**DA 02-1353**

**Released: June 7, 2002**

**WIRELINE COMPETITION BUREAU ANNOUNCES EFFECTIVE DATE FOR NEW DOMESTIC
SECTION 214 TRANSFER OF CONTROL PROCEDURES**

***New Procedures Include Certain Types of Asset Acquisitions***

On March 14, 2002, the Commission revised its procedures relating to
applications to transfer domestic section 214 authorizations. Because
the new procedures entail new information collection requirements, they
could not become effective until the Commission received approval from
the U.S. Office of Management and Budget (OMB).[^1] OMB approved the
revised information collection on June 4, 2002,[^2] and the new
procedures outlined in the *Streamlining Order* and sections 63.01,
63.03, and 63.04 of the Commission's rules will become effective June
14, 2002. As of June 14^th^, the Commission will only accept domestic
section 214 applications for transfer of control that comply with the
new rules.

In order to permit an orderly transition for domestic carriers filing
applications for section 214 authorization, the Bureau issues the
following reminders of actions taken in the *Streamlining Order:*

-   Domestic and international section 214 applications related to the
    same proposed transaction may be filed jointly.[^3]

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-   All domestic section 214 applications (whether filed jointly or on a
    stand-alone basis) must include certain specified information in
    their applications to enable the Commission to make its streamlining
    determination and to otherwise enable processing of an
    application.[^4]

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-   Asset acquisitions that will not result in a loss of service for
    customers must now be filed as applications to transfer control
    instead of applications to discontinue service. Asset acquisitions
    where neither the carrier selling assets, nor the carrier purchasing
    assets, will provide service to existing carriers should be filed as
    applications to discontinue service pursuant to section 63.71 of the
    Commission's rules.[^5]

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-   Transfer of control applications that are accorded streamlined
    treatment are automatically granted after 30 days. Carriers may
    close their proposed transactions on the 31^st^ day following public
    notice of acceptance of an application if that public notice
    specifies that the application is subject to streamlined treatment
    and if the Commission does not remove the application from
    streamlined processing within 30 days from the date the public
    notice is released.[^6]

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-   Comments on streamlined applications must be filed electronically
    within 14 days of public notice that an application has been
    accepted for streamlined processing, and reply comments must be
    filed within 21 days of the public notice date.

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-   The *Streamlining Order* provides that applications presumptively
    will be accorded streamlined treatment where: (1) both applicants
    are non-facilities-based carriers; (2) the transferee is not a
    telecommunications provider; or (3) the proposed transaction
    involves only the transfer of local exchange assets of an incumbent
    local exchange carrier (LEC) by means other than an acquisition of
    corporate control.

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-   The *Streamlining Order* provides that three additional categories
    of transactions presumptively will be streamlined, but only where a
    transaction would result in a transferee: (a) having a market share
    in the interstate, interexchange services market of less than 10
    percent; and (2) providing competitive telephone exchange services
    or local exchange access services (if at all) in geographic areas
    served by a dominant LEC that is not a party to the transaction.

Applicants meeting these criteria presumptively will be accorded
streamlined treatment where: (1) neither of the applicants is dominant
with respect to any service; or (2) 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
(3) the applicants are incumbent independent LECs that have, in
combination, fewer than two percent of the nation's subscriber lines
installed in the aggregate nationwide and no overlapping or adjacent
service areas.

-   Any application may be removed from streamlining (or subject to
    non-streamlined treatment originally) if: (1) the application is
    associated with a non-routine waiver request; (2) the application
    would, on its face, violate a Commission rule or the Communications
    Act; (3) an applicant fails to respond promptly to Commission
    inquiries; (4) timely-filed comments raise public interest concerns
    that require further Commission review; or (5) the Commission,
    acting through 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.

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-   No application or notice is required to be filed for any domestic
    carrier *pro forma* transfer of control that meets the requirements
    of section 63.24 of the Commission's rules governing international
    carriers.[^7]

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-   Carriers in bankruptcy proceedings are required to file a
    notification to the Commission within 30 days of transfer of control
    to a trustee or assumption of "debtor-in-possession" status.[^8]

Carriers are also reminded that, if the transfer of control will change
the presubscribed telecommunications service provider of the
transferring carrier's customers, the carrier acquiring the customers
must comply with the authorization and verification requirements set
forth in the Commission's slamming rules.[^9] In particular, an
acquiring carrier should be aware of the Commission's streamlined
procedures for complying with the slamming rules to effect the bulk
transfer of subscribers.[^10]

For further information, please contact Tracey Wilson, at (202) 418-1394
or Bill Dever, Competition Policy Division, Common Carrier Bureau at
(202) 418-1578.

[^1]: *See Implementation of Further Streamlining Measures for Domestic
    Section 214 Authorizations,* 17 FCC Rcd 5517 (2002) (*"Streamlining
    Order"*); 67 FR 18827 (2002).

[^2]: OMB No. 3060-0989, expires 11/30/02.

[^3]: *See Streamlining Order,* 17 FCC Rcd at 5556-57 (section 63.04).

[^4]: *See id.*

[^5]: 47 C.F.R. § 63.71.

[^6]: *See Streamlining Order,* 17 FCC Rcd at 5553-56 (section 63.03).

[^7]: 47 C.F.R. § 63.24.

[^8]: *See Streamlining Order,* 17 FCC Rcd at 5555-56 (section
    63.03(d)).

[^9]: "Slamming" is the submission or execution of an unauthorized
    change in a subscriber's selection of a provider of
    telecommunications service. *See* 47 C.F.R. §§ 64.1100-64.1190.

[^10]: *See* 47 C.F.R. § 64.1120(e).