GCICC Supplement (Fi

LETTER submitted by GCI Communication Corp.

Supplement

2017-11-21

This document pretains to SCL-LIC-20171031-00024 for License on a Submarine Cable Landing filing.

IBFS_SCLLIC2017103100024_1305942

November 21, 2017



BY ELECTRONIC MAIL

Ms. Marlene H. Dortch
Secretary
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554

       Re:     File No. SCL-LIC-20171031-00024

Dear Ms. Dortch:

        On behalf of GCI Communication Corp. (“GCICC”), I hereby respond to inquiries made
by International Bureau staff by email on November 16, 2017, with respect to the above-
referenced cable landing license application for the TERRA-Aleutian cable system.

        Regarding the likely closing date of the GCI-Liberty transaction, for which the
Commission recently granted consent,1 the transaction parties have indicated that they intend to
consummate the transaction in the first quarter of 2018.2 Consummation of the transaction will
result in changes to the indirect ownership of GCICC, as detailed on pages 6 and 7 of the
application filed in FCC File No. SCL-T/C-20170501-00013 with respect to GCICC’s existing
cable landing license interests (attached, without exhibits, as Exhibit 1) and shown graphically in
the attached ownership diagram (Exhibit 2).

        Regarding the nature of the cable landing station facilities listed on page 3 of the
application and detailed in appendices 2 through 6 of that application, all of those cable landing
station facilities will be new facilities constructed in connection with TERRA-Aleutian.

     Finally, please note that the reference to “AU-BLUE” on page 4 should be corrected to
“TERRA-Aleutian.”



1
    Joint Application of General Communication, Inc. and GCI Liberty, Inc. for Consent to
    Transfer Control, DA 17-1096, WC Docket No. 17-114 (rel. Nov. 8, 2017).
2
    See General Communication, Inc., Form 8-K, Exhibit 99.1, at 2 (filed Apr. 7, 2017); Liberty
    Interactive Corp., Form 8-K, at 4 (filed Apr. 4, 2017).


Ms. Marlene H. Dortch
Federal Communications Commission
November 21, 2017
Page 2

      Should you require any additional information, please do not hesitate to contact me.

                                           Respectfully submitted,


                                           Kent Bressie
                                           Counsel for GCI Communication Corp.


Attachments

cc:   Jodi Cooper
      David Krech


               EXHIBIT 1:

TRANSFER-OF-CONTROL APPLICATION FILED IN
     FCC FILE NO. SCL-T/C-20170501-00013


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


 In the Matter of

 GENERAL COMMUNICATION, INC.,                         File No. SCL-T/C-2017-____________
    Transferor,

 GCI LIBERTY, INC.
   Transferee,

 GCI Communication Corp.,
 Kodiak Kenai Fiber Link, Inc.,
 Unicom, Inc., and
 United Utilities, Inc.,
    Licensees,

 Application for Consent to Transfer Control
 Rights of Cable Landing Licenses



CONSOLIDATED APPLICATION FOR CONSENT TO TRANSFER OF CONTROL OF
  CABLE LANDING LICENSES—STREAMLINED PROCESSING REQUESTED

       Pursuant to 47 U.S.C. § 34, Executive Order No. 10,530, and 47 C.F.R. § 1.767, General

Communication, Inc. (“GCI”) and GCI Liberty, Inc. (“GCI Liberty”) apply for Commission

consent to the transfer of control of five cable landing licenses held by GCI Communication

Corp. (“GCICC”), Kodiak Kenai Fiber Link, Inc. (“KKFL”), Unicom, Inc. (“Unicom”), and

United Utilities, Inc. (“UUI”) (together with GCICC, KKFL, and Unicom, “GCI Cable Landing

Licensees,” together with GCI and GCI Liberty, the “Applicants”). GCI, Liberty Interactive

Corporation (“LIC”), and their affiliates have entered into agreements pursuant to which GCI’s

operating businesses will be combined with certain businesses and assets attributed to the Liberty

Ventures Group of LIC under a new holding company, GCI Liberty (the “Proposed

Transaction”). GCI’s operating companies will comprise the primary operating subsidiaries of


GCI Liberty, will continue to operate under the GCI brand, and will maintain current

management and headquarters in Anchorage, Alaska.

