Attachment CBI-HTI SCL (FINAL 8

This document pretains to SCL-T/C-20170811-00020 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2017081100020_1260588

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

In the Matter of                                   )
                                                   )
Hawaiian Telcom, Inc. and                          )
Hawaiian Telcom Services Company, Inc.,            )
      Licensees,                                   )
                                                   )       File No. SCL-T/C-2017______
Hawaiian Telcom Holdco, Inc.,                      )
      Transferor,                                  )
                                                   )
       and                                         )
                                                   )
Cincinnati Bell Inc.,                              )
      Transferee                                   )
                                                   )
Application for Transfer of Control of             )
Cable Landing Licenses                             )


                   JOINT APPLICATION FOR TRANSFER OF CONTROL OF
                              CABLE LANDING LICENSES

       Hawaiian Telcom Holdco, Inc. (“Holdco” or “Transferor”) and Cincinnati Bell Inc.

(“Cincinnati Bell” 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 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 Hawaiian Telcom, Inc. (“HTI”), and Hawaiian Telcom

Services Company, Inc. (“HTSC”) (collectively, the “Licensees,” and together with Transferor and

Transferee, the “Applicants”) from Holdco to Cincinnati Bell.

       HTI and HTSC are authorized by the Commission to operate the Hawaii Island Fiber

Network (“HIFN Cable”), which consists of approximately 400 miles of undersea fiber that


connects the six major islands of Oahu, Kauai, Molokai, Lanai, Maui, and the island of Hawai‘i. 1

The HIFN Cable, which is operated on a common carrier basis, is jointly owned with tw telecom of

hawaii l.p. In addition, HTI owns and operates the Hawaii Inter-Island Cable System (“HICS

Cable”) that connects four of the Hawaiian Islands, Oahu, Kauai, Maui, and Hawai‘i. 2 Finally,

HTSC holds an interest in segments four through six of the SEA-US East subsystem, non-common

carrier fiber-optic submarine cable network connecting the continental United States, Indonesia, the

Philippines, Guam, and Hawai‘i, the Southeast Asia-US submarine cable system (“SEA-US

Cable”). 3

        As described below, Cincinnati Bell and the shareholders of Holdco, the indirect parent of

Licensees, have signed an agreement whereby Cincinnati Bell will directly acquire 100% of

Holdco, including indirectly 100% ownership of Licensees (the “Transaction”). 4 As a result of the

Transaction, Cincinnati Bell will indirectly control the respective interests of HTI and HTSC in the

HIFN Cable, the HICS Cable, and the SEA-US Cable. Although indirect control of the Licensees

will change from Holdco to Cincinnati Bell, services in the United States will continue to be

provided to the customers of the HIFN Cable, HICS Cable, and SEA-US Cable under existing

service arrangements, consistent with the submarine cable landing licenses granted to the Licensees

1
          See IBFS File Nos. SCL-LIC-19950627-00024; SCL-MOD-20001015-00036; SCL-MOD-20131114-00012;
SCL-ASG-20150512-00012 (transferring interests in Kawaihae and Makaha cable landing stations, from Wavecom
Solutions Corporation (“Wavecom”), a wholly owned direct subsidiary of HTI, to HTSC); SCL-ASG-20161222-00027
(transferring interest in HIFN Cable, except for Kawaihae and Makaha cable landing stations, from Wavecom to HTI)
[hereinafter collectively HIFN Authorization].
2
      See IBFS File Nos. SCL-LIC-19921015-00008; SCL-ASG-20110112-00002 (assigning authorization from
GTE Hawaiian Telephone Company to HTI) [hereinafter collectively HICS Authorization].
3
        See IBFS File No. SCL-LIC-20150626-00016 (joint authorization of HTSC, GTI Corporation, Globe Telecom,
Inc., RAM Telecom International, Inc., TeleGuam Holdings, LLC, d/b/a GTA TeleGuam, PT Telekomunikasi
Indonesia International, and Telekomunikasi Indonesia International (USA) Inc.) [hereinafter SEA-US Authorization].
4
         Applicants are concurrently filing an application to transfer control of three domestic Section 214 authorities
held by HTI, HTSC and Wavecom, respectively; and two international Section 214 licenses held by HTI and HTSC,
respectively. See FCC File Nos. ITC-214-20040630-00512; ITC-214-20010503-00269. Applicants are also
concurrently filing applications for the transfer of control of wireless licenses held by HTI and Wavecom. See ULS File
Nos. 0007862629, 0007865711, 0007867994.

