**DA 05-1032**

**Released: April 7, 2005**

**DOMESTIC SECTION 214 APPLICATION FILED FOR ACQUISITION OF ASSETS OF
GLOBAL CROSSING TELECOMMUNICATIONS, INC., GLOBAL CROSSING LOCAL
SERVICES, INC., GLOBAL CROSSING TELEMANAGEMENT, INC., AND GLOBAL
CROSSING TELEMANAGEMENT, LLC, BY MATRIX TELECOM, INC.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 05-159**

**Comments Due: April 21, 2005**

**Reply Comments Due: April 28, 2005**

On March 21 2005, Matrix Telecom, Inc., ("Matrix"), Global Crossing
Telecommunications, Inc. ("GC Telecommunications"), Global Crossing
Local Services, Inc. ("GC Local"), Global Crossing Telemanagement, Inc.
("GC Telemanagement") and Global Crossing Telemanagement, LLC ("GC LLC")
(collectively, "GC") (together with Matrix, "Applicants"), filed an
application pursuant to sections 63.03 and 63.24 of the Commission's
rules[^1] requesting authority to transfer certain assets of GC to
Matrix.[^2]

Applicants assert that this transaction is entitled to presumptive
streamlined treatment pursuant to section 63.03(b)(2)(i) of the
Commission's rules because immediately following the transactions, (1)
Matrix will hold less than a 10% share of the interstate, interexchange
market; (2) Matrix will provide local exchange service in areas served
by dominant local exchange carriers, none of which is a party to the
proposed transaction; and (3) none of the Applicants or their affiliates
is dominant with respect to any service.[^3]

GC Telecommunications is a corporation organized under Michigan law. GC
Local is a Delaware corporation. GC Telemanagement is a Wisconsin
corporation. GC LLC is a Virginia limited liability corporation. GC
Telecommunications has global authority to provide resold and
facilities-based international telecommunications services. GC Local, GC
Telemanagement and GC LLC provide local exchange services throughout the
United States and do not hold international 214 authority.

Matrix is a corporation organized under Texas law, and is a non-dominant
carrier authorized to provide international and domestic
telecommunications services. Matrix is wholly-owned by EnergyTRACs
Acquisition Corp., a U.S. corporation. Platinum Equity, LLC, also a U.S.
corporation, owns 100% of EnergyTRACs Acquisition Corp. Tom T. Gores, an
American citizen, owns 100% of Platinum Equity, LLC.

On March 19, 2005, GC Telecommunications and Matrix entered into an
Asset Purchase Agreement under which Matrix will purchase from GC
certain assets and assume certain liabilities relating to GC's Small
Business Group, which provides voice and data products to small and
medium-sized businesses throughout the United States. The assets
included in the transaction consist primarily of the Small Business
Group customer base. Upon consummation of the proposed transaction,
Matrix will serve the Small Business Group customer base, and GC will
continue to provide service to those customers not previously served by
its Small Business Group. Accordingly, post-consummation, GC will retain
its authorizations to provide domestic interstate and international
telecommunications services. The Applicants do not anticipate any change
to the rates, terms or conditions of service to Small Business Group
customers as a result of the transaction.[^4]

The Applicants state that the proposed transaction will serve the public
interest by promoting competition in the domestic and international
telecommunications market. Post-consummation, Matrix will strengthen its
competitive position by combining GC's Small Business Group customer
base with Matrix's current services, products and expertise. The
proposed transaction also will free GC's resources to focus on its core
global information services customers and invigorate its service to
these customers. Moreover, Applicants state that approval of the
transfer will permit Matrix to realize significant economic and
marketing efficiencies, which will allow it to compete more effectively
in the telecommunications market. Accordingly, the Applicants state the
proposed acquisition will benefit consumers through improved services
and lower rates, thereby promoting competition in the telecommunications
market.

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

The transfer of control 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 on or before April 21,
2005** and **reply comments on or before April 28, 2005**.[^5] Unless
otherwise notified by the Commission, Applicants are permitted to
transfer the stock and related control on the 31^st^ day after the date
of this notice.[^6] 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 e-mail to ecfs@fcc.gov, and should include the following
words in the subject line "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
appears 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, Natek, 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, S.W., 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, Best Copy and Printing,
    Inc., 445 12th Street, S.W., Room CY-B402, Washington, D.C. 20554,
    [www.bcpiweb.com]{.underline}; phone: (202) 488-5300 fax: (202)
    488-5563;

(2) Tracey Wilson-Parker, Competition Policy Division, Wireline
    Competition Bureau, 445 12th Street, S.W., Room 5-C212, Washington,
    D.C. 20554; e-mail: <tracey.wilson-parker@fcc.gov>;

(3) Adam Kirschenbaum, Competition Policy Division, Wireline Competition
    Bureau, 445 12th Street, S.W., Room 5-C211, Washington, D.C. 20554;
    e-mail: <adam.kirschenbaum@fcc.gov>;

(4) Terri B. Natoli, Competition Policy Division, Wireline Competition
    Bureau, 445 12th Street, S.W., Room 5-C234, Washington, D.C. 20554;
    e-mail: <terri.natoli@fcc.gov>;

(5) Susan O'Connell, Policy Division, International Bureau, 445 12th
    Street, S.W., Room 7-B544, Washington, D.C. 20554; email:
    [susan.o'connell@fcc.gov](mailto:cynthia.bryant@fcc.gov); and

(6) James Bird, Office of General Counsel, 445 12th Street, S.W., Room
    8-C824, Washington, D.C. 20554; e-mail: <james.bird@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, S.W., Room CY-A257, Washington,
D.C. 20554. They may also be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street,
S.W., Room CY-B402, Washington, D.C. 20554, telephone: (202) 488-5300,
fax: (202) 488-5563, or via e-mail
[www.bcpiweb.com](http://www.bcpiweb.com/).

For further information, please contact Tracey Wilson-Parker, at (202)
418-1394, or Adam Kirschenbaum at (202) 418-7280.

\- **FCC** -

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[^1]: 47 C.F.R. §§ 63.03, 63.24; *see* 47 U.S.C. § 214.

[^2]: Applicants have also filed for transfer of control related to
    international section 214 authority. Any action on this domestic
    section 214 application is without prejudice to Commission action on
    other related pending applications.

[^3]: 47 C.F.R. § 63.03(b)(2)(i).

[^4]: The parties will notify each affected customer as least 30 days in
    advance of consummation of the pending transaction to ensure a
    smooth transition from GC to Matrix.

[^5]: *See* 47 C.F.R. § 63.03(a).

[^6]: Such authorization is conditioned upon receipt of any other
    necessary approvals from the Commission in connection with the
    proposed transaction.