Federal Communications CommissionDA 26-923
DA 26-923
Released:  August 28, 2026
DOMESTIC SECTION 214 APPLICATION FILED FOR THE ACQUISITION OF CERTAIN ASSETS HELD BY PRAIRIEBURG TELEPHONE COMPANY, INCORPORATED FROM HILLIARY ACQUISITION IOWA, LLC TO 3CS PROPERTIES, LLC

NON-STREAMLINED PLEADING CYCLE ESTABLISHED

WC Docket No. 26-137
Comment Date: September 11, 2026
Reply Comment Date: September 18, 2026

By this Public Notice, the Wireline Competition Bureau seeks comment from interested parties on an application filed by Hilliary Acquisition Iowa, LLC (Hilliary), and 3Cs Properties, LLC (3Cs) (collectively, Applicants) pursuant to section 214(a) of the Communications Act of 1934, as amended, and section 63.04 of the Federal Communications Commission’s (Commission) rules, See 47 U.S.C. § 214(a); 47 CFR § 63.04.
 requesting Commission approval for the transfer of certain assets held by Prairieburg Telephone Company, Incorporated (Prairieburg) from Hilliary to 3Cs. Domestic Section 214 Application Filed for the Acquisition of Certain Assets Held By Prairieburg Telephone Company, Incorporated from Hilliary Acquisition Iowa, LLC to 3Cs Properties, LLC, WC Docket No. 26-137 (filed June. 2, 2026) (Application).  Applicants filed supplements to the Application on July 8, 2026, and August 17, 2026.  Letter from John C. Pietila, Counsel for 3Cs Properties, LLC, and Robert A. Silverman, Counsel for Hilliary Acquisition Iowa, LLC, to Marlene H. Dortch, Secretary, FCC, WC docket No. 26-137 (filed July 8, 2026) (July 8 Supplement); Letter from John C. Pietila, Counsel for 3Cs Properties, LLC, and Robert A. Silverman, Counsel for Hilliary Acquisition Iowa, LLC, to Marlene H. Dortch, Secretary, FCC, WC docket No. 26-137 (filed Aug. 17, 2026) (Aug. 17 Supplement).  Any action on this domestic section 214 application is without prejudice to Commission action on other related, pending applications.

Prairieburg, a privately held Iowa corporation, is a rural incumbent local exchange carrier (LEC) that provides local exchange telephone services to approximately 200 access lines in the Prairieburg exchange in Linn County, Iowa. Application at 2.  Applicants state that Prairieburg is designated as an eligible telecommunications carrier (ETC) and receives Connect America Fund-Broadband Loop Support (CAF-BLS), high-cost loop support (HCL) and CAF Inter carrier Compensation (CAF-ICC) support.  Id. at 5; July 8 Supplement at 1.  Prairieburg participates in the Lifeline program.  Aug. 17 Supplement at 1.  
  Hilliary, an Oklahoma limited liability company, is a holding company and the parent of Prairieburg. Application at 2.
  Hilliary does not itself offer domestic telecommunications services, but, through its operating affiliates, owns and operates a fiber network and is engaged in the business of marketing, selling and providing fiber-based and fixed wireless broadband and telecommunications services in and around the Prairieburg, Iowa local exchange area. Id. at 2-3.  Applicants state that Hilliary is affiliated with multiple entities providing domestic telecommunications services, several of which receive universal service high-cost support.  Id. at 3, 5-6, 10-14.
  Hilliary is owned in equal parts by the following U.S. citizens: Edward E. Hilliary, Jr., Dustin J. Hilliary, Michael J. Hilliary, and Douglas J. Hilliary (each holding a 25 percent membership interest). Id.

3Cs, an Iowa limited liability, is a holding company and a wholly-owned subsidiary of Cascade Communications Company (Cascade), an Iowa corporation. Id. at 4. 
  Cascade is an incumbent LEC serving approximately 570 access lines and provides local exchange telephone services and other services in the Cascade and Otter Creek local exchanges in Iowa. Applicants state that Cascade is designated as an ETC and receives CAF-BLS, HCL and CAF-ICC support for its incumbent LEC services and participates in the Lifeline program in Iowa.  Id. at 3, 4.
  Cascade also operates as a competitive LEC in the Monticello exchange in Iowa. Id. at 4. 
  Applicants state that Cascade does not have any 10 percent or greater affiliates that provide domestic telecommunications services. Aug. 17 Supplement at 1.
  Jim Conlin, a U.S. citizen and local subscriber of Cascade, is the only 10 percent or greater interest holder in Cascade (10.4% interest). Application at 14-15.  Applicants state that Mr. Conlin is not affiliated with any other domestic telecommunications provider.  Id. at 15.
 