                                                           2


by the Commission. The Transaction, therefore, will not result in any disruption, termination or

confusion for existing customers and the transition from Holdco to indirect Cincinnati Bell

ownership and control will be seamless. The Applicants provide the following information in

support of this Application:


I.     THE APPLICANTS

       A.      Hawaiian Telcom, Inc. (Licensee)

               FRN: 0001520980

       HTI, a Hawai‘i corporation, is wholly owned by Hawaiian Telcom Communications, Inc.

(“HTCI”), a Delaware company, which in turn is wholly owned by Holdco. As the largest full

service provider of telecommunications services and products in the state of Hawai‘i, HTI is the

incumbent local exchange carrier (“ILEC”), serving Hawai‘i for over 133 years. HTI holds a

license to land and operate the HICS and HIFN cables. 5 Upon consummation of the Transaction,

HTI will be a wholly owned indirect subsidiary of Cincinnati Bell.

       B.      Hawaiian Telcom Services Company, Inc. (Licensee)

               FRN: 0013077250

       HTSC, a Delaware corporation authorized to conduct business in the state of Hawai‘i,

provides interstate and intrastate long distance, high speed Internet, video, managed services,

advanced communications and network services, data center services including colocation and

virtual private clouds, cloud-based services, and wireless service. As described above, HTSC holds

a license to operate the Kawaihae and Makaha cable landing stations for the HIFN cable and is

authorized by the Commission to land and operate the SEA-US cable. 6 HTSC is a wholly owned


5
       See HIFN Authorization, supra note 1; HICS Authorization, supra note 2.
6
       See HIFN Authorization, supra note 1; SEA-US Authorization, supra note 3.

                                                       3


indirect subsidiary of Holdco. As such, upon consummation of the Transaction, HTSC will be a

wholly owned indirect subsidiary of Cincinnati Bell.

        C.       Hawaiian Telcom Holdco, Inc. (Transferor)

                 FRN: 0012790945

        Hawaiian Telcom Holdco, Inc. (“Holdco”) is a widely held, publicly traded company

(NASDAQ: HCOM) that, along with its subsidiaries, is headquartered in Honolulu, Hawai‘i.

Holdco’s 100% interest in HTI and HTSC is held through an intermediate holding company HTCI.

        E.       Cincinnati Bell Inc. (Transferee)

                 FRN: 0003018033

        Cincinnati Bell is a publicly traded corporation (NYSE: CBB). Among other services,

Cincinnati Bell and its subsidiaries provide high-speed data, video and voice solutions to consumers

and businesses over an expanding fiber network and legacy copper network. 7 Cincinnati Bell,

through its subsidiary Cincinnati Bell Telephone Company LLC (“CBT”), has operated as an ILEC

serving portions of Ohio, Kentucky, and Indiana for over 140 years. CBT is the only telephone

company formerly associated with the Bell System that still operates independently. Beyond

CBT’s ILEC territory, Cincinnati Bell provides competitive local exchange carrier (“CLEC”)

services in contiguous areas in Ohio and video service in portions of Ohio, Kentucky, and Indiana

through its indirect subsidiary Cincinnati Bell Extended Territories LLC (“CBET”), and provides

nationwide long distance, voice over Internet protocol (“VoIP”) and CLEC service through its

indirect subsidiary Cincinnati Bell Any Distance Inc. (“CBAD”). 8                      Pursuant to the proposed

Transaction, Cincinnati Bell will acquire all of the stock of Holdco and, as a result, Holdco will be a

7
        Through Cincinnati Bell Technology Solutions Inc. (“CBTS”), a Delaware corporation, 100% owned by
Cincinnati Bell, Cincinnati Bell also provides enterprise customers across the United States efficient, scalable office
communications systems and end-to-end IT solutions.
8
        CBAD is 100% owned by Cincinnati Bell’s CBTS direct subsidiary.

                                                          4


direct, wholly owned subsidiary of Cincinnati Bell and Cincinnati Bell will become the ultimate

owner of Licensees.


