Attachment Allstream Fiber U.S.

This document pretains to SCL-T/C-20130606-00004 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2013060600004_999574

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


In the Matter of                                       )
                                                       )
Allstream Fiber US, Inc.,                              )
      Licensee,                                        )
                                                       )
MTS Inc.,                                              )
          Transferor,                                  )
                                                       )
         and                                           )         File No.
                                                       )
8312168 Canada, Inc.,                                  )
      Transferee                                       )
                                                       )
                                                       )
Application for Transfer of Control of                 )
Submarine Cable Landing License                        )

                        APPLICATION FOR TRANSFER OF CONTROL OF
                                CABLE LANDING LICENSE
                          STREAMLINED PROCESSING REQUESTED

         MTS Inc. ("Transferor"), Allstream Fiber US, Inc. ("Allstream Fiber" or "Licensee") and

8312168 Canada, Inc. ("Transferee," and collectively with Allstream Fiber and MTS, Inc., the

"Applicants"), pursuant to the Act Relating to the Landing and Operation of Submarine Cables

in the United States, 47 U.S.C. §§ 34—39 (1994), Executive Order No. 10530, Exec. Ord. No.

10530 reprinted as amended in 3 U.S.C. § 301, and Section 1.767 of the Rules of the Federal

Communications Commission ("Commission"), 47 C.F.R. §1.767, hereby request approval for

the transfer of control of Allstream Fiber, as the holder of a cable landing license,‘ from

Transferor to Transferee. As described below, Transferee seeks to acquire control of Allstream

‘ Allstream Fiber is authorized, pursuant to Section 1.767 of the Commission‘s rules, to land and operate in the
United States the AmeriCan—1 submarine cable, a private submarine fiber optic cable extending between the United
States and Canada. See FCC File No. SCL—LIC—19980123—00002. Allstream Fiber currently holds a one—quarter
interest in the capacity and the related support facilities and structures of the AmeriCan—1 submarine cable.
                                                             11—


Fiber as part ofa larger transaction pursuant to which Transferee will also acquire Allstream,

Inc. ("Allstream") and the Allstream business from subsidiaries of Manitoba Telecom Services,

Inc. ("Manitoba Telecom"). Allstream is a provider of business communications services in

Canada. The transaction will be seamless to existing customers. Applicants provide the

following information in support of this Application.

1.     THE APPLICANTS

       A. Allstream Fiber (Licensee)

           FRN: 0007477755

       Allstream Fiber is organized underthe laws of the state of Delaware in the United States

and holds the license to land and operate the AmeriCan—1 submarine cable.

       B. 8312168 Canada, Inc. (Transferee)

           FRN: 0022751515

       Transferee is a company organized under the laws of Canada and is headquartered in

Canada. 8312168 Canada, Inc. is a wholly owned subsidiary of Accelero Capital Investments

Holdings, S.a.r.1. ("Accelero Capital Investments"), a Luxembourg limited liability company.

Accelero Capital Investments, in turn, is a wholly owned subsidiary of Accelero Capital

Holdings, S.a.1.1. ("Accelero Capital Holdings"), also a Luxembourg limited liability company.


IL.    THE PROPOSED TRANSACTION

       This application seeks consent of the Commission for the transfer of control of the above—

referenced submarine cable landing authorization held by Allstream Fiber

       From: Transferor, a Canadian corporation and an indirect subsidiary of Manitoba

       Telecom, an incumbent local exchange telephone company in Manitoba, Canada,


          To: 8312168 Canada, Inc. ("Transferee"), a Canadian corporation and a direct subsidiary

          of Accelero Capital Investments S.a.r.l. (Luxembourg) ("Accelero Capital Investments").

Allstream Fiber is a licensee of the AmeriCan—1 cable, which is operated on a non—common

catrier basis between the United States and Canada. The parties will effectuate the transfer of

control by the delivery of the stock of Allstream Fiber by Transferor to Transferee.

          The transfer of control of Allstream Fiber is taking place in connection with the sale by

Manitoba Telecom of Allstream, a Canadian corporation, and its Allstream business to Accelero

Capital Investments. Allstream, headquartered in Toronto, Canada, is a communications

network connectivity and solutions provider for Canadian businesses that, among other things,

provides fiber network coverage across Canada. The operations of Allstream Fiber form a small

part of the overall Allstream business and the only portion of the Allstream business involving

authorizations issued by the Commission."

          The Transferee is a subsidiary of Accelero Capital Investments, an investment and

management group focused on telecommunications, digital media, and technology headquartered

in Luxembourg. As a result of the transaction, Allstream will become a stronger competitor to

incumbent telephone companies in Canada in the provision of services in Canada‘s enterprise

market.

