*Pages 1--4 from Microsoft Word - 53718.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- 3187 Released: December 14, 2005 DOMESTIC SECTION 214 APPLICATION FILED FOR TRANSFER OF CONTROL OF LAUREL TELEPHONE COMPANY, INC. TO HEART OF IOWA COMMUNICATIONS COOPERATIVE NON- STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 05- 329 Comments Due: December 28, 2005 Reply Comments Due: January 4, 2006 On November 22, 2005, Laurel Telephone Company, Inc. (“ Laurel” or “Transferor”) and Heart of Iowa Communications Cooperative (“ Heart of Iowa” or “Transferee”) (collectively the “Applicants”), filed an application, pursuant to sections 63.03 and 63.04 of the Commission’s rules, 1 seeking authority to transfer control of Laurel to Heart of Iowa. The Applicants request streamlined treatment on a case- by- case basis although Heart of Iowa and Laurel have adjacent service areas. 2 The Applicants argue that streamlined treatment would be consistent with the purposes of the streamlined procedures for two reasons. First, the Applicants state that Laurel serves only 306 access lines and is currently under common management with Heart of Iowa. Secondly, the Applicants argue that any increase in concentration in the industry will be entirely de minimis. Since, however, Laurel has one exchange that is adjacent to two Heart of Iowa exchanges, we reject the Applicants’ arguments and conclude that the application is not eligible for streamlined treatment. 3 Heart of Iowa, an Iowa cooperative corporation, provides local exchange and exchange 1 47 C. F. R §§ 63.03, 63.04; see 47 U. S. C. § 214. 2 The Bureau can exercise its discretion to grant requests for streamlined treatment on a case- by-case basis even if a transaction does not fall under any of the presumptive streamlined categories. 3 See 47 C. F. R. § 63. 03( b)( 2)( iii). 1 2 access to eight exchanges in north- central Iowa. 4 No person or entity owns 10% or more of the equity of Heart of Iowa. Laurel, an Iowa corporation, is a local exchange carrier operating in north central Iowa. Laurel’s single exchange is adjacent to two Heart of Iowa exchanges. Two thirds of the shares of Laurel common stock are locally owned. No person or entity owns 10% or more of the equity Laurel. The Applicants entered into a Stock Purchase Agreement (“ Agreement”) for the transfer of all outstanding common stock of Laurel to Heart of Iowa. Pursuant to the Agreement, Heart of Iowa will become the provider of telecommunications service to Laurel’s subscribers upon completion of the proposed transaction. Upon completion of the proposed transaction, Laurel will be dissolved and its existing customers will become members of Heart of Iowa. Heart of Iowa, which currently manages Laurel under contract, will continue to provide high- quality telecommunications service to Laurel’s subscribers. Applicants state that the proposed transaction serves the public interest because each person in the Laurel exchange who receives service from Heart of Iowa will have all the rights and privileges of a Cooperative member, including voting for a representative to the Board of Directors of Heart of Iowa and eligibility for capital that may be allocated. Furthermore, the Applicants assert that due to rapidly changing technological, economic and regulatory environment, the subscribers of Laurel will be better served by a larger organization with more resources. GENERAL INFORMATION The transfer of control identified herein has been found, upon initial review, to be acceptable for filing as a non- 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 December 28, 2005 and reply comments on or before January 4, 2006. 5 Comments may be filed using: (1) the Commission’s Electronic Comment Filing System (ECFS), (2) the Federal Government’s eRulemaking Portal, or (3) by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). 4 On May 21, 2004 the Commission authorized Heart of Iowa to acquire three additional exchanges from Iowa Telecommunications Services, Inc. Public Notice, Wireline Competition Bureau Grants Consent for Acquisition of Local Exchange Assets of Iowa Telecom Heart of Iowa. WC Docket No. 03- 249, DA 04- 1449. This proposed transaction has not been consummated, however, because the Commission has yet to act upon the Petition for Waiver of the Definition of Study Area, which was filed simultaneously as the Transfer of Control application. Heart of Iowa continues to provide competitive local exchange service in the three exchanges. 5 See 47 C. F. R. § 63.03( a). 2