II.      THE PROPOSED TRANSACTION

         Pursuant to the Agreement and Plan of Merger (the “Agreement”), dated as of July 9, 2017,

by and among Cincinnati Bell, Twin Acquisition Corp. (“Merger Sub”), 9 and Holdco, Merger Sub

will merge with and into Holdco, whereupon the separate existence of Merger Sub will cease and

Holdco will be the surviving corporation (the “Transaction”). Cincinnati Bell will acquire all of the

stock of Holdco, and assume its debt, for cash and Cincinnati Bell common stock worth

approximately $650 million. 10 As a result of this Transaction, Holdco will be a direct, wholly

owned subsidiary of Cincinnati Bell and Cincinnati Bell will become the ultimate owner of

Licensees. 11

         After the Transaction closes, Leigh Fox, the current President and Chief Executive Officer

of Cincinnati Bell, will continue to serve as President and Chief Executive Officer of the combined

company. Two people, who reside in Hawai‘i, will join the Board of Directors of Cincinnati Bell.

Cincinnati Bell will continue to be publicly traded. Licensees and Cincinnati Bell will continue to

maintain their separate local brand identities and operations and Licensees will continue to be

locally managed from Hawai‘i. The Transaction will be transparent to customers and will not result

9
       Merger Sub is a wholly owned Delaware subsidiary of Cincinnati Bell formed for the purposes of
implementing the Transaction. More information regarding Cincinnati Bell can be found at www.cincinnatibell.com.
10
          Holdco shareholders will have the option to elect either cash, Cincinnati Bell common stock, or some
combination thereof in exchange for each share of Holdco subject to proration such that the aggregate consideration to
be paid to Holdco shareholders will be 60% cash and 40% Cincinnati Bell common stock. Holdco shareholders will be
entitled to receive shares representing no more than 15% of Cincinnati Bell’s common stock.
11
        See the pre- and post-Transaction corporate ownership structures depicted in Exhibit A. The Transaction, if
approved, would leave HTI and HTSC as indirect subsidiaries of Cincinnati Bell through two intermediate holding
companies, Holdco and HTCI. Cincinnati Bell is currently studying the possibility of merging these two intermediate
holding companies into the Cincinnati Bell parent corporation some time following the closing of the Transaction. If
completed, Cincinnati Bell will submit the required post-closing notice for this pro forma change to transfer direct stock
ownership of HTI and HTSC to Cincinnati Bell.

                                                            5


in service disruption, termination, or customer confusion. Applicants seek approval for the

Transaction under which indirect control of the Licensees will be transferred to Cincinnati Bell.

 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 Pacific region.

        Cincinnati Bell is managerially, technically, and financially well-qualified to complete the

Transaction and assume indirect ownership control of the Licensees. Cincinnati Bell has provided

telecommunications services for more than a century and leverages a fiber-rich network to continue

offering advanced telecommunications solutions to consumer, commercial, and carrier customers in

its expanded territory. Cincinnati Bell believes that “fiber density” will increasingly be a market

differentiator for businesses and consumers, enabling faster and more efficient commercial

opportunities and its fiber facilities now pass approximately 70 percent of the locations in its

operating area. As fiber becomes increasingly critical – expected to comprise 50% of the cable

market by 2020 – Cincinnati Bell expects that its extensive fiber network will position it on the

leading edge of the industry, able to anticipate and address customer needs. Together with HTI,

Cincinnati Bell will be positioned to expand the combined Company’s Next Generation fiber

network to both urban and non-urban areas in Hawai‘i, bringing superior service and speed to even

more customers in Oahu and the neighbor islands. The combined fiber network will exceed 15,000

fiber route miles, further differentiating Cincinnati Bell from traditional carriers of its size.

        Cincinnati Bell has the experience and resources to support and enhance the Licensees’

operations.   Cincinnati Bell management has significant experience operating incumbent local

exchange companies in both urban and non-urban markets and Cincinnati Bell has successfully



                                                     6


deployed fiber facilities and brought innovative broadband and video services to such markets.

Cincinnati Bell has a proven track record in running a financially sound company well-positioned to

maintain its network over the long term while successfully pursuing network expansions. The

Transaction will strengthen the Licensees’ existing business by giving them access to Cincinnati

Bell’s expansive suite of products and services, facilities and vendor relationships. Such services,

facilities and vendor relationships will allow Licensees to deliver a broader suite of products and

services to consumers and businesses in Hawai‘i. The increased scale and resources of the

combined operation will facilitate greater growth opportunities in a range of products and services

including expanded broadband and entertainment products available over an enhanced fiber

network. These growth opportunities will not negatively impact the Licensees’ costs of operations.

