Attachment Pro Forma Notice

This document pretains to ITC-T/C-INTR2010-03235 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTCINTR201003235_845886

                         Russell M. Blau
                         Jeffrey R. Strenkowski
                         russell.blau@bingham.com
                         jeffrey.strenkowski@bingham.com

                         October 18, 2010

                         Via MyIBFS and Courier

                         Marlene H. Dortch, Secretary
                         Federal Communications Commission
                         Office of the Secretary
                         445 Twelfth Street, SW
                         Room TW-A325
                         Washington, DC 20554

                         Attn:    International Bureau
                                  Wireline Competition Bureau

                         Re:     Notification of CCGI Holdings, LLC, CCGI Holding Corporation, DSLnet
                                 Communications , LLC, DSLnet Communications Virginia , Inc., Covad
                                 Communications Company and DIECA Communications , Inc. Regarding
                                 a Pro Forma Change in Corporate Structure of DSLnet Communications,
                                 LLC, DSLnet Communications of VA, Inc., Covad Communications
                                 Company and DIECA Communications, Inc.

                         Dear Secretary Dortch:

                         CCGI Holdings, LLC ("New Holdco"), CCGI Holding Corporation ("CCGI"), DSLnet
                         Communications, LLC ("DSLnet"), DSLnet Communications Virginia, Inc. ("DSLnet-
                         VA"), Covad Communications Company ("CCC"), and DIECA Communications, Inc.
                         ("DIECA") (New Holdco, CCGI, DSLnet, DSLnet-VA, CCC, and DIECA collectively, the
                         "Parties"), through their undersigned counsel, and pursuant to Sections 63.03(d) and
               Boston
                         63.24(d) and (f) of the Commission's Rules, notify the Commission of a pro forma
             Hartford
           Hong Kong
                         change in the corporate structure whereby New Holdco has been inserted into the corporate
              London     ownership chain above CCGI, which wholly owns DSLnet, DSLnet-VA, CCC and DIECA.
          Los Angeles    The Parties emphasize that the insertion of New Holdco into the corporate ownership chain
             New York    is only undertaken for internal business reasons and will not affect the ultimate ownership of
       Orange County     DSLnet, DSLnet-VA, CCC and DIECA.
        San Francisco
        Santa Monica
                                                          Description of the Parties
        Silicon Valley
                Tokyo
          Washington             CCGI Holdings , LLC ("New Holdco") is a Delaware limited liability company
                         with principal offices located at 360 North Crescent Drive, Beverly Hills , California
                         90210. New Holdco is ultimately controlled by Platinum Equity, LLC ("Platinum").
                         Neither New Holdco nor Platinum offer any regulated telecommunications services.
Bingham McCutchen LLP
                         Platinum is a privately held Delaware limited liability company with offices also located
      202o K Street NW
       Washington, DC
                         at 360 North Crescent Drive, Beverly Hills, California 90210 . Platinum is a global firm
          2ooo6-i8o6


    T +1.202.373.6ooo
    F +1.202.373.6ooi
         bingham.com     A/73522828.1


Marlene H. Dortch
Secretary
Page 2



at 360 North Crescent Drive, Beverly Hills, California 90210. Platinum is a global firm
specializing in the merger, acquisition and operation of companies that provide services
and solutions to customers in a broad range of business markets, including information
technology, telecommunications, logistics, manufacturing, and entertainment distribution.

Platinum indirectly controls several other telecommunications carriers: Matrix Telecom,
Inc. ("Matrix"); and Americatel Corporation ("Americatel"). Matrix provides integrated
communications services including local, 1+ long distance and toll-free voice services
plus a wide range of data services, such as dedicated Internet access, frame relay and
point-to-point transmission services, chiefly to enterprise customers. Americatel provides
international and domestic facilities-based and resold long distance services, including
"dial around" casual calling (i.e., 101OXXX) service and presubscribed 1+ calling
services, in each of the 48 contiguous states, with a particular emphasis on serving the
needs of United States customers with connections to Latin America and the Caribbean.