       Consummation of the Proposed Transaction will serve the public interest by providing

GCI’s operating businesses with more stable access to financial markets and greater capacity to

execute on GCI’s current business plan. It will reduce the exposure of those businesses to

Alaska-specific market fluctuations and diversify the overall enterprise beyond Alaska, with GCI

Liberty being a substantially larger and more diverse company than GCI is today.

       The Proposed Transaction raises no public interest concerns that would warrant an

extended review or transaction-specific conditions for consent. Indeed, this consolidated

application qualifies for presumptive streamlined processing under 47 C.F.R. § 1.767(k)(1).

Upon consummation of the Proposed Transactions, the Applicants will not be affiliated with any

foreign carriers in any foreign countries where any of the five submarine cable systems licensed

to the GCI Cable Landing Licenses (collectively, the “GCI Submarine Cable Systems”) lands, as

the GCI Submarine Cable Systems all have exclusively U.S. domestic landing points. Moreover,

the Proposed Transaction would create no new combinations that would adversely affect

competition in any geographic market for submarine cable capacity. GCI Liberty will not

control any submarine cable operators licensed by the Commission other than those within GCI.

GCI Liberty will be U.S.-owned and controlled and will not have any 10-percent-or-greater

direct or indirect foreign owners.

I.     BACKGROUND

       In Exhibit 1, the Applicants and their affiliates describe in greater detail the Proposed

Transaction and the Applicants, including diagrams showing the pre- and post-consummation

ownership of the GCI Cable Landing Licensees. In that exhibit, the Applicants and their



                                                 2


affiliates also describe in greater detail the public interest benefits of, and absence of competitive

harms resulting from, the Proposed Transaction.

       The GCI Cable Landing Licensees collectively hold cable landing licenses for five

submarine cable systems:

                           TABLE 1: GCI Submarine Cable Systems

                                                                                            Year of
   Submarine
                                                                                           Entry Into
     Cable        Licensee(s)        FCC File Number(s)             Landing Points
                                                                                          Commercial
    System
                                                                                            Service
                                 SCL-LIC-19961205-00615
                                                                   Juneau, AK
                                 SCL-LIC-19980602-00008
  Alaska                                                           Lynnwood, WA
                   GCICC         SCL-ASG-19971125-00013                                       1999
  United East                                                      Valdez, AK
                                 SCL-MOD-20020409-00018
                                                                   Whittier, AK
                                 SCL-MOD-20020409-00019
                                 SCL-LIC-20020522-00047
  Alaska                                                           Seward, AK
                   Unicom        SCL-ASG-20080515-00025                                       2004
  United West                                                      Warrenton, OR
                                 SCL-ASG-20121019-00013
  Cook Inlet
                   GCICC                                           Homer, AK
  Segment of                     SCL-LIC-20100914-00021                                       2012
                   UUI                                             Williamsport, AK
  TERRA-SW
                                                                   Anchorage, AK
                                                                   Homer, AK
  Kodiak-                        SCL-LIC-20060413-00004
                                                                   Kenai, AK
  Kenai Fiber      KKFL          SCL-ASG-20090817-00025                                       2007
                                                                   Kodiak, AK
  Link                           SCL-T/C-20160906-00016
                                                                   Narrow Cape, AK
                                                                   Seward, AK
                                                                   Angoon, AK
                                                                   Hawk Inlet, AK
                                                                   Juneau, AK
  SEAFAST          GCICC         SCL-LIC-20071023-00019            Ketchikan, AK              2008
                                                                   Petersburg, AK
                                                                   Sitka, AK
                                                                   Wrangell, AK

The GCI Cable Landing Licensees operate these five systems as an integrated whole, which they

have branded as the Alaska United Fiber-Optic Cable System.


                                                  3


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

         Pursuant to 47 C.F.R. § 1.767(a)(11)(i), the Applicants provide the following information

in support of this application.

         A.      Applicant Identification Information1

         In Table 2 below, the Applicants provide their names, addresses, telephone numbers,

places of organization, and FCC Registration Numbers.