Moreover, leveraging best-practices of the combined entities will allow knowledge sharing leading

to improved efficiencies and operations benefitting both Cincinnati Bell and Licensees. In short,

Applicants anticipate that the Transaction will result in a stronger combined company and benefit

consumers in the following ways:

   •   Licensees will gain access to Cincinnati Bell’s full suite of services, facilities and vendor
       relationships. Such services, facilities and vendor relationships will allow Licensees to
       deliver a broader suite of services to customers and businesses in Hawai‘i. The combined
       operation will have greater growth opportunities in a range of products and services.

   •   Customers will benefit from increased content-buying power and access to Cincinnati Bell’s
       expanded service offerings. Additionally, Licensees will have access to Cincinnati Bell’s
       robust analytics capabilities, which will allow for better mapping of customer demands and
       needs to capabilities, which will result in increased efficiencies and enhanced offerings.

   •   While no systems cutover is required as a result of the Transaction, both companies, with
       increased scale, will be able to implement combined systems with improved capabilities,
       allowing for improved efficiencies and improved customer support services.

   •   Licensees will be able to leverage Cincinnati Bell’s analytics capabilities and market
       strategies to pursue wireless fiber builds and small cell networks.

   •   In the combined enterprise, although Licensees will gain access to Cincinnati Bell’s

                                                 7


         managerial and operational experience and resources, local Hawai‘i management will
         continue to play an important role in local decision making and the ability to shape how
         best to meet the needs of Hawai‘i’s communities.

     •   Licensees will benefit from the financial support of the combined enterprise, thereby
         enabling Licensees to deliver improved services and expand infrastructure across the islands
         addressing demands for high quality high speed broadband and competitive video offerings.
     •   Cincinnati Bell will gain access to the SEA-US submarine cable for better and more cost-
         effective routing of international traffic and traffic between the U.S. mainland and Hawai‘i,
         benefitting both retail customers as well as wholesale customers.

         The Transaction is structured only as a change of ownership at the holding company level

and will not affect any of the operations or legal identities of the Licensees. The proposed

Transaction will not result in a change of carrier for any customers or any assignment of existing

Commission authorizations. Further, Licensees’ rates, terms and conditions of services currently

provided to their customers will not change as a result of the Transaction. Any future changes will

be done with careful planning and implementation in the normal course of business operations.

There will be no need to change any billing systems or operational support systems before closing

the Transaction. Any future service changes, information technology upgrades, or expansions to

HTI’s and Cincinnati Bell’s systems will be done with careful planning and execution in the normal

course of business operations.

         The change in control will also not result 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. 12 The Commission

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



12
         See In the Matter of Applications filed by Global Crossing Limited and Level 3 Communications, Inc. for
Consent to Transfer Control, Memorandum Opinion and Order and Declaratory Ruling, 26 FCC Rcd 14056, 14069-70
(2011) (citing In the Matter of AT&T Inc. and BellSouth Corporation, Application for Transfer of Control,
Memorandum Opinion and Order, 22 FCC Rcd 5662, 5741, ¶ 159 (2007); In the Matter of Verizon Communications
Inc. and MCI, Inc., Applications for Approval of Transfer of Control, Memorandum Opinion and Order, 20 FCC Rcd
18433, 18514-15, ¶ 158 (2005)).

                                                       8


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

power through unilateral or coordination action. 13 The market for transport in the Pacific region is

very competitive. Cincinnati Bell does not presently operate in Hawai‘i and therefore does not

compete with Licensees and the Transaction will not have any impact on the current level of

competition in the Pacific region. Moreover, in strengthening the financial and operational capacity

and scale of Hawai‘i’s largest telecommunications provider, the proposed Transaction will enhance

competition to the benefit of consumers. 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.    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:

       Licensees:              Hawaiian Telcom, Inc.
                               Hawaiian Telcom Services Company, Inc.
                               1177 Bishop Street
                               Honolulu, HI 96813
                               808-546-4511



13
        Id.



                                                    9


      Transferor:              Hawaiian Telcom Holdco, Inc.
                               1177 Bishop Street
                               Honolulu, HI 96813
                               808-546-4511

      Transferee:              Cincinnati Bell Inc.
                               221 East Fourth Street
                               Cincinnati, OH 45202
                               513-397-9900

(2)   Place of Formation:

      Licensees:        HTI is organized under the laws of the State of Hawai‘i.
                        HTSC is organized under the laws of the State of Delaware.

