Attachment DA 02-2299

This document pretains to SCL-T/C-20020822-00068 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2002082200068_283855

     PUBLIC NOTICE
     Federal Communications Commission                                      News Media Information 202 / 418-0500
     445 12th St., S.W.                                                              Internet: http://www.fcc.gov
     Washington, D.C. 20554                                                                  TTY: 1-888-835-5322




                                                                                      DA 02-2299
                                                                                September 19, 2002



    GLOBAL CROSSING LTD. AND GC ACQUISITION LIMITED SEEK FCC CONSENT
     TO TRANSFER CONTROL OF SUBSIDIARIES HOLDING SUBMARINE CABLE
          LANDING LICENSES, WIRELESS LICENSES AND SECTION 214
      AUTHORIZATIONS, AND REQUEST DECLARATORY RULING ALLOWING
                      INDIRECT FOREIGN OWNERSHIP

                                    IB DOCKET NO. 02-286

                             PLEADING CYCLE ESTABLISHED

Petition/Comment Date: October 21, 2002
Opposition/Response Date: November 5, 2002
Reply Date: November 18, 2002


               I.      THE TRANSACTION

       On August 22, 2002, Global Crossing Ltd. (Debtor-in-Possession) (“Global Crossing”)
and GC Acquisition Limited (“New GX” and, with Global Crossing, the “Applicants”) filed
applications pursuant to sections 214 and 310(d) of the Communications Act of 1934, as
amended (“Communications Act”), and the Cable Landing License Act to transfer control of
Global Crossing’s FCC-licensed subsidiaries from Global Crossing to New GX.1 The
Applicants also request a declaratory ruling that the proposed indirect ownership interests in
1
        Approval is sought with respect to the following subsidiaries of Global Crossing: Budget Call
Long Distance, Inc. (Debtor-in-Possession), Global Crossing Bandwidth, Inc. (Debtor-in-Possession),
Global Crossing Government Markets USA, Inc. (Debtor-in-Possession), Global Crossing Holdings USA,
Inc. (Debtor-in-Possession), Global Crossing Latin America & Caribbean Co. (Debtor-in-Possession),
Global Crossing Local Services, Inc. (Debtor-in-Possession); Global Crossing North American Networks,
Inc. (Debtor-in-Possession), Global Crossing Telecommunications, Inc. (Debtor-in-Possession), GC
Pacific Landing Corp. (Debtor-in-Possession), GT Landing Corp. (Debtor-in-Possession), GT Landing II
Corp. (Debtor-in-Possession), International Optical Networks, L.L.C., MAC Landing Corp. (Debtor-in-
Possession), PAC Landing Corp. (Debtor-in-Possession), PC Landing Corp. (Debtor-in-Possession), and
Racal Telecommunications, Inc. (collectively, the “FCC-Licensed Subsidiaries”).


Global Crossing North American Networks, Inc. by Hutchison Telecommunications Limited
(“Hutchison Telecom”), a Hong Kong company, and Singapore Technologies Telemedia Pte Ltd
(“ST Telemedia”), a Singapore company, are in the public interest under section 310(b)(4) of the
Communications Act.

        The Applicants state that the transaction is intended to facilitate the reorganization of
Global Crossing under Chapter 11 of the U. S. Bankruptcy Code. The transaction contemplates
that Global Crossing will transfer its assets and operations, including its ownership interests in
the FCC-Licensed Subsidiaries, to New GX and that Hutchison Telecom and ST Telemedia each
will invest in New GX. In exchange, Hutchison Telecom and ST Telemedia each will obtain
30.75% of New GX’s equity and voting interests. Pre-Chapter 11 creditors of Global Crossing
and its debtor subsidiaries will obtain 38.5% of New GX’s equity and voting interests.


                II.     THE PARTIES

        According to the Applicants, Global Crossing is a company organized under the laws of
Bermuda with its principal offices in Madison, New Jersey. Global Crossing, through its
subsidiaries, owns and operates a global fiber optic network. Global Crossing’s operating
subsidiaries use the network to provide integrated telecommunications services to corporations,
government agencies, and telecommunications carriers. Global Crossing’s U.S. subsidiaries own
and operate the U.S. portion of the Global Crossing network. The FCC-Licensed Subsidiaries,
according to the Applicants, provide Global Crossing’s U.S. services pursuant to authorizations
from the FCC and the public utility commissions of all 50 states and the District of Columbia.
According to the Applicants, the FCC-Licensed Subsidiaries currently hold the following FCC
licenses and authorizations: eight (8) cable landing licenses, twenty (20) international section
214 authorizations, five (5) blanket domestic section 214 authorizations, twenty-five (25)
common carrier wireless licenses, and two (2) non-common carrier wireless licenses. On
January 28, 2002, Global Crossing and certain of its subsidiaries, including most of the FCC-
Licensed Subsidiaries, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.2

