Attachment FINAL SCL Applicatio

This document pretains to SCL-T/C-20141121-00014 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2014112100014_1069788

                                               Before the
                                   Federal Communications Commission
                                         Washington, D.C. 20554

In the Matter of                                              )
                                                              )
ARCOS-I USA, Inc.                                             )
A.SurNet, Inc.                                                )
Columbus Networks USA, Inc.                                   )
      Licensees,                                              )         File No. SCL-T/C-2014_ _
                                                              )
Columbus Networks, Limited                                    )
      Transferor,                                             )
                                                              )
        and                                                   )
                                                              )
Cable & Wireless Communications Pic                           )
       Transferee                                             )
                                                              )
Application for Transfer of Control of                        )
Cable Landing Licenses                                        )


                   JOINT APPLICATION FOR TRANSFER OF CONTROL OF
                              CABLE LANDING LICENSES

        Columbus Networks, Limited ("CNL" or "Transferor"), an indirect wholly-owned

subsidiary of Columbus International Inc. ("CII"), 1 and Cable & Wireless Communications Plc
                               2
("C& W" or "Transferee"), 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 at;; amended in 3 U.S. C.§ 301, and Section 1.767 of the Rules of



I en is a privately-owned telecommunications company based in Barbados providing services primarily in the
Caribbean, Central America and Andean regions. In the Caribbean region, these services include television, data
services and voice telephony. CII also offers connectivity and IT solutions, managed networking and cloud-based
services to businesses. Through CNL, also based in Barbados, CII provides international capacity and IP transit
services, corporate data solutions and data center hosting throughout 42 countries in the Caribbean and Latin America.
2
  C&W provides a range of telecommunications services primarily to customers in the Caribbean and Latin America.
These services include mobile and fixed-line voice telephony, data services and TV to consumers, and connectivity and
managed services to businesses and governments. C&W has operations in Panama and fourteen Caribbean countries,
including Jamaica, The Bahamas, Barbados and the Cayman Islands. Its headquarters are in London, where it is listed
on the London Stock Exchange. It has an operating hub in Miami.


the Federal Communications Commission ("Commission"), 47 C.F.R. § 1.767, hereby request

approval for the transfer of control of ARCOS-I USA, Inc. ("ARCOS"), A.SurNet, Inc. (''ASN")

and Columbus Networks USA, Inc. ("CNUSA") (collectively, the "Licensees," and together with

Transferor and Transferee, the "Applicants") from CNL to C&W.

        ARCOS and ASN are jointly authorized by the Commission to operate the ARCOS-I fiber

optic submarine cable system (the "ARCOS-I Cable") under FCC File No. SCL-LIC-19981222-

00032.3 CNUSA is authorized by the Commission to operate the CFX-1 fiber optic submarine

cable system (the "CFX-1 Cable") under FCC File No. SCL-LIC-20070516-00008.

        As described below, C&W and the shareholders of CII have signed an agreement whereby

C&W will directly acquire 100% ofCII, including indirectly 100% ofCNL and the Licensees (the

"Transaction").4 As a result of the Transaction, C&W will indirectly control the license of ARCOS

and ASN to land and operate the ARCOS-I Cable and the license of CNUSA to land and operate

the CFX-1 Cable. Although control of the Licensees will change from CNL to C&W, services in

the United States will continue to be provided to the customers of the ARCOS-I Cable and the

CFX-1 Cable under existing service arrangements, consistent with the submarine cable landing

licenses granted to the Licensees by the Commission. The Transaction, therefore, will not result in

any disruption for existing customers and the transition from CII to C&W ownership and control

will be seamless. The Applicants provide the following information in support of this Application:




3
   See also SCL-MOD-200 I 0302-00007, SCL-T/C-20050609-000 I4 and notice of pro forma transfer of control to CII
filed by Linda M. Wellstein, Esq., August 3, 2009. ASN is a wholly-owned subsidiary of ARCOS, and is the landing
party for the ARCOS-I Cable in North Miami Beach, Florida.
4
   Simultaneously with this Application, Applicants are filing an application to transfer control of two Section 214
licenses held by other subsidiaries ofCNL. FCC File No. ITC-214-20070220-00077 is held by Columbus Networks
Telecommunications Services USA, Inc., a direct wholly-owned subsidiary of ASN. FCC File No. ITC-214-20091127-
00497 is held by Columbus Networks Puerto Rico, Inc., a direct wholly-owned subsidiary of CNL.


                                                         2


I.      THE APPLICANTS

        A.       ARCOS-I USA, Inc. (Licensee)

                 FRN: 0015487325

        ARCOS is incorporated under the laws of the State of Delaware and holds the license to

land and operate the ARCOS-I Cable, jointly with ASN. 5 ARCOS is a direct wholly-owned

subsidiary of CNL and an indirect wholly-owned indirect subsidiary of CII. As such, it will be,

upon consummation of the Transaction, a wholly-owned indirect subsidiary ofC&W.

