address                        Nationality
                       KCK
                       42.5%        7 Pollock's Path,         The Born: France
       Jean François                Peak, Hong Kong
           Clin                                                Citizenship: French
                       21.25%           6 Wadham Gardens, NW3 Born: Lebanon
      Radwan Karim                      3DP, London, UK
         Kassar                                                Citizenship: Lebanese / French
                       21.25%           6 Wadham Gardens, NW3 Born: France
      Annabel Karim                     3DP, London, UK
         Kassar                                                Citizenship: French / Lebanese
                       10%              10 Ulster Terrace, NW1 Born: France
        Nael Karim
                                        4PJ, London, UK
          Kassar
                                                               Citizenship: French / Lebanese
                       5%               Satwa, Rue 30D - Villa Born: Lebanon
       Kamal Karim                      110, Dubai, UAE
         Kassar                                                Citizenship: Lebanese / French

       Murosa is an indirect, wholly-owned subsidiary of KCK.

       There will be no interlocking directorates with any foreign carrier following
       consummation of Stage Three of the proposed Transaction.



21
       47 C.F.R. § 63.01.
22
       47 C.F.R. § 63.01.


                                               14


(i)   As evidenced by the signature of KCK’s and Murosa’s representative to this Application,
      KCK and Murosa certify that (i) KCK and Murosa are not foreign carriers; and (ii)
      neither KCK nor Murosa will become a foreign carrier post-close. As discussed in
      Section I above, KCK and Murosa currently are affiliated with the Hibernia Foreign
      Carrier Affiliates Accordingly, KCK and Murosa certify that they are affiliated with
      foreign carriers in Belgium, Canada, France, Germany, Ireland, the Netherlands,
      Singapore, and the U.K..

(j)   As evidenced by the signature of KCK’s and Murosa’s representative to this Application,
      KCK and Murosa certify that they do not seek to provide international
      telecommunications services to any destination country where, post-close, (i) KCK and
      Murosa are foreign carriers; (ii) KCK or Murosa control foreign carriers; (iii) an entity
      that owns more than 25 percent of KCK or Murosa, or that controls KCK or Murosa,
      controls a foreign carrier; or (iv) two or more foreign carriers (or parties that control
      foreign carriers) own, in the aggregate, more than 25 percent of KCK or Murosa after
      Stage 3 and are parties to, or the beneficiaries of, a contractual relation affecting the
      provision or marketing or international basic telecommunications services in the United
      States.

(k)   Belgium, Canada, France, Germany, Ireland, the Netherlands, Singapore, and the U.K.
      are all members of the World Trade Organization.

(l)   [Reserved].

(m)   The Hibernia Foreign Carrier Affiliates, both collectively and individually, hold
      significantly less than a 50 percent market share in the international transport and local
      access markets in the foreign countries in which they provide service. Accordingly, the
      Affiliates each lack market power and KCK and Murosa are entitled to a presumption of
      non-dominant treatment.

(n)   As evidenced by the signature of KCK’s and Murosa’s representative to this Application,
      KCK and Murosa certify that they have not agreed to accept special concessions directly
      or indirectly from any foreign carrier with respect to any U.S. international route where
      the foreign carrier possesses market power on the foreign end of the route, and that it will
      not enter into such agreements in the future.

(o)   As evidenced by the signatures of the Applicants’ representatives to this Application,
      Applicants each certify that, pursuant to Sections 1.2001 through 1.2003 of the
      Commission’s Rules, no party to this Application is subject to a denial of Federal benefits
      pursuant to Section 5301 of the Anti-Drug Abuse Act of 1988.

(p)   KCK and Murosa request streamlined processing of this Application pursuant to
      Section 63.12 of the Commission’s Rules, 47 C.F.R. § 63.12. This Application qualifies
      for streamlined treatment under Section 63.12(c) of the Commission’s Rules because, as
      discussed in Section I supra, (i) KCK and Murosa’s foreign carrier affiliates, the
      Hibernia Foreign Carrier Affiliates, do not have market power in the foreign markets nor



                                               15


       do they possess 50% market share in the international transport or local access markets in
       the foreign markets; and (ii) KCK and Murosa are not affiliated with any dominant U.S.
       carrier whose international switched or private line services KCK or Murosa seeks
       authority to resell, nor will KCK or Murosa become so affiliated post-close.


VI.    INFORMATION REQUIRED BY SECTION 63.04(b) OF THE
       COMMISSION’S RULES

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

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

provided in Exhibit A.


VII.   INFORMATION REQUIRED BY SECTION 1.767(A)(11) OF THE
       COMMISSION’S RULES

       In accordance with the requirements of Section 1.767(a)(11) of the Commission's Rules,

the additional information required for the submarine cable landing license transfer of control

application is provided in Exhibit B.




                                                16


                  Kamal Karim Kasser




August 20, 2014


  VIII.   CONCLUSION

          Based on the foregoing, the Applicants respectfully submit that the public interest,

  convenience, and necessity would be furthered by grant of this Application.