       According to the Applicants, New GX is a company in the process of formation under the
laws of Bermuda for purposes of carrying out the proposed transaction. Initially, Global
Crossing will be the sole shareholder of New GX. Immediately following consummation of the
proposed transaction, Hutchison Telecom and ST Telemedia each will hold 30.75% of the equity
2
        Following the Chapter 11 filings, the Global Crossing subsidiaries that hold FCC licenses
assigned their respective licenses on a pro forma basis to themselves as debtors-in-possession. Global
Crossing Ltd. et al., Application for Authority for a Pro Forma Assignment of Cable Landing Licenses,
File Nos. SCL-ASG-20020214-00005 through SCL-ASG-20020214-00011 (filed Feb. 14, 2002; granted
June 6, 2002); Letter to William Caton from Paul O. Gagnier re Notice of Pro Forma Assignments
Involving Certain Subsidiaries of Global Crossing Ltd. (filed Feb. 14, 2002); Application o f Global
Crossing Ltd. for Pro Forma Assignment of Authorization, ULS File No. 0000789119 (filed Feb. 27,
2002; granted July 3, 2002); Application of Global Crossing North American Networks, Inc. for Pro
Forma Assignment of Authorizations, ULS File No. 0000788919 (filed Feb. 27, 2002; granted July 2,
2002). PC Landing Corp. filed an application to assign its submarine cable landing license to itself as
debtor-in-possession. PC Landing Corp., Application for Authority for a Pro Forma Assignment of a
Cable Landing License, File No. SCL-ASG-20020913-00076 (filed Sept. 13, 2002).

                                                   2


and voting power of New GX. The remaining 38.5% equity and voting interests in New GX will
be held by the creditors of Global Crossing.3 According to the Applicants, the purchase
agreement between Global Crossing, Hutchison Telecom, and ST Telemedia also contemplates
the issuance of stock options to the future management of New GX in an aggregate amount of
8% of New GX’s fully diluted equity. The holdings of Hutchison Telecom, ST Telemedia, and
the creditors will be diluted upon the exercise of the issued management options.


                III.    PETITION FOR DECLARATORY                           RULING        ALLOWING
                        INDIRECT FOREIGN OWNERSHIP

       Applicants filed a petition pursuant to section 310(b)(4) of the Communications Act for a
declaratory ruling that proposed indirect foreign investment by Hutchison Telecom and ST
Telemedia in Global Crossing North American Networks, Inc., an indirect subsidiary of Global
Crossing that holds 25 common carrier point-to-point microwave licenses and two private land
mobile radio licenses, is in the public interest.4 The petition has been assigned the following file
number:

ISP-PDR-20020822-00029                  Global Crossing North American Networks, Inc.


                IV.     INTERNATIONAL SECTION 214 APPLICATIONS

      The Applicants seek authority to transfer control of the following International Section
214 Authorizations:

        File No.                       Authorization Holder                     Authorizations
ITC-T/C-20020822-00406         Budget Call Long Distance, Inc.             ITC-94-031
                               (Debtor-in-Possession)
ITC-T/C-20020822-00443         Global Crossing Bandwidth, Inc.             ITC-9l-193
                               (Debtor-in-Possession)
ITC-T/C-20020822-00444         Global Crossing Government                  ITC-214-20011106-00560
                               Markets USA, Inc. (Debtor-in-
                               Possession)
ITC-T/C-20020822-00445         Global Crossing Holdings USA, Inc.          ITC-214-19990412-00202
                               (Debtor-in-Possession)
ITC-T/C-20020822-00446         Global Crossing North American              ITC-94-381; ITC-94-320;
                               Networks, Inc (Debtor-in-Possession         ITC-9l-077; ITC-93-186
ITC-T/C-20020822-00447         Global Crossing                             ITC-85-126; ITC-87-179;
                               Telecommunications, Inc. (Debtor-in-        ITC-88-152; ITC-88-013;
                               Possession)                                 ITC-87-113; ITC-95-295;

3
        The Applicants state that the identities of the creditors who will become shareholders of New GX
and their ownership interests have not yet been determined.
4
        The Applicants also seek authority for New GX to accept equity and/or voting interests of up to
an additional 25% from non-U.S. investors other than Hutchison Telecom and ST Telemedia.

