*Pages 1--5 from Microsoft Word - 50696.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- 2227 Released: July 29, 2005 DOMESTIC SECTION 214 APPLICATIONS FILED FOR ACQUISITION OF ASSETS OF PT- 1 COMMUNICATIONS, INC., AND PT- 1 LONG DISTANCE, INC., TO STARTEC GLOBAL OPERATING COMPANY STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 05- 236 Comments Due: August 12, 2005 Reply Comments Due: August 19, 2005 On July 13, 2005, Startec Global Operating Company (“ Startec”), PT- 1 Communications, Inc., and PT- 1 Long Distance, Inc. (collectively, “PT- 1”) (Startec and PT- 1, together, the “Applicants”) filed an application pursuant to sections 63.03 and 63.04 of the Commission’s rules 1 requesting authority for PT- 1 to transfer substantially all of its dial around business assets to Startec. 2 Applicants assert that this transaction is entitled to presumptive streamlined treatment pursuant to sections 63.03( b)( 2)( i) of the Commission’s rules. The proposed transaction would result in the Startec and its affiliates having less than a 10% share of the interstate, interexchange market following the transfer of assets. Startec and its affiliates will also provide services exclusively in geographic areas served by dominant local exchange carriers that are not parties to this transaction. Finally, neither PT- 1 nor Startec is dominant with respect to any service. 3 PT- 1 is composed of PT- 1 Long Distance and PT- 1 Communications, Inc. In addition, PT- 1 Technologies, a wholly owned subsidiary of PT- 1 Communications, Inc., is a party to the asset transfer agreement. PT- 1 Long Distance provides “dial- around” or “10- 10” service to 1 47 C. F. R. §§ 63. 03, 63. 04; see 47 U. S. C. § 214. 2 Applicants are also filing applications for transfer of control associated with authorization for international services. Any action on this domestic 214 application is without prejudice to Commission action on other related, pending applications 3 47 C. F. R. § 63. 03( b)( 2)( i). 1 2 casual users 4 primarily using the carrier access code (“ CAC”) 1016868. 5 PT- 1 Long Distance also has a small number of pre- subscribed customers in some areas (not part of the asset transfer described herein). PT- 1 Communications, Inc., the parent company of PT- 1 Long Distance, does not provide domestic interstate telecommunications service. PT- 1 Technologies does not provide domestic interstate telecommunications services, however, it does provide pre-subscribed interexchange services to a small number of customers. 6 Startec, a Delaware corporation, is a facilities- based provider of communications services, including voice, data and Internet access. Startec is a wholly owned subsidiary of Startec Global Communications Corporation, a Delaware corporation. The issued and outstanding shares of Startec Global Communications Corporation are held by Allied Capital Corporation (“ Allied”) (68.5%), NTFC Capital Corporation (“ NTFC”) (24%), and various other bankruptcy creditors, none of which hold greater than a 1% interest. Allied, a Maryland corporation, is a publicly traded company. No person or entity directly or indirectly owns 10% or more of the equity of Allied. NTFC, a Delaware corporation, is a wholly owned subsidiary of General Electric Capital Corporation (“ GECC”), a Delaware corporation. GECC is a wholly owned subsidiary of General Electric Capital Services, Inc. (“ GECS”), a Delaware corporation. GECS is a wholly owned subsidiary of the General Electric Company, a New York corporation. The General Electric Company is a publicly traded company. No single person or entity has more than a 10% direct or indirect ownership interest in the General Electric Company. Startec is also affiliated with Guam Cable Group, Inc., which provides service in Guam and the Commonwealth of the Northern Marianas Islands. As a result of GECC’s ownership interest in Startec, Startec is also affiliated with other telecommunications companies offering domestic telecommunications services. GECC has approximately an 18% common equity ownership interest in KMC Telecom Holdings, Inc., the parent company of various KMC subsidiaries (KMC Telecom III, Inc., KMC Telecom V, Inc., and KMC Data LLC) that are authorized to provide local and long distance telecommunications services nationwide. Additionally, GECC is the sole member of Indiana Fiber Works LLC, a company that offers dark fiber in Indiana. It is also anticipated that GECC will have approximately a 14% limited voting common equity ownership interest in Choice One 4 The Application defines dial- around users as “casual users” in the sense that (1) they decide on a call- by-call basis whether to use the dial- around service; (ii) they do not have to subscribe in order to take advantage of the service; and (iii) they generally do not receive monthly bills directly from the dial- around provider. (Dial- around calls, if any, are routinely billed through the applicable local exchange carrier.) Thus, the Application argues that PT- 1 does not have customers in the same sense as a traditional long distance company. Application of Startec Global Operating Company and PT- 1 Communications, Inc., PT- 1 Long Distance, Inc. for Domestic Section 214 Authority to Transfer Assets, at 2, n. 4 (filed Jul. 13, 2005) (“ Application”). 5 PT- 1 has three CACs assigned to it by the North American Numbering Plan Administration, including 1016868, all of which are being transferred to Startec pursuant to this proposed transaction. 6 These customers are not among the assets being sold to Startec. PT- 1 Technologies does not provide any interstate telecommunications services and therefore is not a party to this Application. 2 5 In addition, one copy of each pleading must be sent to each of the following: (1) The Commission’s duplicating contractor, Best Copy and Printing, Inc., 445 12th Street, SW, Room CY- B402, Washington, DC 20554, www. bcpiweb. com; phone: (202) 488- 5300 fax: (202) 488- 5563; (2) Tracey Wilson- Parker, Competition Policy Division, Wireline Competition Bureau, 445 12 th Street, S. W., Room 5- C212, Washington, D. C. 20554; email: tracey. wilson- parker@ fcc. gov; (3) Erin Boone, Competition Policy Division, Wireline Competition Bureau, 445 12 th Street, S. W., Room 5- C347 , Washington, D. C. 200554, email: erin. boone@ fcc. gov; (4) Renee R. Crittendon, Competition Policy Division, Wireline Competition Bureau, 445 12 th Street, S. W., Room 5- C311, Washington, D. C. 20554; e- mail: renee. crittendon@ fcc. gov; (5) James Bird, Office of General Counsel, 445 12 th Street, S. W., Room 8- C824, Washington, D. C. 20554; e- mail: james. bird@ fcc. gov. Filings and comments are also available for public inspection and copying during regular business hours at the FCC Reference Information Center, Portals II, 445 12th Street, SW, Room CY- A257, Washington, DC, 20554. They may also be purchased from the Commission’s duplicating contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, SW, Room CY-B402, Washington, DC 20554, telephone: (202) 488- 5300, fax: (202) 488- 5563, or via e- mail www. bcpiweb. com. For further information, please contact Tracey Wilson- Parker, at (202) 418- 1394, or Erin Boone at (202) 418- 0064. - FCC - 5