        B.       A.SurNet, Inc. (Licensee)

                 FRN: 0007436074

        ASN is incorporated under the laws of the State of Delaware and holds the license to land

and operate the ARCOS-I Cable, jointly with ARCOS. ASN is a direct wholly-owned subsidiary

of ARCOS. As such, it will be, upon consummation of the Transaction, a wholly-owned indirect

subsidiary ofC&W.

        C.       Columbus Networks USA, Inc. (Licensee)

                 FRN: 0016352353

        CNUSA is incorporated under the laws of the State of Delaware and holds the license to

land and operate the CFX-1 Cable. CNUSA is a direct wholly-owned subsidiary of ARCOS. As

such, it will be, upon consummation of the Transaction, a wholly-owned indirect subsidiary of

C&W.

        D.       Columbus Networks, Limited (Transferor)

                 FRN: 0024081788




5
  PrepaNet International Wholesale Transport Inc. ("PrepaNet"), the operator of the ARCOS-I Cable landing station in
Puerto Rico, is a co-licensee with ARCOS and ASN. PrepaNet is not a party to the instant Transaction.


                                                         3


         CNL is organized under the laws of Barbados, and directly owns 100% of the shares of

ARCOS. It thus indirectly wholly-owns CNUSA and ASN.

         E.       Cable & Wireless Communications Pic (Transferee)

                  FRN: 0024011363

         C&W is a publicly-listed company incorporated under the laws of England & Wales; its

shares are listed on the London Stock Exchange. Pursuant to the proposed Transaction, C&W will

acquire CII, and thus will come to indirectly wholly-own CNL and the Licensees.



II.      THE PROPOSED TRANSACTION

         Pursuant to an agreement between C&W and the shareholders ofCIJ, entered into

November 6, 2014, C&W will acquire 100% of the stock ofCll. Thus, C&W will acquire de jure

and de facto control of CII, including the corporate parent of the Licensees, CNL. The Transaction

is governed by Barbados law.

        It is contemplated that the Transaction may take place in a two-step process:

         (l) In the first step, the shares held by the Transferor in each of the Licensees, and thus the

u.s. business of en, would be transferred in a pro forma transaction to a newly-formed company
("Columbus NewCo") owned by the same ultimate majority owners and controlling parties of CII 6

(thus making Columbus NewCo the actual Transferor for putJlOSes of this Application), but without

resulting in any change to the ultimate control of the Licensees. 7 At a first closing, CII would be


6
  Columbus NewCo would be indirectly wholly owned by three of the current CII shareholders, including two jointly-
controlled shareholders that together currently own and control over 50% of CII and would own 66% of Columbus
NewCo. These shareholders would therefore retain de jure control ofthe Licensees. Moreover, CII's controlling
shareholders would continue to have de facto control of the Licensees. Thus, there would be no actual change of control
of the Licensees in the frrst step ofthe Transaction, and that step would be entirely proforma under the Commission
Rules.
7
 This pro forma transaction would be effected by the Transferor transferring all of the shares in ARCOS (which, as
noted above, holds all the shares in the other Licensees) to Columbus NewCo.


                                                           4


transferred to C&W without Columbus NewCo, and thus without the Licensees.8 Control of the

Licensees will be transferred to C&W only after grant of this Application. If and when this pro

forma reorganization is carried out, Applicants will notify the Commission of the pro forma

transfer, and also will file a minor amendment to this Application to identify the new entity

(Columbus NewCo) that would replace CNL as Transferor in the second step.

           (2) In the second step, following receipt of the Commission approval requested in this

Application, ownership and control of Columbus NewCo, and thus the Licensees, would be

transferred to C&W.

           Whether a two-step process or a single closing is employed, the final ownership structure

and ultimate control of the Licensees for which approval is sought will be the same. Thus,

Applicants seek approval for the overall Transaction under which transfer of control of the

Licensees will be ultimately transferred to C&W.



    III.   PUBLIC INTEREST CONSIDERATIONS

           Consummation of the Transaction described herein will serve the public interest. It will lead

to the emergence of a more capable and better-resourced supplier in the highly competitive

submarine cable market for international wholesale capacity in the Caribbean region. Under

C&W's ownership, ARCOS, ASN and CNUSA will be able to operate in a more efficient and

economical manner and will have greater access to the capital needed to maintain and grow a

competitive submarine cable business for the benefit of its customers. Combining the parties' sub-



8
  All U.S.-regulated communications assets would remain under the 100% ownership and control of Columbus NewCo
after the first closing. Two indirect subsidiaries ofCJI to be acquired by C&W at the first closing will enter into an
intercompany management and services agreement to provide day-to-day management services for the benefit of the
Licensees. Columbus NewCo and the Licensees will, however, retain ultimate authority and control over all regulated
aspects of the U.S. business, including having a robust staff in place to oversee and supervise the provision of
management services by the relevant C&W entities.


                                                          5


sea cable networks will also enable the combined group to expand its addressable customer base

and to offer more value—added services.

         The change in control will not have any adverse impact on existing customers. Backed by

their new parent company, C&W, the Licensees will continue to benefit from the managerial and

technical qualifications and staff necessary to operate and provide services employing the cables

under existing arrangements. The addition of CII‘s senior management team will also reinforce

C&W‘s knowledge and expertiseof the region and the relevant markets, while the wider C&W

team has extensive operating and management expertise in the communications industry.