      Transferor:       Holdco is organized under the laws of the State of Delaware.

      Transferee:       Cincinnati Bell is organized under the laws of the State of Ohio.

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

      For Cincinnati Bell:
      Christopher J. Wilson
      Vice President & General Counsel
      Cincinnati Bell Inc.
      221 East Fourth Street
      Cincinnati, OH 45202
      Tel: 513-397-0750
      Fax: 513-421-1367
      christopher.wilson@cinbell.com

      with a copy to:

      Andrew D. Lipman
      Catherine Wang
      Morgan, Lewis & Bockius LLP
      1111 Pennsylvania Ave., N.W.
      Washington, DC 20004-2541
      Tel: 202-739-3000
      Fax: 202-739-3001
      andrew.lipman@morganlewis.com
      catherine.wang@morganlewis.com



                                                  10


       For Holdco and the Licensees:

       Steven P. Golden
       Hawaiian Telcom, Inc.
       1177 Bishop Street
       Honolulu, HI 96813
       Tel: 808-546-3877
       Fax: 808-546-8992
       steven.golden@hawaiiantel.com

(4)    Description of the Cable System:

               A description of the HIFN Cable is on file with the Commission under FCC File No.

SCL-LIC-19950627-00024; a description of the HICS Cable is on file with the Commission under

FCC File No. SCL-LIC-19921015-00008; and a description of the SEA-US Cable is on file with the

Commission under FCC File No. SCL-LIC-20150626-00016. Each license file is incorporated by

reference herein.

(5)    Landing Points

               General descriptions of the HIFN Cable, HICS Cable, and SEA-US 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 HIFN Cable and the HICS Cable are operated and will continue to operate on a

common carrier basis. The SEA-US Cable is operated and will continue to be operated on a non-

common-carrier basis.

       (7)      Ownership Interests in the HICS, HIFN and SEA-US Cables

       The HICS Cable is 100% owned by HTI. Together, HTI and HTSC hold a 50% ownership




                                               11


interest in the HIFN Cable. 14 HTSC holds a 13.27% ownership interest in segments 4, 5, and 6 of

the SEA-US East subsystem of the SEA-US Cable. The interests of HTI in the HICS Cable and

HIFN Cable and the interests of HTSC in the HIFN Cable and the SEA-US Cable will, upon

consummation of the Transaction, become indirectly wholly owned and controlled by Cincinnati

Bell.

(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 & Interlocking Directorates

        Upon completion of the Transaction, HTI and HTSC will remain direct, wholly owned

subsidiaries of HTCI, a Delaware holding company with its principal business address at 1177

Bishop Street, Honolulu, Hawai‘i 96813. HTCI will remain a direct, wholly owned subsidiary of

Holdco. As a result of the Transaction, Holdco, HTCI, HTI and HTSC will be ultimately wholly

owned by Cincinnati Bell. 15

        Cincinnati Bell is, and will remain post-closing, a publicly traded company.                        To its

knowledge, Cincinnati Bell has three 10 percent or greater interest holders, BlackRock, Inc., The

Vanguard Group, Inc., and GAMCO, all of which are U.S.-based investment management

companies, which hold approximately 13.8%, 13.54%, and 12.37% respectively of Cincinnati Bell

common stock. The percentage interest held by BlackRock, Inc., The Vanguard Group, Inc, and

GAMCO Investors, Inc. is expected to be diluted as a result of the Transaction.




14
         The HIFN Cable is jointly owned with tw telecom of hawaii l.p. tw telecom owns the sheath and 50 percent of
the fibers within the sheath for all of the segments except for the segments to Lanai and Molokai. HTI owns the
remaining 50 percent of the fibers within the interisland segments other than to Lanai and Molokai. HTI owns the
sheath and 100 percent of the fibers for the Lanai and Molokai interisland segments. See supra note 1.
15
        See the pre- and post-Transaction corporate ownership structures depicted in Exhibit A.

