*Pages 1--4 from Microsoft Word - 56463.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- 866 Released: April 14, 2006 DOMESTIC SECTION 214 APPLICATION FILED FOR THE TRANSFER OF CONTROL OF MONTEZUMA MUTUAL TELEPHONE COMPANY TO IOWA TELECOMMUNICATIONS SERVICES, INC. NON- STREAMLINED PLEADING CYCLE ESTABLISHED WC Docket No. 06- 76 Comments Due: April 28, 2006 Reply Comments Due: May 5, 2006 On February 27, 2006, Montezuma Mutual Telephone Company (“ Montezuma”) and Iowa Telecommunications Services, Inc. (“ Iowa Telecom”) (collectively, the “Applicants”), filed an application, pursuant to sections 63.03 and 63.04 of the Commission’s rules, 1 requesting authority to transfer control of Montezuma to Iowa Telecom. Applicants, which are both incumbent local exchange carriers (“ LECs”) with adjacent exchanges, do not request presumptive streamlined treatment for this Application under section 63.03 of the Commission’s rules. 2 Montezuma’s incumbent Deep River, Iowa exchange is adjacent to Iowa Telecom’s What Cheer, Iowa exchange. In addition, Montezuma’s incumbent Montezuma, Iowa- exchange is adjacent to Iowa Telecom’s Grinnell, Malcolm, and New Sharon, Iowa exchanges. 3 Because the Applicants have adjacent service areas, this application is not subject to streamlined treatment. 4 Montezuma, an Iowa corporation, is an independent incumbent LEC headquartered in Montezuma, Iowa. Montezuma provides local, interLATA, and intraLATA long distance service, dial- up, and broadband Internet access services to approximately 2,200 rural residential 1 47 C. F. R §§ 63.03, 63.04; see 47 U. S. C. § 214. 2 47 C. F. R. § 63.03. 3 47 C. F. R. § 63. 03( b)( 2)( iii). 4 See 47 C. F. R. §§ 63. 03( b)( 2)( iii), 63. 03( b)( 3), and 63. 03( c)( 1); Implementation of Further Streamlining Measures for Domestic Section 214 Authorizations, 17 FCC Rcd 5517, 5534 (2002), para. 32. 1 2 and business customers. Montezuma is 60.33% owned by an individual, M. B. McFarlin, a U. S citizen, who holds 108 of the total 179 shares of Montezuma and 11.2% by an individual, Francis E. Freeborn, a U. S. citizen, who holds 20 of Montezuma’s outstanding shares. No other individual or company owns directly or indirectly 10% of more of the equity of Montezuma. Iowa Telecom, an Iowa corporation, is an independent incumbent LEC headquartered in Newton, Iowa. Iowa Telecom currently provides local exchange and exchange access service and dial- up and broadband services to residential and business customers in 294 exchanges widely distributed throughout the State of Iowa, comprising a total of approximately 240,500 access lines. Iowa Telecom’s competitive LEC affiliate, Iowa Telecom Communications, Inc., provides local exchange and exchange access service and dial- up and broadband Internet access services to residential and business customers in 18 exchanges widely distributed throughout the State of Iowa, comprising a total of approximately 20,200 access lines. Iowa Telecom’s competitive LEC affiliate, IT Communications, LLC, just began offering local exchange and exchange access service and dial- up and broadband Internet access services to residential and business customers in the Iowa City, Iowa market in January 2006. Iowa Telecom is 10.40% owned by Pine Island Capital Corporation, a U. S. corporation whose principal business is investments. Pine Island Capital Corporation is 100% owned by Iowa Network Services, Inc., a U. S. corporation whose principal business is telecommunications. No individual entity owns 10% or more of Iowa Network Services, Inc. No individual entity other than Pine Island Capital Corporation or Iowa Network Services, Inc. directly or indirectly owns 10% or more of Iowa Telecommunications Services, Inc. The Applicants entered into an Agreement and Plan of Merger on December 11, 2005 (“ Agreement”) in which Montezuma agreed to transfer its customer base and assets to Iowa Telecom. In accordance with the Agreement, IWA MC, Inc., a wholly owned subsidiary of Iowa Telecom, will be merged with Montezuma, and Montezuma will be the surviving corporation in the merger. Following the merger, Iowa Telecom will own all of the outstanding capital stock of Montezuma. Montezuma operates as an average schedule company, and Iowa Telecom intends to operate the two companies on a non- integrated basis after the acquisition. Post-consummation, Iowa Telecom will continue to offer the services currently offered to Montezuma customers. Applicants state that the proposed transaction will serve the public interest because Montezuma’s customers will be served by an experienced rural provider. Applicants also maintain that customers will not experience any changes or interruption of service and will continue to receive their current service at the same rates. 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 2