Attachment Attachment 1

This document pretains to ITC-T/C-20150316-00066 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2015031600066_1080130

                                                                                           Attachment 1
                                                                                     FCC Form 214TC
                                                    Application for Transfer of Control of International
                                                   Section 214 Authorization ITC-214-20110609-00184


                                                Introduction

           By this application, Riverside Fund IV, L.P., a Delaware limited partnership (“Riverside”

or “Transferor”) and Panasonic Corporation of North America, a Delaware corporation (“PNA”

or “Transferee”) request Commission consent to the transfer of control of ITC Global USA,

LLC., a Florida limited liability company (“ITC USA” or “Licensee”), the holder of International
                                                                      1
Section      214    Authorization    ITC-214-20110609-00184.              ITC    USA      provides       satellite

communication services to, from and within the United States in support of the oil and gas,

mining and other industries requiring reliable, remote communications capabilities, but does not

provide domestic or international common carrier services at this time.

           In response to the specific questions contained in the Commission’s Form 214TC, the

applicants state as follows:

Answer to Question 10

           Section 63.18(c): Correspondence concerning this application should be sent to PNA’s

regulatory legal counsel, below:

                   Barry A. Friedman
                   Thompson Hine LLP
                   1919 M Street, NW, Suite 700
                   Washington, DC 20036
                   Phone: (202) 973-2789
                   Email: barry.friedman@thompsonhine.com
                   Relationship: Legal Counsel




1
 The Licensee also holds 13 earth station licenses, which are the subject of two separate requests for
Commission approval of this transfer of control, filed concurrently with this application.


280788.5


                                                                                         Attachment 1
                                                                                   FCC Form 214TC
                                                  Application for Transfer of Control of International
                                                 Section 214 Authorization ITC-214-20110609-00184


           Correspondence concerning this application should also be sent to regulatory legal

counsel for Transferor and Licensee, as described below:

                  Catherine Wang
                  Brett P. Ferenchak
                  Morgan, Lewis & Bockius LLP
                  2020 K Street, NW
                  Washington, DC 20006-1806
                  Phone: (202) 373-6000
                  Email: catherine.wang@morganlewis.com
                          brett.ferenchak@morganlewis.com
                  Relationship: Legal Counsel

           Section 63.18(d): ITC USA holds international Section 214 Authority to provide global

facilities-based service in accordance with 47 C.F.R. § 63.18(e)(1) and to provide resale services

in accordance with 47 C.F.R. § 63.18(e)(2) (File No. ITC-214-20110609-00184).

           Panasonic Corporation of North America (“PNA”) holds international Section 214

Authority to provide global resale services in accordance with 47 C.F.R. § 63.18(e)(2) (File No.

ITC-214-20110307-00061). 2 PNA will continue to provide services under its international

Section 214 authority.

Answer to Question 11

           Following the completion of the proposed transaction, ITC USA will remain a wholly

owned direct subsidiary of ITC Global, Inc. (“ITC Global”):

           Name:                                  ITC Global, Inc.
           Percentage of Ownership:               100%
           Address:                               150 2nd Avenue, Suite 1100
           City, State, Zip:                      St. Petersburg, FL 33701
           Citizenship:                           U.S. (Delaware)
           Principal Business:                    Communications



2
    See also Public Notice, DA 11-1852, November 3, 2011.

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                                                                                       Attachment 1
                                                                                 FCC Form 214TC
                                                Application for Transfer of Control of International
                                               Section 214 Authorization ITC-214-20110609-00184


(1) The following entity will hold a ten percent (10%) or greater interest in ITC Global:

           Name:                               Panasonic Corporation of North America
           Percentage of Ownership:            100%
           Address:                            One Panasonic Way
           City, State, Zip:                   Secaucus, NJ 07094
           Citizenship:                        U.S. (Delaware)
           Principal Business:                 Equipment Manufacturer

(2) Provided below is the only entity that directly or indirectly owns ten percent (10%) or more
    of the equity of PNA:

           Name:                               Panasonic Corporation
           Percentage of Ownership:            100%
           Address:                            1006, Oaza Kadoma, Kadoma-Shi
           City, State, Zip:                   Osaka, Japan 572-8501
           Citizenship:                        Japan
           Principal Business:                 Equipment Manufacturer

No shareholder or other entity owns or controls 10 percent or more of the voting stock of

Panasonic Corporation. Panasonic Corporation is a publicly traded company, headquartered in

Osaka, Japan, whose stock is traded on several securities exchanges around the world.

