Attachment Public Interest

This document pretains to SES-ASG-20150828-00555 for Assignment on a Satellite Earth Station filing.

IBFS_SESASG2015082800555_1101660

                                                                                          FCC Form 312
                                                                                              Exhibit 1


                                 DESCRIPTION OF TRANSACTION
                                AND PUBLIC INTEREST STATEMENT


I.      DESCRIPTION OF THE TRANSACTION

        Broadpoint, LLC, Broadpoint License Co., LLC (collectively, “Broadpoint”), and

Broadpoint Newco, LLC (“Newco”), an entity to be controlled by Tampnet Inc. (“Tampnet”)

(collectively, the “Parties”) seek Commission consent to the assignment of wireless radio service

licenses1 and satellite earth station licenses set forth in this application (the “FCC Licenses”)

from Broadpoint, as the Assignor, to Newco, as the Assignee.2



II.     DESCRIPTION OF THE APPLICANT

        Tampnet currently operates the Gulf of Mexico’s largest high speed, multi-point

broadband network utilizing, in part, thirty-eight microwave licenses issued to the company in

2014.3 Tampnet is a full service communications company providing managed services to

industry and government including network management, carrier services and a full range of

broadband and converged IP solutions. Using microwave solutions, WiMAX technologies and

fiber-backed, carrier-grade backhaul, Tampnet integrates its network solutions with satellite and


1
 The parties are also concurrently filing an application to assign certain cellular and AWS licenses from
Broadpoint to Newco.
2
 Newco is currently a wholly-owned subsidiary of Broadpoint. Immediately following the pro forma
assignment of the FCC Licenses to Newco, Tampnet will acquire from Broadpoint all of the membership
interests of Newco. Accordingly, upon close of the transaction, Newco will become a wholly-owned
subsidiary of Tampnet. The parties seek consent to both of these nearly concurrent transactions.
3
 Tampnet and its wholly-owned subsidiary, Tampnet Licensee LLC (“Tampnet Licensee”) has pending
before the Commission numerous applications to convert microwave licenses to common carrier status.
In conjunction with those applications, on May 7, 2015, Tampnet filed a petition for declaratory ruling
under Section 310(b)(4) requesting that the Commission issue a declaratory ruling finding that 100
percent indirect foreign ownership of Tampnet Licensee is in the public interest. That petition is pending
before the International Bureau in File No. ISP-PDR-20150507-00003.


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carrier services, enhancing the customer experience and enabling enterprise class broadband

solutions to remote locations.

        Tampnet’s parent company, Tampnet AS, is a Norwegian company operating as an

independent supplier of high capacity and low latency communication to offshore oil and gas

installations in both the Norwegian and United Kingdom (“UK”) parts of the North Sea.

Tampnet AS operates the largest offshore fiber infrastructure network and serves more than one

hundred oil and gas platforms, floating production storage, and offloading units, exploration rigs,

and a large number of vessels in the Norwegian, Danish and UK sector of the North Sea.

Tampnet AS has been awarded spectrum licenses to operate and deploy its 4G/LTE network in

both UK and Norwegian waters and is focused on providing bandwidth services to the industry

through the deployment of multiple LTE base stations offshore in the North Sea. Tampnet AS’

fully deployed 4G/LTE network in the North Sea is an extension of an extensive subsea fiber

optic network.

        Tampnet’s US operations are overseen by the company’s President and CEO, David

Heximer. Mr. Heximer, previously the CEO of AirTap Communications, has over twenty years’

experience in remote telecommunications businesses, including implementation of the design,

construction and maintenance of both onshore and offshore networks utilizing fiber and wireless

transmission technology solutions.4



4
 In addition to his responsibilities at Tampnet, Mr. Heximer serves as Communications Sector Chief and
Vice President of Acadiana Sub-chapter of Infragard Louisiana. InfraGard is a partnership between the
Federal Bureau of Investigation (“FBI”) and the private sector. It is an association of persons (subject
matter experts) who represent businesses, academic institutions, state and local law enforcement agencies
and other participants, dedicated to sharing information and intelligence to prevent hostile acts against the
U.S. It provides a trusted forum for the exchange of knowledge, experience and information related to the
protection of our nation’s critical infrastructure from both physical and cyber threats. InfraGard interacts
with the FBI, the Department of Homeland Security, the US Coast Guard, and other agencies and
organizations. Mr. Heximer also served in the United States Air Force during the Gulf War.