Moreover, the Transaction will not result in any change in service provider for the Licensees‘

services and will otherwise be transparent to customers receiving services in the United States.

Immediately following consummation ofthe Transaction, all Licensees will continue to provide

high—quality services to their respective customers without interruption and without any increase in

rates or other charges in terms or conditions.

         The Transaction will allow the parties to invest in upgrading overall network infrastructure

to a much greater extent than would be the case in the absence ofthe Transaction. The combined

company will continue to invest to improve data networks, which will bring significant benefits to

ARCOS, ASN and CNUSA customers, including higher Internet speeds and greaterreliability.

         The change in control will also notresult in any anticompetitive effects. The Commission

typically employs a regional approach in analyzing the international transport market, evaluating

submarine cable capacity in the Atlantic, Pacific, and the Americas regions." The Commission


* See In the Matter ofApplicationsfiled by Global Crossing Limited and Level 3 Communications, Inc. for Consent to
Transfer Control, Memorandum Opinion and Order and Declaratory Ruling, 26 FCC Red 14056, 14069—70 (2011)
(citing In the Matter ofAT&T Inc. and BellSouth Corporation, Application for Transfer ofControl, Memorandum
Opinion and Order, 22 FCC Red 5662, 5741, 4 159 (2007); In the Matter of Verizon Communications Inc. and MCL
Inc., Applicationsfor Approval of Transfer ofControl, Memorandum Opinion and Order, 20 FCC Red 18433, 18514—
15, § 158 (2005)).


evaluates merger transactions, examining existing capacity and anticipated future capacity within

two years, to determine whether the combined entity would have the ability to exercise market

power through unilateral or coordination action. 10 The market for transport in Latin America and

the Caribbean is very competitive. The combined market share of the Applicants is less than 20%

of total capacity to the Americas region. Following the consummation of the Transaction,

international carriers will continue to have a range of capacity options across the highly competitive

Americas market.

           In sum, the proposed Transaction will improve and expand the Applicants' offerings across

a broad range of services to consumers, without adversely affecting existing customers, and will

enhance competition in an already competitive market. For these reasons, Applicants respectfully

submit that this Transaction is in the public interest.



IV.        JNFORMATION 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:

           ARCOS-1 Licensee: ARCOS-I USA, Inc.
                             15950 West Dixie Highway
                             North Miami Beach, FL 33162
                             Phone:(786)274-7400
                             Fax: (786) 274-7402

                                 A.SurNet, Inc.
                                 15950 West Dixie Highway
                                 North Miami Beach, FL 33162

10   !d.



                                                    7


                            Phone: (786) 274-7400
                            Fax: (786) 274-7402

      CFX-1 Licensee:       Columbus Networks USA, Inc.
                            15950 West Dixie Highway
                            North Miami Beach, FL 33162
                            Phone: (786) 274-7400
                            Fax: (786) 274-7402

      Transferor:           Columbus Networks, Limited
                            Suite 205-207 Dowell House
                            Cr. Roebuck & Palmetto Streets
                            Bridgetown, Barbados
                            Phone: (246) 426-0417
                            Fax: (246) 228-5756

      Transferee:           Cable & Wireless Communications Pic
                            3rd Floor
                            26 Red Lion Square
                            London, United Kingdom
                            WC1R4HQ
                            Phone: + 44 (0) 207 315 4000
                            Fax:+ 44(0) 207 315 5211


(2)   Place of Formation:

      Licensees:    Each of the Licensees is organized under the laws of the State of Delaware.

      Transferor:   CNL is organized under the laws of Barbados.

      Transferee:   C&W is organized under the laws of the England & Wales.


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

      For Licensees and Transferor,                c/o Paul W. Scott
                                                   president and coo
                                                   Columbus Networks USA, Inc.
                                                   15950 West Dixie Highway
                                                   North Miami Beach, FL 33162
                                                   Phone: (786) 274-7400
                                                   Fax: (786) 274-7402
                                                   pscott@columbus.co

      With a copy to:                              Andrew D. Lipman



                                               8


                                                   Ulises R. Pin
                                                   Bingham McCutchen LLP
                                                   2020 K St., N.W.
                                                   Washington, D.C. 20006
                                                   Phone: (202) 373-6664
                                                   Fax: (202) 373-6001
                                                   u.pin@bingham.com

       For Transferee,                             Belinda Bradberry
                                                   General Counsel
                                                   Cable & Wireless Communications Pic
                                                   c/o Cable & Wireless Communications, Inc.
                                                   Columbus Center
                                                   1 Alhambra Plaza, Suite I 000
                                                   Coral Gables, FL 33134
                                                   Phone: (786) 606-5416
                                                   Fax: n/a
                                                   belinda.bradberry@cwc.com

       With a copy to:                             Patrick S. Campbell
                                                   Paul, Weiss, Rifkind, Wharton & Garrison LLP
                                                   2001 K Street, N.W., Suite 500
                                                   Washington, D.C. 20006
                                                   Phone:(202)223-7300
                                                   Fax: (202) 223-7420
                                                   pcampbell@paulweiss.com



(4)    Description of the Cable System:

               A description of the ARCOS-I Cable is on file with the Commission under FCC File

No. SCL-LIC-19981222-00032 and a description ofthe CFX-1 Cable is on file with the

Commission under FCC File No. SCL-LIC-20070516-00008. Both license files are incorporated

by reference herein.




