**DA 02-3311**

**Released: November 29, 2002**

**DOMESTIC SECTION 214 APPLICATION FILED FOR CONSENT TO TRANSFER CONTROL
OF BALTIC TELECOM COOPERATIVE AND EAST PLAINS TELECOM, INC. TO SPLITROCK
TELECOM COOPERATIVE, INC.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 02-342**

On October 17, 2002, Baltic Telecom Cooperative ("Baltic"), its
wholly-owned subsidiary East Plains Telecom, Inc. ("East Plains") and
Splitrock Telecom Cooperative, Inc. ("Splitrock"), filed an application
pursuant to section 214 of the Communications Act of 1934, as amended,
47 U.S.C. § 214, for Commission consent to transfer control of Baltic
and East Plains to Splitrock.[^1]

Applicants assert that this transaction is entitled to presumptive
streamlined treatment pursuant to section 63.03(b)(2)(iii) of the
Commission's rules because the applicants are incumbent independent
local exchange carriers 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.[^2]

Baltic is a South Dakota cooperative corporation that is owned by its
approximately 1,570 member-owners. Baltic is a rural carrier that
provides wireline local exchange service and exchange access service to
residential and business customers in two telephone exchanges (Baltic
and Crooks) in Minnehaha County, South Dakota (2000 population:
148,281). Baltic serves approximately 1,889 access lines in these two
exchanges.

Baltic owns 100 percent of the issued and outstanding stock of East
Plains, which is a rural carrier providing wireline local exchange
service and exchange access service to residential and business
customers in the Alcester exchange in Union County, South Dakota (2000
county population: 12,584) and the Hudson exchange in Lincoln County,
South Dakota (2000 county population: 24,131). East Plains serves
approximately 1,132 access lines in the two exchanges. Its Hudson
exchange also serves approximately 37 access lines in the community of
East Hudson in Sioux County, Iowa (2000 county population: 31,589).

Splitrock is a South Dakota cooperative corporation that is owned by its
approximately 4,093 member-owners. Splitrock is a rural carrier that
provides wireline local exchange service and exchange access service to
residential and business customers in two telephone exchanges (Brandon
and Garretson) in Minnehaha County, South Dakota (2000 county
population: 148,281). Splitrock serves approximately 5,190 access lines
in the two exchanges. Its Garretson exchange also serves approximately
78 access lines across the state line in Rock County, Minnesota (2000
county population: 9,781). Splitrock's subsidiary, Splitrock Properties,
Inc., provides wireline local exchange and exchange access services on a
total of 1,538 access lines in three additional South Dakota exchanges:
Howard (Miner County), Oldham (Kingsbury County), and Ramona (Lake
County).

The proposed transaction entails a two-step merger of two small
telephone cooperatives in rural South Dakota. The first step will be the
distribution of all of the assets and liabilities of Baltic's
wholly-owned, for-profit subsidiary, East Plains (approximately 986
telephone subscribers) to Baltic, and the termination of the corporate
existence of East Plains. All telephone subscribers of East Plains will
become member-owners of the Baltic cooperative (approximately 1,570
members-owners at the present time, and approximately 2,556
members-owners after the dissolution of East Plains). The second step
will be the merger of the Baltic cooperative into the larger Splitrock
cooperative. The applicants state that shortly after the closing of the
proposed transaction, Splitrock will change its name to Alliance
Communications Cooperative, Inc.

The Applicants state that approval of this application is in the public
interest because it will produce a larger and more financially sound
cooperative. Applicants assert that the merged entity will be able to
realize increased economies of scale and to allocate its work force
efficiently, and that its increased size and credit capacity will better
assure its access to affordable financing.

Applicants state that the transaction will have no adverse impacts upon
competition because Splitrock and Baltic are very small telephone
cooperatives that provide local exchange service and exchange access
service to a total of 9,749 access lines in South Dakota (approximately
2 percent of South Dakota lines). Splitrock and Baltic state that they
serve portions of the rural northern part of Minnehaha County, and that
the southern part of the county contains the city of Sioux Falls. The
Applicants state that they are currently the only providers of wireline
local exchange and exchange access service in their service areas, but
that they are increasingly subject to competition from Sioux Falls-based
wireless carriers such as Verizon Wireless, Sprint PCS, Rural Cellular
Corporation, CellularOne, Western Wireless Corporation and Nextel
Communications.