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II.      THE STANDARD OF REVIEW

         Under Section 310(d) of the Communications Act of 1934, as amended (the “Act”), a

license may be transferred or assigned where the Commission finds “that the public interest,

convenience and necessity will be served thereby.”5 This standard involves a balancing process

that weighs the potential public interest benefits of the proposed transaction against any potential

harm.6

         The Commission has determined that applications that demonstrate on their face that a

transaction will yield affirmative public interest benefits and will neither violate the Act or

Commission rules, nor frustrate or undermine policies and enforcement of the Act by reducing

competition or otherwise,7 do not require extensive review and expenditure of considerable



5
 47 U.S.C. § 310(d); see Applications of AT&T Inc. and Dobson Communications Corporation For
Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 22 FCC
Rcd 20295, at ¶ 2 (2007) (“AT&T-Dobson Order”); Applications of Midwest Wireless Holdings, L.L.C.
and Alltel Communications, Inc. For Consent to Transfer Control of Licenses and Authorizations,
Memorandum Opinion and Order, 21 FCC Rcd 11526, 11535 (2006) (“Alltel-Midwest Order”);
Applications of Nextel Communications, Inc. and Sprint Corporation For Consent to Transfer Control of
Licenses and Authorizations, Memorandum Opinion and Order, 20 FCC Rcd 13967, 13976 (2005)
(“Sprint-Nextel Order”); Applications of Western Wireless Corporation and Alltel Corporation For
Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 20 FCC
Rcd 13053, 13062 (2005) (“Alltel-Western Order”); Applications of AT&T Wireless Services, Inc. and
Cingular Wireless Corp. For Consent to Transfer Control of Licenses and Authorizations, Memorandum
Opinion and Order, 19 FCC Rcd 21522, 21542 (2004) (“Cingular-AT&T Wireless Order”); Applications
for Consent to the Assignment of Licenses Pursuant to Section 310(d) of the Communications Act from
NextWave Personal Communications, Inc., Debtor-in-Possession, to Subsidiaries of Cingular Wireless
LLC, Memorandum Opinion and Order, 19 FCC Rcd 2570, 2580 (“Cingular-NextWave Order”).
6
 AT&T-Dobson Order at ¶ 10; Alltel-Midwest Order, 21 FCC Rcd at 11535; Sprint-Nextel Order, 20
FCC Rcd at 13976; Alltel-Western Order, 20 FCC Rcd at 13062-63; Cingular-AT&T Wireless Order, 19
FCC Rcd at 21543; Cingular-NextWave Order, 19 FCC Rcd at 2580-81.
7
 See Applications for Consent to the Transfer of Control of Licenses and Section 214 Authorizations from
Telecommunications, Inc., Transferor to AT&T Corp., Transferee, Memorandum Opinion and Order, 14
FCC Rcd 3160, 3170 (1999); Ameritech Corp., Transferor, and SBC Communications Inc., Transferee,
For Consent to Transfer Control of Corporations Holding Commission Licenses and Lines Pursuant to
Sections 214 and 310(d) of the Communications Act and Parts 5, 22, 24, 25, 63, 90, 95 and 101 of the
Commission’s Rules, Memorandum Opinion and Order, 14 FCC Rcd 14712, at 14740-42 (1999)
(“Ameritech/SBC”).

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resources by the Commission.8 Indeed, many transfer or assignment applications on their face

show that a transaction will yield affirmative public interest benefits and will not violate the

Communications Act or Commission rules, nor frustrate or undermine the policies and

enforcement of the Communications Act by reducing competition or otherwise.9 Such

applications do not require extensive review and expenditures of considerable resources by the

Commission and interested parties.10 This transaction meets this standard and this application

should thus be granted promptly.

          As demonstrated below, this transaction promotes the objectives of the Communications

Act and enhances the Commission’s ability to implement the competition enhancing objectives

of the Act. This transaction will enhance competition, increase investment, and expand the

diversity of competitive providers in the affected markets. The transaction does not harm

competition, or otherwise violate any statute or rule. Accordingly, the Commission should

expeditiously approve the transaction.




