*Pages 1--5 from Microsoft Word - 50762.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- 2252 Released: August 3, 2005 DOMESTIC SECTION 214 APPLICATION FILED FOR TRANSFER OF CONTROL OF SUPRA TELECOMMUNICATIONS AND INFORMATION SYSTEMS, INC. TO FDN SUPRA, LLC STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 05- 207 Comments Due: August 17, 2005 Reply Comments Due: August 24, 2005 On June 1, 2005, Supra Telecommunications and Information Systems, Inc. (“ Supra”) and FDN Supra, LLC (“ FDN Supra”) (collectively, “Applicants”), filed an application, pursuant to section 63.03 and 63.04 of the Commission’s rules. 1 Supra is currently 51 percent owned by H. I. G. Supra, LLC (“ H. I. G. Supra”) and 49 percent owned by FDN Supra. The applicants request authority to approve a transfer control wherein FDN Supra will increase its ownership interest in Supra from 49 percent to 50 percent. 2 Applicants assert that this transaction is entitled to presumptive streamlined treatment pursuant to section 63.03( b)( 2)( i) of the Commission’s rules because following the transaction (1) Applicants and their affiliates combined will hold less than a ten percent (10%) share of the interstate, interexchange market; (2) Applicants and their affiliates will provide local exchange service only in areas served by a dominant local exchange carrier (none of which are parties to the proposed transactions) and; (3) none of the Applicants or their Affiliates is dominant with respect to any telecommunications service. 3 Supra, a Florida corporation, is a facilities- based national Alternative Local Exchange Carrier targeting the consumer market. Supra holds domestic and international Section 214 authority and is licensed to provide local and/ or long distance competitive telecommunications services in California, Colorado, Florida, Georgia, Illinois, New York and Texas. Supra currently provides competitive local 1 47 C. F. R §§ 63.03, 63.04; see 47 U. S. C. § 214. 2 Applicants are also filing an application for consent to transfer 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 and long distance services in New York and Florida to residential customers. All of the services provided by Supra and its affiliates are competitive in nature, and neither Supra nor any of its affiliates holds a dominant position in any market. H. I. G. Supra does not provide telecommunications services. H. I. G. Supra is affiliated with T-Netix Communications Services, Inc. and Evercom Systems, Inc. All of the services provided by T- Netix Communications Services, Inc. and Evercom Systems, Inc. are competitive in nature, and neither H. I. G. Supra nor any of its affiliates holds a dominant position in any market. The following entities directly own or control 10% or more of the equity of H. I. G. Supra: H. I. G. Supra, Inc. (76%), a Cayman Island corporation and Alexander Enterprise Holdings Corp. (19%) (“ Alexander Enterprise”), a British Virgin Islands investment firm. The following entities indirectly own or control 10% or more of the equity of H. I. G. Supra: H. I. G. Capital Partners III, L. P. (“ H. I. G. Capital”), a Delaware limited partnership (68%); H. I. G. Advisors III, LLC (“ H. I. G. Advisors”), a Delaware limited liability company (68%); 4 Anthony Tamer, a U. S. citizen (50%); Kactus Investment Corporation, a Cayman Islands corporation (40%); Sami Mnaymneh, a U. S. citizen (50%); Smai Mnaymneh 2002 Children’s Trust, a U. S. trust (40%); Tamer Family Trust, a U. S. trust (40%); Berggruen Holdings Ltd, a British Virgin Islands company (19%); Tarragona A Trust, a British Virgin Islands trust (19%); and the Maitland Trustees Limited, a British Virgin Islands trust (19%). FDN Supra, a Delaware limited liability company, was established as a holding company and does not provide telecommunications services. FDN Supra is wholly owned by Florida Digital Networks, Inc. d/ b/ a/ FDN Communications (“ FDN”), a U. S. corporation and a competitive local exchange carrier in the state of Florida. FDN, through its subsidiary, Southern Digital Network, Inc. d/ b/ a/ FDN Communications (“ SDN”), a Delaware corporation, (FDN and SDN together, “FDN Communications”) provides competitive local exchange and interexchange services in Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee. The services provided by FDN Communications are competitive in nature and neither FDN nor SDN holds a dominant position in any market. The following entities indirectly own or control ten percent (10%) or more of the equity of FDN Supra: M/ C Venture Partners V, L. P. (“ MCVP V”), a U. S. limited partnership (49%); M/ C VP V, LLC, a U. S. investment limited liability company (49%) as General Partner of MCVP V; 5 Centennial Ventures VII, L. P. (“ Centennial VII”), a U. S. limited partnership (12.7%); Centennial Holding VII, LLC, a U. S. investment limited liability company (12.85%) as General Partner of Centennial VII and another intervening fund; 6 and Columbia Capital III, LLC (“ CC III”), a U. S. limited liability company (12.85%). 7 4 No limited partner has a 10% or greater interest in H. I. G. Capital. 5 The Applicants state that the limited partners of MCVP V (and affiliated funds) consist of institutional and other investors and none of the limited partners in these entities hold directly or indirectly 10% or more of the equity of FDN Supra. M/ C VP V, LLC is managed and controlled by individuals, all of whom are U. S. citizens: James F. Wade, David D. Croll, and Peter H. O. Claudy, U. S. citizens ( approximately 59.29%) as Managers of M/ C VP V, LLC and other funds. These individuals also indirectly control other affiliated funds that hold the following interests in FDN: Media/ Communications Partners III Limited Partnership (6.63%), Chestnut Venture Partners, L. P. (2.45%) and M/ C/ Investors LLC (0.81%) Matthew J. Rubins, a U. S. citizen, also owns an indirect (approximate 49%) as Manager of M/ C VP V, LLC. 6 The application indicates that the limited partners of Centennial VII consist of institutional and other investors and none of the limited partners in these entities hold 10% or more of the equity of FDN Supra. No 2 5 (3) Denise Coca, Competition Policy Division, Wireline Competition Bureau, 445 12 th Street, S. W., Room 5- C260, Washington, D. C. 200554, email: denise. coca@ 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 Denise Coca at (202) 418- 0574. - FCC - 5