**[GENERAL INFORMATION]{.underline}**

The transfer of control application identified herein has been found,
upon initial review, to be acceptable for filing as a 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. Interested parties may file **comments within 14 days** and
**reply comments within 21 days** of this notice.[^3] Unless otherwise
notified by the Commission, an applicant is permitted to transfer
control of the domestic lines or authorization to operate on the 31^st^
day after the date of this notice. Comments may be filed using the
Commission\'s Electronic Comment Filing System (ECFS) or by filing paper
copies. *See Electronic Filing of Documents in Rulemaking Proceedings*,
63 Fed. Reg. 24121 (1998).

Comments filed through the ECFS can be sent as an electronic file via
the Internet to \<http://www.fcc.gov/e-file/ecfs.html\>. Generally, only
one copy of an electronic submission must be filed. If multiple docket
or rulemaking numbers appear in the caption of this proceeding, however,
commenters must transmit one electronic copy of the comments to each
docket or rulemaking number referenced in the caption. In completing the
transmittal screen, commenters should include their full name, U.S.
Postal Service mailing address, and the applicable docket or rulemaking
number. Parties may also submit an electronic comment by Internet
e-mail. To get filing instructions for e-mail comments, commenters
should send an e-mail to ecfs@fcc.gov, and should include the following
words in the body of the message, \"get form \<your e-mail address\>.\"
A sample form and directions will be sent in reply.

Parties who choose to file by paper must file an original and four
copies of each filing. If more than one docket or rulemaking number
appear in the caption of this proceeding, commenters must submit two
additional copies for each additional docket or rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although we continue to experience delays in receiving U.S. Postal
Service mail). The Commission\'s contractor, Vistronix, Inc., will
receive hand-delivered or messenger-delivered paper filings for the
Commission\'s Secretary at 236 Massachusetts Avenue, N.E., Suite 110,
Washington, D.C. 20002. The filing hours at this location are 8:00 a.m.
to 7:00 p.m. All hand deliveries must be held together with rubber bands
or fasteners. Any envelopes must be disposed of before entering the
building. Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to

9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service
first-class mail, Express Mail, and Priority Mail should be addressed to
445 12th Street, SW, Washington, D.C. 20554. All filings must be
addressed to the Commission\'s Secretary, Office of the Secretary,
Federal Communications Commission.

**In addition, one copy of each pleading must be sent to each of the
following:**

(1) the Commission's duplicating contractor, Qualex International, 445
    12^th^ Street, S.W., Room CY-B402, Washington, D.C. 20554; e-mail:
    <qualexint@aol.com;> facsimile: (202) 863-2898; phone: (202)
    863-2893.

(2) Tracey Wilson, Competition Policy Division, Wireline Competition
    Bureau, 445 12^th^ Street, S.W., Room 5-C437, Washington, D.C.
    20554; e-mail: [twilson@fcc.gov](mailto:jmyles@fcc.gov), and

(3) William Dever, Competition Policy Division, Wireline Competition
    Bureau, 445 12^th^ Street, S.W., Room , 5-C266, Washington, D.C.
    20554; e-mail: [wdever@fcc.gov](mailto:dcjohnso@fcc.gov); and

(4) Nandan Joshi, Office of General Counsel, 445 12^th^ Street, S.W.,
    Room 8-A820, Washington, D.C. 20554; e-mail: <njoshi@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, SW, Room CY-A257, Washington, DC,
20554. They may also be purchased from the Commission\'s duplicating
contractor, Qualex International, Portals II, 445 12th Street, SW, Room
CY-B402, Washington, DC, 20554, telephone 202-863-2893, facsimile
202-863-2898, or via e-mail <qualexint@aol.com>.

For further information, please contact Tracey Wilson, at (202) 418-1394
or William Dever, Competition Policy, Wireline Competition Bureau at
(202) 418-1578.

\- **FCC** -

[^1]: Baltic and Splitrock each hold 33.33 percent interests in ABS LMDS
    Venture, the licensee of nine Local Multipoint Distribution Service
    (LMDS) facilities. Baltic also holds a 50 percent interest in H&B
    LMDS Venture, the licensee of one LMDS facility. The applicants are
    filing separate applications with respect to these wireless
    licenses. Any action on this domestic 214 application is without
    prejudice to Commission action on other related pending
    applications.

[^2]: *See* 47 C.F.R. § 63.03(b)(2)(iii).

[^3]: *See* 47 C.F.R. § 63.03(a).