Panasonic Corporation’s stock is widely held and dispersed.

Answer to Question 12

           Transferee does not currently have any interlocking directorates with a foreign carrier.

To the extent that after completion of the transaction, the officers/directors of the foreign carriers

listed in response to Question 14 are changed to include one or more of the officers/directors of

Transferee, Transferee may have interlocking directorates with foreign carriers in the future.

Answer to Question 13

           (1)    Description of the Transaction

           Licensee, ITC USA, is a wholly-owned direct subsidiary of ITC Global, Inc. (“ITC

Global”), which in turn is a wholly-owned subsidiary of ITC Global Holdings, LLC (“ITC

                                                   3
280788.5


                                                                                       Attachment 1
                                                                                 FCC Form 214TC
                                                Application for Transfer of Control of International
                                               Section 214 Authorization ITC-214-20110609-00184


Holdings”). ITC Global and its affiliates provide satellite-based, enterprise class voice, video

and data communications services, primarily to oil and gas, mining, and commercial maritime

customers and their employees that cannot be served by conventional terrestrial networks.

Transferor, Riverside, exercises de jure and de facto control over ITC Holdings through its

ownership of a majority of the equity and voting interests in that entity.

           Pursuant to a Purchase Agreement, dated as of February 27, 2015, by and among

Transferee, ITC Holdings, Riverside and other parties (the “Purchase Agreement”), PNA will

acquire 100 percent of the equity securities of the Licensee’s parent, ITC Global, from ITC

Holdings.        Following the transaction, Licensee will continue to be a wholly-owned direct

subsidiary of ITC Global, which will be a wholly-owned subsidiary of PNA. Riverside and ITC

Holdings will cease to have any direct or indirect ownership or control over the Licensee. Thus,

after approval from the Commission, in accordance with the terms of the Purchase Agreement,

ownership and control of the Licensee will be transferred to PNA from Riverside and ITC

Holdings. Organizational charts illustrating the transaction are attached hereto.

           (2)     The Transaction Will Serve the Public Interest

           Consummation of this transaction will serve the public interest. The transaction will not

harm but rather will promote competition and will provide public interest benefits. While both

Licensee and PNA hold international Section 214 Authority, they do not compete today, and had

no plans to do so in the future.             Licensee does not currently provide international

telecommunications services on a common carrier basis despite holding an international Section

214 authorization. Therefore, the combination of Licensee and PNA will not diminish

competition with respect to such services.


                                                   4
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                                                                                        Attachment 1
                                                                                  FCC Form 214TC
                                                 Application for Transfer of Control of International
                                                Section 214 Authorization ITC-214-20110609-00184


           PNA currently controls Panasonic Avionics Corporation (“Panasonic Avionics”), an FCC

blanket earth station aboard aircraft (“ESAA”) licensee and provider of in-flight broadband,

voice, text, data, and entertainment connectivity to passenger aircraft around the world.3 ITC

Global and its subsidiary, Licensee, serve remote-operation industries such as oil and gas, mining,

and commercial maritime platforms with a network that is comprised of end-to-end satellite

solutions. While these services require some of the same inputs that Panasonic Avionics uses –

chiefly satellite backhaul capacity – the two companies serve distinctly different end users.

While Panasonic Avionics focuses on serving airborne mobile platforms, ITC Global’s

customers operate terrestrial sites. As the Commission has recognized with respect to such

services, “satellite communication services are substantially differentiated one from another in

terms of frequency band, transponder power, and the geographic coverage of antennas.”4 Thus,

the transaction will not result in anti-competitive market concentration. Given that PNA and ITC

Global serve different market segments, the transfer of control will not decrease competition in

any market.

