*Pages 1--4 from Microsoft Word - 50581.doc* PUBLIC NOTICE Federal Communications Commission 445 12 th Street, S. W. Washington, D. C. 20554 News Media Information 202 / 418- 0500 Fax- On- Demand 202 / 418- 2830 TTY 202 / 418- 2555 Internet: http:// www. fcc. gov ftp. fcc. gov DA 05- 2183 Released: July 27, 2005 DOMESTIC SECTION 214 APPLICATIONS FILED FOR ACQUISITION OF ASSETS OF ACCERIS COMMUNICATIONS CORPORATION TO ACCERIS MANAGEMENT AND ACQUISITION LLC STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 05- 227 Comments Due: August 10, 2005 Reply Comments Due: August 17, 2005 On July 1, 2005, Acceris Management and Acquisition LLC (“ ACCERIS” or “Transferee”) and Acceris Communications Corp. (“ ACC or “Transferor”) (together “Applicants”), filed an application pursuant to sections 63.03 and 63.04 of the Commission’s rules 1 requesting authority to enable ACCERIS to acquire the local exchange and interstate, interexchange customer base of ACC. Applicants assert that this transaction is entitled to presumptive streamlined treatment pursuant to sections 63.03( b)( 2)( i) of the Commission’s rules because immediately following the transaction: (1) ACCERIS will hold less than a ten percent (10%) share of the interstate, interexchange market; (2) ACCERIS will provide local exchange service only in areas served by dominant local exchange carriers (none of which is a party to the proposed transaction) and; (3) none of the Applicants or their Affiliates is dominant with respect to any service. 2 ACC is a corporation organized under the laws of the State of Delaware, and is a wholly owned subsidiary of Acceris Communications, Inc. ACC is authorized to provide domestic interstate and international telecommunications service. ACC is currently providing, intrastate, interexchange telecommunications services in the contiguous 48 states, Hawaii and the District of Columbia. ACC is also authorized to provide competitive local exchange services in 32 states and is currently providing such service in Florida, Massachusetts, New Jersey, New York, and Pennsylvania. 1 47 C. F. R. §§ 63. 03, 63. 04; see 47 U. S. C. § 214. 2 47 C. F. R. § 63. 03( b)( 2)( i). 1 2 ACCERIS is a limited liability company organized under the laws of the State of Minnesota, and is wholly owned subsidiary of North Central Equity, LLC (the Buyer’s Guarantor, hereinafter “NCE”). NCE is a privately owned holding company organized under the laws of Minnesota, with experience in the telecommunications industry. Mr. Elam Baer, a U. S. Citizen, is the CEO and 56.4 percent equity holder of NCE. No other entity or individual, either directly or indirectly, owns more than ten percent or more of equity in NCE. ACCERIS is not currently authorized to provide telecommunications services in any jurisdiction, but is in the process of obtaining authority to provide interexchange and/ or local exchange telecommunications services throughout the United States. In states where ACCERIS has not yet secured the necessary licenses to provide service, it will service transferred customers pursuant to a pre- existing transitional Management Agreement with ACC. The Applicants have entered into an Asset Purchase Agreement whereby ACCERIS will acquire ACC’s entire local and long distance customer base. As a result of the proposed transaction, ACCERIS will become the local exchange and long distance provider of the transferred customer base and ACC will cease providing local exchange and long distance services. The proposed transfer is subject to certain state required certifications and/ or approvals. Following the transfer, ACCERIS will provide local exchange and long distance service under the same rates, terms and conditions provided by ACC. Applicants state that the proposed transaction will serve the public interest by ensuring no interruption of service or inconvenience to the affected customers, and the affected customers will receive the same local service and long distance rates based by the support services of ACCERIS, a growing and highly competitive carrier. Because ACCERIS will provide local exchange and long distance service to ACC’s customers at the same rates, terms and conditions of service as they currently receive from ACC, the proposed transaction will be virtually transparent to ACC local and long distance customers in terms of the service they receive. Moreover, Applicants have provided written notice to the customers of the proposed transaction to ensure that those customers will understand how the proposed change in service providers will affect them. Service to these customers will not be transferred until the requisite regulatory approvals have been obtained. In addition, in accordance with the Commission’s rules under section 64.1120( e), ACCERIS has filed with the Commission the required notice and certification. GENERAL INFORMATION The transfer of control identified herein has been found, upon initial review, to be acceptable for filing as a streamlined application. The Commission reserves the right to return any transfer of control application if, upon further examination, it is determined to be defective and not in conformance with the Commission’s rules and policies. Pursuant to sections 1.415 and 1.419 of the Commission’s rules, 47 CFR §§ 1.415, 1.419, interested parties may file comments on or before August 10, 2005 and reply comments on or before August 17, 2005. 3 3 See 47 C. F. R. § 63. 03( a). 2