                         TABLE 2: Applicant Identification Information

         Name, Address, and                 Place of
                                                            FRN             Transaction Role
            Telephone #                   Organization

    General Communication, Inc.
    2550 Denali Street, Suite 1000
                                          Alaska         0001570951 Transferor
    Anchorage, Alaska 99503
    (907) 265-5600

    GCI Liberty, Inc.2

    Liberty Interactive Corporation
                                          Alaska3        0026415356 Transferee
    12300 Liberty Boulevard
    Englewood, Colorado 80112
    (720) 875-5300

    GCI Communication Corp.                                         Licensee for Alaska United
    2550 Denali Street, Suite 1000                                  East and SEAFAST; joint
                                          Alaska         0001568880
    Anchorage, Alaska 99503                                         licensee for the Cook Inlet
    (907) 265-5600                                                  Segment

    Kodiak Kenai Fiber Link, Inc.
    2550 Denali Street, Suite 1000                       0018916742 Licensee for Kodiak-Kenai
                                          Alaska
    Anchorage, Alaska 99503                                         Fiber Link
    (907) 265-5600


1
      See 47 C.F.R. § 1.767(a)(1), (2).
2
      GCI Liberty, Inc. is the entity resulting from the Proposed Transaction. Prior to
      consummation of the Proposed Transaction, the contact is Liberty Interactive Corporation.
3
      As soon as practicable after closing of the Proposed Transaction, and upon receipt of
      required shareholder approvals, GCI Liberty will merge into a new Delaware subsidiary,
      retaining the name GCI Liberty, Inc.
                                                    4


         Name, Address, and             Place of
                                                          FRN              Transaction Role
            Telephone #               Organization

    Unicom, Inc.
    2550 Denali Street, Suite 1000                                   Licensee for Alaska United
                                      Alaska            0001567908
    Anchorage, Alaska 99503                                          West
    (907) 265-5600

    United Utilities, Inc.
    2550 Denali Street, Suite 1000                                   Joint licensee for the Cook
                                      Alaska            0001571561
    Anchorage, Alaska 99503                                          Inlet Segment
    (907) 265-5600

         B.      Contact Information4

         The Commission should address correspondence regarding this application to the persons

identified in Table 3 below.

                                 TABLE 3: Contact Information

        Party                  Company Contact                       Counsel Contact

    GCI and           Chris Nierman                        Kent Bressie
    GCI Cable         Senior Counsel, Federal Affairs      Julie A. Veach
    Landing           GCI Communication Corp.              Harris, Wiltshire & Grannis LLP
    Licensees         1900 L Street N.W., Suite 700        1919 M Street, N.W., Suite 800
                      Washington, D.C. 20036               Washington, D.C. 20036-3537
                      (202) 457-8815                       (202) 730-1300
                      cnierman@gci.com                     kbressie@hwglaw.com
                                                           jveach@hwglaw.com

    GCI Liberty or    Richard N. Baer                      Robert L. Hoegle
    Liberty           Chief Legal Officer                  Thomas F. Bardo
    Interactive       Liberty Interactive Corporation      Nelson Mullins Riley &
    Corporation       12300 Liberty Boulevard                Scarborough LLP
                      Englewood, Colorado 80112            101 Constitution Avenue, Suite 900
                      (720) 875-5300                       Washington, D.C. 20001
                                                           (202) 712-2816
                                                           bob.hoegle@nelsonmullins.com
                                                           tom.bardo@nelsonmullins.com




4
      See 47 C.F.R. § 1.767(a)(3).
                                                 5


       C.      Certification Regarding Ownership, Place of Organization, Principal
               Business, and Interlocking Directorates5

       By its signature below, GCI Liberty certifies that the GCI Cable Landing Licensees will

have the following 10-percent-or-greater interest holders following the consummation of the

Proposed Transaction:

               Kodiak-Kenai Cable Company, LLC (“KKCC”)
               Address: 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503
               Place of Organization: Alaska
               Principal Business: telecommunications
               Relationship: KKCC will hold a 100-percent voting-and-equity interest in KKFL.