           The transaction can be expected to enhance competition and generate efficiency benefits

that will accrue to customers of PNA, Panasonic Avionics and ITC Global. First, the transaction

will place the Licensee under the control of a well-capitalized, globally-recognized technology

company with extensive experience and expertise, through Panasonic Avionics, in delivering

satellite-based services to difficult-to-reach customers around the world. From day one, PNA

will be able to apply this expertise to ensure that ITC Global’s customers make a seamless



3
    See Call Sign E100089, File No. SES-MFS-20130930-00845.
4
    PanAmSat/Intelsat at ¶ 29.

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                                                                                        Attachment 1
                                                                                  FCC Form 214TC
                                                 Application for Transfer of Control of International
                                                Section 214 Authorization ITC-214-20110609-00184


transition to the new ownership structure and gain access to improved services and customer

experiences in the future.

           Under PNA’s       ownership,   ITC    USA will      continue to    provide high-quality

communications services without interruption to existing customers under the rates, terms, and

conditions that are specified in their current contracts. The only change will be that ITC USA

will be backed by a new and well-qualified parent company, PNA, and will benefit from PNA’s

communications expertise and financial and operational support.

           Finally, the extensive history of PNA and Panasonic Avionics in connection with their

authorizations and licenses demonstrates that PNA is qualified to control ITC USA and its

International Section 214 authorization (and earth station licenses).          PNA and Panasonic

Avionics continue to operate pursuant to their respective authorizations and licenses and have

been exemplary authorization/license holders.          Accordingly, based on the foregoing, the

proposed transfer of control will serve the public interest.

Answer to Questions 14 and 15

           As recently described in File No. FCN-NEW-2015-0130-00002, ITC USA is affiliated

with foreign carriers that provide telecommunications services in Australia, Burkina Faso, Chile,

Ghana, Switzerland and Tanzania, and these affiliations will continue following the close of the

proposed transaction. The entities are described as follows:




                                                   6
280788.5


                                                                                Attachment 1
                                                                          FCC Form 214TC
                                         Application for Transfer of Control of International
                                        Section 214 Authorization ITC-214-20110609-00184


Country Where       Foreign Carrier         Description of the Company
Service Provided    Affiliate Name

Burkina Faso (WTO   Spidersat              Spidersat-BF is a wholly owned indirect
members)            Communications SARL subsidiary of ITC Holdings that is also being
                    (“Spidersat-BF”)       indirectly acquired by Panasonic Corporation
                                           in connection with the proposed transaction.
                    A Burkina Faso entity. Upon completion of the transaction, ITC USA
                                           will remain affiliated, and Transferee will
                                           become affiliated, with Spidersat-BF through
                                           common ownership by Panasonic Corporation.

                                            Spidersat-BF holds a license from the Autorité
                                            de Régulation des Communications
                                            Électroniques et des Postes of Burkina Faso to
                                            provide Internet access. Pursuant to this
                                            license, Spidersat-BF provides Internet access
                                            via satellite to mining and exploration
                                            companies. Spidersat-BF has a market share of
                                            less than 5% of the telecommunications market
                                            in Burkina Faso.

Chile               ITC Global Chile S.A.   ITC-Chile is a wholly owned direct subsidiary
(WTO Member)        (“ITC-Chile”)           of ITC Global that is also being acquired in
                                            connection with the proposed transaction.
                    A Chilean entity.       Upon completion of the transaction, ITC USA
                                            will remain affiliated, and Transferee will
                                            become affiliated, with ITC-Chile through
                                            common ownership by Transferee.

                                            ITC-Chile holds a license (Decree No. 64)
                                            from the Ministerio de Transportes y
                                            Telecomunicaciones; Subsecretaría de
                                            Telecomunicaciones of Chile to provide data
                                            services using VSAT earth stations. Pursuant
                                            to this license, ITC-Chile provides data
                                            services via satellite to mining and exploration
                                            companies. ITC-Chile has a market share of
                                            less than 5% of the telecommunications market
                                            in Chile.