                                                       Respectfully submitted,



Columbia Ventures Corporation                     KCK Limited and Murosa
                                                  Development S.A. R.L.




Kenneth D. Peterson, Jr.                          Kamal Karim Kasser
Chief Executive Officer                           Director
Columbia Ventures Corporation                     KCK Limited and
12503 SE Mill Plain Blvd., Suite 120              Murosa Development S. A R.L.
Vancouver, WA 98684                               6, rue Guillaume Schneider, L—2522
ken@colventures.com                               Luxembourg


Edward A. Yorkgitis, Jr.                          Burt Braverman
Denise N. Smith                                   Davis Wright Tremaine LLP
Kelley Drye & Warren LLP                          1919 Pennsylvania Avenue, NW
3050 K Street, N.W.                               Suite 800
Washington, D.C. 20007                            Washington, DC 20006—3401
eyorkgitis@kelleydrye.com                         Phone: (202) 973—4210
dsmith@kelleydrye.com                             Email: burtbraverman@dwt.com

Its Attorneys                                     Its Attorneys


  Date: fi %fdk Jo, .’2;\. (q


August 20, 2014


                                        VERIFICATION



               I, Kamal Karim Kassar, state that I am a Director of KCK Limited and Murosa

Development S.AR.L.; that I am authorized to represent KCK Limited and Murosa

Development S.A.R.L. and their subsidiaries and affiliates, and to make this verification on their

behalf; that the statements in the foregoing document relating to KCK Limited and Murosa

Development S.A.R.L. and their subsidiaries and affiliates, except as otherwise specifically

attributed, are true and correct to the best of my knowledge and belief.

               I declare under penalty of perjury that the foregoing is true and correct.




                                                     ¥~      &
                                                  Kamal Karim Kassar
                                                  KCK Limited and Murosa Development
                                                  S.ARL.



Executed on August 20, 2014


                                        VERIFICATION



               I, James P. Prenetta, Jr., state that I am General Counsel of Hibernia NGS

Limited; that I am authorized to represent Hibernia NGS Limited and its subsidiaries and

affiliates, and to make this verification on their behalf; that the statements in the foregoing

document relating to Hibernia NGS Limited and its subsidiaries and affiliates, except as

otherwise specifically attributed, are true and correct to the best of my knowledge and belief.

               I declare under penalty of perjury that the foregoing is true and correct.




                                                                                     s

                                                  Jaines P. Prenetta Jr.        %/
                                                  Hibernia NGS$   Limited, LL




Executed on        /AZ‘A‘J a10/ 7/


                             LIST OF EXHIBITS

EXHIBIT A – Information Required by 47 C.F.R. §63.04

EXHIBIT B – Information Required by 47 C.F.R. §1.767

EXHIBIT C – Corporate Structure Diagram(s)




                                      18


                                        EXHIBIT A

                  INFORMATION REQUIRED BY 47 C.F.R. §63.04

        In accordance with the requirements of Section 63.04(b) of the Commission’s

Rules, 47 C.F.R. § 63.04, the Applicants provide the following information in support of

its request.

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

        The proposed Transaction is described in Section III of the Application.

63.04(a)(7):   Description of Geographic Service Area and Services in Each Area

        A description of the geographic service areas and services provided in each area is

included in Section II of the Application. HB Atlantic provides broadband services to a

variety of customers including enterprise and wholesale customers in 14 states. HB

Media provides broadband services and content management services to media

companies. HB Media is also a provider of private line services to media content service

providers in 16 states.

63.04(a)(8):   Presumption of Non-Dominance and Qualification for Streamlining

        This Application is eligible for streamlined processing pursuant to Section

63.03(b)(2) of the Commission’s Rules because (1) Stage Three will result in the

Applicants (including their affiliates, as that term is defined in Section 3(1) of the Act)

having a market share in the interstate, interexchange market of less than 10 percent; (2)

the Applicants (including their affiliates) will provide information services, competitive

telecommunications services or exchange access services (if any) exclusively in

geographic areas served by a dominant local exchange carrier that is not a party to the


transaction; and (3) neither the Applicants nor any of their affiliates are regulated as

dominant with respect to any service.

63.04(a)(9):   Other Pending Commission Applications Concerning the Proposed
               Transaction

       None.

63.04(b)(10): Special Considerations

       None.

63.04(b)(11): Waiver Requests (If Any)

       None.

63.04(b)(12): Public Interest Statement

       Consummation of Stage Three of the proposed Transaction will serve the public

interest for the reasons detailed in Section IV of the Application.




                                                                      2


                                       EXHIBIT B


                 INFORMATION REQUIRED BY 47 C.F.R. §1.767


       In accordance with the requirements of Section 1.767(a)(11) of the Commission’s

Rules, 47 C.F.R. § 1.767, the Applicants provide the following information in support of

its request for transfer of control of HB Atlantic, the holder of a submarine cable landing

license.