               GCI Communication Corp. (“GCICC”)
               Address: 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503
               Place of Organization: Alaska
               Principal Business: telecommunications
               Relationship: GCICC will hold a 100-percent voting-and-equity interest in each
                      of KKCC, Unicom, and UUI.

               GCI Holdings, LLC (“GCIH”)
               Address: 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503
               Place of Organization: Alaska
               Principal Business: holding company
               Relationship: GCIH will hold a 100-percent voting-and-equity interest in
                      GCICC.

               Ventures Holdco, LLC (“Ventures Holdco”)
               Address: 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503
               Place of Organization: Alaska
               Principal Business: holding company
               Relationship: Ventures Holdco will hold a 100-percent voting-and-equity interest
                      in GCIH.

               GCI, LLC (“GCI”)
               Address: 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503
               Place of Organization: Alaska
               Principal Business: holding company
               Relationship: GCI will hold a 100-percent voting-and-equity interest in Ventures
                      Holdco.




5
    See id. §§ 1.767(a)(8)(i), 63.18(h).
                                               6


               GCI Liberty, Inc. (“GCI Liberty”)
               Address: 12300 Liberty Boulevard Englewood, Colorado 80112
               Place of Organization: Alaska, to be reincorporated in Delaware upon
                      shareholder approval following consummation of the Proposed
                      Transaction
               Principal Business: holding company
               Relationship: GCI Liberty will hold a 100-percent voting-and-equity interest in
                      GCI.

               Dr. John C. Malone
               Address: c/o Liberty Interactive Corporation, 12300 Liberty Boulevard,
                      Englewood, Colorado 80112
               Citizenship: USA
               Principal Business: telecommunications and investments
               Relationship: Dr. Malone is projected to hold a 27.4-percent voting interest and a
                      4.0-percent equity interest in GCI Liberty.

No other person or entity is projected to hold a 10-percent-or-greater direct or indirect voting or

equity interest in the GCI Cable Landing Licensees following the consummation of the Proposed

Transaction.

       Pursuant to the Reorganization Agreement between the Applicants and LIC, the current

President and Chief Executive Officer of GCI, Ron Duncan, will be a member of the board of

GCI Liberty. Donne Fisher, a former Chairman of the Board of GCI, will also be a member of

the board of GCI Liberty. The remaining members of the initial board will be selected by LIC.

As the terms of the initial members expire or seats otherwise become vacant, directors will be

elected by the shareholders of GCI Liberty.

       Neither Mr. Duncan nor Mr. Fisher is an officer or director in an authorized U.S.

international carrier or for any foreign carrier. The Applicants do not expect to have other

interlocking directorates with foreign carriers but will update this information if needed.




                                                 7


          D.      Certification Regarding the Anti-Drug Abuse Act of 19886

          By its signature below, GCI Liberty certifies that no party to this application is subject to

a denial of federal benefits under Section 5301 of the Anti-Drug Abuse Act of 1988, as

amended.7

          E.      Certification Regarding Foreign Carrier Status and Foreign
                  Affiliations8

          By its signature below, GCI Liberty certifies that upon consummation of the Proposed

Transaction: (1) it will not be a foreign carrier in any country and (2) it will be affiliated with

foreign carriers (including a foreign carrier that controls a cable landing station in a foreign

country) as listed in Table 4 below.

                                         TABLE 4:
      Post-Consummation Affiliated Foreign Carriers and Cable Landing Station Interests

          Country                                          Entity
    Anguilla                 Cable and Wireless (Anguilla) Limited
                             Cable & Wireless Antigua & Barbuda Limited
    Antigua & Barbuda
                             Kelcom International (Antigua & Barbuda) Ltd.
    Austria                  UPC Austria GmbH
                             The Bahamas Telecommunications Company Limited
    Bahamas
                             Columbus Communications Limited
                             Cable & Wireless (Barbados) Limited
    Barbados                 Columbus Telecommunications (Barbados) Limited
                             Karib Cable Inc.
    Belgium                  Telenet Group Holding N.V.
    Belize                   ARCOS-1 USA, Inc.
    Bonaire                  Columbus Networks Bonaire, N.V.
    British Virgin Islands   Cable and Wireless (British Virgin Islands) Limited