Pursuant to the terms of the asset purchase agreement, Hilliary will transfer all of Prairieburg’s contracts and related network assets, including customer accounts and contracts, fiber, and other telecommunications equipment to 3Cs. Id. at 1, 7.
  Applicants state that the proposed transaction will be seamless to PTCI’s customers, and immediately following the assignment, 3Cs and its parent Cascade will continue to provide customers with same or better services with the same rates and terms. Id. at 7.  Applicants state that there is an adjacency among the incumbent LEC exchange served by Prairieburg and the Monticello exchange where Cascade provides competitive LEC services, but states that the Applicants are not aware of any shared or overlap locations between Prairieburg and Cascade.  Id. at 4.
  
Applicants assert that a grant of the Application would serve the public interest, convenience, and necessity. Id. at 11-16.
  Because the proposed transaction would involve the exchange and assumption of Universal Service Fund high-cost mechanism obligations, in order to sufficiently analyze whether the proposed transaction would serve the public interest, we accept the Application for non-streamlined processing. See 47 CFR § 63.03(c)(1)(v). 

Domestic Section 214 Application Filed for the Acquisition of Certain Assets Held by
Prairieburg Telephone Company, Incorporated from Hilliary Acquisition Iowa, LLC to
3Cs Properties, LLC, WC Docket No. 26-137 (filed June. 2, 2026).

GENERAL INFORMATION
The Application identified herein has been found, upon initial review, to be acceptable for filing.  The Commission reserves the right to return any application if, upon further examination, it is determined to be defective and not in conformance with the Commission’s rules and policies.
Interested parties may file comments and reply comments on or before the dates indicated on the first page of this document.  Comments may be filed using the Commission’s Electronic Comment Filing System (ECFS).
· Electronic Filers:  Comments may be filed electronically using the Internet by accessing the ECFS:  https://www.fcc.gov/ecfs/.
· Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing.
· Filings can be sent by hand or messenger delivery, by commercial courier, or by the U.S. Postal Service.  All filings must be addressed to the Secretary, Federal Communications Commission.
· Hand-delivered or messenger-delivered paper filings for the Commission’s Secretary are accepted between 8:00 a.m. and 4:00 p.m. by the FCC’s mailing contractor at 9050 Junction Drive, Annapolis Junction, MD 20701.  All hand deliveries must be held together with rubber bands or fasteners.  Any envelopes and boxes must be disposed of before entering the building.  
· Commercial courier deliveries (any deliveries not by the U.S. Postal Service) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701.
· Filings sent by U.S. Postal Service First-Class Mail, Priority Mail, and Priority Mail Express must be sent to 45 L Street NE, Washington, DC 20554.
People with Disabilities:  To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530.
In addition, e-mail one copy of each pleading to each of the following:
1. Dennis Johnson, Competition Policy Division, Wireline Competition Bureau, dennis.johnson@fcc.gov; 
2. Audra Hale-Maddox, Telecommunications Access and Policy Division, Wireline Competition Bureau, audra.hale-maddox@fcc.gov;
3. Brenda Villanueava, Office of International Affairs, brenda.villanueva@fcc.gov; and 
4. Jim Bird, Office of General Counsel, jim.bird@fcc.gov.
The proceeding in this Notice shall be treated as a “permit-but-disclose” proceeding in accordance with the Commission’s ex parte rules.  Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies).  Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation.  If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter’s written comments, memoranda or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum.  Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with rule 1.1206(b), 47 CFR § 1.1206(b).  Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules.
To allow the Commission to consider fully all substantive issues regarding the Application in as timely and efficient a manner as possible, petitioners and commenters should raise all issues in their initial filings.  New issues may not be raised in responses or replies. See 47 CFR § 1.45(c).
  A party or interested person seeking to raise a new issue after the pleading cycle has closed must show good cause why it was not possible for it to have raised the issue previously.  Submissions after the pleading cycle has closed that seek to raise new issues based on new facts or newly discovered facts should be filed within 15 days after such facts are discovered.  Absent such a showing of good cause, any issues not timely raised may be disregarded by the Commission.  
For further information, please contact Dennis Johnson, Competition Policy Division, Wireline Competition Bureau, at (202) 418-0809.

– FCC –

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