                                               9


(5)       Landing Points

                 General descriptions of the ARCOS-I Cable and CFX-1 Cable landing locations are

on file with the Commission in the original license files, which are incorporated by reference

herein.



(6)       A Statement as to Whether the Cable Will be Operated on a Common Carrier or Non-
          Common Carrier Basis

          Both the ARCOS-I Cable and the CFX-1 Cable are operated and will continue to operate on

a non-common carrier basis.


(7)       Ownership Interests in the ARCOS-1 Cable and the CFX-1 Cable

                 The ARCOS-I Cable is owned by a consortium. ARCOS directly holds most of the

interest in the cable, with 94.87% of the voting and ownership interests. The remaining voting and

ownership interests are held by eighteen (18) international carriers, each with nominal ownership

interests in the ARCOS-I Cable. ASN operates the ARCOS-1 Cable's landing station in North

Miami Beach, Florida. 11 The interest of ARCOS and ASN in the ARCOS-1 Cable and the Florida

landing station will, upon consummation of the Transaction, become indirectly wholly owned and

controlled by C&W.

                 The CFX-1 Cable is 100% owned, controlled and operated by CNUSA with all

ownership and voting rights. CNUSA also operates the U.S. cable landing station in Boca Raton

Florida. Upon consununation of the Transaction, CNUSA will become indirectly wholly owned

and controlled by C&W.




11
  As previously noted, the ARCOS-I Cable landing station in Puerto Rico is owned and operated by PrepaNet, an
unaffiliated third party carrier in Puerto Rico, and is not part of the instant Transaction.


                                                        10


(8)       Certification and Ownership Information Required by Section 1.767(a)(8) of the
          Commission's Rules, 47 C.F.R. §1.767(a)(8) Incorporating by Reference the
          Requirements of Section 63.18(h) and (o) of the Commission's Rules, 47 C.F.R. §§
          63.18(h) and (o):


          Section 63.18(h)- Ten Percent or Greater Shareholders

         Upon consummation of the Transaction, the ownership structure of each of the Licensees
                      12
will be as follows:

         If the two-step transaction described in Section II is implemented, Columbus NewCo, which

has not yet been formed, will hold a (direct or indirect) 100% voting and equity interest in each of

ARCOS, ASN and CNUSA at the first closing. The following entity will hold a 100% voting and

equity interest in Columbus NewCo at the second closing, or will hold a 100% voting and equity

interest in each of ARCOS, ASN and CNUSA if the transaction is completed in a single closing:


          Columbus Networks, Limited
          Suite 205-207 Dowell House
          Cr. Roebuck & Palmetto Streets
          Bridgetown, Barbados
          Jurisdiction: Barbados
          Principle Business: International telecommunications services
          Interest: Direct holding of l 00%

          The following entity will hold a 100% voting and equity interest in CNL:

          Columbus TTNW Holdings Inc.
          Suites 205-207 Dowell House
          Cr. Roebuck & Palmetto Streets
          Bridgetown, Barbados
          Jurisdiction: Barbados
          Principle Business: International telecommunications services
          Interest: Direct holding of 100%


12
  The following assumes C&W purchases Cll directly. C&W may decide to use one or more wholly-owned
subsidiaries ofC&W to hold its interests in CII. It is possible that, post-transaction, another C&W group entity (in
addition to CNL) will hold some ofthe shares in Columbus Newco. However, the ultimate interest ofC&W in the
Licensees will not change.



                                                           11


         The following entity will hold a I 00% voting and equity interest in Columbus TTNW

Holdings Inc.:


          Columbus International Inc.
          Suites 205-207 Dowell House
          Cr. Roebuck & Palmetto Streets
          Bridgetown, Barbados
          Jurisdiction: Barbados
          Principle Business: International telecommunications services
          Interest: Direct holding of 100%

          The following entity will hold a 100% voting and equity interest in Cll: 13

          Cable & Wireless Communications Plc
          3rd Floor
          26 Red Lion Square
          London, United Kingdom
          WCIR4HQ
          Jurisdiction: United Kingdom
          Principle Business: International telecommunications services
          Interest: Direct holding of 100%

        Currently, the following shareholder holds more than 10% of the voting and equity

securities ofC&W:

         Orbis Investment Management Limited
         Orbis House
         25 Front Street
         Hamilton, Bermuda
         HMll
         Jurisdiction: Bermuda
         Principal Business: Investment
         Interest: Direct holding of 14.19% 14




13
  Ibid.
14
   C&W believes that no person or entity holds an attributable 10% interest in C&W through this investment vehicle,
but in any case, as noted below, the interest ofOrbis Investment Management Limited is expected to drop below 10%
post-consummation.