                                                         12


                 Name:                      BlackRock, Inc. 16
                 Address:                   55 East 52nd Street
                                            New York, NY 10055
                 Citizenship:               United States (Delaware)
                 Principal Business:        Investment Management
                 % Interest:                13.8% (indirectly, as the parent of BlackRock Fund
                                            Advisors) 17

                 Name:                      The Vanguard Group, Inc. 18
                                            100 Vanguard Blvd.
                                            Malvern, PA 19355
                 Citizenship:               United States (Pennsylvania)
                 Principal business:        Investment Management
                 % Interest:                13.54% 19

                 Name:                      GAMCO Investors, Inc. (“GAMCO”)
                                            One Corporate Center
                                            Rye, New York 10580-1435
                 Citizenship:               United States (New York)
                 Principal business:        Investment Management
                 % Interest:                12.37% 20


16
        BlackRock, Inc., a publicly traded corporation, holds its interest in Cincinnati Bell through BlackRock Fund
Advisors, an investment management company owned by BlackRock, Inc. Based on publicly available information,
Applicants are not aware of any other person or entity currently holding a 10% or greater interest in Cincinnati Bell
through BlackRock, Inc.
17
       See BlackRock, Inc., Information Statement Pursuant to Rules 13-d-1 and 13d-2 Under the Securities and
Exchange Commission Act of 1934, Amendment No. 8 (Schedule 13G/A) (Jan. 12, 2017).
18
         The Vanguard Group is a large privately held U.S.-based investment management company structured as a
mutual company owned by funds managed by the company and ultimately by its customers. See Why Ownership
Matters, VANGUARD, https://about.vanguard.com/what-sets-vanguard-apart/why-ownership-matters/ (last visited
August 7, 2017). The Vanguard Group’s shares in Cincinnati Bell are held through funds that the Vanguard Group
owns and/or manages. The Chairman of the Board, President, and Chief Executive Officer is F. William McNabb III.
The remainder of the Board is made up of Emerson U. Fullwood, Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan
Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, André F. Perold, and Peter F. Volanakis. Based on
publicly available sources it appears that at least a majority of the Board are likely U.S. citizens. Applicants are not
aware of any person or entity currently holding a 10% or greater ownership interest in Cincinnati Bell through the
Vanguard Group.
19
       See Vanguard Group, Inc., Information Statement Pursuant to Rules 13-d-1 and 13d-2 Under the Securities and
Exchange Commission Act of 1934, Amendment No. 9 (Schedule 13G/A) (Feb. 10, 2017).
20
         This percentage ownership represents the aggregate ownership of multiple investment entities under the direct
or indirect control of Mario J. Gabelli (“Gabelli”), a U.S. citizen whose business address is One Corporate Center, Rye
New York 10580-1435. The entities controlled by Gabelli have the same business address. Their percentage equity
ownership in Cincinnati Bell are: GAMCO Asset Management Inc., a New York corporation with 6.68%; Gabelli
Funds, LLC, a New York corporation with 5.18%; MJG Associates, Inc., a Connecticut corporation with .01%; and
Teton Advisors, Inc., a Delaware corporation with .36%. See GAMCO Investors, Inc. et al., Information Statement
Pursuant to Rules 13-d-1 and 13d-2 Under the Securities and Exchange Commission Act of 1934, Amendment No. 10
 (Schedule 13D/A) (Dec. 12, 2014).

                                                          13


        Cincinnati Bell does not expect any new person or entity to own or control 10% or more of

its stock as a result of the Transaction.

        Except for its indirect subsidiary, CBTS Canada Inc. (“CBTS Canada”), Cincinnati Bell

does not have any interlocking directorates with foreign carriers. All of the following directors and

officers of CBTS Canada are also officers of Cincinnati Bell:


        CBTS Canada Directors

        Leigh R. Fox
        Christopher C. Elma

        CBTS Canada and CBI Officers

        Leigh R. Fox                      Chief Executive Officer
        Thomas E. Simpson                 Chief Operating Officer
        Christopher J. Wilson             Vice President & General Counsel
        Christopher C. Elma               Vice President, Treasury & Tax
        Joshua T. Duckworth               Vice President & Controller & Investor Relations
        Julie M. Barlow                   Managing Director, Tax
        Connie M. Vogt                    Corporate Secretary


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

are provided as Exhibit A.