IIL       PUBLIC INTEREST CONSIDERATIONS

          As a result of the proposed transaction, Allstream Fiber and the related Allstream

business would receive an infusion of capital from Accelero Capital Management, and Allstream

Fiber would become a separate and additional competitor in its market, no longer operated by

and affiliated with Manitoba Telecom, the incumbent telephone carrier in Manitoba, Canada.



* Allstream Fiber also holds an international Section 214 authorization, File No. ITC—214—19981207—00852. An
application to transfer control ofthat authorization is being filed concurrently with this application.
                                                               L3 —


Transferring control of the Allstream Fiber submarine cable landing license would facilitate the

larger Allstream transaction, which would be transparent to customers now receiving service and

would benefit competition in the international telecommunications market.

IV.      INFORMATION REQUIRED BY SECTION 1.767 OF THE COMMISSION‘S
         RULES

         In support of this Application, Applicants submit the following information in accordance

with Section 1.767 of the Commission‘s Rules, 47 C.F.R. § 1.767:

      (1) Name, address and telephone number of Applicants:


Transferor and Licensee                                    Transferee

Teresa Griffin—Muir                                        Ossama Bessada
Vice President, Regulatory Affairs                         President
Allstream Inc.                                             8312168 Canada, Inc.
45 O‘Connor Street, Suite 1400                             c/o Accelero Capital Holdings S.q.1.L.
Ottawa, Ontario, Canada KIP 1A4                            65 Boulevard Grande Duchesse Charlotte
Telephone: 613—688—8789                                    L1331 Luxembourg
Fax: 613—688—8303                                          Telephone: (647) 389—3337
Email: Teresa.Griffin—Muir@mtsallstream.com                Email: Ossama.bessada@accelerocapital.com

With a copy to:                                            With a copy to:
Lawrence J. Movshin                                        John S. Logan
Jennifer L. Kostyu                                         J.G. Harrington
Wilkinson Barker Knauer, LLP                               Michael Pryor
2300 N Street, N.W., Suite 700                             Dow Lohnes PLLC
Washington, D.C. 20037                                     1200 New Hampshire Avenue, N.W.
Telephone: 202—783—4141                                    Washington, D.C. 20036
Fax: 202—783—5851                                          Telephone: (202) 776—2640
Imovshin@wbklaw.com                                        Fax: (202) 776—2222
jkostyu@wbklaw.com                                         {logan@dowlohnes.com
                                                           jgharrington@dowlohnes.com
                                                           mpryor@dowlohnes.com

      (2) Place of Formation

           Licensee:     Allstream Fiber US, Inc., is organized under the laws of the
                         United States (Delaware)

           Transferee:   8312168 Canada, Inc. is organized under the laws of Canada


                                                    —4—


     Transferor:    MTS Inc. is organized under the laws of Canada

(3) Correspondence concerning this Application should be sent to:

   For Allstream Fiber          Lawrence J. Movshin
   (Licensee)                   Jennifer L. Kostyu
                                Wilkinson Barker Knauer, LLP
                                2300 N Street, N. W., Suite 700
                                Washington, D.C. 20037
                                Telephone: 202—783—4141
                                Fax: 202—783—5851
                                Imovshin@whbklaw.com
                                jkostyu@wbklaw.com

   For $312168 Canada,          John S$. Logan
   Inc. ("‘Transferee")         J.G. Harrington
                                Michael Pryor
                                Dow Lohnes PLLC
                                1200 New Hampshire Avenue, N.W.
                                Washington, D.C. 20036
                                Telephone: (202) 776—2640
                                Fax: (202) 776—2222
                                {logan@dowlohnes.com
                                mpryor@dowlohnes.com


(4) Certification and Ownership Information Required by Section 63.18(h)—(k) and (0)
    of the Commission‘s Rules, 47 C.F.R. §§ 63.18(h)—(k), (0):

   Section 63.18(h) — 10 Percent or Greater Shareholders in Transferee, 8312168
   Canada, Inc.:

   After consummation of the Transaction, all of the issued and outstanding shares of the
   licensee, Allstream Fiber, will be held by the Transferee, 8312168 Canada, Inc., a wholly
   owned subsidiary of Accelero Capital Investments Holdings, S.a.1.1. ("Accelero Capital
   Investments"), a Luxembourg limited liability company. Accelero Capital Investments,
   in turn, is a wholly owned subsidiary of Accelero Capital Holdings, S.a.1.1. ("Accelero
   Capital Holdings"), also a Luxembourg limited liability company.

   The following entities and persons have a 10% or greater ownership interest in Accelero
   Capital Holdings, S.a.r.L.