                                                         12


       Following consummation of the Transaction, Orb is Investment Management Limited is

expected to hold less than a I 0% interest in C&W, and the following entities are expected to have a

shareholding of greater than 10% of the voting and equity securities ofC&W:

        CVBI Holdings (Barbados), Inc. and Clearwater Holdings (Barbados) Limited
        (Ultimately controlled by Mr. John Risley, a Canadian citizen)
        Suite 205-207
        Dowell House
        Cr. Roebuck & Palmetto Streets
        Bridgetown, Barbados
        Jurisdiction: Barbados
        Principal Business: Investment
        Interest: Direct holding of 19.5%

        Columbus LLC
        (Ultimately controlled by Mr. John Malone, a U.S. citizen)
        12300 Liberty Boulevard
        Englewood, CO 80112
        United States
        Jurisdiction: Colorado
        Principal Business: Investment
        Interest: Direct holding of 13.3%

        There are no other shareholders of C&W who directly or indirectly own, or will directly or

indirectly own following consummation, 10% or more of C&W and thus will own 10% or more of

Licensee's equity or voting rights post-consummation.

        For the Commission's convenience, pre- and post-closing organization illustrative charts

are provided as Exhibit A.




                                                 13


         Section 63.18(h) - Interlocking Directorates:

         The Transferee, C&W, has the following interlocking directorates with foreign carriers: 15

Phillip Bentley: Chief Executive and Director ofC&W, and Director ofThe Bahamas
Telecommunications Company Limited

Nicholas Cooper: Secretary and Director ofC&W, and Director of The Bahamas
Telecommunications Company Limited


         Section 1.767(a)(8)(ii)- Certification Regarding Foreign Carrier Status and Foreign
         Affiliation:

         By its signature to this application, the Transferee, C&W, hereby certifies that it is not a

foreign carrier, and does not directly own a cable landing station in any foreign country. 16 C&W




15
   The foreign carrier affiliates of C&W disclosed herein have interlocking directorates among themselves. The
following individuals are directors of the entities indicated: Belinda Bradberry (Cable & Wireless St. Vincent and the
Grenadines Limited, Cable and Wireless (Anguilla) Limited, Cable and Wireless (West Indies) Limited); Christopher
Dehring (Cable & Wireless (Barbados) Limited, Cable & Wireless Jamaica Limited, Telecommunications Services of
Trinidad and Tobago Limited, The Bahamas Telecommunications Company Limited); Clare Underwood (Cable &
Wireless Antigua & Barbuda Limited, Cable and Wireless (BVI) Limited, Cable and Wireless (Cayman Islands)
Limited, Cable and Wireless (TCI) Limited, Cable and Wireless (West Indies) Limited); David Kelham (Cable &
Wireless (Barbados) Limited, Cable & Wireless Jamaica Limited); Davidson Charles (Cable & Wireless Antigua &
Barbuda Limited, Cable & Wireless St. Kitts & Nevis Limited, Cable and Wireless (Anguilla) Limited, Cable and
Wireless (BVI) Limited, Cable and Wireless (TCI) Limited); Donald Austin (Cable & Wireless (Barbados) Limited,
Cable & Wireless Dominica Limited, Cable and Wireless Grenada Limited, CWC Cable & Wireless Communications
Dominican Republic SA); Garfield Sinclair (Cable & Wireless Jamaica Limited, Cable and Wireless (Cayman Islands)
Limited); Geraldine Pitt (Cable & Wireless (St. Lucia) Limited, Cable & Wireless Grenada Limited); Lawrence
McNaughton (Cable & Wireless Dominica Limited, Cable & Wireless St. Kitts & Nevis Limited, Cable & Wireless
Grenada Limited); Roderick Kirwan (Cable & Wireless Antigua & Barbuda Limited, Cable & Wireless St. Vincent and
the Grenadines Limited, Cable and Wireless (Anguilla) Limited, Cable and Wireless (BVI) Limited, Cable and Wireless
(Cayman Islands) Limited, Cable & Wireless (St. Lucia) Limited, Cable and Wireless (TCI) Limited, CWC Cable &
Wireless Communications Dominican Republic SA, Telecommunications Services of Trinidad and Tobago Limited).

16
    An indirect wholly-owned subsidiary of the Transferee, Cable & Wireless Communications, Inc. ("CWCI")
currently holds Section 214 authority under File No. ITC-214-20 I00512-00191 . Most of the foreign carrier affiliations
disclosed below were reported to the Commission in the context of that application. (See also Letter to International
Bureau Chief from Rose Landa, Esq., dated October 23,2014, notifying the Commission of the change of name of the
original licensee of File No. ITC-214-20100512-00191, Cable & Wireless Holdings, Inc., to Cable & Wireless
Conununications, Inc.).