CCGI Holding Corporation is a Delaware corporation with offices located at 2220
O'Toole Avenue, San Jose, California 95131. CCGI is the parent company of Covad
Communications Group, Inc. ("Covad"), a Delaware corporation that owns Covad
Communications Company, a California corporation, and DIECA Communications, Inc.,
a Virginia corporation (together, the "Covad-Licensees"), and Covad-Licensees have
principal offices located at 2220 O'Toole Avenue, San Jose, California 95131. Covad is a
leading nationwide provider of integrated voice and data communications. Through its
operating companies (Covad-Licensees), the company offers DSL, Voice Over IP, T1,
Ethernet, Web hosting, managed security, IP and dial-up, wireless broadband, and
bundled voice and data services directly through Covad's network and through Internet
Service Providers, value-added resellers, telecommunications carriers and affinity groups
to small and medium-sized businesses and home users. Covad broadband services are
currently available across the nation in 44 states and 235 Metropolitan Statistical Areas
("MSAs") and can be purchased by more than 57 million homes and businesses, which
represent over 50 percent of all US homes and businesses. Covad-Licensees are
authorized by the Commission to provide international and domestic interstate
telecommunications services as non-dominant carriers.

DSLnet Communications, LLC, a Delaware limited liability company, and DSLnet
Communications VA, Inc., a Virginia corporation, have principal offices located at 50
Barnes Park North, Suite 104, Wallingford, Connecticut 06492 (together, the "DSLnet-
Licensees"). DSLnet-Licensees are wholly owned subsidiaries of MegaPath Inc., which
in turn is a wholly owned subsidiary of CCGI. DSLnet-Licensees provide high speed
access to the Internet services. DSLnet is authorized to provide intrastate
telecommunications services in forty-seven (47) states and the District of Columbia, and
DSLnet-VA is authorized to provide intrastate telecommunications services in Virginia.
DSLnet is authorized by the Commission to provide international and domestic interstate
telecommunications services as a non-dominant carrier; DSLnet-VA is authorized by the
Commission to provide domestic interstate telecommunications services as a non-
dominant carrier.




A/73522828.1


Marlene H. Dortch
Secretary
Page 3



               Description of the Pro Forma Change in Corporate Structure

        The Parties have determined that they require the insertion of a holding company
above CCGI in the corporate ownership chain. The company inserted is New Holdco.
The Parties, therefore, notify the Commission of the pro forma insertion of New Holdco,
which will not change the ultimate ownership of any regulated company, but will
technically effectuate a pro forma change in corporate structure for the DSLnet-Licensees
and Covad-Licensees. For the Commission's convenience, pre- and post-transaction
corporate organizational structure charts are provided as Exhibit A.

        The pro forma transaction will not involve a change in either company's operating
authority and the proposed transaction will be seamless and transparent to consumers.
Further, there will be no change in the DSLnet-Licensees and Covad-Licensees
management as a result of this change of corporate structure. The Parties certify that the
change in corporate structure is pro forma and that it will not result in a change in
ultimate ownership or control of the DSLnet-Licensees and Covad-Licensees.

                              Public Interest Considerations

         The Parties respectfully submit that the transaction serves the public interest. In
particular, the Parties submit that the transaction will be transparent to consumers.
DSLnet-Licensees and Covad-Licensees will continue to be led by an experienced
management team. The pro forma change in corporate structure, which will simply insert
an intermediate holding company, will be seamless and transparent to consumers.