                                            7
280788.5


                                                                                  Attachment 1
                                                                            FCC Form 214TC
                                           Application for Transfer of Control of International
                                          Section 214 Authorization ITC-214-20110609-00184


Country Where      Foreign Carrier            Description of the Company
Service Provided   Affiliate Name

Ghana (WTO         Spidersat                  Spidersat-Ghana is a wholly owned indirect
member)            Communications             subsidiary of ITC Holdings that is also being
                   Limited (“Spidersat-       indirectly acquired by Panasonic Corporation
                   Ghana)                     in connection with the proposed transaction.
                                              Upon completion of the transaction, ITC USA
                   A Ghanaian entity.         will remain affiliated, and Transferee will
                                              become affiliated, with Spidersat-Ghana
                                              through common ownership by Panasonic
                                              Corporation.

                                              Spidersat-Ghana holds a license from the
                                              National Communications Authority of Ghana
                                              to operate a “Direct to Home Satellite
                                              Network”, which is used to provide Internet
                                              access via satellite to mining and exploration
                                              companies. Spidersat-Ghana has a market
                                              share of less than 5% of the
                                              telecommunications market in Ghana.

Switzerland (WTO   NewSat                     NewSat is a wholly owned indirect subsidiary
member)            Communications SA          of ITC Holdings that is also being indirectly
                   (“NewSat”)                 acquired by Panasonic Corporation in
                                              connection with the proposed transaction.
                   A Swiss entity.            Upon completion of the transaction, ITC USA
                                              will remain affiliated, and Transferee will
                                              become affiliated, with NewSat through
                                              common ownership by Panasonic Corporation.

                                              NewSat holds a concession license from the
                                              Swiss Federal Office of Communications
                                              pursuant to which NewSat provides
                                              telecommunications services to customers
                                              based in Switzerland and the rest of the world.
                                              NewSat has a market share of less than 5% of
                                              the telecommunications market in Switzerland.




                                             8
280788.5


                                                                                  Attachment 1
                                                                            FCC Form 214TC
                                           Application for Transfer of Control of International
                                          Section 214 Authorization ITC-214-20110609-00184


Country Where         Foreign Carrier         Description of the Company
Service Provided      Affiliate Name

Australia (WTO        ITC Global (Australia) ITC-Australia is a wholly owned direct
member)               Pty Ltd. (“ITC-        subsidiary of ITC Global that is also being
                      Australia”)            acquired in connection with the proposed
                                             transaction. Upon completion of the
                      An Australian Entity.  transaction, ITC USA will remain affiliated,
                                             and Transferee will become affiliated, with
                                             ITC-Chile through common ownership by
                                             Transferee.

                                              ITC-Australia holds the 16 satellite earth
                                              station licenses issued by the Australian
                                              Communications and Media Authority listed
                                              below. ITC-Australia also provides services
                                              pursuant to a Radiocommunications
                                              (Communication with Space Object) Class
                                              License 1998, as amended, made under
                                              subsection 132(1) of the Radiocommunications
                                              Act of 1992. ITC-Australia uses these licenses
                                              to provide IP communications via satellite to
                                              maritime, mining, and oil and gas clients. ITC-
                                              Australia has a market share of less than 5% of
                                              the telecommunications market in Australia.


Satellite Earth Station Licenses issued to ITC-Australia by the Australian Communications and

Media Authority:

           Location                              Callsign     Class of Station     License
                                                                                   Number
           Landsdale - 9019974                   VM213          Fixed Earth        1971275


           Landsdale – 9019974                   VM214         Earth Receive       1971276


           Landsdale – 9020270                   VM215         Earth Receive       1972122


           Landsdale – 9020270                   VM216          Fixed Earth        1972123


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280788.5


                                                                                   Attachment 1
                                                                             FCC Form 214TC
                                            Application for Transfer of Control of International
                                           Section 214 Authorization ITC-214-20110609-00184


           Location                                Callsign    Class of Station     License
                                                                                    Number
           Near FMG Railway 43.5 km South
                                                   VM217        Earth Receive       1972264
           of Prot Hedland - 9020238

           Near FMG Railway, off Great
           Northern Highway 92 km South of         VM218        Earth Receive       1972265
           Port Hedland – 9020239