                                                           14


further certifies that it is and will continue to be affiliated with the following foreign carriers,

including entities that own or control a cable landing station, in any foreign country:""

                          Foreign Carrier                                                      Country
 Cable and Wireless (Anguilla) Limited                                           Anguilla
 Cable & Wireless Antigua & Barbuda Limited                                      Antigua and Barbuda
 The Bahamas Telecommunications Company Limited                                  The Bahamas
 Cable & Wireless (Barbados) Limited                                             Barbados
 Cable and Wireless (BVI) Limited                                                British Virgin Islands
 Cable and Wireless (Cayman Islands) Limited                                     Cayman Islands
 Cable & Wireless Dominica Limited                                               Dominica
 CWC Cable & Wireless Communications Dominican Republic SA                       Dominican Republic
 Cable & Wireless Grenada Limited                                                Grenada
 Cable & Wireless Jamaica Limited                                                Jamaica
 Cable and Wireless (West Indies) Limited                                        Montserrat
 Cable & Wireless Panama S.A.                                                    Panama
 Cable & Wireless (St. Lucia) Limited                                            St. Lucia
 Cable & Wireless St. Kitts & Nevis Limited                                      St. Kitts and Nevis
 Cable & Wireless St. Vincent and the Grenadines Limited                         St. Vincent and the Grenadines
 Cable & Wireless (Seychelles) Limited                                           Seychelles
 Telecommunications Services of Trinidad and Tobago Limited                     Trinidad and Tobago
 Cable and Wireless (TC1) Limited                                               Turks and Caicos Islands

         Upon consummation of the proposed transaction, C&W will be affiliated with the following

additional foreign carriers, which are currently affiliated with Cit:"

                          Foreign Carrier                                                   Country
 Kelcom International (Antigua & Barbuda) Ltd.                                  Antigua & Barbuda
 Columbus Communications Limited                                                The Bahamas
 Columbus Telecommunications (Barbados) Limited                                  Barbados
 Karib Cable Inc.                                                               Barbados
 ARCOS—1 USA, Inc.                                                               Belize
 Columbus Networks Bonaire, N.V.                                                 Bonaire
 Columbus Networks de Colombia, Ltda.                                            Colombia
 Columbus Networks Zona Franca Ltda.                                            Colombia
 Lazusde Colombia S.A.S.                                                        Colombia

‘" Upon consummation of the proposed Transaction, these foreign carrier affiliates of C&W will become affiliated with
the Licensees. These affiliations are fully disclosed herein, and the Applicants will comply with the notification
requirements of 47 C.F.R. 1.768.

* None ofthe carriers listed in this table is listed in the Commission‘s List of Foreign Telecommunications Carriers
that are Presumed to Possess Market Power in Foreign Telecommunications Markets. In addition, these foreign carriers
offer services in competition with dominant foreign carriers and others. These foreign carriers each hold significantly
less than a 50% market share in the international transport market between the U.S. and their home markets in the local
access markets in the countries where they operate. Moreover, these foreign carriers do not have the ability to
discriminate against unaffiliated U.S. international carriers through the control of bottleneck services or facilities to
exercise market power in the countries where they operate.


                                                           15


                          Foreien Carrier                                       Country
 Columbus Networks de Costa Rica S.R.L.                            Costa Rica
 Promitel Costa Rica S.A.                                          Costa Rica
 Columbus Communications Curacao N.V.                              Curacao
 Columbus Networks Curacao, N.V.                                   Curacao
 Columbus Networks Netherlands Antilles, N.V.                      Curacao
 Columbus Networks Dominicana. S.A.                                Dominican Republic
 Columbus Networks Centroamerica, S. de R.L.                       El Salvador
 Columbus Networks El Salvador S.A.                                El Salvador
 Columbus Communications (Grenada) Limited                         Grenada
 Columbus Networks de Guatemala Limitada                           Guatemala
 Columbus Networks de Honduras, S. de R.L.                         Honduras
 Columbus Communications Jamaica Limited                           Jamaica
 Columbus Networks Jamaica Limited                                 Jamaica
 Columbus Networks de Mexico S. de R.L. de C.V.                    Mexico
 Columbus Networks Nicaragua y Compafiia Limitada                  Nicaragua
 Columbus Networks de Panama S.R.L.                                Panama
 Promitel Panama S.A.                                              Panama
 Lazus Peru S.A.C.                                                 Peru
 Columbus Communications (St. Lucia) Limited                       St. Lucia
 Tele _(St. Lucia) Inc.                                            St. Lucia
 Columbus Communications St. Vincent and the Grenadines Limited    St. Vincent & The Grenadines
 Columbus Networks International (Trinidad) Limited                Trinidad & Tobago
 Columbus Communications Trinidad Limited                          Trinidad & Tobago
 Columbus Networks, Limited                                        Turks & Caicos
 Columbus Networks de Venezuela, S.A.                              Venezuela


       Section 1.767(a)(8)(iii)- Certification Regarding Destination Markets:

       By its signature to this application, the Transferee, C&W, certifies that following

consummation of the Transaction, one or more if its affiliates will provide international

telecommunications services in the following destination markets of the ARCOS-1 Cable: The

Bahamas, the Turks and Caicos Islands, the Dominican Republic, Curacao, Venezuela, Colombia,

Panama, Costa Rica, Nicaragua, Honduras, Guatemala, Belize and Mexico.

