Attachment Delta STA Grant.pdf

Delta STA Grant.pdf

DECISION submitted by FCC

STA Grant

2018-11-29

This document pretains to ITC-T/C-20181128-00223 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2018112800223_1584631

  Streamlined       ITC-STA-201 81112-00210
                    1B201 8010213
  Delta Communications

                                               Beforethe                                              NflV   2g2018
: n-c -rfc   -        -   oca. s FEDERAL COMMUNICATIONS       COMMISSION
                                          Washington, D.C. 20554                                    InternatIonal Bureau
          In the Matter of                                       )
                                                                 )
          DELTA COMMUNICATIONS, L.L.C.                           )          WC Docket No.
          DIB/A CLEARWAVE COMMUNICATIONS,                        )
                Transferor                                       )          ITC-STA-2018____________

          and                                                                                       Granted
                                                                 )
          CABLE ONE, INC.,                                       )                   date:   J-4vbe.f 29 IJI
              Transferee                                         )                   authorized by:              RIccornnlg,qJw,5
                                                                 )
                                                                                     “   I1cir   bIVSID’)   innd1.cI      T3vrçv
          Application for Consent for Transfer of                )
          Control pursuant to Section 214 of the                                     signature
          Communications Act of 1934, as Amended                 )
                                                                                      p;sMy .21,.ael9

                             REQUEST FOR SPECIAL TEMPORARY AUTHORITY

                 Concurrently with this Request for Special Temporary Authority (“STA”), Delta

          Communications, L.L.C. d/b/a Clearwave Communications (“Clearwave”) and Cable One, Inc.

          (“Cable One”) (Clearwave and Cable One collectively, the “Applicants”) are filing a Joint

          Application with the Federal Communications Commission (“Commission”) for authority to

          transfer control of Clearwave to Cable One pursuant to 47 U.S.C.       §   214 and 47 C.F.R.       §   1.763,

          63.03, 63.04, 63.18, and 63.24 (the “Application”). The Applicants hereby respectfully submit

          this STA request pursuant to 47 U.S.C.       §   214 and 47 C.F.R.     §    63.04 and 63.24 to permit

          Clearwave to continue its interstate and international telecommunications operations under its

          existing ownership pending approval of the Application.

                 As described in the Application, Clearwave holds blanket domestic Section 214 authority

          and global Section 214 authority to provide international facilities-based and resale services.1


                 lB File No. ITC-214-20021022-00509; FCC filer ID 819867.


Clearwave also is a recipient of funds under the National Telecommunications and hiformation
                                                                                                 2
Administration (“NIIA”) Broadband Technology Opportunities Program (“BTOP”) and the

Commission’s rural broadband experiments (“RBE”) program.3

        In preparation for the transfer of control transaction described in the Application,

Clearwave discovered that it did not seek prior Commission approval of a 2011 private equity

investment in the company. Specifically, SCP Clearwave LLC (“SCP”), an Arkansas limited

liability company and subsidiary of Stephens Capital Partners, acquired a 70.9% interest in

Clearwave in 2011.          Since then, SCP’s interest in Clearwave has increased to 83.1%.             The

remaining interest in Clearwave is held by various individuals, none of which hold a ten percent

(10%) or greater interest in Clearwave. Clearwave disclosed the SCP ownership interest to the

Commission in 2014 when it filed its application for participation in the Commission’s RBE

program.4

        Stephens         Capital   Partners   and   its   subsidiaries     hold   investments     in   other

telecommunications entities. There are five (5) Stephens family trusts that own ten percent

(10%) or more of SCP:              (1) Harriet Calhoun Stephens Trust UID 3/22/84; (2) Warren A.

Stephens Trust UD 9/30/87; (3) Miles Stephens WHCT Trust UD 9/30/87; (4) John Calhoun

Stephens WHCT Trust UTD 9/30/87; and (5) Laura W. Stephens WHCT Trust UTD 9/30/87. All

ownership of SCP is U.S.-based. The address of SCP and the other Stephens Capital Partners

entities is 111 Center Street, Suite 1600, Little Rock, Arkansas 72201.



2
        https://www2.nüa.doc.gov/files/grantees/deltacommunications.pdf.

       Rural Broadband Experiment Support Authorized for Ten Winning Bids for Skybeam, LLC, Consolidated
Communications Networks, Inc., Delta Communications LLC, and Allamakee-Clayton Electric Cooperative, Inc., 30
FCC Rcd 8283 (2015).
4
        See supra n.3.