1.767(a)(1):   Name, address and telephone number of the Applicants:

       The names, addresses and telephone numbers of the Applicants is included in

section V(a) of the Application.

1.767(a)(2):   Laws under which each corporate or partnership applicant is

               organized:

       The laws under which the Applicants are organized are included in Section V(b)

of the Application.



1.767(a)(3):   Correspondence concerning this Application should be sent to:

       Contact information for correspondence regarding this Application is included in

section V(c) of the Application.



(ii)   1.767(a)(8):    Certification regarding affiliation with foreign carriers:

       As evidenced by the signature of KCK’s and Murosa’s representative to this

Application, KCK and Murosa certify that (a) KCK and Murosa are not foreign carriers




                                                                    3


and (b) as discussed in Section I supra, KCK and Murosa are affiliated with foreign

carriers in Belgium, Canada, France, Germany, Ireland, the Netherlands, Singapore, and

the U.K , including entities that own or control a foreign cable landing station in the

destination markets of HB Atlantic’s cable system.

       The citizenship of each applicant and information and certifications required in

Section 63.18(h) through(k) and 63.18(o) are included in Section V of the Application.



1.767(a)(9):   Certification regarding acceptance of conditions:

       As evidenced by the signature of KCK’s and Murosa’s representative to this

Application, KCK and Murosa certify that they accept and will abide by the routine

conditions of Section 1.767(a)(g) of the Commission’s Rules.




                                                                    4


                EXHIBIT C


Pre- and Post-Merger Organizational Charts




                                     5


                                                                                           Ownership at Time of Application
   J-FC        RK              AK             KK        NK



          42.5%     21.25%    21.25%     5%    10%




                             KCK Limited             100%              KCK-FHN Ltd.)




                                                                       100%


                                                                              Murosa                                   CVC III Hibernia                          Columbia Ventures
                                                                        Development S.a.r.l.)                           Blocker, Inc.*                              Corporation




                                                                                                                                12%
                                                                                    27.90%                                                                   60.1%
                                                                                                                    Hibernia NGS Limited




                                                                                                                   100%




                               Hibernia                       Hibernia Atlantic                   Hibernia Local                     Stored Data BV                  Tripartz BV            Hibernia      Hibernia Express
                              Atlantic UK                     Communications                      Fibre Limited                                                                          Atlantic Cable   (Ireland) Limited
                             Limited (UK)                        (Canada)                                                                                                               System Limited
                                                                 Company



Hibernia Atlantic             Hibernia                  Hibernia                  Hibernia Media,                      Hibernia                           Hibernia                  Hibernia                       Hibernia Express
Communications               Atlantic (NI)           Atlantic US LLC                    LLC                            Atlantic                         International              Media (UK)                      Canada Limited
 Private Limited               Limited                                                                               (Singapore)                         Assets, Inc.               Limited
     (India)                                          214 and SCL                      (214 License                Private Limited                    (Cayman Islands)
                                                     License Holder                      Holder )
                                                                                                                                                                                                                   Hibernia Express
                                                                                                                                                                                                                     (UK) Limited
  * See application for CVC III Hibernia Blocker, Inc. ownership information


                                                                                     Post – Stage Three Transfer of Control
   J-FC        RK              AK             KK        NK



          42.5%     21.25%    21.25%     5%    10%




                         KCK Limited           100%           KCK-FHN Ltd.             CVC III Hibernia
                                                                                        Blocker, Inc.*




                                                      72.1%                                27.9%

                                                                       Murosa Development                                                                    Columbia Ventures
                                                                             S.a.r.l.                                                                           Corporation




                                                                                      51.0%                                                                49.0%
                                                                                                                 Hibernia NGS Limited




                                                                                                                 100%




                               Hibernia                        Hibernia Atlantic                Hibernia Local                     Stored Data BV                  Tripartz BV              Hibernia      Hibernia Express
                              Atlantic UK                      Communications                   Fibre Limited                                                                            Atlantic Cable   (Ireland) Limited
                             Limited (UK)                         (Canada)                                                                                                              System Limited
                                                                  Company



Hibernia Atlantic             Hibernia                  Hibernia                   Hibernia Media,                   Hibernia                           Hibernia                  Hibernia                         Hibernia Express
Communications               Atlantic (NI)           Atlantic US LLC                     LLC                         Atlantic                         International              Media (UK)                        Canada Limited
 Private Limited               Limited                                                                             (Singapore)                         Assets, Inc.               Limited
     (India)                                       (214 and SCL                     (214 License                 Private Limited                    (Cayman Islands)
                                                   License Holder)                    holder)
                                                                                                                                                                                                                   Hibernia Express
                                                                                                                                                                                                                     (UK) Limited

  * See application for CVC III Hibernia Blocker, Inc. ownership information



Document Created: 2014-09-18 11:57:59
Document Modified: 2014-09-18 11:57:59

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