       C&W further certifies that following consummation of the Transaction, one or more of its

affiliates will provide international telecommunications services in the following destination

markets of the CFX-1 Cable: Jamaica and Colombia.




                                                  16


        Section 1.767(a)(8)(iv) — Demonstration Regarding WTO Status and Market Pow

        One ARCOS—1 destination market where a C&W affiliate currently provides and will

continue to provide internationaltelecommunications services is not a WTO member:"" The

Bahamas."" C&W has a 49% stake in The Bahamas Telecommunications Company Limited ("BTC"),

which is 49% owned by the government of The Bahamas. The remaining 2% is held in a charitable trust.

BTC appears on the FCC‘s "List of Foreign Carriers that are Presumed to Possess Market Power in

Foreign Telecommunications Markets," DA 07—233, January 26, 2007.

        Transferee certifics that it will comply with the dominant carrier safeguards of Sections

63.10(c) and (e) of the Commission‘s Rules in the provision ofinternationalservices to The

Bahamas, a destination market where its affiliated carrier has dominant status.""



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

        By its signature to this application, C&W hereby certifies, pursuantto Sections 1.2001

through 1.2003 of the Commission‘s Rules, 47 C.F.R. §§ 1.2001—1.2003 (implementing the Anti—

Drug Abuse Act of 1988, 21 U.S.C. §3301), that is it not subject to a denial of Federal benefits

pursuant to Section 5301 ofthe Anti—Drug Abuse Act of 1988.




" ‘The FCC has treated the British overseas territories as WTO Members. See, eg., Letter from Robert E. Dalton,
Assistant Legal Adviser for Treaty Affairs, United States Department of State, to Rebecca Arbogast, Chick,
Telecommunications Division, International Bureau, Federal Communications Commission (Feb. 16, 2000), at 1, cifed
in In the Matter of Cable & Wireless USA, Inc., Order, Authorization and Certificate, File No. ITC—214—19990709—
00412, rel. Feb. 18, 2000, at § 7, n.14. Thus, Turks and Caicos should be treated as a WTO Member for purposes of
this application.

* Although The Bahamas is not a Member of the WTO, it has applied for membership status, currently has observer
status, and its application is pending. See hitp://www.wto.orgfenglish/thewto_c/ace_c/al_bahamas_e.hm.

*! Post—consummation, C&W will also be affiliated with a second authorized carrier in The Bahamas, Columbus
Communications Limited. As previously noted, Columbus Communications Limited does not have market power in
Bahamas.


                                                         17


(9)     Certification of Compliance:

        By its signature to this application, C&W certifies that it accepts and will abide by the

routine conditions set forth in Section l.767(g) ofthe Commission's Rules, 47 C.F.R. §1.767(g).



V.      NATIONAL SECURITY REVIEW

        CNUSA states that it has previously undergone a "Team Telecom" review and has in place

an agreement with the United States Department of Homeland Security ("NSA") governing its

operations of the CFX-1 System.22 By their signature herein, CNUSA and C&W certify that after

the closing of the Transaction, they will continue to abide by the commitments made in the NSA.




22
   See Joint Petition to Adopt Conditions to the License, File No. SCL-LIC-20070516-00008 (Feb. 7, 2008) (including
attached Agreement between Columbus Networks USA, Inc. and U.S. Department of Homeland Security (Jan. 30,
2008)).


                                                         18


VI.        CONCLUSION

           For the foregoing reasons, the Applicants respectfully submit that the public interest,

convenience, and necessity would be furthered by a grant of this Application.

                                                 Respectfully submitted,




                                                   re       adi:lick
                                                 g · 1dent and ceo
                                                 Suite 205-207 Dowell House
                                                 Cr. Roebuck & Palmetto Streets
                                                 Bridgetown, Barbados
                                                 Phone: (246) 426-0417
                                                 Fax: (246) 228-5756


                                                 ARCOS-1 USA, Inc.
                                                 A.SurNet, Inc.
                                                 Columbus Networks USA, Inc.


                                                 PaulW. Scott
                                                 president and coo
                                                 15950 West Dixie Highway
                                                 North Miami Beach, FL 33162
                                                 Phone: (786) 274-7400
                                                 Fax: (786) 274-7402


                                                 Cable & Wireless Communications Pic


                                                 Nick Cooper
                                                 Company Secretary and Director
                                                 3rd Floor
                                                 26 Red Lion Square
                                                 London, United Kingdom
                                                 WC1R4HQ
                                                 Phone: +44 (0) 207 315 4000
                                                 Fax: +44(0) 207 315 5211

Date: November.tl, 2014



A/76545799. 1


VI.        CONCLUSION

           For the foregoing reasons, the Applicants respectfully submit that the public interest,

convenience, and necessity would be furthered by a grant of this Application.