                                                      2


        Grant of this STA will serve the public interest.5 The STA is needed to allow Clearwave

to continue to operate pending Commission action on the Application. Clearwave is an active

telecommunications carrier providing telecommunications services to carriers and business

customers in the state of Illinois.       As such, grant of the STA will permit the uninterrupted

provision of services to the existing customers of Clearwave. The Applicants have acted in good

faith to notify the Commission of this oversight, and upon completion of the transaction

described in the Application and Commission approval, Clearwave will be one-hundred percent

(100%) owned by Cable One. Cable One has a long history of compliance with Commission

rules, and maintains internal personnel and external regulatory counsel to oversee compliance

with Commission requirements.6

        The Applicants request the grant of STA remain in effect for at least sixty (60) days, or

until the Application is approved, whichever is longer. The Applicants acknowledge that the

grant of STA will not prejudice any action the Commission may take on the Application, and the

STA can be revoked by the Commission upon its own motion without a hearing.




        47 U.S.C. § 214(a) (Commission may permit temporary operation when present or future public
convenience and necessity requires).
6
         The Commission has granted STAs in similar factual circumstances. See, e.g., wc Docket Nos. 06-192,
07-115, 08-177, 13-265, 17-309, 17-322; File Nos. ITC-STA-20 I 00701-00268; ITC-STA-20 180718-00146.



                                                      3


       WHEREFORE, for the forgoing reasons, the Applicants respectfully request that the

Commission act expeditiously to grant the requested STA pending approval of the Application.

                                                  Respectfully submitted,

DELTA COMMUNICATIONS, L.L.C.                      CABLE ONE, INC.


/s/ Matthew Dement                                /s/ Steven S. Cochran
Matthew Dement                                    Steven S. Cochran
President and Chief Executive Officer             Senior Vice President and Chief Financial
Delta Conununications, LL.C.                       Officer
2 N. Vine Street                                  Cable One, Inc.
Harrisburg, Illinois 62946                        210 F. Earll Drive
                                                  Phoenix, Arizona 85012

Allison D. Rule                                   Chérie R. Kiser
Marashlian & Donahue, PLLC                        Angela F. Collins
The CommLaw Group                                 Cahill Gordon & Reindel LLP
1420 Spring Hill Road                             1990 K Street, N.W., Suite 950
Suite 401                                         Washington, D.C. 20006
McLean, VA 22102                                  202-862-8900 (telephone)
703-714-1312 (telephone)                          ckiser@cahill.com
adr@commlawgroup.com                              acollins@cahill. corn

Its Attorneys                                     Its Attorneys


Dated: November 12, 2018




                                              4


STATE OF ILLINOIS                                 §
                                                  §      ss:
COUNTY OF SALINE                                  §                            I




                                               VERIFICATION

       I, Matt Dement, state that I am the President & Chief Executive Officer of Delta

Communications, LLC d/b/a Clearwave Communications (the “Company”); that I am authorized

to make this Verification on behalf of the Company; that I have read the foregoing document;

and that any statements in the foregoing document with respect to the Company, except as

otherwise specifically attributed, are true and collect to the best of my knowledge, information,

and belief.




                                                  Matt Dement
                                                  President & Chief Executive Officer
                                                  Delta Communications, LLC d/b/a Clearwave
                                                       Communications




Sworn and subscribed before me this               day of November 2018.


                                                      •LJ(y JP        LIJ    Aji,
      Notary Public, State of Illinois            Notar’ Public
              ssnt 11-03-2020

My commission expires                    ‘.3


STATE OF ARIZONA                             §
                                            §       ss:
COUNTY OF MARICOPA                          §

                                       VERIFICATION

       I, Steven S. Cochran, state that I am the Senior Vice President and Chief Financial

Officer of Cable One, Inc. (the “Company”); that I am authorized to make this Verification on

behalf of the Company and its affiliates; that I have read the foregoing document; and that any

statements in the foregoing document with respect to the Company and its affiliates, except as

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

and belief.




                                            Steven S. Cochran
                                            Senior Vice President and Chief Financial Officer
                                            Cable One, Inc.



Sworn and subscribed before me this   I tday of November 2012.


                                            Notary Public

                                                            MARL\NNE
                                                            Notary Pubc- State of Arizona
My commission expires                                         MARICOPACOUNtV
                                                             My Commission Expires
                                                                October 04, 2021



Document Created: 2018-11-30 18:46:28
Document Modified: 2018-11-30 18:46:28

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