           Near FG Railway, off Great
           Northern Highway 140 km South           VM219        Earth Receive       1972266
           of Port Hedland - 9020240

           Near FMG Railway 186 km South
                                                   VM222        Earth Receive       1972267
           of Port Hedland – 9020241

           Near FMG Railway, off Great
           Northern Highway 92 km South of         VM223         Fixed Earth        1972268
           Port Hedland – 9020239

           Near FMG Railway 186 km South
                                                   VM224         Fixed Earth        1972269
           of Port Hedland - 9020241

           Near FG Railway, off Great
           Northern Highway 140km South            VM225         Fixed Earth        1972270
           of Port Hedland - 9020240

           Near FMG Railway 43.5 km South
                                                   VM226         Fixed Earth        1972271
           of Port Hedland - 9020238

           Canning Vale – 9019152                  VM242         Fixed Earth        1974956


           Canning Vale – 9019152                  VM243        Earth Receive       1974957


           Barrow Island – 9021912                 VM283        Earth Receive       1980903


           Barrow Island – 9021912                 VM284         Fixed Earth        1980904




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                                                                                       Attachment 1
                                                                                 FCC Form 214TC
                                                Application for Transfer of Control of International
                                               Section 214 Authorization ITC-214-20110609-00184


           ITC Global is also affiliated with SpiderSat Communications Limited (“SpiderSat-

Tanzania”), a Tanzanian entity that is also being acquired in connection with the proposed

transaction.       SpiderSat-Tanzania’s Application Services        License with the Tanzania

Communications Regulatory Authority was recently granted and permits SpiderSat-Tanzania to

provide Internet access via satellite and terrestrial circuits to mining and exploration companies.

SpiderSat-Tanzania has a market share of less than 5% of the telecommunications market in

Tanzania, a World Trade Organization (‘WTO”) member.

Answer to Question 15

           Upon completion of the transaction, (i) Licensee will continue to be affiliated with ITC-

Chile, ITC-Australia, Spidersat-BF, Spidersat-Ghana, Spidersat-Tanzania, and NewSat

(collectively, the “ITC Foreign Carriers”) and (ii) Transferee will wholly own ITC-Chile and

ITC-Australia and will be affiliated through common ultimate ownership by Panasonic

Corporation with Spidersat-BF, Spidersat-Ghana, Spidersat-Tanzania, and NewSat.

Answer to Question 16

           ITC USA and Transferee request continued classification as a nondominant carrier under

Section 63.10 of the Commission’s Rules on all routes between the United States and the foreign

countries specified in Question 14 above, each of which is a member of the WTO. Each of the

ITC Foreign Carriers lacks 50 percent market share in the international transport and local access

markets on the foreign end of the routes and thus lacks sufficient market power on the foreign

end to adversely affect competition in the U.S. market. Further, none of the ITC Foreign

Carriers is on the Commission’s List of Foreign Telecommunications Carriers that are presumed

to Possess Market Power in Foreign Telecommunications Markets, released on January 26, 2007.


                                                  11
280788.5


                                                                                        Attachment 1
                                                                                  FCC Form 214TC
                                                 Application for Transfer of Control of International
                                                Section 214 Authorization ITC-214-20110609-00184


Accordingly, pursuant to Section 63.10(a)(3), ITC USA and Transferee qualify for a

presumption of non-dominance on these routes.

Answer to Question 20

           Applicant respectfully submits that this Application is eligible for streamlined processing

pursuant to Section 63.12(a)-(b) of the Commission’s Rules, 47 C.F.R. § 63.12(a)-(b).              In

particular, Section 63.12(c)(1) is inapplicable because ITC USA and Transferee qualify for a

presumption of non-dominance under § 63.10(a)(3), and thus demonstrates compliance with

63.12(c)(1)(ii).     Furthermore, none of the scenarios outlined in Section 63.12(c)(2) and

63.12(c)(3) of the Commission’s Rules, 47 C.F.R. § 62.12(c), apply.                Accordingly, this

Application should be subject to streamlined processing.




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Document Created: 2015-03-16 08:01:51
Document Modified: 2015-03-16 08:01:51

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