   Company Name                    Orascom TMT Investments S.a.r.1.
   Address                         1, boulevard de la Foire L—1 528 Luxembourg
   Jurisdiction of Formation       Luxembourg
   Principal Business              Holding Company

                                                 15.


       [ Interest                   [20.0%                                             |
        Orascom TMT Investments S.a.1.l. is a wholly owned holding company for investments
        of The Marchmont Trust, a Jersey family trust for the benefit of the Sawiris family. The
        Marchmont Trust owns Orascom TMT Investments S.a.r.1. through two wholly owned
        Cayman Island companies: Marchmont Limited, which is the 100% owner of Marchco
        Holding Limited, which, in turn, is the 100% owner of Orascom TMT Investments S.a.1.1.
        The trustee of the Marchmont Trust is February Private Trust Company, a Jersey trustee
        company of which Ms, Yousriya Nassif Loza is the settlor. Ms. Loza also is a
        discretionary beneficiary of the February Private Trust Company, along with the
        International Federation of Red Cross and Red Crescent Societies.

        Company Name                 Khaled Bishara
        Citizenship                  Egypt
        Principal Business           Managing Partner, Accelero Capital
        Interest                     16.2%

        Company Name                 Pezou S.a.r.L.
        Address                      40, Holland Park, London, W11 3RP, United
                                     Kingdom
        Jurisdiction of Formation    Luxembourg
        Principal Business           Investments
        Interest                     16.2%
        Pezou S.a.r.l. is 100% owned and controlled by Mr. Rodolphe Aldo Mario Mareuse, a
        citizen of France residing in the United Kingdom. Mr. Mareuse is a Managing Partner of
        Accelero Capital.

        Company Name                 Panda Investments
        Address                      C/o UBS Trustees (Singapore) Ltd., 1 Raffles
                                     Quay, #50—01 North Tower, Singapore
                                     048583
        Jurisdiction of Formation    Singapore
        Principal Business           Private Family Trust
        Interest                     14.2%
       Panda Investments is a trust for the sole benefit of Ossama Bessada, a citizen of Egypt
       residing in Canada. Mr. Bessada is a Managing Partner of Accelero Capital. The trustee
       is UBS Trustees (Singapore) Ltd., an indirect subsidiary of UBS AG, a public traded
       international banking and financial services company.

        There are no other individuals or entities that hold a 10% or greater direct or indirect
equity or voting interest in Accelero Capital Holdings.


        Section 63.18(h) — Interlocking Directorates:

        Mr. Ossama Bessada and Mr. Rodolphe Aldo Mario Mareuse sit on the board of directors
of WIS Telecom S.p.A. Mr. Mareuse, in addition, sits on the board of directors of Keyyo
Societe Anonyme Francais. Transferee does not anticipate that there will be any additional
interlocking directorates with carriers other than the commonly owned Allstream and its
subsidiaries following the consummation of the proposed transaction.

        Section 63.18(i) — Certification Regarding Foreign Carrier Status and Foreign
        Affiliation:

        Upon consummation of the proposed transaction, Allstream Fiber will be affiliated with
Allstream, a Canadian competitive provider of business services to enterprises within Canada.
At the time of consummation, Allstream no longer will be controlled by or affiliated with
Manitoba Telecom, the incumbent telephone company in Manitoba, Canada. Allstream and the
entire Allstream business, of which Allstream Fiber is a small portion, will be transferred from
Manitoba Telecom to the Transferee prior to or concurrent with the Transferee‘s acquisition of
Allstream Fiber.

        Apart from Transferee‘s proposed common ownership of Allstream Fiber with Allstream,
Allstream Fiber would have no affiliate relationship with any foreign carrier and Transferee
would have no affiliate relationship with any foreign carrier.

        Section 63.18(j) — Certification Regarding Destination Markets:

       Upon consummation of the proposed transaction, Transferee will control Allstream,
which is a non—dominant carrier in Canada.

        Section 63.18(k) — Certification Regarding WTO Status,

        Canada, the only country listed in response to Section 63.18(j), is a World Trade
Organization ("WTO") Member country.

        Section 63.18(0) — Certification Regarding the Anti—Drug Abuse Act of 1988:

        The Transferee certifies pursuant to Section 1.2001—1.2003 of the Commission‘s rules
that no Transferee party to the application is subject to a denial of federal benefits pursuant to
Section 5301 of the Anti—Drug Abuse Act of 1988, 21 U.S.C. §862.

    (5) Routine Conditions Specified in Section 1.767(g) of the Commission‘s Rules, 47
        CFR. §1.767(@).
        The Transferee certifies that it will accept and abide by, and cause the Licensee to abide
by, the routine conditions in Section 1.767(g), 47 C.F.R. §1.767(g).