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

        By its signature to this application, the Transferee, Cincinnati Bell, hereby certifies that it is

not a foreign carrier, and does not directly own a cable landing station in any foreign country. 21




21
         Cincinnati Bell is affiliated with a foreign carrier through its indirect subsidiary CBTS Canada, a company
organized under the laws of Ontario, Canada, which holds a Reseller Registration and Basic Telecommunications
Services (“BTS”) License to provide resold long distance service on a non-dominant competitive basis in Canada.
Upon completion of the Transaction, HTI, HTSC and Wavecom will become affiliated with CBTS Canada. CBTS
Canada does not own any cable landing facilities.

                                                        14


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

        By its signature to this application, the Transferee, Cincinnati Bell, certifies that following

consummation       of   the    Transaction,     none    of    its   affiliates   will   provide    international

telecommunications services to any destination market of the HIFN Cable, the HICS Cable or the

SEA-US Cable where : (i) it is a foreign carrier in that country; or (ii) two or more foreign carriers

(or parties that control foreign carriers) own, in the aggregate, more than 25 percent of Cincinnati

Bell and are parties to, or the beneficiaries of, a contractual relationship affecting the provision or

marketing of international basic telecommunications services in the United States. Cincinnati Bell

certifies that it does not, by this application, seek to provide international telecommunications

services to countries where it controls foreign carriers.

        Section 63.18(o) – Certification Regarding the Anti-Drug Abuse Act of 1988:

        By its signature to this application, Cincinnati Bell hereby certifies, pursuant to 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 of the Anti-Drug Abuse Act of 1988.

(9)     Certification of Compliance:

        By its signature to this application, Cincinnati Bell certifies that it accepts and will abide by

the routine conditions set forth in Section 1.767(g) of the Commission’s Rules, 47 C.F.R. §1.767(g).


V.      NATIONAL SECURITY REVIEW

        HTSC is a party to an agreement with the United States Department of Homeland Security

(“DHS”) (the “NSA”) governing its operations on the SEA-US Cable. 22 In addition, HTI has



22
        See Petition to Adopt Conditions to Authorizations and Licenses, File No. SCL-LIC-20150626-00016 (Jan. 12,
2017) (including attached Agreement between GTI Corporation d/b/a GTI Telecom, Hawaiian Telcom Services

                                                       15


provided a Letter of Assurance (“LOA”) to DHS and the U.S. Department of Justice (“DOJ”)

providing certain commitments with regard to its operations on the HIFN Cable and the HICS

Cable. 23 By their signature herein, HTSC, HTI and Cincinnati Bell certify that after the closing of

the Transaction, they will continue to abide by the commitments made in the NSA and LOA.


VI.     STREAMLINED PROCESSING REQUEST

        The Applicants hereby request streamlined processing pursuant to Sections 1.767(j) and (k)

of the Commission’s rules, 47 C.F.R. §§ 1.767(j), (k). In particular, post-closing, none of the

Applicants will be affiliated with a dominant foreign carrier. Moreover, this application raises no

competition or public interest concerns that would require consideration outside of the

Commission’s streamlined review process. For all of these reasons, this application is eligible for

streamlined processing under the Commission’s rules.




Company, Inc., RAM Telecom International, Inc., and TeleGuam Holdings, LLC d/b/a GTA and U.S. Department of
Homeland Security (Jan. 11, 2017)).
23
         See Petition to Adopt Conditions to Authorizations and Licenses, File Nos. ITC-T/C-20120716-00183; ISP-
PDR-20120716-00003; WC Docket No. 12-206 (Dec, 10, 2012) (including attached LOA from HTI to DHS and DOJ
(Dec. 7, 2017)).

                                                      16


VII.   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,



 Hawaiian Telcom Holdco, Inc.                        Cincinnati Bell Inc.
 Hawaiian Telcom, Inc.
 Hawaiian Telcom Services Company, Inc.