                                                 Respectfully submitted,

                                                 Columbus Networks, Limited


                                                 Brendan Paddick
                                                 president and ceo
                                                 Suite 205-207 Dowell House
                                                 Cr. Roebuck & Palmetto Streets
                                                 Bridgetown, Barbados
                                                 Phone: (246) 426-0417
                                                 Fax: (246) 228-5756


                                                 ARCOS-1 USA, Inc.
                                                 A.SurNet, Inc.
                                                 Columbus Networ


                                                 Pau
                                                 p · s· nt and coo
                                                    950 West Dixie Highway
                                                 North Miami Beach, FL 33162
                                                 Phone: (786) 274-7400
                                                 Fax: (786) 274-7402


                                                 Cable & Wireless Communications Pic


                                                 Nick Cooper
                                                 Company Secretary and Director
                                                 3rd Floor
                                                 26 Red Lion Square
                                                 London, United Kingdom
                                                 WC1R4HQ
                                                 Phone:+44(0)2073154000
                                                 Fax: +44(0) 207 315 5211

Date: November .21, 2014



N76545799 ,I


VI.       CONCLUSION

          For the foregoing reasons, the Applicants respectfully submit that the public interest,

convenience, and necessity would be furthered by a grant of this Application.

                                                Respectfully submitted,

                                                Columbus Networks, Limited


                                                Brendan Paddick
                                                president and ceo
                                                Suite 205—207 Dowell House
                                                Cr. Roebuck & Palmetto Streets
                                                Bridgetown, Barbados
                                                Phone: (246) 426—0417
                                                Fax: (246) 228—5756


                                                ARCOS—1 USA, Inc.
                                                A.SurNet, Inc.
                                                Columbus Networks USA, Inc.


                                                Paul W. Scott
                                                president and coo
                                                15950 West Dixie Highway
                                                North Miami Beach, FL 33162
                                                Phone: (786) 274—7400
                                                Fax: (786) 274—7402


                                                Cable W\m@c

                                                Nick Cooper _
                                                Company Secretary and Dlre
                                                                         or
                                                3 Floor
                                                26 Red Lion Square
                                                London, United Kingdom
                                                WCIR 4HQ
                                                Phone: +44 (0) 207 315 4000
                                                Fax: +44(0) 207 315 5211

Date: November.2/, 2014


A/16545799.1


                                    Exhibit A


                 Organization of CII Pre-transaction



               Columbue
            lnt.mdon.. Inc.
                                              D     Columbus U.S. ticensees

               (Barbados)
                                              0     Other C<>lumbus group entities


                   I
Cll group




                                    Columbus TTNW
                                     Holdings Inc.
                                       (Barbados)



                                       Columbus
                                    Networks, Umlted
                                       (Barbados)




                                                                                 I
                                                                      Columbua Networks
                                    ARCOS-1 USA, Inc .               Puerto Rico Inc. (Puerto
                                       (Delaware)
                                                                               RICO)




                           I
                       Columbus
                  Networu USA, Inc.                         A. SUR NET, Inc.
                       (Delaware)                              (Delaware)




                                                          Columbus Netwot'b
                                                          T.-ommunlclllloM
                                                           ServiceS USA. Inc.
                                                               (Delewere)


                                  Organization of C&W Post—Transaction



                             Cable & Wireless                     . C&Wgroup
                             EueoaLs
                                  England)                        [TZ] coumbus u.S. icensees
                                                                  [C]] omer Coumbus group entities



                                                         Columbus
              C&W group                               international Inc.
                                                          (Barbados)



                                                      Columbus TTNW
                                                        Holdings Inc.
                                                          (Barbedos)


                                                          Columbus
                                                      Networks, Limited
                                                         (Barbados)

                                                              I
                                                     (Columbus NewCo )*




* If the transaction is conducted in two steps, as described in Section 11, Columbus NewCo would hold the U.S. licenses
until acquired by CNLin step 2. See also note 12 of the instant application.


                                   CERTIFICATE OF SERVICE


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


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

James Ball                                         Office of Chief Counsel/NTIA
International Bureau                               U.S. Department of Commerce
Federal Communications Commission                  14th Street and Constitution Ave., N.W.
445 12th Street, S.W.                              Washington, DC 20230
Washington, DC 20554                               (via first class U.S. mail, postage pre-paid)
(via electronic mail to James.Ball@fcc.gov)

David Krech                                        Defense Information Systems Agency
International Bureau                               Attn: GC/DOl
Federal Communications Commission                  6910 Copper Avenue
445 12th Street, S.W.                              Fort Meade, MD 20755-7088
Washington, DC 20554                               (via first class U.S. mail, postage pre-paid)
(via electronic mail to
David.Krech@fcc.gov)

Susan O'Connell
International Bureau
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
(via electronic mail to
Susan.OConnell@fcc.gov)

Mindel De La Torre
International Bureau
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
(via electronic mail to
Mindel.DeLaTorre@fcc.gov)
                                (continued on next page)


Troy Tanner
International Bureau
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
(via electronic mail to
Troy.Tanner@fcc.gov)



                                        M Renee Britt

November 21, 2014




                                    2



Document Created: 2014-11-21 15:39:48
Document Modified: 2014-11-21 15:39:48

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