               Information Required by Sections 63.03(d)(2) and 63.24(f)(2)

        As required by Sections 63.03(d)(2) and 63.24(f)(2), the Parties provides the
following information required by 63.04(a)(1) through (a)(4) with respect to the Parties:

         Name and address of each Party (Sections 63.04(a)(1) & 63.18(a)):

         DSLnet-Licensees:

                   DSLnet Communications LLC                FRN 0004324851
                   DSLnet Communications VA Inc.            FRN 0015540230
                   50 Barnes Park North
                   Suite 104
                   Wallingford, Connecticut 06492




A/73522828.1


Marlene H. Dortch
Secretary
Page 4



        Covad-Licensees:

                CCGI Holding Corporation                   FRN 0017234758
                Covad Communications Company               FRN 0003753753
                DIECA Communications, Inc.                 FRN 0003753787
                2220 O'Toole Avenue
                San Jose, CA 95131

                Platinum Equity, LLC                   FRN 0014921878
                360 North Crescent Drive, South Building
                Beverly Hills, CA 90210

State of organization (Sections 63.04(a)(2) & 63.18(b)):

                DSLnet is a Delaware limited liability company

                DSLnet-VA is a Virginia corporation.

                CCGI is a Delaware corporation.

                CCC is a California corporation.

                DIECA is a Virginia corporation.

Contact Person(s) (Section 63.04(a)(3) & 63.18(c)):

         Russell M. Blau
         Jeffrey R. Strenkowski
         Bingham McCutchen LLP
         2020 K Street, N.W.
         Washington , DC 20006
         202-373-6000 (Tel)
         202-373-6001 (Fax)
         jeffrey.strenkowski @bingham.com
         russell .blau@bingham.com




A/73522828.1


Marlene H. Dortch
Secretary
Page 5



with copies to:
        Eva Kalawski, Esq.                            Anthony Hansel
        Executive Vice President, General             Assistant General Counsel
             Counsel and Secretary                    Covad Communications Company
        Platinum Equity, LLC                          1750 K Street, NW
        360 North Crescent Drive, South               Suite 200
             Building                                 Washington, DC 20006
        Beverly Hills, CA 90210                       202-220-0410 (Tel)
        310-712-1850 (Tel)                            202-833-2026 (Fax)
        310-712-1863 (Fax)                            ahansel@covad.com
        ekalawski@platinumequity.com


Section 214 Authorizations Held (Section 63.18(d)):

                 DSLnet-Licensees:       DSLnet holds Section 214 authority to provide
                                         global facilities-based and resold services
                                         pursuant to authority granted by the Commission
                                         in File Nos. ITC-214-19990716-00434 and ITC-
                                         ASG-20030611-00290. DSLnet also holds
                                         blanket domestic Section 214 authority to
                                         provide interstate telecommunications services.

                                         DSLnet-VA holds blanket domestic Section 214
                                         authority, but does provide international
                                         telecommunications services and does not hold
                                         international Section 214 authority.

                 Covad-Licensees:        CCC and DIECA hold blanket domestic
                                         authority to provide interstate services. 47
                                         C.F.R. § 63.01. CCC and DIECA each also hold
                                         global facilities based and resale Section 214
                                         authority to provide international services
                                         pursuant to authority granted in FCC File Nos.
                                         ITC-214-20021118-00544 (CCC) and ITC-214-
                                         20021126-00558 (DIECA).

Ownership Information (Sections 63.04(a)(4) & 63.18(h)):

         The following entities directly or indirectly own more than 10% of the equity of
         DSLnet-Licensees:




A/73522828.1


Marlene H. Dortch
Secretary
Page 6



                 Name:               MegaPath, Inc. ("MegaPath")
                 Address:            555 Anton Boulevard, Suite 200
                                     Costa Mesa, California 92626
                 Ownership:          100% (directly in DSLnet-Licensees)
                 Citizenship:        U.S.
                 Principal Business: Managed IP Communications Services

                 Name:               CCGI Holding Corporation ("CCGI")
                 Address:            360 North Crescent Drive, South Building
                                     Beverly Hills, CA 90210
                 Ownership:          100% (directly in MegaPath; indirectly in DSLnet-
                                     Licensees through MegaPath)
                 Citizenship:        U.S.
                 Principal Business: Holding Company