                                                    3


                                                                        ITC-214-19960530-00220;
                                                                        ITC-214-1996062 l-00265;
                                                                        ITC-214-19960715-00309;
                                                                        ITC-214-19960729-00351
ITC-T/C-20020822-00449        Racal Telecommunications Inc.             ITC-214-19970717-00410
ITC-T/C-20020822-00448        International Optical Networks,           ITC-214-19980520-00334
                              L.L.C.


               V.      DOMESTIC SECTION 214 APPLICATIONS

       The Applicants also seek authority to transfer control of Domestic Section 214
Authorizations held by the following companies:

Budget Call Long Distance, Inc. (Debtor-in-Possession)
Global Crossing Bandwidth, Inc. (Debtor-in-Possession)
Global Crossing Local Services, Inc. (Debtor-in-Possession)
Global Crossing North American Networks, Inc. (Debtor-in-Possession)
Global Crossing Telecommunications, Inc. (Debtor-in-Possession)


               VI.     SUBMARINE CABLE LANDING LICENSES

      The Applicants also seek authority to transfer control of their interests in the following
Submarine Cable Landing Licenses:

        File No.                           Licensee                            Licenses
SCL-T/C-20020822-00068         GT Landing Corp. (Debtor-in-        SCL-LIC-19970506-00003
                               Possession)                         (Atlantic Crossing Cable)
SCL-T/C-20020822-00070         Global Crossing                     SCL-LIC-19981117-00025
                               Telecommunications, Inc.            (Japan-U.S. Cable)5
                               (Debtor-in-Possession)
SCL-T/C-20020822-00071         MAC Landing Corp. (Debtor-          SCL-LIC-19981030-00023
                               in-Possession)                      (Mid-Atlantic Crossing Cable)
SCL-T/C-20020822-00072         PAC Landing Corp. (Debtor-in-       SCL-LIC-19981103-00022
                               Possession)                         (Pan American Crossing Cable)
SCL-T/C-20020822-00077         PC Landing Corp. (Debtor-in-        SCL-LIC-19980807-00010
                               Possession)                         (Pacific Crossing Cable)
SCL-T/C-20020822-00073         Global Crossing Latin America       SCL-LIC-19990823-00015
                               & Caribbean Co. (Debtor-in-         (South American Crossing
                               Possession)                         Cable)

5
         Global Crossing Telecommunications, Inc. (Debtor-in-Possession) has filed to relinquish its
interest in the Japan-U.S. cable landing license. See Non Streamlined International Applications
Accepted for Filing, Report No. TEL-00555NS (rel. July 26, 2002), at 2 (File No. SCL-MOD-20020522-
00057).

                                                 4


SCL-T/C-20020822-00074          GC Pacific Landing Corp.              SCL-ASG-19981204-00029 and
                                (Debtor-in-Possession)                SCL-T/C-19981204-000306
                                                                      (Asia Direct Cable, Atlantic
                                                                      Express I and II Cables,
                                                                      Bahamas Express Cable, Guam-
                                                                      Hawaii Cable, Hawaii Express
                                                                      Cable, Orient Express Cable)
SCL-T/C-20020822-00075          GT Landing II Corp. (Debtor-          SCL-MOD-20000511-00018
                                in-Possession)                        (Atlantic Crossing 2 Cable)


        VII.    COMMON CARRIER AND NON-COMMON CARRIER RADIO
                LICENSES HELD BY GLOBAL CROSSING NORTH AMERICAN
                NETWORKS, INC. (DEBTOR-IN-POSSESSION)

       The Applicants also seek authority to transfer control of the following common carrier
and non-common carrier radio licenses held by Global Crossing North American Networks, Inc.
(Debtor-in-Possession):7

File No.                Call Sign(s)
0001001014              WHO323, WHO324, WHO325,WHO326, WHO327, WHO328,
                        WHO329, WHO330, WHO331, WHO332, WHO333, WHO335,
                        WHO336, WHO337, WHO339, WHO340, WHO341, WHO344,
                        WHO345, WHO346, WHO347, WHQ999, WKL999, WLA738,
                        WLT711, WPMP453, WPRT617


                VI.     GENERAL INFORMATION

        The transfer of control applications referenced herein have been found, upon initial
review, to be acceptable for filing. The Commission reserves the right to return any application
if, upon further examination, it is determined to be defective and not in conformance with the
Commission’s rules or policies. Final action will not be taken on the applications earlier than 31
days following the date of this Public Notice.