     (6) Streamlined Processing Request:

          This application qualifies for streamlined processing pursuant to Section 63.12(c)(1)(ii)
because, pursuant to Section 63.10(a)(3) of the Commission‘s rules, because neither Transferee
nor Allstream Fiber will be affiliated with a dominant foreign catrier. As a result of the
transaction, Alistream Fiber and its sister corporation Allstream will no longer be affiliated with
Manitoba Telecom. The sole foreign catrier affiliation of Transferee and Allstream Fiber will be
with Allstream, which, post—transaction, will be a non—dominant carrier in Canada with no other
carrier affiliations.

v.        CONCLUSION

          For the foregoing reasons, the parties request that the Commission authorize the transfer

of control or Allstream Fiber US, Inc., from MTS, Inc. to 8312168 Canada, Inc. as described

herein.

                                                       Respectfully submitted,

TRANSFEROR AND LICENSEE:                             TRANSFEREE

MTS, INC.                                            8312168 CANADA, INC.
ALLSTREAM FIBER US, INC.




                      .                                        hn S. Log’alf
          Jennifer L. Kostyu                                 J.G. Harringtont
                 of                                          Michael Pryor
          Wilkinson Barker Knauer, LLP                             of
          2300 N Street, N.W., Suite 700                     Dow Lohnes PLLC
          Washington, D.C. 20037                             1200 New Hampshire Avenue, N.W.
          Telephone: 202—783—4141                            Washington, D.C. 20036
          Fax: 202—783—5851                                  Telephone: (202) 776—2640
                 Its Counsel                                 Fax: (202) 776—2222
                                                                    Its Counsel

                                                                    June 6, 2013


Appendix A: Pre—Acquisition Organizational Chart




     Manitoba Telecom Services Inc.



                                     y
                                       om)
                         Mzzzmmamn——( \_



      MTS Allstream Holdings Inc.




                                         100% >
                                      o ~_2aee



               MTS Inc.
              (Transferor)




        Allstream Fiber US, Inc.
               (Licensee)


                   Appendix B:; Post—Acquisition Organizational Chart




 Trust for Benefit of              ;     Rodf)lphe Aldo                          Family Trust for Sawaris
  Family of Ossama                 |     Mario Marcuse                           Family; February Private
Bessada, UBS Trustees              |         (100%)                              Trust Company, Trustee
  (Singapore), Ltd.,               ‘                                                  (100%, through
   Trustees (100%)                                                               intermediate subsidiaries)




                                                                    Khaled Bishara



                               _                                _               «[(162%.—}
                                                                                     ~Qne
                                           Pezou S.a.r.

                                                                                 Orascom TMT Investments
                                                                                           Sard.




                             Accelero.Capital Holdings,
                                             S.ar.l.



                                        Accelero Capital
                               Investments Holdings,
                                      S.ar.l.




                                       8312168 Canada Inc.
                                           (Transferee)



                                               3

                              Allstream Fiber US, Inc.
                                           (Licensee)




                                                        —10 —


                                 CERTIFICATE OF SERVICE



The undersigned hereby certifies that the foregoing document was served this date upon the
following:

Marlene Dortch                                  U.S. Coordinator
Secretary                                       EB/CIP
Federal Communications Commission               U.S. Department of State
445 12"" Street, S.W.                           2201 C Street, N.W.
Washington, DC 20554                            Washington, DC 20520—5818
(via first—class U.S. mail, postage prepaid)    (via first—class U.S. mail, postage prepaid)

James Ball                                      Office of Chief Counsel/NTIA
International Bureau                            U.S. Department of Commerce
Federal Communications Commission               14"" Street & Constitution Ave., N.W.
445 12" Street, S.W.                            Washington, DC 20230
Washington, DC 20554                            (via first—class U.S. mail, postage prepaid)
(via electronic mail to james.ball@fee.gov)

David Krech                                     Defense Information Systems Agency
International Bureau                            Code RGC
Federal Communications Commission               701 S. Courthouse Road
445 12"" Street, S.W.                           Arlington, VA 22204
Washington, DC 20554                            (via first—class U.S. mail, postage prepaid)
(via electronic mail to david.krech@fec.gov)

Susan O‘Connell
International Bureau
Federal Communications Commission
445 12"" Street, S.W.
Washington, DC 20554
(via electronic mail to
susan.o‘connell@fee.gov)




June 6, 2013




                                                411 —



Document Created: 2013-06-06 18:43:47
Document Modified: 2013-06-06 18:43:47

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