         The following entities directly or indirectly own more than 10% of the equity of
         Covad-Licensees:
                 Name:               Covad Communications Group, Inc. ("Covad")
                 Address:            2220 O'Toole Avenue
                                     San Jose, California 95131
                 Ownership:          100% (directly in Covad-Licensees)
                 Citizenship:        U.S.
                 Principal Business: Holding Company

                 Name:               CCGI Holding Corporation ("CCGI")
                 Address:            360 North Crescent Drive, South Building
                                     Beverly Hills, CA 90210
                 Ownership:          100% (indirectly in Covad-Licensees as 100%
                                     owner of Covad)
                 Citizenship:        U.S.
                 Principal Business: Holding Company

         The following entities indirectly owns more than 10% of the equity of the
         DSLnet-Licensees and Covad -Licensees through CCGI:
                 Name:                Platinum Equity Capital Partners II, L.P. ("PECP")
                 Address:             360 North Crescent Drive, South Building
                                      Beverly Hills, California 90210
                 Ownership:           61% (indirectly in DIECA and DSLnet as 61%
                                      direct owner of CCGI)
                 Citizenship:         U.S.
                 Principal Business: Investments




A/73522828.1


Marlene H. Dortch
Secretary
Page 7



               Name:                Platinum Blackberry Principals, LLC ("PBP")
               Address:             360 North Crescent Drive, South Building
                                    Beverly Hills, California 90210
               Ownership:           20% (indirectly in DIECA and DSLnet as 20%
                                    direct owner of CCGI)
               Citizenship:         U.S.
               Principal Business: Investments

        Upon completion of the pro forma change in corporate structure, the following
        entities will indirectly own more than 10% of the equity of DSLnet-Licensees
        and Covad-Licensees through CCGI:
                Name:                CCGI Holdings, LLC ("New Holdco")
                Address:             360 North Crescent Drive, South Building
                                     Beverly Hills, CA 90210
                Ownership:           68% (indirectly in DSLnet-Licensees and Covad-
                                     Licensees as 68% owner of CCGI)
                Citizenship:         U.S.
                Principal Business: Investments

                Name:                Platinum Equity Capital Partners II, L.P. ("PECP")
                Address:             360 North Crescent Drive, South Building
                                     Beverly Hills, California 90210
                Ownership:           41% (indirectly in DSLnet-Licensees and Covad-
                                     Licensees through CCGI as 61 % direct owner of
                                     New Holdco)
                Citizenship:         U.S.
                Principal Business: Investments

                Name:                Platinum Blackberry Principals, LLC ("PBP")
                Address:             360 North Crescent Drive, South Building
                                     Beverly Hills, California 90210
                Ownership:           13% (indirectly in DSLnet-Licensees and Covad-
                                     Licensees through CCGI as 20% direct owner of
                                     New Holdco)
                Citizenship:         U.S.
                Principal Business: Investments




A/73522828.1


Marlene H. Dortch
Secretary
Page 8



                Name:               Platinum Equity Investment Holdings II, LLC
                                    ("PEIH")
                Address:            360 North Crescent Drive, South Building
                                    Beverly Hills, California 90210
                Ownership:          68% (indirectly in DSLnet -Licensees and Covad-
                                    Licensees through its indirect ownership interests in
                                    New Holdco).
                Citizenship:        U.S.
                Principal Business: Investments

                Name:                Platinum Equity, LLC
                Address:             360 North Crescent Drive, South Building
                                     Beverly Hills, California 90210
                 Ownership:          68% (indirectly in DSLnet-Licensees and Covad-
                                     Licensees through 100 % direct ownership interest
                                     in PEIH).
                 Citizenship:        U.S.
                 Principal Business: Investments

                 Name:               Tom T. Gores
                 Address:            360 North Crescent Drive, South Building
                                     Beverly Hills, CA 90210
                 Ownership:          68% (indirectly in DSLnet-Licensees and Covad-
                                     Licensees through 100% of ownership interest in
                                     Platinum Equity).
                 Citizenship:        U.S.
                 Principal Business: Individual

         To the best of the Parties' knowledge, no other person or entity currently holds
         or, upon completion of the transaction, will hold a ten percent (10%) or greater
         interest in the Parties.
         DSLnet-Licensees and Covad-Licensees do not have any interlocking
         directorates.
        Through Platinum, the Parties are affiliated with the following foreign carriers:
Americatel Corporation ("Americatel") is an American company that holds a Class B
License in Canada. Vancouver Telephone Company Limited ("Vancouver") is a
subsidiary of Americatel Corporation, and holds a Class A License in Canada.




