*Pages 1--5 from Microsoft Word - 53536.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- 3114 Released: November 29, 2005 DOMESTIC SECTION 214 APPLICATION FILED FOR TRANSFER OF CONTROL OF THE LOCAL EXCHANGE ASSETS OF UNITED TELEPHONE COMPANY OF KANSAS AND UNITED TELEPHONE COMPANY OF EASTERN KANSAS TO TWIN VALLEY TELEPHONE, INC. NON- STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 05- 308 TWIN VALLEY TELEPHONE, INC., UNITED TELEPHONE COMPANY OF KANSAS AND UNITED TELEPHONE COMPANY OF EASTERN KANSAS SEEK WAIVER OF THE STUDY AREA BOUNDARY FREEZE AS CODIFIED IN PART 36 AND WAIVER OF SECTION 69.3( e)( 11) CC Docket No. 96- 45 TWIN VALLEY PETITIONS FOR CLARIFICATION OR SEEKS WAIVER OF SECTION 54.305 OF THE COMMISSION’S RULES CC Docket No. 96- 45 Comments Due: December 13, 2005 Reply Comments Due: December 20, 2005 On October 3, 2005, The United Telephone Company of Kansas and the United Telephone Company of Eastern Kansas (together “United”) and Twin Valley Telephone, Inc. (“ Twin Valley”) (collectively, “Applicants”) filed an application, pursuant to sections 63.03 and 63.04 of the Commission’s rules, 1 seeking approval to transfer control of the assets used to provide local exchange telecommunications services in United’s Aurora, Clifton, Clyde, Delphos, Galsco, Green, Leonardville, Longford, Milford, Morganville, Olsburg, Riley, and Wakefield exchanges in Kansas. On October 26, 2005, Twin Valley and United filed a joint petition for waiver of the study area boundary freeze as codified in the Appendix- Glossary of Part 36 of the Commission’s rules and, in the same filing, Twin Valley also seeks a waiver of section 69.3( e)( 11) of the Commission’s rules in order to allow it to continue to use the National Exchange Carrier Association (NECA) as its tariff pool administrator 1 47 C. F. R §§ 63.03, 63.04; see also 47 U. S. C. § 214. 1 2 (Petition). 2 Also, on October 26, 2005, Twin Valley filed a separate petition for clarification or a waiver of section 54.305 of the Commission’s rules regarding the determination of the level of universal service support after completion of the transaction with United (Section 54.305 Petition). 3 Transfer of Control Application. Applicants assert that this transaction is entitled to presumptive streamlined treatment under section 63.03( b)( 1)( iii) of the Commission’s rules because it involves only the transfer of local exchange assets of an incumbent LEC by means other than an acquisition of corporate control. 4 Since, however, the domestic 214 application is associated with a non- routine request for waiver of the Commission’s rules, it is not subject to streamlined treatment. 5 The United companies, organized under Kansas law, provide local exchange, exchange access and intraLATA toll telecommunications services to approximately 5,200 customers in the thirteen exchange areas that are the subject of this proposed transaction and to nearly 117,000 customers throughout Kansas. United’s affiliates provide various telecommunications services to over 40 million customers worldwide. The United companies are wholly- owned subsidiaries of Sprint Nextel Corporation (“ Sprint Nextel”). Sprint Nextel is a publicly traded holding company, organized under Kansas law, for the purpose of engaging in telecommunications and other related businesses through it subsidiaries. No person or corporate entity owns more than a 10 percent share of Sprint Nextel. Twin Valley Telephone, Inc, organized under Kansas law, is a wholly- owned subsidiary of Twin Valley Management Inc. Twin Valley currently provides local exchange, exchange access, interexchange service, DSL, ISP and video services to approximately 2,200 subscribers in Kansas. The owners of 10% or more of the equity of Twin Valley Management Inc. are as follows: Peggy S. Foster, a U. S. citizen, 25.3% 6 ; Michael J. Foster, a U. S. citizen, 18.0%; Penny L Gisselbeck, a U. S. citizen, 18.0%; and John G. Foster Trust #2, 23.5%. The trustees of the John G. Foster Trust #2 are Michael J. Foster, Penny L. Gisselbeck, and Dale A. Bradley, all U. S. citizens. The Applicants have entered into an agreement under which United will sell to Twin Valley the local exchange assets and customer base in the thirteen exchanges listed above. 7 The Applicants assert that the proposed transaction will serve the public interest. Twin Valley states that it provides telecommunications services to residents in the exchanges adjacent to, or in close proximity to, the thirteen United exchanges to be transferred in this proposed transaction. By acquiring United’s exchanges, Twin Valley states that it should be able to achieve better economies of scale, thereby allowing it to realize significant cost savings in the provision of telecommunications services to the residents in its own exchanges as well as those in the thirteen United exchanges to be acquired. 2 47 C. F. R. §§ 36, App. (defining “study area”), 69.3( e)( 11). 3 47 C. F. R. § 54.305. 4 47 C. F. R. § 63. 03( b)( 1)( iii). 5 See 47 C. F. R. § 63.03( c)( 1)( i). 6 The interest of Peggy S. Foster, Michael J. Foster, and Penny Gisselbeck will each increase by less than 1% before the end of 2005. 7 United has notified its subscribers in the affected exchanges of the sale and pending transfer. 2 5 (6) 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 regarding the transfer of control application, please contact Tracey Wilson- Parker, at (202) 418- 1394, or Kimberly Jackson at (202) 418- 7393. For information regarding the study area waiver, the Part 69 waiver, or the Section 54.305 Petition, please contact Gary Seigel at (202) 418- 0879. - FCC - 5