**DA 04-1248**

**Released: April 30, 2004**

**DOMESTIC SECTION 214 APPLICATION FILED FOR**

**TRANSFER OF CONTROL OF IOWA TELECOMMUNICATIONS**

**SERVICES, INC. AND IOWA TELECOM COMMUNICATIONS, INC.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 04-157**

**Comments Due: May 14, 2004**

**Reply Comments Due: May 21, 2004**

On April 16, 2004, Iowa Network Services, Inc. ("INS") filed an
application, pursuant to sections 63.03 and 63.04 of the Commission's
rules,[^1] seeking approval to transfer control of domestic section 214
authorizations held by two subsidiaries, Iowa Telecommunications
Services, Inc. ("Iowa Telecom") and Iowa Telecom Communications, Inc.
("ITC"), in connection with a public offering of Income Deposit
Securities ("IDSs") in INS.[^2]

Applicants assert that this transaction is entitled to presumptive
streamlined treatment pursuant to section 63.03(b)(2)(iii) of the
Commission's rules[^3] because: (1) the proposed transfer would result
in Iowa Telecom and its subsidiary, ITC, having a market share in the
interstate, interexchange market of less than ten percent; (2) ITC will
provide competitive telephone exchange services or exchange access
services exclusively in geographic areas served by a dominant local
exchange carrier that is not a party to the transaction; (3) Iowa
Telecom and ITC have fewer than two percent of the subscriber lines
installed in the aggregate nationwide; and (4) the transaction would
result in no new overlapping or adjacent service areas.[^4]

Iowa Telecom, an Iowa corporation, is an independent incumbent local
exchange carrier ("LEC") headquartered in Newton, Iowa. Iowa Telecom
currently provides local exchange and exchange access service, as well
as dial-up and high-speed Internet services, to residential and business
customers in 294 rural exchanges widely distributed throughout Iowa.
ITC, also an Iowa corporation, is a wholly owned subsidiary of Iowa
Telecom. ITC is a competitive LEC that provides telecommunications
services similar to those offered by Iowa Telecom to customers in 13
exchanges falling outside Iowa Telecom's service areas. INS, also an
Iowa corporation, currently holds 57 percent of Iowa Telecom's common
stock, and thus exercises *de jure* control over that company, and, by
attribution, over ITC.

INS proposes to conduct an initial public offering in which a
substantial portion of the Iowa Telecom common stock held by it and
three other investors, together with additional shares, would be offered
to the public in the form of IDSs, each of which will represent one
share of Iowa Telecom common stock and one senior subordinated note.
Iowa Telecom anticipates that following the public offering, ownership
will be widely dispersed among the public, with INS owning no more than
fifteen percent of its common stock, and no other party owning ten
percent or more.

The Applicants state that the proposed transaction is in public
interest, because it will strengthen the financial positions of both
Iowa Telecom and ITC, according each company a more flexible capital
structure and better access to capital markets. Applicants assert that
Iowa Telecom's rural customers will continue to benefit from the
presence of a stable local carrier, while customers in areas served by
ITC will continue to benefit from the choice and competition provided by
a financially secure competitive LEC.

**[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 May 14,
2004** and **reply comments on or before May 21, 2004**.[^5] Unless
otherwise notified by the Commission, Applicants are permitted to
transfer 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, 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: <tracey.wilson-parker@fcc.gov>;

(3) Russell Hanser, Competition Policy Division, Wireline Competition
    Bureau, 445 12^th^ Street, S.W., Room , Washington, D.C. 20554;
    e-mail: <russell.hanser@fcc.gov>;

(4) Julie Veach, Competition Policy Division, Wireline Competition
    Bureau, 445 12^th^ Street, S.W., Room 5-C124, Washington, D.C.
    20554; e-mail: <julie.veach@fcc.gov>;

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

(6) Christopher Killion, Office of General Counsel, 445 12^th^ Street,
    S.W., Room 8-C740, Washington, D.C. 20554; e-mail:
    <chris.killion@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 Russell Hanser at (202) 418-0832.

\- **FCC** -

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[^1]: 47 C.F.R §§ 63.03, 63.04; *see also* 47 U.S.C. § 214.

[^2]: Applicants are also filing applications for transfer of control
    associated with authorization for international services. Moreover,
    on November 26, 2003, Iowa Telecom and Heart of Iowa Communications
    Cooperative ("Heart of Iowa") filed a separate application to
    transfer control of certain exchanges from Iowa Telecom to Heart of
    Iowa. That application is currently pending. *See* *Domestic Section
    214 Application Filed for Transfer of Control of the Conrad, Eldora,
    and Steamboat Rock (Iowa) Exchanges*, Public Notice, WC Dkt. No.
    03-249 (rel. Dec. 19, 2003). 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)(iii).

[^4]: *See* Letter from Gregory J. Vogt and Chin Kyung Yoo, Counsel for
    Iowa Telecommunications Services, Inc., to Marlene H. Dortch,
    Secretary, FCC, WC Dkt. No. 04-157 (filed Apr. 27, 2004).

[^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.