*Pages 1--5 from Microsoft Word - 59089.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 06- 1638 Released: August 14, 2006 DOMESTIC SECTION 214 APPLICATION FILED FOR THE ACQUISITION OF CERTAIN ASSETS OF ACCERIS MANAGEMENT AND ACQUISITION LLC BY FIRST COMMUNICATIONS, LLC STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 06- 145 Comments Due: August 28, 2006 Reply Comments Due: September 5, 2006 On July 18, 2006, Acceris Management and Acquisition LLC (“ Acceris”) 1 and First Communications, LLC (“ First Communications”) (together, the “Applicants”) filed an application, pursuant to section 63.04 of the Commission’s rules, 2 seeking authority to transfer certain assets of Acceris to First Communications. 3 Applicants submit that this transaction is entitled to presumptive streamlined treatment under 63.03( b)( 2)( i) of the Commission’s rules because, following the consummation of the proposed transaction: (1) First Communications (including their affiliates) will have a market share in the interstate, interexchange market of less than ten percent (10%); (2) First Communications (including their affiliates) will provide competitive telephone exchange services or exchange access services (if at all) exclusively in geographic areas served by a dominant local exchange carrier that is not a party to the transaction; and (3) neither First Communications nor Acceris nor any affiliate of either company is dominant with respect to any service it provides. 4 1 Acceris also conducts business as Acceris Communications or WorldxChange. 2 47 C. F. R § 63.04; see 47 U. S. C. § 214. 3 Applicants are also filing an application 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. The Applicants filed two supplements to their original application. See Letter from Melissa Conway, Counsel, Kelley Drye & Warren, to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket No. 06- 145 (filed Aug. 10, 2006 and Aug. 11, 2006). 4 47 C. F. R. § 63.03( b)( 2)( i). 1 2 Acceris, a Minnesota limited liability company, is a broad based communications company, serving residential, small and medium- sized business and large enterprise customers throughout the United States. 5 Acceris is authorized to provide long distance telecommunications services in the contiguous 48 states, Hawaii, and the District of Columbia. In addition, Acceris is authorized to provide long distance and competitive local exchange telecommunications services in Pennsylvania, New York, New Jersey, Florida, and Massachusetts, and also holds authorization to provide interstate and international telecommunications. Acceris is a direct, wholly owned subsidiary of North Central Equity LLC (“ North Central”), a privately held Minnesota holding company established in 2004. North Central is 52.6% owned by Elam Baer, a U. S. citizen, whose principal business is investment. No other entity holds a 10% or greater equity interest in North Central. First Communications, an Ohio limited liability company, is a common carrier that provides local, private line and long distance services to both business and residential customers in several states in the U. S. First Communications provides telecommunications services to approximately 100,000 customers, located primarily in Ohio, Michigan, Indiana, Illinois, Pennsylvania, and Florida. 6 The following U. S. entities hold a 10% or greater equity interest in First Communications: McKinley Communications, LLC, (“ McKinley”) (51%); First Energy Corp. (“ First Energy”) (31.85%); and Boich Investment Group, Ltd. (“ Boich”) (17.15%). McKinley is 80% owned by Marbel Investments, LLC (“ Marbel”), a U. S. limited liability company. Marbel is, in turn, owned in equal shares by the following U. S. citizens: Marsh Belden, Timothy Belden, Susan Belden, and Katherine Belden. No shareholder in First Energy holds a 10 percent or greater ownership interest in First Communications. Boich is owned entirely by Wayne Boich, Sr., a U. S. citizen, whose principal business is coal. Pursuant to the terms of an Asset Purchase Agreement dated July 11, 2006 between First Communications and Acceris, First Communications will acquire certain assets of Acceris relating to its enterprise business (“ Business”). The Applicants request that the Commission approve the transfer of these assets, including personal property such as equipment and switches, customer contracts, and working capital (including accounts receivable), to First Communications. The Applicants note that First Communications already holds authority under Section 214 of the Act to provide domestic and international telecommunications services. 5 Acceris has one affiliate, New Access Communications LLC (New Access) that offers domestic local and long distance telecommunications services. New Access is authorized to provide local service primarily in the Qwest territories and long distance resale services virtually nationwide. 6 First Communications’ telecommunications services include, in addition to traditional local and long distance services, toll- free services, conference calling packages, calling cards, prepaid calling cards, Internet access, and dedicated and private line services and these services are provided primarily on a resale basis using facilities and switches that are owned and operated by other telecommunications carriers. First Communications is authorized to provide intrastate long distance telecommunications services in California, Florida, and Kentucky, and is authorized to provide intrastate long distance and competitive local exchange telecommunications services in Illinois, Indiana, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Wisconsin. Applicants state that First Communications has no affiliates that offer domestic telecommunications services. 2 5 (4) Susan O’Connell, Policy Division, International Bureau, 445 12th Street, S. W., Room 7- B544, Washington, D. C. 20554; email: susan. o’connell@ fcc. gov; and (5) Jim Bird, Office of General Counsel, 445 12th Street, S. W., Room 8- C824, Washington, D. C. 20554; e- mail: jim. 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, S. W., Room CY- A257, Washington, D. C. 20554. They may also be purchased from the Commission’s duplicating contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, S. W., Room CYB402, Washington, D. C. 20554, telephone: (202) 488- 5300, fax: (202) 488- 5563, or via e-mail www. bcpiweb. com. For further information, please contact Cecilia Seppings at (202) 418- 1588, or Denise Coca at (202) 418- 0574. - FCC - 5