A/73522828.1


                        Marlene H. Dortch
                        Secretary
                        Page 9



                                  An original and six (6) copies of this letter are enclosed for filing. Please date-
                        stamp the extra copy and return it in the envelope provided. In addition, this notification
                        letter is being filed electronically via MyIBFS. Please direct any questions to the
                        undersigned.




                        Russell M. Blau
                        Jeffrey R. Strenkowski f
                        Bingham McCutchen LLP
                        2020 K Street, NW
                        Washington, DC 20006-1806
                        202-373-6000 (Tel)
                        202-373-6001 (Fax)
                        russell.blau@bingham.com
                        jeffrey.strenkowski @bingham.com

                        Counsel to the Parties




Bingham McCutchen LLP
                        A/73522828.1
         bingham.com


                                       EXHIBIT A

               Pre- and Post- Transaction Corporate Organizational Structure




A/73522828.1


                                             Ownership Chart


                                                    ' Platinum '
                                                    Equity, LLC

                                            (multiple investment vehicles)




                                            CCGI Holding Corporation


                                                             100%




                      MegaPath Inc.                                              Covad
                                                                             Communications
                                                                               Group, Inc.
                               100%

                                                                                      100%




     DSLnet                        DSLnet                      Covad Communications               DIECA
Communications, LLC          Communications VA, Inc.                 Company                 Communications, Inc.


                             Ownership Following Pro Forma Change


                                                    ' Platinum '
                                                    Equity, LLC

                                            (multiple investment vehicles)
                                                             100%

                                               CCGI Holdings, LLC

                                                             67%


                                            CCGI Holding Corporation

                                                             100%




                      MegaPath Inc.                                              Covad
                                                                             Communications
                                                                               Group, Inc.
                               100%
                                                                                      100%




     DSLnet                        DSLnet                      Covad Communications           DIECA
Communications, LLC          Communications VA, Inc.                 Company             Communications, Inc.


STATE OF CALIFORNIA
                                                              ss:
COUNTY OF SANTA CLARA

                                                 VERIFICATION
          I, Douglas Carlen, being duly sworn, deposes and say that I am Secretary and General Counsel of

CCGI       Holding   Corporation     ("CCGI"),    DSLnet   Communications,            LLC ("DSLnet"),     DSLnet

Communications Virginia, Inc. ("DSLnet-VA"), Covad Communications Company ("CCC"), and DIECA

Communications, Inc. ("DIECA") (the "Companies"); that I am authorized to make this Verification on

behalf of the Companies; that the foregoing filing was prepared under my direction and supervision; and

that the contents are true and correct to the best of my knowledge, information, and belief




                                                                         Douglas Carlen
                                                                         Secretary and General Counsel



CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California
County of Santa Clara

On        15 Zo{o , before me, the^^ r notary public, personally appeared Douglas Carlen,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of
which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

[Notary Seal, if any]:
                                                                                SYLVL4 CHAN
                                                             ,- (•'         COMM. 91727531          1T1
                                                             W m4 ° Nota..ry Public - California
                                                                            SANTA CLARA COUNTY
(Signature of Notarial Officer)                                    °'' My Comm. Exp. March 25, 2011



Notary for the State of California

My commission expires:AC-f Z^ 2,o1l

A,'73514664.1



Document Created: 2010-10-18 14:46:47
Document Modified: 2010-10-18 14:46:47

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