8
    See Ameritech/SBC, 14 FCC Rcd at 14740-42.
9
 In re Application of GTE Corp. and Bell Atlantic Corp. for Consent to Transfer Control of Domestic and
Int’l Section 214 and 310 Authorizations and Application to Transfer Control of a Submarine Cable
Landing License, Memorandum Opinion and Order, 15 FCC Rcd. 14,032, 14,048, ¶ 25 (2000) (“GTE/Bell
Atlantic Merger Order”); In re Applications for Consent to the Transfer of Control of Licenses and
Section 214 Authorizations from MediaOne Group, Inc. to AT&T Corp., Memorandum Opinion and
Order, 15 FCC Rcd. 9816, 9822, ¶ 13 (2000) (“MediaOne/AT&T Merger Order”); In re Applications for
Consent to the Transfer of Control of Licenses and Section 214 Authorizations from Tele-Commc’ns, Inc.
to AT&T Corp., Memorandum Opinion and Order, 14 FCC Rcd. 3160, 3170, ¶ 16 (1999) (citing In re
Applications of Bourbeuse Tel. Co. and Fidelity Tel. Co., Memorandum Opinion and Order, 14 FCC Rcd.
803 (1998)); SBC/Ameritech Merger Order, 14 FCC Rcd. at 14,740-41, ¶ 54.
10
  In re Applications for Consent to the Transfer of Control of Licenses and Section 214 Authorizations by
Time Warner Inc. and Am. Online, Inc. to AOL Time Warner Inc., Order, 16 FCC Rcd. 6547, 6557, ¶ 26
(2001); GTE/Bell Atlantic Merger Order, 15 FCC Rcd. at 14,048, ¶ 25; MediaOne/AT&T Merger Order,
15 FCC Rcd. at 9822, ¶ 13; SBC/Ameritech Merger Order, 14 FCC Rcd. at 14,740-41, ¶ 54; see also In re
Petition for Forbearance of the Indep. Tel. & Telecomms. Alliance, Third Memorandum Opinion and
Order, 14 FCC Rcd. 10,816, 10,830-31, ¶ 20 (1999).

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III.    THE TRANSACTION IS IN THE PUBLIC’S INTEREST AND WILL PROMOTE
        THE COMMISSION’S OBJECTIVES OF ENHANCING COMPETITION AND
        INVESTMENT IN WIRELESS BROADBAND NETWORKS

        A.       The Proposed Transaction Serves the Public Interest

        The Commission’s approval of the proposed transaction will promote the public interest.

The proposed transaction will enable Tampnet to utilize the FCC Licenses to invest in network

facilities necessary to deploy a 4G/LTE network in the Gulf of Mexico. Upon close of the

transaction Tampnet will aggressively upgrade the existing 2G network and deploy a Gulf-wide

4G/LTE network that will permit Tampnet to offer robust and reliable 4G service to the oil and

gas industry, its resellers and its roaming partners in this market.

        In so doing Tampnet will be able to provide the industry with the latest high capacity and

low latency 4G-technology in the same manner as its’ parent company, Tampnet AS, provides

such benefits to members of the oil and gas exploration and production industry in the North Sea.

Tampnet’s parent company, Tampnet AS, is already operating the world’s largest 4G/LTE

network serving the oil and gas industry in the North Sea. As such, Tampnet can leverage that

operational experience and network deployment expertise to deploy and operate a high-capacity

network infrastructure in a harsh offshore environment like the Gulf. The Commission has

recognized that foreign investment has been and will continue to be an important source of

financing for U.S. telecommunications companies, fostering technical innovation, economic

growth, and job creation.11

        Grant of this application will permit Tampnet to provide a variety of innovative wireless

products and services in the Gulf of Mexico to serve the unique needs of customers in that area.

Most notably, Tampnet is planning to deploy an offshore 4G/LTE network in the Gulf of Mexico

11
  See Review of Foreign Ownership Policies for Common Carrier and Aeronautical Radio Licensees
under Section 310(b)(4) of the Communications Act of 1934, as Amended, Second Report and Order, 28
FCC Rcd 5741 at 5744 (2013) (“2013 Foreign Ownership Order”).

