§ 63.03   Streamlining procedures for domestic transfer of control applications.

   Any  domestic  carrier  that  seeks  to  transfer  control of lines or
   authorization to operate pursuant to section 214 of the Communications Act
   of 1934, as amended, shall be subject to the following procedures:

   (a)  Public notice and review period. Upon determination by the Common
   Carrier Bureau that the applicants have filed a complete application and
   that the application is appropriate for streamlined treatment, the Common
   Carrier Bureau will issue a public notice stating that the application has
   been accepted for filing as a streamlined application. Unless otherwise
   notified by the Commission, an applicant is permitted to transfer control of
   the domestic lines or authorization to operate on the 31st day after the
   date of public notice listing a domestic section 214 transfer of control
   application as accepted for filing as a streamlined application, but only in
   accordance with the operations proposed in its application. Comments on
   streamlined applications may be filed during the first 14 days following
   public notice, and reply comments may be filed during the first 21 days
   following public notice, unless the public notice specifies a different
   pleading cycle. All comments on streamlined applications shall be filed
   electronically, and shall satisfy such other filing requirements as may be
   specified in the public notice.

   (b) Presumptive streamlined categories. (1) The streamlined procedures
   provided in this rule shall be presumed to apply to all transfer of control
   applications in which:

   (i) Both applicants are non-facilities-based carriers;

   (ii) The transferee is not a telecommunications provider; or

   (iii) The proposed transaction involves only the transfer of the local
   exchange assets of an incumbent LEC by means other than an acquisition of
   corporate control.

   (2) Where a proposed transaction would result in a transferee having a
   market  share  in the interstate, interexchange market of less than 10
   percent, and the transferee would 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, the streamlined procedures provided in this rule shall be
   presumed to apply to transfer of control applications in which:

   (i) Neither of the applicants is dominant with respect to any service;

   (ii) The applicants are a dominant carrier and a non-dominant carrier that
   provides services exclusively outside the geographic area where the dominant
   carrier is dominant; or

   (iii) The applicants are incumbent independent local exchange carriers (as
   defined in § 64.1902 of this chapter) that have, in combination, fewer than
   two (2) percent of the nation's subscriber lines installed in the aggregate
   nationwide, and no overlapping or adjacent service areas.

   (3)  For  purposes  of  (b)(1)  and  (2)  of this paragraph, the terms
   “applicant,” “carrier,” “party,” and “transferee” (and their plural forms)
   include any affiliates of such entities within the meaning of section 3(1)
   of the Communications Act of 1934, as amended.

   (c) Removal of application from streamlined processing. (1) At any time
   after an application is filed, the Commission, acting through the Chief of
   the  Wireline  Competition  Bureau,  may  notify an applicant that its
   application is being removed from streamlined processing, or will not be
   subject to streamlined processing. Examples of appropriate circumstances for
   such action are:

   (i) An application is associated with a non-routine request for waiver of
   the Commission's rules;

   (ii) An application would, on its face, violate a Commission rule or the
   Communications Act;

   (iii) An applicant fails to respond promptly to Commission inquiries;

   (iv) Timely-filed comments on the application raise public interest concerns
   that require further Commission review; or

   (v) The Commission, acting through the Chief of the Wireline Competition
   Bureau, otherwise determines that the application requires further analysis
   to determine whether a proposed transfer of control would serve the public
   interest.

   (2) Notification will be by public notice that states the reason for removal
   or non-streamlined treatment, and indicates the expected timeframe for
   Commission action on the application. Except in extraordinary circumstances,
   final action on the application should be expected no later than 180 days
   from public notice that the application has been accepted for filing.

   (d) Pro forma transactions. (1) Any party that would be a domestic common
   carrier under section 214 of the Communications Act of 1934, as amended, is
   authorized to undertake any corporate restructuring, reorganization or
   liquidation of internal business operations that does not result in a change
   in ultimate ownership or control of the carrier's lines or authorization to
   operate, including transfers in bankruptcy proceedings to a trustee or to
   the carrier itself as a debtor-in-possession.1 Under this rule, a transfer
   of control of a domestic line or authorization to operate is considered pro
   forma when, together with all previous internal corporate restructurings,
   the  transaction does not result in a change in the carrier's ultimate
   ownership  or control, or otherwise falls into one of the illustrative
   categories found in § 63.24 of this part governing transfers of control of
   international carriers under section 214 of the Communications Act of 1934,
   as amended.

   1“Control” includes actual working control in whatever manner exercised and
   is not limited to majority stock ownership. “Control” also includes direct
   or indirect ownership or control, such as through intervening subsidiaries.
   See 47 CFR 63.09.

   (2) Any party that would be a domestic common carrier under section 214 of
   the Communications Act of 1934, as amended, must notify the Commission no
   later than 30 days after control of the carrier is transferred to a trustee
   under Chapter 7 of the Bankruptcy Code, a debtor-in-possession under Chapter
   11 of the Bankruptcy Code, or any other party pursuant to any applicable
   chapter of the Bankruptcy Code when that transfer does not result in a
   change  in  ultimate  ownership  or  control of the carrier's lines or
   authorization to operate. The notification can be in the form of a letter
   (in duplicate to the Secretary). The letter or other form of notification
   must also contain the information listed in paragraphs (a)(1) through (a)(4)
   in § 63.04. A single letter may be filed for more than one such transfer of
   control. If a carrier files a discontinuance request within 30 days of the
   transfer in bankruptcy, the Commission will treat the discontinuance request
   as sufficient to fulfill the pro forma post-transaction notice requirement.

   (3) Notwithstanding any other provision in this part, any party that would
   be a domestic common carrier under section 214 of the Communications Act of
   1934, as amended, including a carrier that begins providing service through
   a differently named subsidiary after an internal corporate restructuring,
   remains subject to all applicable conditions of service after an internal
   restructuring, such as rules governing slamming and tariffing.

   [ 67 FR 18831 , Apr. 17, 2002;  67 FR 21803 , May 1, 2002]

   return arrow Back to Top