 /s/                                                  /s/
 John T. Komeiji                                     Andrew D. Lipman
 Chief Administrative Officer and General            Catherine Wang
 Counsel                                             Denise S. Wood
 Hawaiian Telcom Holdco, Inc.                        Morgan, Lewis & Bockius LLP
 1177 Bishop Street                                  1111 Pennsylvania Ave., N.W.
 Honolulu, HI 96813                                  Washington, DC 20004-2541
 Tel: 808-546-1278                                   Tel: 202-739-3000
 Fax: 808-546-8992                                   Fax: 202-739-3001
 john.komeiji@hawaiiantel.com                        andrew.lipman@morganlewis.com
                                                     catherine.wang@morganlewis.com
                                                     denise.wood@morganlewis.com

                                                     Counsel for Cincinnati Bell Inc.


 Date: August 11, 2017




                                                17


Exhibit A


                              Hawaiian Telcom and Cincinnati Bell
                         Post—Transaction Corporate Organization Chart
 Allsatcines nthischart epresent 100% ounershi. the
 entties isted herein only include Cincinati Bet and ts
 subsidaresthat (1) hold uthorization to pronide intrastat.
 interstat orinteationaltelecommunications senices or(2)
 ae in the chainof ounershipof those entties. The chatt
 excludes subsidariesand affates ofCncimati Bthat o
 nothold authorization to provide telecommunications
 senices nthe Unted Statesor Canada

                                                              Cincimati Bellnc.
                                                                    (Of)



                                  Cincimat Bell                 Cincinnati Bel                     Hawaiin Telcom Holdco,Inc
                                   Technology                     Telephone                                (Delovare)
                               Solutions nc. (0E)             CompanyLLC 0)

                                                                 Cincinnati Bel                 Hawaian Telcom Communications,
Cincimat Beil any               CBTS Canadainc                Extended Terrtones                             Inc
Distance ne. (DE)                  (Ontar)                          ie 0)                                 (Delavare)


Cincimat Beil Any
Distance of Virgnia                                                               Hawaian Telcom , nc                Hawaian Telcom Senices Company.
    ue (va‘)                                                                            (avai)                                     Inc
                                                                                                                                (Delovare)

                                                                           Warecom Sclutons Corporation
                                                                                    (Hovai)


                                       VERIFICATION


I, Christopher J. Wilson, state that I am Vice President and General Counsel of Cincinnati Bell
Inc. (the "Company‘); that I am authorized to make this Verification on behalf of the Company;
that the foregoing filing was prepared under my direction and supervision; and that the contents
with respect to the Company and its subsidiaries are true and correct to my knowledge,
information, and belief.

       I declare under penalty of perjury that the foregoing is true and correct. Executed this

IO#e day of August 2017.




                                     Christopher ; W%d’n
                                     Vice President and General Counsel
                                     Cincinnati Bell Inc.
                                     221 East Fourth Street
                                     Cincinnati, OH 45202
                                     Tel: 513—397—0750
                                     Fax: 513—421—1367
                                     christopher.wilson@cinbell.com




                                                                                                  FCC


                                       VERIFICATION


I, John T. Komeiji, state that I am the Chief Administrative Officer and General Counsel of
Hawaiian Telcom Holdco, Inc. (the "Company"); that I am authorized to make this Verification
on behalf of the Company; that the foregoing filing was prepared under my direction and
supervision; and that the contents with respect to the Company and its subsidiaries are true and
correct to my knowledge, information, and belief.

       I declare under penalty of perjury that the foregoing is true and correct. Executed this

10th day of August 2017.



                                      lb
                                     John T. Komeiji
                                     Chief Administrative Officer and General Counsel
                                     Hawaiian Telcom Holdco, Inc.
                                      1177 Bishop Street
                                     Honolulu, HI 96813
                                     Tel: 808—546—1278
                                     Fax: 808—546—8992 (fax)
                                     john.komeiji@hawaiiantel.com




                                                                                                  FCC


                                   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)

Troy Tanner                                        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 Troy.Tanner@fcc.gov)

David Krech                                        Defense Information Systems Agency
International Bureau                               Attn: GC/DO1
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                                    Thomas Sullivan
International Bureau                               International Bureau
Federal Communications Commission                  Federal Communications Commission
445 12th Street, S.W.                              445 12th Street, S.W.
Washington, D.C. 20554                             Washington, D.C. 20554
(via electronic mail to                            (via electronic mail to
Susan.OConnell@fcc.gov)                            thomas.sullivan@fcc.gov)



                                                    /s/
                                                   ______________________
                                                   Denise Wood

August 11, 2017



Document Created: 2017-08-11 16:22:58
Document Modified: 2017-08-11 16:22:58

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