6
      See id. §§ 1.767(a)(8)(i), 63.18(o).
7
      21 U.S.C. § 862(a); Anti-Drug Abuse Act of 1988, Pub. L. No. 100-690, § 5301, 102 Stat.
      4181, 4310-12 (1988), which related to denial of Federal benefits to drug traffickers and
      possessors—previously codified at 21 U.S.C. § 853(a)—was renumbered section 421 of the
      Controlled Substances Act of 1990, Pub. L. No. 101-647, § 1002(d)(1), 104 Stat. 4789, 4827
      (1990), and has been recodified as 21 U.S.C. § 862(a). 47 C.F.R. § 63.18(o) does not reflect
      this recodification.
8
      See 47 C.F.R. § 1.767(a)(8)(ii).
                                                    8


      Country                                      Entity
Cayman Islands       Cable and Wireless (Cayman Islands) Limited
Chile                VTR GlobalCom SpA
                     Columbus Networks de Colombia, Ltda.
Colombia             Columbus Networks Zona Franca Ltda.
                     Lazus de Colombia S.A.S.
                     Columbus Networks de Costa Rica S.R.L.
Costa Rica
                     Promitel Costa Rica S.A.
                     Columbus Communications Curaçao N.V.
Curaçao              Columbus Networks Curaçao, N.V.
                     Columbus Networks Netherlands Antilles, N.V.
Czech Republic       UPC Ceska Republica Sro
Dominica             Cable & Wireless Dominica Limited
                     Columbus Networks Dominicana, S.A.
Dominican Republic
                     CWC Cable & Wireless Communications Dominican Republic SA
                     Columbus Networks Centroamerica, S. de R.L.
El Salvador
                     Columbus Networks El Salvador S.A.
Germany              Unitymedia GmbH
                     Cable & Wireless Grenada Limited
Grenada
                     Columbus Communications (Grenada) Limited
Guatemala            Columbus Networks de Guatemala Limitada
Honduras             Columbus Networks de Honduras, S. de R.L.
Hungary              UPC Magyarorszag Kft
Ireland              Virgin Media Ireland Ltd
                     Cable & Wireless Jamaica Limited
Jamaica              Columbus Communications Jamaica Limited
                     Columbus Networks Jamaica Limited
Mexico               Columbus Networks de Mexico S. de R.L. de C.V.
Montserrat           Cable and Wireless (West Indies) Limited
Netherlands          VodafoneZiggo Group Holding BV
Nicaragua            Columbus Networks Nicaragua y Compañia Limitada
                     Cable & Wireless Panama S.A.
                     CWC WS Holdings Panama S.A.
Panama
                     Columbus Networks de Panama S.R.L.
                     Promitel Panama S.A.
Peru                 Lazus Peru S.A.C.
Poland               UPC Polska Sp. z.o.o.
Romania              UPC Romania Srl
St. Kitts & Nevis    Cable & Wireless St. Kitts & Nevis Limited
                     Columbus Communications (St. Lucia) Limited
St. Lucia            Tele (St. Lucia) Inc.
                     Cable & Wireless (St. Lucia) Limited
St. Vincent & the    Cable & Wireless St. Vincent and the Grenadines Limited
Grenadines           Columbus Communications St. Vincent and the Grenadines Limited
Seychelles           Cable & Wireless (Seychelles) Limited

                                        9


          Country                                            Entity
    Slovak Republic           UPC Broadband Slovakia sro
    Switzerland               UPC Schweiz GmbH
                              Columbus Communications Trinidad Limited
    Trinidad and Tobago       Columbus Networks International (Trinidad) Limited
                              Telecommunications Services of Trinidad and Tobago Limited
    Turks & Caicos            Columbus Networks, Limited
    Islands                   Cable and Wireless (TCI) Limited
    United Kingdom            Virgin Media Limited
    (England & Wales)
    Venezuela                 Columbus Networks de Venezuela, S.A.