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that will yield higher capacity and lower latency network infrastructure to benefit users in the

Gulf, a clear improvement over the existing 2G network infrastructure in this market. Tampnet

will leverage the 4G/LTE network to deliver to subscribers to a suite of voice and data services

delivered over a more robust network. In addition, Tampnet will enter into long-term roaming

agreements with other telecommunications carriers, thereby enabling such carriers to leverage

the state-of-the art, offshore 4G infrastructure to offer high-capacity and low-latency data and

voice services for the benefit of its customers in the Gulf. Thus, the transaction will permit

Tampnet to compete more effectively with other communications services providers in the Gulf,

thereby enhancing competition and expanded choices for subscribers.

        B.       The Proposed Transaction Creates No Competitive Harm

        The proposed transaction will not reduce actual competition in any meaningful way in the

affected service area. To the contrary, the transaction will “preserv[e] and enhanc[e]

competition.”12 This transaction will preserve competition within the Gulf of Mexico as

Tampnet’s expanded presence in the Gulf of Mexico will effectively replace, and technologically

improve upon, Broadpoint’s operation. Consequently, Tampnet’s acquisition and control of the

FCC Licenses will introduce a new competitor to replace Broadpoint, thereby maintaining

competition in these markets. In addition, Tampnet’s management team is experienced at

deploying and operating high-capacity 4G/LTE networks in offshore areas, and is well-equipped

to maintain Broadpoint’s competitive position in the Gulf of Mexico.

        The proposed transaction will enhance competition by enabling Tampnet to more

effectively compete, while preserving meaningful competition in the affected markets.

Specifically, the transaction will not result in public interest harm in mobile telephony/mobile

12
  AT&T-Dobson Order at ¶ 12; Sprint-Nextel Order, 20 FCC Rcd at 13977; Alltel-Western Order, 20
FCC Rcd at 13064; Cingular-AT&T Wireless Order, 19 FCC Rcd at 21544.

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broadband markets because the transaction is unlikely to raise potential competitors’ costs, or

foreclose the potential entry, expansion, or deployment of advanced mobile broadband

technologies utilizing alternative service platforms to serve this market.13 As such, the proposed

transaction “is unlikely to materially lessen the ability of rival service providers to respond to

any anticompetitive behavior on the part of the combined entity in [these local markets].”14

           The proposed transaction will have no adverse competitive effects. It will neither cause

an overall aggregation of spectrum that would pose an anticompetitive risk nor reduce actual

competition in any meaningful way for a variety of reasons. The proposed transaction will not

cause an aggregation of spectrum that would pose an anticompetitive risk. Upon close of the

transaction Tampnet, through affiliated companies, will not exceed the Commission’s initial

“screen” as a result of this transaction.15

           C. The Proposed Transaction Presents No Foreign Ownership Concerns

           As previously noted, on May 7, 2015, Tampnet filed a petition for declaratory ruling

under Section 310(b)(4) requesting that the Commission issue a declaratory ruling finding that

100 percent indirect foreign ownership of Tampnet Licensee (a wholly-owned subsidiary of

Tampnet) is in the public interest.16 As demonstrated in that petition, the public interest will be

served by the proposed indirect foreign ownership of Tampnet Licensee because it will permit

foreign investment in these markets, which the Commission has recognized is and will continue

to be an important source of financing for U.S. telecommunications companies, fostering

technical innovation, economic growth and job creation.

13
  See, e.g., Applications of Deutsche Telekom AG, T-Mobile USA, Inc., and MetroPCS Communications,
Inc. for Consent to Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order
and Declaratory Ruling, 28 FCC Rcd 2322, ¶ 53 (2013).
14
     Id.
15
     Mobile Spectrum Holdings Order ¶ 251 (adopting a revised screen of 194 megahertz).
16
     See International Bureau File No. ISP-PDR-20150507-00003.

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IV.     CONCLUSION

        As demonstrated above, Tampnet is well-qualified to acquire, control and make

beneficial public use of the spectrum proposed to be assigned to Tampnet’s subsidiary as a result

of this transaction. Also, the proposed transaction does not create any geographic overlap, will

not adversely affect competition in the subject markets and will otherwise serve the public

interest, convenience and necessity. Moreover, the transaction does not involve licenses still

subject to the designated entity rules or implicate a request for a waiver. Indeed, grant of this

application will promote competition and will otherwise serve the public interest, convenience

and necessity. For these reasons, prompt Commission approval of this transaction is warranted.




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Document Created: 2015-08-28 14:12:44
Document Modified: 2015-08-28 14:12:44

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