6
        Assignment/transfer of control to GC Pacific Landing Corp. of interests in cable landing licenses
previously granted to various entities. Underlying File Numbers for the referenced cables are,
respectively, SCL-95-013, SCL-95-005, SCL-95-006, SCL-95-004, SCL-94-003, SCL-95-010, and SCL-
95-011.
7
        On August 20, 2002, Global Crossing filed an application for the pro forma assignment of
WPRT617, a private land mobile license held in its name, to Global Crossing North American Networks,
Inc. (Debtor-in-Possession). ULS File No. 0001002830. This transaction was approved by the
Commission on September 3, 2002, and was consummated on September 4, 2002. USL File No.
0001001014 was amended on September 6, 2002, to include WPRT617. According to the Applicants,
Global Crossing also holds a non-transferable private aircraft radio license (100GX) in its name.

                                                    5


         Interested parties may file comments regarding or petitions to deny the applications no
later than October 21, 2002. Oppositions or responses to these comments and petitions may be
filed no later than November 5, 2002. Replies may be filed no later than November 18, 2002.
All filings concerning matters referenced in this Public Notice should refer to IB Docket No. 02-
286 as well as the specific file numbers of the individual applications or other matters to which
the filings pertain.

        Due to the threat of contamination that resulted in the disruption of regular mail, the
Commission released on November 29, 2001, an Order temporarily amending certain procedural
rules on an emergency basis.8 Pleadings must be filed electronically (i.e., by e-mail or
facsimile), by overnight delivery service, or by hand delivery to the Commission’s
Massachusetts Avenue location.9

•   If filed electronically by e-mail, pleadings shall be filed at the following e-mail addresses:
    WTBSecretary@fcc.gov, WCBSecretary@fcc.gov, and IBSecretary@fcc.gov. Please also
    copy all those listed below. For security purposes, it is recommended that documents filed
    via electronic mail be converted to PDF format.

•   If filed by facsimile, pleadings shall be faxed to 202-418-0187. The fax transmission should
    include a cover sheet listing contact name, phone number, and an e-mail address (if
    available).

•   If filed by hand delivery, documents shall be delivered to the Commission’s contractor,
    Vistronix, at 236 Massachusetts Avenue, NE, Suite 110, Washington, DC 20002. All hand
    deliveries must be held together with rubber bands or fasteners, and any envelopes must be
    disposed of before entering the building.

•   If filed by overnight delivery service other than U.S. Postal Service (USPS) Express Mail
    and Priority Mail, filings must be addressed to 9300 East Hampton Drive, Capitol Heights,
    MD 20743. USPS first-class mail, Express Mail, and Priority Mail should continue to be
    addressed to the Commission’s headquarters at 445 12th Street, SW, Washington, DC 20554.

In addition, one copy of each pleading must be sent to each of the following:

(1) The Commission’s duplicating contractor, Qualex International (phone: (202) 863-2893) via
    e-mail: qualexint@aol.com, or by facsimile: (202) 863-2898.

(2) J. Breck Blalock, Policy Division, International Bureau; via e-mail: bblalock@fcc.gov, or by
    facsimile: (202) 418-2824.



8
      See In the Matter of Implementation of Interim Electronic Filing Procedures for Certain
Commission Filings, Order, FCC 01-345 (rel. Nov. 29, 2001).
9
       See FCC Announces a New Filing Location for Paper Documents and a New Fax Number for
General Correspondence, Public Notice, 16 FCC Rcd 22165 (2001).

                                                  6


(3) Susan O’Connell, Policy Division, International Bureau; via e-mail: soconnell@fcc.gov, or
    by facsimile: (202) 418-2824.

(4) Kathleen Collins, Policy Division, International Bureau; via e-mail: kcollins@fcc.gov, or by
    facsimile: (202) 418-2824.

(5) Elizabeth Yockus, Policy Division, Wireline Competition Bureau; via e-mail:
    eyockus@fcc.gov, or by facsimile: (202) 418-1413.

(6) Zenji Nakazawa, Public Safety and Private Wireless Division, Wireless Telecommunications
    Bureau; via e-mail: znakazaw@fcc.gov, or by facsimile: (202) 418-2643.

(7) Neil Dellar, Transaction Team, Office of General Counsel; via e-mail: ndellar@fcc.gov, or
    by facsimile: (202) 418-7540.

       Copies of the application and any subsequently-filed documents in this matter may be
obtained from Qualex International, in person at 445 12th Street, S.W., Room CY-B402,
Washington, D.C. 20554, via telephone at (202) 863-2893, via facsimile at (202) 863-2898, or
via e-mail at qualexint@aol.com. The applications and any associated documents are also
available for public inspection and copying during normal reference room hours at the following
Commission office: FCC Reference Information Center, 445 12th Street, S.W., Room CY-A257,
Washington, D.C. 20554.


                                            - FCC -




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Document Created: 2002-09-19 08:33:35
Document Modified: 2002-09-19 08:33:35

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