          F.      Certification Regarding Destination Countries9

          By its signature below, GCI Liberty certifies that upon consummation of the Proposed

Transaction: (1) it will not be a foreign carrier in any foreign country where any of the GCI

Submarine Cable Systems lands, as none of those cable systems lands in a foreign country; (2) it

will not control a foreign carrier in any foreign country where any of the GCI Submarine Cable

Systems lands, as none of those cable systems lands in a foreign country; (3) no entity that owns

more than 25 percent of GCI Liberty, or that controls GCI Liberty, controls a foreign carrier in

any foreign country where any of the GCI Submarine Cable Systems lands, as none of those

cable systems lands in a foreign country; and (4) no grouping of two or more foreign carriers (or

parties that control foreign carriers in any of the foreign countries where any of the GCI

Submarine Cable Systems lands, as there are no such countries) own, in aggregate, more than 25

percent of it and are parties to, or beneficiaries of, a contractual relation affecting the provision

or marketing of arrangements for the terms of acquisition, sale, lease, transfer, and use of

capacity on any of the GCI Submarine Cable Systems.




9
      See id. § 1.767(a)(8)(iii).
                                                  10


         G.      Certifications Regarding WTO Status and Affiliations with Foreign
                 Carriers Having Market Power in Foreign Destination Markets10

         No response is required, as GCI Liberty did not identify any non-WTO markets in

response to 47 C.F.R. § 1.767(a)(8)(iii).

         H.      Certification Regarding Routine Conditions11

         By the signature below, GCI Liberty certifies that it accepts and will abide by the routine

conditions specified in 47 C.F.R. § 1.767(g).

         I.      Streamlining12

         The Applicants request streamlined processing pursuant to 47 C.F.R. § 1.767(k)(1). GCI

Liberty has certified above that upon consummation of the Proposed Transaction, it will not be

affiliated with any foreign carrier in any foreign country where any of the GCI Submarine Cable

Systems land, as the GCI Submarine Cable Systems all have exclusively U.S. domestic landing

points. As this application does not seek authority for any new or modified submarine cable

construction, no certification is required with respect to the Coastal Zone Management Act.13




10
     See id. § 1.767(a)(8)(iv).
11
     See id. § 1.767(a)(9).
12
     See id. § 1.767(j), (k).
13
     See id. § 1.767(k)(4).
                                                 11


                                        CONCLUSION

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

Commission grant unconditional consent for the transfer of control of the GCI Cable Landing

Licensees from GCI to GCI Liberty.

                                               Respectfully submitted,

                                                GCI Liberty, Inc.
                                                (Resulting Applicant)

                                                /s/ Richard N. Baer
                                                Richard N. Baer
                                                Chief Legal Officer
                                                Liberty Interactive Corporation
                                                12300 Liberty Boulevard
                                                Englewood, Colorado 80112
                                                +1 720 875 5300



                                                General Communication, Inc.

                                                /s/ Tina Pidgeon
                                                Tina Pidgeon
                                                General Counsel, Chief Compliance Officer, and
                                                  Senior Vice President, Governmental Affairs
                                                General Communication, Inc.
                                                2550 Denali Street, Suite 1000
                                                Anchorage, Alaska 99503
                                                +1 907 265 5600




 May 1, 2017




                                               12


                 EXHIBIT 2:

     OWNERSHIP OF GCICC FOLLOWING
CONSUMMATION OF GCI-LIBERTY TRANSACTION




               Dr. John C. Malone
                   (U.S. citizen)

                                27.4% voting, 4.0% equity
                GCI Liberty, Inc.
          (Alaska, to be reincorporated in
             Delaware following post-
            consummation shareholder
                     approval)

                                100% voting, 100% equity
                    GCI, LLC
                     (Alaska)

                                100% voting, 100% equity
             Ventures Holdco, LLC
                   (Alaska)

                                100% voting, 100% equity
               GCI Holdings, LLC
                    (Alaska)

                                100% voting, 100% equity
           GCI Communication Corp.
                  (Alaska)



Document Created: 2019-04-12 20:47:22
Document Modified: 2019-04-12 20:47:22

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